Swelect Energy Systems Limited (SWELECTES) AI Stock Analysis

• Market Cap: ₹8.38B
• Dividend Yield: 0.47%
• Average Volume (3M): 1.52K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.25
• Revenue Growth: 39.01%
• EPS Growth: -42.51%
• Country: IN
• Employees: 279
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): 6.11
• 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: 58 Neutral
• Price Target: ₹518.00 ▼(-16.29% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily supported by solid financial performance (revenue growth and healthy operating margins with a stable balance sheet), but it is meaningfully weighed down by weak technicals (below key moving averages and negative MACD). Valuation is moderate-to-high with a low dividend yield, offering limited support.

Positive Factors

Revenue Growth

Swelect's ~40.8% revenue growth reflects durable demand and successful project execution in solar PV and systems. Sustained top-line expansion improves scale economics, strengthens backlog conversion, and supports reinvestment capacity, benefiting growth and competitiveness over months.

Operating Margin Strength

Healthy gross and EBIT margins and a robust EBITDA margin indicate efficient project execution and cost control. Persistent operating profitability supports reinvestment, ability to bid competitively on new tenders, and resilience to input-cost fluctuations over the medium term.

Stable Capital Structure

A strong equity ratio with moderate leverage signals a conservative capital structure and financial flexibility. This reduces refinancing risk, supports project financing, and allows capital allocation for growth or working capital needs without overreliance on volatile debt markets.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow driven by significant capex limits internal funding for expansion and increases dependence on external financing. Over 2-6 months this can constrain liquidity, slow project starts, and raise the cost or complexity of financing growth initiatives.

Low Net Profit Margin

Despite healthy operating margins, low net profit margin suggests higher non-operating costs or tax/interest burdens that erode bottom-line conversion. This limits retained earnings and reduces capacity to build reserves or fund strategic investments sustainably.

Capex Pressure / External Financing Reliance

The company faces capital expenditure pressure that has driven negative FCF, indicating reliance on external funding. Continued capex needs elevate execution and financing risk, potentially increasing interest costs and constraining strategic flexibility in the medium term.

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

Strong revenue growth with healthy gross and EBIT margins, supported by a stable balance sheet (moderate leverage and strong equity ratio). The main offsets are relatively low net profit margin and negative free cash flow in recent years, suggesting profitability and capital expenditure pressure.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.26B	6.22B	2.37B	2.36B	3.54B	2.44B
Gross Profit	2.49B	1.73B	1.50B	1.12B	1.30B	1.21B
EBITDA	1.73B	1.44B	1.52B	847.22M	1.02B	724.32M
Net Income	337.96M	125.97M	620.09M	55.45M	324.02M	260.81M
Balance Sheet
Total Assets	17.79B	17.50B	16.62B	14.87B	14.03B	11.94B
Cash, Cash Equivalents and Short-Term Investments	5.93B	4.60B	5.16B	4.84B	4.36B	2.99B
Total Debt	6.66B	6.28B	5.69B	5.50B	4.59B	3.58B
Total Liabilities	8.61B	8.72B	8.04B	6.83B	6.16B	4.45B
Stockholders Equity	8.93B	8.57B	8.39B	7.87B	7.76B	7.43B
Cash Flow
Free Cash Flow	15.22M	-489.02M	-383.25M	-198.72M	101.40M	-822.91M
Operating Cash Flow	655.98M	886.68M	895.37M	1.31B	970.09M	332.39M
Investing Cash Flow	-736.54M	-1.28B	-823.14M	-2.84B	-728.17M	-1.42B
Financing Cash Flow	-453.38M	759.66M	324.30M	107.98M	993.93M	943.00M

Swelect Energy Systems Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 618.80
• 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:SWELECTES, the sentiment is Positive. The current price of 618.8 is above the 20-day moving average (MA) of 525.28, above the 50-day MA of 543.79, and below the 200-day MA of 667.85, indicating a neutral trend. The MACD of -2.20 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
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	―	―	―	―

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.