Vijay Kedia-Backed Multibagger Solar Stock Locks 5% Lower Circuit Despite 70% Revenue Growth; Debt Falls 63% in 10 Years

On Tuesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 102.00 points, or 0.41 per cent, to 24,481.80. Amid the market movement, the Nifty Energy index opened at 38,834.80, touched an Intraday high of 38,857.90 and a low of 38,615.15, and was trading at 38,696.55, down 0.13 per cent.

Websol Energy System share price fell 5 per cent to Rs 89.77 and locked in the Lower Circuit despite the company reporting a 70 per cent YoY increase in revenue for Q1 FY27.

Websol Energy Q1 FY27 Financial Performance

Websol Energy System reported revenue from operations of Rs 372.60 crore in Q1 FY27 compared with Rs 218.75 crore in Q1 FY26, registering a 70 per cent YoY growth. EBITDA increased 21 per cent YoY to Rs 125.58 crore from Rs 103.48 crore, while profit after Tax rose 16 per cent YoY to Rs 77.79 crore from Rs 67.18 crore. EBITDA margin stood at 34 per cent compared with 47 per cent in the corresponding quarter, while PAT margin was 21 per cent against 30 per cent a year earlier.

The company's basic EPS increased to Rs 1.79 in Q1 FY27 from Rs 1.59 in Q1 FY26, while diluted EPS stood at Rs 1.79 compared with Rs 1.57 in the year-ago quarter.

Solar Cell and Module Production

Websol Energy System recorded cell production of 259 MW during Q1 FY27, with cell capacity utilisation sustained at 92 per cent. Module production increased to 103 MW from 50 MW in Q1 FY26, taking module capacity utilisation to 81 per cent from 39 per cent. The company's Order Book stood at Rs 1,278 crore as of June 30, 2026.

Vijay Kedia Increases Stake

The shareholding pattern provided shows Ace Investor Vijay Kishanlal Kedia increased his stake in Websol Energy System from 1.02 per cent in March 2026 to 1.10 per cent in June 2026, an increase of 0.08 percentage points.

The overall promoter holding remained unchanged at 29.72 per cent during the March 2026 and June 2026 quarters. FII holding declined from 4.12 per cent to 3.74 per cent, while DII holding increased from 0.32 per cent to 0.43 per cent during the same period.
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Debt Falls 63 per cent  in 10 Years

Websol Energy System has significantly reduced its borrowings over the past decade. According to the balance sheet data provided, borrowings stood at Rs 352 crore in March 2016. By March 2026, borrowings had declined to Rs 131 crore.

This represents a reduction of Rs 221 crore, or approximately 62.78 per cent, in borrowings over the 10-year period. The company's borrowings therefore declined from Rs 352 crore in March 2016 to Rs 131 crore in March 2026.

The balance sheet also shows reserves increasing from Rs 227 crore in March 2016 to Rs 587 crore in March 2026, while total assets increased from Rs 453 crore to Rs 930 crore during the same period.

Websol Energy Prepays Entire Rs 110 Crore IREDA Loan

On August 4, 2026, Websol Energy System prepaid its entire outstanding term loan of Rs 110 crore from the Indian Renewable Energy Development Agency Limited through internal accruals. The company stated that the repayment was made without raising fresh capital and without deferring its ongoing growth plans.

Following the repayment, the collateral securities provided against the facility, including shares pledged by promoters, are expected to be released. The pledged portion of promoter shareholding subsequently reduced from 80 per cent to 16 per cent.

TOPCon Capacity Expansion

Websol Energy System has initiated the upgradation of one of its existing Mono PERC solar cell manufacturing lines to TOPCon technology. Upon completion, the company's total TOPCon cell capacity is expected to increase to 750 MW, while overall solar cell manufacturing capacity is set to increase from 1,200 MW to 1,350 MW.

The company expects the upgradation to be completed by March 2027. Following the project, TOPCon technology will account for approximately 55 per cent of total cell manufacturing capacity. The upgrade is part of the company's planned expansion to 4 GW of solar cell manufacturing capacity, which is proposed to be implemented in two phases.

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