Emmvee Photovoltaic IPO

The company claims to be listed under List I of the Approved List of Models and Manufacturers of Solar Photovoltaic Modules (ALMM) issued by the Ministry of New and Renewable Energy (MNRE), Government of India. This certification allows Emmvee to supply its solar PV modules for government and government-supported renewable energy projects, as well as for other initiatives that require ALMM-approved manufacturers.

The company states that its solar PV modules have earned multiple global quality certifications that reflect their reliability and performance. In 2024, the company further claimed that it became the only Indian manufacturer (among four companies globally) to pass all seven tests for a single product type under the Kiwa PVEL product qualification program.

The company states that its Mono PERC modules were rated for leading durability in thermal cycle and damp heat tests and certified in potential-induced degradation resistant (PID) assessments.

The company’s solar modules hold several important national and international accreditations, including Bureau of Indian Standards (BIS) certifications (R-62002976 and R-62001074), UL 61730:2022, and multiple International Electrotechnical Commission (IEC) standards such as 61701:2020, 62759-1:2022, and 62716:2013. They have also cleared rigorous reliability and degradation tests, including the IEC TS 62804-1 and IEC TS 63342:2022, confirming their performance under varied environmental conditions.

To advance its technological capabilities, Emmvee states that it entered into a research and development partnership with the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) in 2022. This collaboration focuses on developing expertise in TOPCon technology for solar cell production and integrating advanced manufacturing methods to enhance efficiency and product quality.

The company serves a wide range of clients, including Ayana Renewable Power, Clean Max Enviro Energy Solutions, Hero Rooftop Energy, Aditya Birla Renewables Solar, KPI Green Energy, and Blupine Energy, among others. Across the three months ended June 30, 2025, and FY23–FY25, Emmvee claimed that it supplied products to a total of 543 unique customers.

As of March 31, 2025, the company stated that it was the second-largest pure-play integrated solar PV module and solar cell manufacturer in India based on production capacity. As of June 30, 2025, it had a solar module manufacturing capacity of 7.80 GW and a solar cell capacity of 2.94 GW.

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 618.13 crore in FY23 to Rs 951.93 crore in FY24 and Rs 2,335.61 crore in FY25. PAT increased from Rs 8.97 crore in FY23 to Rs 28.90 crore in FY24 and Rs 369.01 crore in FY25.

The company’s top 5 customers accounted for Rs 885.10 crore (86.11 percent) of the company’s total revenue in the three months ended June 30, 2025, and Rs 1,754.10 crore (75.10 percent) in FY25, Rs 645.50 crore (67.81 percent) in FY24, and Rs 387.11 crore (62.63 percent) in FY23. The top 1 customer alone accounted for Rs 375.87 crore (36.57 percent) of the company’s total revenue in the three months ended June 30, 2025 and Rs 838.53 crore (35.90 percent) in FY25, Rs 204.06 crore (21.44 percent) in FY24 and Rs 129.03 crore (20.87 percent) in FY23. Under the company’s supply agreements, customers have the right to terminate contracts with notice if the company defaults on its obligations. Loss of any of these top customers could adversely affect the company’s operations and finances.

The company derives a major portion of its revenue from the sale of TopCon modules and Mono PERC modules. TopCon modules accounted for Rs 812.95 crore (79.09 percent) of the company’s total revenue in the three months ended June 30, 2025, and Rs 1,610.55 crore (68.96 percent) in FY25. There were no sales from this product in FY24 and FY23; however, it should be noted that, currently, they account for more than half of the company’s total revenue. This rise in sales of TopCon modules was mainly due to technological advancements in the solar industry. Meanwhile, Mono PERC modules accounted for Rs 208.98 crore (20.33 percent) of the company’s total revenue in the three months ended June 30, 2025, and Rs 702.26 crore (30.07 percent) in FY25, Rs 816.76 crore (85.80 percent) in FY24, and Rs 339.78 crore (54.96 percent) in FY23. Any decline in the sales of these products could negatively affect the company’s financial health.

The company’s top 5 suppliers accounted for Rs 368.21 crore (43.29 percent) of its total purchases in the three months ended June 30, 2025, and Rs 591.45 crore (32.11 percent) in FY25, Rs 348.61 crore (37.95 percent) in FY24, and Rs 220.11 crore (42.23 percent) in FY23. These suppliers consist of Indian suppliers and foreign providers. Any disruption in supplies from one or more of these suppliers could hurt the company’s business and finances.

The company relies heavily on imported raw materials for manufacturing solar cells and photovoltaic (PV) modules, primarily sourced from China, as well as from Vietnam, Thailand, and Malaysia. The cost of imported materials from China accounted for Rs 465.26 crore (54.70 percent) of the company’s total purchases in the three months ended June 30, 2025 and Rs 1,026.35 crore (55.73 percent) in FY25, Rs 581.07 crore (63.25 percent) in FY24, and Rs 273.73 crore (52.51 percent) in FY23. Any restrictions or trade limitations imposed by the Government of India, the Government of China, or other relevant authorities or international organisations could disrupt the supply of key materials. Such restrictions may adversely impact the company’s business operations, financial performance, and prospects.

All manufacturing units are based in Karnataka, India. This geographical concentration increases the company’s exposure to local risks, such as regional policy changes, natural disasters, or other location-specific disruptions that could adversely affect the company’s production and operations.

The company has pledged 51 percent of its shareholding in its key subsidiary, EEPL, as security against loans obtained by the subsidiary. In the case of default and subsequent invocation of the pledge, the company could lose control over EEPL, potentially affecting its business performance and financial stability.

The rapid evolution of solar technologies poses a risk to the company’s current manufacturing methods. The discontinuation of multicrystalline technology led to the shutdown of Unit I in May 2025, resulting in an asset impairment of Rs 20.01 crore. Adopting new technologies may require substantial investment, which could affect profitability and financial health.

Over the past three financial years, the company’s solar module and cell production facilities have operated below optimal capacity. Despite expanding its installed capacity to meet rising demand, the overall utilisation rate for solar module manufacturing remained below 50 percent. This underutilisation has impacted operational efficiency, profitability, and return on capital.

The company, its subsidiaries, promoters, directors, and key managerial personnel are involved in various legal and regulatory cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

Operating in multiple jurisdictions subjects the company to strict anti-corruption and anti-money laundering (AML) regulations. Non-compliance could lead to heavy fines, penalties, and legal actions, besides reputational damage and loss of business opportunities. Failure to meet these compliance requirements may also affect financial stability and stakeholder confidence.

US sanctions laws restrict dealings with certain countries and entities. Although the company does not directly operate in sanctioned regions, it serves global customers who may have indirect dealings with such entities. If any customer is found violating international sanctions, the company could face penalties and reputational harm, potentially impacting its financial condition and business relationships.

The company reported negative cash flows from operating activities of Rs 247.49 crore as of the three months ending June 30, 2025, which was due to an increase in working capital assets and a decrease in working capital liabilities. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.

The company recorded trade receivables of Rs 406.79 crore as of June 30, 2025. This was mainly due to delayed payments from customers and government entities. Failure to collect these receivables on time or at all can hurt its business and financial condition.

As of September 26, 2025, the company has total indebtedness of Rs 2,496.38 crore. Failure to service or repay these loans can harm the company’s operations and financial position.