Saatvik Green Energy Shares Jump 5% on New SECI Order
Shares of the solar module maker rose nearly 5% after its order book expanded to ₹9,700 crore, driven by a major contract with SECI.
Key points
- Saatvik Green Energy's order book expanded to ₹9,700 crore after securing a ₹1,040 crore contract from SECI.
- The company plans to expand solar cell capacity to 6 GW by FY28, aiming to lift EBITDA margins to 15%.
- Motilal Oswal maintains a Buy rating with a ₹508 target, citing 36% revenue CAGR expected through FY28.
Saatvik Green Energy shares climbed 4.88% to ₹432.35 on the BSE on Monday, reacting to a reiterated Buy rating from Motilal Oswal Financial Services. The brokerage maintained a target price of ₹508, implying a 23% upside from the reference level, driven by the company's expanding order book and upcoming capacity additions.
As reported by CNBC TV18, the positive sentiment was triggered by fresh contracts worth approximately ₹1,530 crore. This influx of business pushed the company’s total order book to around ₹9,700 crore, up from ₹8,200 crore as of August 18, securing significant revenue visibility for the next two fiscal years.
Order Book Provides FY27 Visibility
Motilal Oswal notes that the current order book covers almost 100% of projected revenue for FY27 and roughly 60% for FY28. A significant portion of this value comes from a 600-megawatt-peak domestic content requirement module order secured from the Solar Energy Corporation of India, valued at ₹1,040 crore.
Deliveries for the SECI contract are scheduled for December 2027. The brokerage highlights that this large-scale domestic order reduces execution risk and locks in volume commitments, providing a stable foundation for the company’s near-term financial performance.
Cell Expansion Targets Margin Growth
The brokerage identifies the company’s entry into solar cell manufacturing as a key margin driver. The first 2.4-gigawatt production phase is on track to begin in the third quarter of FY27, with a further 3.6-gigawatt expansion expected by the end of FY28, totaling roughly 6 gigawatts of capacity.
In-house cell production is expected to lower input costs and increase profitability. Motilal Oswal estimates EBITDA margins will rise from approximately 8% in FY27 to around 15% by FY28 as the company scales its domestic manufacturing footprint.
Revenue Growth Projected At 36%
Looking ahead, the brokerage projects a compound annual growth rate of 36% for revenue and 50% for EBITDA between FY26 and FY28. This growth is underpinned by India’s installed solar capacity reaching 168 GW by August 2026 and sustained demand for locally manufactured modules.
