Solex Energy Ltd Management Discussions

Global economic review

Overview: Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably.

The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023).

On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks and labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well.

The end of the calendar year was marked by the return of Donald Trump as the new US President. The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.3
Advanced economies	1.7	1.7
Emerging and developing economies	4.2	4.4

(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Performance of the major economies, 2024

(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)

Outlook: The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7 % for both 2025 and 2026, factoring the various economic uncertainties.

(Source: IMF, United Nations, World Bank)

Indian economic review Overview

The Indian economy grew at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds fifth-largest economy.

Indias nominal GDP (at current prices) was H330.68 Trillion in FY 2024-25 (H301.23 Trillion in FY 2023-24). The nominal GDP per capita increased from H2,15,936 in FY 2023-24 to H2,35,108 in FY 2024-25, reflecting the impact of economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at H85.47 on the last trading day of FY 25.

Inflationary pressures eased, with CPI inflation averaging 4.63% in FY 2024-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in FY 2024-25, was the lowest since the pandemic, catalysing savings creation.

Gross foreign direct investment (FDI) into India rose 13.6% to USD81 Billion during the last financial year, the fastest pace of expansion since FY 2019-20. The increase in the year was despite a contraction during the fourth quarter of FY 2024-25 when inflows on a gross basis declined 6% to USD17.9 Billion due to the uncertainty caused by Donald Trumps election and his assertions around getting investments back into the US.

Growth of the Indian economy

	FY 22	FY 23	FY 24	FY 25
Real GDP growth (%)	8.7	7.2	9.2	6.5
(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024-25

	Q1 FY 25	Q2 FY 25	Q3 FY 25	Q4 FY 25
Real GDP growth (%)	6.5	5.6	6.2	7.4

(Source: The Hindu, National Statistics Office)

According to Boston Consulting Group Banking Sector Roundup FY 25, the banking sector continued its improvement, with gross non-performing assets (NPA) declined to 2.2% as of March 2025 as against 2.87% in March 2024 led by robust improvement in asset quality by PSU Banks. The capital-to-risk-weighted assets ratio of the sector stood at +13% as on March 2025, reflecting a strong capital position and resilience in their risk management capacities.

Indias exports of goods and services reached USD824.9 Billion in FY 2024-25, up from USD778 Billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports grew 6% YoY, reaching USD374.1 Billion.

Indias net GST collections increased 8.6%, totalling H19.56 Lakh Crore in FY 2024-25.

Indias services sector grew at 8.9% in FY 25 (9.0% in FY 24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY 25, compared to 8.6% in FY 24. Meanwhile, the construction sector expanded at 9.4% in FY 25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY 25, with growth at 4.5%, which was lower than 12.3% in FY 24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY 25, compared to 8.1% in FY 24.

The agriculture sector grew at 4.6% in FY 2024-25 as compared to 1.4% in FY 2023-24. Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in FY 2024- 25 as compared to 6.3% in FY 2023-24.

From a demand perspective, the private final consumption expenditure (PFCE) exhibited robust growth, achieving 7.2% in FY 2024-25, surpassing the previous financial years rate of 5.6%.

Outlook

India is expected to remain the fastest-growing major economy. Initial Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY 26.

Tariff-based competitiveness: India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US high tariffs give New Delhi a competitive advantage in the American market over other suppliers. The US Government has imposed 50% tariff on India for importing purchasing oil from Russia. The move is poised to impact key sectors including textiles, footwear, gems, and jewellery. US-China agreed to pause 90 day tariff truce which was initially levied at 145% in April 2025 and a second 90 day pause was further agreed in August 2025. (Source: Times of India and CNBC).

Union Budget FY 2025-26: The Union Budget FY 2025-26 laid a strong foundation for Indias economic trajectory, emphasizing agriculture, MSMEs, investment and exports as the four primary growth engines. With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating H11.21 Lakh Crore for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to H12 Lakh annually will be fully exempt from income tax. Economists estimate that the resulting H1 Lakh Crore in tax savings could boost consumption by H3-3.5 Lakh Crore, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H200 Lakh Crore.

Free trade agreement: In a post-Balance Sheet development, India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear and gems & jewellery sectors. About 99% of Indian exports to UK will enjoy zero-duty access tariff cuts; India will cut tariffs on 90% of tariff lines and 85% could become fully duty-free within 10 years.

Pay Commission impact: The 8^th Pay Commissions awards could lead to a significant salary revision for nearly ten million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7^th Pay Commission more than tripled its monthly salaries, raising the range from H7,000 to H90,000 to H18,000 to H12.5 Lakh, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an above normal monsoon in 2025. This augurs well for the countrys farm sector and a moderated food inflation outlook.

Deeper rate cuts: In its June 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 50 basis points, reducing it to 5.5%. Additionally, in the third bi-monthly policy in August 2025, the MPC left the repo rate unchanged at 5.5% augured by normal southwest monsoon, lower inflation, increasing capacity utilisation, and supportive financial conditions spurring domestic activities. The CPI inflation forecast was lowered to 3.1% for FY26.

Lifting credit restrictions: In November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritised restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks and are expected to rejuvenate retail lending.

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)

Global renewable energy sector overview

Renewable energy is derived from natural sources such as sunlight and wind, which are continuously replenished. It is used for electricity generation, heating and cooling of spaces and water, as well as in transportation. It offers several benefits, including reduced global warming, improved public health, an inexhaustible supply, stable energy prices and enhanced reliability and resilience.

The global renewable energy market size was estimated at USD 1.48 Trillion in 2024 and is anticipated to reach around USD 7.28 Trillion by 2034, expanding at a CAGR of 17.23% from 2025 to 2034. The rising demand for clean energy in different industries across the world that drives the growth of the renewable energy market.

Renewable Energy Market Size Marget Size 2023 to 2032 (USD Trillion)

Renewable energy sources like wind, hydropower, solar, geothermal and bioenergy currently fulfill about 7% of global energy demand, with this share expected to rise significantly. Growing awareness of fossil fuel impacts, government initiatives, carbon reduction efforts and increasing consumer adoption are key drivers of renewable energy market growth.

In developing nations industrialisation and urbanisation are expected to boost demand for sources like geothermal and solar energy. By 2030, renewable energys share in the electricity sector is expected to rise from 30% to 46%, with global renewable electricity generation reaching over 17,000 TWh. Solar and wind drive most of this growth, aiding decarbonisation in industries, heating and electric vehicle charging. Renewable electricity also supports renewable hydrogen production, which will primarily be used in materials, chemicals and power generation, accounting for nearly 75% of these demand.

(Source: Precedence Research, IEA)

Indian renewable energy sector overview

The Indian renewable energy market is being driven by rapid advancements in technologies such as solar photovoltaics, wind turbines and energy storage systems. Growing concerns over climate change and the environmental impact of fossil fuels, along with the increasing demand for clean and sustainable energy solutions, are also contributing to this growth. In 2024, the market was valued at USD 23.9 Billion. and it is projected to reach USD 52.1 Billion by 2033, growing at a CAGR of 8.1% during the period 2025-2033.

The market in India is majorly driven by increasing government support by implementing supportive policies. These initiatives have attracted investments and created a favorable environment for renewable energy development. The declining costs of renewable energy technologies, particularly solar and wind, are significantly contributing to the market. The lowered prices of solar photovoltaic modules and wind turbines have made renewable energy more competitive with fossil fuels. To meet this increasing demand, renewable energy sources are being utilised as a sustainable and clean alternative to conventional fossil fuels. The decentralisation of power generation through renewable energy projects also helps to address energy access challenges in remote areas.

India added a record-breaking 25 GW of renewable energy capacity in FY 25, representing a nearly 35% increase over the 18.48 GW added in the previous year. The solar power sector was the primary driver of this growth, with capacity additions rising from 15 GW in FY 24 to nearly 25 GW in FY 25, an impressive 35% increase. Moreover, the country reached a major milestone by surpassing 100 GW of installed solar capacity this year.

(Source: IMARC, Business standard)

Advantage India

Under-consumption: As of fiscal year, 2025, Indias per capita electricity consumption has continued to rise steadily, reflecting ongoing industrial growth, urbanisation and expanded electricity access. The countrys electricity demand is increasingly driven by sectors such as industry, residential use, agriculture and the growing adoption of electric vehicles and cooling technologies. Under the stated policies scenario, Indias share of global primary energy consumption is expected to reach approximately 9.8% by 2050, highlighting its expanding role in the global energy landscape. This growth aligns with Indias ambitious energy transition goals, including a significant expansion of non-fossil fuel capacity and reflects the countrys increasing total energy supply driven by a diverse mix of oil, gas, coal, renewables and electricity to meet rising demand across all sectors.

(Source: Business standard, PIB)

Investment: Driven by expanding capacities across all segments, the Indian power sector is set to attract approximately H17 Lakh Crore in investments over the next 5-7 years, commencing in 2024. This follows a substantial H22 Lakh Crore investment in power and renewable energy over the preceding nine years.

(Source: economictimes.indiatimes.com)

Budgetary allocation: The budget for the production linked incentive (PLI) scheme has increased to H19,482.6 Crore for FY 26 with the largest increase in allocation for textiles, battery cell and storage technology and automobiles.

Aligned with national policy: During COP26 in 2021, the Prime Minister of India announced five significant commitments. Indias objectives include reaching a non-fossil energy capacity of 500 GW by 2030 and satisfying 50% of its energy demands through renewable sources by the same year. Furthermore, India has pledged to decrease total carbon emissions by one Crore tonnes from 2021 to 2030 and lower the carbon intensity of its economy by more than 45%. The ultimate aspiration is to achieve net zero emissions by 2070. These commitments not only bolster Indias global stature but also have the potential to establish the country as a beacon of sustainable development worldwide within two generations.

Renewable energy: By 2030, it is expected that solar energy will represent 18% of Indias overall power generation capacity, while coals portion of the electricity generation mix is estimated to decrease to 50%. In a possible scenario, by

2040, the two distinct energy sources might come together, representing a combined percentage in the low thirties. This could result in a heightened demand for effective power evacuation, encompassing wind energy, from generation sites, thus prompting a substantial expansion of the power transmission infrastructure market.

Policy: The committee appointed by the Supreme Court has mandated the conversion or augmentation of transmission lines up to 33 kV using cables, while emphasizing the continued use of proper standardized bird diverters for overhead extra high-tension lines exceeding 33 kV. This directive paves the way for unimpeded growth in Indias transmission infrastructure.

Power for all: The Power for all initiative has accelerated capacity expansion and by FY 2026-27, Indias installed power generation capacity is projected to reach approximately 620 GW. Renewable energy sources will account for 44% of the capacity, while coal will contribute 38%.

Government policies: The Indian governments policies support renewable energy within the electricity mix by allowing 100% Foreign Direct Investment (FDI) in the renewable energy, electricity and power sectors. This initiative is anticipated to generate substantial capacity and stimulate demand in the power transmission sector.

Global solar energy sector

Solar energy has emerged as a key pillar of the global renewable energy transition. The solar industry is set to break ground in 2025 due to advancements in technology, the shifting economy and urgency for sustainability.

Robust policy backing, market-led innovation and heightened environmental consciousness continue to fuel record growth and unlock new opportunities for expansion. By the end of 2024, global installed solar capacity reached approximately 2.2 TW, with a record 597 GW added during the year marking a 33% increase over 2023.

Solar capacity additions in 2025 are projected at approximately 655 GW, indicating a modest 10% year-on-year growth. Estimates vary, with PV Tech forecasting 580 GW and the mid-range outlook set at 655 GW. Between 2026 and 2028, around 2.27 TW of new PV capacity is expected to be installed slightly lower than the earlier projection of 2.34 TW. To achieve the global solar councils ambitious goal of 8 TW by 2030, the industry will need to significantly accelerate deployment, averaging around 1 TW of new installations annually.

(Source: PV magazine India, Global solar council.org, PV magazme.com, Reuters.com)

Indias solar energy sector

As of FY 2025, Indias solar energy sector has witnessed unprecedented growth, solidifying its position as a global renewable energy leader. During the fiscal year 2024-25, India added approximately 24-25 GW of new solar capacity, marking a 35% increase over the previous year. This surge includes 16.9 GW of utility-scale solar projects, 5.15 GW of rooftop solar installations and 1.78 GW from off-grid and distributed solar systems. The total installed solar capacity reached around 105.65 GW, accounting for nearly 48% of Indias total renewable energy capacity of 220 GW. Key states leading solar installations include Rajasthan (6.43 GW), Gujarat (3.27 GW) and Maharashtra (2.15 GW), with Gujarat also topping rooftop solar additions. The sectors growth is driven by strong government policies, including aggressive tendering mandates, the PM Surya Ghar: Muft Bijli Yojana promoting residential solar, declining module prices and rising corporate demand for green energy through open access markets.

This rapid expansion is complemented by significant advancements in solar manufacturing capacity, which nearly doubled to 74 GW by early 2025, supporting Indias Atmanirbhar Bharat (self-reliance) initiative. Solar power now contributes the largest share of renewable generation, with a 64% share in total renewable electricity produced as of early 2025. The sector benefits from robust financial support, policy incentives and technological improvements that enhance efficiency and reduce costs. Overall, Indias solar energy segment is a critical pillar in the countrys clean energy transition, poised to play a central role in achieving the national target of 500 GW of non-fossil fuel capacity by 2030 and supporting sustainable economic growth.

(Source: Asian Business View, Economic Times, PIB, Energy Monitor)

Government initiatives

PM-Surya Ghar Muft Bijli Yojana: Launched in February 2024, this scheme aims to solarise 1 Crore households by providing free electricity of up to 300 units per month. The scheme has been allocated H20,000 Crore in the budget of FY 2025-26

Production-linked incentive (PLI) schemes:

a) PLI for high-efficiency solar PV modules: Launched in 2021, this scheme promotes domestic manufacturing of solar photovoltaic (PV) modules, reducing reliance on imports. With an initial allocation of H4,500 Crore, later expanded to H24,000 Crore, this scheme supports fully integrated solar module manufacturing.

b) PLI for advanced chemistry cell (ACC) battery storage: This scheme supports the domestic production of energy storage technologies, particularly lithium-ion batteries, for electric vehicles (EVs) and grid-scale storage. With an allocation of H18,100 Crore, this initiative seeks to establish 50 GWh of battery manufacturing capacity.

c) The approved list of models and manufacturers (ALMM): This policy is implemented by Indias Ministry of New and

Renewable Energy (MNRE) to promote domestic solar manufacturing and ensure the quality of solar components used in the country. The implementation of ALMM has been a key part of Indias Aatmanirbhar Bharat (self-reliant India) initiative in the renewable energy sector. This is currently in force for domestic solar production. Further, the government has proposed the implementation of Approved List of Cell Manufacturers (ALCM) from June 2026 onwards for spurring domestic cell production. These initiatives will be applicable for solar components utilised in the Government projects and is anticipated to boost the overall Indian solar manufacturing industry.

(Source: PIB, IBEF, Power line magazine)

Growth drivers

Indias power and energy sector is set to grow robustly in the coming years, driven by a combination of rapid economic expansion, supportive government policies and ongoing technological progress:

Rising electricity demand: Power demand reached an all-time peak of 250 GW in FY 25, driven by industrialisation, urbanisation and increased electrification across sectors. Per capita electricity consumption rose to about 1,395 KWh, reflecting broader access and higher usage.

Policy and regulatory support: The governments ambitious target of 500 GW non-fossil fuel capacity by 2030, backed by consistent tendering for solar, wind, hybrid and energy storage projects, creates a stable investment environment. Production-Linked Incentive (PLI) schemes and state-level clean energy policies (e.g., Andhra Pradeshs integrated clean energy policy) further accelerate capacity additions and domestic manufacturing.

Investment inflows: Record-high investments, including large-scale acquisitions and debt financing, have fuelled renewable energy growth. Private sector participation and foreign direct investment are encouraged through policy incentives and regulatory reforms, enhancing capital availability.

Grid modernisation and transmission expansion: To integrate growing renewable capacity and improve reliability, significant investments are underway in grid infrastructure, smart grids and inter-regional transmission networks, addressing intermittency and enhancing power evacuation.

Technological innovation: Advances in energy storage, electric vehicles and smart metering contribute to sector efficiency and sustainability, supporting the transition to a cleaner and more resilient power system.

(Source: The wire, IEA, Economic Times, Livemint, India Today, timesoftndia.indiatimes.com)

Company overview

Solex Energy Limited, established in 1995 in Gujarat, India, has evolved into a prominent name in the renewable energy sector. Starting with solar water heaters, we ventured into solar module manufacturing in 2007. A major milestone was achieved in 2018 when we became a publicly listed company. In 2020, we announced a significant capacity expansion, which became operational in 2022. With further upgrades underway, we have reached a solar module manufacturing capacity of 1.5 GW, supported by future-ready infrastructure. Moreover, we are planning to scale up our capacity to 4.0 GW in the later half of FY 26, reinforcing our long-term growth vision.

Our ISO and OHSAS certified manufacturing facilities comply with global standards, delivering high-quality and reliable products. We have expanded our reach across key international markets, including Europe, North America and Africa. Strategic partnerships and alliances have played a vital role in this growth, allowing us to leverage local expertise and infrastructure to meet global customer demands with efficiency and dependability. Notably, we were the first Indian company to manufacture solar modules for leading global solar brands, a testament to our strong technical expertise and operational excellence.

We produce advanced Mono-PERC, TopCON with capacities ranging from 540WP to 625WP, using the state-of-the- art facility, which is highly automated and driven by Industry 4.0 principles. This integration of big data, robotics and automation enhances our production efficiency.

Beyond our manufacturing strengths, we provide end-to-end Solar EPC services, offering customised solutions for both ground-mounted and rooftop installations. We also operate under an operations and maintenance model to manage solar assets effectively. With a comprehensive portfolio of products and services, we cater to diverse customer requirements.

Our commitment to innovation and sustainability positions us strongly to contribute to Indias shift towards a greener and more sustainable future.

We take pride in serving prestigious international clients such as JINKO (China), AXITEC (Germany), Enbekon-GmbH (Africa) and MAFN-SA, along with a wide range of domestic customers. On the EPC front, we have successfully executed several notable projects for clients including AMUL, IIM-A, Torrent Power, ONGC, BREDA and the Airport Authority of India. Our vast experience and proven track record in project execution underscore our commitment to quality and excellence.

SWOT Analysis Strengths

Integrated manufacturing: Our vertically integrated operations focus on module assembly, ensuring quality control and cost efficiency. We are also planning to expand into solar cell manufacturing to further strengthen our value chain. Certified facilities: ISO and OHSAS certified plants ensure international quality and occupational safety compliance. Export presence: Growing footprint in Europe, North America and Africa boosts brand visibility and foreign exchange earnings.

Government alignment: Business model aligned with Indias renewable energy mission and Production-Linked Incentive (PLI) schemes.

Strategic partnerships: Collaborations with global EPCs and tech providers accelerate market access and technological upgrades.

Weakness

Limited brand awareness: Compared to larger global players, Solex is still gaining visibility in high-competition markets Mitigation: The Company has secured orders under the Solex Brand for the upcoming year at a large scale.

Scale constraints: Current capacity, although expanding, is still modest compared to other market leaders Mitigation: The Company is expanding its module manufacturing capacity to 4 GW in FY26 and also plans to begin Solar Cell Manufacturing.

Opportunities

Domestic solar boom: Indias ambitious targets (500 GW renewable capacity by 2030) create massive room for domestic players.

International demand: Policy pushes in developed markets for sustainable sourcing opens up export opportunities. New tech frontiers: Expanding into storage systems, smart modules (with AI/IoT integration) or green hydrogen applications.

PLI scheme leverage: Benefits from government incentives can reduce costs and accelerate expansion into polysilicon and wafers.

EPC and rooftop growth: Rising rooftop and industrial-scale solar deployment presents scalable verticals.

Threats

Chinese imports: Low-cost imports from China can undercut margins unless import duties or quality regulations are enforced.

Mitigation: The Government has implemented The Approved List of Models and Manufacturers (ALMM) to promote domestic solar module manufacturing. Further, the Government has proposed implementation of Approved List of Cell Manufacturers (ALCM) with effect from June 2026 for promoting cell manufacturing. Both these initiatives are applicable for government projects. This expected to substantially increase the domestic manufacturing base for the solar industry. Raw material volatility: Price swings in silver paste, glass or EVA sheets can impact module pricing and profitability. Mitigation: The Company actively manages its supply chain by entering into long term raw material contracts. Also, all customer contracts have a pass-through clause for navigating through unforeseen price changes. Further, SEL engages in proactive inventory management ensuring continuous production aligned with market demand.

Grid infrastructure issues: In India and export markets, grid connectivity delays can hurt project execution timelines. Mitigation: The Government has been implementing several initiatives to improve grid connectivity. These include the Green Energy Corridors (GEC), National Power Grid, promotion of Battery Energy Storage Systems (BESS), PM-KUSUM and PM Surya Ghar schemes. These initiatives are expected to ensure seamless power connectivity in the long term. Regulatory changes: Uncertainty in duty structures, GST policies, or licensing can affect expansion plans.

Mitigation: The Indian government is implementing a variety of measures to reduce regulatory uncertainty and provide a stable environment for renewable energy expansion. This is a continuous effort, with the government adjusting policies related to tariffs, duties, and licensing.

Outlook

The Companys outlook remains optimistic about sustainable growth in the coming years. The management plans to reduce overhead and financial costs, build strong relationships with customers, vendors and employees through ethical practices. Solex looks forward to enhance its production standards for improving its efficiency without sacrificing quality. The Company is focused on optimising operating parameters and costs to effectively address potential challenges.

In alignment with current market demands, Solex is upgrading the manufacturing capabilities and enabling all the production lines to be compatible with back-contact and HJT technology. This enhancement positions the Company to deliver high-efficiency solar modules tailored for both domestic (Indian) and international projects.

The prospects for both domestic and export markets are highly promising, with Solex well-positioned to further penetrate both the target markets. The Company participated in key events, such as The Smarter E (Intersolar) exhibition in Munich, Germany, in June 2024 and RE+ in the USA in September, REI-2024 in Noida in October, and The Smarter E (Intersolar) in Gandhinagar in February 2025, will bolster our global presence.

The forthcoming schedule includes participation in RE+ USA in September 2025, ET Energy Leadership in September 2025, REI, Greater Noida in October, 2025, Renewable Energy Expo, Chennai in February 2026, Intersolar, Gandhinagar in February 2026 and ELECRAMA, Greater Noida in February 2026. These events will provide valuable opportunities for networking, showcasing innovations and exploring new business collaborations.

For the current year, the Company has developed a strategic promotional plan to enhance sales and establish Solex on the global solar map. Recognising the strong potential for growth domestically and through exports, the Company intends to increase its production of P-type and N-type modules from 1.5 GW to 4 GW, aiming to complete this expansion by the second half of fiscal year 2026. Looking ahead, the Company aspires to reach a long-term target of 15 GW in module manufacturing and 5 GW in cell production capacity by 2030.

As an Original Equipment Manufacturer (OEM) for various Indian and international companies, Solex has formed partnerships through MoUs with multiple brands for module manufacturing, including material collaborations and job work arrangements.

Solex modules have received numerous prestigious certifications, reflecting our commitment to quality. These certifications ensure that our solar photovoltaic modules meet the highest standards of safety, performance, reliability, and international compliance. Notably, Solex modules have been certified by the Bureau of Indian Standards (BIS) and included in the Approved List of Models and Manufacturers (ALMM).

Risk management

The solar industry is exposed to a wide range of risks, each posing distinct challenges for companies in this fast-evolving sector. At Solex, we adopt a proactive approach to risk management, addressing financial, operational, regulatory, technological and market-related uncertainties. We mitigate these risks through robust assessment frameworks, diversified supply chains and sound financial strategies. By adhering to strict environmental standards and promoting a culture of innovation and safety, we effectively manage challenges while capitalising on emerging opportunities. Our strong focus on risk management underpins our resilience and ability to deliver sustainable value to stakeholders in an ever-changing global environment.

Human resources and industrial relations

At Solex, we firmly believe that our people are our most valuable asset. Over the past year, we have reaffirmed our commitment to human resource development and cultivating strong employee relationships. We have continued to invest in our workforce through comprehensive training programs, mentorship initiatives and opportunities for career growth. By equipping our employees with the skills and knowledge needed to excel, we not only enhance individual performance but also reinforce our organisational resilience. We remained dedicated to nurturing talent, fostering a supportive work environment and empowering our teams to drive innovation and long-term growth. Prioritising people development ensures we build a strong, future-ready foundation for continued success.

Discussion on financial performance with respect to operational performance financial performance

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Total Income	66,364.43	36,801.53	66,582.03	36,801.53
Profit before Interest and Depreciation	7,244 39	3,050 77	7,671.36	3,050.77
Less Interest	1,076 67	105046	1,076.89	1,050.46
Profit Before Depreciation	6,167 72	2,00031	6,594.47	2,000.31
Less: Depreciation	922.96	846.16	923.13	846.16
Profit Before Tax	5,244.76	1,154.15	5,671.34	1,154.15
Less/Add: Tax Expenses
Taxes for Earlier years	0	0	0	0
Current Tax	1,210 86	209 10	1,318 12	209 10
Deferred Tax	73.73	71.57	73.83	71.57
Total Tax Expenses	1,284.59	280.67	1,391.95	280.67
Profit for the year	3,960.17	873.48	4,279.39	873.48

Consolidated:

Total revenue of the Company for FY 2024-25 stood at H66,582.03 Lakhs as against H36,801.53 Lakhs for FY 2023-24, showing an increase of 80.92% due to volume growth.

EBITDA for FY 2024-25 stood at H7,671.36 Lakhs as against H3,050.77 Lakhs for FY 2023-24, showing an increase of 151.46% due increase in revenue leading to operating leverage.

Profit after tax for FY 2024-25 stood at H4,279.39 Lakhs as against H873.48 Lakhs for FY 2023-24 showing an increase of 389.92% led by overall efficiencies.

Standalone:

Total revenue of the Company for FY 2024-25 stood at H66,364.43 Lakhs as against H36,801.53 Lakhs for FY 2023-24, showing an increase of 80.34%.

EBITDA for FY 2024-25 stood at H7,244.39 Lakhs as against H3,050.77 Lakhs for FY 2023-24, showing an increase of 137.46%.

Profit after tax for FY 2024-25 stood at H3,960.17 Lakhs as against H873.48 Lakhs for H2023-24 showing an increase of 353.38%.

Consolidated details of significant changes in key financial ratios, along with detailed explanations thereof, including

Particulars	Current Year 2024-25	Previous Year 2023-24	% Variance	Reason for change
Current Ratio	1.47	1.31	12.28	Increase in currents assets is much better than corresponding current liabilities, hence the current ratio is improved.
Debt Equity Ratio	0.92	2.08	-55.84	Substantial reduction in debt-to- equity ratio is due to equity fund raise and robust profitability leading to increase in reserves.
Debt Service Coverage Ratio	4.19	3.24	29.48	Due to substantial increase in net profit earned by the company during the year, debt service coverage ratio has improved.
Return on Equity Ratio (ROE)	41.37%	20.83%	98.62	Due to substantial increase in the net profit earned by the company during the year, ROE has improved.
Inventory Turnover Ratio	4.51	6.65	-32.19	The Company ramped up production at the year end, leading to lower ratio. However, the said inventory has been sold post the balance sheet date.
Trade Receivable Turnover Ratio	8.13	9.51	-14.48	Increase in revenue at faster pace had led to slightly stretched debtors days.
Trade Payable Turnover Ratio	9.36	8.83	5.90	Despite increase in overall volume, company has been able to improve the trade payable days slightly due to better liquidity and timely payment.
Net Capital Turnover Ratio	8.75	11.33	-22.77	Substantial improvement in net capital turnover is due to better working capital management.
Net Profit Ratio	6.46%	2.39%	170.71	Overall efficiency and optimum utilisation of assets has led to higher net profit ratio.
Return on Capital Employed (ROCE)	29.43%	23.59%	24.73	Due to substantial increase in operational sales, and the overall increase in the profit of the Company, this ratio has increased as compared to previous year.
Interest Service Coverage Ratio	8.12	3.39	139.54	Due to substantial increase in the earning of the company, despite raising interest cost on borrowings. This ratio has increased substantially.
Operating Profit Margin %	9.65%	5.45%	76.93	Due to substantial increase in the operational income of the company operating leverage has played out which led to increase in the ratio.
Return on Net Worth	41.37%	20.83%	98.62	Due to substantial increase in the net profit earned by the company during the year, RONW has improved.
Net Profit Margin %	6.46%	2.39%	170.71	Overall efficiency and optimum utilisation of assets has led to higher net profit margin.

Disclosure of accounting treatment

The company is responsible for preparing and presenting its financial statements in a manner that provides a true and fair view of its net profit, financial position, performance and cash flows. These statements are prepared in accordance with the applicable accounting standards prescribed under Section 133 of the Companies Act, along with the relevant rules and other generally accepted accounting principles in India.

Cautionary statement

Statements in this management discussion and analysis that relate to the companys objectives, projections, estimates, expectations, or predictions may be considered "forward-looking statements" under applicable laws and regulations. Actual results may differ significantly from those expressed or implied due to various factors. These may include global and domestic supply and demand dynamics affecting pricing, availability and cost of inputs, changes in government policies and regulations, tax structures, economic conditions within and outside the country and other related influences. The company undertakes no obligation to publicly update or revise any forward-looking statements in light of future developments, events, or new information.

	By Order of the Board of Directors
	For, Solex Energy Limited
	Sd/-
	Dr. Chetan Shah
Date:26/08/2025	Chairman & Managing Director
Place: Surat	DIN: 02253886