Solarworld Energy Solutions IPO Price, Pros & Cons + EPC Manufacturing Plans
Solarworld Energy Solutions IPO (₹490 cr) offers shares at ₹333-351 each. Strong growth: FY25 revenue ₹544.77 crore, profit ₹77.05 crore. Backed by a robust order book and plans to build a 1.2 GW TopCon solar cell facility. Detailed comparison & risks inside.
Company Overview
Solarworld Energy Solutions Ltd is a solar energy company (EPC provider + module / solar power integrator) founded in 2013. It builds solar power projects (ground-mounted & rooftop), offers operations & maintenance (O&M) services, and is planning the manufacturing of PV TopCon solar cells. The company aims to scale rapidly in India’s renewable energy transition.
Company Background
- Founded: 2013 in Uttar Pradesh, India.
- Business Model: Primarily provides EPC (Engineering, Procurement & Construction) services for solar power projects. Also offers O&M (Operations & Maintenance) services bundled with many projects.
- Key Projects / Order Book:
- Completed: ~253.67 MW AC (≈336.17 MW DC) as of August 2024.
- Ongoing projects: ~420 MW AC (≈592 MW DC) as of August 2024.
- Order book size (as of August 2024): ~₹799.7 crore.
- Backward Integration Plan: The company has entered into a collaboration with ZNShine PV-Tech to establish manufacturing (solar panel/module / solar cell production) facilities. Specifically, intends to build a 1.2 GW Solar PV TopCon cell manufacturing facility in Pandhurana, Madhya Pradesh.
SolarWorld Energy Solutions IPO Details
| Feature | Details |
|---|---|
| IPO Size | ~ ₹490 crore, comprising fresh issue of ~₹440 crore + offer for sale (OFS) of ~₹50 crore by promoter Pioneer Facor IT Infradevelopers. |
| Price Band | ₹333 to ₹351 per equity share (face value ₹5) |
| Subscription Dates | September 23-25, 2025 |
| Anchor Investor Bidding Date | September 22, 2025 |
| Lot Size (Retail) | 42 shares per lot |
| Listing Proposed | On BSE & NSE |
Financial Performance
Based on restated consolidated FY figures and latest RHP / DRHP as of FY25:
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue from operations | ₹232.46 crore | ₹501.02 crore | ₹544.77 crore |
| EBITDA | ₹228.76 million (≈₹22.88 crore) | ₹710.93 million (≈₹71.09 crore) | ₹1,067.47 million (≈₹106.75 crore) |
| Profit After Tax (PAT) | ₹148.36 million (≈₹14.84 crore) | ₹516.91 million (≈₹51.69 crore) | ₹770.48 million (≈₹77.05 crore) |
| Net Worth (Equity) | ~₹21.91 crore (FY23) | ~₹73.60 crore (FY24) | ~₹309.07 crore (FY25) |
Strengths & Risks
Strengths
- Strong growth: revenue more than doubled from FY23 to FY25; profits jumped even more.
- Solid order book and ongoing projects ensure near-term visibility.
- Backward integration (manufacturing of PV TopCon cells) will help reduce reliance on imports / external supply and improve margins.
- Experienced clients (PSUs, commercial/industrial) and bundled O&M services add recurring income potential.
Risks
- Customer concentration: One key customer (SJVN Green Energy) accounts for a large share of revenue (~79-91%), depending on the year. Losing a big customer could significantly affect the business.
- Capital-intensive projects, especially the manufacturing facility, will need careful execution. Delays or cost overruns could adversely affect profitability.
- Competitive industry: Many players in solar EPC, module manufacturing, and renewable energy services. Pressure on margins & supply chain likely.
Peer Comparison
| Peer Company | EPS / Key Metric | RoNW / Profitability | Competitive Position |
|---|---|---|---|
| Solarworld Energy Solutions | Restated basic EPS ~ ₹10.68 per share (FY25) | RoNW ~ 40.27% | Strong among mid-tier EPC + module players; backward integration & large order book are plus points. |
| Sterling & Wilson Renewable Energy | Lower EPS (≈₹3.49) | Lower profit margins / RoNW (~8-10%) | Larger, more diversified projects but possibly more exposure to cost / execution risk. |
| KPI Green Energy | EPS ~₹16.23, but higher valuation metrics (P/E etc.) | Moderate RoNW (~18-20%) | Larger scale, but competitive pressures similar. |
Conclusion
Solarworld Energy Solutions Limited has shown remarkable growth in revenue and profitability over the last three years, supported by a large order book and backward integration strategy through its upcoming 1.2 GW solar cell manufacturing facility. Its RoNW (~40%) and EPS (₹10.68 FY25) are much stronger than many peers in the renewable energy EPC space.
However, investors should note high customer concentration risk (major dependence on SJVN Green Energy) and execution risks tied to capital-intensive projects.
At the IPO price band of ₹333–351, the valuation appears reasonable compared to peers, given the company’s strong margins and growth outlook. For investors seeking exposure to India’s booming solar energy sector, Solarworld’s IPO could be an attractive medium to long-term bet, though cautious investors may wait to see post-listing performance.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
