Synopsis:
Insolation Green Energy Private Limited received an LOI to set up 226.45 MW solar plants under PM-KUSUM, with an investment of Rs. 750 crores with 25-year O&M across JVVNL and AVVNL sites.
During Monday’s trading session, shares of India’s leading solar manufacturer of high-efficiency solar PV modules surged by around 2 percent on BSE, after securing a 226 MW solar project worth Rs. 750 crores from Jaipur Vidyut Vitran Nigam Limited (JVVNL) and Ajmer Vidyut Vitran Nigam Limited (AVVNL).
At 10:41 a.m., the shares of Insolation Energy Limited were trading in the green at Rs. 197 on BSE, up by around 1 percent, as against its previous closing price of Rs. 195.2, with a market cap of Rs. 4,341 crores. The stock hit its 52-week high at Rs. 475 on 8th November 2024, and is trading at a discount of around 59 percent from its current price levels.
What’s the News
According to the latest exchange filings, Insolation Green Energy Private Limited, a wholly-owned subsidiary of Insolation Energy Limited, has been awarded a Letter of Intent (LOI) for the design, survey, supply, installation, testing, commissioning, operation & maintenance (O&M) of 226.45 MW SPV solar power plants.
The project includes comprehensive O&M services for 25 years from the date of commissioning for grid-connected solar power plants through the RESCO Mode. It also covers the associated 11 KV line required to connect the plants with various 33/11 KV sub-stations and a remote monitoring system (RMS) for these solar plants.
The project is being developed under the PM-KUSUM Component A Scheme, covering 20 sites for Jaipur Vidyut Vitran Nigam Limited (JVVNL) and 115 sites for Ajmer Vidyut Vitran Nigam Limited (AVVNL). The total investment for setting up the 226.45 MW solar power capacity is estimated at around Rs. 750 crores, with execution expected to be completed by FY27.
The combined capacity for these SPV solar plants will be 226.45 MW, with the final levelized tariffs set at Rs. 3.04 per unit for 16 sites, Rs. 2.82 per unit for 5 sites, Rs. 2.75 per unit for 53 sites, and Rs. 2.60 per unit for 61 sites.
Management Guidance
The company’s management is optimistic about its growth trajectory, expecting net profit margins to improve significantly over the next few years — rising to 11.1 percent by FY26, 14 percent by FY27, and reaching 16 percent by FY28 (post-cell integration).
On the revenue front, the company expects to cross Rs. 3,000 crore in FY26, Rs. 5,500 crore in FY27, and Rs. 8,500 crore in FY28. Gross profit is projected to grow from Rs. 792 crore in FY26 to Rs. 1,320 crore in FY27 and Rs. 2,494 crore in FY28.
Similarly, EBITDA is expected to rise from Rs. 512 crore in FY26 to Rs. 1,265 crore in FY27 and Rs. 2,064 crore in FY28. Net profits are forecasted at Rs. 366 crore in FY26, Rs. 771 crore in FY27, and Rs. 1,377 crore in FY28.
Looking ahead to FY27-28, the company plans to scale up to 8 GW of module capacity and integrate 3 GW of cell production. Insolation Energy also expects to generate Rs. 7,000 crore in revenue from modules, Rs. 1,100 crore from EPC contracts, with the remaining coming from other business segments. The company has planned a capex of over Rs. 1,300 crore, which will be funded through a mix of Rs. 300 crore from internal accruals and Rs. 1,000 crore in debt. The new 3 GW cell manufacturing line is set to go live in a single phase, with commissioning expected by January 2027.
Financials & more
Insolation Energy reported a significant growth in its revenue from operations, showing a year-on-year rise of around 57 percent from Rs. 459 crores in H2 FY24 to Rs. 722 crores in H2 FY25. Similarly, its net profit increased during the same period from Rs. 40 crores to Rs. 65 crores, representing a growth of around 62 percent YoY.
The company is currently sitting on a healthy order book of Rs. 2,500 crore. Of this, about 50 percent comes from the EPC/developers segment, 24 percent from the solar rooftop business, while channel partners and government schemes each contribute 12 percent.
Insolation Energy Limited is mainly engaged in the business of manufacturing a wide range of solar products, including solar modules, solar PCUs, and solar batteries, all marketed under the brand name of INA.
Previously, Insolation Energy underwent a 1:10 stock split, with a record date of 24th January 2025, which was the ex-split date. As a result, shareholders received 10 shares for every 1 share held, and the face value of each share was reduced from Rs. 10 to Re. 1 each.
Written by Shivani Singh
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