Himalayan Solar Limited, an integrated turnkey solar energy solutions provider based in Panchkula, Haryana, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering on the SME exchange. The company, incorporated in 2015, specializes in the design, manufacturing, supply, installation, and commissioning of solar water pumping systems, rooftop power systems, and solar inverter charge systems.

About the Company

Himalayan Solar operates as a full-stack Engineering, Procurement, and Construction (EPC) player across the solar value chain. Its core business segments include Solar Water Pumping Systems (SWPS) deployed under the Government of India's PM-KUSUM Scheme, where it has implemented over 85,000 HP capacity across multiple states. The company also provides Solar Rooftop Power Systems for residential, commercial, and industrial customers, along with integrated solar inverter and battery storage solutions.

A key operational milestone is the company's 60 MW Mono-PERC Solar PV Module manufacturing facility in Karnal, Haryana, which became operational in March 2026. Prior to this transition, the company operated a 40 MW production line for over six years. Himalayan Solar is empanelled with several state government departments, including HAREDA, MSEDCL, MEDA, and PEDA, facilitating its participation in government-backed renewable energy projects across Haryana, Rajasthan, Punjab, and Maharashtra.

Financial Performance

The company has demonstrated robust growth in both top-line revenue and bottom-line profitability over the last two fiscal years. Revenue from operations increased from ₹138.32 crore in FY2024 to ₹170.34 crore in FY2026, representing a cumulative increase of approximately 23.14%. More notably, Profit After Tax (PAT) surged from ₹4.95 crore in FY2024 to ₹20.67 crore in FY2026, reflecting a growth of approximately 317.57%.

The company's balance sheet strengthened significantly during this period, with total equity growing from ₹10.33 crore in FY2024 to ₹46.93 crore in FY2026. The debt-equity ratio improved from 7.15x in FY2024 to 2.37x in FY2026. However, operating cash flows remained negative in FY2024 (-₹5.52 crore) and FY2026 (-₹2.07 crore), indicating substantial working capital consumption despite strong reported profits.

Why the Company Is Raising Funds

The estimated issue size is ₹44.60 crore, derived from the disclosed use-of-proceeds components. The funds are allocated as follows:

• Working Capital Requirements: ₹29.50 crore, accounting for approximately 66% of the identified proceeds. This allocation addresses the capital-intensive nature of EPC project execution.
• Capital Expenditure: ₹12.98 crore for the expansion and upgradation of the manufacturing facility. This includes scaling capacity from 60 MW to 160 MW and incorporating advanced technologies such as Glass-to-Glass (G2G) modules and up to 25 Busbar Solar PV Panels.
• Debt Repayment: ₹2.12 crore for the repayment or pre-payment of outstanding term loan borrowings from ICICI Bank, originally used for production capacity upgrades.
• General Corporate Purposes: The residual amount, subject to a cap of 15% of gross proceeds or ₹10 crore, whichever is lower.

Business Strengths

Himalayan Solar highlights several competitive advantages. The company was ranked among the Top 10 Solar PV Module Manufacturers in 2021 by Industry Outlook magazine and recognized as the 'Best Industrial and Commercial Solar Company' by Industrial Review Magazine. Its management team includes promoter Manjeet Singh, who brings approximately ten years of experience in electrical and solar manufacturing, and COO Mehtab Singh, a former Indian Naval officer who oversees government project operations.

The company holds prestigious quality certifications, including ISO 9001:2015, BIS IS 14286, IEC 61215-1-1:2016, IEC 61701:2011, ISO 14001:2025, and IEC/IS 60529:2001. A strong order book of ₹140.22 crore (₹14,021.69 lakhs) as of July 31, 2026, provides near-term revenue visibility, representing approximately 82.32% of FY2026 revenue from operations.

Key Risks

The DRHP discloses material risks associated with the company's business model. A primary concern is high customer concentration, with the top five customers contributing 99.54% of FY2026 revenue. Additionally, approximately 97.19% of FY2026 revenue was derived from government sector contracts, exposing the company to policy changes, budget allocations, and potential delays in government payments.

Manufacturing concentration is another risk factor, as production is centered at a single facility in Karnal, Haryana. The planned expansion from 60 MW to 160 MW carries execution risks, particularly as firm machinery orders had not been placed as of the DRHP date. Furthermore, the company faces competition from larger domestic and international players in the solar sector, which may impact pricing in government tenders.

Important IPO Dates

The IPO subscription window is scheduled as follows:

• IPO Opening Date: September 25, 2026
• IPO Closing Date: September 29, 2026
• Basis of Allotment: September 30, 2026
• Listing Date: October 5, 2026

Bottom Line

Himalayan Solar Limited presents a growth story marked by significant profit expansion and a strategic shift toward higher-efficiency Mono-PERC and TopCon Bifacial technologies. While the strong order book and government empanelment provide stability, the extreme customer concentration and negative operating cash flows remain critical factors to monitor. The IPO proceeds are strategically directed toward alleviating working capital stress and enabling a more than two-fold increase in manufacturing capacity.