Read this Smarten Power IPO review to understand whether the company’s low P/E, export reach, and product range make it a smart investment
Smarten Power IPO Snapshot
- Issue Size: INR 50.00 Cr (INR 40.00 Cr fresh issue + INR 10.00 Cr OFS)
- Price per Share: INR 100 (Face value INR 10)
- Listing: NSE Emerge
- Offer Opens: 7 July 2025 | Offer Closes: 9 July 2025
Business Overview
Smarten Power Systems, incorporated in 2014 and based in Gurgaon, Haryana, designs and manufactures advanced power backup and solar power products. Its range includes Home UPS systems, solar inverters, solar power conditioning units (PCUs), solar charge controllers, and battery storage systems. The company also trades in solar panels and batteries.
Smarten markets through a pan-India distributor network and exports to 17+ countries, including the Middle East, Africa, and South Asia. As of FY25, 66.51% of revenue is from domestic sales and 33.49% from exports. It operates in 23 Indian states and 2 union territories.
The current manufacturing capacity stands at ~600 units/day, expected to double to 1,200 units/day post commissioning of the Jhajjar, Haryana plant.
Smarten Power IPO Review: Industry Outlook
India’s power backup and solar energy industry is undergoing a rapid structural transformation, supported by sustained policy focus and robust demand growth. As per MNRE (Ministry of New and Renewable Energy), India had installed over 81 GW of solar capacity as of March 2025, with off-grid and rooftop segments accounting for more than 12 GW. The government aims to cross 280 GW of solar capacity by 2030 under its National Solar Mission.
Key industry growth indicators include:
- Solar Rooftop CAGR of 18% expected from FY24 to FY28, per ICRA estimates
- Power Backup Market (including inverters and batteries) projected to grow at CAGR of 10–12% over the next five years, driven by erratic grid power in Tier II/III cities and MSME demand
- PLI Schemes and Import Duties on Chinese products are encouraging local manufacturing of solar equipment
- MSME Solar Adoption is expected to grow due to rising power tariffs and cost parity in rooftop systems
Implications for Smarten Power:
- Its solar hybrid products (inverters + charge controllers) directly address the growing rooftop market
- Manufacturing push aligns with Smarten’s expansion at Jhajjar, aiding cost competitiveness
- Diversified product lines enable bundling, helpful in retail markets with fragmented demand
- Early presence in export markets (17+ countries) offers a head start as global solar adoption widens
Thus, Smarten stands to benefit from both the volume growth in distributed solar and the rising institutional preference for domestic, integrated energy solutions.
Smarten Power IPO Review: Business Model Analysis
Smarten Power employs a hybrid B2B2C model with integrated in-house manufacturing and a multi-tier distribution network. Its operations span multiple product categories in the power electronics and solar energy domain, offering end-to-end solutions from DC to AC conversion, storage, and energy efficiency.
#1 Value Chain Integration
- Design to Delivery: The company engages in product conceptualisation, design, manufacturing, testing, and packaging in-house, offering better quality control and faster customisations.
- Component Procurement: Key components (PCBAs, transformers) are sourced from selected suppliers; the rest are produced in-house to optimise costs.
- Product Assembly: Centralised at their Gurgaon facility, with the Jhajjar plant under development to handle scale.
#2 Product-Market Fit
- Product Categories: Home UPS, Solar Hybrid Inverters, MPPT/ PWM Solar Charge Controllers, Solar PCUs, Tubular Batteries, and allied solar accessories.
- Use Cases: Targeting power-deficient regions, backup requirements in Tier II-IV cities, and off-grid solar installations.
- Price Positioning: Mid-premium, with focus on value engineering and durability over commoditised low-cost offerings.
#3 Distribution Channels
- Wholesale B2B: Over 1,000 channel partners and distributors. Distributors handle region-wise inventory stocking and credit sales.
- Export Partners: Distributor-led model in international markets (no subsidiaries). Custom documentation and localised specifications support regional compliance.
- Retail & D2C: Direct presence via ecommerce platforms and the company website. Influencer marketing in specific segments like solar installers and electricians.
#4 Customer Profile
- Retail Consumers: Household and small commercial UPS users.
- SMEs & MSMEs: Backup solutions for office infrastructure and production continuity.
- Project Installers: Procurement of solar kits and charge controllers for turnkey solar EPC work.
- NGOs & Gov Schemes: Low-scale but important institutional business expected to grow.
#5 After-Sales & Support
- Service Centres: Franchise-operated service centres across key states.
- AMC and Warranty: One-year product warranty; limited AMC packages available.
- Spare Supply: Centralised inventory of spares managed by logistics partners.
#6 Strategic Levers
- New Capacity at Jhajjar: Expected to double current output, reduce lead time, and improve gross margin via better production economics.
- Technology Tie-ups: Currently limited but exploring design partnerships for MPPT and IoT-enabled monitoring modules.
- Branding Investments: Plans to build greater brand recall among solar professionals via exhibitions, trade fairs, and regional campaigns.
Challenges in the Model
- Working Capital Drag: Receivables from distributors and inventory at multiple nodes.
- Dependence on China for Components: Exposure to geopolitical risks and forex volatility.
- Lack of Institutional Contracts: Heavily reliant on fragmented retail and SME orders.
Smarten’s business model is built for operational scalability and geographic reach. While margins are currently expanding, further value unlocking depends on logistics efficiency, branding maturity, and institutional order conversion.
Smarten Power IPO Review: Financials
| Metric | FY 2023 | FY 2024 | FY 2025 |
| Revenue | 179.94 | 195.2 | 201.75 |
| Expenses | 178.85 | 182.64 | 186.04 |
| Net income | 5.16 | 11.29 | 12.77 |
| EPS | 3.29 | 7.53 | 8.51 |
| PE ratio | – | – | 11.75 |
| RONW (%) | 35.62 | 43.82 | 33.14 |
| NAV | 9.86 | 17.18 | 25.69 |
| ROCE (%) | 40.84 | 51.44 | 32.58 |
| EBITDA (%) | 1.03 | 6.94 | 8.39 |
| Debt/Equity | 0.29 | 0.26 | 0.43 |
The company’s financials reflect sustained top-line growth and sharply improving margins and returns. Net profit grew over 3x between FY23 and FY25.
Objects of the Offer
- Working Capital Requirements: INR 22.00 Cr (~55% of Fresh Issue proceeds)
- Partial Repayment of Borrowings: INR 0.95 Cr
- General Corporate Purposes: Balance
The capital raise targets liquidity enhancement for expanded operations, especially post-Jhajjar facility commissioning.
Smarten Power IPO Review: Risks
- The Company derived 72% of FY25 revenue from Haryana (47.26%) and Uttar Pradesh (36.04%); regional disruptions or improved power supply may impact operations.
- Top 10 customers contributed 33.40% (FY25), 42.29% (FY24) of revenue; a loss or reduction in orders could adversely affect financial performance.
- Working capital needs increased to INR 39.88 crore in FY25; the Company plans to fund INR 22.00 crore from IPO proceeds to meet these requirements.
- Home UPS, solar inverters, and batteries accounted for ~84.5% of FY25 revenue; demand decline could significantly affect revenues and margins.
- Exports contributed 23.59% of FY25 revenue, with 37.28% from Nigeria; adverse foreign policy or trade regulations could disrupt international business.
- The Company’s current capacity of 600 units/day is underutilised; expansion to 1,200 units/day risks inefficiency if demand is overestimated.
- One pending statutory case involving INR 40.84 Lakhs may pose liability; no significant legal exposure exists against promoters or key personnel.
- The Company reported negative operating cash flows in FY25 (INR 2.51 crore) and FY23 (INR 2.54 crore); sustained deficits may affect liquidity and growth.
Valuation and Peer Comparison
A comparative analysis with listed SME peers reveals Smarten Power’s relative valuation attractiveness and superior capital efficiency.
| Company Name | Total Income (INR Cr) | P/E | EPS (INR) | RONW (%) | NAV/Share (INR) | PAT (INR Cr) |
| Smarten Power | 203.20 | 11.75 | 8.51 | 33.14% | 25.69 | 12.77 |
| GP Eco Solutions | 247.44 | 42.26 | 8.85 | 15.99% | 55.36 | 10.36 |
| Sungarner Energies | 33.64 | 40.81 | 7.45 | 15.36% | 48.46 | 1.73 |
Key Observations:
- Valuation Edge: Smarten is priced at a P/E of 11.75x based on FY25 EPS, which is significantly lower than GP Eco (42.26x) and Sungarner (40.81x). This reflects a valuation comfort for investors.
- Profitability Leadership: With a RONW of 33.14%, Smarten outperforms peers by a large margin, indicating higher return on equity capital.
- Earnings Scale: Despite a smaller NAV per share, Smarten has the highest PAT among the three, highlighting strong bottom-line scalability.
- Revenue Strength: Smarten’s revenue base is comparable to GP Eco, but its margin and capital efficiency metrics are substantially stronger.
Overall, the company’s valuation appears attractively placed within its peer group, especially given its earnings growth, profitability ratios, and expanding capacity base.
Final Words
Smarten Power is a high-growth power electronics player with a credible export book and diversified product range. Its aggressive expansion, healthy profitability, and reasonable valuation make it a fundamentally strong SME candidate.
Key Watchouts: Scale-up execution, working capital discipline, and export cycle stabilisation will be vital post-listing.
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