IPO closes on 13 Nov'25
Emmvee Photovoltaic Power Ltd
Minimum Investment
₹ 14,973 / 69 shares
Our Verdict:
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- Emmvee Photovoltaic Power Ltd (EPPL) has delivered robust financial performance, driven by rapid expansion of its manufacturing capacity. In just two years, its revenue has nearly quadrupled to over Rs 2,300 crore in FY25. This growth, coupled with operational efficiency and backward integration into solar cell manufacturing, has resulted in a significant improvement in margins.
- Looking ahead, EPPL aims to double its solar module capacity by H1FY28. Backed by government initiatives like the PLI Scheme, PM-KUSUM and Suryodaya Yojana, India’s solar manufacturing ecosystem is expanding rapidly. Solar PV module and cell capacities have risen from 21 GW and 3.2 GW in March 2022 to an estimated 82 GW and 23 GW by March 2025, and are projected to grow roughly twofold and fourfold by FY30.
- From a valuation standpoint, the IPO appears fairly priced with a P/E multiple of around 35x—below the industry average of approximately 47x.
- With a clear focus on capacity expansion, adoption of advanced TOPCon technology and a robust 5 GW order book, EPPL exhibits solid execution capabilities and growth visibility. While listing gains may be constrained by market sentiment, the long-term outlook remains promising.
- Given the company's solid financial track record, growth prospects and reasonable valuation, investors may consider subscribing to the IPO from a medium-to-long term perspective.
About the company
Founded in
21 Mar'07
Managing director
Manjunatha Donthi Venkatarathnaiah
- EPPL is one of India’s leading solar module manufacturers and the second-largest pure-play integrated solar photovoltaic (PV) module and solar cell producer in terms of production capacity as of March 31, 2025. The company operates four manufacturing facilities in Karnataka, equipped with advanced production technology.
- As of June 30, 2025, EPPL has an installed capacity of 7.8 GW for solar PV modules and 2.94 GW for solar cells. It is in the process of commissioning an additional 2.5 GW solar PV module line and setting up a new 6 GW integrated solar cell and module facility. Upon completion of these expansion projects, EPPL’s total installed capacity is projected to reach 16.3 GW for solar PV modules and 8.94 GW for solar cells by the first half of FY28.
STRENGTHS
- Exceptional Growth: EPPL has demonstrated remarkable growth between FY23 and FY25, achieving a CAGR of 94% in operating revenue, 258% in EBITDA and an impressive 541% in net profit.
- Margin Expansion: EPPL has consistently improved its profitability, with net margins rising from 1.45% in FY23 to 15.8% in FY25 and further to 18.26% in Q1FY26. EBITDA margins also expanded significantly—from 9.1% to 30.91%—reflecting disciplined cost management and strong operational leverage.
- Strong Return Ratios: EPPL boasts a stellar Return on Net Worth (RONW) of 69.44% for FY25, outperforming its peers. Additionally, a Return on Capital Employed (ROCE) of 23.33% highlights the company's efficient use of capital.
- Solid Order Book: EPPL’s order book has expanded at a remarkable CAGR of 209% between FY23 and FY25. As of June 30, 2025, the company holds a robust outstanding order book of 5.36 GW in solar PV modules worth over Rs 7,810 crore, providing strong revenue visibility in the medium term.
- Technological Leadership: EPPL has leapfrogged traditional technologies by scaling up production of TOPCon (Tunnel Oxide Passivated Contact) cells and modules—the current benchmark for solar efficiency. The company is also listed under the Government of India’s ALMM (Approved List of Models and Manufacturers) – List I, with a 5.1% market share as of May 2025, reflecting its credibility and technological edge.
RISK FACTORS
- Client Concentration: EPPL’s revenue base is heavily concentrated among a limited number of clients. In FY25, the top ten clients accounted for 85% of operating revenue, with the single largest client contributing 36%. Any loss or reduction in business from these key clients could materially impact the firm’s financial performance and revenue stability.
- Intense Industry Competition: The solar PV module industry is characterized by rapid technological advancement and intense competition. Continuous technological evolution, coupled with global oversupply, has led to persistent price declines, which could pressure margins and profitability.
- Pledged Shareholding: EPPL has pledged 51% of its shareholding in its material subsidiary, EEPL, as security for loans availed by EEPL. In the event of a default, invocation of the pledge could result in loss of control over the subsidiary, adversely affecting the firm’s operations, financial results and overall stability.
- High Leverage: As of Q1 FY26, EPPL’s total borrowings stood at Rs 2,032 crore, resulting in a debt-to-equity ratio of 2.82x. While this indicates high leverage, the company intends to use proceeds from the IPO to repay approximately 80% of its outstanding debt, which should significantly improve its balance sheet strength.
- Capacity Underutilization Risk: While EPPL continues to expand its manufacturing capabilities, underutilization of existing capacity remains a concern. Inefficient utilization of current or proposed production facilities could constrain operational efficiency, impact profitability and adversely affect cash flows.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 2,900 crore
Fresh Issue
₹ 2,143.86 crore
OFS
₹ 756.14 crore
Price range
₹ 206 - 217
Lot size
69 shares
Issue Objective
The net proceeds from the fresh issue will be utilised for the following purposes:
- Repayment or prepayment of certain borrowings availed by the Company and its material subsidiary; and
- General corporate purposes.
Dates
Bidding open
11 Nov'25
Bidding close
13 Nov'25
Allotment date
14 Nov'25
Refund date
17 Nov'25
Listing
18 Nov'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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