Solex Energy Ltd. (SOLEX) AI Stock Analysis

• Market Cap: ₹10.91B
• Dividend Yield: 0.04%
• Average Volume (3M): 38.72K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 0.09
• 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: 66 Neutral
• Price Target: ₹1,091.00 ▼(-24.57% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is driven primarily by strong revenue growth and improved profitability, partially offset by negative operating/free cash flow and moderate leverage. Technicals add caution due to negative MACD and price below longer-term averages, while valuation is balanced between a high P/E and a solid dividend yield.

Positive Factors

Revenue & Margin Expansion

Sustained high revenue growth paired with rising gross and net margins indicates the company is scaling sales while improving unit economics. This combo supports durable profitability, enables reinvestment in capacity and R&D, and strengthens competitive positioning over the next 2–6 months.

Strong ROE

A 26% ROE signals effective use of shareholder capital to generate profits, reflecting profitable project selection and operational execution. High ROE supports internal funding of growth initiatives and indicates management can deliver returns even with moderate leverage.

Industry Incentives & Diversified Revenue

Structural policy support and subsidies for renewables bolster demand and improve project economics for solar providers. Combined with diversified revenues—manufacturing, installation, maintenance, and partnerships—this reduces single-channel risk and supports predictable multi-year cash streams.

Negative Factors

Negative Cash Flow

Despite accounting profits, inability to convert earnings into positive operating and free cash flow creates liquidity pressure. This constrains capital expenditures and working capital funding, increases dependence on external financing, and risks slowing execution of growth projects.

Moderate Leverage

Near 1.0 debt/equity and a sub-35% equity ratio indicate material reliance on debt financing. With weak cash conversion, leverage raises refinancing and interest-rate risks, reducing financial flexibility to pursue large projects or weather demand/price shocks over the medium term.

Thin Operating Margins

Modest EBIT/EBITDA margins mean the business has limited buffer against cost inflation or pricing pressure. Even with revenue growth, constrained operating profitability limits free cash flow expansion and makes sustained investment in manufacturing scale or technology upgrades more challenging.

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 revenue growth and improving profitability (higher gross and net margins) support the score, but it is held back by negative operating and free cash flow in 2025 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	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022
Income Statement
Total Revenue	4.09B	6.62B	3.66B	1.62B	719.20M
Gross Profit	802.28M	1.21B	514.28M	224.02M	63.59M
EBITDA	423.36M	752.09M	283.76M	130.40M	20.02M
Net Income	201.00M	420.28M	87.35M	27.11M	9.88M
Balance Sheet
Total Assets	7.53B	4.80B	2.12B	1.41B	727.45M
Cash, Cash Equivalents and Short-Term Investments	168.46M	120.47M	121.92M	1.33M	3.40M
Total Debt	2.93B	1.47B	961.60M	659.41M	194.24M
Total Liabilities	5.65B	3.19B	1.66B	1.03B	377.09M
Stockholders Equity	1.86B	1.61B	462.42M	376.27M	350.36M
Cash Flow
Free Cash Flow	-1.71B	-1.14B	-60.80M	-413.44M	-202.84M
Operating Cash Flow	449.83M	-474.90M	17.06M	-61.88M	38.48M
Investing Cash Flow	-2.17B	-537.02M	-212.43M	-348.49M	-272.35M
Financing Cash Flow	1.75B	1.13B	195.94M	407.86M	217.04M

Solex Energy Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOLEX, the sentiment is Neutral. The current price of 1446.3 is above the 20-day moving average (MA) of 910.19, above the 50-day MA of 989.77, and above the 200-day MA of 1207.04, indicating a neutral trend. The MACD of -15.99 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 70.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SOLEX.

Solex Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOLEX	66 Neutral	₹10.91B	38.37	―	0.04%	80.97%	393.79%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WEBELSOLAR	65 Neutral	₹31.49B	14.56	―	―	152.12%	―
ZODIAC	63 Neutral	₹3.82B	22.77	―	0.25%	64.71%	48.65%
SWELECTES	58 Neutral	₹8.38B	25.40	―	0.47%	39.01%	-42.51%
SURANASOL	45 Neutral	₹1.09B	166.44	―	―	―	―

Solex Energy Ltd. Corporate Events

Solex Energy to Join Arihant Capital’s Bharat Connect Investor Conference

Solex Energy Ltd. has informed the National Stock Exchange of India that it will participate in Arihant Capital’s Bharat Connect Conference on March 10, 2026, via a virtual group interaction with investors and analysts. The company stated that no unpublished price-sensitive information will be shared during this meeting, underscoring its intent to maintain regulatory compliance while enhancing engagement with the institutional investor community.

The scheduled interaction, which may be rescheduled if required by either the company or the institutional investors, is part of Solex Energy’s efforts to increase transparency and visibility among market participants. By joining this investor forum, the solar solutions provider seeks to strengthen its market positioning and investor relations without disclosing any non-public financial or operational details.