Saatvik Green Energy IPO: Riding India’s Solar Manufacturing Wave - Should You Subscribe?

At a Glance

Company & its business operations

Saatvik Green Energy Limited is among India’s leading solar PV module manufacturers, with 3.80 GW operational module capacity as of March 31, 2025. It supplies high-efficiency Mono PERC and N-TOPCon modules (mono-/bifacial), serving residential, commercial and utility projects. The company also undertakes solar EPC (installed EPC base: 69.12 MW as of March 31, 2025) and provides O&M services, positioning itself as an integrated player. Manufacturing is concentrated at three facilities in Ambala, Haryana; capacity expansion to 4.80 GW is underway, and longer-term plans include integrated cell and module capacities.

Industry outlook

India added 84 GW of solar capacity over Fiscals 2018–2025 (26 per cent CAGR), yet only 15.4 per cent of an estimated 750 GW solar potential is tapped—leaving large Total Addressable Marjet for modules and EPC. CRISIL expects 190–200 GW of renewable additions over Fiscals 2025–2030 (16–17 per cent CAGR), with 28–30 GW of rooftop additions through FY26–FY30 (incl. PM Surya Ghar), expanding addressable demand for domestic modules. Globally, installed solar PV capacity grew at 25 per cent CAGR during 2016–2024, underscoring sustained demand tailwinds.

Objects of the Issue

Repay/prepay certain borrowings of the Company (Rs 10.82 crore).

Invest in wholly-owned subsidiary (SSIPL) to repay/prepay its borrowings (Rs 166.44 crore).

Invest in SSIPL to set up a 4 GW module facility at Gopalpur, Odisha (Rs 477.23 crore)

General corporate purposes.

Financial Performance

Profit & Loss (Rs crore)

Balance Sheet (Rs crore)

Working Capital & Cash Flow

Peer Comparison (Indian Listed Peers)

Source – Screener.in as on September 19, 2025, Note - Based on FY25 Earnings on expanded capital of Saatvik Green Energy

SWOT for investors

Strengths: Large operational capacity (3.80 GW) with high utilisation; Approved List of Models and Manufacturers (ALMM)-approved modules across most capacity; integrated offering (modules + EPC + O&M) and certifications supporting quality exports.

Weaknesses: Ongoing capex and backward-integration plans raise execution and funding risks; dependence on key customers and timely logistics.

Opportunities: India’s large untapped solar TAM and policy push (rooftop/RE additions) could drive sustained module demand; planned Odisha facility scales capacity.

Threats: Competitive intensity (domestic and imports), technology shifts (TOPCon/HJT), and policy changes could pressure pricing/margins.

Outlook and Relative Valuation

Saatvik operates 3.8 GW of solar PV module manufacturing lines and is expanding to nearly 8 GW by FY26. India targets 500 GW renewable capacity by 2030 (adding 200 GW solar in 5 years) amid robust policy support. Global solar installations are projected to exceed 7 TW by 2030, ensuring strong demand, though near-term oversupply could pressure module prices.

Saatvik shows rapid growth (FY25 revenue Rs 2,192 crore, PAT Rs 214 crore) and healthy margins (FY25 ROE 20 per cent, ROCE 31 per cent). At the Rs 465 issue price, it is valued at 27.6× FY25 earnings (post-issue). Also at EV/EBITDA basis the stock at 17.4x simples below peers. This pricing is at a discount to listed module peers Waaree and Premier PE around 45x however the growth number and the return ratio of these peers remains healthy justifying the assigned multiple. Sector-wide, high return ratios and growth rates reflect strong demand, and Saatvik’s valuation multiples sit at the lower end of the industry range though lower return ratio compared to peers but has strong balance sheet with a strong order book and improving EBITDA margins.

Recommendation

Subscribe (Long-Term) – The IPO is attractively valued relative to peers and offers exposure to a fast-growing solar manufacturer. The company’s expanding global sales, technology focus, and robust capacity expansion, supporting long-term prospects. While short-term earnings could be sensitive to industry price competition and policy risks, Saatvik’s strong fundamentals, high return ratios, and the favorable renewable energy outlook make it a compelling long-term bet.