Saatvik Green Energy IPO

The company achieved a CAGR of 88.32% in revenue from operations from FY23 to FY25, coupled with a PAT increase from ₹4.7 crore to ₹213.9 crore in the same period, demonstrating robust financial expansion and profitability.

As of March 31, 2025, it is a leading solar PV module manufacturer with 3.8 GW operational capacity and an installed EPC base of 69.12 MW. This integrated model positions it as one of the few companies offering comprehensive module manufacturing, EPC, and O&M services.

The company consistently improved its financial performance, with EBITDA margins rising from 3.92% in FY23 to 16.40% in FY25. It also shows high capital efficiency with Return on Equity (ROE) of 63.41% and Return on Capital Employed (ROCE) of 60.45% in FY25.

It is well-positioned to leverage industry growth, with an ALMM-approved installed capacity of 3.68 GW (as of the RHP date) and a product portfolio including high-demand N-TopCon solar modules, enabling it to capture favorable market tailwinds in India's rapidly expanding solar sector.

The company benefits from a diversified client base across residential, commercial, and utility sectors, operating in India, North America, Africa, and South Asia. Its active customer base grew at a 25.9% CAGR from March 2023 to March 2025.

The company demonstrates improving financial health with its debt-to-equity ratio decreasing from 7.13 times in FY23 to a moderate 1.36 times in FY25, indicating a more stable and less leveraged financial position.

A substantial portion of the company's revenue relies on a limited number of clients, with the top 10 customers contributing 57.77% of revenue in FY25, while the top customer accounted for 16.92% of the revenue during the period, indicating high dependence. The loss of any major customer could severely impact its financial condition and operations.

A major portion of IPO proceeds (₹477.23 crore) is allocated to a new 4 GW manufacturing facility. This large project is vulnerable to unanticipated delays, cost overruns, and challenges in obtaining necessary approvals, potentially impacting profitability and returns.

A significant portion of materials, particularly solar cells and solar aluminum frames, is imported. The company sourced 42.24% of materials from China in FY25. The cost of imported raw materials and services accounted for 45.36% of total purchases. This makes the company vulnerable to import duties and restrictions imposed by the Government of India or other international organizations.

The company faces challenges in retaining its workforce, with an attrition rate of 17.22% in FY25 (and higher historically at 41.32% in FY23). This high turnover, particularly for skilled personnel, could disrupt operations and increase recruitment and training costs, impacting growth.

As of March 31, 2025, the company had overdues of ₹311.97 crore to 6 material creditors, representing a potential strain on its liquidity and ability to meet short-term financial obligations. This suggests challenges in managing payables.