Synopsis:
Websol Energy System Ltd, hit 10 percent upper circuit after robust Q1FY26 results with strong sequential and annual growth in revenue and profit. The company is on track to expand solar cell manufacturing capacity to 2,400 MW by 2026.
Solar sector stock surged to its upper circuit limit after delivering a strong June quarter performance, marked by sharp growth in both revenue and profitability on a sequential and annual basis.
Websol Energy System Ltd, with a market capitalisation of Rs. 6,120.55 crore, opened at Rs. 1,369.80 against the previous close of Rs. 1,318.35. The stock hit an intraday high of Rs. 1,450.15, registering a 10.00 percent rise, and remained locked at this level through the session.
What’s the News?
Quarter-on-quarter, revenue from operations rose from Rs. 172.99 crore to Rs. 218.75 crore, marking a growth of 26.42 percent. Profit before tax increased from Rs. 65.89 crore to Rs. 90.96 crore, up 38.05 percent, while net profit climbed from Rs. 48.27 crore to Rs. 67.18 crore, reflecting a 39.08 percent rise.
Year-on-year, revenue from operations grew from Rs. 111.60 crore to Rs. 218.75 crore, an increase of 95.98 percent. Profit before tax rose from Rs. 31.81 crore to Rs. 90.96 crore, up 185.95 percent, while net profit jumped from Rs. 22.88 crore to Rs. 67.18 crore, registering a 193.47 percent growth.
The stock is currently trading at a price-to-earnings ratio of 40.6, which is marginally higher than the industry average of 39.6, indicating that the stock is slightly overvalued on a relative basis. The company has delivered exceptional performance over the trailing twelve months, with compounded profit growth of 1,717 percent and compounded sales growth of 2,125 percent.
Its return ratios remain robust, with a return on capital employed (ROCE) of 59.2 percent and a return on equity (ROE) of 80.2 percent, reflecting strong operational efficiency and high shareholder value creation.
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Operational Highlights
The company is installing and commissioning an additional 600 MW Mono PERC Bifacial Solar Cell Line manufacturing facility at Falta, West Bengal. The commercial production of the new line is expected to commence in October 2025. Websol has outlined a capacity growth plan to reach 1,800 MW of additional solar photovoltaic cell manufacturing capacity by 2026, taking its total projected capacity to 2,400 MW in the same year.
About the Company
Founded in 1994, Websol Energy System Limited (WESL) was established as an export-oriented unit in collaboration with WEBEL (Government of West Bengal) and Helios Technology (Italy). Headquartered in Kolkata, the company operates a state-of-the-art facility in Falta SEZ, West Bengal, spanning seven acres.
Websol’s fully automated Mono PERC solar cell and module lines have annual production capacities of 600 MW and 550 MW, respectively. The company specializes in advanced M10 and G12 Bi-facial Mono PERC solar cells with over 23 percent conversion efficiency and produces Bifacial PERC 525-550Wp modules and Bifacial Mono PERC 640-660Wp modules, designed for high energy output and efficiency across applications.
Written by -Manan Gangwar
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