From Modules to Power Projects: How Insolation Energy Is Building a Second Growth Engine

Insolation Energy is looking to build a second growth engine beyond its core solar module manufacturing business, with independent power producer (IPP) projects and engineering, procurement and construction (EPC) emerging as key parts of its expansion strategy.

The company, which currently has 5.5 GW of module manufacturing capacity, is targeting an IPP portfolio of more than 400 MW by FY27. Its EPC and operations and maintenance (O&M) business is also being scaled from more than 100 MW currently to over 400 MW by FY27, according to its investor presentation. 

The strategy gives Insolation exposure to multiple parts of the solar value chain — from manufacturing modules and cells to developing and owning power assets and executing projects for customers.

Building an IPP portfolio

Insolation’s IPP business is aimed at creating a portfolio of utility-scale solar projects that can generate long-term power revenues, rather than relying entirely on one-time module sales.

The company has set a target of building an IPP portfolio of 400 MW-plus by FY27. Alongside this, its EPC and O&M portfolio is also expected to reach more than 400 MW. 

The company already has projects under execution and recently secured a ₹516-crore IPP contract along with a PM-KUSUM-linked order in Andhra Pradesh. It has also highlighted increasing contributions from IPP projects as one of the factors expected to strengthen execution over the next two quarters.  

For Insolation, the shift into IPP and EPC also creates a captive demand channel for its manufacturing operations. Its investor presentation describes the IPP portfolio as a source of long-term power revenue, while EPC projects can support demand for its own modules. 

EPC becomes another leg of the business

The company is simultaneously expanding its EPC and O&M operations across utility-scale and commercial and industrial solar projects.

Insolation currently has more than 100 MW in EPC and O&M activities and is targeting more than 400 MW by FY27. The company says the business will also help anchor captive module demand as it expands its manufacturing base. 

The broader order pipeline provides visibility for this expansion. Insolation’s order book stands at more than 2.1 GW, with recent orders including ₹558 crore from NTPC Renewable Energy for solar PV module supply, ₹362 crore in new module supply orders involving MEIL and L&T, ₹340 crore for a Rajasthan RREC rooftop solar project and the ₹516-crore IPP/PM-KUSUM order. 

The company said these orders provide execution visibility for the coming two quarters, with large-scale projects already moving into execution and an increasing contribution expected from IPP projects. 

The manufacturing play remains at the centre

While IPP and EPC are being built as additional businesses, Insolation’s core strategy remains centred on increasing its control over solar manufacturing.

The company currently has 5.5 GW of module capacity in Jaipur and is developing a 4.5 GW TOPCon cell facility at Narmadapuram, Madhya Pradesh. It is also adding an 18,000-MT aluminium-frame facility. 

The 4.5 GW cell project is expected to be a major step in the company’s backward-integration strategy. Insolation says the facility is intended to improve cost control, supply security and margin capture by moving a larger portion of the solar manufacturing value chain in-house. 

The company is also looking further upstream. Its roadmap includes ingot and wafer manufacturing, with the investor presentation highlighting the potential impact of future domestic-content requirements on wafer supply. 

A vertically integrated solar platform

Taken together, the strategy points to Insolation trying to evolve from a module manufacturer into a more integrated solar-energy company.

At one end, it is expanding manufacturing capacity across modules, cells and eventually wafers and ingots. At the other, it is building EPC capabilities and an IPP portfolio that can provide project execution opportunities and long-term power-generation revenues.

The company says its 2.1 GW-plus order book, 400 MW-plus IPP target and 400 MW-plus EPC/O&M target provide visibility for continued expansion. 

However, the expansion also comes with a financial consideration. Insolation’s Q1 FY27 revenue more than doubled to ₹745.4 crore, but EBITDA margin declined to 10.31% from 15.93%, while PAT fell 11.83% to ₹38.02 crore. Finance costs rose to ₹12.44 crore from ₹2.97 crore in the year-ago quarter. 

That makes execution across these new businesses particularly important. The company’s next phase will not only be about adding solar manufacturing capacity, but also about converting its IPP and EPC pipeline into operating assets and revenues while improving the economics of its increasingly integrated business model.