The Management of Insolation Energy Limited presents the Management Discussion and Analysis Report covering the operational and financial performance of the company for the year 2025-26.
GLOBAL ECONOMY
Geopolitical risks intensified during the year, as the global landscape became increasingly shaped by deepening geoeconomic fragmentation and a gradual retreat from multilateral cooperation. The outbreak of conflict in the Middle East in February 2026 introduced a significant downside risk to global growth, exerting pressure through higher crude oil and commodity prices, elevated inflation expectations, rising logistics costs, and tighter financial conditions. These factors partially offset the otherwise improving momentum in global economic activity.
Despite these challenges, the global economy demonstrated notable resilience. Strong investment in technology-driven sectors, supportive fiscal and monetary policies, and the depreciation of the US dollar helped sustain global GDP growth at 3.4% in 2025. Absent the Middle East conflict, growth projections for 2026 would likely have been revised upward. However, the disruptions arising from the conflict resulted in a downward revision of 0.2 percentage points to the global growth outlook.
According to the baseline scenario of the International Monetary Fund (IMF), which assumes that the conflict remains contained, global growth is projected at 3.1% in 2026 and 3.2% in 2027—both below the historical average of 3.7% recorded during the period 2000-2019. Global headline inflation is expected to increase to 4.4% in 2026 before moderating to 3.7% in 2027, driven primarily by higher energy prices and supply-chain disruptions.
The economic impact of these developments is expected to be uneven across regions.
Emerging market and developing economies (EMDEs) have experienced a downward revision of 0.3 percentage points in growth projections, while the outlook for advanced economies remains broadly unchanged. Commodity-importing EMDEs, particularly those with existing macroeconomic vulnerabilities, are likely to face the greatest challenges.
Downside risks continue to be substantial. Under an adverse scenario characterized by a larger and more sustained increase in energy prices, global growth could slow to 2.5% while inflation could rise to 5.4%. In a more severe scenario involving significant damage to critical energy infrastructure, global growth could decline to approximately 2.0%, with inflation exceeding 6% by 2027. In such a scenario, the economic impact on EMDEs is expected to be nearly twice as severe as that on advanced economies.
Against this backdrop, policymakers must prioritize preserving price and macroeconomic stability, strengthening financial sector resilience, and accelerating structural reforms. Enhancing economic adaptability, maintaining credible policy frameworks, and reinforcing international cooperation will be critical to navigating an increasingly complex and uncertain global environment.
Although geopolitical uncertainties and elevated commodity prices created volatility across global supply chains, Indias strong policy support for renewable energy, increasing localisation of manufacturing, and sustained domestic demand enabled the Company to maintain operational resilience. The Companys continued focus on technology, backward integration and domestic manufacturing helped mitigate external risks while strengthening its competitive position.
World GDP Growth - Actuals and Projections (%)
| Category | 2025 (Estimate) | 2026 (Projections) | 2027 (Projection) |
| Global Economy | 3.4 | 3.1 | 3.2 |
| Advanced Economies | 1.9 | 1.8 | 1.7 |
| Emerging Market and Developing Economies | 4.4 | 3.9 | 4.2 |
P - Projection
INDIA ECONOMY
India continued to be the worlds fastest-growing major economy in financial year 2026, demonstrating remarkable resilience amid heightened global uncertainties and external headwinds, including the impact of higher US tariffs introduced in April 2025. Economic growth remained firmly anchored in robust domestic demand, with private consumption and fixed investment serving as the primary drivers of expansion.
According to the provisional estimates for financial year 2026, Indias real GDP grew by 7.6% compared with 7.1% in financial year 2025. This strong performance was largely driven by domestic economic activity, particularly sustained growth in private consumption and capital formation. Both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) recorded growth rates exceeding 7.5% during the year, reflecting healthy consumer confidence and continued investment momentum.
From a sectoral perspective, growth was broad-based, with the secondary and tertiary sectors emerging as key contributors. At constant prices, these sectors are estimated to have expanded by 8.8% and 9.3%, respectively, in financial year 2026. Manufacturing remained a significant growth engine, recording an estimated real growth rate of 10.7%, while the trade, hotels, transport, communication, broadcasting, and storage-related services segment is estimated to have grown by 11.0%, underscoring the strength of both industrial and service-sector activity.
As India advances towards its vision of becoming a developed nation under the Viksit Bharat 2047 initiative, coinciding with the centenary of its independence, it continues to build on a strong foundation of economic growth, structural reforms, and social progress. Supported by resilient domestic demand, moderating inflation, and improving labour market conditions, the country remains well-positioned to sustain its growth trajectory and achieve its long-term development aspirations by 2047.
Continued government emphasis on infrastructure development, manufacturing under Make in India, and renewable energy expansion created a favourable environment for domestic solar manufacturers.
MONETARY POLICY
At its June 2026 meeting, the Reserve Bank of India Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25% and retained its neutral monetary policy stance. The Committee underscored the growing risks arising from the prolonged conflict in West Asia, elevated energy prices, supply-chain disruptions, and weather-related uncertainties, all of which could weigh on the economic outlook.
While consumer price inflation (CPI) remains broadly contained, the RBI expects inflationary pressures to increase moderately in the coming months, driven by higher fuel prices and supply-side constraints. Reflecting these evolving risks, the RBI revised its financial year 27 real GDP growth forecast downward to 6.6% from 6.9% projected at the April 2026 MPC meeting. At the same time, it raised its CPI inflation projection by 50 basis points to 5.1% for financial year 27.
Fuel prices have emerged as a key source of inflationary pressure, with petrol and diesel prices increasing cumulatively by 7.4% and 8.4% respectively, since May 2026. According to RBI estimates, these increases are expected to directly contribute approximately 36 basis points to headline inflation, with additional indirect effects likely to materialise through higher transportation and logistics costs.
The RBI also highlighted weather-related risks as an important domestic concern. A potentially deficient south-west monsoon, coupled with the possibility of El Nino conditions, could adversely affect agricultural output and food prices, posing further downside risks to growth and upside risks to inflation.
(Source: Monetary Policy Statement, 2026-27 Resolution of the Monetary Policy Committee)
Chart 1: Quarterly Projection of Real GDP Growth (y-o-y)
[Bar chart showing GDP growth projections from Q1 2023-24 to Q4 2026-27 with confidence intervals at 50%, 70%, and 90%]
CI - Confidence Interval
OUTLOOK
Indias medium-term growth outlook remains strong, with real GDP expected to expand at around 7% in financial year 2027. The Reserve Bank of India projects growth at 6.6%, while the Economic Survey of India estimates a range of 6.8% - 7.2%, reflecting continued confidence in the resilience and underlying strength of the economy.
The growth trajectory is expected to be supported by several favourable domestic factors, including sustained public capital expenditure, improving private sector investment sentiment, and tax rationalisation measures that are broadening the urban consumption base. In addition, healthier balance sheets across households, corporates, and the banking sector, along with stable financial conditions and moderating inflation, are likely to provide a strong foundation for sustained economic expansion.
Going forward, domestic demand—led by consumption and investment—is expected to remain the primary driver of growth. At the same time, external risks will continue to require close monitoring. Geopolitical uncertainties, trade disruptions, supply chain fragmentation, volatility in energy prices, and fluctuations in global capital flows may create periodic macroeconomic headwinds.
Despite these challenges, India remains well positioned to sustain its growth momentum. Continued policy support, infrastructure development, revival in private investment, and ongoing structural reforms are expected to reinforce economic resilience. Overall, the financial year 2027 outlook remains constructive, with India likely to remain among the fastest-growing major economies globally, provided macroeconomic stability is maintained and the reform agenda continues to progress.
RENEWABLE ENERGY INDUSTRY
The global energy sector is undergoing a structural transformation as countries accelerate the transition towards cleaner and more sustainable sources of power. Rising electricity demand from electrification, digitalisation, data centres, electric mobility and industrial decarbonisation, coupled with increasing energy security concerns, continues to drive investments in renewable energy. Despite periodic volatility arising from commodity prices, supply chain disruptions and evolving policy frameworks, renewable energy remains the fastest-growing segment of the global power sector.
Solar energy has emerged as the cornerstone of this transition owing to its improving cost competitiveness, technological advancements and shorter project development timelines. Supported by favourable government policies, declining generation costs and increasing corporate adoption, renewables are expected to account for the majority of incremental power capacity additions over the coming decade. The sector is also witnessing growing investments in energy storage, grid modernisation and domestic manufacturing, creating a more resilient and integrated clean energy ecosystem.
Global Renewable Energy Sector
The global renewable energy sector continues to witness robust expansion, driven by ambitious climate commitments, supportive policy frameworks and sustained investment in clean energy infrastructure. Renewable energy has become the dominant source of new power generation capacity worldwide, with solar photovoltaics (PV) accounting for the largest share of annual capacity additions.
The increasing competitiveness of renewable technologies, coupled with rapid advancements in battery energy storage, grid integration and digital energy management, has strengthened the reliability and scalability of renewable power. Governments across major economies are accelerating renewable deployment through production incentives, tax credits, renewable portfolio standards and carbon reduction targets, while corporate demand for clean electricity continues to rise through long-term power purchase agreements (PPAs).
As countries pursue energy independence alongside decarbonisation goals, renewable energy is expected to remain the primary driver of global power sector investments and capacity expansion.
Against this macroeconomic backdrop, the global renewable energy industry continued to outperform the broader power sector.
Capacity and Generation Growth
Global renewable energy capacity additions have continued to set new records, with solar energy leading incremental installations. Renewables now account for the largest share of newly commissioned electricity generation capacity globally and, in several markets, generate more electricity than conventional coal-based power.
Strong investments in utility-scale solar parks, distributed rooftop systems, hybrid renewable projects and battery energy storage systems have significantly expanded renewable generation. Declining levelised costs of electricity (LCOE), technological improvements and economies of scale have further enhanced the competitiveness of renewable energy relative to conventional sources.
Looking ahead, continued investment in transmission infrastructure, grid flexibility and energy storage is expected to support higher renewable penetration while ensuring grid stability and reliability.
Regional and Market Drivers
Renewable energy growth is being shaped by a combination of policy support, economic competitiveness and structural shifts in electricity demand across global markets.
Key growth drivers include:
These structural drivers continue to support long-term renewable energy growth despite near-term challenges from interest rate movements, policy changes and global supply chain dynamics.
Indian Renewable Energy Sector
India has emerged as one of the worlds fastest-growing renewable energy markets, supported by a strong policy framework, rising electricity demand, favourable demographics, and ambitious climate commitments. Renewable energy continues to remain a strategic priority under the Government of Indias energy transition agenda, with solar power accounting for the largest share of the countrys renewable energy capacity and expected to remain the primary driver of future capacity additions.
Over the past decade, Indias solar sector has undergone a remarkable transformation. Installed solar capacity has increased from approximately 3 GW in 2014 to 162.15 GW as of 30 June 2026, reflecting more than a fifty-fold expansion. This growth has been underpinned by sustained policy support, infrastructure development, domestic manufacturing expansion, competitive bidding mechanisms and increasing consumer participation. As a result, India has emerged as the worlds second-largest solar growth market, adding 37 GW of solar capacity in calendar year 2025, while financial year 2025-26 witnessed record additions of 44.61 GW of solar capacity, nearly double the previous years additions. Total non-fossil fuel capacity reached 283.46 GW, including 274.68 GW of renewable energy capacity, with the highest-ever annual addition of 55.29 GW. Renewable energy also met 51.5% of Indias electricity demand on 29th July 2025, marking the highest recorded monthly share.
3 GW to 162 GW - Lighting the Way with Solar
| Year | Capacity |
| 2014 | 3 GW |
| June 2026 | 162.15 GW |
50x Capacity Expansion
Indias renewable energy expansion has been driven by a comprehensive and stable policy ecosystem comprising the National Solar Mission, Solar Parks Scheme, Green Energy Corridor Programme, competitive tariff-based bidding, Renewable Purchase Obligations (RPOs), and long-term climate commitments under the Panchamrit targets announced at COP26. These initiatives have created long-term demand visibility while significantly improving project economics through transparent tariff discovery. Solar tariffs have declined from nearly ?18 per unit in 2010 to ?2.44 per unit, making India one of the worlds most cost-competitive solar power markets, with utility-scale solar LCOE estimated at USD 35/MWh, below the global average.
Making Solar More Affordable - Solar Tariff Decline (Per Unit)
| Year | Tariff |
| 2010 | ?18.00 |
| 2026 | ?2.44 |
The Government has simultaneously strengthened domestic manufacturing through initiatives such as the Production Linked Incentive (PLI) Scheme for high-efficiency solar PV modules and the Approved List of Models and Manufacturers (ALMM), reducing import dependence and encouraging value addition across the solar supply chain. Solar module manufacturing capacity has consequently expanded from 2.3 GW in 2014 to around 172 GW by March 2026, supporting Indias vision of building an integrated domestic renewable energy manufacturing ecosystem.
Infrastructure development has played a pivotal role in accelerating deployment. Under the Solar Parks Scheme, the Government has approved 54 solar parks with a cumulative sanctioned capacity of 39,188 MW, providing developers with ready access to land and transmission infrastructure. Landmark projects such as Bhadla Solar Park, Pavagada Solar Park and Rewa Ultra Mega Solar Park have established India among the worlds leading utility-scale solar markets. Complementing these efforts, the Green Energy Corridor Programme has strengthened transmission infrastructure, enabling efficient evacuation and integration of renewable power into the national grid.
Indias solar deployment has expanded across multiple segments. Utility-scale projects contribute approximately 118.79 GW of installed capacity, while 27.88 GW has been installed through grid-connected rooftop systems. Additional capacity is contributed by hybrid renewable projects and off-grid solar installations, improving energy access across both urban and rural regions. Distributed renewable energy has further gained momentum through flagship schemes such as PM Surya Ghar: Muft Bijli Yojana, promoting residential rooftop solar, and PM-KUSUM, supporting solarisation of agricultural pumps and decentralised solar generation for farmers.
The Government has further reinforced its commitment through the approval of the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) in July 2026. The scheme envisages the development of 5,000 MW of floating solar photovoltaic projects integrated with 10,000 MWh of energy storage systems, utilising reservoirs and inland water bodies to optimise land use while enhancing grid stability. Backed by an outlay of ?5,070 crore, the programme is expected to reduce approximately 10 million tonnes of annual CO2 emissions, generate 16,000-17,000 jobs, promote domestic manufacturing of floating solar systems and battery storage, and expand Indias floating solar capacity from around 700 MW to 5,700 MW.
(Source: Indias Solar Growth Enters a New Era by Press Information Bureau Government of India)
COMPANY OVERVIEW AND BUSINESS MODEL
The company is a leading manufacturer of high-efficiency solar photovoltaic (PV) modules, offering advanced technologies such as Mono PERC and N-Type TOPCon. At the forefront of Indias solar transformation, the company delivers next-generation TOPCon, bifacial, and monofacial solar panels, powered by innovation and a commitment to uncompromising quality. Our state-of-the-art manufacturing facilities integrate AI and robotics to ensure precision, efficiency, and reliability in every module produced.
The company envisions a future where clean energy becomes a way of life—empowering homes, businesses, industries, and solar farms with accessible, sustainable, and high-performance solar solutions. Our strong industry presence is built on trust and consistent performance, supported by 1000+ channel partners across 250+ districts. Today, we serve more than 40,000+ customers, ensuring wide accessibility and strong market reach.
The company offers end-to-end solar solutions, covering consultation, system design, installation, and ongoing maintenance delivering seamless support across residential, commercial, industrial, and utility-scale applications. Our products are manufactured using high-performance, top-tier equipment, ensuring durability, efficiency, and long-term reliability. We comply rigorously with global and domestic quality standards, including ISO, UL, IEC, ALMM, CE, TUVNORD and BIS certifications. Designed for all-weather performance, our solar systems are easy to install, cost-effective, and engineered to deliver optimal efficiency across diverse applications.
The company continues to strengthen its position as a key player in Indias renewable energy ecosystem. Our expansion is supported by strong demand across utility-scale, rooftop, EPC, government, and channel partner segments, ensuring diversified revenue streams and reduced customer concentration risk.
As of financial year 25-26, the company operates a module manufacturing capacity of 5.5 GW. Our PAN-India distribution network continues to expand, supported by deep engagement with channel partners and customers across key markets.
The company continues to enhance our technological capabilities through advanced manufacturing of high-efficiency modules, including TOPCon M12R, and TOPCon G12R technologies. Strategic partnerships across technology, engineering, and equipment suppliers further strengthen our execution ecosystem and ensure timely project delivery.
To maintain top-of-mind recall, INA has partnered with the Lucknow Super Giants IPL team as their official solar partner. Additionally, the Company collaborates with EPC contractors for independent power producer (IPP) projects, enhancing its credibility as a dependable solar component supplier. INAs government channel sales are executed through empanelled EPC contractors, enabling it to serve multiple market segments through a diversified distribution strategy.
The Companys subsidiary, Insolation Green Infra Private Limited, focuses on the execution of solar EPC projects including KUSUM Components A and C, solar parks, O&M services, and rooftop installations. The Company has a healthy pipeline of KUSUM projects.
GROWTH STRATEGY AND EXPANSION
Growth Strategy
The Company continues to strengthen its position as a key player in Indias renewable energy ecosystem. Our expansion is supported by strong demand across utility-scale, rooftop, EPC, government, and channel partner segments, ensuring diversified revenue streams and reduced customer concentration risk.
As of financial year 2026, the Company operates a module manufacturing capacity of 5.5 GW. Our pan-India distribution network continues to expand, supported by deep engagement with channel partners and customers across key markets.
We continue to enhance our technological capabilities through advanced manufacturing of high-efficiency modules, including TOPCon, M10R, and G12R technologies. Strategic partnerships across technology, engineering, and equipment suppliers further strengthen our execution ecosystem and ensure timely project delivery.
Expansion Plan
Companys long-term strategy is centered on building a fully integrated clean energy manufacturing platform. We are progressing strongly on 4.5 GW solar cell manufacturing facility together with an aluminium frame manufacturing facility having a planned capacity of 18,000 metric tonnes per annum at Narmadapuram, Madhya Pradesh. These strategic investments are expected to enhance operational efficiencies, improve supply chain resilience and position Insolation Energy as a fully integrated renewable energy company capable of delivering greater value across the manufacturing value chain.
Innovation remains central to our long-term strategy. Beyond manufacturing excellence, we continue to invest in advanced technologies, improve product efficiency and enhance operational performance to meet the evolving needs of the renewable energy sector. Our adoption of high-efficiency TOPCon technology and our ongoing evaluation of future opportunities in Battery Energy Storage Systems (BESS) and solar wafer manufacturing demonstrate our commitment to building a future-ready organisation prepared for the next phase of Indias energy transition.
FINANCIAL PERFORMANCE & OPERATIONAL HIGHLIGHTS
The Company delivered strong operational and financial performance in financial year 2025-26, reflecting robust execution and increasing market acceptance.
Financial Performance on Consolidated Basis
| Particulars | 31st March, 2026 | 31st March, 2025 | Change (%) |
| Total Income | 2,16,352.38 | 1,34,362.34 | 61.02% |
| EBITDA | 30,462.41 | 17,258.14 | 76.50% |
| PAT | 20,063.15 | 12,558.81 | 59.75% |
EBITDA increased by 76.50% primarily due to improved product mix, higher operating efficiencies, disciplined cost management, and better capacity utilisation, resulting in expansion of EBITDA margins 124 bps on YOY basis. The Company improved profitability through higher value-added product sales, operating efficiencies, better procurement, and tighter cost control.
Financial Ratios on Consolidated Basis
| Ratio | 31st March, 2026 | 31st March, 2025 | YoY Change (%) | Remarks |
| Debtors Turnover Ratio | 10.96 | 16.46 | -33.43% | Due to increase in trade receivable |
| Inventory Turnover Ratio | 9.41 | 17.69 | -46.80% | Due to increase in inventory |
| Interest Coverage Ratio | 12.02 | 22.68 | -47.00% | Due to increase in interest cost |
| Current Ratio | 1.86 | 2.52 | -26.23% | Due to increase in current liabilities |
| Debt Equity Ratio | 1.03 | 0.18 | 481.00% | Due to increase in debt |
| Operating Profit Margin | 17.10% | 16.17% | 5.77% | - |
| Net Profit Margin | 9.35% | 9.42% | 0.74% | - |
| Return on Net Worth | 24.82 | 20.63% | 20.29% | - |
Operational Highlights
OPPORTUNITIES AND CHALLENGES
OPPORTUNITIES
a) Accelerating Renewable Energy Transition
b) Growing Demand for Domestic Solar Manufacturing
c) Technology Advancement and Product Innovation
d) Expansion Across Renewable Energy Value Chain
e) Sustainability and Responsible Growth
CHALLENGES/RISKS
The Company follows a detailed Risk Management Framework to spot and handle challenges and risks effectively. This supports steady business growth alongside strong corporate governance.
a) Raw Material Price Risk
b) Technology Risk
c) Policy & Regulatory Risk
d) Execution Risk
e) Competition Risk
f) Foreign Exchange Risk
OUTLOOK
The Company remains confident about its long-term growth trajectory, supported by capacity expansion, backward integration, rising domestic demand, and strong opportunities across Indias renewable energy sector. Key priorities include:
With its integrated business model spanning manufacturing, EPC, and IPP capabilities, the Company is well-positioned to benefit from Indias accelerating clean energy transition and deliver sustainable long-term value to stakeholders.
Other Key Developments
During financial year 2025-26, the Company achieved several notable milestones:
HUMAN RESOURCE
The Company recognizes that its employees are the principal assets. As of 31st March, 2026, the Company had 394 permanent employees, including employees of subsidiary companies. The Company continues to invest in employee capability development through technical training, leadership programmes and skill enhancement initiatives. The Company is an equal opportunity employer and does not discriminate on the grounds of race, religion, nationality, ethnic origin, colour, gender, age, citizenship, sexual orientation, marital status or any disability.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The company has an Internal Control System commensurate with the size, scale and complexity of its operations. These controls are supported by Internal Audits, Management reviews and documented policies. Internal Financial Controls of the Company are adequate with reference to the Financial Statements and operating effectively.
SUSTAINABILITY AND ESG COMMITMENT
Sustainability is an integral part of the Companys business philosophy. The Company is committed to supporting Indias transition towards a cleaner and more sustainable energy future through efficient solar energy solutions. The Company focuses on responsible manufacturing practices, resource efficiency, operational excellence and environmental stewardship. Strong governance practices form the foundation of the Companys operations.
CAUTIONARY STATEMENT
This document contains certain forward-looking statements relating to expected future events and the financial and operational performance of the Company. These statements are based on a number of assumptions and are therefore subject to inherent risks and uncertainties. Readers are advised not to place undue reliance on such forward-looking statements.
| For and on behalf of the Board of Directors |
INSOLATION ENERGY LIMITED |
| Date: 12th August, 2026 |
| Place: Jaipur |
(Manish Gupta) |
| Chairman & Whole Time Director |
| DIN: 02917023 |
(Vikas Jain) |
| Managing Director |
| DIN: 00812760 |
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