Data as of 3 Nov 2026
GP Eco Solutions (NSE SME: GPECO) trades at about 9 times trailing profit after a strong half: H1 FY27 sales rose 93% to ₹234 Cr. The catch is cash: the business used about ₹150 Cr in six months and its debt doubled. I hold GP Eco shares; these are my research notes, not a buy or sell call.
H1 FY27: fast growth at a low price
Sales almost doubled and profit more than doubled in H1 FY27 (Apr–Sep 2026), yet the stock trades at about 9 times trailing profit.
Revenue rose 93% to ₹234.4 Cr. EBITDA was ₹41.3 Cr, a 17.6% margin, up from 14.3% in FY26. Owners’ profit (PAT) rose 126% to ₹22.3 Cr; EPS grew less because new shares were issued.
| Valuation (3 Nov 2026) | Value |
|---|---|
| Share price | ₹383 |
| Market cap | ₹477 Cr (1.245 Cr shares) |
| Revenue, last 12 months | ₹527 Cr |
| Owners’ PAT, last 12 months | ₹52.6 Cr (core ₹50.4 Cr) |
| P/E | 9.1x; about 11.7x if all warrants convert |
| EV/EBITDA | about 8x |
Management guided 2–3x growth in FY27 revenue and profit on the June 2026 call. On FY26 owners’ PAT of ₹40.1 Cr, that means ₹80–120 Cr for the year. After H1’s ₹22.3 Cr, H2 must deliver ₹58–98 Cr.
On revenue, 2x (₹829 Cr) needs ₹595 Cr in H2, 2.5 times H1. That is a big ask, but this company books most of its year in the second half: 71% of FY26 revenue came in H2. The bigger BESS cabinets also only started production in September, so H2 is the first half with them running.
What GP Eco does
GP Eco began as a solar-products distributor and is turning into a battery storage (BESS) and inverter maker through its subsidiary Invergy. Distribution is still half of sales, but manufacturing earns the best margin.
| Segment, H1 FY27 | Revenue ₹ Cr | Share | PBIT margin |
|---|---|---|---|
| Distribution: traded inverters, modules | 119.7 | 51% | 10.5% |
| Manufacturing: inverters + BESS (Invergy) | 91.1 | 39% | 25.3% |
| Solar EPC (GPES Green) | 22.9 | 10% | 20.3% |
Own solar power added ₹0.7 Cr. BESS is not reported separately from inverters; it is probably ₹20 Cr or less of the ₹91 Cr, since signed BESS orders are only 20 MWh.
The money moves like this: GP Eco buys cells and parts and sells them to Invergy. Invergy builds the BESS and inverters and sells them to customers such as KPI Green, or back to GP Eco, which sells them on.
The plan is to shift the mix toward manufacturing:
| Revenue mix | Distribution | Manufacturing | EPC |
|---|---|---|---|
| FY26 (management’s split) | 53% | 31% | 16% |
| H1 FY27 (reported) | 51% | 39% | 10% |
| FY27 guidance (Jun-26 call) | 13% | 53% | 33% |
Six months in, the mix has barely moved toward the guide. With a full 3 GWh plant, my own estimate is BESS about 78% of revenue, inverters 7%, EPC 11%, distribution 3% and own power 2%.
The plants. Noida has the older 500 MWh line. The new plant at Dasna, near Ghaziabad, is called 3 GWh, and its planned cost has risen to about ₹200 Cr.
Phase 1 at Dasna was commissioned on 30 May 2026, but no Phase 2 (full 3 GWh) commissioning has been filed with NSE. The H1 balance sheet shows ₹72 Cr of fixed assets plus ₹30 Cr of work in progress.
When I visited in August, I saw one small, mostly manual line. Until September they mainly made small units; bigger cabinets started after that, but not yet megawatt-size containers.
A 3 GWh plant would have to ship about 30 cabinets of 261 kWh a day at full use, or 15 at half. The company’s own video shows only a couple, so the ramp-up is still ahead, though there is plenty of floor space.
Order book. Signed outside orders filed on NSE in Jul–Aug 2026 add up to ₹180.7 Cr, about 0.38 times the market cap. Most are trackers, inverters and EPC work, with only 20 MWh of BESS. Distribution sells off the shelf, so it has no long order book to report.
Group, promoters and shareholders
The listed parent runs its businesses through subsidiaries, and in two of them insiders own the other 49%.
| Company | GP Eco stake | What it does | FY26 revenue ₹ Cr |
|---|---|---|---|
| Invergy India | 100% | Makes BESS and inverters | 129.6 |
| GPES Green Projects | 51% | Solar EPC; holds the 128 MWp order | 66.05 |
| AN3 Techno Power | 51% | Li-ion packs, Noida; founded by Prasoon Chaudhary | 9.71 |
| Invergy Medicare | 100% | Holds the Dasna land; family-owned until Sep-25 | 1.55 |
| GPES Solar 1–10 | 51–100% | Solar project companies; 6–8 co-owned by promoters | 0 |
GP Eco bought its 51% of GPES Green from the MD for ₹5,100 in Feb-25. The other 49% belongs to Deepak Pandey (21%), Astik Tripathi (14%) and Prasoon Chaudhary (14%). Only GP Eco’s share counts in owners’ PAT; the minority holders got ₹2.6 Cr in FY26.
GP Eco bought AN3 to keep its founder Prasoon Chaudhary and his team. Shareholders have approved up to ₹1,050 Cr of loans and guarantees to subsidiaries, about 11 times the parent’s ₹93 Cr net worth.
Shareholders (Sep-26). Promoters own 59.42%, and 53.2% of their shares are pledged. Institutions hold about 1.5% (AIF 1.37%, FPI 0.12%), and no mutual fund owns it. The public holds 39% across about 2,140 shareholders, including some large individual investors.
How it raised money:
| Raise | Date | Price ₹ | Size ₹ Cr | Who |
|---|---|---|---|---|
| IPO | Jun-24 | 94 | 30.8 | Public; 856x subscribed, listed at ₹375 (+299%) |
| Preferential shares | Jun-25 | 348 | 4.18 | Poet Kumar Vishwas |
| Promoter warrants | Jun-25 | 348 | 4.18 | Promoters; converted Sep-26 |
| Preferential shares | Jul-26 | 364 | 18.2 | Funds |
| Warrants | Jul-26 | 364 | 103.6 (25% paid) | Minerva and Al Maha (9.19 lakh each), promoters (8.2 lakh), others |
The IPO came near the peak of the bull run in June 2024. The Jul-26 warrant holders still owe ₹77.7 Cr, payable only if they convert within 18 months. At ₹383 the stock is just 5% above the ₹364 strike, so they have little reason to hurry.
The monitoring agency says the ₹44 Cr received so far went to working capital, as the offer said.
What management promised, and what came
Management keeps its margin promises but over-promises on revenue and timing: FY26 revenue came in at 55–59% of the November guidance.
| Promise | Said on | Target | Delivered |
|---|---|---|---|
| FY26 revenue | Nov-25 call | ₹700–750 Cr (3x) | ₹414 Cr; re-stated in Jun-26 as “always ₹550–600 Cr” |
| FY26 profit | Nov-25 call | PAT 5x (~₹52 Cr) | ₹42.7 Cr, 4.1x |
| EBITDA margin | Nov-25 call | 13–14% | 14.3%; 17.6% in H1 FY27 |
| BESS plant cost | May-25 and Nov-25 calls | ₹30–40 Cr | About ₹200 Cr plan (Jun-26) |
| First BESS product | Nov-25 call | Jan-26 | Phase 1 commissioned 30 May 2026 |
| 3 GWh plant | Jun-26 call | By 30 Sep 2026 | Not filed with NSE yet |
| Module line | May-25 call | 1.2 GW | Dropped (Jun-26) |
On the 3 GWh plant, the factory video and my own visit show that capacity has grown. There is no way to check whether it is really 3 GWh, and the company has not told the exchange.
On a strict count, only the margin promise was fully kept. On size, they tend to deliver a little over half of what they say, so when they guide 3x, I plan for something nearer 1.7–2x.
Order-book talk also kept changing: ₹500 Cr+ in May-25, against ₹180.7 Cr of signed outside orders today. Dropping the module plant to focus on BESS was the right call.
The weak spot: cash and debt
Profit is not turning into cash yet: in H1 FY27 operations used about ₹127 Cr against ₹22 Cr of profit, and debt doubled to ₹215 Cr.
| ₹ Cr | FY25 | FY26 | H1 FY27 |
|---|---|---|---|
| Owners’ PAT | 10.4 | 40.1 | 22.3 |
| Operating cash flow, reported | 22.3 | 29.3 | −36.9 |
| Operating cash flow, adjusted | 2.5 | −6.2 | −127.3 |
| Debtor days | 95 | 172 | 99 |
| Cash conversion cycle, days | 43 | 78 | 176 |
| Borrowings at period end | 33.1 | 109.0 | 214.7 |
Adjusted = reported operating cash flow minus the short-term loans the company booked inside working-capital changes; I count those loans as borrowing, not as cash from the business. H1 debtor days use trailing 12-month sales.
The good news: customers paid faster. Receivables fell ₹52 Cr to ₹143 Cr, and debtor days dropped from 172 to 99.
The bad news: the cash went somewhere else. GP Eco paid down suppliers by ₹108 Cr, customer advances fell ₹37 Cr and stock rose ₹36 Cr. The cash cycle jumped from 78 to 176 days, and the gap was filled with ₹90 Cr of new short-term loans plus ₹44 Cr of new equity.
So the issue is not unpaid or fake sales; growth is eating cash. If that goes on, GP Eco must keep borrowing or issuing shares to grow, and the guidance holds only if cash use and debt stay in check.
Debt. About ₹156 Cr (73%) of the ₹215 Cr is due within a year, against only ₹38 Cr of rated fund-based bank limits (Infomerics). Lenders include SBI, HDFC Bank, IndusInd, Yes Bank and SBI Factors, at an average cost of about 12%.
Short-term debt of ₹156 Cr is close to receivables of ₹143 Cr, so they can most likely repay as customers pay. But cash is low, so four bad quarters in a row would hurt.
Pledge. 53.2% of promoter shares are pledged, but the loans behind them are small and went into the company. NBFC loans against Anju Pandey’s pledged shares were ₹17.5 Cr in March, at 16–16.5%, while those 22.97 lakh shares are worth about ₹88 Cr at ₹383. By my estimate, a margin call needs a fall of around 60%.
Funding gap. My estimate of the FY27–28 need is ₹270–840 Cr: finishing Dasna, scaling to 5 GWh, working capital and the group’s own 100 MW solar park. Visible money is ₹60–150 Cr, so at least ₹120 Cr more must come from new debt or equity.
Why BESS: the opportunity
India needs about 25 times more battery storage by FY32 than it has today, and solar is the reason.
- Solar is booming. India had 171 GW of solar on 30 Sep 2026, after adding 44.6 GW in FY26 and 20.8 GW in H1 FY27. The PM Surya Ghar rooftop scheme alone has ₹75,021 Cr.
- The evening gap. Demand hit a record 256 GW on 25 Apr 2026, and solar gave 58 GW at that moment. Solar makes nothing after sunset, yet night demand now matches the afternoon.
- Wasted power. India curtailed 1.46 billion units of solar in Jul–Aug 2026 because the grid and storage could not absorb it.
- Storage today vs the plan. India had 9.3 GWh of BESS in June 2026; the CEA plan needs 236 GWh by FY32. That is about 76% growth a year, or roughly 40 GWh added every year.
- Policy push. VGF of ₹5,400 Cr for 30 GWh (on top of an earlier ₹3,760 Cr), and the storage obligation on power distributors rises from 1% in FY24 to 4% by FY30. VGF projects must have 20% local content and Indian EMS software.
A BESS earns in two ways. It charges on cheap midday solar and sells into the evening peak, then charges again at night and sells into the morning peak: two cycles a day, which time-of-day tariffs pay for. It also steadies a weak grid within milliseconds.
China shows where this can go. Its new-type storage grew from 3.4 GW in 2020 to 136 GW (351 GWh) at end-2025, and it added 189 GWh in 2025 alone.
The supply chain. Cells are about half the cost of a BESS, and China controls most of the mining, refining and cell-making. India’s cell plants are only starting: Exide’s 6 GWh phase began in Sep-26 and Reliance is ramping 40 GWh at Jamnagar, while Amara Raja, Waaree and Tata’s Agratas are still building.
Packs, racks, containers, power electronics, EMS software and EPC can all be done in India, and that is where Invergy plays. Battery-material makers such as Himadri, Gujarat Fluorochemicals and Neogen are listed too, but they already trade at high P/Es.
My view: as in solar, Indian BESS companies can earn good money even though most Chinese BESS makers do not. India is 5–6 years behind China in assembly and 10–20 years behind in cells.
Competition: who else builds BESS in India
GP Eco is not alone: about 25 GWh of BESS assembly already runs in India, and announced plans pass 100 GWh.
| Company | Listed as | Running now | Plan | How solid the number is |
|---|---|---|---|---|
| GoodEnough | Unlisted | 7 GWh | >25 GWh in 3 years | Press release only |
| Waaree ESS | Waaree Energies | 5.15 GWh | 20 GWh incl. cells | NSE filing, Jul-26 |
| Pace Digitek | Pace Digitek | 5 GWh | 10 GWh in FY27 | Filed; made 1.25 GWh in year 1 |
| Neuron Energy | Unlisted | 5 GWh | Not stated | Press report, opened Apr-26 |
| GP Eco / Invergy | GP Eco (SME) | 3 GWh (claimed) | 5 GWh by FY28 | Only Phase 1 filed |
| Ornate UnityESS | Unlisted | ~1 GWh | Alwar plant, 5 + 6.5 GWh | Own website; imports today |
| VSL PowerHive | Vikram Solar | 0 (imports) | 7.5 GWh from Apr-27 | Announced Oct-26 |
Assembly is cheap to set up: ₹20–70 Cr per GWh (GP Eco about ₹67 Cr), against about ₹500 Cr per GWh for a cell plant. So GP Eco’s ~12% share of running capacity will shrink unless it keeps growing.
India vs China. At utility scale, management puts imports at about ₹85 L per MWh against its own ₹95 L, and says 6–8% of duty and logistics brings them to par. It also delivers in about 90 days, while imports take months. Chinese plants are 70–80% automated, and there is no clear moat yet.
My own quotes. I asked four suppliers to quote BESS cabinets for a C&I site of about 625 kW / 1,305 kWh. These are first quotes, before any negotiation.
| Supplier | Price ex-GST | ₹ per kWh | vs Invergy | Warranty |
|---|---|---|---|---|
| Invergy (GP Eco) | ₹1.775 Cr | 13,602 | — | Battery 5 yrs, PCS 3 yrs |
| GoodEnough | ₹1.85 Cr | 14,165 | +4.1% | 5 yrs, optional to 12 |
| Loom (Chinese Topband unit) | ₹1.90 Cr | 14,559 | +7.0% | Battery 10 yrs (draft) |
| Ornate (Chinese import, with duty and freight) | ₹1.70 Cr for 1,044 kWh | 16,329 | +20% | 5 yrs |
Ornate’s quoted ₹1.50 Cr left out about ₹20 L of customs duty and sea freight. GST on imports can be claimed back, so it does not change the comparison. Invergy was the cheapest per kWh; its weak spot is the warranty.
Over 10 years, Loom works out cheapest (₹1.90 Cr against Invergy’s ₹2.00 Cr with EMS fees), but only if its 10-year warranty becomes binding. Someone I know bought the Loom unit for a similar load, trusting Chinese quality more. With duty and freight, its price looks low for an import, so I would ask how it lands so cheaply.
Where Indian makers win. On small C&I sites, Chinese imports may still win on warranty. Big projects are different: NTPC, PSU and state projects under VGF need 20% Indian content, which shuts out pure importers, and that is where assemblers like Invergy can compete.
My view and what I’m watching
The business looks real; the risk is cash and debt, not fraud.
Why I think it is real:
- I visited the Dasna plant, and the company’s own video shows it working.
- GST turnover bands for GP Eco and Invergy match the reported sales.
- FY26 import bills of ₹38.5 Cr fit a small but real BESS volume.
- Infomerics rates it BBB/Stable, up from BB+ in April 2026.
- IPO money was used as stated, and the promoters talk about the business, not only growth.
What worries me:
- A 176-day cash cycle and −₹127 Cr of adjusted operating cash in H1.
- ₹156 Cr of short-term debt against ₹38 Cr of rated bank limits.
- The auditor qualified internal financial controls, which I read as weak stock records (no proper ERP system).
- The Pandey family’s pay of ₹1.7 Cr is 41% of the parent’s staff cost; with co-promoter Astik Tripathi’s ₹96 L “consulting” fee, it is ₹2.7 Cr, about 7% of pre-tax profit.
- ₹6.8 Cr has sat with related family firms for three years; ₹17.6 Cr lent to promoters in FY26 was repaid.
A large investor could ask for the books and check everything; I can’t. The only test left for me is the next results.
Valuation. At 10x P/E (a 10% earnings yield), the price needs only ₹47.7 Cr of profit, 5% below the last 12 months’ core profit. If profit just holds, the downside looks limited; each extra ₹10 Cr of profit adds about 21% at the same P/E. The real downside is profit stalling because cash can’t be collected or raised.
Timing. The stock is down about 23% in a year, trades at 9.5x core profit and has almost no institutions.
The risks to watch are short-term debt, cash burn and the pledge; I want to see cash turn positive and the pledge fall. Signed orders of about ₹480 Cr (1x market cap) would make the case much stronger. I can see potential orders that are not signed yet, and I think there is a window of about six months, roughly until the FY27 results.
If the plant fills. By my estimate, a full 3 GWh plant could earn about ₹329 Cr of PAT a year, about 6.5 times the last 12 months’ core profit. That is the potential, not a forecast.
What I’m watching before the FY27 results:
- H2 FY27 revenue of at least ₹595 Cr (the 2x guidance)
- Positive operating cash flow in H2
- Short-term debt staying below ₹250 Cr
- A Phase 2 (3 GWh) commissioning filing on NSE
- Signed orders near ₹480 Cr, with more BESS in them
- The pledge falling and the warrants converting (₹77.7 Cr)
A parallel theme. A BESS installs in about 6 months and switches on in milliseconds, but pumped hydro runs 8 hours a day and lasts 70–100 years. It takes 10–15 years to build; India has 7.4 GW and plans about 106 GW by FY36, roughly 32% a year. That is a story for FY28–29.
Disclosure: I hold GP Eco shares. This is my research, not a buy or sell recommendation; do your own work before investing.
Sources
- GP Eco Solutions filings on NSE: H1 FY27 results and monitoring-agency report (3 Nov 2026), FY26 annual report, concall transcripts (May-25, Nov-25, Jun-26), shareholding pattern (Sep-26), order filings (Jul–Aug 2026)
- Infomerics rating rationale (25 Sep 2026)
- Industry data: MNRE (solar capacity), Mercom (India BESS installed), CEA National Electricity Plan, Down To Earth (April 2026 peak), CREA via TaiyangNews (curtailment), China’s NEA and CNESA (storage), PIB and CEA (pumped hydro)
- ESS News: Invergy opens 3 GWh BESS factory
- Energetica: Invergy’s ₹200 Cr Dasna factory
- ESS News: GoodEnough’s 7 GWh factory
- Energy-Storage.news: Waaree’s 5.15 GWh plant
- ESS News: Pace Digitek’s first-year output
- Powerline: Neuron Energy’s 5 GWh plant
- ESS News: VSL PowerHive’s 7.5 GWh plan
- Mercom: 10% customs duty on BESS
- My own work: plant visit (5 Aug 2026), supplier quotes (Oct 2026).