Indosol Solar, a rising star in India’s clean energy manufacturing landscape and a wholly owned subsidiary of Shirdi Sai Electricals, is gearing up for a landmark Initial Public Offering (IPO) in Financial Year 2026–27. The IPO will follow the commissioning of its 1 GW integrated manufacturing line in Andhra Pradesh, marking a significant inflection point in the company’s giga-scale solar ambitions.
A Vision Carved in Quartz
Indosol Solar, structured as a special project vehicle (SPV) under the aegis of Shirdi Sai Electricals, one of India’s leading transformer manufacturers and EPC contractors, is constructing what could become India’s most ambitious vertically integrated solar PV manufacturing complex.
Spread across over 8,400 acres in SPSR Nellore District of Andhra Pradesh, the planned facility is designed to span the entire solar value chain. From sourcing quartz to producing metallurgical-grade silicon, then transforming it into polysilicon, ingots, wafers, cells, modules, and even solar glass, Indosol Solar aims to internalize every step of the process.
The company has already secured quartz mining rights in Kurnool and Anantapur districts, laying the foundation for complete backward integration. Around 40–50% of its polysilicon output will be used internally, with the remainder feeding India’s broader solar ecosystem.
Project Phases and Financial Commitments
The Indosol Solar project will unfold in phases:
- Phase 1A: A 1 GW integrated line (from ingot to module), set up on 1,500 acres, is expected to be commissioned by the end of FY25 (i.e., 31 March 2026). Investment: INR 2,400 crore.
- Phase I: A 10 GW integrated line, slated for commissioning by December 2026, with an estimated investment of INR 25,000 to INR 28,000 crore. This includes a 2,400 TPD glass manufacturing plant.
- Phase II: Will comprise 45,000 metric tons of annual polysilicon production capacity and another 10 GW downstream line.
The long-term blueprint includes producing 90,000 metric tons per annum (MTPA) of polysilicon, 20 GW of fully integrated module production, 120,000 MTPA of metallurgical silica, and a 120 MLD desalination facility. The total cumulative investment is projected at INR 69,000 crore.
IPO Strategy and Financing
To fuel this massive capex plan, Indosol Solar is targeting an IPO in FY27, following the successful commissioning of its 1 GW line. The company intends to initially dilute 25–26% of its stake, possibly via a Pre-IPO placement, with the option to increase dilution to up to 49%. Shirdi Sai Electricals will retain at least 51% ownership in Indosol Solar post-listing.
In case the Indosol IPO faces market or regulatory hurdles, Chairman and Managing Director N Visweswara Reddy has hinted at a potential IPO for the parent entity, Shirdi Sai Electricals, instead.
So far, Indosol Solar has secured INR 12,000 crore in debt financing, including IREDA and internal equity. The company is in advanced talks with multiple MNCs and PSUs for equity participation.
Government Backing and Incentives
The Government of India, recognizing Indosol’s strategic significance, has extended Production Linked Incentive (PLI) support totalling INR 5,175 crore, awarded in two tranches. These are part of the broader national agenda to localize and scale up solar manufacturing under the “Make in India” initiative.
Operational Highlights and Outlook
Indosol Solar has a 500 MW module line commissioned in March 2024, but it was shut down temporarily due to power instability. To mitigate future risks, the company has built a 33 kV dedicated transmission line.
The company did not generate any revenue in FY25 due to infrastructure delays. But with production starting this year, Indosol Solar expects to do INR 600 crore in revenue in FY26.
Parent company Shirdi Sai Electricals, despite facing challenges like delayed government payments and national election slowdown, reported a revenue decline from INR 3,400 crore in FY24 to INR 3,000 crore in FY25. But the company expects a strong rebound to INR 6,500 crore in FY26 with an order book of INR 12,000 crore, including INR 600 crore in transformer export orders.
Conclusion
With deep vertical integration, government support, and a bold INR 69,000 crore capex plan, Indosol Solar is shaping up to be the cornerstone of India’s solar manufacturing story. As the global solar supply chain shifts towards resilience and localization, Indosol’s FY27 IPO may not just be a corporate event but a game-changer for the Indian solar industry.
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