Motilal Oswal Financial Services has reiterated its 'Buy' recommendation for Saatvik Green Energy, a prominent renewable energy player, even as the company's stock has surged over 35% from its 52-week low recorded on March 9, 2026. The brokerage's research report, dated September 18, 2026, highlighted the company's reasonable valuations, a rapidly growing order book, clear revenue visibility, and an improving margin profile driven by increased cell manufacturing.
Strong Order Book Fuels Confidence
A primary driver for Motilal Oswal's optimistic outlook is the significant expansion of Saatvik Green Energy's order book. As of August 18, 2026, the company's orders stood at approximately Rs 8,200 crore. An additional Rs 1,530 crore in orders were secured within the subsequent month, elevating the total order book to around Rs 9,700 crore. These deliveries are scheduled across fiscal years 2027 and 2028, providing nearly 100% visibility for FY27 estimated revenue and about 60% for FY28.
Expanding into Solar Cell Manufacturing
A crucial component of Saatvik Green Energy's growth strategy involves its venture into solar cell manufacturing. The initial phase (Phase I) of a 2.4 GW cell manufacturing capacity is advancing as planned, with production anticipated to commence in the third quarter of FY27 and scale up through the fourth quarter. The company has further plans to add another 3.6 GW under Phase II by the end of FY28, which would bring its total cell manufacturing capacity to approximately 6 GW.
Motilal Oswal predicts that this heightened backward integration and the increasing contribution from cell production will significantly enhance profitability. The brokerage's assessment forecasts Saatvik's EBITDA margin to rise to about 15% in FY28 from 8% in FY27. Furthermore, revenue and EBITDA are projected to achieve a compound annual growth rate (CAGR) of 36% and 50%, respectively, between FY26 and FY28.
Industry Tailwinds and Financial Projections
The broader renewable energy sector in India also provides a supportive backdrop for Saatvik Green Energy. India's installed solar capacity reached 168 GW by August 2026, with an impressive 18 GW added between April and August. Motilal Oswal anticipates that the country will surpass the Central Electricity Authority's FY27-end target of 176 GW. The domestic cell manufacturing capacity, currently around 35 GW, remains significantly below module capacity (nearly 215 GW), indicating substantial room for growth in backward integration.
Financially, Motilal Oswal expects Saatvik's revenue to climb from Rs 4,548 crore in FY26 to Rs 8,351 crore in FY28. Adjusted profit after tax (PAT) is simultaneously projected to increase from Rs 361 crore to Rs 662 crore over the same period.
Global brokerage Jefferies also noted India's emergence as the world’s second-largest solar PV manufacturer, with 35 GW of solar cell capacity operational and another 100 GW under construction. Policy measures such as ALMM (Approved List of Models and Manufacturers), domestic content requirements, and PLI (Production-Linked Incentives) are accelerating backward integration across the solar value chain, with Jefferies expecting 90% localization by 2030.