Solarworld Energy Solutions Limited has received a significant credit rating upgrade from CRISIL Ratings, reflecting the company's improved business fundamentals and strong growth trajectory in the solar energy sector. The rating agency has enhanced the company's credit profile while increasing the total rated bank facilities, signaling confidence in the solar EPC company's operational and financial capabilities.

Rating Enhancement Details

CRISIL Ratings has upgraded Solarworld Energy Solutions' credit ratings across both long-term and short-term facilities. The comprehensive rating action demonstrates the company's strengthened credit profile and enhanced operational performance.

The rating upgrade reflects significant improvements in the company's business risk profile, supported by a healthy order book and strong operating efficiency. CRISIL expects the company's revenue to increase at a compound annual growth rate of 85-87% through fiscal 2026, with full-year revenue projected at around Rs 1,400 crore compared to Rs 545 crore in fiscal 2025.

Strong Order Book and Revenue Visibility

The company's robust order book position provides substantial revenue visibility for the medium term. As of December 31, 2025, Solarworld Energy Solutions maintains an order book worth Rs 2,662 crore, representing 4.8 times the revenue achieved in fiscal 2025. This strong order pipeline ensures sustained business growth and supports the improved credit rating.

The group has diversified its order book by undertaking Battery Energy Storage System (BESS) orders in fiscal 2026, expanding beyond traditional solar EPC services. Operating income is expected to grow at a healthy 20-25% in fiscal 2027, with operating profitability maintained at around 12% in fiscal 2026 and over the medium term.

Capacity Expansion and Manufacturing Initiatives

Solarworld Energy Solutions is undertaking significant capital expenditure to expand its manufacturing capabilities across multiple product lines. The company is establishing a 5-gigawatt junction box manufacturing line and a 3.4-GW battery energy storage system container line, expected to commence operations in March 2026.

The capex for the junction box line and BESS container line is being funded through internal accruals, demonstrating the company's strong cash generation capabilities. The backward integration strategy is expected to provide operational benefits and margin improvements.

Financial Strengthening Through IPO

The company's financial risk profile has been significantly strengthened following a successful initial public offering in September 2025. The IPO raised Rs 490 crore, comprising Rs 440 crore fresh issue and Rs 50 crore offer for sale, providing substantial capital for growth initiatives.

The enhanced financial position supports the company's expansion plans, including a greenfield capacity expansion in Madhya Pradesh for a 1.2 GW backward integrated cell line. The total project cost of Rs 570 crore will be funded through 25-26% debt and the balance via IPO proceeds.

Bank Facility Details

The upgraded credit ratings apply to enhanced bank facilities across multiple lending institutions. The company maintains relationships with leading banks for both fund-based and non-fund based facilities.

The rating upgrade and facility enhancement reflect CRISIL's confidence in the company's ability to service its debt obligations while pursuing aggressive growth plans. The stable outlook indicates expectations of sustained operational performance and financial stability over the rating horizon.

Solarworld Energy Solutions Limited has announced a strategic partnership through its wholly owned subsidiary ZNShine Solarworld Private Limited, which has signed a non-binding Memorandum of Understanding with Intelenergi Global Private Limited on February 24, 2026. The agreement establishes a framework for cooperation in the marketing and supply of solar photovoltaic modules manufactured at ZNShine's Roorkee facility.

Agreement Overview

The MoU outlines mutual understanding between the parties for cooperation in marketing and supply of solar photovoltaic modules, with an indicative capacity of 25 MW during the validity period. This domestic partnership aims to strengthen ZNShine's market presence in India's retail solar segment while exploring export opportunities.

Key Terms and Responsibilities

Under the agreement, both parties have defined roles and responsibilities to ensure effective collaboration in the solar module business.

ZNShine's Commitments:

• Offer solar modules for marketing to IGPL
• Supply modules manufactured at Roorkee facility
• Facilitate exports to approved markets
• Allocate production subject to confirmed Purchase Orders

IGPL's Responsibilities:

• Market modules in retail channel across India
• Develop export opportunities in approved markets
• Provide quarterly demand forecasts
• Ensure compliance with brand and technical guidelines

Transaction Details

The company has confirmed that this agreement does not involve any related party transactions and will be conducted at arm's length. No shareholding exists between the parties, and there are no relationships with promoter or promoter group entities. The consideration details will be governed by commercial terms outlined in the MoU.

Regulatory Compliance

Solarworld Energy Solutions Limited has made this disclosure pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and SEBI Master Circular dated January 30, 2026. The company has informed both BSE Limited and National Stock Exchange of India about this strategic partnership to ensure full regulatory compliance and transparency with stakeholders.