Solarium says government receivables are inherent. Last quarter it said they were a one-off.
A deliberate shift to ground-mounted EPC and solar kits follows two reversals in management's own stated rationale within seven months.
What's new
- H2 revenue was ₹251 cr (70% YoY); FY26 total income ₹368 cr (60% YoY).
- Ground-mounted EPC order book rose to ₹227 cr from ₹114 cr in FY25.
- Unexecuted order book is ₹300+ cr; 300+ MW pipeline under discussion.
- Manufacturing facility at 45% utilization, throttled for ALMM II assessment.
Themes from the call
Business model reversal
The shift to ground-mounted EPC is now framed as a fix for inherent receivable cycles, contradicting the prior stance that the problem was isolated and one-off.
Strategy pivot
Launching solar kits to de-scope end-to-end work reverses a prior claim that installation execution was the company's key competitive advantage over peers like Tata.
Margins & cash
Gross margins compressed 430 bp to 30% from the EPC mix shift, while finance costs tripled to ₹10.5 cr on new capex and working capital.
Manufacturing ramp
The 1.2 GW Ahmedabad facility is running at 45% utilization, pending clarity on ALMM II domestic cell sourcing rules.
Guidance watch
- Pipeline of 300+ MW under active discussion with expected 60% conversion within 2-3 months.
- Manufacturing utilization expected to improve as ALMM II clarity emerges post-August 2025 bid deadline.
- Finance costs expected to remain around ₹10.5 cr in FY27, normalizing only as manufacturing revenue scales.
- Kit sales added ₹12-14 cr in FY26; combined residential monthly run rate expected at ₹16-18 cr by calendar year-end FY27.
Risk flags
- Two strategy reversals in seven months with no explicit explanation for the changed view on either government receivables or end-to-end execution.
- Working capital buildup: trade receivables jumped to ₹152.6 cr from ₹90.9 cr YoY as the business scaled.
- ALMM II regulatory transition creates uncertainty on domestic cell supply and near-term manufacturing utilization.
Key quotes
-
"We have not experienced anything with the other projects, whether it's NTPC or Vyapar... It is more of one-off kind of thing."
— Ankit Garg, Nov 2025 call -
"It was a calculated decision to reduce our exposure to the extended receivable cycles that are inherent in government distributed programs."
— Ankit Garg, Jun 2026 call -
"Nobody is doing the rooftop, including Tata. So, they are only supplying the kits. Nobody is there in terms of executing."
— Ankit Garg, Nov 2025 call -
"In our kit business, we have de-scoped those particular operational challenges and realigned our strategies wherein we are using our channel partners."
— Ankit Garg, Jun 2026 call
The brief
Solarium Green Energ is changing its story, and the numbers are changing with it. Seven months ago, CEO Ankit Garg told investors that receivable delays were a one-off defense issue and that projects like NTPC were fine. This quarter he called receivable delays inherent to government distributed programs and blamed NTPC site challenges for the strategic shift to large ground-mounted EPC. The pivot is real: ground-mounted EPC orders doubled to ₹227 cr, and the 50 MW Maharashtra project validates the new direction. But the rationale has flipped.
The same reversal happened on execution. In November, Garg said competitors like Tata only supplied kits while Solarium did the work, framing installation as a moat. This quarter, Solarium launched its own solar kits to de-scope that operational work. The kit business added ₹12-14 cr in FY26 and is scaling toward a ₹16-18 cr monthly run rate. That's growth, but it's growth away from the model management previously said was its advantage.
The financial impact of the shift is clear. Gross margins compressed 430 basis points to 30% as the EPC mix grew. Finance costs tripled to ₹10.5 cr on ₹90 cr of manufacturing capex and ₹100 cr in working capital. Trade receivables jumped to ₹152.6 cr from ₹90.9 cr. The new ground-mounted model promises better cash conversion with 120-150 day milestone-based terms, but the company's own balance sheet shows the transition cost.
The ₹300+ cr unexecuted order book and 300+ MW pipeline give Solarium a real growth runway. The 1.2 GW manufacturing facility is built and producing at 23.5% efficiency. The question is whether management's strategic rationale can be trusted, given it has reversed itself on both the receivables problem and the execution moat in under a year. The numbers are moving in the right direction. The explanations are not.
Solarium's order book is real. Its strategy, explained twice differently in seven months, is not.