Solex Energy’s Q1 FY 2026-27 results show modest revenue growth but a sharp drop in profit, as higher depreciation and finance costs overshadow the company’s strategic expansion into solar manufacturing in Gujarat, with a Rs 40 billion investment slated for large-scale solar cell and BESS projects.
Solex Energy reported a mixed start to financial year 2026-27, with modest revenue growth offset by a sharp drop in profit as higher depreciation and finance costs weighed on earnings. According to the company’s first-quarter results, total revenue rose 1.8% year on year to Rs 2,656.3 million, while revenue from operations came in at Rs 2,608.2 million. EBITDA fell to Rs 337.9 million and the margin narrowed to 12.7% from 16.4% a year earlier.
Profit after tax declined to Rs 82.6 million from Rs 247.1 million in the same quarter of the previous year, pulling the PAT margin down to 3.1% from 9.5%. The company said depreciation more than doubled to Rs 101.9 million, while finance costs climbed to Rs 124.8 million from Rs 54.1 million. Those costs helped explain why earnings weakened even as sales held broadly steady.
The results come a few months after Solex Energy signed a memorandum of understanding with the Gujarat government to build out a renewable energy manufacturing base in the state. Reporting in May said the planned investment is about Rs 40 billion, with the project expected to include a 5 GW solar cell manufacturing facility and a 10 GW battery energy storage system plant. The agreement was signed in the presence of senior state and union officials, underlining the scale of political support behind the proposal.
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