Ahasolar Technologies Limited

Technology — Software - Application · BSE

₹65.00+₹1.50 (+2.36%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Ahasolar Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ahasolar Technologies Limited develops a software as a service for solar companies to streamline the processes in India. It operates through Solar Software Service; Solar Marketplace; Solar Advisory and Consultancy Service; and Development of Solar Power Plant.

IndustrySoftware - Application

SectorTechnology

Employees80

Annual revenue₹92 Cr

How does it make money?

Turns over ₹92 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 80 employees supports ₹1.14 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.14 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +339% while net margin moved -97% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+339%

Margin effect-97%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 2.7% is below 10% — capital is not working hard
✗ ROCE has fallen by 35.7 points — returns are eroding
✗ EBITDA margin of 0.8% is thin — little cushion if costs rise
✗ Net margin of 0.2% is slim
• Revenue has compounded at 63.7% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

97.0x

3Y Median

510.0x

40 monthly readings · mean 622.8x · range 44.2x–2491.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 81% below its 3y median of 510.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 486% above the peer median of 16.5x.

vs. its own history

Cheap

510.0x median over 40 months · -81%

vs. sector peers

Expensive

16.5x median of 4 peers · +486%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 40.0% to 1.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 38.3% to 2.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 6.01x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.8 points, from 8.7% to 0.8%.
🟡Profit is decliningFinancial
Net profit is down 87% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 81% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 8.7% to 0.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.01x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 486% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 40.0% to 1.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 48% a year✓ 63.7% CAGR
Latest reported year was 60.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 2.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹20 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

97.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.67

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

2.7%

Weak

Low return on total capital employed

Debt/Equity

6.01x

High

High leverage

Revenue Growth (YoY)

60.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-85.9%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.5%

Weak

Assets generate little profit

Operating Margin

0.9%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

67.2 / 72.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹42 Cr	₹58 Cr	₹92 Cr	+63.7%
EBITDA	₹2 Cr	₹0 Cr	-₹1 Cr	₹1 Cr	-25.2%
EBITDA Margin	8.7%	0.8%	-0.9%	0.8%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	-₹1 Cr	₹0 Cr	-49.5%
EPS	₹5.18	₹0.15	₹-3.36	—	—
ROE	40.0%	0.3%	-6.5%	1.4%	—
ROCE	38.3%	0.4%	-6.0%	2.7%	—
Total Debt	—	—	₹1 Cr	₹1 Cr	—
Free Cash Flow	-₹1 Cr	-₹3 Cr	-₹3 Cr	-₹5 Cr	—

🟢 Revenue has grown at 63.7% a year over 3 years.

🔴 EBITDA has shrunk at 25.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.7% to 0.8% over 3 years (-7.8 pts).

🔴 PAT (Net Profit) has shrunk at 49.5% a year over 3 years.

🔴 ROE has fallen from 40.0% to 1.4% over 3 years (-38.7 pts).

🔴 ROCE has fallen from 38.3% to 2.7% over 3 years (-35.7 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.6%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 positive3 general

Compare with

Equitymaster, 10 Oct

Ahasolar Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Ahasolar Technologies wins ₹7 Cr order from PDCOR

scanx.trade, 15 JulOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Small Cap Company Under Rs 100 Soars 19% as It Bags Order for 600 MW Solar Project

Dalal Street Investment Journal, 31 AugOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Ahasolar Technologies rallies 9% after bagging consultancy order for 875 MW solar project

Alice Blue, 31 Dec

Ahasolar Technologies secures contract from CIL Rajasthan Akshay Urja

Business Standard, 31 DecOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑