Solex Energy Ltd. (SOLEX) AI Stock Analysis

• Market Cap: ₹9.00B
• Dividend Yield: 0.04%
• Average Volume (3M): 38.72K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.23
• Revenue Growth: 80.97%
• EPS Growth: 393.79%
• Country: IN
• Employees: 877
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): 8.07
• Shares Outstanding: 10,802,489
• 10 Day Avg. Volume: 56,624
• 30 Day Avg. Volume: 38,716
• PEG Ratio: 0.05
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -5.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹936.00 ▼(-35.28% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven by solid financial performance (strong growth and improving profitability) but materially reduced by weak cash-flow conversion and bearish technicals (price below key moving averages with negative MACD). Valuation is moderate and supported by a strong dividend yield.

Positive Factors

Strong revenue growth

Solex's ~81% revenue growth demonstrates structural demand for its solar products and successful market penetration. Sustained top-line expansion supports scale advantages across manufacturing, installation and services, improving bargaining power and enabling reinvestment for medium-term growth.

Improving profitability and ROE

Margin improvement and a 26% ROE reflect better cost control and effective use of equity to generate profits. If maintained, these gains indicate durable operational progress that can fund growth, strengthen returns to shareholders, and support continued investment in efficiency and product development.

Diversified, recurring revenue model & policy tailwinds

A mix of product sales, installation and recurring maintenance contracts creates multi-year revenue streams and cross-sell opportunities. Combined with government incentives for renewables, this business model provides structural resilience and predictable cash inflows once conversion issues are addressed.

Negative Factors

Negative operating and free cash flow

Despite strong reported profits, Solex struggles to convert earnings into cash. Negative operating and free cash flow create persistent liquidity pressure, raising dependence on external financing for capex and working capital and increasing medium-term execution and refinancing risk.

Moderate leverage / equity funding reliance

A near 1.0 debt/equity ratio and low equity share indicate meaningful reliance on debt funding. With weak cash conversion, this leverage reduces financial flexibility, raises interest and refinancing exposure, and could constrain investment or increase cost of capital over the next several quarters.

Modest operational margins

EBIT and EBITDA margins remain modest for a firm scaling in solar manufacturing and services. Limited operational cushion reduces ability to absorb commodity, logistics or labor cost shocks, slowing free cash flow improvement and making durable margin expansion critical for long-term self-funded growth.

Solex Energy Ltd. Business Overview & Revenue Model

Company Description

Solex Energy Limited manufactures and sells solar photovoltaic modules in India. It provides solar turnkey solutions for solar power plants, solar water pumps, and utility scale ground mounted solar power plants, as well as engineering, procurement, and construction services for the solar energy market. The company also offers solar residential and industrial rooftop systems, off-grid power plants, solar grid-connected systems, solar home and street light systems, solar water pumps, and custom solar solutions. It serves government, real estate, agriculture, manufacturing, healthcare, hospitality, residential societies, banking institutions, educational institutes, transport and logistics, media and entertainment, and telecom and communications industries. Solex Energy Limited was founded in 1995 and is based in Surat, India.

How the Company Makes Money

Solex Energy generates revenue primarily through the sale of solar panels and related equipment, installation services, and ongoing maintenance contracts. The company benefits from government incentives and subsidies for renewable energy projects, which enhance profitability. Key revenue streams include direct sales to consumers and businesses, partnerships with construction firms and energy providers, and service contracts for maintenance and monitoring of solar installations. Additionally, Solex Energy may engage in strategic partnerships with technology firms to enhance its product offerings, further contributing to its revenue growth.

Solex Energy Ltd. Financial Statement Overview

Summary

Strong income statement results (revenue growth and improved margins), but offset by weaker cash-flow quality (negative operating and free cash flow) and moderate leverage (debt-to-equity 0.92; equity ratio 33.45%).

Income Statement

Solex Energy Ltd. has demonstrated strong revenue growth, with a significant increase from 2024 to 2025. The gross profit margin improved to 18.34% in 2025, indicating efficient cost management. The net profit margin also increased to 6.35%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, at 9.80% and 11.36% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.92, indicating a moderate level of leverage. The return on equity (ROE) improved to 26.16%, showcasing effective use of equity to generate profits. However, the equity ratio of 33.45% suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Solex Energy Ltd. faces challenges with negative operating and free cash flows in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting difficulties in converting profits into cash. The free cash flow to net income ratio is also negative, suggesting the need for improved cash management strategies.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2022
Income Statement
Total Revenue	6.62B	3.66B	1.62B	719.20M
Gross Profit	1.21B	514.28M	224.02M	63.59M
EBITDA	752.09M	283.76M	130.40M	20.02M
Net Income	420.28M	87.35M	27.11M	9.88M
Balance Sheet
Total Assets	4.80B	2.12B	1.41B	727.45M
Cash, Cash Equivalents and Short-Term Investments	120.47M	121.92M	1.33M	3.40M
Total Debt	1.47B	961.60M	659.41M	194.24M
Total Liabilities	3.19B	1.66B	1.03B	377.09M
Stockholders Equity	1.61B	462.42M	376.27M	350.36M
Cash Flow
Free Cash Flow	-1.14B	-60.80M	-413.44M	-202.84M
Operating Cash Flow	-474.90M	17.06M	-61.88M	38.48M
Investing Cash Flow	-537.02M	-212.43M	-348.49M	-272.35M
Financing Cash Flow	1.13B	195.94M	407.86M	217.04M

Solex Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1446.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOLEX, the sentiment is Negative. The current price of 1446.3 is above the 20-day moving average (MA) of 975.38, above the 50-day MA of 1096.30, and above the 200-day MA of 1209.67, indicating a bearish trend. The MACD of -62.62 indicates Positive momentum. The RSI at 32.33 is Neutral, neither overbought nor oversold. The STOCH value of 7.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOLEX.

Solex Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOLEX	62 Neutral	₹9.00B	22.17	―	0.04%	80.97%	393.79%
WEBELSOLAR	59 Neutral	₹23.04B	10.16	―	―	152.12%	―
SWELECTES	57 Neutral	₹7.88B	14.64	―	0.47%	39.01%	-42.51%
ZODIAC	57 Neutral	₹3.60B	18.52	―	0.25%	64.71%	48.65%
SURANASOL	45 Neutral	₹1.05B	738.06	―	―	―	―