Jefferies has reiterated a ‘Buy’ call on Emmvee Photovoltaic Power with a revised price target of Rs 360, implying an upside of about 36% from current levels. The brokerage sees sustained growth driven by a 9.4 gigawatt order book, improving demand conditions expected in FY27, and capacity expansion that supports revenue and earnings visibility over the next few years.
The firm also notes that the stock trades at a discount of nearly 35% to other solar sector plays, which strengthens its conviction on the rating.
Jefferies on Emmvee Photovoltaic: Strong earnings beat and scale-up
Jefferies said Emmvee delivered a performance that exceeded expectations across key metrics. Revenue rose to Rs 1,738.8 crore in Q4FY26 from Rs 1,071.7 crore in 4QFY25, marking a 62% year on year increase. Earnings before interest, tax, depreciation and amortisation reached Rs 571.1 crore during the same period, while profit after tax climbed to Rs 392.4 crore, both ahead of the brokerage’s estimates by 13% and 17% respectively.
The firm attributes this to strong volume growth and execution. Solar cell production rose to 428 megawatts in 4QFY26 from 264 megawatts in 4QFY25, reflecting scale benefits. However, margins saw some pressure on a sequential basis due to a higher share of non domestic content requirement module sales.
“Emmvee reported a beat with Ebitda and profit after tax ahead of our estimates, supported by strong revenue growth and execution,” Jefferies said.
The brokerage added that despite margin movement during the quarter, the overall earnings trajectory remains intact as the company scales up capacity and improves utilisation.
Jefferies on Emmvee Photovoltaic:Order book giving visibility into FY28
A key factor in Jefferies’ positive stance is the order book, which stood at 9.4 gigawatts in 4QFY26, broadly steady on a sequential basis but significantly higher compared to earlier years. Deliveries scheduled over the next 12 to 18 months amount to 6.3 gigawatts, offering strong near to medium term revenue visibility.
The brokerage noted that this pipeline provides clarity on earnings growth over FY27 and into the first half of FY28, which is critical in a capital intensive business like solar manufacturing.
“Deliveries over the next 12 to 18 months provide strong revenue and Ebitda visibility for the company,” Jefferies said.
Jefferies also pointed out that the company’s order book has expanded sharply in the last two years, as seen in the chart on page 1 of the report, where it has grown from below 1 gigawatt in FY23 to over 9 gigawatts by FY26.
Jefferies on Emmvee Photovoltaic capacity expansion
Emmvee Photovoltaic Power Ltd. has been ramping up manufacturing capacity, which remains central to Jefferies’ growth estimates. The company commissioned a 2.5 gigawatt module line in December 2025, taking total module capacity to 10.3 gigawatts.
Looking ahead, the company plans to scale up further through an integrated TopCon cell and module facility with a planned 6 gigawatt capacity. Land for this project has already been acquired.
Jefferies expects these expansions to drive volume growth over the next few years, which in turn supports its projection of a 26% compound annual growth rate in earnings before interest, tax, depreciation and amortisation between FY26 and FY28.
“We project 26% Ebitda compound annual growth rate over FY25 to FY28 on the back of rising volumes from the 9.4 gigawatt order book,” Jefferies said.
The brokerage also expects module capacity to reach 16.3 gigawatts by FY28, with production scaling accordingly, as outlined in the base case assumptions on page 2 of the report.
Jefferies on on Emmvee Photovoltaic: Capital discipline
Despite ongoing expansion, Emmvee’s balance sheet remains in a comfortable position. The company ended FY26 with a net cash position, even as it prepares for a new round of capital expenditure.
Jefferies expects the net debt to equity ratio to remain around 0.5 times over FY27 and FY28 as the company uses leverage to fund expansion while maintaining financial discipline.
Return metrics have also improved. Annualised return on capital employed stands at 36%, driven by strong profitability in domestic content requirement segment sales.
“Balance sheet is net debt free as the company begins expansion capex, and return ratios remain strong,” Jefferies said.
The brokerage also flagged that working capital has increased, with working capital days rising to 111 in FY26 from 100 in FY25. This was due to inventory build up aimed at locking in input costs. However, it expects some normalisation as cost conditions stabilise in FY27.
Jefferies on on Emmvee Photovoltaic demand outlook
Jefferies expects the broader renewable energy segment to benefit from improving power demand starting FY27. It links this to structural factors such as energy security requirements and policy support.
The brokerage believes solar manufacturing companies like Emmvee are well positioned to capture this demand, particularly with domestic capacity expansion and policy incentives.
“We see renewable benefiting from geopolitical need of energy security and improving demand conditions,” Jefferies said.
It also noted that Emmvee has competitive advantages including lower operating costs due to its manufacturing setup and early adoption of advanced technologies such as TopCon cells.
Conclusion
Jefferies builds its case on a combination of earnings delivery, order book strength, and expansion plans that feed into steady growth expectations over the next few years. The brokerage sees visibility for Emmvee extending well into FY28, supported by execution and capacity additions.
With the stock trading below peer valuations and a target price of Rs 360, the firm maintains its positive stance, while keeping an eye on demand trends and execution risks tied to capacity build out.
Disclaimer: Investment analysis and price targets provided by brokerages are for informational purposes only and do not constitute an offer or solicitation to buy or sell securities. The stock market involves significant risks, and specific financial instruments like equity shares can be highly volatile. Readers are strongly advised to consult with a SEBI-registered investment advisor or a qualified financial professional before making any investment decisions based on these projections.
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