Swelect Energy Systems Limited (SWELECTES) AI Stock Analysis

• Market Cap: ₹7.76B
• Dividend Yield: 0.47%
• Average Volume (3M): 1.52K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.45
• Revenue Growth: 39.01%
• EPS Growth: -42.51%
• Country: IN
• Employees: 279
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): 10.01
• Shares Outstanding: 15,158,760
• 10 Day Avg. Volume: 872
• 30 Day Avg. Volume: 1,522
• PEG Ratio: -0.82
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -16.85
• 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: 57 Neutral
• Price Target: ₹530.00 ▼(-14.35% Downside)

Swelect Energy Systems Limited's overall stock score is primarily influenced by its strong financial performance, despite challenges in profitability and cash flow. The technical analysis indicates bearish momentum, which negatively impacts the score. The valuation suggests the stock is relatively expensive, further weighing down the overall score.

Positive Factors

Revenue growth trend

Sustained ~39% revenue growth reflects strong demand for solar installations and services. Over 2–6 months this supports scale economies, improves negotiating power with suppliers, and underpins reinvestment capacity for new projects, strengthening long-term top-line momentum.

Operational margin strength

Healthy gross and EBIT margins plus robust EBITDA indicate efficient execution and cost control across projects. This structural profitability at the operations level improves resilience to pricing pressure and supports sustainable earnings generation before financing and capex.

Solid capital structure

A strong equity ratio and moderate leverage signal a balanced financing mix, giving the company flexibility to fund project pipelines and absorb shocks. Structurally, this reduces default risk and supports access to project finance and partner relationships over the medium term.

Negative Factors

Low net profit margin

Despite healthy gross and EBIT margins, low net margins point to significant non-operating costs (interest, depreciation, taxes or one-offs). Persistently weak bottom-line conversion limits retained earnings, constraining self-funded growth and increasing reliance on external capital.

Negative free cash flow

Consistent negative free cash flow suggests heavy capital expenditure for project execution and assets. Over 2–6 months this structure heightens liquidity and refinancing risk, necessitating external funding and potentially increasing financing costs or delaying strategic investments.

Declining EPS growth

A sharp decline in EPS indicates earnings per share erosion which may stem from margin pressure, higher interest or dilution. This weakens shareholder returns and could hamper the company's ability to raise equity on favorable terms or attract long-term investors.

Swelect Energy Systems Limited Business Overview & Revenue Model

Company Description

Swelect Energy Systems Limited engages in the manufacture and trading of solar modules, mounting structures, transformers, and inverters in India, Europe, and internationally. It operates through three segments: Solar and Solar Related Activities, Foundry Business, and Others. The company offers mono and multi-crystalline solar photovoltaic modules; building integrated photovoltaic modules; solar inverters; solar water pumps; and solar panels. It also engages in iron, steel, and investment casting activities. In addition, the company provides stabilizers; energy conservation and audits, design/retrofit sustainable buildings, and LED lighting systems; site feasibility analysis; engineering, procurement, and construction contracts; and operation and maintenance services. Further, it engages in solar and wind power generation, and provision of contract manufacturing services. The company was formerly known as Numeric Power Systems Limited and changed its name to Swelect Energy Systems Limited in May 2012. Swelect Energy Systems Limited was incorporated in 1994 and is based in Chennai, India.

How the Company Makes Money

SWELECTES generates revenue through several key streams. The primary source of income is the sale of solar power equipment, including solar panels and inverters, which are pivotal for solar energy generation. Additionally, the company earns revenue from the installation and maintenance of solar systems, providing end-to-end solutions for customers. SWELECTES also engages in project development, where it develops solar power plants and sells the generated electricity, often under power purchase agreements (PPAs) with utilities or large corporations. Strategic partnerships with other energy firms and government entities further bolster SWELECTES's market reach and revenue potential, as they collaborate on large-scale renewable energy projects. Moreover, the company may benefit from various government incentives and subsidies aimed at promoting renewable energy adoption, providing an additional financial boost to its operations.

Swelect Energy Systems Limited Financial Statement Overview

Summary

Swelect Energy Systems Limited shows strong revenue growth and efficient cost management with healthy gross and EBIT margins. However, low net profit margins and challenges in generating positive free cash flow indicate areas for improvement.

Income Statement

Swelect Energy Systems Limited has shown impressive revenue growth over the past year, with a substantial increase in Total Revenue from the previous year. The Gross Profit Margin and EBIT Margin are healthy, suggesting efficient operations and cost management. However, the Net Profit Margin is relatively low, indicating room for improvement in profitability. The EBITDA Margin is robust, highlighting strong earnings capacity before taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet shows a moderate Debt-to-Equity Ratio, reflecting a balanced approach to financing through debt and equity. Return on Equity (ROE) is modest, indicating moderate returns to shareholders. The Equity Ratio is strong, signifying a solid capital structure with a good proportion of assets financed by equity.

Cash Flow

The cash flow analysis reveals challenges in generating Free Cash Flow, which has been negative in recent years. This points to significant capital expenditures, potentially limiting liquidity. The Operating Cash Flow to Net Income Ratio is favorable, suggesting effective conversion of net income into cash from operations. However, the Free Cash Flow to Net Income Ratio is negative, indicating reliance on external financing for operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.85B	6.22B	2.37B	2.36B	3.54B	2.44B
Gross Profit	2.47B	1.73B	1.50B	1.12B	1.30B	1.21B
EBITDA	1.64B	1.44B	1.52B	847.22M	1.02B	724.32M
Net Income	268.52M	125.97M	620.09M	55.45M	324.02M	260.81M
Balance Sheet
Total Assets	0.00	17.50B	16.62B	14.87B	14.03B	11.94B
Cash, Cash Equivalents and Short-Term Investments	465.15M	4.60B	5.16B	4.84B	4.36B	2.99B
Total Debt	0.00	6.28B	5.69B	5.50B	4.59B	3.58B
Total Liabilities	-8.77B	8.72B	8.04B	6.83B	6.16B	4.45B
Stockholders Equity	8.77B	8.57B	8.39B	7.87B	7.76B	7.43B
Cash Flow
Free Cash Flow	0.00	-489.02M	-383.25M	-198.72M	101.40M	-822.91M
Operating Cash Flow	0.00	886.68M	895.37M	1.31B	970.09M	332.39M
Investing Cash Flow	0.00	-1.28B	-823.14M	-2.84B	-728.17M	-1.42B
Financing Cash Flow	0.00	759.66M	324.30M	107.98M	993.93M	943.00M

Swelect Energy Systems Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 618.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SWELECTES, the sentiment is Negative. The current price of 618.8 is above the 20-day moving average (MA) of 559.48, above the 50-day MA of 613.15, and below the 200-day MA of 672.97, indicating a bearish trend. The MACD of -30.95 indicates Positive momentum. The RSI at 30.62 is Neutral, neither overbought nor oversold. The STOCH value of 25.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SWELECTES.

Swelect Energy Systems Limited 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%
WEBELSOLAR	61 Neutral	₹34.40B	15.17	―	―	152.12%	―
SOLEX	60 Neutral	₹10.32B	24.55	―	0.04%	80.97%	393.79%
SWELECTES	57 Neutral	₹7.76B	22.96	―	0.47%	39.01%	-42.51%
ZODIAC	57 Neutral	₹3.92B	19.07	―	0.25%	64.71%	48.65%
INDOSOLAR	50 Neutral	₹18.29B	7.48	―	―	2412.32%	―
SURANASOL	45 Neutral	₹1.16B	815.57	―	―	―	―

Swelect Energy Systems Limited Corporate Events

Swelect Energy Systems Confirms SEBI-Compliant Dematerialisation of Shares for Q3 FY2025

Swelect Energy Systems Limited has notified the stock exchanges that, in line with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, it has duly processed shareholder requests for dematerialization of shares during the quarter ended 31 December 2025. Based on a confirmation from its registrar and transfer agent, Cameo Corporate Services Limited, the company reported that all such securities were properly confirmed to the depositories, listed in line with existing securities, and that physical share certificates received for dematerialisation were mutilated, cancelled, and replaced in the register of members with the depositories as registered owners within the prescribed timelines, underscoring ongoing compliance with demat and listing norms.