Karnataka-based Emmvee Photovoltaic Power, a promoter-funded company with no external equity investors, is coming with a ₹2,900-crore issue on November 11, after a sharp scale-up in capacities along with record profitability in FY25 and Q1 FY26.
As the second-largest pure-play integrated module-cell manufacturer, Emmvee has a track record of 18-plus years, a credible operating model and near-term visibility.
At the upper end of the ₹206-217 IPO price-band, the stock is valued at about 41 times FY25 earnings and roughly 29 times trailing earnings, which include an exceptionally-strong Q1 FY26 (50 per cent of FY25 profit). This makes the issue likely priced off peak-cycle profitability rather than steady-state earnings.
The IPO consists of a ₹2,144-crore fresh issue (9.88 crore shares) and a ₹756-crore (3.48 crore shares) offer-for-sale. While the company plans to pare over ₹1,600 crore of debt with the IPO proceeds, borrowings are likely to rise again as Emmvee undertakes a ₹5,500-crore capex for 6 GW of new cell and module capacity.
Despite the positives, a key risk is margin normalisation. EBITDA margins of over 30 per cent in FY25 and Q1 FY26 are well above the 8-16 per cent range typically seen in integrated peers in FY23 and FY24. With substantial domestic cell and module capacity addition expected across FY26-27, realisations and utilisation rates could also come under pressure.
Comparable listed peers (Waaree Energies and Premier Energies) also face medium-term risks as ALMM (approved list of modules and manufacturers) module capacity at 110 GW is now nearly twice the domestic demand, suggesting Emmvee may not remain an outlier on margin strength. For solar cells, supply-demand parity is anticipated by end-FY27. Waaree and Premier stocks have corrected 10-14 per cent in the last one year, reflecting the cautious mood.
Given Emmvee’s valuation, dependence on cyclical profitability and upcoming debt-funded expansion, risk-averse investors may prefer to wait for post-listing price discovery. India’s rapid build-out of solar manufacturing capacity also raises exposure to technology shifts.
Business
Emmvee, which began module production in 2007, now runs 7.8 GW of installed module capacity and 2.9 GW of cell capacity. A 2.5-GW module line will come onstream in FY26, and a 6-GW integrated cell-module facility is planned for H1 FY28, taking total capacities to 16.3 GW (modules) and 8.94 GW (cells). Integrated manufacturing offers better cost control, quality consistency and supply-chain security. Imported inputs form the bulk of Emmvee’s raw material basket, with China accounting for the largest share.
Solar panels are made by turning purified silicon into wafers, converting them into power-generating cells and assembling those cells into weather-proof modules. The company enjoys an early-mover advantage in higher-efficiency TOPCon technology through its Fraunhofer ISE collaboration. Its portfolio spans bifacial and mono-facial TOPCon modules and cells, alongside Mono PERC modules. The revenue mix has shifted decisively towards TOPCon, mirroring the market’s rapid technological transition.
Emmvee operates four production units across two locations in Karnataka and has supplied 2.04 GW over the last three financial years, including Q1 FY26.
It serves a diversified customer base across independent power producers, commercial and industrial players and PSUs, with 94 per cent of Q1 FY26 revenue coming from its top 10 clients; customers include Ayana, Clean Max, Hero Rooftop, Prozeal, KPI Green and Aditya Birla Renewables Solar. The 5.36-GW orderbook provides 12-18 months of visibility.
Exports have fallen sharply, from 23 per cent of revenue in FY23 to under 1 per cent in FY25, making Emmvee almost entirely dependent on the domestic market and local pricing cycles.
Capacity utilisation has improved meaningfully, with module utilisation rising from 22 per cent in FY23 to 54 per cent in FY25, supported by stronger demand for TOPCon products.
While operationally strong, these metrics need to be viewed against a sector entering an oversupplied phase.
Financials
Emmvee’s numbers (see table) show a sharp upward shift over FY24-25, driven by a technology-mix change and improved utilisation. Revenue jumped from ₹951.9 crore in FY24 to ₹2,335.6 crore in FY25, with EBITDA rising six-fold to ₹721.9 crore. EBITDA margin expanded from 12.7 per cent to 30.9 per cent over the same period, helped by TOPCon-led realisations, favourable input costs and operating leverage. Q1 FY26 continued this momentum, with ₹1,027.8 crore in revenue and an elevated 33.8 per cent EBITDA margin.
This pace and level, however, contrast sharply with Emmvee’s own historical trend. Its FY23 and FY24 margins were 9-13 per cent. Integrated peers Waaree Energies reported EBITDA margins of 14-21 per cent over FY23-25, while Premier Energies has operated in the 8-29 per cent range but only after new capacity became operational. In other words, Emmvee’s FY25 and Q1 FY26 margin band sits at the very top of the sector’s recent experience.
Profit after tax reflects the same step-up. From ₹29 crore in FY24 to ₹369 crore in FY25, with ₹187.6 crore earned in Q1 FY26 alone. These numbers are difficult to annualise because they are tied to a period of high TOPCon demand, improving yields and lower-cost inventory flowing through production.
Overall, we believe Emmvee’s FY25 and Q1 FY26 represent an outlier phase of profitability. While operational execution has improved meaningfully, investors must recognise that these margins and the earnings built on them sit well above industry norms and may not represent a steady-state baseline.
Valuation and risks
At the upper end of the price-band, Emmvee is valued at m-cap of ₹15,024 crore, implying 41x FY25 earnings and 29x trailing earnings that include an unusually-strong Q1 FY26. Assuming a long-term 20 per cent EBITDA margin, normalised PAT falls to roughly ₹120-130 crore versus the reported ₹369 crore. This is a two-thirds cut, highlighting how much of the valuation rests on peak-cycle profitability.
Relative to peers, Emmvee’s trailing 12-month multiples (29x P/E and 17x EV/EBITDA) are lower than Waaree’s (49x P/E, 23x EV/EBITDA) and Premier’s (48x P/E, 20x EV/EBITDA), but this gap could largely disappear once earnings normalises.
Customer concentration, sensitivity to global module ASPs (average selling prices) and execution risks around the ₹5,500-crore expansion could add to earnings volatility. If margins revert faster than expected, the stock may seem expensive relative to peers despite the IPO’s debt reduction.
Also, a sharp fall in TOPCon ASPs, expansion by domestic peers and the large pipeline of cell and module capacity additions could compress margins. While global module ASPs are expected to fall further in FY26 due to oversupply, Crisil notes that ALMM-II will keep domestic module prices structurally higher than global benchmarks — a policy cushion that may soften but not prevent margin normalisation as new capacity ramps up.
Published on November 8, 2025
