Solex Energy manufactures solar PV modules at a 4 GW facility in Gujarat and runs a smaller EPC business through a subsidiary, selling N-type TOPCon modules largely to Indian IPPs under its own brand. It sits one step downstream of cell makers today, buying cells and converting them into panels, which caps its economics: FY26 consolidated revenue was INR 16,211 million, up 144 percent year over year, but EBITDA margin was only 11.5 percent and PAT margin 6.1 percent, levels that sit in the average band for capital goods manufacturing rather than anything exceptional. India's module segment is crowded with capacity additions, and management itself conceded on the November 2025 call that cell capacity, not module capacity, will determine industry structure, with older-technology module players expected to consolidate or exit. Solex is therefore a mid-sized converter today whose profitability depends on utilization, mix and raw material pass-through rather than a defensible niche.
The economics have some persistence but stop short of a hard moat. The company moved from OEM job work to 100 percent own-brand sales, claims marquee IPP relationships built on factory audits, MES traceability and 30-year warranties, and holds an R&D partnership with ISC Konstanz, having launched what it describes as India's first rear-contact module in October 2025. Dollar-linked orders and dynamic pricing clauses in major MSAs let it pass through cell price swings, which mattered when cell prices rose 110 to 120 percent ahead of FY26 execution. However, these are customer-qualification and technology-adoption advantages, replicable by better-funded peers, and management has openly acknowledged commoditization risk from large industry capacity additions. At 11.5 percent EBITDA, the market is not currently paying Solex for scarcity; the backward integration into cells is the attempt to earn it.
The inflection is the cell line, and the 18-to-24-month picture rests almost entirely on it. Guidance for FY27 is INR 26,000 million of revenue at 6 to 8 percent PAT margin on just 55 percent utilization of existing module capacity, against order book visibility exceeding INR 34,000 million. The first 2.2 GW phase of the TOPCon cell line is now targeted for December 2027, funded by roughly INR 1,050 crores of capex split about INR 700 crores debt and INR 350 crores equity, with land connectivity approvals and the NCD-plus-CCD fundraising both slated to close by end June 2026. If that holds, by mid-2028 Solex should be running integrated module-plus-cell operations, with FY28 EBITDA guided roughly flat during ramp-up before a targeted EBITDA margin above 20 percent in FY29, plus a BESS subsidiary phased toward 10 GW under the Gujarat MoU. Note the order book has drifted down from above INR 4,000 crores in February 2026 to about INR 3,400 crores in May 2026, worth tracking.
Management's walk-talk record is mixed and tilts negative on timelines. FY26 revenue guidance was cut twice, from INR 2,200-2,400 crores in May 2025 to INR 2,000-2,200 crores in November 2025 to INR 1,700-1,800 crores in February 2026, and actual delivery came in around INR 1,621 crores, below even the final range. The cell line was promised for March 2027 on the November 2025 call and has slipped to December 2027, while the land deal pledged for conclusion by end calendar 2025 was still awaiting power connectivity approvals as of May 2026. Offsets are real though: lines 3 and 4 were commissioned broadly on schedule in October-November 2025, Q4 FY26 PAT margin reached 6.6 percent, working capital days fell to about 35 from 61, net debt-to-equity stands at 0.57, and operating cash flow was positive INR 2,007 million in FY26. Capital allocation leans on debt with modest dilution, and TOL/TNW is guided below 4 post-capex.
The quantified path is FY27 revenue of INR 2,600 crores yielding roughly INR 156-208 crores of PAT at the guided 6-8 percent margin, followed by margin expansion toward 15 percent PAT once cells are internalized. For this to hold, three things must be true: the June 2026 funding and land milestones close on time, the December 2027 cell commissioning does not slip again, and ALCM enforcement from June 2026 either gets extended or domestic cell supply remains available, for which Solex has arranged procurement. The single most important watchpoint is the cell line date itself. One more slip past December 2027 would leave Solex a module-only converter facing cell-cost volatility and industry consolidation, collapsing the margin-expansion case, whereas on-time commissioning converts a 6 percent PAT business into a structurally more integrated one by FY29.
companyname: Solex Energy Limited ticker: SOLEX sector: Solar Energy / Renewable Energy Manufacturing & EPC Solex Energy is a Gujarat-based solar PV module manufacturer that started in 1995 as a thermal technology company, entered photovoltaic module manufacturing in 2007, and listed on NSE Emerge in 2018 before migrating to the NSE main board on October 8, 2025 (Nov 2025 concall). The company runs a fully automated 4 GW module facility at Tadkeshwar, near Surat, across four production lines. L...
Read the full report →capex, margin expansion, new product segment, order book surge
FY27 revenue guided at INR 26,000 million with PAT margin of 6-8% driven by full integration and global expansion
Guidance upgradedmixed
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