SWELECT Energy Systems Limited was originally incorporated as 'Numeric Power System Limited' on September 12, 1994, and subsequently changed its name to 'SWELECT Energy Systems Limited' on June 29, 2012. The company is based in Chennai, India, and has emerged as a significant player in the renewable energy sector with a focus on solar power solutions and electrical equipment manufacturing.
The company operates as a comprehensive renewable energy solutions provider, manufacturing and trading solar modules, mounting structures, transformers, and inverters in India, Europe, and internationally through three main segments: Solar and Solar Related Activities, Foundry Business, and Others. SWELECT offers mono and multi-crystalline solar photovoltaic modules, building integrated photovoltaic modules, solar inverters, solar water pumps, and solar panels.
Beyond its core solar business, SWELECT also engages in iron, steel, and investment casting activities. The company provides stabilizers, energy conservation and audits, design/retrofit sustainable buildings, and LED lighting systems, along with site feasibility analysis, engineering, procurement, and construction contracts, and operation and maintenance services. Additionally, it engages in solar and wind power generation and provision of contract manufacturing services.
The company has been expanding its manufacturing capabilities with a facility that produces high-power modules using mono PERC cells for both monofacial and bi-facial applications, with the capability to manufacture TOPCon and HJT modules as well. It also handles rooftop installations and EPC contracts for solar projects.
For the fiscal year 2024, SWELECT demonstrated strong financial performance with consolidated total income of INR 279.33 crore for the year ended March 31, 2024, compared to INR 269.78 crore in FY 2023. Net profit soared to INR 63 crore, compared to INR 6.42 crore in FY 2023. This represented an impressive 881% year-over-year growth in net profit.
However, the company's quarterly performance showed some volatility. In Q1 FY2024-25, revenue jumped 28.6% year-over-year to ₹125.71 crore. Despite the revenue growth, net profit fell 42.44% year-over-year to ₹6.28 crore in Q1 FY2024-25. The net profit margin fell 55.24% year-over-year to 5% in Q1 FY2024-25.
More recent quarterly results showed challenges, with a net loss of ₹10.77 crore reported in the quarter ended December 2024 as against a net profit of ₹7.93 crore during the previous quarter ended December 2023. However, sales rose 43.81% to ₹91.38 crore in the quarter ended December 2024 as against ₹63.54 crore during the previous quarter ended December 2023.
The market capitalization of SWELECT Energy Systems Ltd is ₹857.08 crore as of May 8, 2025. As per Value Research classification, it is a Small Cap company. The P/E (price-to-earnings) ratio is 13.82. The P/B ratio is 1.10 times as of March 19, 2025, representing a 56% discount to its peers' median range of 2.51 times. The 52-week high of the stock is ₹1,405 and the 52-week low is ₹461.10. Promoter holding has remained stable at 56.37% as of December 2024.
- FY2024 Performance: Total Income of INR 279.33 crore, Net Profit of INR 63 crore (881% YoY growth).
- Q1 FY2024-25 Performance: Revenue of ₹125.71 crore (28.6% YoY growth), Net Profit of ₹6.28 crore (42.44% YoY decline).
- Q3 FY2024-25 Performance: Net Loss of ₹10.77 crore, Revenue of ₹91.38 crore (43.81% YoY growth).
- EPS for Q1 FY2024-25: 4.35
- Market Capitalization: ₹857.08 crore (as of May 8, 2025).
- Promoter Holding: 56.37% (as of December 2024).
- P/E Ratio: 13.82
- P/B Ratio: 1.10 (as of March 19, 2025)
SWELECT has been actively pursuing expansion strategies. The company is forming a new arm that will engage in setting up solar power plants, with the Board of Directors recently approving the incorporation of a subsidiary named 'ESG Green Energy Pvt Ltd'. Once proposals from industrial consumers materialize, the electricity generated by ESG Green will be sold to industrial consumers around Tamil Nadu based on their requirements.
The Board approved raising funds through the issuance of up to 1,385 Secured, Unlisted, Rated, Redeemable, Non-Cumulative, Taxable, Non-Convertible Debentures (NCDs) having a face value of Rs 10,00,000 each aggregating to Rs 138.5 crore in one or more tranches on a Private Placement basis.
SWELECT Energy Systems has received reaffirmation in credit ratings from CRISIL at CRISIL A-; Stable / CRISIL A2+ for bank facilities of Rs 345 crore and non-convertible debentures of Rs 138.5 crore. However, the company faces some financial challenges, with low interest coverage ratio and low return on equity of 1.78% over the last 3 years. On a positive note, debtor days have improved from 72.0 to 38.1 days.
SWELECT Energy Systems Ltd belongs to the Industrials sector & Electrical Components & Equipments sub-sector. The company continues to focus on expanding its renewable energy portfolio and strengthening its position in the growing solar energy market in India.
