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Two SMEs Power India's Solar Growth
8 Oct
Summary
- Two quality SMEs with strong solar exposure are identified.
- Ganesh Green Bharat and GRE Renew Enertech show robust growth.
- Both companies navigate solar manufacturing, EPC, and energy storage.
India's solar sector presents a significant growth opportunity, but not all small and medium-sized enterprises (SMEs) are equally positioned. A rigorous quality screen identified two standout SMEs with robust financial health and substantial exposure to the solar market: Ganesh Green Bharat and GRE Renew Enertech. These companies have demonstrated exceptional performance, with strong profit growth and return on capital employed (ROCE) exceeding 30% as of FY26.
Ganesh Green Bharat specializes in solar PV module manufacturing and EPC services, planning to increase its manufacturing capacity to 2 GW by the end of 2027. It also has a significant order book worth Rs 470.2 crore for unexecuted solar modules and Rs 207.7 crore for allied services, while exploring battery energy storage systems.
GRE Renew Enertech focuses on solar EPC and RESCO models, with over 100 MWp of cumulative solar installations by June 2026. The company recently secured a Rs 175 crore solar EPC order and aims to expand its RESCO assets significantly by FY27, showcasing its growing capabilities in utility-scale projects.
While both companies are not pure-play solar entities, their significant involvement in the sector, coupled with strong financial metrics and strategic expansion plans, positions them as key players. However, investors must remain aware of potential risks such as execution challenges, working capital needs, and the inherent volatility associated with SME-listed stocks.
