Indosolar Limited

Technology — Solar · NSE

₹214.70+₹4.31 (+2.05%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indosolar Limited engages in the manufacturing and trading of solar photovoltaic modules in India, Europe, the United States, Middle East, and Asia.

IndustrySolar

SectorTechnology

Employees91

Annual revenue₹675 Cr

How does it make money?

Turns over ₹675 Cr a year. Of every ₹100 of sales, about ₹37 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 91 employees supports ₹7.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.41 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?Some evidence

ROCE of 76.1% 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%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 38.9% a year
✗ Profit fell 68.7% in the latest year

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

66/ 100

Fair

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

5.4x

3Y Median

1.9x

40 monthly readings · mean 11.5x · range 1.3x–46.3x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 190% above its 3y median of 1.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 68% below the peer median of 16.5x.

vs. its own history

Expensive

1.9x median over 40 months · +190%

vs. sector peers

Cheap

16.5x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 95% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 76.1% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 100489.9% to 85.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9544.7% to 76.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 77% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 76.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 95% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 190% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 100489.9% to 85.9%. 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

1EBITDA margin holds above 38%✓ 40.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹53 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 73%✓ 76.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 1.9x✗ 5.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹893 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.4x

Cheap

Cheap against the generic band

P/B Ratio

3.11x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹40

Profitable

Profitable on a per-share basis

ROE

85.9%

Strong

Strong capital efficiency

ROCE

76.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.07x

Moderate

Moderate leverage

Revenue Growth (YoY)

-64.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-68.7%

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

₹53 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

57.3%

Good

Healthy core-business profitability

Net Margin

30.1%

Good

Strong bottom-line conversion

Current Ratio

6.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.78

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

220.5 / 256.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹321 Cr	₹675 Cr	—
EBITDA	-₹1 Cr	-₹1 Cr	₹95 Cr	₹272 Cr	—
EBITDA Margin	—	—	29.5%	40.3%	—
PAT (Net Profit)	₹1,081 Cr	-₹15 Cr	₹55 Cr	₹247 Cr	-38.9%
EPS	₹178.36	₹-3.71	₹13.17	₹59.27	-30.7%
ROE	100489.9%	—	135.5%	85.9%	—
ROCE	9544.7%	-6.9%	69.8%	76.1%	—
Total Debt	₹63 Cr	₹102 Cr	₹50 Cr	₹3 Cr	-63.5%
Free Cash Flow	-₹18 Cr	-₹42 Cr	₹64 Cr	₹53 Cr	—

🟢 EBITDA has turned positive, from -₹1 Cr to ₹272 Cr.

🟢 EBITDA Margin has risen from 29.5% to 40.3% over 3 years (+10.8 pts).

🔴 PAT (Net Profit) has shrunk at 38.9% a year over 3 years.

🔴 EPS has shrunk at 30.7% a year over 3 years.

🔴 ROE has fallen from 100489.9% to 85.9% over 3 years (-100403.9 pts).

🔴 ROCE has fallen from 9544.7% to 76.1% over 3 years (-9468.6 pts).

🟢 Total Debt has shrunk at 63.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹18 Cr to ₹53 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹344 Cr

Total Liabilities

₹57 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹78 Cr

Capex

-₹25 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.3%

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 mixed3 general

Indosolar Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 28 Sept

Indosolar shares locked in 5% lower circuit after weak Q1FY27 earnings

Business Standard, 24 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Waaree Energies Approves Indosolar Merger At 1:11 Swap Ratio, Bags 2 GW Solar Order

Sahi, 23 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

WAAREEINDO Stock Price and Chart — NSE:WAAREEINDO

TradingView, 13 Jan

Waaree Energies board approves Indosolar merger; public shareholders to get 1 share for every 11

BusinessLine, 23 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Indosolar Upper Circuit Streak: Day 2 Price and Data

Univest, 14 Oct

Watch Items

Revenue growth is negative (-64.9%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingValuation

WeakGrowth · 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.

1 of 5 tripwires tripped — Valuation vs its own median of 1.9x · see Key things to watch ↑