Himalayan Solar Limited IPO

01At a glance

What the company does: designs, supplies, installs and commissions solar water pumping systems for farmers under government schemes, and has restarted making solar panels at a 60 MW plant in Karnal, Haryana (RHP p.153, RHP p.154).

Who pays it: state government departments and agencies; government was 97.19% of FY26 revenue (RHP p.158). The largest customer, the New and Renewable Energy Department, Haryana and HAREDA, was about 50.00% of FY26 revenue and 88.48% of FY24 revenue (RHP p.31).

Why it is raising money: ₹2,950.00 lakh for working capital and ₹1,298.30 lakh for machinery to take the Karnal plant from 60 MW to 160 MW, plus ₹211.99 lakh to repay a term loan (RHP p.94).

How fast it has grown: revenue from ₹13,831.92 lakh in FY24 to ₹17,034.32 lakh in FY26, about 11.0% a year, and profit after tax from ₹494.59 lakh to ₹2,066.61 lakh, about 104.4% a year (our arithmetic, RHP p.59).

The one thing to understand: profit has not turned into cash. Over FY24 to FY26 the company reported ₹4,204.26 lakh of profit and a net operating cash outflow of ₹369.21 lakh (our arithmetic, RHP p.59, RHP p.60), because trade receivables rose from ₹4,045.16 lakh to ₹12,533.74 lakh, 269 days of revenue in FY26 (RHP p.58, RHP p.102).

02The business, in plain words

Himalayan Solar bids in government tenders to supply and install solar pumps for farmers. Once it wins, it surveys each farm, sizes the pump, sources panels, pumps, controllers and structures, stores them in district warehouses, installs the system and connects it to a remote monitoring portal (RHP p.162, RHP p.163). The pumps and controllers are made for it by a contract manufacturer under the Himalayan Solar brand (RHP p.155, RHP p.181).

A state agency funds pumps for farmers → it awards Himalayan Solar a work order → the company sources components, installs each pump and proves it runs → the agency pays, in part only after 90 days of recorded operation.

The company was incorporated in 2015 and ran a 40 MW polycrystalline panel line at Panchkula from 2017 until August 2024, when revised government efficiency rules made that line unusable for tenders (RHP p.154). A 60 MW Mono PERC panel line at Karnal began operating on March 20, 2026 (RHP p.175). In FY26 it also earned ₹400.01 lakh from skill development training (RHP p.157). It had 87 employees at July 31, 2026 (RHP p.178), 40 dealers (RHP p.175) and 16 warehouses (RHP p.158).

Earnings equation: Profit ≈ pumps installed × (contract price − panels, pump sets, structures and installation) − overheads − interest. In FY26, purchases of panels were ₹7,533.23 lakh, pump sets ₹2,601.84 lakh and pumping structures ₹1,722.76 lakh (RHP p.171), against revenue of ₹17,034.32 lakh (RHP p.59). The prospectus does not give the number of pumps installed each year or a price per pump.

03Where the money comes from

Source: RHP p.157.

By state, Haryana was 88.93%, 86.15% and 52.81% of revenue in FY24, FY25 and FY26, and Maharashtra 0%, 13.64% and 45.52% (RHP p.158). All revenue is domestic (RHP p.157).

Source: RHP p.30. The company had 11 customers in FY25 (RHP p.30). Revenue depends on a handful of state agencies: in FY26 five customers made up 99.54% of it (RHP p.30).

04The growth record

Source: RHP p.112, RHP p.60.

Return on net worth was 47.86%, 62.11% and 44.04%, and return on capital employed 23.37%, 44.32% and 35.84% (RHP p.112). Our arithmetic: revenue grew about 11.0% a year from FY24 to FY26, EBITDA about 92.7% and profit about 104.4%; EBITDA margin rose 1,139 basis points and PAT margin 855 basis points (RHP p.112). Audited profit was restated: FY26 profit fell from ₹2,111.92 lakh as audited to ₹2,066.62 lakh, and FY25 profit rose from ₹1,516.56 lakh to ₹1,643.06 lakh (RHP p.239).

05What the growth is made of

Revenue rose 3.0% in FY25 and 19.6% in FY26 (our arithmetic, RHP p.59). The FY26 increase came from Maharashtra, where revenue went from ₹1,942.36 lakh to ₹7,754.38 lakh while Haryana fell from ₹12,270.60 lakh to ₹8,995.82 lakh (RHP p.158); the company attributes it to new government contracts in Maharashtra (RHP p.288). Skill development training added ₹400.01 lakh (RHP p.157).

The jump in margin is explained in the prospectus as a change of contract. Until September 2023 the company executed pump orders from Energy Efficiency Services Limited at fixed rates with no escalation clause; from October 2023 it executed orders under Solar Energy Corporation of India tenders at higher, market-linked rates (RHP p.287). The prospectus does not disclose the number of pumps installed or the price per pump in any year, so the increase cannot be split into volume and price.

06Earnings quality

The receivables need explaining, and the prospectus gives its own explanation. About ₹60 crore of invoices were raised in the last three months of FY26, some projects had not reached the stage at which payment can be claimed, and about ₹17 crore is retention money held back under contract terms (RHP p.263). Payment for pumps is released only after 90 days of recorded operation on the monitoring portal (RHP p.103).

Payables to suppliers grew to ₹6,606.70 lakh at March 2026, and five material creditors were owed ₹6,345.74 lakh (RHP p.58, RHP p.296). Quarterly statements given to banks in FY24 showed inventories ₹211.05 lakh and receivables ₹255.57 lakh higher than the restated books (RHP p.262).

07The balance sheet

At March 2026, borrowings were ₹3,612.38 lakh: cash credit and overdraft ₹1,996.01 lakh, current maturities ₹400.24 lakh, a ₹305.00 lakh interest-free loan from Manjeet Singh repayable on demand, and long-term loans of ₹911.14 lakh (RHP p.242, RHP p.246, RHP p.282). Unsecured business loans from 13 lenders carry 13.00% to 16.00% interest (RHP p.249). Since March 2026 the company has taken further unsecured loans, ₹490.20 lakh drawn by August 31, 2026 (our arithmetic, RHP p.283).

Cash and bank balances were ₹1,032.25 lakh, and fixed deposits are under lien with banks (RHP p.252). Contingent liabilities were ₹2,918.32 lakh, nearly all bank guarantees given to customers (RHP p.61). The company owns no immovable property (RHP p.179).

After the issue: at the upper band the fresh issue adds ₹6,067.52 lakh before expenses to net worth of ₹4,692.67 lakh, and ₹211.99 lakh of it repays debt (our arithmetic, RHP p.58, RHP p.94).

08What the money is for

Source: RHP p.94; percentages our arithmetic. The machinery is mainly a module line quoted by ChinTiyan New Energy (Hubei) at ₹989.03 lakh plus ₹89.26 lakh of customs duty, with ₹220.01 lakh of other equipment and testing; no order has been placed (RHP p.99). Orders are scheduled for October 2026 and commercial operation for April 2027 (RHP p.101). The term loan being repaid funded the 60 MW line (RHP p.101). The working capital plan assumes receivable days fall to 100 in FY27 (RHP p.102). General corporate purposes are capped at 15% of gross proceeds or ₹10 crore, whichever is lower (RHP p.95). CRISIL Ratings is the monitoring agency (RHP p.108).

Into the business ₹6,067.52 lakh at the upper band: 58,90,800 new shares (our arithmetic, RHP p.55). To selling shareholders ₹735.42 lakh at the upper band: 7,14,000 shares from Karthyayini M (our arithmetic, RHP p.55).

09Who is selling

Source: RHP p.22; the last column is our arithmetic. The shares offered are 4.40% of the pre-issue capital (RHP p.22), and the promoter's average cost is ₹0.07 a share (RHP p.26).

10Promoters

The promoters are Manjeet Singh, Karthyayini M, Himanshu Dalal, Mehtab Singh and Anita Kumari (RHP p.214). Manjeet Singh, 44, is managing director and a director since 2018, and previously worked at Omen Industries (RHP p.199, RHP p.202). Mehtab Singh, 57, whole-time director since 2020, served in the Indian Navy as a Petty Officer Electrician (RHP p.202). Himanshu Dalal, 28, executive director since 2024, runs sales (RHP p.203).

Anita Kumari, 45, non-executive director since December 2024, is also a director of Y.P. Infratech and Damview Estates (RHP p.201). Karthyayini M, 76, holds no board seat and has been part of the company for four years (RHP p.215). The prospectus states that Anita Kumari is the wife of Mehtab Singh's brother-in-law (RHP p.203).

Promoter economics: average cost is ₹0.07 a share for Karthyayini M, ₹2.22 for Manjeet Singh, ₹3.48 for Himanshu Dalal and nil for Mehtab Singh and Anita Kumari (RHP p.26). Karthyayini M received 7,56,882 shares in 2020 and 9,99,850 in October 2023 as gifts from Sahana Lakshmi Mahalinga and Hemalatha (RHP p.85), both listed as daughters of Karthyayini M in the promoter group (RHP p.220).

Himanshu Dalal purchased 3,51,409 shares at ₹15.65 in October 2023 (RHP p.86). Mehtab Singh and Anita Kumari received 3,25,000 shares each in February 2025 when Global Rays Power Solutions, a firm of which they were partners, was dissolved (RHP p.87). A 3.5-for-1 bonus followed in June 2025 (RHP p.81). Directors' pay rose from ₹14.70 lakh in FY24 to ₹41.30 lakh in FY26 (RHP p.254).

The promoters guarantee the company's bank loans, and none of their shares is pledged (RHP p.197, RHP p.85). None has led a listed company (RHP p.45).

11Who already owns it

The five promoters hold 1,62,18,764 of the 1,62,18,899 shares, 99.99%, and three promoter group members hold 45 shares each (RHP p.87). There are eight shareholders and no outside investor (RHP p.87). If the whole issue is allotted, the promoters would hold 1,55,04,764 of 2,21,09,699 shares, 70.13% (RHP p.85). Karthyayini M would go from 50.22% to 33.61% (RHP p.85). The last cash allotment was in April 2019, at ₹10 a share (RHP p.79).

12What changed just before the IPO

• The Panchkula panel line stopped in August 2024 and a new 60 MW line at Karnal began on March 20, 2026, in premises leased from Apricate Power Pvt. Ltd. for nine years (RHP p.154, RHP p.175, RHP p.179).
• Statutory auditors changed twice: AMAN B & Co. resigned in April 2023, LADRS & Co. was appointed in September 2023 and resigned in August 2024, and AARSH & Associates was appointed in September 2024 (RHP p.72).
• The company became a public company on November 22, 2024 (RHP p.2).
• On December 20, 2024 it named a managing director, whole-time director and executive director, two independent directors, a chief financial officer and a company secretary (RHP p.206, RHP p.213).
• Global Rays Power Solutions was dissolved and its shares passed to Mehtab Singh and Anita Kumari in February 2025 (RHP p.87).
• A 3.5-for-1 bonus issue of 1,26,14,699 shares was made on June 14, 2025 (RHP p.79).
• Maharashtra went from nothing in FY24 to 45.52% of revenue in FY26 (RHP p.158).
• A skill development training business started, with ₹400.01 lakh of FY26 revenue (RHP p.157).
• New unsecured working capital loans were sanctioned between March and July 2026 (RHP p.283).
• Manjeet Singh resigned from Ghaf Energy Private Limited on February 3, 2026 (RHP p.219).

13Capacity and expansion

Source: RHP p.174, RHP p.175. Panchkula produced 7.28 MW of panels in FY23 and 9.02 MW in FY24 (RHP p.174). The Karnal line can make about 1,07,500 panels a year and 160 MW would be about 2,88,444 panels (RHP p.175). The prospectus says the Karnal output for its first 11 days was computed, but the figure is not in the pages read.

It also says in one place that the 60 MW plant commenced operations in March 2025 and elsewhere March 2026 (RHP p.175). Panels are an input to the company's own pump projects and are also sold: two private customers ordered 25 MW each in July 2025, ₹9,504.00 lakh together, none of it executed by July 31, 2026 (RHP p.173).

14Market size and industry structure

As claimed: the industry chapter is compiled from government and public sources, not from a report commissioned by the company (RHP p.19). It cites India's installed solar capacity of 73.32 GW at December 2023 (RHP p.139) and a Union Budget 2023-24 allocation of ₹7,327 crore for solar, including grid, off-grid and PM-KUSUM projects (RHP p.152).

The part that is addressable: solar pumps funded by state agencies under PM-KUSUM and similar schemes, and solar panels for such projects. The prospectus does not size this market.

What the company is today: ₹16,615.77 lakh of FY26 pump revenue (RHP p.157) and more than 85,000 HP of pumps installed cumulatively (RHP p.153). Its share of any market cannot be worked out from the document.

Structure: demand depends on government subsidy schemes and on tender rules, which already made one production line obsolete (RHP p.29, RHP p.43). Over three years the company won 11 of the 14 tenders it bid in that were not cancelled (RHP p.175).

15Competitive position

Source: RHP p.112, RHP p.113, RHP p.114. The prospectus describes a market of small, regional, national and international players competing on service and price (RHP p.177). Customers are government bodies that choose by tender (RHP p.162). The company points to its empanelment with state agencies in Haryana, Rajasthan, Punjab, Madhya Pradesh and Maharashtra, its BIS and IEC certifications, and ALMM listing for the Karnal plant (RHP p.153, RHP p.160, RHP p.100). It holds one registered trademark (RHP p.181).

16Peers the company named

Peers named in the offer document: Ganesh Green Bharat, Solarium Green Energy and Australian Premium Solar (India) (RHP p.112).

Source: RHP p.112; peer prices are NSE closing prices of September 11, 2026 (RHP p.112). The prospectus says the peers are not strictly comparable (RHP p.111). Ganesh Green Bharat's revenue is about 6.2 times Himalayan Solar's, Australian Premium Solar's about 4.2 times and Solarium Green Energy's about 2.2 times (our arithmetic, RHP p.112).

17Valuation at the issue price

At the upper band of ₹103, with 58,90,800 new shares added to 1,62,18,899 existing shares (RHP p.56):

Source: our arithmetic on shares (RHP p.56), profit (RHP p.59), EPS (RHP p.110), book value (RHP p.111) and EBITDA (RHP p.112).

At the lower band of ₹98 the market capitalisation is ₹21,667.51 lakh and the P/E on FY26 profit 10.5 times (our arithmetic, RHP p.56). Enterprise value takes the 1,62,18,899 existing shares at ₹103, ₹16,705.47 lakh, adds borrowings of ₹3,612.38 lakh and deducts cash and bank balances of ₹1,032.25 lakh, part of which is under lien (our arithmetic, RHP p.58, RHP p.252).

After the issue, book value including the gross fresh proceeds would be about ₹10,760.19 lakh, and the market capitalisation at ₹103 about 2.1 times that (our arithmetic, RHP p.58). The only priced share transaction in the three years before the prospectus was a transfer at ₹15.65, ₹3.48 after the bonus (RHP p.116).

The three peers the prospectus names traded at 7.11, 8.34 and 14.99 times earnings on September 11, 2026, a median of 8.34 (RHP p.112). At the upper band the issue is priced at 11.0 times FY26 profit on the enlarged share count, 32% above that median, and 8.1 times FY26 EPS on the prospectus's own share basis (our arithmetic, RHP p.112).

18Risks, in plain words

Customers: one Haryana agency was 50.00% of FY26 revenue and 88.48% of FY24 revenue (RHP p.31) → a pause in its scheme or budget moves the whole company → the top five customers were 99.54% of FY26 revenue (RHP p.30).

Government schemes: farmers get state and central subsidy on the pumps (RHP p.43) → a cut in the subsidy, or a change in tender rules, reduces demand → a 2023 change in module efficiency rules ended the company's 40 MW panel line (RHP p.29).

Collections: final payment waits for 90 days of recorded operation (RHP p.103) → growth absorbs cash before profit arrives → receivables were ₹12,533.74 lakh at March 2026, 269 days of revenue (RHP p.58, RHP p.102), and operating cash flow was an outflow of ₹207.05 lakh in FY26 (RHP p.60).

Suppliers: there are no long-term supply agreements (RHP p.31) → price or supply changes pass straight to margin → the top five suppliers were 90.20% of FY26 purchases (RHP p.31), and ₹6,606.70 lakh was owed to suppliers at March 2026 (RHP p.58).

Order book: ₹14,021.69 lakh was unexecuted at July 31, 2026 (RHP p.174) → two private panel orders from July 2025 make up ₹9,504.00 lakh of it, 67.8% (our arithmetic, RHP p.173) → none of those two orders had been executed (RHP p.173).

Expansion: the 160 MW expansion needs machinery not yet ordered (RHP p.30) → quotes are in US dollars and valid until January 2027 (RHP p.96, RHP p.99) → Panchkula ran at 22.98% of capacity in FY24 (RHP p.174).

Debt: borrowings were ₹3,612.38 lakh at March 2026, including ₹305.00 lakh repayable on demand to Manjeet Singh (RHP p.43, RHP p.58) → a recall would need other funding → unsecured business loans carry up to 16.00% interest (RHP p.249).

Compliance record: ROC forms, GST returns and PF and ESIC payments have been filed late in past years (RHP p.33, RHP p.38) → penalties are possible → two share allotments did not follow Section 42 of the Companies Act, and an adjudication application is pending (RHP p.32, RHP p.33).

Issue-specific: 7,14,000 shares are sold by a promoter whose average cost is ₹0.07 (RHP p.22, RHP p.26); general corporate purposes and issue expenses are left blank (RHP p.94, RHP p.106).

19Litigation and regulatory matters

In the HVR Solar complaint the amounts and the allegations, including cheating and threats, are the complainant's claims (RHP p.293). There are no criminal proceedings against the promoters or directors (RHP p.295), and the company has no group companies (RHP p.222). A member of senior management is named in the HVR Solar case (RHP p.295). The Karnal plant is leased from Apricate Power Pvt. Ltd., the co-accused in that case (RHP p.179, RHP p.293).

20Related-party transactions

Source: RHP p.25, RHP p.254, RHP p.258; the pay and fee totals are our arithmetic from the individual lines. Mehtab Singh lent ₹130.00 lakh in FY24 and was repaid in FY25; Anita Kumari and Himanshu Dalal each lent and were repaid within FY26 (RHP p.25). Manjeet Singh's loan stood at ₹305.00 lakh at March 2026, interest free (RHP p.282). Om Singh Pahal is listed as Manjeet Singh's father (RHP p.220). What appeared: sitting fees and the CFO and company secretary's pay from FY25, after the December 2024 appointments (RHP p.213); the loans from Anita Kumari and Himanshu Dalal in FY26 (RHP p.25).

21What the offer document does not say

The number of pumps installed, and the price and margin per pump, are not disclosed for any year. Karnal's output and utilisation since March 2026 are not shown in the pages read. Customers other than the Haryana agency are not named in the concentration table. How much of the ₹12,533.74 lakh of March 2026 receivables has since been collected is not stated.

Who AVI Renewable Energy and Ethos Power are, and why their July 2025 panel orders are unexecuted, is not explained. The contract manufacturer of the pumps and controllers is not named. The addressable market for solar pumps is not sized. General corporate purposes, issue expenses and the post-issue book value are left blank.

22Five questions for management

1. How many pumps did the company install in FY24, FY25 and FY26, and at what average contract value and margin per pump?
2. How much of the ₹12,533.74 lakh of receivables at March 2026, including about ₹17 crore of retention money, had been collected by August 2026?
3. What have AVI Renewable Energy and Ethos Power paid against their ₹9,504.00 lakh of July 2025 panel orders, and when will Karnal supply them?
4. How many panels did Karnal produce from March 20 to August 31, 2026, and what share went into the company's own pump projects?
5. On what terms is the Karnal plant leased from Apricate Power Pvt. Ltd., and what other dealings does the company have with it?

1Sources and cited facts

This study was read from 1 document the company filed. The 132 figures it cites are listed under the document each came from, with the page and the sentence as printed.