In its March 2026 review, Jefferies highlighted a robust earnings beat and strong growth visibility for the company. Emmvee reported EBITDA and PAT that were 13% and 17% ahead of the brokerage’s estimates, respectively. The firm also pointed to a healthy order book and improving revenue visibility through FY27 and the first half of FY28.
For Q4FY26, revenue rose 62% year-on-year (YoY) to Rs 1,740 crore, coming in 6% above expectations. EBITDA increased 58% YoY to Rs 570 crore, while profit after tax surged 89% YoY to Rs 390 crore. However, EBITDA margins contracted by 310 basis points quarter-on-quarter due to a higher share of non-DCR module sales.
Operationally, cell production grew 62% YoY to 428 MW. Realizations stood at 20 US cents per watt, down 3% YoY, while EBITDA per watt declined 6% YoY to 6.6 US cents.
The company’s order book remained largely stable on a sequential basis, rising 1% quarter-on-quarter to 9.4 GW. Deliveries scheduled over the next 12–18 months stand at 6.3 GW, offering strong revenue and earnings visibility.
On the capacity front, Emmvee commissioned a 2.5 GW module line in December 2025, taking total module manufacturing capacity to 10.3 GW. Initial startup costs from the new facility weighed on margins during the quarter.
Working capital requirements increased, with the cycle extending to 111 days from 100 days a year earlier, as the company built inventory to hedge input costs. This led to a sharp decline in operating cash flow to Rs 2 billion. Management expects working capital pressures to ease in FY27 as input prices stabilize.Despite the expansion phase, Emmvee remains net debt-free and continues to maintain strong return ratios. The company plans to leverage its balance sheet to execute a 6 GW integrated TopCon cell and module facility. Jefferies expects the net debt-to-equity ratio to remain around 0.5x over FY27–FY28.
The brokerage projects a 26% EBITDA CAGR over FY26–FY28, driven by volume growth from the existing order book, even as it factors in some compression in EBITDA per watt. It also noted that the stock trades at an attractive ~35% discount to peers, with the renewable energy sector likely to benefit from rising global demand for energy security.
Jefferies reiterated its “Buy” rating on the stock, valuing it at 10x FY28 estimated EV/EBITDA, with a revised target price of Rs 350.
Stock Performance: Shares of Emmvee Photovoltaic Power have surged 55% over the past three months. The stock is currently valued at a market capitalisation of Rs 18,851 crore and is trading near its 52-week high of Rs 299.50.