2 weeks ago
Brokerages See Over 25% Upside Despite Saatvik’s Weak Quarter
Saatvik Green Energy sells equipment used to make solar power.
Its sales and profits dropped sharply in the quarter ending June 2026.
The company said customers delayed purchases while waiting for clearer rules called ALMM-II.
Problems in the Middle East, higher costs and supply disruptions also hurt the business.
However, Saatvik received more future orders than it had in March.
Its debt compared with shareholders’ funds also improved.
Two brokerages think the company can grow strongly in the next few years.
They expect its own cell manufacturing and large order book to help profits recover.
Saatvik Green Energy’s consolidated gross sales fell 44% year on year to Rs 511 crore in the quarter ended June 2026.
Profit after tax declined 95% year on year to Rs 5.36 crore.
Management and Motilal Oswal cited geopolitical tensions, supply-chain disruptions and uncertainty over ALMM-II for weaker sales volumes.
The company’s order book rose to 6.35 GW in June 2026 from 5.89 GW in March 2026.
Ambit Capital and Motilal Oswal expect stronger volumes, in-house cell manufacturing and the order book to support medium-term profitability.
- Who
- Saatvik Green Energy, with assessments from Motilal Oswal Financial Services and Ambit Capital.
- What
- The company reported a sharp quarterly decline in sales and profit, while brokerages continued to forecast significant future growth and more than 25% upside.
- Where
- The articles do not specify a location for the company’s reported performance.
- When
- The reported quarter ended in June 2026; projections cover FY27 through FY29.
- Why
- Lower sales volumes were attributed to uncertainty over ALMM-II, geopolitical issues, inflation, supply-chain disruptions, commodity-price volatility, logistics costs and foreign-exchange fluctuations.
Near-Term Challenges
Medium-Term Optimism
Recent financial performance
Near-Term Challenges
Sales fell 44% and profit after tax fell 95% in the June 2026 quarter, reflecting lower volumes and cost pressures.
Medium-Term Optimism
The weak quarter is viewed as temporary, with Q2FY27 volumes expected to remain strong.
Industry and supply risks
Near-Term Challenges
Uncertainty over ALMM-II, geopolitical issues, higher cell and polysilicon prices, logistics costs and supply disruptions could limit margin expansion.
Medium-Term Optimism
In-house cell manufacturing and planned encapsulant capacity of 5 GW could provide greater supply-chain control and improve margins.
Future growth
Near-Term Challenges
Customers adopted a wait-and-watch approach, delaying purchases until there was greater clarity over ALMM-II.
Medium-Term Optimism
The 6.35 GW order book, higher expected volumes and brokerage growth estimates provide revenue visibility for coming years.
Key facts
- Quarterly gross sales
- Rs 511 crore in the quarter ended June 2026, down from Rs 915.73 crore a year earlier.
- Quarterly profit after tax
- Rs 5.36 crore, down 95% year on year.
- Order book
- 6.35 GW as of June 2026, compared with 5.89 GW in March 2026.
- Debt-to-equity ratio
- 0.99 times in Q1FY27, down from 1.28 times in Q1FY26.
- Five-year gross-sales growth
- Gross sales rose from Rs 480 crore in FY22 to Rs 2,262.2 crore in FY26.
- Ambit FY29 EBITDA estimate
- Rs 1,667.60 crore, compared with Rs 546.50 crore in FY26.
- Brokerage outlook
- Ambit Capital and Motilal Oswal see more than 25% upside and expect medium-term profitability improvement.
Quotes
Motilal Oswal Financial Services
Brokerage firm analyzing company performance
“"The weak performance was driven by lower sales volumes, as customers adopted a ‘wait‑and‑watch’ approach pending clarity on ALMM‑II, with geopolitical and supply chain disruptions, commodity price volatility, elevated logistics costs and foreign exchange fluctuations further weighing on performance."”
businesstoday.in
“"Q2FY27 volumes are expected to remain strong. However, margin expansion could remain limited due to ongoing geopolitical issues and the recent increase in cell and polysilicon prices. Encapsulant capacity is targeted to be increased to 5GW, which should provide greater control over the supply chain."”
businesstoday.in
Sources
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