Synopsis:
Despite heavy FII selling in Indian markets during July, Vanguard Fund has made a fresh 1 percent investment in Websol Energy System Ltd. The company reported strong quarterly results, with revenue and profit rising sharply both sequentially and annually.
Foreign institutional investors recorded heavy selling in Indian markets in July, offloading Rs. 31,988 crore in the secondary market amid stretched valuations, weaker earnings, and escalating global tariff tensions.
In contrast, Vanguard Fund took a contrarian approach by making a fresh investment in a domestic solar company, signaling confidence in its long-term prospects. Operating in the renewable energy space, Websol Energy System Ltd is a leading manufacturer of high-efficiency solar cells and modules.
Its advanced Mono PERC bifacial technology caters to the growing demand for sustainable energy solutions in India and abroad. Websol Energy System Ltd with a market capitalisation of Rs. 5,737.95 crore, opened at Rs. 1,403.90 against the previous close of Rs. 1,358.40.
What’s the News?
In the June quarter of 2025, Vanguard Fund acquired a 1 percent stake in Websol Energy System Ltd, amounting to 4.23 lakh shares valued at Rs. 61.8 crore. This move stands out as a strategic investment during a period of broad-based foreign investor selling.
As of the latest data, promoters hold 27.71 percent of the company, FIIs own 4.39 percent, DIIs account for 0.44 percent, and the public holds the remaining 67.47 percent.
For Q1FY26, the company reported revenue from operations of Rs. 218.75 crore, a 26.47 percent increase from Rs. 172.99 crore in the previous quarter and a 96.10 percent rise from Rs. 111.60 crore a year earlier.
Net profit stood at Rs. 67.18 crore, up 39.15 percent QoQ from Rs. 48.27 crore and soaring 193.73 percent YoY from Rs. 22.88 crore. The results were supported by higher sales volumes and better operational efficiencies.
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Ratios Snapshot
The company’s price-to-earnings (PE) ratio stands at 31.9, lower than the industry PE of 40.2, indicating relative undervaluation. Key return ratios are strong, with a ROCE of 59.2 percent, ROE of 80.2 percent, and ROA of 35.7 percent. Cash equivalents as of March 2025 were Rs. 86.9 crore.
Written By Manan Gangwar
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