Avaada Electro IPO

Strengths · 7

• 01Operational capacity of 8.50 GW of solar modules and 3.00 GW of TOPCon solar cells, rising to an annual production capacity of 13.60 GW once the third facility is added.
• 02Order book of 19,106.22 MW as at 31 March 2026 against 2,555.00 MW as at 31 March 2025.
• 03Revenue from operations rose to Rs 5,303.52 crore in FY2026 from Rs 911.62 crore in FY2025, and profit after tax to Rs 888.74 crore from Rs 173.30 crore.
• 04EBITDA margin of 23.74% and return on capital employed of 26.68% in FY2026.
• 05All existing and upcoming capacity uses N-type TOPCon technology, and the Nagpur plant is adding 3.00 GW of ingot and wafer capacity for backward integration.
• 06Inclusion in List I of the ALMM allows supply of modules to government and government-assisted grid-connected utility projects.
• 07The statutory auditors have not included any qualification, adverse remark or emphasis of matter in their reports for FY2024, FY2025 and FY2026.

Risks · 10

• 01Of the total offer of Rs 7,600.00 crore, Rs 6,000.00 crore is an offer for sale by the corporate promoter Avaada Ventures Private Limited, and the company receives nothing from that part.
• 02Avaada Energy Private Limited, a group company, gave 89.34% of revenue from operations in FY2026 and 99.74% in FY2025, so the business depends on one related customer.
• 03The company has a limited operating history, with operations and revenue generation starting only in Fiscal 2025, and its employees have limited tenure with the company.
• 04The debt equity ratio was 1.92x and net debt to equity 1.48x as at 31 March 2026, with total borrowings up to Rs 3,064.78 crore from Rs 594.97 crore a year earlier.
• 05Avaada Ventures Private Limited has lent the company Rs 526.02 crore outstanding as at 31 March 2026 at interest of 8.15% and 8.65% repayable after eight years, and that interest is accruing and unpaid, while the same promoter sells Rs 6,000.00 crore of shares in this offer.
• 06Net cash generated from operating activities fell to Rs 80.00 crore in FY2026 from Rs 532.00 crore in FY2025 even as profit after tax rose to Rs 888.74 crore, and net cash used in investing activities was Rs 2,127.66 crore.
• 07Module capacity utilisation fell to 62.31% in FY2026 from 83.18% in FY2025.
• 08The company does not own the Avaada trademark and logo, so its ability to use the name may be affected.
• 09The amount for general corporate purposes is not stated in the document and is only capped at 25% of the gross proceeds, so part of the fresh money is unspecified.
• 10Group companies have 7 material civil litigations involving an aggregate of Rs 500.00 crore that may have a material impact on the company.

Avaada Electro Limited is a solar manufacturing company in the renewable energy sector. It makes solar cells and solar modules, sold under the Avaada Electro - Enlume and Integlow brand names. The company is part of the Avaada group and is promoted by Avaada Ventures Private Limited along with Vineet Mittal and Sindoor Vineet Mittal. The registered office is at Sector-65, Noida in Uttar Pradesh and the corporate office is in Andheri, Mumbai.

As on the date of the draft abridged prospectus the company has 8.50 GW of operational solar module manufacturing capacity and 3.00 GW of operational TOPCon solar cell capacity. A further 3.00 GW of cell capacity is in an advanced stage of commissioning and is proposed to be operational within the quarter ended 30 September 2026. The modules are made with N-type TOPCon cells, which the company says is the latest technology used for large scale mass production of solar cells.

There are two operating plants. The Dadri facility in Uttar Pradesh has 1.50 GW of module capacity. The integrated Nagpur facility in Maharashtra has 7.00 GW of module capacity and 3.00 GW of cell capacity, with a proposed expansion of 3.00 GW of cells and 3.00 GW of ingot and wafer capacity. A third plant is under construction at Greater Noida in Uttar Pradesh with a proposed 5.10 GW of module and 6.00 GW of cell capacity. With the third facility the company will have an annual production capacity of 13.60 GW.

Sales are concentrated in the Avaada group. Avaada Energy Private Limited, a group company and an independent power producer, gave 89.34% of revenue from operations in FY2026 and 99.74% in FY2025. Supplies to this customer run through Pre-Framework Module Supply Agreements and a Framework Agreement. The order book stood at 19,106.22 MW as at 31 March 2026 against 2,555.00 MW a year earlier. The company is on List I of the ALMM, which lets it supply modules to government and government-assisted grid-connected utility projects.

The company has a short record. Revenue from operations was nil in FY2024, Rs 911.62 crore in FY2025 and Rs 5,303.52 crore in FY2026. Sale of solar modules was 99.89% of FY2026 revenue from operations, with the rest from trading goods and scrap. Profit after tax was Rs 888.74 crore in FY2026 against Rs 173.30 crore in FY2025.

The industry

The CRISIL report in the document places the company in India's renewable energy sector. India's installed renewable energy capacity, including large hydro, grew from 114 GW in Fiscal 2018 to 275 GW in March 2026, a CAGR of about 11.6%. India added around 150 GW of renewable capacity in the last 7 years, and the solar segment led with cumulative additions of about 128 GW. The Government of India targets 500 GW of non-fossil fuel based capacity by 2030 under policies such as the National Solar Mission. Falling module prices and higher efficiency have made solar power more attractive, the solar PV market is dominated by monocrystalline silicon technology, and TOPCon technology is being adopted in India's module manufacturing sector.

Customer concentration: The top five customers gave 98.45% of revenue from operations in FY2026, and group company Avaada Energy Private Limited alone gave 89.34% in FY2026 and 99.74% in FY2025.