Solar stock jumps 11% after securing 13 LoAs from HESCOM with a capex of ₹225 Cr

Synopsis: Shares of Ravindra Energy Ltd surged 11% after the company secured multiple LOAs from HESCOM to develop 62 MW of solar projects in Karnataka under the BOO model with an estimated investment of Rs 225 crore.

The shares of this company, engaged in the business of selling Solar Pumps, setting up Solar Generation Power Plant (Ground Mount & Rooftop) & generation and sale of Power are in focus after the company secured key LOAs from HESCOM. In this article, we will delve further into the details.

With a market capitalisation of Rs 2,577 crore, the shares of Ravindra Energy Ltd reached a day’s high of Rs 152.90 per share, up 11 percent from its day’s low price of Rs 137.95 per share. Over the past five years, the stock has delivered a robust return of 292 percent, outperforming NIFTY 50’s return of 80 percent.

About the order

Ravindra Energy Limited, through a stock exchange filing, announced that it has secured 13 Letters of Award (LOAs) from Hubli Electricity Supply Company Limited (HESCOM) to develop and operate 62 MW of solar power projects in Karnataka under the Build-Own-Operate (BOO) model. The company will be responsible for everything, ownership, installation, and management, across 13 separate locations.

According to the information, Ravindra Energy will enter into a 25-year agreement with HESCOM to supply electricity at around Rs 2.95 per unit. They plan to have all these projects commissioned within a year of signing. The total investment is estimated at about Rs 225 crore.

This is more than just a typical contract for Ravindra Energy. With HESCOM committed to purchasing all the electricity for the next 25 years, the company secures a reliable and predictable income. 

Additionally, since Ravindra Energy will own the solar assets, its long-term prospects are even more robust. Once these projects are operational, ongoing expenses should remain low, which means the company can expect stable cash flow and healthy growth moving forward.

Financials

The revenue from operations for Ravindra Energy stands at Rs 120 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 16 crores, up by a staggering 650 per cent YoY. However, on a QoQ basis, it reported a decline of 26 percent from Rs 163 crore. 

Coming down to its profitability, the company’s net profit stood at Rs 31 crore in Q2 FY26, up from Rs 1 crore in Q2 FY25, which is a staggering growth of 3,000 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 23 crore, which is a growth of 35 percent.

As of the latest filings available, the company is situated at 17 locations in Maharastra where it presently has a capacity of 117 Mwp, and is also situated at 14 strategic locations in Karnataka, having a capacity of 34 Mwp. As of now, the company has 76 MWp of projects in Maharashtra at 17 locations, which are under construction. 

Ravindra Energy delivers clean, affordable solar power through simple, local solutions that require no large investment. They have received accreditation from the Ministry of New and Renewable Energy (MNRE) and have been recognised for their efforts in installing solar water pumps, supporting India’s drive for increased renewable energy.

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