Whalesbook
📉 The Financial Deep Dive
Saatvik Green Energy Limited has reported an exceptional Q3FY26 and nine months ended December 31, 2025 (9MFY26), showcasing robust top-line growth and significant capacity expansion. The company's revenue for Q3FY26 surged by an impressive 143% year-on-year to INR 12,570 million. This strong top-line performance translated to a 134% year-on-year increase in EBITDA, which reached INR 1,647.6 million, albeit with an EBITDA margin of 13.11% for the quarter. Profit After Tax (PAT) mirrored this growth, climbing 144% YoY to INR 987.2 million.
For the nine-month period (9MFY26), revenue expanded by 137% YoY to INR 29,407.8 million, accompanied by a 135% YoY rise in EBITDA to INR 4,693.4 million. The EBITDA margin for the nine-month period stood at a healthier 15.96%, reflecting sustained operating efficiency. PAT for 9MFY26 grew by 145% YoY to INR 3,007.9 million, with a PAT margin of 10.23%.
📊 The Quality & The Grill
The quality of earnings faced scrutiny due to a dip in the Q3 EBITDA margin compared to the nine-month average. Management attributed this compression to external factors, primarily volatility in commodity prices (silver, copper, aluminum) and currency movements (dollar). These factors are expected to normalize in Q4FY26. Furthermore, an increase in interest costs was described as temporary, stemming from short-term borrowing used to finance raw material inventory amidst price fluctuations. This is anticipated to stabilize by March.
The company successfully commissioned its 2 GW in-house EPE film manufacturing facility in Ambala, a significant step in its vertical integration strategy. Progress on the greenfield integrated manufacturing project in Odisha is steady, with the 4 GW module plant slated for commissioning by the end of FY26 and commercial production expected from Q1FY27. The 4.8 GW solar cell capacity in Odisha is targeted for commercial production in H2FY27.
🚀 Risks & Outlook
Saatvik Green Energy maintains a healthy order book of approximately 5.05 GW, valued at around INR 6,500 crores, providing substantial revenue visibility. Management expressed confidence in sustaining its high growth momentum (over 100% YoY) for the current and upcoming fiscal years. Long-term strategic plans include further backward integration into ingot and wafer manufacturing, contingent on policy clarity. The company also aims to diversify into solar pumps, inverters, and EPC services, targeting these segments to constitute 15% of its business.
Key risks highlighted include the ongoing commodity price and currency volatility impacting margins, and the dependence on policy clarity for future backward integration. The commencement of cell manufacturing is expected to unlock value, particularly concerning Domestic Content Requirement (DCR) policies. Capex for the Odisha project is INR 1,850 crores, which is fully funded, and the net debt stood at INR 749 crores as of 9MFY26. Management welcomed competition, noting that the Indian renewable energy sector's demand growth can absorb increased capacities.