IPO Note : Saatvik Green Energy Ltd by Geojit Financial Services Ltd
Pathway to Scalable Growth...
Saatvik Green Energy Ltd. (SGEL), established in 2015, is a solar PV module manufacturer and EPC provider listed in MNRE’s Approved List of Module Manufacturers (ALMM). With 4.8 GW of module capacity and ~69 MW of EPC projects, the company delivers end-to-end solutions spanning manufacturing, private labelling, large-scale production, and technical support. Operating three facilities in Ambala, Haryana, SGEL produces high-efficiency Mono PERC and N-TopCon modules in mono-facial and bifacial variants for residential, commercial, and utility-scale applications.
* India’s solar manufacturing sector is expanding rapidly, with 91 GW of module and 25 GW of cell capacity as of June 2025. Supported by favourable policies and rising demand, the country is projected to add 150–170 GW of solar capacity between FY26 and FY30. (Source: CRISIL Intelligence).
* SGEL’s revenue grew at an 88% CAGR from Rs.609cr in FY23 to Rs.2,158 cr in FY25, driven by volume recovery and a favourable product mix. PAT reached Rs.214cr in FY25, marking a 571% CAGR over FY23–25.
* In FY25, SGEL posted EBITDA and PAT margins of 14.8% and 9.9%, respectively. Margins are expected to improve with upcoming cell and other module components manufacturing. The company also delivered strong returns, with RoE at 63.4% and RoCE at 39.7%.
* SGEL’s debt-to-equity ratio improved from 7.5x in FY23 to 1.5x in FY25 and is projected to fall further to 0.5x with IPO-led debt repayment.
* SGEL serves a diversified global client base across utility, Commercial& Industrial, rooftop, and solar pump segments, with a total solar module order book of 4.05 GW as of June 2025.
* SGEL is establishing an integrated facility in Odisha with 4.8 GW cell capacity by FY27 and 4 GW module capacity by FY26. Additionally, its planned ingot, wafer, and cell facility at Madhya Pradesh, will provide long-term scalability.
* At the upper price band of Rs.465, SGEL is valued at 27.6x FY25 P/E, which is reasonable versus peers. With strong financials, expanding capacity, backward integration, and declining debt, SGEL’s earnings is well-positioned to benefit from India’s solar growth. Hence, we recommend a ‘Subscribe’ rating on a longterm basis.
Purpose of IPO
The offer comprises a fresh issue of Rs.700cr and an Offer-for-Sale (OFS) of Rs.200cr. Net proceeds will be used for debt repayment / prepayment of SGEL (Rs.10.82cr). Investment in subsidiary (Saatvik Solar Industries Pvt Ltd) for debt repayment (Rs.166.44 cr).Setting up a 4 GW Solar PV Module Facility in Odisha (Rs.477.23cr) and general corporate purposes.
Key Risks
* Revenue Concentration: In FY25, the top 10 customers accounted for 58% of the company’s revenue.
* Supplier Dependence: The company relies heavily on third-party suppliers for materials and components.
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