Solarworld Energy Solutions Reports Mixed Q2 FY26 Results Amid Project Execution Challenges

Solarworld Energy Solutions Limited, a leading provider of solar EPC and clean energy solutions in India, has announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amid project execution challenges.

Financial Highlights

For the quarter ended September 30, 2025 (Q2 FY26), Solarworld reported:

Total income of ₹1,407.20 million, down 1.7% year-over-year (YoY)
EBITDA of ₹152.30 million, a significant decrease of 49% YoY
Profit After Tax (PAT) of ₹92.90 million, down 58% YoY

For the first half of FY26 (H1 FY26), the company's performance showed:

Total income of ₹2,212.70 million, up 33% YoY
Revenue from operations at ₹2,061.10 million, a 25% increase YoY
EBITDA of ₹240.70 million, down 35% YoY
PAT of ₹222.00 million, an 11% decrease YoY

Key Performance Metrics

Particulars (₹ Mn)	Q2 FY26	Q2 FY25	YoY Change	H1 FY26	H1 FY25	YoY Change
Total Income	1,407.20	1,431.40	-1.7%	2,212.70	1,667.10	+33.0%
EBITDA	152.30	296.40	-48.6%	240.70	369.20	-34.8%
EBITDA Margin	11.1%	20.9%	-980 bps	11.7%	22.4%	-1,070 bps
PAT	92.90	222.70	-58.3%	222.00	249.20	-10.9%
PAT Margin	6.7%	15.7%	-900 bps	10.8%	15.1%	-430 bps

Business Updates and Future Outlook

Despite the challenging quarter, Solarworld has made significant progress in its expansion and integration efforts:

Successfully commissioned a 1.2 GW G12R solar module manufacturing line.
Prepared for the installation of a 3.4 GW Lithium-ion cell to battery pack, with commissioning targeted for January 2026.
Established a joint venture for a 5 GW junction box line, expected to commence operations by January 2026.
Initiated development of a 1.2 GW solar cell manufacturing facility, projected to be operational by June 2027.
Secured a new EPC project worth ₹8,028.40 million from a leading renewable energy company.

The company's total order book value stood at ₹32,232.66 million as of October 31, 2025, indicating a strong pipeline for future growth.

Management Commentary

Kartik Teltia, MD & CEO of Solarworld Energy Solutions, commented on the results: "The quarter remained relatively subdued, impacted by project execution timelines and softer order inflows. Despite the near-term moderation, our focus continues to be on strengthening execution efficiency and expanding our EPC and manufacturing base."

He added, "With a healthy order pipeline and encouraging industry tailwinds supported by government policies and growing solar adoption, we remain confident of improving momentum in the second half of the year. Our focus remains on operational excellence, timely execution, and sustained value creation for all stakeholders."

Conclusion

While Solarworld Energy Solutions faced challenges in Q2 FY26, the company's strategic initiatives in backward integration and capacity expansion, coupled with a strong order book, position it for potential growth in the coming quarters. Investors and stakeholders will be watching closely to see if the company can capitalize on the favorable industry trends and government support to improve its financial performance in the second half of the fiscal year.

Solarworld Energy Solutions Limited (SESL) has released its financial results for the second quarter, revealing a mixed performance with flat revenue and a significant decline in profitability.

Revenue Remains Steady

For the quarter ended September 30, SESL reported a consolidated revenue from operations of ₹1,378.78 crore, showing a marginal decrease from ₹1,419.42 crore in the same quarter of the previous year. This flat revenue performance indicates a stable demand for the company's products and services in the renewable energy sector.

Profitability Under Pressure

Despite the steady revenue, the company experienced a substantial decline in its profitability metrics:

Metric	Q2	Q2 Previous Year	YoY Change
EBITDA	₹152.00 crore	₹296.00 crore	-48.6%
EBITDA Margin	11.00%	20.90%	-990 bps
Net Profit	₹92.90 crore	₹222.69 crore	-58.3%

The significant drop in EBITDA and net profit suggests that the company faced challenges in maintaining its operational efficiency and managing costs during the quarter.

Segment Performance

SESL operates in two main segments:

Engineering, Procurement, and Construction (EPC) Contracts
Manufacturing

The EPC segment continued to be the primary revenue driver, contributing ₹1,268.10 crore to the total revenue. However, the newly commenced manufacturing segment reported a loss of ₹67.32 crore, impacting the overall profitability.

Balance Sheet Highlights

As of September 30, SESL's balance sheet showed:

Total assets: ₹12,976.43 crore
Total equity: ₹7,493.18 crore
Cash and cash equivalents: ₹4,925.44 crore

The company's strong cash position may provide a buffer against the current profitability challenges and support future growth initiatives.

Recent Developments

SESL completed its Initial Public Offering (IPO) on September 30, raising ₹4,900 crore.
The company incorporated a new joint venture, Zentrix PV Labs Private Limited, focusing on manufacturing activities in the renewable energy sector.
A notice from SJVN Green Energy Limited has extended the suspension of certain EPC contracts until December 31, due to land-related issues.

Outlook

While Solarworld Energy Solutions maintains a stable revenue base, the significant decline in profitability may raise concerns among investors. The company's expansion into manufacturing and recent capital raise through its IPO could potentially provide avenues for future growth and efficiency improvements. However, the extended suspension of some EPC contracts and the losses in the manufacturing segment present challenges that management will need to address in the coming quarters.