Synopsis:- A new Power Purchase Agreement for a 5 MW solar project in Madhya Pradesh has put a North India-focused solar distribution and EPC company in focus, with GP Eco Solutions India Limited signing the deal with M.P. Power Management Company Limited under the state’s Surya Mitra Krishi Feeder Yojana, arriving on the back of a year of sharp revenue and profit growth.
A solar equipment distribution and EPC company came into focus after disclosing a fresh Power Purchase Agreement. The agreement, signed with M.P. Power Management Company Limited, covers a 5.00 MW solar power project at Prithvipur/Niwari in Madhya Pradesh, developed under the state’s Surya Mitra Krishi Feeder Yojana scheme. The disclosure was filed under Regulation 30 of the SEBI Listing Regulations, and the company described the agreement as a milestone that strengthens its presence in the solar energy sector.
With a market capitalisation of Rs. 529.78 crore, the shares of GP Eco Solutions India Limited last traded at Rs. 447.80 per share, up 0.97 percent from its previous closing price of Rs. 443.50 apiece. It is trading at a P/E of 12.28.
Order Update
The PPA covers the development and operation of a 5 MW solar power project at Prithvipur/Niwari in Madhya Pradesh, to be executed within 12 months from the date of execution. The filing did not disclose a specific contract value or per-unit tariff for the agreement, so its financial contribution cannot be sized against the company’s revenue base the way a conventional purchase order can. The company confirmed the agreement carries no promoter-group interest and does not qualify as a related-party transaction.
The Surya Mitra Krishi Feeder Yojana is Madhya Pradesh’s solar feeder scheme aimed at providing daytime power to agricultural feeders, and PPAs under this category are typically structured as long-term power-sale arrangements with the state utility rather than one-time equipment sales. For GP Eco Solutions, whose business spans solar inverter and panel distribution alongside EPC and project development, this PPA sits on the project-development side of the business rather than the larger distribution segment that has historically driven its topline.
Growth Context
This PPA lands at a point where GP Eco Solutions’ financial trajectory has accelerated sharply. Consolidated sales rose from Rs. 246 crore in FY25 to Rs. 414 crore in FY26, a year-on-year increase of roughly 68 percent, while net profit jumped from Rs. 10 crore to Rs. 43 crore over the same period a nearly fourfold increase. Operating margin expanded from 7 percent to 14 percent across the two years, and the H2 FY26 half alone delivered Rs. 293 crore in sales against Rs. 121 crore in the September 2025 half, indicating the growth has been concentrated in the back half of the year. Return on equity for the latest year stood at 45.8 percent, and return on capital employed at 38.3 percent, both well above the company’s own three-year averages.
That growth has been accompanied by a noticeable step-up in capital intensity. Fixed assets rose from Rs. 28 crore to Rs. 83 crore over FY26, with a further Rs. 8 crore in capital work in progress, and borrowings increased from Rs. 33 crore to Rs. 109 crore. Cash from operating activity was a healthy Rs. 29 crore against an operating profit of Rs. 59 crore, but cash used in investing activities of Rs. 68 crore left free cash flow negative at Rs. 32 crore for the year, funded through Rs. 46 crore raised via financing activities.
The company’s recent investor commentary has tied this capex build-out to the commissioning of a manufacturing facility at Dasna, alongside a reported 58 MW of fresh orders and FY27 growth guidance, though those details come from the company’s own investor presentation rather than this specific filing and would need separate verification.
Points Worth Watching
Debtor days rose to 172 in FY26 from 95 in FY25, continuing a multi-year upward trend from 52 days in FY23 a pattern that typically accompanies fast revenue growth but is worth tracking given the scale of the increase. Separately, promoters have pledged 29.1 percent of their holding, which is a meaningful share of promoter ownership to have encumbered and is the kind of disclosure that warrants independent confirmation of the current pledge status before publication. The company has also not paid a dividend despite reporting consistent profits.
Business Overview
GP Eco Solutions India Limited, incorporated in 2010, is an ISO 9001:2015-certified distributor of solar inverters and solar panels, serving as an authorised distributor for Sungrow India in North India for inverters, and for Saatvik Green Energy and LONGi Solar Tech for panels, alongside providing engineering, procurement and construction services for commercial and residential solar customers. For FY26, the company reported consolidated sales of Rs. 414 crore and net profit of Rs. 43 crore, with the stock trading at 4.76 times its book value of Rs. 93.1 per share. Promoter holding stood at 61.87 percent as of the March 2026 quarter.
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