Indosolar reported a significant contraction in second-quarter earnings for FY27, with profit after tax dropping to ₹5.02 crore from ₹46.34 crore in the corresponding period last year.

The decline reflects a simultaneous squeeze on both the top line and profitability metrics. Revenue from operations stood at ₹155.59 crore, down from ₹202.55 crore recorded in Q2 of the previous fiscal year. This reduction in sales volume directly impacted operating leverage, causing the EBITDA margin to shrink drastically compared to the year-ago quarter.

Financial Performance Overview

The company's financial results for the quarter highlight a steep deterioration in operational efficiency alongside reduced revenue generation. The table below summarizes the key performance indicators:

What the Numbers Show

A divergence between revenue and profit decline is evident in the data. While revenue fell by approximately 23%, Profit After Tax plummeted by nearly 89%. This disproportionate drop indicates that fixed costs likely remained static while variable income decreased, leading to severe operating deleverage. The margin compression suggests that the cost structure did not scale down proportionally with the reduced revenue base.

Operational Highlights and Industry Context

Module production stood at 148 MW in Q2FY27 as compared to 244 MW in Q2FY26. Module sales declined further to 98 MW from 249 MW in the year-ago quarter. The company attributed this performance to an evolving regulatory landscape, geopolitical uncertainty, elevated raw material costs, and lower capacity utilisation across the solar manufacturing industry. Additionally, Indosolar noted a strategic transition of a major share of its volumes from tolling to owned manufacturing.

Balance Sheet and Cash Flow Dynamics

The company's balance sheet shows a substantial shift in asset composition. Inventories surged to ₹22.20 crore as of September 30, 2026, up from ₹2.11 crore at March 31, 2026. Conversely, trade receivables dropped sharply to ₹1.63 crore from ₹20.96 crore over the same period.

Cash and cash equivalents increased significantly to ₹8.12 crore, driven by positive operating cash flows of ₹7.96 crore during the half-year ended September 30, 2026. This liquidity build-up contrasts with the operational profit decline, suggesting improved collection efficiency or inventory financing structures despite lower sales volumes.

Strategic Updates

During the reporting period, the Board of Directors approved a draft Scheme of Amalgamation on September 23, 2026. Under this scheme, Indosolar Limited will be amalgamated with Waaree Energies Limited. Upon the scheme becoming effective, Indosolar Limited shall stand dissolved without being wound up.

Jignesh Rathod, Director and Chief Executive Officer, stated that the proposed amalgamation marks an important strategic milestone. He noted that closer integration with Waaree's manufacturing ecosystem could create operational synergies and enhance competitiveness.

Indosolar shareholders approved all five resolutions at the company’s 17th annual general meeting held on August 31, 2026. The meeting, conducted via video conferencing, saw a total of 31,219,321 votes polled across ordinary and special resolutions.

The promoter group, holding 31,173,505 shares, cast 100% of its votes in favor of adopting the audited financial statements for FY26 and appointing Mr. Hitesh Pranjivan Mehta as a director retiring by rotation. Public institutional investors also voted unanimously for these items.

Resolution Outcomes

The special resolution to appoint Mr. Niles Bhogilal Gandhi as an independent director for a second term received 99.96% support from votes polled. The board also secured approval for the remuneration of cost auditors M/s N. Ritesh & Associates for FY27.

Promoter Abstention on Related Party Transactions

For the resolution approving material related-party transactions for FY27, the promoter group abstained from voting, as required by regulatory norms. Consequently, the outcome was determined solely by public shareholders. Public institutions voted 100% in favor, while public non-institutions supported the resolution with 59.74% of their polled votes.

What the Numbers Show

Promoter participation was absolute for non-conflicted resolutions, with 100% of held shares (31,173,505) casting votes in favor. In contrast, retail and non-institutional public participation remained low, accounting for only 0.34% of outstanding shares polled. Despite this low turnout among non-institutional public shareholders, dissenting votes constituted roughly 32-36% of the polled votes in this category across most resolutions, indicating active engagement from those who did vote.