Solar stock jumps 9% after reporting 580% YoY increase in net profits in Q2

Synopsis:
The shares of this solar PV company were in the news today following the announcement of its results with growth in performance metrics as well as other operational highlights.  

The shares of this company, which is an integrated solar PV module and cell manufacturer, had its shares in the limelight today after announcing its Q2 results. Let us see how well the company has performed and what its future course of action is. 

With a market cap of Rs 16,377 crore, the shares of Emmvee Photovoltaic Power Ltd gained about 9 per cent, reaching a high of Rs 237.50 in today’s trading session when compared to its previous day’s closing price of Rs 218.65. The shares are trading at a PE of 28.4, whereas the industry PE is 33.1. 

Q2 FY26 result highlights and more

The revenue from operations for the company stood at Rs 1,131 crore when compared to Rs 402 crore in Q2 FY25, growing by about 181 per cent on a YoY basis and on a QoQ basis increasing by 10 per cent from Rs 1,028 crore in Q1 FY26.

The PAT grew by about 580 per cent on a YoY basis when you compare the Q2 FY26 profit at Rs 238 crore to Rs 35 crore in Q2 FY25, and on a QoQ basis has increased by 27 per cent from Rs 188 crore in Q1 FY26. 

Emmvee’s operations fired on all cylinders this half-year. Demand for its high-efficiency solar modules surged, lifting revenue by a massive 193% YoY. What makes this even stronger is that the company didn’t just grow fast; it grew smarter. Better production efficiencies and tighter cost control helped expand EBITDA margins, showing that Emmvee is scaling in a healthy, profitable way.

The successful IPO added another layer of strength. By using the funds to repay Rs 1,621 crore of long-term debt, Emmvee has sharply reduced its interest burden and improved financial flexibility. The remaining capital will support day-to-day operations and working capital, ensuring smoother execution and lower finance costs. Overall, the company exits the half-year with stronger fundamentals and far more breathing room for future growth.

Emmvee’s management sounds upbeat about the coming months. With H1 EBITDA already ahead of last year and new cell manufacturing lines kicking in, the company expects the momentum to continue. Capacity expansion for FY26 is running on time, and fresh additions will go live this month. Looking further ahead, Emmvee plans to scale module capacity to 16.3 GW by FY27, giving it the size needed to ride the strong solar demand cycle.

Financially too, the outlook is reassuring. The company believes H2 will be even better than H1, supported by a steady topline run rate and positive operating cash flows. Long-term debt is now below Rs 100 crore, and the large Rs 5,500 crore capex is already secured through internal accruals and IREDA funding. Overall, the guidance reflects a company growing fast, staying disciplined, and preparing itself for the next big leap

Management Commentary

Mr Manjunatha Donthi Venkatarathnaiah, Chairman and Managing Director, has said, “We are delighted to report a historic first half for Emmvee, characterised by record financial performance and our successful transition into a publicly listed entity. Delivering a nearly 7x growth in profit after tax for the first half of the year is a testament to our robust manufacturing capabilities and the trust our customers place in our high-quality solar solutions. 

With the successful completion of our IPO, we are better capitalised than ever to execute our expansion strategies. As India accelerates its journey towards 500 GW of renewable energy capacity, Emmvee is strategically positioned to capture significant market share with our advanced technology and integrated manufacturing ecosystem.”

Emmvee Photovoltaic Power Limited is a Bengaluru-based renewable energy company that has grown steadily since 2007 into a major manufacturer of solar panels and systems. What sets Emmvee apart is its focus on high-efficiency, modern manufacturing and a clear commitment to clean energy. The company builds reliable, high-quality solar solutions that help customers across the world move toward a greener future, making Emmvee an important contributor to India’s rapidly expanding solar ecosystem.

Written by Leon Mendonca

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