Swelect Energy Systems reports a significant decline in first-quarter profit due to delays in customer orders caused by regulatory ambiguity around India’s ALMM 2 framework, impacting revenue and market confidence, despite ongoing expansion plans.
Swelect Energy Systems has reported a sharp fall in first-quarter profit as uncertainty over India’s solar procurement rules delayed customer orders and weighed on revenue. The Chennai-based company posted consolidated net profit of ₹7.6 crore for the quarter ended June 2026, down from ₹21 crore a year earlier, while revenue from operations slipped to ₹131 crore from ₹177 crore.
In a statement cited by The Hindu BusinessLine, Swelect said performance was hit by confusion around the rollout of ALMM 2, the Approved List of Models and Manufacturers framework that requires domestically made solar cells for key projects. The company said buyers held back orders during the May-to-July period, and added that the price gap between domestic-content and non-domestic modules also slowed demand.
Swelect said it has domestic-cell tie-ups covering as much as 1 gigawatt a year and said the market is now showing signs of recovery. The company also said its expansion plans remain on track, pointing to 110 megawatts of independent power producer projects announced in the quarter and the completed purchase of two solar parks in Rajasthan with a combined potential capacity of 140 megawatts.
The latest results mark a reversal from the previous quarter, when Business Standard reported that Swelect lifted consolidated net profit 15.25% year on year to ₹10.20 crore for the three months ended March 2026, even as sales fell 7.49%. For the full 2026 financial year, PV Magazine India reported PAT of ₹57.58 crore on revenue of ₹657.12 crore, underscoring how sharply the quarterly picture has weakened. Shares of Swelect Energy Systems fell 7.88% to ₹627.55 on Friday.
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