| Established track record of operations along with experienced management
The company has a long-track record of more than fifteen years in the operations of renewable sector. The company’s strong execution capabilities, backed by experienced management team, have enabled it to secure large-scale renewable orders from reputed clients in the industry. Further, the company commissioned solar power plants with capacities of 2.4 MW and 6.5 MW at Changavara and Chikkabanagere, Karnataka, respectively, in October 2024 for which the company has entered into a long-term power purchase agreement (PPA) of 25 years with Bangalore Electricity Supply Company Limited (BESCOM), thereby, mitigating counterparty risk to some extent.
Going forward, the company plans to set up additional 8 solar power plants with total capacity of 68.69 MW (28.28 MW under RTSPL and 40.41 MW under project specific SPV in JV) at an estimated cost of Rs. 280 Cr. with BESCOM and CESCOM as counterparties. The projects will be funded through a mix of debt and internal accruals and are expected to commence operations by March 31, 2027. Therefore, timely debt tie-ups and execution of these projects shall remain monitorable.
Growing scale of operations backed by timely order execution and healthy order book position
The company's operating revenue grew significantly to Rs. 499.31 Cr. in FY26 (Prov.) from Rs. 49.17 Cr. in FY24, reflecting a CAGR of ~219 percent over the past two years. The healthy growth was driven by strong order inflows from renewable energy projects and timely execution of the awarded contracts. Further, the company's self-execution model in majority of the projects supports cost management which accounts for operating margin of 10.41 percent in FY26 (Prov.) (9.55 percent in FY25). Consequently, the PAT of the company stood improved at Rs. 29.00 Cr. in FY26 (Prov.) (Rs. 15.69 Cr. in FY25). Further, the company has clocked operating revenue of Rs. 150.38 Cr. in 5MFY27 (Rs. 163.03 Cr. in 5MFY26) and has outstanding order book of Rs. 1724.22 Cr. as on August 20, 2026 (~3.49 times of FY26 (Prov.) revenue).
Going forward, continued growth momentum coupled with sustenance of operating margins and steady increase in order book position shall remain monitorable.
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| Moderate financial risk profile
While the net worth of the company improved to Rs. 57.67 Cr. as on March 31, 2026 (Prov.) from Rs. 28.68 Cr. as on March 31, 2025, on account of accretion of profits to reserves, however, its debt levels remained high at Rs. 82.23 Cr. in FY26 (Prov.), resulting in gearing (debt/equity) ratio of 1.43 times in FY26 (Prov.). The debt profile comprises long-term borrowings for solar power projects, project-specific short-term debt, and working capital borrowings. Despite the elevated leverage, the debt protection metrics stood comfortable with interest coverage ratio of 5.94 times in FY26 (Prov.) (5.89 times in FY25) and debt service coverage ratio of 3.81 times in FY26 (Prov.) (5.61 times in FY25). Moreover, debt-EBITDA stood improved at 1.47 times in FY26 (Prov.) (3.54 times in FY25).
In FY27, the company availed additional borrowings of ~Rs. 9.98 Cr. for funding their working capital requirements. Further, the company plans to avail Rs. 196 Cr. of project specific short-term debt (yet to be tied up) and Rs. 84.85 Cr. of long-term debt (Rs. 61.10 Cr. tied up) for the development of its own solar power plants of 28.28 MW. Therefore, the proposed debt is expected to moderate the company’s financial risk profile over the medium term.
Moderately intensive working capital operations
The working capital operations of the company stood moderately intensive marked by gross current assets (GCA) days of 86 days in FY26 (Prov.) (167 days in FY25). The GCA days are majorly driven by debtor days that stood at 56 days in FY26 (Prov.) (98 days in FY25), wherein the receivables are primarily based on project milestones. Further, the inventory days also stood at 26 days in FY26 (Prov.) (35 days in FY25) which is driven majorly by order executions. Also, the creditor levels stood reduced at 7 days in FY26 (Prov.) as against 62 days in FY25.
Going forward, the company's working capital operations are expected to remain linked to the execution cycle and progress of its ongoing projects.
Order execution risks along with exposure to inherent risks in renewable energy generation
The company remains exposed to execution-related risks inherent in EPC contracts for renewable energy projects, given the typically large project sizes and the dependence on timely regulatory approvals, land readiness, skilled manpower availability, and on-schedule delivery of critical components. However, these risks are mitigated to a significant extent by the promoters’ extensive experience of over a decade in renewable sector. Furthermore, owing to long gestation period of the orders, there may be several operational challenges including securing power grid connectivity, laying evacuation approach, social and environmental factors which can affect the operations of the company and shall remain key rating monitorable. Moreover, the operations of power plant inherently face risks related to both natural hazards and operational failures. Further, the performance of the solar plant is highly dependent on favourable climatic conditions including the solar radiation levels which directly impact the PLF.
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