Solarium Green Energy Strengthens Integrated Solar Strategy with 1.2 GW Module Facility, FY26 Revenue Jumps 60%

Solarium Green Energy Strengthens Integrated Solar Strategy with 1.2 GW Module Facility, FY26 Revenue Jumps 60%

The Electrical Post

Solarium Green Energy Limited reported a year of significant expansion and strategic transformation during FY26, marked by the commissioning of its large-scale manufacturing facility, growing residential distribution network, and increasing focus on utility-scale EPC projects aimed at enhancing operational efficiency and cash flow management.

Solarium is a leading solar energy company in India, specializing in integrated solar solutions and turnkey services. Founded in 2018 by Mr. Ankit Garg, an IIT/ISM Dhanbad alumnus, the company is headquartered in Ahmedabad, Gujarat.

Speaking during the company's H2 and FY26 earnings conference call, Chairman and Managing Director Ankit Garg said FY26 represented an important phase in Solarium's evolution as it positioned itself for the next stage of growth through investments in manufacturing capacity, distribution capabilities, and a more integrated business model.

Garg highlighted that the renewable energy landscape in India remained highly supportive throughout the year. India's total renewable energy capacity surpassed 279 GW as of April 2026, with solar accounting for more than 154 GW. Solar energy continued to dominate capacity additions, contributing nearly half of the country's cumulative renewable energy installations.

He noted that the government's target of achieving 500 GW of non-fossil fuel capacity by 2030 remains firmly on track, supported by accelerating implementation efforts. The PM Surya Ghar Scheme has also gained considerable traction, with approximately four million households electrified under the initiative by May 2026 against the government's target of 10 million households by 2027.

While acknowledging that regulatory developments such as the implementation of ALMM-II have generated industry-wide discussions, Garg said Solarium has adopted measures to address the evolving framework effectively.

A major milestone for the company during FY26 was the commissioning of its fully automated 1.2 GW solar module manufacturing facility in Ahmedabad. The facility has the capability to produce approximately 4,000 panels per day with cell efficiencies reaching up to 23.5%. It can manufacture a broad range of modules, including G12 large-format panels with capacities of up to 725 Wp.

The plant incorporates artificial intelligence-based quality control systems and RFID-enabled traceability throughout the production process, enabling higher levels of quality assurance and operational efficiency as customer expectations continue to evolve.

Beyond manufacturing, Solarium also strengthened its presence in the residential solar segment. The company introduced solar kits tailored for residential consumers and significantly expanded its Sarathi partner network, which now includes more than 450 partners spread across over 25 cities.

Garg stated that Solarium currently holds the second-largest position among more than 20,000 vendors participating under the PM Surya Ghar Scheme, a standing the company intends to further strengthen in the coming years.

The company also expanded its EPC business, securing a 50 MW AC ground-mounted solar project in Maharashtra valued at more than Rs. 185 crore. According to management, this project reflects a deliberate strategic shift towards large-scale EPC developments.

Garg explained that Solarium consciously diversified into utility-scale ground-mounted EPC projects to reduce its dependence on government-backed distributed solar programs, which are often associated with extended receivable cycles. Although these projects typically offer comparatively lower margins, they provide stronger cash conversion dynamics and enable operations at a larger scale.

He added that the integration of manufacturing and EPC activities is becoming increasingly important to Solarium's business model. The company currently has approximately 65 MW of confirmed captive module demand within its EPC order book, while projects exceeding 300 MW remain under active discussion.

This internal demand is expected to support utilization levels at the new manufacturing facility while creating synergies between project execution and module production.

Addressing concerns around ALMM-II, Garg noted that a substantial portion of Solarium's existing order book consists of projects bid before August 31, 2025, allowing the continued use of non-domestically manufactured solar cells. Simultaneously, the company is progressing towards sourcing domestically manufactured cells to support its residential EPC operations and solar kit business.

He said the company does not view ALMM-II as a significant challenge, adding that Solarium's manufacturing capacity provides it with a competitive advantage as the industry gradually transitions towards higher domestic content requirements.

Summarizing the year's operational progress, Garg said FY26 was a period during which Solarium established critical infrastructure, strengthened its talent base and made strategic investments aimed at building a more scalable and integrated enterprise.

The company concluded the year with an executed order book exceeding ₹300 crore, an operational manufacturing facility undergoing ramp-up, and a residential distribution network beginning to gain meaningful momentum.

Financially, Solarium reported total income of Rs. 368 crore during FY26, representing a growth of 60% compared with Rs. 230 crore reported in FY25. Over the last three years, the company has recorded a compound annual growth rate of 55% in revenues since FY23.

Management attributed the growth primarily to the increasing execution of large EPC projects. Revenue contribution from the commercial and industrial as well as ground-mounted segments rose sharply to Rs. 227 crore during FY26 from Rs. 114 crore in the previous year.

Residential rooftop revenues stood at Rs. 80 crore, while the distribution business contributed ₹61 crore. The company clarified that a reclassification of solar kit revenues into the distribution segment accounted for the apparent movement between residential and distribution verticals on a year-on-year basis.

Gross profit for FY26 stood at Rs. 111 crore, translating into a gross margin of approximately 30%, compared with Rs. 79 crore and a margin of 34.5% in FY25. The moderation in gross margins was primarily attributed to the increasing share of ground-mounted EPC projects within the overall business mix, as these projects typically carry lower margins than residential and distributed solar segments.

Nevertheless, gross profit increased by 40% in absolute terms over the previous year.

Profit after tax for FY26 reached Rs. 20.5 crore, marginally higher than Rs. 18.6 crore reported in FY25, while PAT margins stood at around 5.6% of total income. Garg indicated that the relatively moderate growth in profitability despite a substantial increase in revenues was linked to strategic investments undertaken by the company during the year, which management believes will support long-term growth and strengthen Solarium's integrated solar platform.
 

Published at : Sep 27, 2026 10:31 AM (IST)

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