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Saatvik Green Energy: Solar Goliath in the Making?
16 Jul
Summary
- Motilal Oswal initiates coverage with a 'Buy' rating, seeing over 26% upside.
- Company plans aggressive capacity expansion and backward integration into cells and wafers.
- A strong order book ensures 100% revenue visibility for FY27.
Motilal Oswal has initiated coverage on Saatvik Green Energy, assigning a 'Buy' rating and setting a target price of Rs 565, predicting over 26% stock upside. The brokerage views Saatvik as a "David among solar manufacturing Goliaths," citing a substantial solar market opportunity in India.
India is entering a significant power investment cycle, with solar energy expected to constitute 40% of total installed power capacity by FY32. Growth is particularly strong in the commercial, industrial, and rooftop solar segments.
Saatvik Green Energy is undertaking aggressive capacity expansion, planning to increase module manufacturing from 4.8GW to 8.8GW by FY27. It is also backward integrating into solar cell and ingot-wafer manufacturing, strengthening its vertically integrated position.
This expansion is projected to drive robust financial performance, with estimated revenue, EBITDA, and adjusted net profit Compound Annual Growth Rates of 38%, 55%, and 44%, respectively, between FY26 and FY28.
The company boasts a strong order book of 5.9GW, valued at approximately Rs 8,000 crore as of March 2026. This backlog guarantees 100% revenue visibility for FY27, covering the next 18 months of execution.
Furthermore, Saatvik's move into cell manufacturing is expected to enhance EBITDA margins from 10% in FY27 to 15% by FY28, driven by benefits from backward integration and entry into the lucrative Domestic Content Requirement market.
