Solarium Green Energy Limited

Technology — Solar · BSE

₹117.40−₹0.45 (−0.38%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Solarium Green Energy Limited provides integrated solar solutions in India. The company operates through Residential Rooftop Solar; Engineering, Procurement and Construction; and Solar Manufacturing segments.

IndustrySolar

SectorTechnology

Employees415

Annual revenue₹368 Cr

How does it make money?

Turns over ₹368 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 415 employees supports ₹88.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹88.7 lakh

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?Some evidence

ROCE of 17.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +273% while net margin moved +216% 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+273%

Margin effect+216%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

81/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.0x

2Y Median

20.5x

22 monthly readings · mean 25.0x · range 10.1x–60.2x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 2y median of 20.5x. 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 27% below the peer median of 16.5x.

vs. its own history

Cheap

20.5x median over 22 months · -41%

vs. sector peers

Cheap

16.5x median of 4 peers · -27%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.4x

PEG

0.09

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 5.8% to 9.0% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 36.7% to 12.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.1% to 17.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 487% over 3 years, from ₹27 Cr to ₹157 Cr.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 2003% against revenue up 273% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 707% against revenue up 273% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.6x to 4.1x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.8% to 9.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 41% 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.
Cheaper than its peers
It trades 27% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 2003% against revenue up 273%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 36.7% to 12.6%. 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.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 41% a year✓ 55.0% CAGR
Latest reported year was 69.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹72 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 17.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹245 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

1.51x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.76

Profitable

Profitable on a per-share basis

ROE

13.5%

Moderate

Moderate capital efficiency

ROCE

17.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

69.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.6%

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

-₹87 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.3%

Average

Average asset productivity

Operating Margin

6.6%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

124.1 / 141.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹99 Cr	₹177 Cr	₹230 Cr	₹368 Cr	+55.0%
EBITDA	₹6 Cr	₹24 Cr	₹27 Cr	₹33 Cr	+80.3%
EBITDA Margin	5.8%	13.8%	11.5%	9.0%	—
PAT (Net Profit)	₹2 Cr	₹16 Cr	₹19 Cr	₹20 Cr	+127.5%
EPS	₹0.83	₹7.55	₹11.65	—	—
ROE	36.7%	76.7%	13.1%	12.6%	—
ROCE	23.1%	79.7%	18.0%	17.0%	—
Total Debt	₹27 Cr	₹32 Cr	₹68 Cr	₹157 Cr	+80.4%
Free Cash Flow	-₹7 Cr	-₹1 Cr	-₹63 Cr	-₹72 Cr	—

🟢 Revenue has grown at 55.0% a year over 3 years.

🟢 EBITDA has grown at 80.3% a year over 3 years.

🟢 EBITDA Margin has risen from 5.8% to 9.0% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 127.5% a year over 3 years.

🔴 ROE has fallen from 36.7% to 12.6% over 3 years (-24.1 pts).

🔴 ROCE has fallen from 23.1% to 17.0% over 3 years (-6.2 pts).

🔴 Total Debt has grown at 80.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹459 Cr

Total Liabilities

₹296 Cr

Cash & Equivalents

₹90 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹90 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.6%

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

2 mixed4 general

SOLARIUM GREEN ENERGY LIMITED (SOLARIU) 52 Week Low Streak: Second Straight Session Near Yearly Low

Univest, 09 Oct

Compare with

Equitymaster, 13 Oct

Solarium Green Energy Secures ₹186.525 Crore Solar EPC Subcontract Under MAHAGENCO in Maharashtra

scanx.trade, 23 Jun

Solarium Green Energy rises after bagging Rs 187-cr solar EPC order in Maharashtra

Business Standard, 24 Jun

SOLARIUM GREEN ENERGY Share Price update after today’s rise

Univest, 28 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Solarium Green Energy - 10 stocks Mukul Agrawal bought in September quarter amid Rs 7,700 crore portfolio reshuffle

The Economic Times, 05 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health · Profitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑