With India moving toward its 500 GW clean energy target and backing the sector in the 2026 Union Budget, an SME from Greater Noida is expanding capacity to 3.6 GW and investing in TOPCon technology to scale operations.
As India draws global attention in clean energy, a lesser-known company is expanding its role in the solar supply chain. Alpex Solar Ltd supplies modules used in projects linked to NTPC, Tata Power and Hindustan Aeronautics Ltd.
Beyond The 1,100% Surge
Alpex Solar has shifted to G12R TOPCon technology — tunnel oxide passivated contact, a high-efficiency solar cell design that reduces energy loss. The company invested in the upgrade amid rapid technology shifts in the sector.
The government allocated more than Rs 30,000 crore to the solar sector in the 2026 Union Budget. The allocation signals policy support for clean energy.
Investors assessing the sector must conduct due diligence. The 2026 Union Budget provides regulatory visibility for the industry.
Alpex Solar reported a 1,100% rise in net profit over the last three years. The company aims to move from a component supplier to a vertically integrated manufacturer with a 3.6 GW capacity target.
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The Manufacturing Playbook
Alpex operates a 2.2 GW solar cell plant built largely through internal cash flow. The company funded the project without significant external borrowing.
Under Managing Director Ashwani Sehgal, the company manufactures aluminium frames and cells in-house. The approach reduces dependence on external suppliers.
As the energy mix shifts from fossil fuels, Alpex Solar has expanded operations within the SME segment.
Institutional Transition
Investments in SMEs carry risks. These include fixed lot trading, limited liquidity, lower equity float and lighter reporting standards.
Alpex has adopted the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In late 2025, the board approved changes to align policies with these regulations. The move aligns the company with main board compliance standards.
The Efficiency Anomaly
In the first half of FY26, Alpex Solar reported consolidated revenue of Rs 903 crore, up 240% from Rs 265 crore in H1FY25.
The company reported Return on Capital Employed of 51% and Return on Equity of 48%—measures of profitability against invested capital and shareholder funds. This implies about 52 paise profit for every rupee of capital deployed.
The stock trades at a Price-to-Earnings ratio of about 14.3 times earnings. Peers such as Waaree Energies and Premier Energies trade above 35 times earnings. Alpex reported 78% compounded Ebitda growth over the last five years. The industry median stands at 27%.
The 3.6 GW Roadmap
Alpex plans to expand capacity from 1.2 GW to 3.6 GW by FY2027. The company maintains a Debt-to-Equity ratio of 0.22.
The company is setting up an aluminium frame unit with 12,000 metric tonne capacity to strengthen supply control.
The stock has risen from about Rs 360 at listing in February 2024 to Rs 816 as of Feb. 17, 2026. That marks a gain of over 125% in two years. In the last six months, the stock corrected 44% from its peak of Rs 1,450 in August 2025.
Net margins declined from about 12.5% to about 8.4%. Promoter pledging increased from 0% to about 6.5%.
The Order Book: Rs 1,900 Crore of Visibility
As of H1FY26, Alpex reported order inflows of over Rs 1,900 crore. This includes a Rs 211 crore order from the Solar Energy Corp. of India and Rs 245 crore from Central Mine Planning and Design Institute Ltd.
The company also secured a Rs 65 crore order from Maharashtra State Electricity Distribution Co. Ltd. under the PM-KUSUM scheme for solar water pumps.
Valuation Arbitrage
Alpex reports higher ROCE than larger peers while trading at a lower earnings multiple. The company reported Ebitda margin of 16% in Q3FY26 ended December 2025.
The Promoter Pledge Risk: Navigating the Red Flags Behind the Triple-Digit Growth
Promoters pledged about 6.5% of holdings in the December 2025 quarter after previously reporting zero pledge.
Cash Flow from Operations stood at negative Rs 8 crore in FY24 and rose to Rs 69 crore in FY25. Net cash flow declined 87% from Rs 23 crore in FY24 to Rs 3 crore in FY25. Net cash flow of Rs 3 crore limits liquidity buffer. The company has moved to raise funds through non-convertible debentures — unsecured debt instruments that do not convert into equity.
The Solar Arbitrage: Can Alpex Outrun the SME Tax
Alpex Solar has integrated cell and aluminium frame manufacturing to support margins. The company plans to expand to 3.6 GW capacity.
Promoter pledging and low cash reserves present risks. The company's valuation remains below larger peers despite operational growth.
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