Solarworld Energy Solutions Limited IPO - Fast-Growing Solar EPC Player

24 Sep 2025 , 01:13 PM

Solarworld Energy Solutions Limited is a renewable energy company that designs, builds, and operates solar power plants under both CAPEX and RESCO models. Established in 2013, the company has delivered 46 completed rooftop and ground-mounted projects aggregating approximately 254 MW (AC) / 336 MW (DC). It is currently executing large EPC contracts totaling about 765 MW (AC) / 994 MW (DC), alongside two battery energy storage system (BESS) projects of ~325 MW / 650 MWh. Solarworld serves a diverse mix of public sector undertakings and private commercial & industrial clients, leveraging its in-house engineering, procurement, and construction expertise to offer end-to-end solar solutions across India.

IPO Offer Details:

• Total Offer Size: Up to ₹4,900 million, comprising a fresh issue of equity shares worth up to ₹4,400 million and an offer for sale of up to ₹500 million.

• Selling Shareholders: Pioneer Facor IT Infradevelopers Private Limited (Promoter Selling Shareholder) is offering shares as part of the offer for sale.

• Price Band: ₹333 to ₹351 per Equity Share.

Book‑Running Lead Managers (BRLMs):

• Nuvama Wealth Management Limited
• SBI Capital Markets Limited

Indian Solar Power Industry – A Deep Dive

The Indian solar power industry is now the fastest-growing renewable‑energy segment in the country.  Driven by a combination of aggressive government policies (PLI, RPO, rooftop‑solar incentives, green‑hydrogen push), falling module‑and‑inverter prices, and strong financing availability, the market has moved from a niche, import‑dependent activity to a largely domestically‑sustained ecosystem that spans the entire value chain – from raw‑material production to project delivery, operation & maintenance (O&M) and energy‑storage integration.

Table: Key segments

Key Segment	Past Growth (CAGR)	Future Growth (CAGR)	Comment
Solar PV Installed Capacity (total GW)	≈ 26 % (FY 2023 FY 2025) – capacity rose from 66.78 GW (FY 2023) to 105.65 GW (FY 2025)	≈ 11 12 % (FY 2026 FY 2030) – CRISIL projects 170 180 GW of additions over the next five years (≈ 34 36 GW / yr)	The high historic CAGR reflects the “boom” phase, powered by large-scale utility tenders and rooftop solar subsidies.  The slower but still robust forward-looking CAGR assumes a maturing market, higher baseline capacity, and the gradual shift to higher efficiency cell technologies (TOPCon, HJT).
EPC Services (Revenue)	≈ 20 % (FY 2023, FY 2025) – EPC revenue grew from ₹ 269.2 bn to ₹ 493.8 bn in three fiscal years	≈ 12 % (FY 2026, FY 2030) – as capacity additions moderate, EPC margins tighten and developers increasingly internalise engineering functions	EPC growth is closely tied to capacity additions; the projected slowdown reflects tighter bidding, lower tariffs, and a shift toward in-house EPC by large developers.
O&M Services (Revenue)	≈ 30 % (FY 2023 FY 2025) – O&M revenue rose from ₹ 3.5 bn to ₹ 6.6 bn	≈ 32 34 % (FY 2026 FY 2030) – market size expected to reach ₹ 27 28 bn by FY 2030 (CRISIL)	O&M is a “sticky” revenue stream; as the installed base expands, the proportion of third-party O&M contracts (currently ~45 % of the total O&M market) is set to rise, driving a higher CAGR than EPC.
Solar Module Manufacturing (Value Chain Output)	≈ 15 % (FY 2022 FY 2025) – domestic module output grew from ~63 GW (FY 2024) to ~82 GW (FY 2025)	≈ 15 18 % (FY 2026 FY 2030) – driven by PLI incentives, TOPCon line roll outs, and a gradual reduction in import dependence (import share projected to fall to 8 10 % by FY 2028)	The segment is transitioning from a heavy import model to a more balanced domestic supply chain, with new TOPCon and HJT lines adding premium efficiency capacity.
Battery Energy Storage Systems (BESS) – Project Pipeline	≈ 10 % (FY 2023 FY 2025) – BESS contracts grew from ~₹ 0.5 bn (FY 2023) to ~₹ 1.5 bn (FY 2025)	≈ 20 25 % (FY 2026, FY 2030) – policy mandates (mandatory BESS in solar tenders, VGF targets of 30 GWh by FY 2030) and falling battery pack costs are expected to accelerate deployment	BESS is still nascent but is becoming a critical enabler for solar grid integration; the steep forward CAGR reflects both regulatory push and commercial economics.

Source: RHP

 

• The overall solar ecosystem is expanding at a healthy double-digit pace, but the speed of capacity addition will moderate as the market moves from a “catch‑up” to a “scale‑up” phase.
• EPC revenue growth will decelerate relative to capacity growth because of tighter tariffs and the emergence of in-house EPC capabilities among large developers.
• O&M and BESS represent the fastest‑growing revenue streams, offering higher margin and longer‑term cash‑flow visibility for players that can capture them.
• Manufacturing is shifting toward higher‑efficiency technologies (TOPCon, HJT) and away from import reliance, creating opportunities for domestic equipment suppliers and technology‑transfer partners.

Solarworld Energy Solutions Limited – Company Overview

Solarworld Energy Solutions Limited was incorporated in 2013 and is headquartered in Noida, Uttar Pradesh, India. The company provides end-to-end solar energy solutions, including Engineering, Procurement & Construction (EPC) of utility-scale and captive solar plants, Operations & Maintenance (O&M) services, and the manufacturing of high-efficiency solar cells and modules, notably through its TopCon cell line. The company achieved its first solar EPC project in 2014 with a capacity of 0.5 MW AC/0.5 MW DC, and by 2025, its cumulative installed capacity reached 253.67 MW AC / 336.17 MW DC across northern, central, western, and southern India. Along the way, it has received multiple industry awards, including the “Solar EPC Company of the Year – Uttar Pradesh 2024.”

2. Founding Team & Senior Management

Role	Name	Key Background
Promoter / Managing Director	Kartik Teltia	B.Com (Delhi University); CA (ICAI); MBA (ISB). 10 years in solar energy strategy.
Promoter / Non-Executive Director	Mangal Chand Teltia	B.Com (Rajasthan University).
Promoter – Corporate	Pioneer Facor IT Infradevelopers Pvt Ltd	Founder of the promoter group; holds 39.35 % of equity.
President	Peeyush Salwan	B.E. (Electrical, Rajasthan); PGDM (International Business, B.I.M.T.); Executive cert. (IIM Indore). 14 years in power systems.
Chief Operating Officer	Ashutosh Mishra	B.Tech (Electrical, U.P.T.U.). 7 years in project execution & asset management.
Chief Financial Officer	Mukut Goyal	B.Com (Rajasthan); CA (ICAI). 10 yr in finance & accounting.

Source: RHP

Competitive Positioning

Strengths

• Technology: Early adopter of a Battery Technology called TopCon (planned 1.2 GW facility). In-house R&D focused on high-efficiency modules (Mono PERC, TOPCon, HJT).
• Project Execution: 10+ years EPC track record; > 250 MW installed. Strong supply chain & engineering expertise supporting business expansion.
• Financial Base: Strong promoter backing (≈ 78 % of equity). Access to institutional investors (Value Quest Scale Fund, etc.). No historic rights issue or public issue dilution in the last 5 years.
• Human Capital: Senior management collectively > 30 years experience in solar power, power systems & finance. Permanent employment of KMPs reduces turnover risk.
• Market Presence: Recognised awards (e.g., “Solar EPC Company of the Year”). Presence across multiple Indian regions (north, central, west, south).

Weaknesses

• Newer Technology: Rapid technology shifts (e.g., HJT, perovskite) could make TopCon less competitive. Heavy CAPEX required for technology upgrades.
• High Competition: The Indian solar EPC market is highly fragmented. Competition from large integrated players (Adani, Tata Power, ReNew).
• Regulatory Changes: Exposure to changing renewable energy policies, import duties on modules, and foreign exchange controls for overseas financing.

Financial Profile

Strong revenue growth: The strong revenue growth in FY 2024 was driven by executing a large pipeline of high-value EPC contracts and RESCO projects.  FY 2025’s modest 9 % increase reflects the ramping‑up of those contracts and the first-year contribution of the Ortusun acquisition.

Following is a commentary on revenue growth during FY25 and FY24:

• FY24: Revenue increased 115%. New EPC contracts – a 4,592 mn rupee order book for 100 MW + 260 MW projects (SJVN, NTPC, etc.). RESCO revenue declined from ₹9.03 mn to ₹7.74 mn in FY 2024 and was not a key driver of growth. One-off gains of ₹1.59 mn (investment) and ₹4.98 mn (forex) occurred in FY 2025.
• FY25: Modest revenue growth of 9%. Execution of the 2024–2025 order book – 765 MW of EPC projects under construction (including the 325 MW BE SS pipeline). Acquisition of Ortusun Renewable Power – 100% stake acquired in January 2024 (10 MW). Reclassified as a joint venture in March 2025, with related party sales of ₹110.50 mn contributing to FY 2025 revenue.

 

2. Profit Growth & Margin Expansion

Period	Profit after tax (₹ mn)	YoY Growth	Net margin
FY 2023 → FY 2024	148.4 → 516.9	+248 %	10.2 %
FY 2024 → FY 2025	516.9 → 770.5	+49 %*	14.0 %

Source: RHP

Improving Margins: Overall net margins improved from 10% in FY24 to 14% in FY25. Following were some of the key highlights.

• Scale economies: The EPC contracts signed in FY 2024 were large (average contract size > ₹ 2 bn).  Fixed engineering and procurement costs were spread over a larger revenue base.

Table: Peers Comparison

Name of Company	Revenue from Operations (₹ in million)	P/E	EPS (₹) – Basic	EPS (₹) – Diluted	Closing Share Price as on Sept 1, 2025 (₹)	NAV (₹ per share)
Solarworld Energy Solutions Limited	5,447.65	32.87	10.68	10.68	351*	41.69
Sterling & Wilson Renewable Energy Limited	63,018.60	76.48	3.49	3.49	266.90	42.59
KPI Green Energy Limited	17,354.54	30.57	16.23	16.09	491.95	133.57
Waaree Renewable Technologies Limited	15,977.48	47.32	22.00	21.95	1,038.60	43.64
Oriana Power Limited	9,871.66	29.01	79.52	79.52	2,307.00	254.75

Source: RHP, * – upper end of price band

 

Table 1: KPI Comparison

Company Name	Particulars (Units)	FY 2023	FY 2024	FY 2025	CAGR
Solarworld Energy Solutions Limited	Revenue from Operations (₹ million)	2,324.61	5,010.16	5,447.65	53%
	EBITDA (₹ million)	228.76	710.93	1,067.47	116%
	EBITDA Margin (%)	9.84%	14.19%	19.60%	–
	Profit after tax (₹ million)	148.36	516.91	770.48	128%
	PAT Margin (%)	6.38%	10.32%	14.14%	–
	Debt / Equity Ratio	2.95	0.83	0.37	–
	Return on Equity (RoE) (%)	102.40%	108.25%	40.27%	–
	Return on Capital Employed (RoCE) (%)	38.78%	86.57%	54.53%	–
	Net Working Capital (₹ million)	374.59	732.50	1,211.52	–
	Net Working Capital Days (Days)	59.00	54.00	82.00	–
	Order Book (₹ million)	5,350.06	8,130.41	17,005.51	–
	Contracted Capacity (MW-DC)	168.00	582.00	376 (and 125 MW/250 MWh of BESS)	–
	Commissioned capacity (MW-DC)	105.00	170.00	24.00	–
	Total MW of O&M Portfolio served (MW-DC)	28.00	119.00	299.00	–
Sterling & Wilson Renewable Energy Limited	Revenue from Operations (₹ million)	20,150.10	30,353.70	63,018.60	77%
	EBITDA (₹ million)	(11,299.90)	(225.70)	2,467.30	–
	EBITDA Margin (%)	(56.08%)	(0.74%)	3.92%	–
	Profit after tax (₹ million)	(11,749.60)	(2,107.90)	855.50	–
	PAT Margin (%)	(58.31%)	(6.94%)	1.36%	–
	Debt / Equity Ratio	(8.39)	0.50	0.91	–
	Return on Equity (RoE) (%)	(353.09%)	(58.99%)	8.78%	–
	Return on Capital Employed (RoCE) (%)	(90.98%)	(2.83%)	20.41%	–
	Net Working Capital (₹ million)	12,931.10	8,097.90	6,752.50	–
	Net Working Capital Days (Days)	234.23	97.64	39.11	–
	Order Book (₹ million)	43,870.00	60,230.00	90,960.00	–
	Contracted Capacity (MW-DC)	3,400.00	3,300.00	4,400	–
	Commissioned capacity (MW-DC)	NA	NA	NA	–
	Total MW of O&M Portfolio served (MW-DC)	6,400.00	7,670.00	8,700.00	–
KPI Green Energy Limited	Revenue from Operations (₹ million)	6,437.86	10,239.00	17,354.54	64%
	EBITDA (₹ million)	2,080.03	3,365.38	5,611.70	64%
	EBITDA Margin (%)	32.31%	32.87%	32.34%	–
	Profit after tax (₹ million)	1,096.28	1,616.57	3,252.78	72%
	PAT Margin (%)	17.03%	15.79%	18.74%	–
	Debt / Equity Ratio	2.02	1.00	0.43	–
	Return on Equity (RoE) (%)	53.26%	29.56%	18.77%	–
	Return on Capital Employed (RoCE) (%)	31.11%	26.63%	21.51%	–
	Net Working Capital (₹ million)	778.99	6,166.44	NA	–
	Net Working Capital Days (Days)	44.17	220.42	NA	–
	Order Book (₹ million)	NA	NA	NA	–
	Contracted Capacity (MW-DC)	111+	111.00+	NA	–
	Commissioned capacity (MW-DC)	NA	NA	NA	–
	Total MW of O&M Portfolio served (MW-DC)	NA	523.10	NA	–
Waaree Renewable Technologies Limited	Revenue from Operations (₹ million)	3,509.59	8,765.03	15,977.48	113%
	EBITDA (₹ million)	837.45	2,071.82	3,068.84	91%
	EBITDA Margin (%)	23.86%	23.64%	19.21%	–
	Profit after tax (₹ million)	553.33	1,452.19	2,289.25	103%
	PAT Margin (%)	15.77%	16.57%	14.33%	–
	Debt / Equity Ratio	0.46	0.16	0.06	–
	Return on Equity (RoE) (%)	96.35%	87.66%	65.29%	–
	Return on Capital Employed (RoCE) (%)	117.97%	147.10%	132.19%	–
	Net Working Capital (₹ million)	(350.16)	202.19	50.13	–
	Net Working Capital Days (Days)	NM	8.44	1.15	–
	Order Book (₹ million)	NA	NA	NA	–
	Contracted Capacity (MW-DC)	NA	NA	NA	–
	Commissioned capacity (MW-DC)	295.00	704.00	1,524.00	–
	Total MW of O&M Portfolio served (MW-DC)	480.00+	500.00+	695.00+	–
Gensol Engineering Limited	Revenue from Operations (₹ million)	3,979.70	12,110.80	NA	–
	EBITDA (₹ million)	768.30	2,231.70	NA	–
	EBITDA Margin (%)	19.31%	18.43%	NA	–
	Profit after tax (₹ million)	233.30	782.20	NA	–
	PAT Margin (%)	5.86%	6.46%	NA	–
	Debt / Equity Ratio	2.52	3.69	NA	–
	Return on Equity (RoE) (%)	18.34%	26.66%	NA	–
	Return on Capital Employed (RoCE) (%)	18.26%	23.60%	NA	–
	Net Working Capital (₹ million)	381.00	3,253.30	NA	–
	Net Working Capital Days (Days)	34.94	98.32	NA	–
	Order Book (₹ million)	13,300.00	14,480.00	NA	–
	Contracted Capacity (MW-DC)	NA	NA	NA	–
	Commissioned capacity (MW-DC)	240.00	180.00	NA	–
	Total MW of O&M Portfolio served (MW-DC)	NA	NA	NA	–
Oriana Power Limited	Revenue from Operations (₹ million)	1,347.17	3,828.75	9,871.67	171%
	EBITDA (₹ million)	194.00	807.76	2,344.78	248%
	EBITDA Margin (%)	14.40%	21.10%	23.75%	–
	Profit after tax (₹ million)	105.63	543.51	1,585.54	287%
	PAT Margin (%)	7.84%	14.20%	16.06%	–
	Debt / Equity Ratio	2.22	1.23	0.52	–
	Return on Equity (RoE) (%)	45.69%	60.23%	47.59%	–
	Return on Capital Employed (RoCE) (%)	31.11%	43.69%	46.25%	–
	Net Working Capital (₹ million)	99.01	376.85	NA	–
	Net Working Capital Days (Days)	26.82	36.02	NA	–
	Order Book (₹ million)	NA	NA	NA	–
	Contracted Capacity (MW-DC)	NA	NA	NA	–
	Commissioned capacity (MW-DC)	NA	NA	200+	–
	Total MW of O&M Portfolio served (MW-DC)	NA	NA	NA	–

Source: RHP