Solarworld Energy Solutions Secures Major Battery Storage Contract in Gujarat

1 min read Updated on 09 Dec 2025, 02:54 PM

Reviewed by

Jubin VScanX News Team

Overview

Solarworld Energy Solutions Limited has signed a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited. The contract is for a 200MW/400MWh Battery Energy Storage Systems project in Gujarat, with a duration of 12 years. This agreement was secured through a tariff-based competitive bidding process and represents a significant step in India's renewable energy sector. The project aims to enhance grid stability and support the integration of renewable energy sources.

*this image is generated using AI for illustrative purposes only.

Solarworld Energy Solutions Limited, a key player in the renewable energy sector, has made a significant stride in the energy storage market. The company recently inked a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited, marking a substantial development in India's green energy landscape.

Contract Details

Parameter	Details
Project Capacity	200MW/400MWh Battery Energy Storage Systems
Location	Gujarat
Contract Duration	12 years
Awarding Entity	Gujarat Urja Vikas Nigam Limited
Bidding Process	Tariff-Based Competitive Bidding-Phase VI

Strategic Implications

This agreement represents a notable advancement in India's push towards sustainable energy solutions. The 200MW/400MWh Battery Energy Storage Systems (BESS) project in Gujarat is poised to play a crucial role in stabilizing the grid and facilitating the integration of renewable energy sources.

Market Position

The successful securing of this contract underscores Solarworld Energy Solutions Limited's growing prominence in the energy storage sector. As a domestic entity awarded this significant project, the company is well-positioned to contribute to and benefit from India's evolving energy infrastructure.

Long-term Outlook

With a 12-year contract duration, this agreement provides Solarworld Energy Solutions with a stable, long-term revenue stream. It also aligns with India's broader goals of enhancing grid reliability and supporting the transition to cleaner energy sources.

This development may signal increased investor interest in companies specializing in energy storage solutions, as the sector becomes increasingly vital in the context of renewable energy integration and grid modernization efforts.

Investors and market watchers will likely keep a close eye on Solarworld Energy Solutions Limited's execution of this project, as it could set a precedent for future large-scale energy storage initiatives in India.

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.