Solarworld Energy Solutions IPO: Should You Subscribe?

At a Glance

Company and Business Operations

Solarworld Energy Solutions Ltd is an EPC-led solar solutions provider operating under CAPEX (Capital Expenditure) and RESCO ( Renewable Energy Service Company) models across nine Indian states. Since 2014, it has executed 46 projects totalling 253.67 MW (AC) / 336.17 MW (DC), and provides O&M services too. As of July 31, 2025, the consolidated order book was Rs 2,528 crore, with EPC, BESS (Battery Energy Storage System) and O&M components, and rooftop portfolio of 39 small installations. Subsidiaries include ZNSHINE Solarworld Pvt Ltd, Kartik Solarworld Pvt Ltd and Solarworld BESS One Pvt Ltd.

Industry Outlook

India added 23.83 GW solar capacity in FY 2025, taking installed solar to 105.65 GW. EPC services for solar were Rs 49,380 crore in FY 2025, up from Rs 26,920 crore in FY 2023 (approx. 36–37 per cent CAGR over two years). O&M services were Rs 660 crore in FY2025. Drivers include tendering momentum, tariff-driven grid parity, subsidies (notably rooftop), ISTS charge waiver and financing availability. CRISIL expects 170–180 GW of Indian solar additions during FY 2026–FY 2030. Globally, supportive policy and tech learning curves sustain multi-year growth.

Objects of the Issue

• Investment in subsidiary Kartik Solarworld Pvt Ltd for part-financing 1.2 GW TopCon cell facility: Rs 332.39 crore
• General corporate purposes: Rs 22.58 crore

SWOT Analysis

• Strengths: Established EPC/O&M presence across nine states; robust order book (Rs 2,528 crore) offering revenue visibility; improving profitability.
• Weaknesses: Subsidiaries like ZNSHINE Solarworld, Kartik Solarworld and Solarworld BESS One are newly incorporated with limited operating history; execution/concentration risks in a tender-driven market.
• Opportunities: 170–180 GW India solar additions forecast in FY 2026–FY 2030; entry into BESS; planned 1.2 GW cell manufacturing gives vertical integration optionality.
• Threats: Project delays/cancellations can affect order book realization; policy/tariff changes; working-capital intensity and receivables cycle.

Profit & Loss (Rs crore)

(Source: Company RHP)

Balance Sheet (Rs crore)

(Source: Company RHP)

Working Capital & Cash Position (Rs crore)

(Source: Company RHP)

Peer Comparison

(Source- Screener and figures as of September 23, 2025)

Outlook & Relative Valuation

Solar EPC/O&M demand is underpinned by accelerating tendering, rooftop subsidies and grid parity. CRISIL expects 170–180 GW of additions in FY 2026–FY 2030, creating a large runway. Solarworld’s Rs 2,528 crore order book support growth, while proposed TopCon cell capacity adds optional integration benefits. On valuation, at a cap price the post-issue market cap is ~Rs 3,042 crore; implied P/E ~32x FY 2025 and EV/EBITDA ~28.1x, richer than KPI Green (~26x P/E; ~15x EV/EBITDA) and nearer Waaree Renewable Technologies (~25x EV/EBITDA, higher P/E).. Long-term returns hinge on execution, receivable discipline and timely commissioning of the TopCon project. Overall, valuation is full but defensible given growth visibility and operating metrics.

Recommendation

Subscribe (with long-term view). Strong execution track, healthy order book and sector tailwinds offset full valuations. Post-issue multiples are elevated versus KPI Green and in line with Waaree Renewable Technologies, but operating returns are robust. Key risks: policy/tender delays, receivable cycles, and TopCon execution. Suitable for investors with higher risk appetite.