As Solarworld Energy Solutions prepares to enter the capital markets with its IPO in September 2025, investors are keen to evaluate how the company stands against its listed peers in the renewable energy space. While IPO reviews often highlight issue details, subscription updates, and grey market trends, the real question for long-term investors is: how does Solarworld compare to its competitors on key financial and operational metrics?
In Solarworld Energy IPO peer comparison analysis. We will examine the company’s valuation ratios and financial performance in the context of established players such as Sterling & Wilson Renewable Energy, KPI Green Energy, Waaree Renewable Technologies, Gensol Engineering, and Oriana Power. By the end, readers will have a clear perspective on Solarworld’s relative position in the sector.
Solarworld Energy IPO Snapshot
| Particulars | Details |
|---|---|
| IPO Dates | 23 – 25 September 2025 |
| Price Band | INR 333 – 351 per share |
| Issue Size | INR 465 – 490 crore (Fresh issue INR 440 crore + OFS INR 50 crore) |
| Lot Size | 42 shares (~INR 14,742 at upper band) |
| Listing | NSE, BSE |
| Use of Proceeds | INR 420 crore investment in subsidiary KSPL for 1.2 GW TopCon cell facility at Pandhurana, Madhya Pradesh; General corporate purposes |
Solarworld Energy IPO: Financials
| FY | Revenue | Net Profit | Net Margin | ROCE | D/E |
|---|---|---|---|---|---|
| FY22 | 27.8 | 2.2 | 7.9% | 17.4% | 7.42 |
| FY23 | 232.5 | 14.8 | 6.4% | 38.8% | 2.95 |
| FY24 | 501.0 | 51.7 | 10.3% | 86.6% | 0.83 |
| FY25 | 544.8 | 77.1 | 14.1% | 54.5% | 0.37 |
Solarworld has demonstrated consistent growth in revenue and profitability, while reducing leverage from 7.42x (FY22) to just 0.37x (FY25).
Solarworld Energy IPO Peer Comparison Analysis – Valuation Ratios
| Metrics | Solarworld | Sterling & Wilson | KPI Green | Waaree Renewable | Gensol Engg. | Oriana Power |
|---|---|---|---|---|---|---|
| P/E Ratio | 39.5 | 56.8 | 26.5 | 38.0 | 1.6 | 33.2 |
| P/B Ratio | 8.4 | 6.2 | 3.9 | 24.2 | 0.3 | 10.3 |
| P/S Ratio | 5.6 | 0.9 | 4.8 | 5.6 | 0.1 | 5.3 |
| Debt/Equity | 0.37 | 0.93 | 0.61 | 0.06 | 2.33 | 0.53 |
| Current Ratio | 1.94 | 1.28 | 2.76 | 1.25 | 1.27 | 1.47 |
| ROE (%) | 40.3 | 8.2 | 19.7 | 65.4 | 22.4 | 48.4 |
| ROCE (%) | 54.5 | 17.0 | 17.5 | 82.1 | 14.3 | 42.3 |
Analysis of Valuation Ratios
- Earnings Multiples (P/E): Solarworld’s post-issue P/E (39.5x) is aligned with Waaree (38x) but higher than KPI Green (26.5x). This suggests the market is pricing Solarworld closer to high-growth peers rather than legacy players like Sterling.
- Book & Sales Multiples: With a P/B of 8.4 and P/S of 5.6, Solarworld trades at a premium to KPI Green but at a discount to Waaree’s steep P/B of 24.2. This indicates Solarworld is positioned as a growth company but not at “bubble-like” valuations.
- Leverage: Solarworld’s D/E of 0.37 is healthier than Sterling (0.93) and Gensol (2.33), though higher than Waaree’s near-zero leverage (0.06).
- Liquidity (Current Ratio): At 1.94, Solarworld demonstrates stronger short-term solvency than Waaree and Sterling.
- Profitability (ROE/ROCE): Solarworld’s ROE (40.3%) and ROCE (54.5%) are significantly superior to Sterling and KPI.
On a pure valuation basis, Solarworld appears fairly priced relative to peers. It is not the cheapest (like KPI) nor the most expensive (like Waaree), but its improving profitability and moderate leverage justify its positioning.
Solarworld vs Waaree vs KPI Green vs Oriana – Operational & Financial KPIs (FY 2025)
| Metrics (FY25) | Solarworld | Sterling & Wilson | KPI Green | Waaree Renewable | Oriana Power |
|---|---|---|---|---|---|
| Revenue | 544.8 | 6,301.9 | 1,735.5 | 1,597.7 | 987.2 |
| EBITDA Margin (%) | 19.6 | 3.9 | 32.3 | 19.2 | 23.8 |
| PAT Margin (%) | 14.1 | 1.4 | 18.7 | 14.3 | 16.1 |
| Order Book | 1,700.6 | 9,096.0 | NA | NA | NA |
| Contracted Capacity | 376 MW + BESS | 4,400 MW | NA | NA | 550 MW + BESS |
| Commissioned Capacity | 24 MW | NA | NA | 1,524 MW | 200+ MW |
Analytical Summary:
- Scale vs Efficiency: Sterling & Wilson dominates in revenue scale, yet operates at wafer-thin margins (EBITDA 3.9%, PAT 1.4%). Solarworld, though smaller in topline, has stronger operating efficiency with EBITDA margin of 19.6% and PAT margin of 14.1%, placing it ahead of larger peers on profitability.
- Margin Leaders: KPI Green leads with 32.3% EBITDA margin and 18.7% PAT margin, reflecting its strong IPP/CPP model. Oriana also posts healthy margins (23.8% EBITDA, 16.1% PAT). Solarworld’s margins are competitive, closer to Waaree (19.2% EBITDA, 14.3% PAT).
- Order Book Visibility: Solarworld’s order book of INR 1,700.6 Cr offers solid visibility. Given Solarworld’s smaller scale, its order pipeline is proportionately strong and aligned with growth ambitions.
- Capacity Deployment: Waaree leads operationally with 1,524 MW commissioned capacity, reflecting its industry dominance. Oriana follows with 200+ MW, while Solarworld has commissioned only 24 MW. That said, Solarworld’s 376 MW contracted capacity (plus BESS projects) shows an active pipeline that could bridge this gap.
Solarworld Energy vs Peers
| Positives | Risks |
|---|---|
| Strong ROE (40.3%) and ROCE (54.5%), higher than most peers | Operates on a relatively modest scale, but complements it with strong execution, improving margins, and niche focus. |
| Lean balance sheet (D/E 0.37) after aggressive deleveraging | Execution risk on large contracted projects → mitigated by successful completion of 253.67 MW AC / 336.17 MW DC |
| Competitive margins in line with Waaree and Oriana | Premium valuation (P/E ~39x) → justified by sector tailwinds and improved balance sheet |
| Clear growth roadmap – targeting 5 GW by 2028 with strong order book |
Conclusion
In the renewable energy IPO landscape, Solarworld Energy presents a case of quality over scale. Beyond the scale of Waaree and Sterling, Solarworld offers a differentiated story built on profitability, efficiency, and financial prudence.
Investors looking for high-growth exposure in India’s solar EPC and RESCO markets may find the company attractive. Solarworld Energy IPO valuations appear reasonable when compared with premium peers, and its ambitious 5 GW expansion target, backed by a healthy order book, underscores a promising growth trajectory.
Bottom line: Solarworld Energy may be smaller in size, but it is steadily carving out its place as a high-efficiency, financially sound contender in India’s renewable energy space.