Solarworld Q1FY27: PAT falls 26% YoY to ₹9.5Cr despite 147% revenue jump, margins halve
PAT -26.46% YoY · revenue +146.82% · margins compressing · miss vs street
₹168.42 Cr
+146.82% YoY
₹9.5 Cr
-26.46% YoY
5.33%
-10.7pp YoY
₹1.1
Solarworld Energy Solutions' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue rose 146.8% YoY to ₹168.42 Cr from ₹68.24 Cr, but consolidated PAT fell 26.5% YoY to ₹9.50 Cr from ₹12.91 Cr, and dropped 80.6% sequentially from ₹49.05 Cr in Q4 FY26. Consolidated basic EPS was ₹1.10 versus ₹1.74 a year ago. The YoY revenue jump was not matched by profit growth — net margin compressed to 5.34% from 16.03% a year ago and 8.08% in the preceding quarter, making this a case of profit lagging revenue rather than a clean beat.
Q1 FY-2027 vs prior quarters
The gap traces to the new Manufacturing segment, absent a year ago and contributing ₹25.35 Cr of revenue this quarter, which posted a segment loss of ₹2.58 Cr (widened from ₹1.46 Cr a year ago) against a still-profitable EPC segment (₹11.65 Cr segment profit on ₹143.96 Cr revenue, up from ₹10.13 Cr on ₹68.31 Cr). Group operating margin worked out to roughly 5.4%, below management's own guided 8-11% band from the FY26 concall. Standalone (EPC-only) numbers tell a materially better story — PAT of ₹16.22 Cr and NPM of 10.32%, more than 3 points above the reported consolidated NPM — confirming the manufacturing arm, not the core EPC business, is the source of the margin drag.
The stock went into the print at ₹158.1, down 25.6% over the past month of trading.
Management expects to achieve approximately 70% of its INR 28 billion order book in the current fiscal year, translating to revenue of around INR 2,000 crores. While BESS EPC revenue is projected to be INR 800-1000 crores, solar EPC revenue is expected to remain stable around INR 2,000 crores. The company anticipates o
— This quarter: missed
Against Univest's trailing-growth Q1 FY27 preview (revenue estimate of ₹112-129 Cr, extrapolated off a stated ₹81 Cr Q1 FY26 base), the company beat on revenue, but the profit trajectory reversed the estimate's implied growth, with PAT down YoY instead of up. Management's FY26-year-end guidance called for FY27 revenue of ~₹2,000 Cr (70% of a ₹2,800 Cr order book) with 8-11% margins; Q1's ₹168.42 Cr is ~8.4% of that revenue target — plausible for a back-loaded EPC business but too early to confirm — while Q1 margins sit at the very bottom of the guided range, a miss on that specific marker. The sharp QoQ decline in both revenue (-71.6%) and profit (-80.6%) mirrors Q4's typical fiscal-year-end billing spike (Q4 FY26 revenue was ₹591.81 Cr) rather than any new weakness. Separately, the auditors' emphasis of matter on the SJVN Green Energy Limited dispute is unchanged from last quarter: ₹49.49 Cr of receivables remain contested before the Disputes Adjudication Board, with bank guarantees extended to August 31, 2026, and no provision taken as management maintains confidence in a favourable outcome.
W1
Manufacturing segment (Znshine Solarworld) loss trajectory — was ₹2.58 Cr this quarter, widened YoY; watch for narrowing as utilization builds
W2
Group OPM recovery toward management's guided 8-11% band from Q1's ~5.4%
W3
SJVN DAB adjudication outcome — bank guarantees extended to Aug 31, 2026, ₹49.49 Cr receivable at stake
Source stated in ₹ Million (segment-table header confirms); divided by 10 for ₹ Crore. Row-column order for PBT/PAT lines appeared transposed in raw extraction but was cross-verified via totalIncome−totalExpenses and PBT−tax=PAT checks across both statements — fully consistent. Consolidated PBT includes ₹0.125 Cr JV/associate share. New Manufacturing segment (no YoY base) posted a widening operating loss, pulling consolidated margins well below standalone. SJVN Green Energy dispute (~₹49.5 Cr receivables, bank guarantees extended to Aug 31, 2026) is unchanged from last quarter — no provision taken.