Can Expansion & 'Beyond Bengal' Move Spur New Growth For Websol?

West Bengal-based solar cell manufacturer Websol Energy recently announced its financial results for the latest quarter (Q2). While the company reported a 10 percent rise in its net profit on a year-over-year (YoY) basis, it experienced a 31 percent decline in profit on a quarter-over-quarter (QoQ) basis.

The top management attributed this to an eight-day shutdown of its electrical operations due to work related to adding a new solar cell line, as well as the state’s festive season closures. The company generated total revenue of Rs 168 crore and a net profit of Rs 46 crore during the last quarter.

At the end of FY25, the publicly listed firm had reported total revenue of Rs 575.5 crore. Although its YoY growth was strong, it was among the lowest compared to other listed solar manufacturers. This was primarily because its revenue and business relied on its lone 600 MW mono-PERC solar cell line. However, it was an indication of a multifold increase in its. For instance, in the financial year 2022-23, the company had reported a total revenue of merely Rs 17.22 crores. 

What Is Going to Change for Websol?

Websol Energy, unlike in the previous year, is now on an expansion spree—both in terms of capacity and in exploring new manufacturing lines beyond West Bengal. In the last few months, two significant developments have taken place at the company, which could open a new growth path and lead to higher revenue and improved profitability if it manages its financials prudently.

The company now boasts a 1.2 GW solar cell line, with 600 MW added recently on September 27, 2025, based on mono-PERC technology. These cells are produced from the Falta Special Economic Zone (SEZ) in West Bengal. This is in addition to its 500 MW solar module manufacturing capacity.

The top management said the new line has achieved stabilisation in a short span of time and is likely to soon contribute significantly to its growth.

“In September 2025, we commissioned our new 600 MW Mono PERC solar cell line (Phase II) at Falta, West Bengal. I am pleased to share that production has already scaled up and we have successfully achieved efficiency levels of 23%+ within only one month of production. This expansion was funded completely through internal accruals, highlighting our ability to grow sustainably while maintaining a strong balance sheet. With our industry experience, efficient operations and long-term supplier partnerships, we were able to achieve a lower capital cost per MW compared to several other new projects,” said Sohan Lal Agarwal, MD of the firm.

Expansion Plan

The firm, led by Sohan Lal Agarwal, now has an ambitious plan that could potentially increase its revenue by almost four times, even with conservative estimates from its cell business alone. Websol’s Board has already approved an investment plan of Rs 3,000 crore to increase its total cell capacity to 5.2 GW by FY30, while its module capacity is expected to reach 4 GW.

In a recent development, the company has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to establish a 4 GW integrated solar cell and module manufacturing facility in Andhra Pradesh, indicating its intent to expand beyond West Bengal. This mirrors the approach taken by several other cell manufacturers who have set up facilities across multiple states for logistics and operational advantages.

Why South?

Producing cells in a southern state could help the company reduce logistics costs for supplies to southern module makers and enable exports through ports located in the region.

For example, Visakhapatnam Port—one of India’s 12 major ports—is a hub for exports and a gateway to many South Asian markets. Several companies, including RenewSys, Premier Energies, First Solar, Tata Power, Swelect Energy and Vikram Solar have also selected South India for their solar cell manufacturing plans.

Past Challenges & Turnaround

Its focus on cell production almost killed the firm, as it struggled for customers in a market ruled by Chinese imports till 2023-24. The focus on domestic manufacturing for cells and the broader uptick for the solar sector have seen Websol's fortunes revive, as one of the few experienced cell manufacturers in the country, which came into existence in the 1990s.  As investor interest and funds flowed, the firm's share price has been the best indicator of the change in fortunes, moving from Rs 202.45 on November 13, 2023, to Rs 1,352.80 on November 13 in 2025.   In 2022-20-23, the firm had to also discontinue its 250 MW cell line as part of the process to graduate towards the new Mono PERC technology.

This also led to a jolt to its financials, leading to losses. "On account of this, production had to be discontinued to dismantle the old manufacturing equipment and redesign the shop floor for the new operations. In view of this, the Company recorded a net loss of Rs 5.36Crores in the fourth quarter of ending 31.03.2023 and net loss of Rs 23.67Crores for the financial year 2022-23," the company's media release at the end of FY23 read. 

The solar manufacturer considered the proposal to raise resources by way of fresh issue of equity shares /  convertible debentures/equity share warrants etc. or any combination thereof through Promoters, Strategic investors, Institutional Buyers, FIIs, NRIs or Corporate bodies and executed several of these measures to boost its financials and to make its financials lucrative to regain the confidence of its investors. 

The company is currently supporting Indian solar module manufacturers by ensuring the availability of DCR mono-PERC cells. Until now, its supplies have remained largely domestic. With the introduction of ALMM for solar cells, early production capacity and its long-standing presence in this niche are likely to help the firm comply with the ALMM-II mandate and collaborate with a larger number of smaller domestic module makers, who will have no option but to use domestic cells from June 2026, when ALMM is expected to come into effect.

Unlike many other cell makers such as Premier Energies, RenewSys, Waaree Energies and others, the two known cell manufacturers from West Bengal—Websol Energy and Jupiter International—have so far focused primarily on cell production. Websol is now also considering expanding module production, while many other large players have diversified into areas such as inverters, transformers and other power sector verticals. On the other hand, Vikram Solar, which was into solar module manufacturing from West Bengal, recently raised funds through IPO to start solar cell business from Tamil Nadu besides expanding its module portfolio.