After Module Expansion, Solex Eyes Progress On BESS Manufacturing By Late FY27

Indian solar module manufacturer Solex Energy plans to show progress on Battery Energy Storage System (BESS) manufacturing toward the end of FY27. During its latest earnings call, the company’s management informed investors that preparations are underway for its entry into the segment.

Management said initial progress could become visible in late FY27, with the business expected to gain momentum in FY28. Chetan Shah, Chairman and Managing Director of Solex Energy, said the company has already initiated discussions with technology partners for manufacturing containerised BESS solutions and large-scale system kits. He added that the company will share further details once its study and business plan are finalised.

Shah noted that the BESS journey is likely to begin in the later part of FY27, around December 2026 or January 2027, and is expected to accelerate through 2028. He said the company expects the opportunity to peak around October 2028. He added that entering the segment with the right technology partner is critical, as the business involves not only batteries but also software, battery management systems and safety aspects. The company is currently in discussions with leading firms in the space to support its manufacturing plans.

Expansion of Module Biz

Solex Energy Limited has announced the commercial commissioning of its 2.2 GW solar PV module manufacturing facility at Tadkeshwar, Gujarat, marking a key milestone in its scale-up strategy, during its Q3 and 9M FY26 earnings call held on February 12, 2026.

Chairman and Managing Director Chetan Shah said the newly commissioned facility began commercial production in November 2025, strengthening the company’s manufacturing capabilities but temporarily weighing on margins due to higher fixed costs during the ramp-up phase.

The company expects operating leverage to normalise margins from Q4 onward as utilisation improves. Demand remains strong across the IPP and C&I segments, particularly for high-efficiency N-type TOPCon G12R modules.

During the quarter, Solex secured:

₹544 crore order from Zelestra Group entities for execution between February and November 2026

₹289 crore order from a major IPP for N-type TOPCon modules

The company’s order book now exceeds ₹4,000 crore, including EPC orders.

Vision 2030: Integration and Technology Roadmap

Solex currently operates 4 GW of module manufacturing capacity, with plans to expand to 10 GW by 2030. The company is also planning:

• A 2.2 GW N-type TOPCon Plus solar cell line by 2027

• Upstream expansion including 10 GW solar cell capacity and 2 GW ingot and wafer production

The company recently unveiled India’s first Rear Contact solar module (TAPI Rear Contact), with commercial production targeted by FY27. It has partnered with ISC Konstanz (Germany) for advanced cell development and TT Vision (Malaysia) for automation and process optimisation.

Policy Support Strengthens Demand Outlook

Management highlighted strong policy tailwinds from the Union Budget 2026-27, including:

• ₹30,540 crore allocation for solar schemes (up 32%)

• ₹22,000 crore for PM Surya Ghar Muft Bijli Yojana (up 29%)

• ₹5,000 crore under PM-KUSUM

These measures are expected to accelerate rooftop and agri-PV adoption, supporting long-term domestic demand.

Inventory, Raw Material Trends and Execution

As of December 2025, Solex held:

• ₹150 crore finished goods inventory

• ₹200 crore raw material inventory

This inventory is expected to cushion the company against raw material price volatility in the near term. However, management noted that solar cell prices have recently risen by 110–120%, which may delay some projects as customers reassess feasibility.

Global Manufacturing Partnerships

The company confirmed manufacturing relationships with global module players, including Jinko previously and Longi currently, with an order pipeline of around 1.2 GW under such arrangements.

With rising capacity, strong order inflows and expanding technology partnerships, Solex remains confident of achieving ₹1,700–1,800 crore revenue in FY26 while progressing toward long-term integration and growth in India’s solar manufacturing ecosystem.