IPO Launch Details
Emmvee Photovoltaic Power aims to secure approximately ₹2,900 crore through its initial public offering (IPO). This fundraising initiative includes a fresh
issue valued at ₹2,144 crore, designed primarily to settle outstanding debts. The remaining ₹756 crore will be generated via an offer for sale. Following the IPO, the promoters' stake in the company will be diluted to 80.7% from the current 100%. The company initiated the commercial production of solar PV modules in 2007, later adding solar cell production in 2024. As of June 30, 2025, the company had expanded its solar PV module production capacity to 7.8 gigawatts (GW) from 0.5 GW in April 2022. It also established a solar cell production capacity of 2.9 GW by the same date. The manufacturing operations are spread across four units located in Karnataka.
Financial Performance Analysis
Emmvee Photovoltaic Power has shown remarkable financial advancement, especially over the last couple of years. The company’s revenue more than tripled, soaring from ₹618.1 crore in FY23 to ₹2,335.6 crore in FY25. Simultaneously, the EBITDA margin expanded substantially, reaching 31%, surpassing the peer range of 14-44%, and up from 9.1% during the same period. This enhancement can be attributed to the company's backward integration efforts, notably with the beginning of solar cell manufacturing. Profit after tax (PAT) saw a substantial upswing as well, jumping from ₹9 crore in FY23 to ₹369 crore in FY25. Despite increased capital investments, the debt-equity ratio decreased from a peak of 8.5 in FY24 to 3.6 in FY25, indicating improved financial stability. Furthermore, the Return on Equity (RoE) surged to 105% in FY25, a significant increase from 6.4% in FY23, underscoring the company’s improved profitability.
Production Capacity and Utilization
The company's expansion in solar PV module production has been significant, reaching 7.8 GW by June 30, 2025, from 0.5 GW in April 2022. In addition, solar cell production capacity reached 2.9 GW by the same date. Despite the growth, the manufacturing facilities experienced relatively low capacity utilization rates. Module production operated at 53.9% and solar cell manufacturing at 42.8% during the year. In FY25, solar PV module production increased to 1,482 MW, compared to 218 MW in FY23. Solar cell production also grew, reaching 533 MW in the same fiscal year. The company has plans to further increase its production capabilities, including an additional 2.5 GW of module production capacity in FY26, alongside an extra 6 GW of integrated solar cell and module production capacity, slated to be operational by the first half of Fiscal 2028.
Risks and Challenges
Emmvee Photovoltaic faces considerable risks that investors should carefully consider. A significant concern is the high customer concentration, with the top 10 customers contributing 94% of the company’s revenue during the June 2025 quarter. This dependence makes the company vulnerable to any changes or disruptions from these major clients. Additionally, the company relies heavily on imported raw materials, with 94.7% of its supplies coming from external sources, particularly from China. This reliance can expose Emmvee to supply chain disruptions, fluctuating costs, and geopolitical risks. The company's valuation, at a trailing Price-to-Earnings (P/E) multiple of 40.7 based on post-IPO equity, is lower than some peers like Waaree Energies (P/E of 50.5), Premier Energies (51), and Vikram Solar (71), but higher than Saatvik Green Energy (27.5).
