Summary
Solex Energy Limited - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 4:00 PM
Event Participants
Executives 4 Anil Rathi (Non-Executive Director), Chetan Shah (Chairman & Managing Director), Hemal Kachiwala (Chief Financial Officer), Vipul Shah (Non-Executive Director)
Analysts 4 Aman (Augmenta Asset Managers LLP), Amit Kumar (Bansal Family Office), Gaurav Ruparelia, Manan (Moneybee)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (9M FY26) | ₹735.1 crores | +79.3% YoY, driven by improved execution and demand traction. |
| Revenue (Q3 FY26) | ₹319.4 crores | +135.3% YoY, impacted by initial phase of new capacity ramp-up. |
| EBITDA (9M FY26) | ₹88.1 crores | +72.5% YoY, margins slightly compressed due to fixed costs of new facility. |
| PAT (9M FY26) | ₹39.4 crores | +45.3% YoY, affected by higher interest and depreciation from expansion. |
| Module Capacity | 4 GW | Includes 2.2 GW at Tadkeshwar facility commenced in Nov 2025. |
| Order Book | ₹4,000+ crores | Includes significant wins from Zelestra Group (₹544 cr) and other IPPs. |
| Net Profit Margin | 6% - 8% | Management target for full year FY26 as operating leverage kicks in. |
Geographic & Segment Commentary
- Solar PV Manufacturing: Successfully commissioned a 2.2 GW facility at Tadkeshwar in November 2025, bringing total capacity to 4 GW. The segment is shifting toward high-efficiency N-Type TOPCon G12R modules to meet IPP and C&I demand.
- EPC Business: Performance was hampered by an extended monsoon, delaying projects by 2-3 months. Management expects ₹120-130 crores in EPC revenue to materialize in Q4 FY26.
- Institutional Sales (IPP): Represents 80% of the order book. Focus remains on utility-scale “giga-projects” with major clients like Zelestra and reputed domestic IPPs.
Company-Specific & Strategic Commentary
- Vertical Integration: Planning a 2.2 GW N-Type TOPCon Plus solar cell line by 2027, with long-term Vision 2030 targets of 10 GW cell and 2 GW ingot/wafer capacity.
- Technological Partnerships: Collaborating with ISC Konstanz (Germany) for Rear Contact technology and TT Vision (Malaysia) for automation and process optimization.
- Next-Gen Products: Unveiled “TAPI Rear Contact” (TRC) modules, India’s first rear-contact solar module, with commercial production slated for FY27.
- BESS Expansion: Exploring Battery Energy Storage Systems (BESS) manufacturing, targeting entry by late FY27 to capitalize on grid storage and data center demand.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | ₹1,700 - ₹1,800 crores (FY26) | Based on strong execution scheduled for Q4 and current order book movement. |
| Capacity Utilization | 70% (Q4 FY26) | Expected ramp-up of Lines 3 and 4 which achieved full operation in Dec 2025. |
| Cell Manufacturing | Operational by 2027 | Land acquisition and environmental clearances in progress; technology finalized. |
| Module Capacity | 10 GW by 2030 | Long-term strategic scaling to maintain market leadership. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Inflation | Solar cell prices increased 110-120% recently. While FY26 is protected by pre-booked inventory, FY27 contracts may require renegotiation. |
| Execution Delays | Extended monsoons impacted the commissioning of new lines and EPC project timelines. Management is pushing heavily in Q4 to recover. |
| Regulatory/Land Clearances | Delays in land acquisition for the cell line due to GPCB and environmental clearance hurdles in Gujarat. |
Q&A Highlights
Margin Compression & Financials
- Question: Why did gross margins contract from 30% to 17%? (Manan)
- Answer: Q3 margins faced high fixed costs (depreciation/interest) from the new 2.2 GW facility before full utilization. Additionally, high-margin EPC revenue was delayed due to weather, but is expected to rebound in Q4. (Vipul Shah/Hemal Kachiwala)
Order Book & Inventory
- Question: Is there a risk in the ₹4,000 crore order book given raw material price hikes? (Manan)
- Answer: Current FY26 orders are secured with pre-purchased inventory. Many Master Service Agreements (MSAs) have dynamic pricing for cells, protecting the company from volatility. (Chetan Shah)
New Capacity Ramp-up
- Question: What is the status of the new production lines? (Amit Kumar)
- Answer: Lines 3 and 4 became operational in November 2025. The company is now working three shifts, including Sundays, to meet Q4 targets. (Vipul Shah)
Capital Expenditure & Funding
- Question: What is the status of funding for the new cell line? (Manan)
- Answer: Management is expecting term sheets for ₹300-400 crores from investors within the next week. (Vipul Shah)
Key Takeaway
Solex Energy Limited reported a transitionary Q3 FY26, marked by the commissioning of its 2.2 GW Tadkeshwar facility, bringing total capacity to 4 GW. While the quarter saw margin pressure due to upfront fixed costs and monsoon-related execution delays, the company achieved a 135% YoY revenue jump. Strategically, Solex is pivoting toward high-efficiency N-Type TOPCon and Rear Contact technologies through German R&D partnerships. With a robust order book exceeding ₹4,000 crores and significant customer advances (₹400+ crores), management expressed high confidence in reaching a full-year revenue target of ₹1,700-₹1,800 crores. The company is now aggressively pursuing vertical integration into solar cells and exploring the BESS market to sustain its growth trajectory through 2030. Management anticipates margin normalization to 6-8% PAT levels in Q4 FY26 as operating leverage scales.
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