Uttar Pradesh-based renewable energy company Solarworld Energy Solutions has reported a revenue of ₹1.78 billion (~$18.62 million) in the first quarter (Q1) of the financial year (FY) 2027, rising 121% year-over-year (YoY) compared to ₹805.5 million (~$8.42 million).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹206.6 million (~$2.16 million), reducing by 2.3% YoY compared to ₹211.4 million (~$2.21 million).

Profit after tax (PAT) for the quarter was ₹95 million (~$993,646), down 26.4% in comparison with ₹129.1 million (~$1.35 million).

Earnings per share came in at ₹1.09 (~$0.011), compared to ₹1.74 (~$0.02) in Q1 FY 2026.

The company said its revenue is typically weighted toward the second half of the financial year, as design approvals and equipment procurement dominate the first two quarters.

Solarworld reported consolidated revenue from operations of ₹5.92 billion (~$61.94 million) in Q4 FY 2026.

Business Updates

Solarworld stated that 95% of its engineering, procurement, and construction (EPC) projects include operations and maintenance contracts (O&M) with tenures of three to five years.

Supply accounted for about 80% of an EPC order, while execution contributed 10% to 15% and O&M roughly 5%.

Solar modules account for approximately 40% of EPC project costs, and capturing the margins earned by external module suppliers could potentially improve EPC margins by three to four percentage points.

Solarworld said it planned to utilize 60% to 80% of its manufacturing capacity internally to support its EPC business.

The company said EPC businesses typically generate PAT margins of approximately 10% to 11%.

Solarworld’s indicative project costs include ₹13 million (~$135,972)/MW for modules and from approximately ₹9 million (~$94,135)/MW to ₹9.5 million (~$99,364)/MW for execution, including installation, structures, cables, and transformers but excluding land.

Costs excluding modules were estimated at ₹9 million (~$94,135)/MW to ₹10.5 million (~$109,824)/MW, depending on the use of trackers.

Outlook

Solarworld is targeting a 60:40 revenue mix between energy storage systems and solar EPC, as it aims to scale its presence in the energy storage segment.

The company is also developing a 1.2 GW solar cell manufacturing facility, with commercial operations expected to begin by June 2027. It estimated an investment of approximately ₹5.75 billion (~$60.14 million) for the 1.2 GW solar cell manufacturing facility at Pandhurna, Madhya Pradesh. Of this, ₹4.2 billion (~$44 million) was proposed to be funded through initial public offering proceeds and ₹1.55 billion (~$16.21 million) through debt.

In the energy storage segment, the company expects assembling imported lithium-ion cells into battery packs and containerized systems domestically to provide cost advantages compared with importing complete containers, which attract duties of approximately 22%.

Solarworld expects a couple of strong years ahead, supported by backward integration and a healthy tender pipeline, but did not provide quantified FY 2027 revenue or profit guidance. The company said it was net debt-free and expects internal accruals and its existing capital base to support EPC growth over the next few years.

It expects revenue to become more evenly distributed across quarters as its project base expands and manufacturing operations scale up.

Solarworld plans to utilize 60% to 80% of its manufacturing capacity internally to support its EPC business. This is expected to improve cost efficiencies, strengthen supply-chain reliability, and reduce dependence on external suppliers.

The company said roughly 40 GWh to 50 GWh of energy storage systems orders had been issued in India and expects a shortage of experienced project executors. It expects energy storage to emerge as a key growth segment, targeting utility-scale projects for volumes while pursuing comparatively higher-margin opportunities in the commercial and industrial segment.

Solarworld said future manufacturing expansion will remain tied to the requirements of its EPC business rather than a shift toward standalone manufacturing.

In March, Solarworld was among the winners of NTPC’s auction to set up 2,334 MWh of battery energy storage systems at its thermal power stations across Karnataka, Maharashtra, Bihar, Andhra Pradesh, and Telangana (Lot-I). It secured 264 MWh capacity for the Solapur thermal station in Maharashtra.