Introduction
Emmvee Photovoltaic Energy Restricted’s (EPPL) valuation seems cheap to engaging in comparison with its listed friends. The corporate show’s a superior revenue margins and quick latest progress.
Let’s take a look at a consolidated view of the Emmvee Group (EPPL and Emmvee Vitality) monetary efficiency for FY2025. We’ll use this knowledge as our foundation for peer comparability in opposition to main home photo voltaic producers like Waaree Energies, Premier Energies, Vikram Photo voltaic, Saatvik Inexperienced Vitality, and Websol Vitality Programs.
Comparability of Margins and Development (FY2025)
Emmvee Photovoltaic stands out for its profitability metrics. It’s powered by the stabilization and ramp-up of built-in photo voltaic PV cell-cum-module capacities.
1. Revenue Margins
Emmvee demonstrates one of the engaging profitability profiles amongst its friends.
| Metric (FY2025) | Emmvee Photovoltaic | Waaree Energies | Premier Energies | Vikram Photo voltaic | Saatvik Inexperienced Vitality | Websol Vitality |
| EBITDA Margin | 30.91% | 21.04% | 28.78% | 14.37% | 16.40% | 44.2% |
| PAT Margin | 15.8% | 13.0% | 14.1% | 4.1% | 9.8% | 26.9% |
| Return on Fairness (ROE) | 104.6% | 28.1% | 54.0% | 16.6% | 63.4% | 80.2% |
EBITDA Margin: Emmvee’s working margin (30.91% in FY2025) is superior to all listed friends proven within the desk apart from Websol Vitality. This sturdy margin displays operational self-discipline, value effectivity, and a good pricing situation for home content material requirement (DCR) modules.
Return on Fairness (ROE): Emmvee’s ROE of 104.6% in FY2025 is exceptionally excessive. It’s is a robust sign of extremely environment friendly capital use. Nevertheless, it’s also price nothing that this determine is getting amplified by the corporate’s important leverage (which additionally makes it dangerous for defensive buyers).
2. Development Observe File
Emmvee has demonstrated a monetary turnaround and progress acceleration main as much as this IPO.
The consolidated working revenue grew 145% to Rs. 2,336 crore in FY2025 over FY2024.
The Revenue After Tax (PAT) jumped from simply Rs. 9 crore in FY2023 to Rs. 369 crore in FY2025.
So you’ll be able to see, the corporate is presenting a large progress price of 1,177% in FY2025.
Valuation Comparability
Emmvee’s valuation, based mostly on its IPO value band of Rs. 206 to 217 per share, and post-IPO fairness, is aggressive. That is very true when it’s in comparison with the sector common and friends.
I mentioning “post-IPO fairness” as a result of it will the adjusted fairness base after the corporate will get listed. It’s a essential knowledge as a result of it accounts for the brand new capital raised. This funds obtained from the IPO is primarily geared toward meaningfully lowering Emmvee’s excessive consolidated debt (approx. Rs. 1,621.29 crore). It will in flip bettering the corporate’s leverage and also will current a extra favorable (decrease) P/E ratio for comparability with listed friends.
Worth-to-Earnings (P/E) Ratio
Based mostly on FY2025 trailing earnings, Emmvee’s valuation is positioned decrease than lots of its main listed friends:
| Firm | P/E Ratio (FY25 Trailing) |
| Vikram Photo voltaic | 71 |
| Premier Energies | 51 |
| Waaree Energies | 50.5 |
| Emmvee Photovoltaic (IPO) | 40.7 |
| Saatvik Inexperienced Vitality | 27.5 |
| Websol Vitality | 27.8 |
Valuation Evaluation: At a trailing P/E of round 40.7 instances (based mostly on FY25 earnings), Emmvee’s IPO pricing is decrease than Waaree Energies, Premier Energies, and Vikram Photo voltaic.
Ahead Valuation: If annualized utilizing Q1 FY2026 earnings, Emmvee’s P/E is anticipated to drop to roughly 20 instances. This manner, in lower than a 12 months, it will likely be considerably cheaper than the trade weighted common P/E of roughly 45x.
Therefore, the analysts are contemplating this IPO to be attractively priced as in comparison with its friends. However this notion of engaging valuation is predicated on the idea of continued sturdy revenue progress and speedy growth in instances to come back.
Leverage Context
A key distinction in Emmvee’s monetary profile in comparison with friends is its excessive leverage.
Emmvee’s Debt-to-Fairness (D/E) ratio stood at 3.6x in FY2025 or 2.55 within the valuation evaluation. The corporate’s D/E ratio is notably larger than friends like Waaree (0.26), Premier (0.47), and Vikram Photo voltaic (0.09).
Nevertheless, a big portion of the IPO proceeds (roughly Rs. 1,621.29 crore) is deliberate for the reimbursement of current borrowings (debt). This can be a transfer that’s anticipated to scrub up the steadiness sheet (decrease the debt load) and thereby cut back curiosity value. It should enhance the debt-to-equity ratio post-IPO.
How a lot the D/E ratio of Emmvee Photovoltaic wil cut back after the IPO?
1. What’s the whole debt within the books of Emmvee?
The newest determine for the Group’s consolidated whole debt (whole borrowings) is Rs. 2,032.11 crore as of the tip of Q1 FY26 (June 2025). For the complete fiscal 12 months FY2025, the overall borrowings stood barely decrease at Rs. 1,949.69 crore.
2. How a lot debt will stay after the IPO?
The Emmvee Group plans to make use of a good portion of the IPO’s contemporary challenge particularly for debt discount.
- Debt Compensation Quantity: The corporate intends to make the most of roughly Rs. 1,621.29 crore from the IPO proceeds for the reimbursement or prepayment of current borrowings.
- Estimated Remaining Debt: Based mostly on the overall debt determine as of June 2025 (Rs. 2,032.11 crore) and the deliberate reimbursement quantity (Rs. 1,621.29 crore), the estimated remaining consolidated debt within the books of Emmvee post-IPO can be roughly Rs. 410.82 crore (= 2032.11 – 1621.29).
3. What’s the D/E ratio now and the way a lot it turns into post-IPO?
The Emmvee Group at present operates with a excessive leverage profile.
- The Debt-to-Fairness (D/E) ratio stood at 3.63x for FY2025.
- The full debt of Rs. 2,032 crore as of June 2025 was roughly 2.8 instances its whole fairness.
- Anticipated D/E Ratio Submit-IPO:
- Estimated Submit-IPO Debt: Rs. 410.82 crore in debt.
- Estimated Submit-IPO Fairness: The prevailing Internet Price is ₹718.79 crore (Q1 FY26). This can be augmented by the complete Recent Problem proceeds of Rs. 2,143.86 crore. The ultimate whole can be roughly Rs. 2,862.65 crore in post-IPO fairness.
- The ensuing ratio (Debt/Fairness). We are able to calculate it like this: 410.82 Cr / 2862.65 Cr = ~0.14
Conclusion
Let’s conclude the subject by utilizing the analygo of a racing automotive.
Right here, we’ve performed the peer valuation of Emmvee.
If peer valuation is like evaluating race vehicles, Emmvee Photovoltaic is at present exhibiting off a high-performance engine (superior margins and explosive progress). This automotive is housed in a chassis that’s nonetheless carrying further gasoline tanks (excessive debt).
The IPO is seen as an try and shed that further weight (of additional gasoline – debt).
This manner, it should permit the automotive to commerce at a aggressive value relative to its friends. This transfer may promise higher velocity sooner or later, however the danger can be low as debt load will cut back.
