This small-cap solar stock, engaged in manufacturing high-efficiency solar photovoltaic modules and providing comprehensive turnkey solar solutions, including solar EPC, water pump installations, and on/off-grid solar power plants, is in focus after the management expected 415.15 percent revenue growth guidance for FY27.
With a market capitalization of Rs. 1,600.98 crore, the shares of Solex Energy Limited were currently trading at Rs. 1,482.05 per equity share, down nearly 1.83 percent from its previous day’s close price of Rs. 1,509.70. The stock has delivered impressive returns of over 6,091.88 percent in the last five years.
Management Guidance
For FY26, Solex Energy Limited’s management has guided revenue of Rs. 2,200–2,400 crore. This is about 3.6 times higher than FY25, showing growth of 264 percent compared to FY25 revenue of Rs. 660 crore.
For FY27, the revenue guidance target is even higher at Rs. 3,000–3,400 crore, which is 5.1 times higher than FY25, showing growth of 415.15 percent, supported by 4 GW module capacity and EPC business.
Along with strong revenue growth, the company expects to maintain healthy profitability. EBITDA margins are guided at 9–11 percent and PAT margins at 6–7 percent. Management also sees room for improvement in margins as scale increases and operational efficiency improves in the coming years.
Future Plans for 2030
Solex Energy Limited has set a clear plan for 2030. The company wants to build 15 GW of solar module capacity and 5 GW of solar cell capacity, which includes 2 GW of N-type TOPCon technology and 3 GW with other technologies. To reach this goal, Solex plans to invest around $1 billion (Rs. 8,500 crore) in its growth.
Capex and Capacity Expansion Plans
Solex Energy Limited is expanding its production capacity. The company is adding 2.5 GW of new module lines (lines 3 & 4), which are expected to start operations by October 2025. Once completed, Solex’s total module capacity will increase to 4 GW. These new lines are designed to handle future technologies like back-contact and HJT.
For this module expansion, Solex is investing Capex about Rs. 190 crore. In addition, Solex has big plans for a 2 GW solar cell line, with an estimated investment of Rs. 1,200 crore. Along with this, the company plans to spend Rs. 200 crore on another module line and Rs. 100 crore for working capital, bringing the total investment to Rs. 1,500 crore. This expansion will strengthen Solex’s position in solar manufacturing.
Product Portfolio
Solex Energy Limited became the first company in India to launch a 625 Wp G12R solar panel. The company is now focusing on producing higher wattage modules between 585–650 Wp while also adopting advanced cell and module technologies to stay ahead in the market.
Earlier, Solex Energy Limited mainly worked as an OEM supplier for leading brands. Now, the company has shifted to selling products under its own brand name. This change helps Solex earn better margins and build stronger brand recognition in the solar industry.
Company Overview
Solex Energy Limited was founded in 1995 and is headquartered in Surat, Gujarat. The company is a leading company in the renewable energy sector, specializing in the manufacturing of solar photovoltaic (PV) cells and modules.
The company also provides turnkey solar solutions, including solar EPC (Engineering, Procurement, and Construction), solar water pump installations, and solar power plants, both on-grid and off-grid.
Recent quarter results
Coming into financial highlights, Solex Energy Limited’s revenue has increased from Rs. 273 crore in H2 FY24 to Rs. 389 crore in H2 FY25, which has grown by 42.49 percent. The net profit has also grown by 275 percent from Rs. 8 crore in H2 FY24 to Rs. 30 crore in H2 FY25. Solex Energy Limited’s revenue and net profit have grown at a CAGR of 102.15 percent and 278.59 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROCE and ROE stand at 29.9 percent and 40.6 percent, respectively. Solex Energy Limited has an earnings per share (EPS) of Rs. 38.91, and its debt-to-equity ratio is 0.92x.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
