Leading financial firms Ambit Capital and Motilal Oswal Financial Services have maintained a bullish outlook on Saatvik Green Energy, projecting over 25% upside for the renewable energy player. This optimistic forecast comes despite the company reporting a weak financial performance for the first quarter of fiscal year 2027 (Q1 FY27).
Brokerages Remain Bullish on Renewable Energy Player
Ambit Capital has set a target price of Rs 510 for Saatvik Green Energy, while Motilal Oswal Financial Services has set its target at Rs 508. Both targets suggest a significant appreciation from the current market price, driven by the company’s robust order book and strategic expansion plans.
Q1 FY27 Performance Challenges
For the quarter ending June 2026, Saatvik Green Energy reported consolidated gross sales of Rs 511 crore, marking a 44% decline from Rs 915.73 crore in the corresponding period last year. Profit after tax (PAT) saw an even steeper drop, plummeting 95% year-on-year to just Rs 5.36 crore.
Management attributed this subdued performance to several factors, including geopolitical instabilities in the Middle East, persistent inflationary pressures, and uncertainty surrounding the implementation of the ALMM-II policy. These issues collectively led to lower sales volumes, as customers adopted a cautious 'wait-and-watch' approach.
“The weak performance was driven by lower sales volumes, as customers adopted a ‘wait-and-watch’ approach pending clarity on ALMM-II, with geopolitical and supply chain disruptions, commodity price volatility, elevated logistics costs and foreign exchange fluctuations further weighing on performance,” Motilal Oswal Financial Services noted in its report.
Underlying Strength and Future Growth Drivers
Despite the challenging quarter, analysts remain confident in Saatvik Green Energy's medium-term prospects. The company's order book expanded to 6.35 GW as of June 2026, up from 5.89 GW in March 2026, providing strong revenue visibility for upcoming quarters. A significant factor underpinning this optimism is the planned ramp-up of the company's in-house cell manufacturing capacity, expected to commence from the third quarter, which is anticipated to drive substantial improvements in EBITDA margins.
Furthermore, Saatvik Green Energy has made progress in reducing its debt burden, with its debt-to-equity ratio declining to 0.99 times in Q1 FY27 from 1.28 times in Q1 FY26. Motilal Oswal expects Q2 FY27 volumes to remain strong, though margin expansion might be limited due to ongoing geopolitical issues and recent increases in cell and polysilicon prices. The brokerage also highlighted the company's target to increase encapsulant capacity to 5GW, which should enhance supply chain control.
Long-Term Financial Projections
Ambit Capital's projections indicate robust long-term growth for Saatvik Green Energy. The brokerage estimates the company's top line to grow 29.7% year-on-year in FY27, 47% in FY28, and 10% in FY29. EBITDA is expected to rise significantly, reaching Rs 1,667.60 crore by FY29 from Rs 546.50 crore in FY26. Net profit estimates are Rs 318.40 crore in FY27, Rs 839.30 crore in FY28, and Rs 862.70 crore in FY29, compared to Rs 361.30 crore in FY26.
Both brokerages conclude that a strong order book, higher volumes, and the strategic ramp-up of in-house cell manufacturing capabilities are crucial factors that will help Saatvik Green Energy improve its profitability over the medium term, effectively navigating current near-term challenges in the renewable energy sector.