Insolation Energy: Scaling Capacity. Expanding Integration. Creating Value.

GIA Flagship Promoters' Conference 2026

At the GIA Flagship Promoters' Conference 2026, the management of Insolation Energy shared its long-term vision of transforming the company into one of India's most integrated solar manufacturing platforms. Management highlighted that the company is moving beyond module manufacturing by investing across the solar value chain through captive solar cell and aluminium frame manufacturing, while laying the groundwork for future ingot and wafer production. Alongside manufacturing expansion, Insolation is strengthening its downstream EPC and IPP businesses, expanding its retail footprint and positioning itself to benefit from India's evolving domestic manufacturing policies.

Management believes FY27 will be a year of capacity commissioning and investment, while FY28 is expected to witness a significant improvement in profitability as the benefits of backward integration begin flowing through the business.

Backward integration is laying the foundation for the next phase of growth

The company's largest strategic initiative is the development of a 4.5 GW solar cell manufacturing facility, representing an investment of approximately ₹1,500 crore. Alongside this, Insolation is establishing an 18,000 metric tonne aluminium frame manufacturing facility, equivalent to 4.5 GW of capacity, with an estimated investment of ₹80–90 crore.

Management highlighted that manufacturing aluminium frames in-house is expected to generate a cost benefit of approximately ₹70–80 per frame per panel, while strengthening supply-chain control and improving product quality.

Both facilities are being developed on a 45-acre land parcel allotted by MPIDC, with the solar cell and aluminium frame plants located within the same manufacturing campus to maximise operational efficiencies and support future expansion.

Project execution remains on schedule with commissioning expected during FY27

Management indicated that execution of the new manufacturing facilities is progressing as planned.

Civil construction and PV-related works have largely been completed, Factory Acceptance Testing (FAT) has been successfully completed, and the plant machinery has already been ordered and is currently on its way to India.

The aluminium frame manufacturing facility (INA 4) is expected to become operational by the end of Q2 or the beginning of Q3 of the current financial year.

The solar cell manufacturing facility (INA 5) is expected to commence commissioning during August–September, with commercial operations targeted by the end of Q3, or at the latest by Q4, with management specifically indicating operations could begin by the first week of January if required.

Management reiterated that the long-term objective is to establish a 1:1:1 integrated manufacturing ecosystem, enabling the company to secure critical raw material supplies while maintaining complete control over product quality and manufacturing efficiency.

Global technology partnerships are expected to reduce execution risks

To ensure smooth commissioning of the solar cell facility, Insolation has partnered directly with SC Solar, which management described as the largest solar cell equipment supplier in China with nearly 60% market share.

Rather than purchasing individual machines, the company has procured the entire manufacturing line on a turnkey basis.

Management highlighted that SC Solar will not only install the equipment but will also operate and support the facility for two years to ensure production efficiency.

Approximately 40–50 Chinese engineers are expected to remain stationed at the manufacturing facility during this period. In addition, another specialised Chinese engineering company has been appointed to monitor production KPIs and operational performance.

To safeguard execution quality, a significant portion of the equipment payment remains linked to predefined performance benchmarks. Management stated that the remaining 30%, 40% or 50% payment, as applicable under contractual milestones, will only be released after the agreed production efficiencies and KPIs are achieved.

Strategic location provides long-term infrastructure advantages

Management believes the location of the Madhya Pradesh manufacturing complex offers several structural advantages.

Apart from allocating the land, MPIDC has already provided essential infrastructure including electricity and water directly at the project site.

Water will be supplied through dedicated pipelines at approximately ₹25 per kilolitre, while electricity is available at around ₹4.36 per unit directly at the factory for a 50 or 100 MW connection, significantly reducing infrastructure development timelines.

The solar cell facility is also located close to the Narmada River, ensuring long-term access to surface water. Management noted that dependence on surface water rather than groundwater is considered an important requirement for large-scale solar cell manufacturing facilities.

Ingot and wafer manufacturing represent the next phase of integration

While the current focus remains on commissioning the solar cell facility, management has already outlined its long-term roadmap for complete vertical integration.

Following successful stabilisation of cell production, the company plans to establish 4.5 GW captive ingot and wafer manufacturing facilities at the same Madhya Pradesh location.

Management expects plant design discussions and machinery negotiations to commence around January–February after the solar cell facility becomes operational, with the broader objective of having a stable integrated ingot and wafer ecosystem ready by March 2028.

This expansion roadmap has been aligned with the government's expected implementation timeline for domestic wafer manufacturing requirements.

FY27 is expected to remain an investment year before profitability accelerates

Management remains confident of another year of strong revenue growth despite significant investments in new manufacturing facilities.

After reporting FY26 revenue of ₹2,163 crore, EBITDA of ₹305 crore and PAT of approximately ₹101 crore, management conservatively expects FY27 revenue to reach around ₹3,500 crore, while EBITDA is projected to improve to approximately ₹490–500 crore.

However, management clarified that these projections have been prepared without assuming any incremental margin contribution from the solar cell manufacturing facility.

As the new plants begin operations, higher depreciation charges and interest costs are expected to temporarily impact profitability, with PAT margins likely to remain around 6–7% during FY27.

Management believes FY28 will represent the real earnings breakout year as captive cell production begins contributing to financial performance, with EBITDA margins expected to improve significantly towards 25–30%.

Captive cell manufacturing has the potential to reshape profitability

Management emphasised that backward integration is expected to materially improve the economics of the business.

Currently, non-DCR solar modules are sold at approximately ₹13.5–14 per watt, generating EBITDA of around ₹2 per watt.

Once captive solar cell production begins, management expects EBITDA generation to increase by nearly 2.5–3 times, reaching approximately ₹5–6 per watt.

This improvement is expected to significantly enhance operating leverage without requiring proportionate volume growth.

Management also indicated that the company is likely to become free cash flow positive within the next six to eight months, with cash generation expected to improve further as higher-margin integrated manufacturing scales up.

Working capital requirements continue to remain well supported through existing banking relationships, with SBI and HDFC Bank providing the company's working capital limits and cash credit facilities.

Manufacturing capabilities continue to strengthen through technology upgrades

Insolation currently operates three manufacturing facilities in Jaipur with an aggregate solar module manufacturing capacity of 5.5 GW.

Management indicated that module capacity can be expanded further to approximately 7 GW through an additional 1.5 GW expansion whenever demand requires.

The company has also completed the transition of its manufacturing lines towards high-efficiency TOPCon technology, including M10R and G12R modules.

Legacy Mono-PERC manufacturing remains operational only at the INA 2 facility, producing approximately 677 MW annually, equivalent to around 2,200–2,300 panels per day, primarily to cater to residual market demand. Management noted that these production lines can also be converted to TOPCon technology whenever required.

To support advanced solar cell production, the upcoming facilities will operate within Class 6 and Class 7 climate-controlled clean rooms, while the company currently employs approximately 1,500 personnel across all manufacturing units.

Management also noted that manufacturing capacity utilisation across the industry, particularly for solar cell production, generally remains within the 60–70% range, reflecting standard operating levels for the industry.

Downstream EPC and IPP businesses are creating a long-term recurring revenue platform

While manufacturing remains the core business, management highlighted that Insolation is steadily building a downstream renewable energy platform through its dedicated subsidiary, Insolation Infra Energy / Green Infra Energy.

The company has expanded into both Engineering, Procurement & Construction (EPC) and Independent Power Producer (IPP) businesses with the objective of creating recurring long-term revenue streams alongside module manufacturing.

A key milestone is the award of 325 MW (AC) under the PM KUSUM scheme across 34 districts in Rajasthan. These projects are highly decentralised, with individual project sizes generally ranging between 1 MW and 2 MW, allowing the company to diversify execution risk across multiple locations.

The projects operate under long-term Power Purchase Agreements (PPAs) with an average tariff of approximately ₹2.80 per unit, while management expects project equity IRRs to range between 15% and 22%, depending on individual project locations and grid evacuation dynamics.

The entire KUSUM portfolio spans 205 project sites, with all PPAs having been executed by 31 December. To optimise land costs and project execution, the company is developing the portfolio in phases by leasing land for 100–150 MW clusters and subsequently rotating capital into new locations.

Management further highlighted that all project assets are housed under a portfolio of 77 Special Purpose Vehicles (SPVs), providing operational and financing flexibility.

Importantly, management reiterated that the company remains focused exclusively on long-term contracted power generation and does not participate in merchant power markets, power banking or peak-hour trading strategies.

A strong order pipeline and diversified customer base provide healthy execution visibility

Management indicated that Insolation currently has a confirmed 2.1 GW order book, which is expected to be executed entirely during the current financial year. This order pipeline excludes rolling orders received through the company's distribution channel, providing healthy revenue visibility.

The order book remains well diversified across customer categories:

Management noted that the OEM business generates margins comparable to standard module sales while providing stable baseline capacity utilisation through pre-committed manufacturing contracts.

Expanding retail reach continues to strengthen the company's market position

Alongside institutional business, Insolation continues to build one of the strongest retail solar distribution networks in North India.

The company today serves a customer base of over 40,000 customers through a network exceeding 1,000 active channel partners across the country.

Management highlighted that the company has also become a pre-qualified supplier for more than 30 government PSUs as well as leading infrastructure companies including Larsen & Toubro (L&T), significantly strengthening its institutional credibility.

While North India continues to remain the company's strongest market, management is actively expanding distribution across Maharashtra and South India to improve geographical diversification.

The company has also established a strong presence under the PM Surya Ghar residential rooftop programme. In Rajasthan alone, Insolation currently supplies approximately 25,000–30,000 solar panels every month, reflecting its growing retail penetration.

Management stated that Insolation has become the second-highest installed solar brand in Rajasthan after Adani, while its channel partners recently received an official MNRE award for achieving the highest residential rooftop installations within the state.

To further strengthen national brand recognition, the company also partnered with the Lucknow Super Giants (LSG) franchise as an official IPL sponsor, enhancing consumer visibility across India.

Mainboard listing opens access to a significantly larger investor base

Management highlighted another important milestone in the company's journey with its successful migration from the SME platform to the Main Boards of both NSE and BSE on 9 March 2026.

According to management, the migration removes several investment restrictions applicable to SME-listed companies and significantly enhances the company's visibility among domestic institutions, foreign portfolio investors and large global funds that were previously unable to participate.

Policy support continues to strengthen the investment case for integrated manufacturers

Management believes India's evolving policy framework continues to favour domestic integrated manufacturers.

ALMM Part-I, restricting imported solar modules for government-supported projects, is already operational.

The implementation of ALCM, covering domestic solar cell sourcing, is expected to further strengthen demand for Indian cell manufacturers beginning June 2026, reinforcing the strategic importance of Insolation's ongoing backward integration programme.

Management also discussed the evolving DCR (Domestic Content Requirement) and Non-DCR markets.

Currently, approximately 60% of the company's production comprises Non-DCR modules while 40% caters to the DCR segment.

Management explained that Non-DCR demand continues to remain healthy due to a large pipeline of legacy utility projects awarded prior to October 2025, estimated at nearly 35 GW, which remain eligible to utilise imported cells.

Going forward, domestic content requirements will increasingly apply across government projects, subsidised schemes and net-metered installations.

Commercial & Industrial (C&I) customers, however, can continue using Non-DCR modules where projects operate entirely behind the meter without net-metering, gross metering or grid feed-in arrangements.

Domestic manufacturing economics remain supported by structural industry shortages

Management believes India's domestic solar manufacturing ecosystem continues to face a significant supply-demand imbalance.

While India's installed module manufacturing capacity currently stands at approximately 180–200 GW, domestic solar cell manufacturing capacity is limited to only 30–33 GW, with just three active manufacturers producing high-efficiency TOPCon cells.

Management believes this structural shortage should continue supporting capacity utilisation and pricing for domestic cell manufacturers over the coming years.

Current pricing also reflects this trend.

Management indicated that Non-DCR TOPCon cells are currently priced at approximately 13–13.5 US cents per watt, supported by the recent decline in the US dollar.

Domestic DCR cells, benefiting from policy protection despite higher manufacturing costs, currently sell at approximately ₹20–22.5 per watt, while Non-DCR modules continue to sell at around ₹13.5–14 per watt.

Management also discussed the "Give Up" option introduced under the PM Surya Ghar scheme, allowing residential customers to voluntarily forego the central subsidy in order to install imported Non-DCR modules.

However, management believes that overall customer economics remain broadly similar after considering the subsidy benefit, limiting any meaningful impact on long-term domestic cell demand.

Management remains focused on areas where long-term competitive advantages are strongest

Despite growing industry interest in Battery Energy Storage Systems (BESS) and Green Hydrogen, management reiterated that Insolation currently has no plans to enter either business.

According to management, BESS assembly requires relatively limited capital expenditure of approximately ₹15–20 crore and carries low entry barriers, making the segment highly susceptible to inexpensive Chinese competition in the absence of meaningful tariff protection.

Instead, management intends to allocate capital towards strengthening the company's integrated solar manufacturing platform, where it believes sustainable competitive advantages and long-term returns are significantly stronger.

Execution planning continues despite global supply-chain challenges

Management acknowledged that processing visas for Chinese engineers currently requires approximately 2–4 weeks, representing an industry-wide challenge.

To minimise commissioning risks, Insolation has been working directly with MNRE, providing the necessary documentation and recommendation letters to facilitate visa approvals.

In addition, SC Solar maintains backup engineering teams across countries including Vietnam, Cambodia, Thailand and Malaysia, providing additional flexibility should deployment schedules require adjustment.

Outlook: Insolation is positioning itself for the next phase of India's solar manufacturing opportunity

Management believes Insolation is entering a transformational phase in its evolution.

The combination of a 4.5 GW solar cell manufacturing facility, 18,000 MT aluminium frame capacity, future ingot and wafer integration, expanding downstream EPC and IPP operations, a 2.1 GW executable order book, a rapidly growing retail distribution network and supportive domestic manufacturing policies positions the company to benefit from India's accelerating renewable energy transition.

While FY27 is expected to remain a year of commissioning, capacity expansion and higher depreciation, management believes the structural benefits of backward integration could begin reflecting meaningfully from FY28 through stronger margins, improved supply-chain control, higher value addition and enhanced cash generation.

Management also reiterated its broader belief that India's long-term energy security ambitions require a robust domestic manufacturing ecosystem. With supportive government policies, increasing localisation requirements and a significant domestic cell supply deficit, Insolation aims to evolve from a module manufacturer into one of India's few fully integrated solar manufacturing platforms capable of delivering sustainable long-term growth.