Solex Energy has secured a new work order worth ₹194.14 crore for the supply of TOPCon solar PV modules (TOPCon Bifacial Glass to Glass Solar PV Modules) to domestic entities operating in the power and electricity sector. This contract, disclosed on October 6, 2026, adds to the company's recent momentum in securing large-scale domestic contracts.

ORDER IN FINANCIAL CONTEXT

The ₹194.14 crore order value is approximately 47.8% of the company's average quarterly revenue of ₹406.40 crore. When combined with previously disclosed backlog, the total disclosed order book stands at ₹1,208.91 crore across 9 orders in the last 3 fiscal quarters. This updated backlog provides coverage of 2.97 quarters of average quarterly revenue, or 0.74 years of annual revenue at the current run-rate.

COMPANY ORDER TRACK RECORD

Order inflow velocity remains high with this latest win. The most recent quarter now sees four orders totaling ₹346.06 crore, while the previous quarter recorded an inflow of ₹862.85 crore across five orders. The current order size is comparable to other significant domestic contracts but remains smaller than the ₹628.37 crore global order secured earlier.

EXECUTION AND REVENUE QUALITY

Revenue recognition has accelerated sharply in recent quarters. Q4FY26 showed a substantial jump in both top-line and bottom-line figures compared to prior periods. Operating profit margins have expanded, reaching 11.11% in the latest reported quarter. There are no net losses or negative operating margins in the recent quarterly data, signaling improving execution efficiency.

REVENUE GROWTH: ORDER WINS TRANSLATING TO REVENUE

As Solex Energy has sustained order wins, with a major inflow of ₹628.37 crore in Q2FY27, its annual revenue has grown from ₹664.80 crore in FY25 to ₹1621.90 crore in FY26, representing a YoY growth of 144.0% based on the latest annual data. This rapid expansion suggests that past order conversions are effectively driving top-line momentum.

WORKING CAPITAL AND EXECUTION CAPACITY

The balance sheet shows a current ratio of 1.23x, indicating adequate short-term liquidity to manage immediate obligations. However, the total liabilities to equity ratio is elevated at 3.61x. This figure includes trade payables and other non-debt liabilities, as the source data does not isolate interest-bearing debt. Operating cashflow was positive at ₹200.70 crore in FY26, suggesting that the business is generating cash to fund operations and growth, likely due to working capital requirements for inventory and receivables being managed better than in previous years.

WHAT THE NUMBERS SHOW

The new ₹194.14 crore order is more than 14 times larger than the immediately preceding ₹13.16 crore order disclosed earlier in the same quarter. This step-change suggests a shift towards larger-scale domestic contracts or a consolidation of demand from key clients, potentially improving operational leverage if executed efficiently. The combined Q3FY27 inflows of ₹346.06 crore already exceed the average quarterly revenue, indicating strong forward-looking revenue visibility.

WHAT TO WATCH

• Execution rate: Monitor whether the large ₹628.37 crore backlog and new ₹194.14 crore order convert to revenue at an accelerating pace in upcoming quarters.
• OPM trajectory: Watch if operating profit margins on new orders sustain the 11%+ levels seen in recent quarters.
• Cash conversion: With positive operating cashflow in FY26, track improvements in free cashflow as the revenue base expands.
• Client concentration: Assess if the reliance on a few large entities for order inflows poses any counterparty risk.

KEY OBSERVATIONS

• Contract structure: This is a confirmed work order for solar modules. Revenue recognition can begin as per the terms of the order.
• Leverage flag: Total Liabilities/Equity of 3.61x; balance sheet carries elevated liabilities, and ability to fund working capital for the existing backlog should be monitored.
• Cash conversion: Operating cashflow of ₹200.70 crore in FY26; backlog is converting to cash efficiently, supporting the revenue base expansion.

Solex Energy Limited reported a 143.9% rise in FY26 revenue to ₹16,211 million, driven by strong demand across the solar value chain. Profit after tax reached ₹983 million, while order visibility surpassed ₹34,000 million.

The company outlined an aggressive expansion plan during its 12th Annual General Meeting held on September 22, 2026. Chairman and Managing Director Dr. Chetan Shah announced an investment programme of approximately ₹40,000 million between FY27 and FY30. This capital allocation aims to build 2.2 GW of cell capacity by FY28, scaling to 5.2 GW by early FY29, alongside establishing 5 GWh of Battery Energy Storage Systems (BESS) capacity by FY29.

Strategic expansion and global footprint

The management emphasized a shift from pure module manufacturing to integrated capabilities, including solar cells and energy storage. The move into cell manufacturing is intended to enhance supply chain control and cost efficiency, supported by the Approved List of Models and Manufacturers (ALMM). The BESS initiative addresses the growing need for reliable power delivery beyond generation.

Beyond domestic operations, Solex plans to expand its global presence through entities in Europe and the USA. These initiatives are designed to position the company as a trusted global solar manufacturing brand, leveraging India’s manufacturing talent to serve international customers seeking diversified supply chains.

Financial performance highlights

FY26 marked a significant milestone for the company, with financial metrics reflecting substantial operational scale-up. The following table summarizes key financial figures disclosed during the meeting:

The company targets a revenue potential of more than ₹45,000 million by FY28, contingent on execution of the planned capacity additions.

Shareholder approvals and governance

Shareholders approved several critical resolutions at the virtual meeting, conducted via Video Conferencing. Key approvals included:

• Declaration of a final dividend of ₹0.55 per equity share for FY26.
• Re-appointment of Dr. Chetan Shah as Chairman and Managing Director.
• Increase in borrowing limits under Section 180(1)(c) of the Companies Act, 2013.
• Loans and guarantees to subsidiaries Solex Green Energy Private Limited and Solex New Energy Private Limited.

Voting results indicated strong shareholder support, with the dividend resolution passing with 100% votes in favour. The borrowing limit increase received 92.21% support, while remuneration revisions passed with 91.07% approval.

What the numbers show

The combination of ₹16,211 million revenue and ₹34,000 million order visibility indicates a forward-looking pipeline more than double the current annual revenue run-rate. This high book-to-bill ratio supports the rationale behind the ₹40,000 million capex plan, suggesting that demand visibility is sufficient to justify significant capacity expansion despite the inherent execution risks associated with large-scale infrastructure projects.