Summary
Saatvik Green Energy Limited - Q3 FY26 Earnings Call Summary Thursday, February 05, 2026 10:00 A.M. IST
Event Participants
Executives 3 Abani Jha (CFO), Neelesh Garg (Chairman and MD), Prashant Mathur (CEO)
Analysts 6 Abhi Sehgal (Singularity AMC), Aniket Madhvani (Steptrade Capital), Gaurav (Axis Mutual Fund), Hitesh (SBI General), Maitri Shah (Sapphire Capital), Pinank (IDBI Capital), Prakhar Porwal (Ambit Capital), Raman KV (Sequent Investments)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Q3) | ₹1,257.0 crores | +143% YoY; Driven by normalization of dispatches and strong utility/C&I demand post-monsoon. |
| Revenue (9M) | ₹2,940.8 crores | +137% YoY; Reflects sustained execution momentum and higher volumes. |
| EBITDA (Q3) | ₹164.8 crores | +134% YoY; Margin at 13.11%, a sequential dip due to commodity and FX volatility. |
| EBITDA (9M) | ₹469.3 crores | +135% YoY; Margin remains robust at 15.96% due to operating leverage. |
| PAT (Q3) | ₹98.7 crores | +144% YoY; Supported by volume growth and disciplined cost management. |
| PAT (9M) | ₹300.8 crores | +145% YoY; PAT margin stood at 10.23%. |
| Sales Volume (Q3) | 920 MW | Significant jump as dispatch schedules normalized after Q2 monsoon delays. |
| Production (Q3) | 759 MW | Represents 81% capacity utilization on the existing 3.8 GW Ambala base. |
| Order Book | 5.05 GW | Valued at ~₹6,500 crores; Provides strong revenue visibility for coming quarters. |
| Net Debt | ₹749.0 crores | Includes term debt and working capital; increased recently to secure raw material inventory. |
Geographic & Segment Commentary
- Solar Modules: Remains the core driver representing ~95% of total revenue. The company maintains an 81-82% utilization rate at its Ambala facility, serving utility-scale, C&I, and EPC segments.
- Ancillary & Adjacencies: Currently contributes ~5% of revenue, including Solar Pumps (0.35% of mix), EPC, and the newly commissioned EPE film plant. Management targets increasing the non-module share to 15% over the next two years through pumps, inverters, and storage.
- Exports: Currently less than 1% of sales. Management is selectively pursuing the US market following the trade policy shift (18% tariff) and expects cell integration to improve competitiveness in this geography.
Company-Specific & Strategic Commentary
- Odisha Greenfield Project: Construction is on track for a 4 GW module plant (commissioning March 2026) and 4.8 GW cell plant (commercial production October 2026). Total project capex is ₹1,850 crores, which is fully funded via debt and equity.
- Vertical Integration: Successfully operationalized a 2 GW in-house EPE film (encapsulant) facility in Ambala to improve supply chain security and margins.
- Technology Transition: Moving toward cell manufacturing to capture Domestic Content Requirement (DCR) margins and mitigate obsolescence of older Mono PERC technologies.
- Backward Integration Outlook: Evaluating further integration into ingots and wafers, aligned with the government’s June 2028 draft policy timeline.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Total Module Capacity | 8.8 GW by Q1 FY27 | Existing 4.8 GW plus 4 GW from Odisha; ramp-up expected over 3-4 months. |
| Cell Capacity | 4.8 GW by H2 FY27 | Commercial production targeted for October 2026; expected to unlock DCR margins. |
| EBITDA Margin | 13.0% (Sustainable) | Management views 13% as a realistic floor despite current 16% 9M performance. |
| Revenue Growth | High Double-Digit | Aiming to defend historical growth patterns through capacity doubling. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Volatility | Silver and copper prices have caused margin compression in Q3; silver now constitutes ~25% of module input costs. |
| Policy & Trade Risks | While US tariffs have lowered to 18%, the final execution of trade deals and ALMM implementation timelines remain critical for planning. |
| Technology Risk | Rapid shift from Mono PERC to newer technologies requires constant capex; cell production entails a steeper learning curve than modules. |
Q&A Highlights
Pricing Dynamics & Raw Materials
- Question: How does the company handle volatility in silver/copper prices in long-term contracts? (Pinank, IDBI Capital)
- Answer: Contracts are a mix. Long-term (6-12 months) deals include pass-through clauses for FX and input costs or involve customer-secured cells. Short-term spot orders are fixed-price. (Prashant Mathur)
Odisha Project Timeline
- Question: When will the new module and cell capacities contribute to revenue? (Raman KV, Sequent Investments)
- Answer: Module revenues will start mid-Q1 FY27. Cell production will begin around October 2026 as it takes more time to stabilize efficiencies. (Prashant Mathur)
Margin Compression
- Question: Why did EBITDA margins dip to ~13% in Q3 from higher levels earlier in the year? (Prakhar Porwal, Ambit Capital)
- Answer: Primarily due to silver/aluminum price spikes and USD/INR fluctuations. Management expects the market to adapt with a lag in Q4. (Prashant Mathur)
Debt and Interest
- Question: What caused the sharp increase in interest costs this quarter? (Maitri Shah, Sapphire Capital)
- Answer: Temporary short-term borrowings were used to secure cell inventory ahead of expected price hikes; costs should normalize by March. (Abani Jha)
Key Takeaway
Saatvik Green Energy delivered a strong Q3 FY26 with 143% YoY revenue growth, reaching ₹1,257 crores, as execution normalized following monsoon disruptions. The company is maintaining high operational efficiency with an 81% utilization rate and a healthy ₹6,500 crore order book. Strategically, Saatvik is transitioning from a pure-play module manufacturer to a vertically integrated player, with its 4 GW Odisha module expansion and 4.8 GW cell line on track for FY27. While Q3 margins faced pressure from volatile silver and aluminum prices, the management remains confident in achieving a 13% sustainable EBITDA margin. The successful commissioning of the in-house EPE film plant and the upcoming cell capacity are expected to significantly enhance cost control and margin resilience. Looking ahead, the company is poised to double its capacity to 8.8 GW by early FY27, positioning it to capture rising domestic demand driven by the PM-Surya Ghar scheme and potential export opportunities.
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