GP Eco Solutions India Ltd Management Discussions

Economic Overview Global Economy1

The global economy stands at a critical juncture. In CY 2024, it recorded a growth rate of 3.3%, reflecting a moderate pace of recovery amid persistent geopolitical uncertainties and tightening financial conditions. The interplay of policy shifts and geopolitical turmoil presented challenges, major economies adapted well, contributing to overall economic stability and moderate economic progress.

While advanced economies expanded by 1.8%, Emerging Market and Developing Economies (EMDEs) posted a growth rate of 4.3%, driven by strong momentum in Asia and Africa. The US economy achieved a growth rate of 2.8% in CY 2024, largely due to robust domestic demand. Conversely, domestic demand in the Euro area remained subdued, as weak consumer sentiment and heightened uncertainty dampened consumption growth.

Global inflation demonstrated a declining trend, with headline inflation easing to 5.7% in CY 2024, indicating early signs of price stabilisation.2 Financial conditions broadly eased as major central banks shifted towards a more accommodative monetary policy stance by mid-2024. However, inflationary pressures varied across countries, with service inflation remaining persistent in many major advanced economies. Global trade volumes also increase despite heightened uncertainties arising from US tariff hikes on key imports.

Outlook3

The global economic growth is projected to moderate to 2.8% in CY 2025 and slightly improve to 3.0% in CY 2026. EMDEs are anticipated to lead this growth, with forecasts of 3.7% and 3.9% respectively, supported by domestic demand, sustained investment momentum and policy efforts aimed at economic stability. In contrast, advanced economies are likely to witness subdued growth, with expected rates of 1.4% in 2025 and 1.5% in 2026, primarily due to tight monetary policies and shifting trade dynamics.

Global inflation is projected to decline to 4.3% in 2025 and further to 3.6% in 2026, driven by stabilising commodity prices and the easing of bottlenecks in global supply chains. Further, advanced economies are expected to achieve their inflation more quickly than emerging markets, owing to more effective monetary policy responses.

Indian Economy

India emerged as the worlds fourth-largest economy during the year, surpassing the $4 trillion GDP milestone and overtaking Japan.4 In FY 2024-25, the economy grew by 6.5%, driven by targeted government initiatives. With the government making significant investment in building and improving infrastructure, it had a strong multiplier effect on the economy. Further, the government has made an allocation of Rs. 11.21 lakh crore, focusing on rural connectivity and sustained economic momentum.5

Investment activity experienced significant acceleration, propelled by rising manufacturing exports and heightened capital goods imports. Additionally, the launch of the Production Linked Investment Scheme 2.0 bolstered domestic industries and attracted foreign direct investment (FDI).

Macroeconomic stability strengthened as inflation eased from 5.4% in FY 2024 to 4.6% in FY 2025. Further, India has made significant progress in strengthening its energy sector in recent years, successfully balancing the twin goals of meeting rising electricity demand and promoting sustainability. The nations renewable energy sector also set new records, with 29.52 GW of new capacity added, primarily from solar installations, bringing the total installed capacity to 220.10 GW. These developments marked notable progress towards the national target of 500 GW of non-fossil fuel capacity by 2030, in line with the countrys Panchamrit climate goals.6

Outlook

The outlook for FY 2025-26 remains optimistic, with GDP growth projected at 6.5%. Continued policy support, including tax reforms and the extension of income tax exemptions, is expected to enhance disposable income levels and spur consumption. In addition, the Reserve Bank of Indias reduction in the repo rate is by 50 basis points to 5.50% is aimed at increasing liquidity, encouraging credit growth and improving overall market sentiment.7

Over the longer term, Indias drive for bilateral trade deals and sustained rollout of the PLI scheme are predicted to further consolidate its position in global manufacturing. These developments align with Indias broader ambition to achieve developed nation status by 2047.

Industry Overview Global Solar PV Market8

The growth of global solar photovoltaic (PV) market is driven by government incentives and policies, such as tax credits, subsidies and renewable energy mandates. According to the International Renewable Energy Agency (IRENA), over 452 GW of new solar PV capacity was installed worldwide during CY 2024, accounting for more than three-quarters of all new renewable power additions and increasing the global total renewable share to 46% of installed power capacity.

This expansion can be primarily attributed to strong policy support and ongoing investment in major markets such as China, the United States and the European Union, which together represented over 80% of newly added capacity. However, regional disparities in adoption persist, and while the pace of installation is impressive, further acceleration is necessary to meet the global target of tripling installed renewable power capacity to 11 TW by 2030.

As demand for clean energy accelerates and technology costs continue to decline, the outlook for the global solar PV market remains robust. The market is predicted to reach around USD 451.23 billion by 2034, expanding at a CAGR of 9.64% between 2025 and 2034.

Indian Solar Power Industry9

Indias solar power capacity surpassed 100 GW in January 2025, reaching a total capacity of 105,646 MW by the end of March. This milestone reflects a remarkable growth trajectory, with installed capacity rising from 2.82 GW in 2014 to 100 GW in 2025. Solar energy continues to play a pivotal role in the countrys renewable energy transition, supported by ambitious government initiatives aimed at achieving 500 GW of non-fossil fuel capacity by 2030.

Key programmes such as the PM-KUSUM scheme have accelerated solar adoption in the agricultural sector, while the Production Linked Incentive (PLI) scheme is promoting domestic manufacturing of high-efficiency solar PV modules. Further, initiatives such as solar panel installations, Solar Park Scheme and Green Energy Corridor are facilitating large-scale deployment and seamless grid integration of solar power.

With increased emphasis on rooftop solar and urban adoption through the Smart Cities mission, India is steadily advancing toward a sustainable, solar-powered future. The solar industry is expected to play a pivotal role in achieving Indias goal of net zero emissions by 2070.

Solar Power Market in India Dynamic

Indias solar power market is undergoing a significant transformation, supported by a dynamic policy environment and a maturing investment landscape. The acceleration of solar investments, particularly in utility-scale and rooftop segments, has been catalysed by competitive panel pricing, improved access to financing and rising electricity demand.

India has distinguished itself among developing economies, with a marked rise in both domestic and international funding for solar projects. As distribution companies strengthens their financial health along with robust policy initiatives, this has boosted investor confidence.

Solar Power Market Opportunities and Challenges Opportunities

Global Policy and Subsidy Support - Growing government incentives such as tax credits, clean energy auctions, net-metering and renewable portfolio standards boost investment confidence.

Energy Storage Synergies - Advances and cost declines in battery and storage technologies enable attractive solar-plus-storage offerings, unlocking commercial and residential use cases.

Emerging Market Expansion - Solar deployment in Asia- Pacific, Africa and Latin America remains strong, driven by electrification needs and climate goals.

Challenges

Supply chain disruptions - Fluctuations in the supply of polysilicon, wafers and inverters, primarily due to geopolitical issues or production constraints, can delay project execution timelines.

Grid Integration and Stability - Higher solar penetration is placing growing demands on grid infrastructure, facilitating investments in grid management, flexibility and transmission.

Land and Environmental Conflicts - Large-scale utility projects face land-use constraints, permitting delays and competing land needs.

Workforce and Skill Gaps - The growing demand for skilled labour, including engineers, installers and technicians, is outpacing supply, potentially leading to bottlenecks.

Company Overview

GP Eco Solutions Limited has transitioned from a pure-play distributor to a comprehensive provider of integrated solar energy solutions. While it continues to serve as an authorised distributor of solar inverters and panels, the Company has expanded its capabilities to include the manufacturing of solar inverters and advanced energy storage systems, catering to residential, commercial, industrial and utility-scale segments.

The Company offers a wide range of value-added services such as turnkey Engineering, Procurement & Construction (EPC), Project Management Consultancy (PMC), developer partnerships and Energy-as-a-Service (EaaS) models to address diverse energy requirements. Additionally, GP Eco Solutions is emerging as a key player in lithium-based smart fuel technology, with a strong focus on manufacturing innovative energy storage systems.

GP Eco Solutions markets hybrid solar inverters and lithium ferro phosphate (LFP) batteries under its own brand, INVERGY, which operates on an OEM manufacturing model supported by a proprietary quality and reliability protocol. INVERGY also manages its own supply chain for seamless operations and holds ISO 9001:2015 certification for Quality Management Systems.

With a strong presence in North India and expansion plans underway for South India and international markets, the Company maintains a vast network of solar system integrators, channel partners and installers.

Key Financial Highlights

(Rs. in Lakhs))

Particulars	FY 2024-2025	FY 2023-2024	% Change
Revenue from Operation	24,009.38	13,633.75	76
EBITDA	1645.95	1192.25	38
PBT	1370.29	959.91	43
PAT	1024.71	702.73	46

Discussion on financial performance with respect to operational performance

Revenue from Operations

Revenue from operations increased significantly from H13,633.75 lakhs in FY 2023-24 to H24,009.38 lakhs in FY 2024-25, representing a growth of 76%. This improvement was primarily driven by higher sales of solar inverters.

EBITDA

EBITDA rose from H1,192.25 lakhs in FY 2023-24 to H1,645.95 lakhs in FY 2024-25, reflecting a growth of 38%. The increase was largely attributable to higher sales turnover.

Profit Before Tax (PBT)

PBT improved from H959.91 lakhs in FY 2023-24 to H1,370.29 lakhs in FY 2024-25, an increase of 43%, supported by the overall growth in sales.

Profit After Tax (PAT)

PAT increased from H702.73 lakhs in FY 2023-24 to H1,024.71 lakhs in FY 2024-25, marking a growth of 46%. The strong performance was driven by higher sales volumes.

Segment-wise or product-wise performance

The Company has achieved a recorded total sale of H241.05 crore. The category-wise breakdown is as follows

Product	Sales (J crore)	% Change
Solar Inverters	140.21	58.16%
Solar Modules	78.26	32.47%
Other	22.58	9.37%

During the current financial year, Sungrow Inverters is the leading product, contributing significantly to the overall growth in the solar inverter segment. Out of the total solar inverter sales of H140.21 crore, Sungrow Inverters accounted for H115.80 crore, representing approximately 82.59% of the inverter segment revenue as compared to 53.08% during the last financial year 2023-24.

This reflects a strong growth trajectory, as compared to the previous financial year, where Sungrow Inverter sales stood at H60.48 crore. The year-on-year growth of H55.32 crore, or approximately 91.46%, underscores the increasing market acceptance and demand for Sungrows reliable and efficient inverter solutions.

Financial Ratio

Particulars	FY 24-25	FY 23-24	% Change	Reasons
				Details of significant changes (i.e. change of 25% or more as compared to the immediately previous Financial Year) in key financial ratios
Debtors Turnover (in times)	5.12	6.79	1.00	Decrease due to increase in sale
Inventory Turnover (in times)	18.66	10.29	81.27	Due to increase in inventory
Interest Coverage Ratio (in times)	6.62	5.16	28.00	Due to Repayment of loan and Increase in profit
Current Ratio (in times)	1.12	1.61	-29.99	Due to decrease in current liability
Debt Equity Ratio (in times)	0.55	0.67	-16.84	Due to increase in debt of the company
Operating Profit Margin (%)	0.06	0.07	-19.00	Due to increase in operating expense.
Net Profit Margin (%)	4.27	5.15	-17.20	Due to increase in Net profit
Return on Net Worth (%)	25.97	48.23	-46.15	Due to increase in Capital Employed

Way Forward

The Company is strategically positioned to reinforce its leadership in the renewable energy sector by implementing an integrated strategy centred on market growth, capacity augmentation and improved operational efficiency. It is actively scaling its presence across Southern India and international markets by forging regional partnerships and offering personalised solutions to meet diverse environmental and regulatory needs.

Simultaneously, the Company is strengthening its warehousing infrastructure to ensure faster delivery, effective inventory management and improved regional support. A robust investment in manufacturing capacity, especially for solar inverters, aligns with the rising demand for sustainable energy technologies.

Furthermore, the Company is advancing its sustainability agenda through the development of carbon credit policies and energy-efficient practices, including the use of locally sourced equipment to reduce emissions. On the customer front, the Company is innovating through the introduction of Energy- as-a-Service (EaaS) models, delivering comprehensive, customised energy management solutions.

GP Eco Solutions also ensures to empower its employees through targeted skill development, performance incentives and a collaborative work culture that aligns individual growth with organisational objectives. These initiatives collectively position the Company to drive long-term value, deliver operational excellence and contribute meaningfully to a cleaner energy future.

Human Resources

The Company remains committed to cultivating a vibrant work environment focused on collaboration, integrity, diversity and innovation. By promoting a culture of continuous learning, the Company ensures professional development and inclusivity.

GP Eco Solutions places significant emphasis on employee engagement, well-being and recognition, resulting in high retention rates and improved employee satisfaction. Its recruitment strategies have been refined over the years to attract top industry talent and ensure compliance with the highest standards of ethics, safety and diversity. As a result of these concerted efforts, the Company has built a dynamic, skilled and motivated team, adapting to market dynamics and 41 Employees in Group Company synergising innovation and performance to drive growth.

Internal Control and System

The Company has established and maintains appropriate internal control systems and procedures that encompass all financial and operational aspects. The Company believes that a strong internal control framework is a fundamental element of good corporate governance. It continuously works to improve the systems ability to prevent unauthorised use or losses. The Audit Committee plays a supervisory role over all internal operational matters and provides guidance on necessary corrective measures.

Cautionary Statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.