Synopsis: Solarworld Energy Solutions Ltd dropped 8% after reporting a 3% YoY revenue decline from ₹141.9 Crores in Q2FY25 to ₹137.8 Crores in Q2FY26, despite a 102% QoQ rise from ₹68.2 Crores in Q1FY26.
The shares of the Small-cap company, which specializes in engineering, procurement, and construction (EPC) services for solar power projects, offering end-to-end solutions for public sector undertakings and commercial clients, have declined by up to 8 percent in today’s trade, and in this article, let’s explore the reasons behind the fall.
With a market capitalization of 2,496.61 Crores on Wednesday, the shares of Solarworld Energy Solutions Ltd declined upto 8 percent, reaching a low of Rs. 277.35 compared to its previous close of Rs. 302.05.
What Happened
Solarworld Energy Solutions Ltd, engaged in engineering, procurement, and construction (EPC) services for solar power projects, has declined by upto 8 percent in the day’s trade following their September quarterly results.
Here are the company’s Quarterly results as follows:
Its Revenue from operations declined by 3 percent YoY from Rs. 141.9 Crores in Q2FY25 to Rs. 137.8 Crores in Q2FY26, and it rose by 102 percent QoQ from Rs. 68.2 Crores in Q1FY26 to Rs. 137.8 Crores in Q2FY26.
Its Net Profit YoY declined by 59 percent from Rs. 22.2 Crores in Q2FY25 to Rs. 9.2 Crores in Q2FY26, and in QoQ it declined by 29 percent from Rs. 12.9 Crores in Q1FY26 to Rs. 9.2 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 1.24, compared to Rs. 1.74 in the previous quarter.
The company demonstrates strong financial performance, with a Return on Capital Employed (ROCE) of 40.4% and a Return on Equity (ROE) of 40.2%, indicating effective use of both equity and capital. Over the past three years, the company has maintained an impressive average ROE of 56.6%, showcasing consistent profitability and strong shareholder returns.
With a low debt-to-equity ratio of 0.37, the company has a conservative approach to leveraging debt, suggesting financial stability. Additionally, the low PEG ratio of 0.13 indicates that the stock may be undervalued relative to its growth potential, signaling an attractive investment opportunity.
Company Overview & Others
Solarworld Energy Solutions Ltd. is an Indian company founded in 2013 that provides end-to-end solar energy solutions, specializing in engineering, procurement, and construction (EPC) services for solar power projects.
They serve public sector undertakings (PSUs) and commercial and industrial (C&I) clients and operate under two models: the CAPEX model, where customers own the project, and the RESCO model, where the company owns and operates the project, and customers purchase power.
The company has shown significant growth in its order book, reflecting strong future prospects. In FY2023, the order book was Rs. 535.01 crores, followed by Rs. 813.04 crores in FY2024 and Rs. 1,700.55 crores in FY2025, followingly an impressive Rs. 2,527.81 crores as of July 31, 2025. This growth highlights the company’s strong customer management and execution capabilities.
Written by Sridhar J
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