Indosolar Q2 FY2027 Profit Falls 89.17% as Revenue and Solar Module Sales Decline

Indosolar Limited has reported a decline in its financial performance and operational volumes for the second quarter and first half of the financial year 2026-27, according to its standalone unaudited financial results. The solar module manufacturer recorded lower revenue, operating earnings, and net profit compared with the corresponding periods of the previous financial year.

For the second quarter, revenue from operations stood at ₹155.59 crore, declining 23.19% from ₹202.55 crore in the same quarter of the previous year. Operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell sharply by 79.05% to ₹14.82 crore, compared with ₹70.73 crore a year earlier. As a result, the operating margin contracted to 9.52% from 34.92%.

The company’s profit after tax (PAT) also registered a significant decline during the quarter. Net profit decreased to ₹5.02 crore from ₹46.34 crore in the corresponding quarter of the previous financial year, representing a reduction of 89.17%. The net profit margin narrowed to 3.19%, compared with 22.88% in the year-ago period.

The financial results for the first half of FY2027 reflected similar pressure. Revenue from operations declined 43.62% to ₹223.95 crore from ₹397.22 crore in the corresponding period of the previous year. Operating profit stood at ₹63.28 crore, compared with ₹134.29 crore previously. Profit after tax decreased to ₹41.64 crore from ₹163.13 crore during the same period last year.

Indosolar’s manufacturing and sales volumes also declined during the second quarter. Solar module production reached 148 MW, compared with 244 MW in the corresponding quarter of the previous financial year. Module sales fell to 98 MW from 249 MW, indicating a substantial reduction in sales volumes during the reporting period.

The company’s performance comes amid changes in the regulatory environment, geopolitical uncertainties, elevated raw material costs, and capacity underutilisation across India’s solar manufacturing sector. Indosolar is also transitioning a significant portion of its production from tolling arrangements to its own manufacturing model, a shift that could influence operational volumes and financial performance during the transition.

Despite these challenges, the company is focusing on improving operational efficiency, maintaining cost discipline, and expanding its manufacturing capabilities. The proposed amalgamation with its parent company, Waaree Energies Limited, is expected to support operational synergies and strengthen its competitive position.

The proposed integration could help Indosolar improve manufacturing efficiency and support its long-term growth strategy as demand for solar energy equipment continues to develop in India.