Sharing my notes on Insolation Energy Ltd
INSOLATION ENERGY NOTES.pdf (838.5 KB)
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Nice write up.
Some industry insights …
Indian capacities are under utilized till date due to cheap chinese import.
My calculations - china supplied at approx 16000 rs/kw while indian players are at 20000 rs/kw. After 40% duty, Indian module players are in sweet spot.
But if module co wants to grow, whole ecosystem must be in good shape, many EPC players are feeling heat of rising module prices. As a whole industry, this is a risk and expecting gov action soon in this regard.
Vikram solar IPO coming, co aiming 5 GW capacities (production 500 mw in fy21 - 22 !!) May list at Mcap of 5000 cr or more (total guess, do your own study for this point)
In china one listed module players - Trina solar having 50 GW capacity, having 1,50,000 cr RS mcap, 8-10 % ebitda margin, 3.5-4% npm.
In china, single co has more capacity than whole india, so if gov supports, think of potential, on a flip side, there are less entry barriers here.
Some interesting articles …
Disc: Invested in INA on listing day.
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Thank you for sharing your input. It is really helpful.
As expected, things are not moving at EPC execution level due to mismatch in input cost and PPA price.
Some hope if input cost goes down, interesting article, solar cells at 10000-11000rs / kw and solar modules at 20000-21000rs / kw in china now, further downside expected. In past, indian solar module manufacturing companies have grown well at lower pricing points.
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I entered it a few months back and it is already 2x. Watched interview of management - 1000 crore top line in 4 years.
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My understanding says they are poised for 500 Cr already and margins might improve as well.
I have 2 queries
- Is this an epc player or manufacturer as well ?
— invested
Twitter seems to have lot of good info on insolation energy. Many people have interacted with the mgmt and confirmed another 500 mw addition to the existing 700mw. This co seems to be progressing well as per they guided. I am not sure if the lowering of solar cell prices will help them and how much but it should to some extent imo.
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https://www.bseindia.com/xml-data/corpfiling/AttachLive/36464874-01d0-4052-b415-cab970160db4.pdf already a mutlibagger and going to get even better…Annual report extract Line upgradation with 250MW with glass to glass (G 2 G) technology Expecting PAT of 38 crores with revenue of 630 crores by 24 , next year • Planning to increase our Capacity to 1200 MW, Aspiring to Achieve an Actual Sales Volume 500MW+ Revenue Goal: ₹1000 crores, by 2026 aiming for achieving expansion goals of Capacity 2000MW with an Average Capacity being 1500MW and Usable
Capacity 1000MW at a Utilization of 70%, Our vision is to touch an Actual Sale of
1000MW, We are aiming for attain Revenue of ₹2000 Crores… huge potential from last year 279 crore topline
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Amazing run continues of share price, Impressive H1 results…H2 is supposed to be better as they had said PAT of 38 crore in FY 24 so H2 should be 23 crore and with that H2 FY 24 forward PE will be around 25 at current price. Execution remains on track, exploring external markets. Regulation is becoming favourable too. A long run ahead remains…
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At 1000 crore topline for 24-25 as per annual report its EPS can cross 30, with explosive growth PE can cross 100 so share price can cross 3000 Rs in a year and 6000 by 26 as management has aspiration to reach 2000 crore topline by 25-26. Already a mega multibagger and will create immense value ahead too . Given Pradhanmantri Suryoadya Yojna capex, its price can move much ahead of the actual earnings and can cross five digits too ( without split and bonus)
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According to the latest data from Mercom, India has 64.5 GW solar module manufacturing capacity at the end of 2023 whereas we exported 4.8 GW of modules in 2023 and India’s capacity addition was 7.5 GW.
Taken together we consumed 12.3 GW of modules whereas we have a capacity to produce 64.5 GW .
Are we looking at massive over-capacity in solar module manufacturing in India?
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3e7a3ef5-486a-4407-8bb5-2bc492479ee3.pdf (331.4 KB)
19f062bb-2078-413f-9cf9-6dcb52201d44.pdf (404.6 KB)
Positive developments. Subsidy on land + utilites from MP govt.
Ambitious expansion plans laid out.
Preferential for expansion.
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Small conclusion of stock and future projections.
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Insolation Energy: Maiden Concall & Sector Tailwinds
Overview:
Insolation Energy are Solar Panel Manufacturers in India, founded in the city of Jaipur, in 2015. They have a product portfolio ranging from solar PV modules to batteries, providing an all round EPC and OEM services. The company is listed on BSE SME board in 2022, and commands a market leadership position for being the Top 10 solar companies in India. They recently conducted their first concall on 9th June, 2025, and had some interesting answers and future outlook from the management that makes the case to dive deeper into this business.
Capacity & Product Portfolio:
The company began with 80MW of manufacturing capacity for solar modules, and scaled it up to 1GW (1000MW) of capacity by 2024, and 4GW (4000MW) by 2025 for solar modules and additional 3GW (3000MW) for solar cells. The company has 3 manufacturing units in Jaipur, and has acquired land in Madhya Pradesh for further expansion of capacity to 8GW (8000MW) by 2027.
They manufacture N type & P type solar modules, accredited by Make in India initiative. EPC services offered span across markets such as residential, commercial & industrial, solar pumps & solar parks, dealing with both public and private clients. Currently holds a strong order book value of Rs. 2,500 cr. (~2x of Mar 2025 sales).
Key Metrics:
(Consolidated in Rs. Crores)
Turnover: Mar 2025 – 1,334 | Mar 2022 – 215 (~6x growth in 3 years)
Operating Margin of 12% in Mar 2025 | Net Margin at ~9%.
MCap as at 6th August – Rs. 4,884 cr. | CMP at Rs. 222.
PE ratio at 39, PEG ratio at 0.24.
Promoters holding 66%. No major FIIs or DIIs invested.
ROCE and ROE for last 1 year are at 35%, however I wouldn’t give much weight to it as the business is yet to prove it’s stability through market cycles.
Industry Background:
Global RE market was valued at $1T in 2023, where solar as a source of energy contribute about 4%, and is projected to grow to $2.1T by 2031. In terms of energy capacity, RE contributes 4,155GW to energy generation, with solar PV and wind leading due to lower costs and supportive policies. The global solar PV panels market was valued at USD 193.62 billion in 2023, and it is projected to expand at a compound annual growth rate (CAGR) of 7.1% from 2023 to 2031.
Looking at the Indian context, RE capacity sits at 234GW as on 30th June 2025, and solar power cumulatively contributes 166GW towards the total capacity. (Useful state-wise data reported by MNRE - Physical Achievements | MINISTRY OF NEW AND RENEWABLE ENERGY | India). Indian RE market was valued at $22B and is expected to grow at 8.7% CAGR, reaching up to $47B by 2032 and solar is expected to bring in $25B of value into the total market. However, India is still highly dependent on coal for energy generation, close to 46% in 2025-26, but the capacity additions are more prominent towards solar resources, whether it’s ground-mounted (+86%) or roof top (+19%) solutions. By 2026, India is expected to emerge as the second-largest Solar PV manufacturer globally, with a module production capacity of 110 GW.
Tailwinds:
India’s PLI scheme will add 51.6 GW of solar module and 27.4 GW of integrated polysilicon-to-module capacity in the next 3-4 years. The Government is implementing the scheme for developing multi-ultra-mega solar power parks with a power generation capacity of 40GW. The sector benefits from policies that permit up to 100% FDI under the automatic route. India’s PV solar power capacity is also expanding due to government support, declining costs of solar panels and related technologies, and the country’s geographic location, which offers abundant sunlight, making it well-suited for solar energy needs. PM-KUSUM initiative promotes the use of renewable energy in the agriculture sector. The PM Surya Ghar: Muft Bijli Yojana, launched in 2024, plays a crucial role in facilitating rooftop solar installations. India has a commitment to achieve 500 GW of non-fossil fuel-based energy capacity by 2030.
Concall Breakdown:
- FY26 Sales – Rs. 3,000 cr. FY27 – Rs. 5,5000 cr. & FY28 – Rs. 8,500. PAT margins growing from 10% in FY26 to 15% in FY28. MOU signed for Rs. 10,000 cr with Rajasthan government. Product pipeline includes solar wafer manufacturing, battery energy storage system & other solar components.
- The new 3GW unit in Jaipur is close to completion. Further land acquired in MP for 4GW solar modules & 3GW solar cell production – construction to begin in H1FY26 & expected completion by H1FY27. Total capex of around Rs. 1,300 cr.
- 100+ distributors, 300+ dealers. Branding partner for Lucknow Super Giants. Government approved EPC contractors.
- Module manufacturing attracts a low margin of 7-8% whereas solar cell & battery component manufacturing attracts a higher margin of close to 18-19%.
- QIP of Rs. 395 cr raised last year – funds utilised for the Jaipur unit expansion & the balance to be utilised in the future cell expansion.
- Opportunities for small entrepreneurs to contribute to the industry by becoming ancillaries for raw materials or someone who can do installations for EPC projects where there is a huge shortage.
- FY26 capacity to be 4GW. MP Unit to be fully operational in FY26-27.
- Plans in place to move from SME board to Main board – process will begin from 11th October, 2025 and within 60 days they should have migrated.
- ~1GW of P Type modules & 3GW of N Type modules.
- Funds for expansion to be sourced as a debt from banks and institutions at an interest rate of 9-9.25%.
- FY26 revenue breakdown – Rs. 2,800 cr from modules, Rs. 400 cr. from EPC projects & Rs. 100 cr. others. Quite confident on achieving this year’s target. FY27 target of Rs. 8,600 cr is all backed against capacity expansion & delivering the plans – Rs. 7,000 cr. to come from modules.
- Quarterly results to be declared going forward.
Disclosure: No investment, tracking as of now
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Hi all - Offlate company has been opening new subsidiaries, like way too many than we generally see and promoter buying like retailer every alternate day in small quantities. Despite getting some sizable orders, no price action in the stock at all. Is it because of sector demand has fallen or expected to fall or Tariffs? I don’t see it as expensive valuation currently. Even with their 3GW new plant commission didn’t receive any appreciation. Anything Market knows and we don’t?
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Overcapacity should not be an issue as we are seeing massive amounts of data centres being set up all over india and data centres require huge power anyway
They are also foraying into bess and wafer manufacturing so that should be positive
I think once migration is done from sme to mainboard we can see substantial interest from institutional investors