Motilal Oswal initiated coverage on Saatvik Green Energy with a ‘Buy’ rating. The brokerage sees an upside of more than 26% on the stock, with a target price of Rs 565 and calls it “David among solar manufacturing Goliaths.”
Massive solar market opportunity, aggressive capacity expansion, high revenue visibility, strong order book, and other factors led the brokerage to initiate coverage.
Massive solar market opportunity
India is entering a major power investment cycle, with an estimated Rs 40 lakh crore opportunity across the value chain through FY32. Solar energy is expected to be a primary driver, contributing approximately 40% of the country’s total installed power capacity by that time.
“Solar growth has been led by the commercial & industrial (C&I), rooftop solar, and PM-KUSUM segments, which are expected to account for over 50% of annual solar additions from FY27 onward,” read the research note.
Aggressive capacity expansion and vertical integration
The company is significantly scaling its operations, moving from a module manufacturing capacity of 4.8GW at the end of FY26 to a planned 8.8GW by FY27. Furthermore, the company is backwards integrating into solar cell (6GW) and ingot-wafer (6GW) manufacturing, which strengthens its competitive position as a vertically integrated player.
The substantial capital requirements and execution challenges associated with backward integration are likely to keep supply-side constraints intact through FY30 and beyond.
Strong financial growth projections
Driven by these new capacities, the company is expected to see a robust financial performance with an estimated revenue, EBITDA, and adjusted net profit CAGR of 38%, 55%, and 44%, respectively, over the FY26-28 period.
High revenue visibility from a strong order book
As of March 2026, the company holds a 5.9GW order book valued at almost Rs 8,000 crore. This backlog covers 100% of the projected revenue for FY27, providing clear visibility for execution over the next 18 months.
The company also maintained industry-leading capacity utilisation, with CUF of 84% in both FY25 and FY26, underscoring its ability to quickly stabilise module plants.
Margin expansion through high-margin segments
By establishing its own cell manufacturing, the company can enter the more lucrative Domestic Content Requirement (DCR)-compliant module market. This shift, combined with benefits from backward integration, is projected to expand the company’s EBITDA margins from 10% in FY27 to 15% by FY28.
“We expect EBITDA margins to remain at 10% in FY27 amid industry overcapacity and high input costs, though they should improve to 15% in FY28 as cell operations stabilise and backward integration benefits accrue. Meanwhile, smaller module players without cell capacities are likely to face weak margins, providing the company with a competitive edge,” said Motilal Oswal.
Saatvik Green Energy share price performance
The share price of Saatvik Green Energy has risen 3% in the last five trading sessions. The stock has dropped 1.3% in the past one month, but has surged 18.5% in the last six months. Saatvik Green Energy’s share price has given a return of 7% over the previous one year.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
