Swelect Energy Systems Ltd

Commissioning of 10 MW solar plant

• 10 MW solar plant commissioned by ESG Green Energy Private Limited on 24 August 2026.
• Location: Nedumpirai Village, Cheyyar Taluk, Tiruvannamalai District, Tamil Nadu.
• Interfaced at 33 kV to 110/33 kV pooling substation developed under Electricity Act 2003.
• Connected with 110/33-11 kV Sirungattur TANTRANSCO SS at 110 kV level.
• Energy to be supplied to group captive consumers via intra-state open access in Tamil Nadu.

Standalone performance

• Standalone total income: 13,085.86 lakh; YoY growth 71.2%.
• Standalone revenue from operations: 11,948.55 lakh; YoY growth 82.0%.
• Standalone EBITDA: 3,667.45 lakh; YoY growth 120.0%.
• Standalone PBT: 2,225.52 lakh; YoY growth 341.0%.
• Standalone PAT: 1,867.81 lakh; YoY growth 362.5%.

Consolidated performance

• Consolidated total income: 14,071.59 lakh; down 25.5% YoY.
• Consolidated revenue from operations: 13,077.21 lakh; down 26.2% YoY.
• Consolidated EBITDA: 3,836.37 lakh; down 28.1%.
• Consolidated PBT: 1,039.38 lakh; down 62.7%.
• Consolidated PAT: 765.33 lakh; down 63.8%.

Management commentary and strategic developments

• Disciplined execution; standalone profitability expected to be maintained this fiscal.
• Advanced discussions for two large EPC orders; could strengthen order book.
• Investments in 110 MW IPP projects; acquiring two solar parks totaling 140 MW.
• Launching solar kits for daytime off-grid energy harvesting.
• Tamil Nadu subsidy could provide further push to solar market.
• ALMM 2 uncertainty caused order deferrals May–July 2026.

Financial results approved

• Standalone and Consolidated unaudited results for quarter ended 30 June 2026 approved.
• Deloitte Haskins & Sells LLP issued limited review reports on Standalone and Consolidated results.
• Results to be published in English and Tamil; available on company and stock exchange websites.

Cost audit report

• Cost audit report for year ended 31.03.2026 noted by the Board.

Investment in Sunpower Plus Private Limited

• Approve investment up to Rs 5,51,79,000 for SWELECT Sunpower Plus to set up 5 MW plant.
• Post-investment holding becomes 86.10% in the target; from 100% to 86.10%.
• Target to become a subsidiary of SWELECT Energy Systems Limited.
• Investment may be cash and/or non-cash; consideration up to Rs 5,51,79,000.
• Set up 5 MW solar plant under Group Captive scheme in Karnataka.

Dexler Solar Park acquisition

• Dexler Solar Park Phase 1 Private Limited acquisition kept in abeyance.

Labour Codes impact

• Labour Codes impact increased gratuity liability; Rs 190.57 Lakhs for year ended 31 Mar 2026.
• Compensated absences increased by Rs 0.31 Lakhs; treated as one-time.

Auditor remarks and review

• Standalone and Consolidated unaudited results reviewed; unmodified auditor reports issued.
• Some subsidiaries' results not reviewed; not material to Group.

Meeting Details

• Date: 13 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended 30 June 2026.
• Discuss other business matters.

Other Notes

• Trading window closed from July 1, 2026 until 48 hours after results approval.

Target overview

• Target: Dexler Solar Park Phase 1 Private Limited, Karnataka-based renewable energy generation and distribution company.
• Incorporated 05 March 2018; paid-up capital Rs 1,00,000.
• FY2024-25 turnover Nil; PAT (34,860); Net worth (6,45,190).
• Acquisition: 100% equity shares; 10,000 shares at face value Rs 10.
• Consideration: cash; acquisition cost not exceeding Rs 1 lakh.
• Acquiring 100% of DSPP1; post-acquisition Swelect becomes related party.
• Industry: Renewable energy generation and distribution.
• Purpose: set up solar plant under group captive scheme; boost turnover and Karnataka presence.
• Regulatory approvals: Not applicable.
• Timeline: completion per SPA/definitive agreement; no fixed date.
• Related party status: Not a related party transaction; Swelect becomes related party post-completion.
• Background: Dexler Solar Park Phase 1 Private Limited is Karnataka subsidiary of Dexler Energy Private Limited.
• Line of business: renewable energy generation, distribution, trading; solar panels, batteries, energy products.

Investment details

• Investment committee approved up to US$500,000 in Class B Preferred Equity of Comstock BESS LLC by SWELECT Singapore.
• Wholly owned subsidiary SWELECT ENERGY SYSTEMS PTE. LTD. Singapore will execute the investment.
• Purpose: entry into the US grid-storage market.
• Approval date: 14 July 2026.

Dematerialisation status

• Dematerialisation requests received during the quarter were confirmed to the depositories.

Financial snapshot

• Standalone revenue ₹37,613.21L; Consolidated ₹65,712.33L; YoY: -12.80% / +5.70%.
• Consolidated EBITDA ₹18,749.19L; YoY +30.36%.
• PAT: Standalone ₹1,956.40L; Consolidated ₹5,758.31L.
• Basic EPS: Standalone ₹12.91; Consolidated ₹36.40.
• Final dividend ₹3.50 per share; total ₹530.56L; AGM date 31 Jul 2026.
• Equity share capital ₹1,515.88L; no change.

Strategy & growth momentum

• IPP portfolio exceeds 159 MW; target ~1 GW in two years.
• FortifyGrid JV with FortifyGrid LLC to expand battery storage in US and Singapore.
• SHPV capacity to 2 GW; commissioning by July 2026.
• Added 6.6 MW wind turbines; 5 MWh rooftop BESS order.
• Plan to launch residential and C&I BESS with hybrid inverters in FY27.
• Pursuing integrated energy platform across solar, wind, and storage.

Manufacturing & capacity

• SHPV Coimbatore facility: 1 GW capacity, expanding to 2 GW.
• SHPV expansion nearing completion; 2 GW capacity by July 2026.
• Salem MMS/BOS facility expanded to 1 GW installed capacity.

Dividends & capital structure

• Promoter holding 56.37%; public 43.63%.
• Gearing ratio 50% (2025: 36%).
• Total debt ₹79,374.52L; net debt ₹47,645.96; cash ₹31,728.56.

Governance & leadership

• Dr. Arulkumar Pudur Shanmugasundaram appointed CEO & MD on 4 Sep 2025.
• J. Chellappan appointed Whole-time Director & Vice-Chairman on 4 Sep 2025.
• Ms. Uma Prakash appointed Independent Director from 30 May 2025.
• Nine Board meetings held in FY2025-26.
• Statutory auditors: Deloitte Haskins & Sells LLP; Secretarial: KRA & Associates.

Related party transactions

• Approval of material RPT with USolar Assetco Four Private Limited: ₹22,990L.
• Approval of material RPT with SWELECT SolarKraft Private Limited: ₹38,736L.
• Approval of material RPT with Gridnex Solar Power Private Limited: ₹39,012L.
• Audit Committee approval; Board to seek shareholder approval.

Risks & outlook

• Pricing pressure from solar overcapacity and Tamil Nadu policy changes.
• Currency volatility and freight cost pressures; CBAM and RPO tailwinds.
• Storage market growth via BESS; execution and supply-chain risks remain.

CSR & ESG

• CSR expenditure ₹38.06L; focus areas education, healthcare, disability inclusion in Tamil Nadu.

Group structure & new ventures

• FortifyGrid India Private Limited formed 18 Mar 2026; 50:50 with FortifyGrid LLC (USA).
• FortifyGrid Singapore JV with SWELECT FortifyGrid Pte Limited; GalaxyWatt and AV SW Green Energies JVs.
• New FortifyGrid ties augment US and Singapore energy-storage pipeline.
• Group comprises 13 Indian subsidiaries and several foreign entities; SHPV capacity expansion aligns with growth plan.