Emmvee Photovoltaic IPO

It is the second-largest pure-play integrated solar module and cell manufacturer in India by production capacity (March 31, 2025). Its large scale includes 7.8 GW module and 2.94 GW cell capacity (June 30, 2025), positioning it for large projects.

It demonstrated explosive financial expansion, with revenue from operations growing at a 94.38% CAGR and profit after tax growing at a massive 541.36% CAGR from FY23 to FY25. PAT reached ₹369 crore in FY25.

It maintains robust profitability, demonstrated by its EBITDA margin rising to 30.91% and profit margin to 15.80% in FY25. Its efficiency led to an exceptional return on equity (ROE) of 104.6% for FY25.

Future revenue visibility is strong due to an outstanding order book of 5.36 GW of solar PV modules as of June 30, 2025. The estimated value of this order book is massive, totaling ₹7,811.73 crore.

Operational efficiency is enhanced by increasing scale, as the average order size per customer grew significantly to 9.81 MW in the first quarter of FY26, compared to 7.63 MW in FY25. Larger orders streamline production and generally lead to lower manufacturing costs.

The company was one of the first in India to use the better TOPCon technology. Its 2.94 GW cell unit (as of May 31, 2025) is one of India’s largest TOPCon facilities. This technology results in solar cells with improved efficiency of up to 26% and great longevity. These efficient cells are better than older types, helping cut down costs for customers' solar projects.

Customer retention is robust, demonstrated by a repeat customer rate of 61.67% in the three months ended June 30, 2025. This indicates successful, ongoing relationships with major Independent Power Producers (IPPs) and reliable product quality, stabilizing sales volumes.

It maintains an aggressive expansion strategy, planning to grow its module manufacturing capacity to 16.3 GW by the first half of FY28. This planned growth is supported by a sanctioned term loan of ₹3,306 crore from IREDA.

The product quality leads to very low liability exposure, with total warranty claims amounting to almost nil in the three months ended June 30, 2025. The claim rate was only 0.0002% of total revenue in FY25, minimizing future service costs.

It faces high customer concentration risk, as the largest customer contributed 36.57% of the revenue and the top 10 customers contributed 93.96% of revenue in the three months ended June 30, 2025. Losing these major clients could severely impact its results and cash flows.

It maintains a high level of debt, totaling ₹2,032.11 crore as of June 30, 2025. This results in a debt-to-equity ratio of 2.82 times, exposing it to higher financing costs and refinancing risks.

Its supply chain relies heavily on imports, with China alone supplying 54.70% of total purchases in the three months ended June 30, 2025. This dependence exposes it to foreign exchange volatility, import duties, and geopolitical trade disruptions.

The company recently generated negative cash flows from operations, totaling ₹247.49 crore for the three months ended June 30, 2025. Continued negative cash flow could impact its liquidity and ability to implement future growth plans.

Manufacturing efficiency is constrained by low utilization; for instance, the cell manufacturing facility (Unit III) operated at only 42.83% capacity in FY25. This under-utilization leads to higher per-unit production costs, straining profitability.

Control over its key subsidiary, EEPL (which accounted for 71.89% of revenue in Q1 FY26), is risked by a pledge of 51% of its shares as security for loans (sanctioned amount ₹1,897.22 crore from IREDA). Default could lead to loss of control and major business disruption.

All current manufacturing units are clustered in Karnataka, India. This exposes operations to risks arising from specific local and regional factors, such as natural disasters or political/social events in that single state.