GK Energy Ltd Management Discussions

ECONOMIC OVERVIEW

GLOBAL ECONOMY

The global economy navigated 2025–26 amid a challenging macroeconomic environment marked by evolving geopolitical developments, elevated trade barriers and persistent inflationary pressures. While strong investment in technology and AI, accommodative financial conditions, and supportive policy measures sustained growth during the first half of the year, the outbreak of conflict in the Middle East at the end of February 2026 heightened uncertainty, disrupted energy markets and intensified inflationary pressures.

According to the IMF, global growth was projected at 3.1% in 2026 and 3.2% in 2027, compared with an average growth rate of approximately 3.4% during 2024 and 2025. Commodity-importing emerging economies are expected to face greater pressure from elevated energy prices, while commodity exporters may benefit from higher commodity prices in the near term. Global headline inflation is forecast to rise to 4.4% in 2026 before easing to 3.7% in 2027 as supply conditions improve.

Global trade remains resilient, although growth is expected to moderate as higher trade barriers and geopolitical uncertainties weigh on cross-border commerce. Businesses continue to diversify supply chains and strengthen global value networks to improve resilience. In response, the IMF has emphasised the importance of maintaining price and financial stability, pursuing prudent fiscal management, and implementing structural reforms to support sustainable long-term growth.

OUTLOOK

While sustained investment in technology and artificial intelligence is expected to support economic activity, these benefits could be offset by geopolitical uncertainty and financial market instability. Continued policy coordination, structural reforms and supply chain resilience will remain critical to sustaining global economic growth over the medium term.

Sources

https://www.imf.org/en/Publications/weo/issues/2026/04/14/world-economic-outlook-april-2026

https://openknowledge.worldbank.org/server/api/core/bitstreams/4c370aee-ae90-4c42-ac27-89259f9e284e/content

INDIAN ECONOMY

Indias economy remained resilient throughout 2025–26 despite a challenging global environment marked by geopolitical tensions, trade uncertainties and slowing demand across major economies. Strong domestic consumption, sustained policy support and proactive trade reforms helped cushion the impact of external headwinds, including higher tariffs and global market volatility.

According to the IMFs April 2026 World Economic Outlook, Indias real GDP growth was estimated at 7.6% in FY2025–26 and projected at 6.5% in FY2026–27. This momentum is expected to be supported by the carry-forward effect of robust growth in 2025, alongside the significant reduction in additional US tariffs on Indian exports from 50% to 10%, partially offsetting the impact of geopolitical disruptions in the Middle East.

Inflation eased considerably during the year, with headline inflation declining from 4.6% in 2024 to 2.8% in 2025, primarily due to improved food supply conditions. Core inflation, however, edged higher from 3.8% to 4.62%, reflecting firm underlying demand. Headline inflation is expected to moderate around 4.7% in 2026, remaining comfortably within the Reserve Bank of Indias target range of 2–6%. During the year, the Indian Rupee crossed the Rs 90 per US dollar mark amid capital outflows and monetary policy easing, although resilient domestic investor participation continued to support financial market stability.

Fiscal policy remained focused on strengthening domestic demand and accelerating long-term economic growth. The Union Budget introduced direct tax relief for middle-income households to enhance disposable incomes, while public capital expenditure remained anchored at approximately 3.4% of GDP, with continued investments in infrastructure and renewable energy projects. Fiscal consolidation also progressed steadily, with the fiscal deficit narrowing to 4.8% of GDP in FY 2024–25 and targeted to decline further to 4.4% in FY 2025–26.

Outlook

Indias economic outlook remains favourable, supported by strong macroeconomic fundamentals, healthy foreign exchange reserves and a sustained fiscal consolidation trajectory. Nevertheless, external risks such as slower growth among key trading partners, trade-related disruptions and volatility in global capital flows may affect export performance and investment sentiment. Domestic challenges include the possibility of inflationary pressures as demand strengthens, slower transmission of policy rate cuts to credit growth and softer tax collections.

Looking ahead, the next phase of Indias growth is expected to be driven by emerging sectors such as artificial intelligence, Digital Public Infrastructure, green hydrogen, semiconductors and advanced manufacturing, supported by continued policy reforms and rising private sector investment. Progress in trade negotiations with key global partners, particularly the United States, is expected to further reduce external uncertainties. Backed by a large domestic market, favourable demographics and a robust investment environment, India remains well-positioned to strengthen its role as one of the worlds fastest-growing major economies.

Sources

https://www.imf.org/en/Publications/weo/issues/2026/04/14/world-economic-outlook-april-2026

https://kpmg.com/in/en/insights/2026/04/decoding-the-indian-economy-2026.html

https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2269286&reg=48&lang=1

Industry Overview

INDIAN SOLAR AGRICULTURAL WATER PUMPING SYSTEM MARKET

India continues to transition towards a lower-carbon energy system while pursuing its long-term renewable-energy and climate objectives. As per Crisil Intelligence, Indias solar-powered pump systems market has witnessed rapid expansion, growing from Rs 19.3 billion in Fiscal 2019 to Rs 129.8 billion in Fiscal 2025. The market is projected to reach Rs 300-320 billion by Fiscal 2029, registering a CAGR of approximately 52% between Fiscals 2024 and 2029. This growth has been driven primarily by the PM-KUSUM scheme, under which the installed base stood at 0.85 million pumps as of July 2025 and is expected to scale up to nearly 4.0 million by Fiscal 2029. Additions in Fiscal 2025 alone stood at approximately 0.45 million, exceeding the cumulative installations of 0.33 million recorded between April 2018 and March 2024. State-driven initiatives such as Maharashtras Magel Tyala Saur Krushi Pump Yojana and Madhya Pradeshs Pradhan Mantri Krishak Mitra Surya Yojana are expected to further support this momentum, with the sectors overall market potential estimated at over Rs 2.6 trillion since Fiscal 2019.

According to the MNRE, the rapid expansion of solar installations over the past decade has been instrumental in doubling Indias installed electricity generation capacity. As of June 2026, the countrys installed solar power capacity had reached 162.15 GW.

The markets expansion is being driven by strong government support through subsidy programmes, increasing awareness of sustainable irrigation practices, and the growing need for cost-effective, environmentally friendly agricultural solutions. The transition towards renewable energy is further accelerating the adoption of solar-powered pumping systems across the country.

NEED FOR SOLAR-POWERED PUMP SYSTEMS IN INDIA

India as a country has a large agricultural base with more than 46.1% of its population depending on agriculture for their livelihood, as per Economic Survey 2024-25. In fact, as per the PM-KISAN, the number of farmer beneficiaries reached nearly 118 million. Indian farmers are heavily dependent on erratic monsoons and groundwater extraction for irrigation, both of which face significant challenges. As per government report on PM-KUSUM, as of 2022, 8 million pumps out of approximately 30 million agriculture pumps installed in India were diesel based. Furthermore, the total diesel consumption of these pumps in a year was 5.52 billion litre per annum along with equivalent CO2 emissions of 15.4 million tonnes. The balance 22 million pumps largely relied on grid electricity where challenges such as limited supply of electricity (many regions provided electricity primarily at night forcing farmers to irrigate under unsafe conditions, risking accidents from wildlife and adverse weather) and frequent power cuts (extending up to 12 hours in some regions) impede the irrigation process thereby impacting agricultural productivity. Hence, the reliance on diesel pumps poses economic and environmental challenges, reliance on electricity grids poses operational issues to tackle.

In this context, the solar-powered pump systems industry looks at the robust prospects going ahead as it presents a transformative solution, offering an environmentally sustainable cost effective and reliable alternative to traditional irrigation methods. Some of the incentives a solar-powered pump systems offers are it reduces dependency on diesel and grid electricity, saves costs and increases revenue with multiple crops over the years for farmers and also conserves water. The standalone solar-powered pump systems offer a viable solution for irrigation in remote locations, hilly terrains etc. where grid connectivity is a challenge.

Source: https://mnre.gov.in/en/physical-progress/

POLICY INITIATIVES DRIVING THE SOLAR PUMP MARKET

PM-KUSUM SCHEME

Introduced in 2019, the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme aims to accelerate the adoption of solar energy in agriculture while enabling farmers to generate additional income by becoming energy producers. The scheme is structured around three key components:

COMPONENT A	COMPONENT B	COMPONENT C (IPS+FLS)
Establishes 10 GW of decentralised, grid-connected solar or other renewable energy plants on barren or cultivable land. Power generated is procured by DISCOMs at feed-in tariffs determined by the respective State Electricity Regulatory Commissions (SERCs).	Supports the installation of 1.4 million standalone solar water pumps in off-grid areas Farmers receive assistance to deploy standalone solar pumps with capacities of up to 7.5 HP (and up to 15 HP in special-category states), improving irrigation access in regions with limited grid connectivity.	Promotes the solarisation of 3.5 million existing grid-connected agricultural pumps, through both Individual Pump Solarisation (IPS) and Feeder-Level Solarisation (FLS), reducing dependence on conventional grid electricity while providing a reliable and sustainable source of power for irrigation.

As of 30 June 2026, the PM-KUSUM scheme continued to make steady progress across its three components. Under Component A, 1,726.92 MW had been installed against a sanctioned capacity of 10,000 MW, representing 17.3% achievement. Component B, which covers standalone solar agriculture pumps, recorded the strongest progress, with 11,49,988 pumps installed against a sanctioned target of 13,07,190, translating to 88.0% completion.

Under Component C, solarisation of existing grid-connected agricultural pumps progressed at a more measured pace. Individual Pump Solarisation (IPS) saw 15,822 pumps solarised against a sanctioned target of 55,392, achieving 28.6%, while Feeder-Level Solarisation (FLS) recorded 16,17,058 solarisations against a sanctioned target of 35,36,602, reaching 45.7%. The relatively lower completion rates under Component C reflect the larger scale of sanctioned targets and the longer implementation timelines associated with grid-level and feeder-based solarisation projects, compared with the standalone pump deployment under Component B.

The PM-KUSUM scheme primarily benefited individual farmers, with particular emphasis on supporting micro, small and marginal farmers, along with Farmer Producer Organisations (FPOs), farmer cooperatives and panchayats. By providing financial assistance for the installation of solar-powered pump systems, the scheme promoted the adoption of clean energy in agriculture while advancing sustainable rural development. It also supported state and central governments by encouraging decentralised renewable energy generation and reducing long-term subsidy burdens.

BENEFITS	DESCRIPTION
Lower Energy Costs	Reduces dependence on diesel and grid electricity, lowering irrigation costs.
Improved Irrigation efficiency	Ensures reliable daytime power for efficient and timely irrigation.
Energy Independence	Provides a dependable renewable energy source, reducing reliance on conventional power.
Long-Term Savings	Lower operating and maintenance costs deliver greater lifetime savings.
Reduced Burden on DISCOMs	Lowers subsidy requirements, infrastructure costs and distribution losses while improving power availability.

MAGEL TYALA SAUR KRUSHI PUMP YOJANA

Magel Tyala Saur Krushi Pump Yojana is a Maharashtra state scheme designed to provide farmers with an independent and sustainable irrigation solution through solar-powered agricultural pumps. Under the scheme, farmers can access solar-powered agriculture water pumping systems by paying only 5-10% of the total cost, with the remaining amount subsidized by the State Government. Pump capacities range from 3 to 7.5 HP, depending on the size of the land being irrigated.

The scheme includes a five-year repair guarantee with insurance coverage, giving farmers long-term reliability. By eliminating electricity bills and removing dependence on grid supply, it frees farmers from concerns over load shedding, while ensuring daytime power availability for irrigation when it is needed most.

CHHATTISGARHS SAUR SUJALA YOJANA

Launched in 2016, the Saur Sujala Yojana provides solar-powered pump systems to farmers in Chhattisgarh at subsidised rates, with the objective of increasing agricultural production and conserving groundwater. The scheme offers 3 HP and 5 HP surface and submersible solar-powered pump systems, backed by a 5-year on-site warranty and maintenance support. It is implemented by the Chhattisgarh State Renewable Energy Development Agency (CREDA), with beneficiaries selected by the states agricultural department.

Farmers contribute a portion of the installation cost, ranging from Rs 7,000 to Rs 20,000 depending on pump capacity and caste category, in addition to a processing fee of Rs 1 per watt (Rs 3,000 for a 3 HP/3,000-watt pump and Rs 4,800 for a 5 HP/4,800-watt pump). The scheme primarily benefits small and marginal farmers by lowering their dependence on diesel and grid power for irrigation, while also supporting the states rural economy and sustainable agricultural practices. As of March 2024, more than 0.1 million solar-powered pump systems had been installed under the scheme.

MADHYA PRADESHS PRADHAN MANTRI KRISHAK MITRA SURYA YOJANA

Approved by the Madhya Pradesh government in January 2025, this scheme facilitates the installation of solar pumps for irrigation. A dedicated online portal was launched to enable eligible farmers in the state to submit applications directly, simplifying access to the scheme.

Under the programme, farmers bear 5% of the capital cost for pumps up to 3 HP and 10% for pumps above 3 HP. The remaining cost is covered through a Government of India grant (60%) and an agricultural loan, with the loan component varying from 35% for pumps up to 3 HP and 30% for pumps exceeding 3 HP. By significantly reducing the farmers upfront financial burden, the scheme is designed to ease the cost of electricity for irrigation and expand solar pump adoption among Madhya Pradeshs farming community, complementing the broader push under PM-KUSUM and similar state-level initiatives.

Sources

https://pmkusum.mnre.gov.in/#/landing/read-more

https://www.imarcgroup.com/india-solar-water-pump-market

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2199729&reg=48&lang=2

https://www.mahadiscom.in/solar_MTSKPY/scheme_info.php

GLOBAL SOLAR ROOFTOP SYSTEM MARKET

Rooftop installations play a significant role in the global adoption of solar photovoltaic (PV) systems, accounting for approximately 40% of total solar installations. These systems help ease pressure on distribution grids while enabling both households and businesses to lower electricity costs and reduce carbon emissions.

The global rooftop solar market has expanded rapidly, with the total installed base growing at a CAGR of approximately 24% between 2018 and 2022, rising from 40 GW to 90 GW. Rooftop solars share of overall global PV additions has also climbed steadily, contributing around 45% of the 200 GW of total solar PV installations added globally in 2022, an 18% increase over 2021, which itself had seen a 29% rise over 2020.

This growth has been driven primarily by residential and commercial consumers seeking to generate electricity for self-consumption, reducing reliance on the grid and insulating themselves from power price volatility linked to fossil fuels. Four countries including China, the US, Brazil, and Germany accounted for more than 80% of global rooftop additions in 2022, with China alone contributing 58% of the total.

A COMBINATION OF FACTORS HAS FUELLED THIS EXPANSION WORLDWIDE:

- Falling PV system costs: Between 2010 and 2022, the average installed cost of PV systems declined by more than 80%, driven largely by Chinas continuous innovation and its development of a complete industrial supply chain.

- High retail electricity costs: In markets such as Brazil, Australia, and the US, elevated electricity prices have pushed consumers toward rooftop solar as a means of achieving energy independence.

- New business models: Net billing, rental/lease arrangements, and policies enabling the sale of excess power to third parties or neighbours have made rooftop solar more accessible and economically attractive.

- Government incentives and regulatory support: Countries have implemented targeted policies to accelerate adoption. Chinas Whole-County Rooftop Solar policy partners counties with large PV developers; Brazils net metering framework guarantees tariff eligibility until 2045; the US offered federal tax credits (30% through 2019, tapering to 22% by 2021); Australia supports rooftop PV under 100 kW through its renewable energy target and no-interest loans; and Germany, with a rooftop technical potential of 409 GW, has driven deployment through legislation such as its 1,000 roofs and 100,000 roofs programmes and the Renewable Energy Sources (EEG) Act.

INDIAN SOLAR ROOFTOP SYSTEM MARKET

Indias cumulative rooftop capacity reached 25.7 gigawatt (GW) by March 2026, and installers added 2.7 GW in the first quarter of 2026 alone, a 125 per cent jump over the same quarter a year earlier. Residential systems accounted for 82 per cent of that growth, most of it under the PM Surya Ghar Muft Bijli Yojana, the central subsidy scheme launched in February 2024 that pays households up to Rs 78,000 and targets 1 crore (10 million) homes.

SEGMENTATION

The rooftop segment is categorised by consumer type into three broad groups: residential (average plant size of 1-10 kW, driven by consumer awareness and affordability), commercial and industrial (C&I) (average size 30-1,000 kW, driven by rising electricity costs and the need for energy independence), and government and social institutions (average size 10 kW to over 1,000 kW, driven by cost savings alongside environmental awareness).

BUSINESS MODELS

Two models dominate deployment: the capex model, where the consumer owns the system and bears all upfront costs, and the RESCO (opex) model, where a developer owns the installation and sells power to the consumer at a rate below grid tariff, recovering costs through a long-term power purchase agreement (up to 25 years). Net metering, under which surplus power can be sold to the grid, remains more prevalent than gross metering owing to state-level policies.

STATE CONCENTRATION

Growth has been geographically concentrated. Gujarat, Maharashtra, and Rajasthan together accounted for 56% of the total installed rooftop base as of Q1 Fiscal 2026, up from 37% in Fiscal 2019. Gujarat has led due to high solar irradiance and schemes like the Surya Urja Rooftop Yojana, while Maharashtra benefited from policy clarity, including net metering for all consumers. Kerala has also emerged as a notable performer, tripling its share from 2% in Fiscal 2019 to 7.2% by Q1 Fiscal 2026, aided by its Soura Programme under which the discom acted as a demand aggregator.

KEY TRENDS

Innovative Financing Models	EMI schemes, leasing and flexible financing options are making rooftop solar more affordable and reducing upfront investment.
Growing Commercial & Industrial Adoption	Rising deployment across commercial and industrial facilities is driven by tailored financing, utility-led initiatives and energy cost savings.
Integrated Rooftop Solar Solutions	Bundled solar kits offering complete installation packages are simplifying adoption and improving accessibility for households and small businesses.

KEY GROWTH DRIVERS

Growth of Domestic Solar Manufacturing Expansion of domestic manufacturing for solar modules, inverters and related components is strengthening supply chains, improving equipment availability and supporting the rapid deployment of rooftop solar systems.

Rising Electricity Demand Increasing urbanisation and electricity consumption across residential and commercial sectors are driving demand for rooftop solar as a reliable, decentralised energy solution that reduces pressure on the power grid.

OUTLOOK (FISCAL 2026-2029)

Crisil Intelligence expects 23-28 GW of rooftop capacity additions over this period, about 1.6 times the additions seen in Fiscal 2020-2025. This is split roughly evenly between the residential segment (12-13 GW, driven by PM Surya Ghar Yojna) and the C&I segment (12-13 GW, driven by net/gross metering economics). This is expected to translate into an investment of Rs 0.85-0.95 trillion over Fiscals 2026-2029.

CHALLENGES

Despite this momentum, the sector faces structural hurdles: higher per-MW costs than utility-scale projects (rooftop projects are typically 1.1-1.2 times more expensive), weak DISCOM incentives to promote rooftop connections given their revenue dependence on industrial consumers, inconsistent net metering enforcement in some states, weak consumer creditworthiness, and enforcement gaps around long-term PPAs and lease agreements, particularly under the RESCO model, where the absence of long-term rooftop agreements can deter developer participation.

POLICY INITIATIVES DRIVING THE SOLAR ROOFTOP SYSTEMS MARKET

PM SURYA GHAR: MUFT BIJLI YOJANA

Launched in February 2024, the PM Surya Ghar: Muft Bijli Yojana is the worlds largest residential rooftop solar programme, aimed at accelerating rooftop solar adoption across Indian households. The scheme provides subsidies for solar rooftop systems, based on household electricity consumption. The scheme also offers collateral-free loans of up to Rs 2 lakh at a subsidised interest rate of 6.75% through 12 Public Sector Banks, reducing the upfront cost of installation.

RESIDENTIAL ROOFTOP SUBSIDIES

As of 24 July 2026, the programme had achieved over 40.07 lakh rooftop solar installations, benefiting approximately 48.22 lakh households, against 76.47 lakh applications received, with a cumulative installed capacity of approximately 14.07 GW and Rs 27,323.55 crore in Central Financial Assistance disbursed (Source: Lok Sabha/Rajya Sabha replies, Ministry of New and Renewable Energy, July 2026). The Government has set a target of 1 crore solar-powered households by 2026–27, with the scheme expected to add 30 GW of residential rooftop solar capacity, generate 1,000 billion units of electricity, reduce 720 million tonnes of CO2 emissions over the systems lifetime, and create approximately 17 lakh direct jobs across manufacturing, installation and allied services. Several states have complemented the initiative through ambitious deployment targets. Maharashtra, one of the schemes leading performers, has approved the installation of 20 lakh rooftop solar systems under the PM Surya Ghar Yojana, further strengthening residential rooftop solar adoption in the state.

Solar rooftop systems offer significant benefits to both consumers and the power distribution ecosystem. For consumers, they reduce upfront ownership costs through government subsidies, lower electricity bills, provide long-term savings and greater energy independence by ensuring reliable daytime power. At the same time, widespread rooftop solar adoption supports environmental sustainability by reducing carbon emissions, lowers the need for grid expansion and transmission infrastructure, and helps DISCOMs reduce subsidy outflows and improve operational efficiency, contributing to a more resilient and sustainable energy ecosystem.

1 crore	Target Households (2026–27)
30 GW	Projected Capacity Addition
1,000 Billion Units	Projected Electricity Generation
720 Million Tonnes (Over 25 Years)	Estimated CO2 Emission Reduction
17 Lakh Direct Jobs	Estimated Employment Generation

Source

https://www.pib.gov.in/PressReleaseframePage.aspx?PRID=2111066&reg=3&lang=2

https://www.imarcgroup.com/india-solar-rooftop-market

https://www.downtoearth.org.in/energy/indias-rooftop-solar-boom-is-real-and-deeply-lopsided-analysis

Company Overview

GK Energy Limited is one of Indias leading renewable energy infrastructure companies, with a focus on solar-powered agricultural pumping systems, rooftop solar systems, and distributed clean energy solutions.

Since its incorporation in 2008, the Company has developed a technology-driven, low-capex operating model, powered by flexible sourcing strategies with a strong OEM/ODM manufacturing ecosystem, decentralised logistics capabilities, and one of the sectors largest field execution networks. This operating architecture enables the Company to deploy renewable energy systems at scale across rural and distributed markets, without the capital intensity typically associated with manufacturing infrastructure.

As of March 2026, the Company has installed over 140,000 renewable energy systems and commissioned in excess of 617 MW of capacity across the country, with an operational presence spanning more than 7,500 villages. This scale of execution is supported by dedicated warehousing and logistics infrastructure, together with an extensive network of installation and commissioning partners operating across multiple states.

The Companys core business encompasses solar-powered agricultural pumping systems, rooftop solar systems, distributed renewable infrastructure, and other emerging clean energy segments, in line with Indias long-term energy transition and sustainability objectives.

GK Energy is empanelled as a vendor under the Ministry of New and Renewable Energy in Maharashtra, Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh. Together, these states account for the majority of pump systems approved under PM-KUSUM, and the Company is also empanelled under various state schemes, including Magel Tyala Saur Krushi Pump Yojana.

THE COMPANYS BUSINESS SPANS:

Solar-powered agriculture water pump systems:

End-to-end single source solution for the survey, design, supply, assemble and installation, testing, commissioning and maintenance of "GK Energy" solar-powered pump systems

Solar Rooftops: Design, supply, assemble and installation, testing, commissioning and maintenance of "GK Energy" solar rooftops primary to retail residential customers essentially in villages and remote areas

Trading activities: Sale of third-party photovoltaic cells

Building on its execution track record, GK Energy continues to expand its business across new markets, products and geographies.

Review of Operations

FY 2025–26 marked a year of strong operational expansion for GK Energy. During the year, the Company deployed 61,085 solar systems, representing a 34% increase over FY 2024–25, and commissioned 276 MW of renewable energy capacity, compared with 184 MW in the previous year. This increased cumulative installations to over 140,000 solar systems and cumulative installed capacity to more than 617 MW, spanning over 7,500 villages across India. As of 31 March 2026, the order book stood at (including orders received upto 13 May 2026) Rs 710 crore, providing healthy revenue visibility.

The Company maintained a disciplined approach to working capital management, reflecting efficient procurement and supply chain practices under its low-capex operating model. Debtor days were aligned with the collection cycle associated with government-backed projects. During the year, GK Energy further strengthened its presence by expanding into Madhya Pradesh, complementing its established operations in Maharashtra, Haryana, Rajasthan and Uttar Pradesh. The Company also entered the residential rooftop solar segment under the PM Surya Ghar Yojana, while continuing to consolidate its leadership in the solar-powered agricultural pump systems market.

STANDALONE PERFORMANCE

REVENUE (Rs MN)

FY 2025	10,948
FY 2026	15,325
YOY CHANGE +39.98%

SYSTEMS INSTALLED

FY 2025	45,655
FY 2026	61,085
YOY CHANGE +34.12%

EBITDA (Rs MN)

FY 2025	2,040.46
FY 2026	3,131.85
YOY CHANGE +53.49%

EBITDA MARGIN (%)

FY 2025	18.64%
FY 2026	20.44%
YOY CHANGE +1.80%

PAT (Rs MN)

FY 2025	1,332.23
FY 2026	2,012.73
YOY CHANGE +51.08%

PAT MARGIN (%)

FY 2025	12.17%
FY 2026	13.13%
YOY CHANGE +0.96%

NET WORKING CAPITAL DAYS

FY 2025	90
FY 2026	112

DEBTORS DAYS

FY 2025	120
FY 2026	140

INVENTORY DAYS

FY 2025	31
FY 2026	21

CREDITORS DAYS

FY 2025	61
FY 2026	49

TOTAL BORROWINGS (Rs MN)

FY 2025	2,177.89
FY 2026	2,026.62

TOTAL CASH (Rs MN)

FY 2025	627.23
FY 2026	4,432.77

SURPLUS CASH / NET DEBT (Rs MN)

FY 2025	- 1,550.66
FY 2026	2406.15

Key Financial Ratios

Particulars	FY 2026	FY 2025	% Change	Explanation for Change (25% or more)
Debtors Turnover Ratio	3.24	4.27	-24.20	NA
Inventory Turnover Ratio	16.98	17.65	-3.79	NA
Interest Coverage Ratio	7.92	9.13	-13.25	NA
Current Ratio	2.95	1.54	91.46	Increase in current assets
Debt-Equity Ratio	0.23	1.04	-78.00	Increase in Equity due to IPO
Operating Profit Margin (%)	22.75	20.78	9.48	NA
Net Profit Margin (%)	13.13	12.17	7.93	NA
Return on Net Worth (%)	22.75	63.71	-64.29	Increase in Shareholders Equity post Public Issue of Shares

COMPANY OUTLOOK

Looking ahead, your Company remains focused on strengthening its position as one of Indias leading decentralized renewable energy infrastructure providers, building on the operational and financial momentum achieved in FY 2025-26.

Your Company intends to consolidate its leadership in the solar-powered agricultural pump systems business by deepening its presence in existing states of operation and extending empanelment into new geographies, thereby broadening its addressable market under the PM-KUSUM Scheme and allied state government programmes.

In parallel, your Company will continue to scale its rooftop solar business, leveraging the opportunity presented by the PM Surya Ghar Yojana to diversify its revenue base beyond agricultural pumping and establish a meaningful presence in the residential and commercial rooftop solar segments.

SWOT ANALYSIS

Strengths

Robust Order Book The Companys strong pipeline of orders reflects sustained demand for solar-powered agricultural water pump systems, supported by a large and growing addressable market across rural India.

Decentralized Infrastructure A localized workforce and decentralized infrastructure enable the Company to operate efficiently across a broad geographic footprint spanning five states, without the constraints of a centralized execution model.

End-to-End Customer Support Comprehensive support across the customer journey, from installation to after-sales service, ensures a seamless experience for farmers. This drives customer satisfaction, generating word-of-mouth publicity and reducing dependence on traditional marketing.

Proven Financial Track Record A consistent history of profitable performance, paired with a strong growth trajectory, reflects the scalability and financial discipline of the Companys execution-led model.

Experienced Leadership Senior management brings deep sector expertise, underpinning the Companys execution capability and strategic decision-making.

Positioning In The Rooftop Solar Existing execution capabilities and brand presence position the Company well to capture emerging opportunities in the fast-growing rooftop solar market.

Weaknesses

Geographic Concentration The Companys operations remain concentrated in a limited number of states, Maharashtra, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, making it sensitive to region-specific economic conditions.

Supplier Dependence The Company relies on a limited number of third-party suppliers for key components and materials, creating exposure to supply-side disruptions.

Opportunities

Geographic Replication The Companys proven execution model in Maharashtra can be replicated across the high-potential states of Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh, expanding its share of national demand.

Revenue Diversification Expanding into rooftop solar systems broadens the Companys revenue base, reducing reliance on a single product segment.

Policy Tailwinds A favourable policy environment, with continued government focus on rural solar irrigation and decarbonisation, provides sustained support for the Companys core business.

Underserved Market A large share of Indian farmers still lack access to reliable irrigation, representing substantial long-term growth potential for solar-powered pumping solutions.

Vendor Ecosystem Development Building a dedicated vendor ecosystem for solar pump and rooftop system components, through organic and inorganic means, would enhance execution reliability and cost efficiency.

Threats

Demand Sensitivity Any decline in demand for the solar-powered agricultural water pump systems could materially affect the Companys business, financial condition, and cash flows.

Policy Dependence Continued reliance on the PM-KUSUM or similar schemes means that non-extension or replacement by similar government schemes could materially impact the Companys operations and financial performance.

Regional Economic Risk A sustained economic downturn in any of the Companys core operating states, particularly Maharashtra, could reduce demand for solar-powered pump systems.

Supplier Performance Risk A failure by a key third-party supplier to perform could disrupt project execution and adversely affect financial performance.

Input Cost Volatility Significant increases in the cost of key components could adversely impact the Companys margins and overall financial condition.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Companys employees are integral to the Companys continued growth and operational excellence. The Companys workforce comprises over 1,300 personnel, of which approximately 200 are skilled professionals engaged directly by the Company, with the remainder comprising dedicated installation and commissioning partners engaged across the Companys business locations. The Company follows a local hiring approach wherever possible, creating employment opportunities, enhancing skills and contributing to the economic development of the communities in which it operates. It remains committed to strengthening employee capabilities through regular training programmes, workshops and seminars focused on technical competencies, company policies, standard operating procedures, behavioural development and business etiquette.

SAFETY, HEALTH AND ENVIRONMENT

The Company operates in accordance with stringent and continually evolving occupational safety, health, and environmental (SHE) regulations applicable across the jurisdictions in which it conducts business. Its SHE framework is regularly reviewed and updated to ensure compliance with applicable statutory requirements and industry best practices. Comprehensive safety protocols and operational standards are implemented across project sites to provide a safe and healthy working environment for employees, contractors, visitors and customers.

Through the deployment of zero-emission solar-powered pump systems as an alternative to conventional diesel-powered pumps, the Company continues to support the transition towards clean energy. These solutions contribute to reducing greenhouse gas emissions, improving energy sustainability and advancing climate change mitigation efforts.

RISK MANAGEMENT

Progressive organisations must continually pursue new growth opportunities and strategic initiatives, which inherently involve a degree of risk. At the same time, the increasingly dynamic and evolving external business environment presents additional challenges that may affect existing operations and long-term business performance.

Risk Management Framework

The Company has established a structured enterprise-wide risk management framework to safeguard stakeholder value by proactively identifying, assessing and mitigating risks, while enabling the pursuit of strategic opportunities. Risk management is embedded across all levels of the organisation, ensuring that effective risk oversight forms an integral part of business decision-making and day-to-day operations.

The framework focuses on the systematic identification and classification of internal and external risks, evaluation of their potential impact, implementation of appropriate mitigation measures, and regular reporting of key risks, mitigation plans and risk appetite to the Risk Management Committee and other relevant stakeholders. The Board periodically reviews the Risk Management Policy to ensure its continued alignment with the Companys strategic objectives, governance framework and applicable regulatory requirements.

KEY RISKS AND MITIGATION STRATEGIES

RISK	DESCRIPTION	MITIGATION
Policy and Scheme Dependence	The Companys revenue is heavily dependent on the PM-KUSUM Scheme and similar state government programmes. Non-extension, modification, or discontinuation of these schemes could materially impact order inflows.	Continued engagement with central and state governments, empanelment across multiple state schemes (Magel Tyala Saur Krushi Pump Yojana, Saur Sujala Yojana, and others), and diversification into rooftop solar and other RE products to reduce dependence on any single scheme.
Customer Concentration	A significant majority of revenue is derived through a small number of government nodal and implementing agencies, exposing the Company to concentration risk.	Expansion into new states and geographies, entry into rooftop solar for residential and commercial customers, and growth of direct sales to other customers.
Geographic Concentration	Operations remain concentrated in a limited number of states, with meaningful reliance on Maharashtra. Any regional economic or policy disruption could affect demand.	Active empanelment and expansion into Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh, replicating the execution model proven in Maharashtra to diversify the geographic revenue base.
Working Capital Intensity	The business is working capital intensive, given extended receivable cycles typical of government-linked project payments.	Disciplined working capital management, supported by IPO proceeds strengthening liquidity, and continued focus on optimising debtor, creditor and inventory cycles.
Supplier Concentration and Input Cost Volatility	The Company depends on a limited number of third-party suppliers for key components such as solar panels, pumps and controllers, exposing it to supply disruption and price volatility.	Engagement with a diversified network of OEM/ODM partners, long-term supplier relationships with advance booking arrangements, and planned backward integration into solar panel manufacturing to reduce input cost exposure.
Execution and Project Delivery Risk	Timely execution of large-scale orders depends on coordinated logistics, installation capacity, and component availability across geographically dispersed sites.	A decentralized infrastructure model comprising regional warehouses, an owned logistics fleet, and a large network of trained installation and commissioning partners to ensure reliable, timely project delivery.
Competitive Intensity	The Company faces competition from both organised and unorganised players in the solar pump industry, which could pressure margins and market share.	Differentiation through an low-capex technology-defined execution model, an established brand built on rural trust, and a comprehensive end-to-end service offering that strengthens customer retention.

ADEQUACY OF INTERNAL CONTROL SYSTEMS

The Company has established a robust internal control framework to ensure the accuracy and reliability of financial reporting, operational effectiveness, and compliance with applicable laws and regulations. This framework is supported by a multi-layered governance structure that provides ongoing oversight and direction across key business processes.

Internal and external audit functions regularly evaluate operational and financial controls to identify potential gaps, recommend corrective actions, and assess compliance with statutory and regulatory requirements. Audit observations and recommendations are reported to senior management and the Audit Committee of the Board, which oversees the timely implementation of remedial measures.

Change in Accounting Treatment

There has been no change in accounting treatment during the year under review that differs from the applicable Accounting Standards prescribed under the Companies Act, 2013, and the rules made thereunder.

Cautionary Statement

The Management Discussion and Analysis contains ‘forward-looking statements, identified by words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘intends, ‘projects, ‘estimates and so on within the meaning of applicable securities laws and regulations concerning the companys future business prospects and business profitability. All statements that address expectations or projections about the future, the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. All these prospects are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, competition (both domestic and international), economic growth in India and the target countries worldwide, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, ability to manage international operations, Government policies and actions with respect to investments, fiscal deficits, regulations, interest and other fiscal costs generally prevailing in the economy etc. Past performance may not be indicative of future performance. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future nor shall the Company update any forward-looking statements made from time to time by or on its behalf.