Emmvee Photovoltaic Power Limited - IPO Update: Issue Details, Company Overview & Sushil Finance View

IPO Details

Company Overview

Emmvee Photovoltaic Power Limited is primarily a solar module manufacturer and are the second largest pure-play integrated solar photovoltaic (“PV”) module and solar cell manufacturing company and one of the largest solar PV module manufacturers in India, each in terms of production capacity as of March 31, 2025. As of June 30, 2025, they had a solar PV module production capacity of 7.80 GW and a solar cell production capacity of 2.94 GW, with a track record of over 18 years.

In addition, they are one of the first companies in India to adopt higher efficiency tunnel oxide passivated contact (“TOPCon”) technology to manufacture solar cells, and are among a limited number of solar cell manufacturers in India as of March 2025 to leverage this technology. It operates four manufacturing units across two locations in Karnataka, spread across a total land area of 22.44 acres. They have a zero liquid discharge system for their cell manufacturing operations, achieving a 96.80% water recovery rate, as of June 30, 2025.

The company’s customers include independent power producers (“IPPs”), entities operating in the commercial and industrial (“C&I”) sector and engineering, procurement and construction (“EPC”) service providers in both public and private sectors. Their key customers include Ayana Renewable Power, Clean Max Enviro Energy Solutions, Hero Rooftop Energy Pvt. Ltd, Prozeal Green Energy, KPI Green Energy, Aditya Birla Renewables Solar, among others. The company has been included under List I of the Approved List of Models and Manufacturers of Solar Photovoltaic Modules (“ALMM”) issued by the Government of India.

Key Highlights

Objects of the Issue

Offer for sale of equity shares aggregating up to ₹756.14 Cr. The company will not receive any proceeds from the Offer for Sale.

Our View

Incorporated in 2007, Emmvee Photovoltaic Power Limited an integrated solar PV module and cell manufacturer. As of June 30, 2025, the company has a solar PV module capacity of 7.80 GW and a solar cell capacity of 2.94 GW, making it one of the largest solar manufacturers in India. It has a 5.1% market share in terms of ALMM-enlisted module manufacturing capacity as of May 2025. The company has a strong order book of 5.36 GW of solar PV modules as of June 30, 2025. The company’s average order size per customer has also increased from 0.84 MW in FY 2023 to 7.63 MW in FY 2025 and to 9.81 MW in the 3 months ended June 30, 2025.

However, risks to consider are Intense Competition, Dependence on government policies, High Debt levels, Foreign currency and raw material risks, revenue concentration from top 10 customers (~94% in Q1FY26), limited number of products, operational and sector-specific risks, thereby impacting overall operational efficiency.

On the financial front, the Revenue grew at CAGR of ~94% from FY23-FY25 and PAT grew immensely at CAGR 541%. At the same time EBITDA grew at CAGR 258%. The company operated on an EBITDA margin of 33.8% and PAT margin of 18.26% at Q1FY26 respectively and Net Debt to Equity stood at 2.48x.

The issue is priced at a P/BV of 17.92 based on its NAV of Rs. 12.11 as of June 30, 2025 and asking price is at a P/E of ~20x if we attribute FY26 annualized earnings. The Industry average P/E is ~47x. The issue is attractively priced. Its Net debt to Equity is markedly higher than the listed peers.

Emmvee Photovoltaic is all set to expand its capacity, its initiative to achieve domestic backward integration, support by the government policies for the sector, and favorable industry headwind positions itself as a high growth company. Looking at all the factors, risks, opportunities and valuation, investors may invest with Medium to Long term horizon to the issue.