Solex Energy Reports Q2 EBITDA Of ₹26.69 Crore As EBITDA Margin Contracts To 9.79%

Market snapshot: Solex Energy Limited reported a Q2 EBITDA of ₹26.69 crore, up from ₹18.59 crore in the corresponding quarter of the previous fiscal year. However, its operating EBITDA margin compressed by 220 basis points YoY to 9.79% from 11.99%.

Data Snapshot

• Q2 EBITDA reached ₹26.69 crore compared to ₹18.59 crore in the prior-year period, representing a 43.57% YoY increase.
• Q2 EBITDA margin contracted by 220 basis points YoY to 9.79% from 11.99% in the previous-year quarter.
• Full-year FY26 revenue reached ₹1,621.1 crore with EBITDA of ₹186.7 crore and PAT of ₹98.3 crore.

What's Changed

• Q2 EBITDA expanded by 43.57% YoY (derived: ₹26.69 crore vs ₹18.59 crore).
• Q2 EBITDA margin contracted to 9.79%, down 220 basis points from 11.99% YoY.

Key Takeaways

• Operational scale generated absolute EBITDA growth of ₹8.1 crore YoY.
• Margin dilution indicates higher operating expenses during ongoing module production expansion.
• Order execution remains backed by a strong project pipeline exceeding ₹3,400 crore.

SAHI Perspective

The expansion in absolute operating profit highlights strong revenue execution momentum in module manufacturing. However, the 220 bps margin compression underscores cost pressures during capacity scaling and product transitions to TOPCon technology.

Market Implications

Investors should monitor whether operational efficiencies from the 4 GW Tadkeshwar module facility can stabilize operating margins back above 11% in subsequent quarters.

Trading Signals

Market Bias: Neutral

Operating profit grew 43.57% YoY to ₹26.69 crore, but EBITDA margin contraction to 9.79% balances top-line gains against operational cost pressures.

Overweight: Solar Equipment Manufacturing, Renewable Infrastructure

Trigger Factors:

• Q2 detailed net profit (PAT) and revenue disclosures
• Margin stabilization at the 4 GW Tadkeshwar manufacturing facility
• Execution pace of the ₹4,000 crore Gujarat expansion MoU

Time Horizon: Near-term (0-3 months)

Industry Context

India's solar PV manufacturing sector is scaling aggressively under ALMM guidelines and domestic content requirements. Producers face short-term margin fluctuations due to component price volatility and setup costs for integrated solar cell and BESS capacity.

Key Risks to Watch

• Raw material input price fluctuations impacting solar module manufacturing costs.
• Execution delays in backward integration into solar cell manufacturing.
• Working capital intensity from rapid capacity expansion.

Recent Developments

In September 2026, Solex Energy outlined a ₹4,000 crore expansion roadmap through FY30 targeting 5.2 GW solar cell capacity and BESS manufacturing, following dual listing on BSE and NSE.

Closing Insight

While absolute EBITDA growth demonstrates strong execution capacity, margin recovery will depend on integrated solar cell backward integration and operational efficiency.

High Performance Trading with SAHI.