Solarworld Energy Solutions Limited – IPO Reviews 2025, Analysis and Notes

Recommendation: Neutral

Key Highlights

Company Background:

 Solarworld Energy Solutions Limited, incorporated in 2013 and headquartered in New Delhi, is a fast-growing renewable energy solutions provider. The company specialises in engineering, procurement, and construction (EPC) of solar power projects, along with supply of modules, inverters, and allied accessories. Over the years, Solarworld has expanded its footprint through subsidiaries, associates and joint ventures, building a diversified portfolio across utility-scale and rooftop installations. Strong execution capability, sectoral tailwinds, and focus on sustainable infrastructure position it as a key participant in the domestic solar value chain.

Market Opportunity:

India’s solar energy market is at a tipping point, driven by aggressive government targets, supportive policy frameworks and rapidly falling solar costs. The market for solar panels was about 9.9 GW in 2024 and is expected to grow to 73.3 GW by 2033 (CAGR 24.9 %). Rooftop solar is also scaling fast: installations reached 13.7 GW in 2024, with projections of 166.9 GW by 2034 (CAGR 28.4 %). Additional growth comes from rising demand in solar electric systems & inverters, which are expected to rise from 104.5 GW in 2024 to 715.5 GW by 2033. Key enablers include strong government schemes (e.g. Production Linked Incentive – PLI, rooftop subsidies, net-metering policies), growing corporate and residential demand for clean energy, and urgent national goals like achieving 500 GW of non-fossil energy capacity by 2030.

Key Strengths:

Company benefits from an integrated business model spanning solar EPC services, project development and supply of key components, enabling cost efficiency and control over quality. Its established track record in delivering utility-scale and rooftop solar projects, supported by experienced promoters and a skilled technical team, underpins strong execution capabilities. The company leverages long-standing supplier relationships and robust project management practices to maintain competitive pricing and timely delivery. Diversification through subsidiaries, joint ventures and strategic alliances strengthens its presence across the solar value chain, while a focus on sustainable practices positions it well with government and corporate customers pursuing clean-energy goals.

Key Strategies:

Company aims to leverage its integrated EPC and component-supply capabilities to capture the accelerating demand for solar installations in India. The company plans to deepen its presence in utility-scale, commercial, and rooftop projects while expanding value-added services such as energy storage and hybrid solutions. Strengthening in-house engineering, procurement, and project management expertise is expected to enhance execution efficiency and margins. It also intends to pursue strategic partnerships, invest in technology upgrades, and selectively broaden its geographic footprint to tap emerging opportunities in domestic and export markets. By aligning with government initiatives and sustainability mandates, it seeks to consolidate its position as a reliable, full-spectrum player in India’s clean-energy transition.

Financials:

Over FY23–FY25, company has shown robust revenue growth from Rs 232.46 crore in FY23 to Rs 544.76 in FY25, showing 53.2% CAGR growth. In the same time period, effective cost management helped it to grow its EBITDA and PAT at 16.03%/28.1% CAGR to Rs 106.7/77 crore from Rs 22.8/14.8 crore.

Valuation:

At the upper price band, company is valued at FY25 P/E of 39.8x which is not cheap. Hence, we recommend a Neutral rating for this IPO.

Key Risks:

The company is exposed to sector risks like volatile material prices and a heavy reliance on government policy and timely payments from utilities. Intense competition threatens margins, while operational challenges include managing project execution, supply-chain disruptions, and working capital to ensure profitable growth.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Nuvama Wealth Management Ltd.

• SBI Capital Markets Ltd.

Registrar to the Offer

• MUFG Intime India Pvt. Ltd.

Research Analyst

Rajan Gupta
📧 rajan.gupta1@religare.com

Research Team

• Ajit Mishra – ajit.mishra@religare.com

• Abhijeet Banerjee – abhijeet.banerjee@religare.com

• Gaurav Sharma – gauravsharma2@religare.com

• Ashwani Harit – ashwani.harit@religare.com

• Divya Parmar – divya.parmar@religare.com

• Vinay Kalani – vinay.kalani1@religare.com

• Rajan Gupta – rajan.gupta1@religare.com

• Author: Religare Broking
• Last Updated: September 22, 2025