Insolation Energy Limited

IEL, on a consolidated basis, reported a CAGR growth of 52.45% in its scale of operations during the past five year ending FY25. During FY25, IEL on a consolidated basis, reported significant y-o-y growth of 80% in its TOI to Rs. 1334.17 crore as compared to Rs. 737.17 crore in FY24 on the back of gradual scaling up of capacity and healthy domestic demand. Further, owing to increase in contribution from sale of TopCon module, the PBILDT margin improved by 114 bps to 12.12% in

IEL had a healthy unexecuted order book of 1,750 MW for solar modules aggregating to more than ₹2600 crore as on January 2026 end, which provides good revenue visibility over the medium term. The order book contains orders from leading developers such as National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC), KPI Green Energy Private Limited, ACME Solar Holding Limited, etc. Further, in the EPC segment, the group has an unexecuted order book of 650 MW

IEL’s capital structure remained comfortable, with overall gearing of 0.18x as on March 31, 2025 (PY: 0.89x), supported by a strengthened net worth of ₹616.30 crore (₹108.19 crore in FY24) following a ₹395-crore QIP infusion and healthy profit accretion. Debt levels remained moderate at ₹108.09 crore, translating into a strong financial risk profile. Debt-protection metrics remained strong, with interest coverage of 21.98x and total debt/GCA of 0.67x in FY25 (PY: 7.81x and 1.19x).

The demand prospect for domestic module manufacturers remains buoyant on account of various policy measures and schemes initiated by the Government of India (GoI) such as imposition of basic customs duty (BCD) of 40% and 25% on imported solar modules and solar cells, respectively, from April 01, 2022, and impositionof Approved List of Models and Manufacturers (ALMM- I) for domestic modules from April 01, 2024, which is expected to be a key growth driver for the domestic manufacturers by

IEL through its wholly owned subsidiary company i.e. Insolation Green Energy Private Limited (IGEPL) is undertaking backward integration at Narmadapuram, Madhya Pradesh by setting up a 4.5 GW TOPCon cell and 18,000 MT of aluminium framing manufacturing capacity at a planned outlay of ₹1512 crore, which is envisaged to be funded in a debt: internal accrual mix of 75: 25. The company has achieved financial closure for term loan of ₹1134 crore for this project. Commercial operations are expected

Solar module manufacturing industry is highly competitive owing to presence of large number of organized and unorganized players. While the competition from imports is mitigated through policy measures like Approved List of Module Manufacturers (ALMM) and imposition of BCD, the company remains exposed to competition from other domestic manufacturers, especially with the announcement of large expansion plans by existing players and entry of new players.

The profitability of the group remains exposed to volatility in price movements of key raw material i.e. solar cells. Moreover, given the lack of backward integration and limited capacity in India, the company remains dependent on imports, exposing it to pricing and availability risks. Furthermore, the company is also required to procure solar cells from the domestic market for production of DCR (Domestic Content Requirement) panels, the prices of which is significantly higher compared to cells

The PV module industry, including components such as cells is characterised by continuous product and process innovation, along with the rapid adoption of new technology. Given the risk of technological obsolescence, the industry players are required to undertake continuous upgrades and related investments to sustain the competitive advantage.