One of the leading manufacturers of high-efficiency solar cells and solar modules in India, making it a player worth watching closely. We’re talking about Websol Energy System Limited, incorporated in 1990 is engaged in the business of manufacturing solar photovoltaic (PV) cells and modules, specialising in producing high-efficiency solar cells and modules incorporating advanced Mono PERC technology.
In this article, we’ll take a closer look at the company’s financial performance, key ratios, management outlook, current capacity, and other details. With a market cap of Rs. 5,562.8 crores, shares of Websol Energy System Limited is currently trading at Rs. 1,319.4 on Thursday.
The stock hit its 52-week high at Rs. 1,891.1 on 8th January 2025, and compared to the current trading price, the stock is trading at a discount of nearly 30 percent. The stock has delivered positive returns of over 33 percent over a one-year period, as well as around 4 percent returns in the last month.
Company Snapshot & Capacity Expansion
Established in 1990 as one of the first solar cell and module manufacturers in India, the company has an advanced, fully automated manufacturing facility for solar cells and modules at Falta SEZ, West Bengal.
The Falta facility spans ~7 acres, housing a current production capacity of 600 MW for solar cells and 550 MW for modules. The facility operates at an effective cell utilisation rate of over 90 percent, using Mono PERC technology. An additional 600 MW Mono PERC solar cell line is under development, with trial production expected in September 2025 and commercial operations commencing by October 2025.
The project is being executed in less than a year and is fully funded through internal accruals, underscoring the company’s financial strength and operational efficiency.
Upon commissioning, the new line will increase the company’s total cell manufacturing capacity to 1.2 GW, with meaningful revenue contribution expected from Q3 FY26. This expansion aligns with the company’s strategic long-term growth vision, which includes a phased capacity enhancement of its solar cell and module operations.
The initiative is designed to strengthen integrated manufacturing capabilities, enhance economies of scale, and position the company to capture the rising domestic demand while also tapping into emerging export markets.
During the quarter, the company also launched solar kits for the domestic market and is in advanced stages of finalising agreements with both national and regional players.
These contracts, aligned with key government initiatives such as the PM-KUSUM Solar Pumps Project and the Domestic Content Requirement (DCR) framework, are expected to generate incremental contributions beyond module sales and reinforce the company’s role in advancing India’s renewable energy ambitions.
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Government Initiatives and Targets
The Union Budget has allocated Rs. 100 billion for rooftop solar installations, aimed at providing households with up to 300 units of free electricity per month. Under the PM-KUSUM scheme, financial assistance is being extended to farmers and eligible entities for the installation of solar pumps, promoting clean energy adoption in the agricultural sector.
The Domestic Content Requirement (DCR) mandate ensures that government-backed solar projects use only Indian-made solar cells and modules, while tariff barriers, a 40 percent duty on imported modules and 25 percent on imported cells, are in place to boost local manufacturing.
Furthermore, only ALMM-listed modules are permitted in government projects, with plans to extend this requirement to solar cells in the future. Collectively, these measures support India’s ambitious target of achieving ~280 GW of solar capacity by 2030, reflecting a robust 22 percent CAGR from 29.1 GW in FY19.
Financials
In Q1 FY26, the company maintained steady progress in line with its strategic roadmap, driven by sustained demand for high-efficiency solar products across the Indian market.
Websol Energy reported a consolidated revenue from operations of Rs. 219 crores in Q1 FY26, a significant growth of around 27 percent QoQ and 95 percent YoY. Similarly, the company’s net profit for the quarter stood at Rs. 67 crores, representing an impressive rise of nearly 40 percent QoQ and 191 percent YoY.
The company reported strong cash flow generation of Rs. 167 crore in FY25, providing solid support for its expansion initiatives. The debt-to-equity ratio improved significantly to 0.55x in FY25, compared to 1.70x in FY24.
Further, asset turnover rose sharply to 1.33x in FY25 from 0.09x in FY24 as operations resumed, while interest coverage turned positive at 10.99x, underscoring a strong recovery in profitability. As of 30th June 2025, net debt stood at Rs. 89 crore.
Written by Shivani Singh
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