Websol Energy System 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

United States: Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023. China: GDP growth was 5.0% in 2024 compared to 5.2% in 2023.

United Kingdom: GDP growth was 0.8% in 2024 compared to 0.4% in 2023. Japan: GDP growth was 0.1% in 2024 compared with 1.9% in 2023.

Germany: GDP contracted by 0.2% in 2024 compared to a 0.3% decline in 2023.

(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 2025 and 2026, factoring the various economic uncertainties.

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 an economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at H 85.47 on the last trading day of FY 2024-25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar). 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, catalyzing savings creation. Indias foreign exchange reserves stood at a high of $676 Billion as of April 4, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualized rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).

Gross foreign direct investment (FDI) into India rose 13.6% to $81 Billion during the last financial year, the fastest pace of expansion since 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 $17.9 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
	FY22	FY23	FY24	FY25
Real GDP growth (%)	8.7	7.2	9.2	6.5

E: Estimated

(Source: MoSPI, Financial Express)

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

	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25
Real GDP growth (%)	6.5	5.6	6.2	7.4

E: Estimated

(Source: The Hindu, National Statistics Office)

The banking sector continued its improvement, with gross non-performing assets (NPA) for scheduled commercial banks (SCBs) declining to 2.6% as of September 2024, down from 2.7% in March 2024. The capital-to-risk-weighted assets ratio for SCBs stood at 16.7% as of

September 2024, reflecting a strong capital position. Indias exports of goods and services reached $824.9 Billion in FY 2024-25, up from $778 Billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports.

Merchandise exports grew 6% YoY, reaching $374.1 Billion.

Indias net GST collections increased 8.6%, totalling H19.56 Lac Crore in FY 2024-25. Gross GST collections in FY 2024-25 stood at H22.08 Lac Crore, a 9.4% increase YoY.

On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 2024-25. The industrial sector grew by 6.5%, supported by growth in construction activities, electricity, gas, water supply and other utility services. Indias services sector grew at 8.9% in FY25 (9.0% in FY24), 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 FY25, compared to 8.6% in FY24. Meanwhile, the construction sector expanded at 9.4% in FY25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY25, with growth at 4.5%, which was lower than 12.3% in FY24. 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 FY25, compared to 8.1% in FY24. The agriculture sector grew at 4.6% in FY 2024-25 (1.4% in 2023-24). Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in 2024- 25 (6.3% in 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%.

The Nifty 50 and SENSEX recorded their weakest annual performances in FY 25 in two years, rising 5.3% and 7.5% during the year under review respectively. Gold rose 37.7% to a peak of $3,070 per ounce, the highest increase since FY 2007-08, indicating global uncertainties. Total assets managed by the mutual fund (MF) industry jumped 23% or H12.3 Lac Crore in fiscal 2025 to settle at H65.7 Lac Crore. At close of FY25, the total number of folios had jumped to nearly 23.5 Crore, an all-time peak. During last fiscal, average monthly systematic investment plan (SIP) contribution jumped 45% to H24,113 Crore. Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately $20 Billion by year-end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).

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 FY26.

Union Budget FY 2025-26: The Union Budget 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 Lac 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 Lac annually will be fully exempt from income tax. Economists estimate that the resulting H1 Lac Crore in tax savings could boost consumption by H3-3.5 Lac Crore, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H200 Lac 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 8th 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 7th Pay Commission more than tripled its monthly salaries, raising the range from H7,000 to H90,000 to H18,000 to H 2.25 Lac, 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.

Easing inflation: Indias consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of FY 2025-26. Besides, Indias CPI inflation is forecasted at 4% for the fiscal year 2025-26.

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 prioritized 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)

Renewable energy refers to energy derived from natural sources that are replenished continuously, such as solar, wind, hydro, biomass, and geothermal energy. In contrast to conventional fossil fuels, which are finite and major contributors to environmental degradation, renewable sources offer a clean, sustainable, and eco-friendly alternative. By leveraging natures abundance, renewable energy enables the generation of electricity, heat, and fuel with minimal environmental impact and no long-term resource depletion. As the global focus intensifies on energy security and climate resilience, renewable energy has taken centre stage in driving the transition to a low-carbon, sustainable future.

The growth of the renewable energy sector continues to be propelled by a sharp decline in technology costs, enabling policy frameworks, and increasing corporate commitment to sustainability. In 2024, solar energy emerged as the leading contributor, accounting for 42% of total renewable capacity, and is projected to expand at a CAGR of 13% through 2030. While utility-scale projects continue to anchor market growth, commercial and industrial (C&I) installations are witnessing a steady rise as businesses seek to mitigate fuel price volatility and align with decarbonization goals.

The global renewable energy market is set for sustained expansion, with the market size expected to grow from USD 1,106.98 Billion in 2024 to USD 1,194.93 Billion in 2025, reflecting a CAGR of 7.9%. This growth trajectory is projected to accelerate, reaching USD 1,735.29 Billion by 2029, at a CAGR of 9.8%. The Asia-Pacific region continues to lead the global renewable energy landscape, accounting for over 41.8% of global capacity in 2024. Meanwhile, South America is witnessing the fastest growth, fuelled by investor-friendly reforms and abundant solar and wind resources. This leadership is driven by rapid infrastructure development, enabling policy support, declining technology costs, energy security priorities, and increasing corporate focus on sustainability.

(Source: The Business Research Company, Mordor Intelligence, IMARC)

The global solar energy market is segmented by technology (Photovoltaic and Concentrated Solar Power), module type (including Cadmium Telluride and Amorphous Silicon), application (lighting, heating, charging, and more), end use (residential, commercial, industrial), and region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa). Driven by rising demand for clean energy, technological innovation, and supportive policy measures, the market is projected to grow at a CAGR of 7.1%, increasing from USD 227.34 Billion in 2024 to USD 393.54 Billion by 2032.

Global solar photovoltaic sector overview

Solar photovoltaic (PV) technology involves the direct conversion of sunlight into electricity using semiconductor materials, most commonly silicon-based solar cells. These cells produce an electric current when exposed to sunlight through the photovoltaic effect. PV systems are modular and scalable, making them suitable for a broad spectrum of applications ranging from small-scale rooftop setups to utility-scale solar farms. As one of the most widely adopted renewable energy technologies, solar PV provides a clean, efficient, and increasingly cost-effective means of meeting the rising global demand for sustainable energy. Its adaptability and low environmental footprint have established it as a fundamental component of modern clean energy strategies.

In 2024, the Asia Pacific region led the global market with the highest revenue share of 55.6%, driven by robust infrastructure development, favorable regulatory frameworks, and strong regional demand for clean energy solutions. The increasing adoption of solar photovoltaic (PV) technology is underpinned by its technical maturity, cost competitiveness, and strong alignment with global climate objectives. Advancements in cell efficiency, streamlined manufacturing processes, and enhanced system integration have contributed to a consistent decline in the levelized cost of electricity from solar PV, positioning it as a viable alternative to traditional energy sources. In addition, the compatibility of solar PV systems with battery storage solutions and smart grid infrastructure further strengthens their relevance and scalability across both developed and emerging economies, supporting a more resilient and sustainable energy ecosystem.

Backed by supportive government policies, growing corporate sustainability commitments, and rising levels of investment, solar PV has firmly established its role as a foundational element in the global renewable energy transition. Looking ahead, the global solar PV market is projected to reach USD 451.23 Billion by 2034, growing at a compound annual growth rate of 9.64% between 2025 and 2034.

Indian renewable energy sector overview

India is set to witness the highest growth in energy demand globally, driven by its population scale, economic progress, and urbanization. To meet this rising demand sustainably, the country has placed renewable and low-carbon energy at the core of its strategy, with targets to achieve net zero emissions by 2070 and source 50% of its electricity from renewables by 2030. As energy demand is projected to reach 15,820 TWh by 2040, renewables will play a pivotal role in ensuring a secure and self-reliant energy future. India, currently ranked fourth globally in renewable energy capacity, recorded its highest-ever annual addition of 29.52 GW in FY 2024–25, taking the total installed capacity to 220.10 GW. This progress reinforces its commitment to reaching 500 GW of non-fossil fuel-based capacity by 2030 and advancing the global energy transition.

With strong government support and improving project economics, Indias renewable energy sector has become an increasingly attractive investment opportunity. A growing shift in public perception—driven by greater awareness of the environmental impact of fossil fuels and the benefits of clean energy—is playing a key role in accelerating market growth. Educational initiatives, media coverage, and advocacy have deepened public understanding of renewable technologies, leading to broader adoption of solutions like rooftop solar systems and green power plans. This rising grassroots demand is fostering a supportive market environment and further encouraging investment and expansion across the sector.

(Source: IBEF, Press Information Bureau, IMARC)

In FY 2024–25, Indias solar energy sector achieved a historic milestone with the addition of approximately 24.5 GW of new capacity—the highest annual installation to date. This growth was predominantly driven by utility-scale projects, underscoring strong investor confidence in the sectors long-term potential. Rooftop and distributed solar also saw robust uptake, bolstered by flagship government schemes such as the PM Surya Ghar Muft Bijli Yojana and PM-KUSUM. Simultaneously, India witnessed a manufacturing breakthrough, with solar module production capacity increasing to 74 GW and PV cell capacity reaching 25 GW, backed by the Production-Linked Incentive (PLI) scheme. The commissioning of the countrys first ingot-wafer manufacturing unit further advanced domestic value chain integration.

The sector also made significant progress in diversifying its project portfolio, with nearly half of new tenders involving hybrid solar-wind-storage systems. Battery storage costs declined substantially, making solar-plus-storage solutions more financially viable and increasingly comparable to traditional coal-based power in terms of tariffs. Indias renewable energy pipeline reached over 234 GW. With sustained policy momentum, expanding domestic manufacturing, and an accelerating shift toward energy storage and hybrid solutions, India remains firmly on track to meet its target of 500 GW of non-fossil fuel capacity by 2030.

As of March 2025, solar energy accounted for approximately 22% of the countrys total installed power generation capacity and contributed 47.6% of the total installed renewable energy capacity. The performance of the solar sector continues to strengthen Indias progress toward achieving its 500 GW non-fossil fuel capacity goal by 2030, while also creating opportunities for technological innovation, job creation, and green infrastructure development.

India has witnessed remarkable growth in solar energy, with the segment contributing the most to capacity expansion in FY 2024–25. A total of 23.83 GW was added during the year, significantly up from

15.03 GW in the previous year. As a result, the countrys total installed solar capacity has reached 105.65 GW, a substantial rise from just under 3 GW in 2014. Notably, India surpassed Japan in 2023 to become the third-largest solar power generator in the world, underscoring its growing influence in the global clean energy transition.

Outlook

The governments commitment to achieving net-zero emissions by 2070 and securing 50% of electricity from renewables by 2030 sets a clear roadmap for sectoral development. With the total installed renewable energy capacity rising to 220.10 GW as of FY 2024–25, up from 198.75 GW a year earlier, India continues to make consistent strides toward its 500 GW non-fossil fuel target by 2030.

Sectorial growth drivers

Foreign Direct Investment inflow: India has continued to attract significant foreign investment in its solar energy sector, with total FDI inflow reaching USD 3.4 Billion over the past three financial years. This steady inflow reflects growing investor confidence in the sectors long-term potential, supported by a stable policy environment, expanding infrastructure, and ambitious national targets. The liberalised investment regime allowing 100% FDI under the automatic route has enhanced Indias position as a preferred destination for global green capital.

Urban population growth and demand outlook: Indias urbanisation trend presents a structural driver for renewable energy growth. The urban population is projected to increase to 814 Million by 2050, necessitating a robust and sustainable energy framework. As cities expand and energy consumption intensifies, renewable sources—particularly solar—are expected to play a central role in ensuring energy security, reducing emissions, and supporting sustainable urban development.

Low maintenance advantage: Solar power systems continue to offer a competitive advantage through low maintenance requirements. With biannual cleaning and inverter replacements typically required every 5–10 years, operational costs remain minimal. This cost-efficiency has strengthened the viability of solar adoption across both residential and commercial segments, contributing to improved project returns and customer satisfaction.

Abundant solar resource availability: Indias geographic advantage, with over 330 sunny days annually, translates to a solar energy potential exceeding 5,000 trillion kWh per year—well above the countrys total annual energy consumption. This natural endowment positions India as one of the most favourable regions globally for harnessing large-scale solar energy, offering an unparalleled opportunity for long-term clean energy deployment.

Renewable energy growth strategy: Indias commitment to expanding its renewable energy portfolio remains resolute. The national target of 500 GW of non-fossil fuel-based capacity by 2030 has catalysed large-scale investments across solar, wind, and hydropower. This strategic push is aligned with global climate objectives and national development priorities, unlocking multiple avenues for innovation, investment, and sustainable growth.

Policy and regulatory support: Policy frameworks such as the National Electricity Plan 2024 (NEP14) underscore the governments vision to transition to a low-carbon energy mix. The plan outlines a roadmap to reduce coals share in total power generation from over 70% to 50% by 2032, with solar energy playing a pivotal role in this transformation. This progressive policy landscape continues to underpin industry stability and investment appetite.

Energy storage integration: Energy storage technologies, particularly battery systems, are gaining traction as a key enabler for solar energy reliability. With storage costs steadily declining, solar installations are increasingly integrating battery solutions to store excess energy and balance supply during non-peak sunlight hours. This evolution is enhancing system flexibility, supporting grid resilience, and enabling a more stable transition to renewables.

Rising adoption across segments: The uptake of solar energy has expanded significantly across residential, commercial, and industrial segments. Declining installation costs, coupled with favourable subsidies and financing options, have accelerated the adoption of rooftop solar systems. Commercial and institutional consumers, in particular, are increasingly leveraging solar to optimise energy costs, contributing to sectoral growth and environmental stewardship.

Environmental imperatives and climate goals: The global urgency to mitigate climate change and reduce dependence on fossil fuels is driving a shift towards clean energy. Indias focus on renewable energy is deeply aligned with economic and environmental considerations, offering a sustainable pathway to address the depletion of non-renewable resources while enhancing energy independence.

Technological innovation and industrial impact: The widespread adoption of solar energy has spurred technological advancement and industrial development. Innovations in panel efficiency, floating solar, hybrid systems, and smart inverters are reshaping the landscape of clean energy in India. Continued R&D investments are expected to unlock further efficiencies, reduce costs, and reinforce the sectors role in powering Indias sustainable growth.

Battery Energy Storage System (BESS) demand: As Indias renewable energy capacity expands, Battery Energy Storage Systems are becoming enablers of the clean energy transition. As of 2024, Indias installed capacity for BESS stood at approximately 341 MWh, a sharp increase from 51 MWh in 2023.

SWOT analysis

Sectoral strengths

India has set ambitious national goals, including 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070.

Strong policy support exists through initiatives like NEP 2024, PM-KUSUM, the

PLI Scheme, and the PM Surya Ghar Muft Bijli Yojana.

Indias solar module manufacturing capacity has surged to 100 GW over the past two years boosted by schemes like the Production Linked Incentive (PLI) and the Approved List of Models and Manufacturers (ALMM).

The country benefits from abundant solar resources, with over 330 sunny days annually and solar potential exceeding 5,000 trillion kWh per year.

Indias installed renewable energy capacity reached 220.10 GW in FY 2024–25, positioning it as the third-largest solar power generator globally.

The solar sector attracted USD 3.4 Billion in FDI over the past three years, supported by a 100% FDI policy under the automatic route.

Urbanization is driving sustained energy demand, with the urban population expected to reach 814 Million by 2050.

Sectoral weaknesses

In 2024, 8.5 GW of solar tenders remained under-subscribed, reflecting concerns about project viability and regulatory clarity.

The sector is heavily dependent on imported solar modules and components, exposing it to global supply chain risks.

Grid infrastructure and energy storage systems are still underdeveloped, limiting the integration and reliability of solar power.

Frequent policy changes and regulatory uncertainties hinder long-term planning and discourage private sector participation.

Land acquisition for large-scale solar projects remains a challenge due to high costs, community resistance, and lengthy clearance processes.

Sectoral opportunities

Advancements in solar technologies, such as high-efficiency panels, floating solar, and smart grids, are enhancing performance and reducing costs.

Rooftop and distributed solar systems have significant growth potential, especially in residential, SME, and rural segments.

Falling battery prices are making energy storage solutions more viable, improving grid stability and enabling round-the-clock solar power.

Urban expansion and smart city projects are creating demand for clean, scalable, and decentralized energy solutions.

Supportive government incentives and financing schemes are accelerating solar adoption across commercial and institutional users.

Sectoral threats

Heavy reliance on imported solar equipment makes the sector vulnerable to global supply chain disruptions and price fluctuations.

Land acquisition hurdles and environmental clearance delays can stagger large-scale project development.

Variability in solar irradiation due to climate change can affect power generation consistency and reliability.

Regulatory uncertainties and inconsistent policy implementation create risk for investors and developers.

Limited energy storage deployment hinders the ability to manage intermittency and ensure round-the-clock power supply.

PM-KUSUM: The PM-KUSUM scheme targets the addition of 34.8 GW of solar power capacity by March 2026, with a strong focus on the agricultural sector. It encompasses the installation of decentralized solar power plants, the conversion of diesel-based pumps to solar-powered systems, and the solarization of grid-connected agricultural pumps. A key feature of the scheme is its emphasis on domestic manufacturing, mandating the use of locally produced solar modules, cells, motor pump sets, controllers, and associated systems.

Solar park scheme: In FY 2024–25, a total of 55 solar parks were approved across 13 states, representing a combined sanctioned capacity of approximately 39,958 MW. Of this, solar projects totaling 12,396 MW have already been commissioned during the year, highlighting sustained progress in utility-scale solar infrastructure development across the country. The scheme provides capital financial assistance of up to H20 Lac per MW or 30% of the project cost to support park development.

Renewable Purchase Obligation (RPO): The Renewable Purchase Obligation framework mandates that obligated entities source a minimum portion of their electricity consumption from renewable sources such as solar and wind. For the year 2024, the RPO compliance requirement has been set at 29.92%, and it is slated to increase to 33.01% in 2025, reinforcing the countrys commitment to expanding clean energy adoption.

Anti-dumping duty imposition: India has imposed an anti-dumping duty of up to $664 per tonne on imports of a certain type of solar glass from abroad. It has concluded in its findings that there is a substantial increase in the volume of dumped imports of the glass from these countries in absolute and relative terms.

Muft Bijli Yojana: The Muft Bijli Yojana has made notable progress toward its goal of solarizing one Crore households by March 2027. As of now, over 10 Lac homes have been equipped with rooftop solar systems, contributing to an installed capacity exceeding 3 GW. The scheme promotes rooftop solar adoption by providing subsidies and incentives to households, enabling up to 300 units of free electricity per month, and targets 25–30 GW of residential rooftop installations over the next three years using DCR modules. So far, the scheme has received more than 47.3 Lac applications, with H4,770 Crore disbursed in subsidies to 6.13 Lac beneficiaries, reflecting strong public engagement and effective implementation.

Mandatory storage capacity for solar projects: New solar bids from February 2025 must include 10% energy storage with a two-hour backup to enhance grid reliability, ensuring more stable and continuous power supply from solar installations.

Budgetary allocation for 2025-26

Rooftop solar scheme: In 2024, rooftop solar capacity witnessed a remarkable 53% year-on-year growth, reaching 4.59 GW. This significant increase was driven by declining installation costs and the rollout of the new rooftop solar initiative under Budget 2025–26. The scheme aims to provide free electricity to one Crore households, supported by a substantial investment of H20,000 Crore, thereby promoting household-level energy independence and contributing to national solar targets.

National Green Hydrogen Mission: In the Union Budget 2025–26, H600 Crore was allocated to the National Green Hydrogen Mission, marking a twofold increase from the previous years allocation of H300 Crore. This enhanced funding underscores the governments focus on building a green hydrogen economy as part of its broader decarbonisation strategy.

Increased budgetary allocation: The Ministry of New and Renewable Energy

(MNRE) received a 53% increase in its budgetary allocation, rising from H17,298 Crore in 2024–25 to H26,549 Crore in 2025–26. In comparison, the Ministry of Coal was allocated H501 Crore in 2025–26, representing a sharp 255% increase over the revised estimate of H 141 Crore from the previous fiscal year. This funding shift highlights the governments growing emphasis on renewable energy over conventional fossil fuels.

Grid-based solar power scheme: The Union Budget 2025–26 earmarked H10,000 Crore for the grid-based solar power scheme, demonstrating the governments strong commitment to scaling up utility-scale solar projects. The investment will support the development of large-scale solar parks and enhance grid integration to meet the countrys clean energy targets.

Rationalisation in customs duty: The government has reduced customs duties on vital components such as solar inverters, batteries, and mounting structures. Raw materials crucial for solar panel manufacturing, including silver paste and EVA sheets, have also been exempted from customs duty. In the recent budget, the Basic Customs Duty on solar cells and modules has been cut to 20%. An additional 7.5% Agriculture Infrastructure Development Cess (AIDC) is levied on cells and 20% AIDC on modules. A 10% duty has been imposed on solar glass imports, while duties on key production equipment have been waived to support local manufacturing and maintain a balanced import cost structure. Collectively, these measures are expected to bring down the overall project costs and make solar energy more competitive compared to conventional power sources.

(Source: Press Information Bureau, Business Today, Moneycontrol, ET Energy, PV Magazine, Energetica India, The Hindu, Mercom India, Ministry of New and Renewable Energy, NDTV Profit)

Company overview

Websol Energy System Limited, registered at 52/1, Shakespeare Sarani, Unimark Asian, 8th Floor, Kolkata, West Bengal 700017, has been engaged in the manufacturing and sale of solar photovoltaic cells and modules since 1994.

The Company operates a state-of-the-art manufacturing facility located in the Falta Special Economic Zone in West Bengal, India. Its products cater to a wide range of commercial and industrial applications, serving both domestic and international markets. Over the years, the Company has established a strong presence in the solar energy value chain through consistent product quality and operational excellence.

Financial analysis

The Company reported revenue from operations of H575.5 Crore during FY 2024-25, compared to H25.86 Crore in FY 2023-24.

EBITDA stood at H254.6 Crore for FY 2024-25.

Profit after tax and Earnings per share for FY 2024-25 stood at H154.7 Crore and H3.67 respectively.

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. Actual results could differ materially from those either expressed or implied. Important factors that could make a difference to the Companys operation include among others, economic conditions affecting demand/supply and price conditions, variation in prices of raw materials, changes in Government regulations, tax regimes, economic developments and other incidental factors.