Multibagger solar stock in focus as company announces Rs 3,000 crore business expansion & 1:10 stock split

On Tuesday, shares of Websol Energy System Ltd plunged 0.31 per cent to Rs 1,338.95 per share from its previous closing of Rs 1,343.05 per share. The stock’s 52-week high of Rs 1,891.10 per share and its 52-week low is Rs 802.20 per share.

Websol Energy System's Board of Directors has approved a major expansion plan to add 4 GW of solar cell and 4 GW of solar module capacity through a wholly-owned subsidiary. The expansion, which will be carried out in two phases, will be a total investment of approximately Rs 3,000 crore. This new capacity will be based on Topcon technology, a more advanced form of solar cell technology and will add to the company's existing 600 MW solar cell and 550 MW solar module capacity.

The expansion will be executed in two phases: Phase III will add 2 GW of solar cells and 2 GW of solar modules capacity by June 2027 and Phase IV will add an additional 2 GW of solar cells and 2 GW of solar modules capacity by June 2028. This aggressive expansion is in response to the rapidly increasing demand for solar power in India and will be financed through a combination of internal accruals and financial institution loans.

In addition to the expansion, the company's Board also approved a 1:10 stock split, pending approval from shareholders at the upcoming Annual General Meeting on September 29, 2025. This move is typically done to increase the number of shares outstanding and make them more accessible to a wider range of investors, potentially boosting liquidity.

About the Company

Websol Energy System, an early Indian manufacturer of solar cells and modules, specialises in high-efficiency Mono PERC technology. The company primarily supplies solar cells domestically to meet local content requirements and markets its modules both in India and abroad. Located in West Bengal, its facility has a current capacity of 600 MW for solar cells and 550 MW for modules, with an additional 600 MW expected to start production in October 2025. By producing both cells and modules in-house, Websol ensures strong supply chain control and flexibility.

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According to Quarterly Results, the net sales increased by 96 per cent to Rs 219 crore and net profit increased by 191 per cent to Rs 67 crore in Q1FY26 compared to Q1FY25. In its annual results, the net sales increased by 2,122 per cent to Rs 575.5 crore in FY25 compared to FY24.  The company reported a net profit of Rs 154.7 crore in FY25 compared to a net loss of Rs 121 crore in FY24, an increase of 228 per cent.

In June 2025, FIIs increased their stake to 4.39 per cent and DIIs increased their stake to 0.44 per cent compared to March 2025. The company has a market cap of Rs 5,600 crore. The stock is up by 67 per cent from its 52-week low of Rs 802.20 per share and has given multibagger returns of 6,600 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.