Swid Renewables Limited IPO

01At a glance

What the company does: designs, supplies, installs, tests and commissions rooftop and ground-mounted solar photovoltaic plants for industrial and commercial customers, mostly in Maharashtra, and has begun work in battery energy storage, open access solar parks and power purchase agreements (DRHP p.142, DRHP p.143).

Who pays it: industrial and commercial customers, who were 97.77% of FY26 revenue; residential work was 2.23% (DRHP p.146). The largest single customer was 18.52% of FY26 revenue and the top ten 47.99%; the prospectus does not name any customer, because their consent was not received (DRHP p.25, DRHP p.26).

Why it is raising money: up to ₹2,000.00 lakh to repay borrowings and up to ₹1,845.10 lakh for working capital, with the balance for general corporate purposes (DRHP p.82).

How fast it has grown: revenue from ₹4,653.17 lakh in FY24 to ₹7,992.80 lakh in FY26, a compound rate of 31.1% a year, and profit from ₹669.98 lakh to ₹1,621.54 lakh, 55.6% a year, by our arithmetic (DRHP p.57).

The one thing to understand: profit and cash have moved in opposite directions. Profit after tax rose to ₹1,621.54 lakh in FY26 while cash used in operating activities widened to ₹1,089.60 lakh, the third consecutive year of outflow (DRHP p.57, DRHP p.58).

02The business, in plain words

Swid Renewables takes a purchase order from a factory, warehouse or cold store, designs a solar plant for that roof or plot, buys the modules, inverters, mounting structures and cables, installs and wires them, tests and commissions the plant, and in some cases maintains it afterwards (DRHP p.142, DRHP p.144). It has executed solar photovoltaic projects across 30 cities in 8 states since incorporation in 2016 (DRHP p.142).

A factory wants cheaper power → places a purchase order for a solar plant → Swid designs it, buys modules and inverters, installs and commissions it → Swid is paid against milestones and invoices.

Three newer lines sit alongside the engineering work. In FY26 the company completed commissioning services for a battery energy storage project in Rajasthan of 862.58 MWh, and has an order for an integrated 650 kWp solar plant with a 1,044 kWh storage system at Pune, worth ₹374.00 lakh excluding tax, with five years of maintenance (DRHP p.143, DRHP p.146).

Two wholly owned subsidiaries, Tessaract Solar Park MH One Private Limited and Tessaract Solar Park MH Two Private Limited, are to develop open access solar parks in Maharashtra; the state transmission utility set out conditions for grid connectivity for a 10 MW park at Tadasar, Sangli, on August 11, 2026 (DRHP p.143).

Two power purchase agreements signed on June 20, 2026 for rooftop plants at Pune are under implementation, and no revenue from the sale of power has yet begun (DRHP p.146). The company had 86 permanent employees at March 31, 2026 (DRHP p.43).

Earnings equation: Profit ≈ order value − modules, inverters and balance of system − installation labour − finance cost. In FY26 the cost of material consumed was ₹5,474.61 lakh and direct expenses ₹442.90 lakh against revenue of ₹7,992.80 lakh, with employee cost ₹642.54 lakh and finance cost ₹340.26 lakh (DRHP p.57).

03Where the money comes from

Source: DRHP p.25, DRHP p.26. No customer is named, because consent was not received from them (DRHP p.26).

By segment, industrial and commercial work was ₹7,814.18 lakh of FY26 revenue (97.77%) and residential ₹178.62 lakh (2.23%) (DRHP p.146). By state, Maharashtra was ₹6,389.96 lakh (79.95%), Madhya Pradesh ₹1,088.58 lakh (13.62%), Rajasthan ₹176.30 lakh (2.21%) and Tamil Nadu ₹44.50 lakh (0.56%); Maharashtra had been 94.67% in FY24 and 94.40% in FY25 (DRHP p.25). By city, Pune alone was ₹3,484.80 lakh, 43.60% of FY26 revenue, and Nashik ₹943.18 lakh, 11.80% (DRHP p.147).

Revenue does depend on a few buyers, and more so than before: the top ten went from 44.55% to 47.99% over two years while the largest customer nearly doubled its share, from 10.55% to 18.52% (DRHP p.25, DRHP p.26). Buying is more concentrated still: the largest supplier was 44.64% of FY26 purchases and direct expenses, the top five 71.03% and the top ten 81.18%; no supplier is named, for the same reason (DRHP p.27).

04The growth record

Source: DRHP p.56, DRHP p.57, DRHP p.58. EBITDA, its margin, the PAT margin, net worth and borrowings are our arithmetic on those statements: EBITDA is profit before tax plus finance costs and depreciation less other income; net worth is share capital plus reserves; borrowings add the long-term and short-term lines. Return on net worth was 73.31% in FY24, 54.79% in FY25 and 44.51% in FY26, and net asset value per share, adjusted for the bonus issues, ₹7.95, ₹17.58 and ₹31.68 (DRHP p.92).

Revenue compounded at 31.1% a year from FY24 to FY26 and profit at 55.6%, by our arithmetic (DRHP p.57). The EBITDA margin moved from 21.36% to 24.39%, 303 basis points, by our arithmetic, after dipping to 18.04% in FY25 (DRHP p.57).

FY26 is consolidated and the two earlier years are not, because the two subsidiaries were incorporated on March 26 and May 13, 2026; neither has commenced commercial operations (DRHP p.60, DRHP p.146).

05What the growth is made of

Revenue rose from ₹4,653.17 lakh in FY24 to ₹7,992.80 lakh in FY26, an increase of ₹3,339.63 lakh (DRHP p.57). What the document supports:

Geography. Madhya Pradesh went from ₹248.00 lakh to ₹1,088.58 lakh and Rajasthan from nil to ₹176.30 lakh, while Maharashtra rose from ₹4,405.17 lakh to ₹6,389.96 lakh; the two newer states account for ₹1,016.88 lakh, 30.4% of the increase, by our arithmetic (DRHP p.25). Within Maharashtra, Pune barely moved, from ₹3,069.76 lakh to ₹3,484.80 lakh (DRHP p.147).

Larger customers. The largest customer went from ₹490.70 lakh to ₹1,480.00 lakh, ₹989.30 lakh of the increase, by our arithmetic (DRHP p.25, DRHP p.26).

Segment. The mix between industrial and commercial and residential work barely changed, 97.44% to 97.77% (DRHP p.146).

The prospectus does not disclose the installed capacity in kilowatts peak commissioned in each year, or the revenue per kilowatt peak, so the increase cannot be separated into volume and price. That sentence is the finding. What it does give is the order book at September 15, 2026: 40 purchase orders, 12,458 kWp, ₹3,609.76 lakh, of which ₹2,175.00 lakh was under execution, ₹506.12 lakh yet to commence, and ₹928.64 lakh, 25.73%, on hold at customers' request (DRHP p.138, DRHP p.139). Maharashtra is ₹3,032.45 lakh of that order book, 84.01% (DRHP p.139).

06Earnings quality

Two lines need explaining. The first is cash. Over three years the company reported ₹3,399.28 lakh of profit after tax, by our arithmetic, and used ₹1,617.36 lakh of cash in operations, because inventory, receivables and advances absorbed ₹1,076.19 lakh, ₹1,162.08 lakh and ₹508.15 lakh respectively in FY26 alone (DRHP p.57, DRHP p.58). The gap was funded by borrowing: proceeds of borrowings were ₹2,262.98 lakh in FY26 against repayments of ₹803.17 lakh (DRHP p.58).

The second is tax. The company holds a startup certificate from the Department for Promotion of Industry and Internal Trade, number DIPP30551, valid for ten years from incorporation, and has applied for a tax exemption under section 80-IAC of the Income Tax Act, 1961, which allows a recognised startup a full deduction of profits for any three consecutive years. Because the three years may be chosen, the company did not pay advance tax in FY24 (DRHP p.41). The FY26 charge of ₹9.49 lakh reflects a MAT credit entitlement of ₹273.11 lakh (DRHP p.57).

07The balance sheet

At March 31, 2026 borrowings were ₹2,334.18 lakh, of which ₹2,202.95 lakh were short term and ₹131.23 lakh long term, by our arithmetic, against ₹874.37 lakh a year earlier (DRHP p.56). Cash and bank balances were ₹906.24 lakh, so net debt was ₹1,427.94 lakh, by our arithmetic (DRHP p.56). Net worth was ₹3,643.25 lakh, so the debt to equity ratio was 0.64, by our arithmetic (DRHP p.56).

Inventories were ₹2,397.96 lakh and trade receivables ₹2,737.97 lakh, together ₹5,135.93 lakh, or 64.3% of FY26 revenue, by our arithmetic (DRHP p.56, DRHP p.57). Trade payables were ₹233.27 lakh, of which ₹68.35 lakh were due to micro and small enterprises, by our arithmetic (DRHP p.56). Short-term loans and advances were ₹1,159.86 lakh (DRHP p.56).

The company reports no contingent liabilities and no capital commitments in any of the three years (DRHP p.59). The promoters have given personal guarantees for certain loan facilities, and the loan agreements carry restrictive covenants and certain unconditional rights in favour of lenders (DRHP p.38, DRHP p.32).

After the issue, up to ₹2,000.00 lakh of borrowings would be repaid, which on the March 2026 balance would leave borrowings of about ₹334.18 lakh, by our arithmetic, before any new drawing (DRHP p.82, DRHP p.56). The rupee size of the issue is not yet set, so nothing further can be worked out.

08What the money is for

Source: DRHP p.82, and our arithmetic on the ₹3,845.10 lakh of stated objects. General corporate purposes are blank ([●]) and cannot exceed 15% of the gross proceeds or ₹1,000 lakh, whichever is lower (DRHP p.82). The funding requirements and the proposed deployment have not been appraised by any bank or financial institution (DRHP p.45).

Debt repayment takes the larger share. Finance costs were ₹340.26 lakh in FY26 against ₹62.32 lakh two years earlier, as borrowings rose from ₹402.16 lakh to ₹2,334.18 lakh (DRHP p.57, DRHP p.56).

Working capital is the constraint the company itself describes: it states that a stronger working capital position supports executing several projects at once and buying solar components in time (DRHP p.145). Inventory and receivables together absorbed ₹2,238.27 lakh of cash in FY26 alone, by our arithmetic (DRHP p.58).

Into the business the whole of the issue. It is a fresh issue of up to 44,00,000 equity shares, with no offer for sale (DRHP p.82). To selling shareholders nil.

The rupee amount cannot be stated, because the price band is blank at this stage (DRHP p.82).

09Who is selling

No one. The issue is a fresh issue of up to 44,00,000 equity shares and the prospectus records no offer for sale, so there are no selling shareholders and no average cost of acquisition to disclose for them (DRHP p.82).

10Promoters

The promoters are Ishan Vishnu Shahade, Vishnu Vishwanath Shahade and Anuja Arvind Godbole, who together hold 1,14,98,160 shares, 99.98% of the capital before the issue (DRHP p.184). Ishan Vishnu Shahade, aged 33, is chairman and managing director and holds 1,14,93,100 shares, 99.94% (DRHP p.184). Anuja Arvind Godbole, aged 30, is a whole-time director from August 7, 2024 and holds 460 shares; the related-party note classifies the same person as a relative of key managerial personnel until that date (DRHP p.184, DRHP p.60). Vishnu Vishwanath Shahade is a director and holds 4,600 shares (DRHP p.184, DRHP p.77).

There has been no change in control in the five years before the filing, no promoter has been named a wilful defaulter and none has been barred from the capital market (DRHP p.185, DRHP p.186). No promoter shares are pledged (DRHP p.77). Ishan Vishnu Shahade ceased to be a director of Whitestork Energy Private Limited on August 31, 2025 (DRHP p.186).

Promoter economics. The only cash subscription was 10,000 shares at ₹10 on incorporation, 5,000 each to Ishan Vishnu Shahade and Vishnu Vishwanath Shahade (DRHP p.73). Everything since has been bonus shares or transfers. A bonus issue of 2,40,000 shares in the ratio 24:1 was made on May 6, 2024, and a second of 1,12,50,000 shares in the ratio 45:1 on July 31, 2026 (DRHP p.73).

In between, on August 2, 2024, Vishnu Vishwanath Shahade transferred five lots of 10 shares each at ₹409 a share to Anuja Godbole, Seema Shahade, Dhanesh Parkhe, Mahesh Raut and Ishita Shahade; and on June 10, 2026, gifted 1,24,850 shares to Ishan Vishnu Shahade, seven weeks before the 45:1 bonus (DRHP p.77).

The company paid directors' remuneration of ₹37.20 lakh in FY24, ₹62.00 lakh in FY25 and ₹74.50 lakh in FY26, and reimbursed expenses of ₹23.57 lakh in FY26 (DRHP p.60). The promoters have given personal guarantees on loan facilities (DRHP p.38). The prospectus states that no payment or benefit has been made to promoters or promoter group members in the two years before the filing beyond what the related-party note shows (DRHP p.186).

11Who already owns it

Source: DRHP p.75, DRHP p.77. There were seven shareholders in all before the issue, five in the promoter and promoter group and two public, being Mahesh Sampat Raut and Onkar Gajanan Joshi with 460 shares each (DRHP p.75). Only Ishan Vishnu Shahade holds 1% or more (DRHP p.75).

A year before the filing the holding was split almost evenly: Ishan Vishnu Shahade 1,25,000 shares, 50.00%, and Vishnu Vishwanath Shahade 1,24,950 shares, 49.98% (DRHP p.76). The gift of June 10, 2026 and the bonus of July 31, 2026 moved it to 99.94% in one name (DRHP p.77, DRHP p.73). There is no private equity, no venture capital and no institutional holding, and there is no employee stock option scheme (DRHP p.74, DRHP p.75).

After the issue the shareholding is blank ([●]) throughout, because the issue price is not set (DRHP p.77).

12What changed just before the IPO

• March 30, 2024 and May 28, 2025: authorised capital raised from ₹1,00,000 to ₹30,00,000 and then to ₹20,00,00,000 (DRHP p.73).
• May 6, 2024: bonus issue of 2,40,000 shares, 24 for 1 (DRHP p.73).
• August 2, 2024: five transfers of 10 shares each at ₹409 a share from Vishnu Vishwanath Shahade (DRHP p.77).
• August 7, 2024: Anuja Arvind Godbole appointed a whole-time director, having been classified until then as a relative of key managerial personnel (DRHP p.60).
• FY25: revenue rose 52.5% to ₹7,097.77 lakh, and cash used in operations widened from ₹132.92 lakh to ₹394.84 lakh; ₹106.64 lakh of sundry balances was written off (DRHP p.57, DRHP p.58).
• FY26: borrowings rose from ₹874.37 lakh to ₹2,334.18 lakh; receivables from ₹1,580.58 lakh to ₹2,737.97 lakh; inventories from ₹1,321.77 lakh to ₹2,397.96 lakh (DRHP p.56).
• March 26 and May 13, 2026: Tessaract Solar Park MH One Private Limited and Tessaract Solar Park MH Two Private Limited incorporated as wholly owned subsidiaries; neither has commenced commercial operations (DRHP p.60, DRHP p.44).
• June 10, 2026: Vishnu Vishwanath Shahade gifted 1,24,850 shares to Ishan Vishnu Shahade (DRHP p.77).
• June 20, 2026: two power purchase agreements signed for rooftop plants at Pune (DRHP p.146).
• July 31, 2026: bonus issue of 1,12,50,000 shares, 45 for 1 (DRHP p.73).
• August 11, 2026: the Maharashtra state transmission utility set out the conditions for grid connectivity for a proposed 10 MW solar park at Tadasar, Sangli (DRHP p.143).
• Company secretary and chief financial officer changed repeatedly: a chief financial officer from July 8, 2025 to April 1, 2026, a successor from April 2, 2026, and a company secretary from March 2, 2026 (DRHP p.60).

13Capacity and expansion

The company is a contractor, not a manufacturer, so the prospectus states no installed capacity for itself. What it states is the pipeline.

Source: DRHP p.138, DRHP p.139. Of that order book, ₹2,289.16 lakh, 63.42%, is in projects of 500 kWp or more, and ₹3,032.45 lakh, 84.01%, is in Maharashtra (DRHP p.138, DRHP p.139).

The expansion the company describes is into owning assets rather than only building them: open access solar parks through the two subsidiaries, and rooftop plants under power purchase agreements where the company owns, operates and maintains the plant and sells the electricity (DRHP p.145, DRHP p.146). Neither has produced revenue yet, and the prospectus does not state what either will cost or when either will earn (DRHP p.146, DRHP p.44). No part of the issue proceeds is earmarked for them (DRHP p.82).

14Market size and industry structure

As claimed: the prospectus carries an industry chapter but states in its risk factors that it cannot guarantee the accuracy or completeness of the facts and statistics on the industry that it contains (DRHP p.39). It does not name a commissioned industry report for the solar engineering market, and this study therefore does not repeat a market size from it.

The part that is addressable: rooftop and ground-mounted solar plants for industrial and commercial premises, plus battery storage commissioning, in the states where the company works; Maharashtra was 79.95% of FY26 revenue and 84.01% of the order book (DRHP p.25, DRHP p.139).

What the company is today: revenue of ₹7,992.80 lakh and an order book of ₹3,609.76 lakh covering 12,458 kWp (DRHP p.57, DRHP p.139).

Structure, as far as the document supports it: work comes on purchase orders with no long-term agreements, so customers may modify, delay, suspend or cancel, and ₹928.64 lakh of the order book was on hold at customers' request at September 15, 2026 (DRHP p.26, DRHP p.142). Modules, inverters and balance of system come from a small number of suppliers in limited locations, with the largest at 44.64% of FY26 purchases and direct expenses (DRHP p.27). Demand is described as seasonal and weather-dependent (DRHP p.30).

15Competitive position

Source: DRHP p.92. Both named peers are several times larger by total income, by our arithmetic on the same table, and both report a lower return on net worth (DRHP p.92).

Why a customer would choose this company over another, on the evidence available: the prospectus rests its case on execution across 30 cities in 8 states since 2016, in-house engineering, design, procurement and installation teams, an independently certified quality management system, and experience in battery storage commissioning (DRHP p.142, DRHP p.144, DRHP p.146). It does not disclose repeat-customer rates, win rates on tenders, or any measure of market share. The company's logo is not registered as a trademark (DRHP p.37).

16Peers the company named

Peers named in the offer document: Zodiac Energy Ltd and Solarium Green Energy Ltd (DRHP p.92).

Zodiac Energy reported FY26 total income of ₹54,598.00 lakh, about seven times the company's, with a return on net worth of 18.03% against 44.51% and a net asset value per share of ₹77.26 against ₹31.68 (DRHP p.92). Solarium Green Energy reported ₹37,301.07 lakh, about five times, with a return on net worth of 12.58% and a net asset value per share of ₹77.93 (DRHP p.92).

The prospectus prints their price to earnings ratios on stock exchange data of September 15, 2026: 16.21 times for Zodiac Energy and 14.69 times for Solarium Green Energy, an average of 15.45 (DRHP p.92). The company's own ratio is blank, because no price band exists (DRHP p.92). The company reports the higher return on net worth of the three; it is also the smallest, and the return is measured on a net worth built largely from three years of retained profit (DRHP p.92, DRHP p.56).

17Risks, in plain words

Cash: cash used in operating activities was ₹132.92 lakh in FY24, ₹394.84 lakh in FY25 and ₹1,089.60 lakh in FY26 (DRHP p.58) → growth is being funded by borrowing rather than by the business → borrowings rose from ₹402.16 lakh to ₹2,334.18 lakh over the same period, and finance costs from ₹62.32 lakh to ₹340.26 lakh (DRHP p.56, DRHP p.57).

Customers: work comes on purchase orders with no long-term agreements (DRHP p.26) → an order can be deferred or cancelled → ₹928.64 lakh of the September 15, 2026 order book, 25.73%, was on hold at customers' request, and the largest customer was 18.52% of FY26 revenue (DRHP p.138, DRHP p.25).

Suppliers: modules and components come from a few suppliers in limited locations (DRHP p.27) → a supply break stops installations → the largest supplier was 44.64% of FY26 purchases and direct expenses and the top five 71.03% (DRHP p.27).

One state: Maharashtra was 79.95% of FY26 revenue and 84.01% of the order book (DRHP p.25, DRHP p.139) → a change in state policy, tariffs or open access rules moves most of the business → Pune alone was 43.60% of FY26 revenue (DRHP p.147).

Working capital: inventories and receivables were ₹5,135.93 lakh at March 2026, 64.3% of FY26 revenue, by our arithmetic (DRHP p.56, DRHP p.57) → each new project ties up cash before it pays → receivable days moved from 49 to 125 over two years, by our arithmetic (DRHP p.56, DRHP p.57).

Records and compliance: the prospectus discloses discrepancies and non-compliances in some financial reporting and records, discrepancies, errors and delayed filings in corporate records with the Registrar of Companies, and historical non-compliances, clerical inconsistencies and disclosure gaps (DRHP p.32, DRHP p.33, DRHP p.34) → regulators may act and reconciliations may be required → form INC-22 for a change in registered office was filed late, on July 31, 2026, with late fees (DRHP p.34). The restated financial statements were prepared by peer-reviewed chartered accountants who are not the statutory auditor (DRHP p.31).

Tax: the company did not pay advance tax in FY24 while an application under section 80-IAC was pending, and the FY26 tax charge was ₹9.49 lakh on profit before tax of ₹1,631.03 lakh (DRHP p.41, DRHP p.57) → a refused or exhausted exemption raises the charge → an income tax demand of ₹88.39 lakh under section 154 for assessment year 2024 is under appeal (DRHP p.252).

New businesses: the two subsidiaries were incorporated in 2026, have no operating history and have not commenced commercial operations, and the power purchase agreement projects are still being built (DRHP p.44, DRHP p.146) → none of them yet earns → some group companies have incurred losses and have negative net worth in certain periods (DRHP p.41).

Premises and intellectual property: the registered office and warehouses are not owned, and the company's logo is not registered as a trademark (DRHP p.29, DRHP p.37).

18Litigation and regulatory matters

There are no criminal proceedings, regulatory actions, disciplinary actions or material civil proceedings against the company, its subsidiaries, its directors, its promoters or its key managerial personnel; the subsidiaries and the directors other than promoters have no tax proceedings (DRHP p.252, DRHP p.253, DRHP p.254). The ₹77.56 lakh in the second row is an amount the company says remained outstanding to it and has written off, not a demand against it.

19Related-party transactions

Source: DRHP p.60, and our arithmetic in adding the columns for reimbursements and advances. The related parties named are the three promoters, a relative of a director, two chief financial officers, a company secretary, the two subsidiaries, and five entities in which key managerial personnel have influence: Earth Conservation Organization, Whitestork Energy Private Limited, Stark EPC, Petpal and Kaioken Technologies (DRHP p.60).

What appeared and disappeared: purchases from a related enterprise were ₹237.14 lakh in FY24, fell to ₹49.37 lakh in FY25 and stopped in FY26 (DRHP p.60). Directors' remuneration doubled over the same period (DRHP p.60). The two subsidiaries became related parties in March and May 2026 (DRHP p.60).

20What the offer document does not say

• No customer is named, because consent was not received from them (DRHP p.26).
• No supplier is named, for the same reason (DRHP p.27).
• Kilowatts peak commissioned in each year, and revenue per kilowatt peak, are not disclosed, so growth cannot be split into volume and price (DRHP p.146).
• Gross margin by project type is not disclosed (DRHP p.146).
• The cost and timetable of the open access solar parks and the power purchase agreement projects are not stated (DRHP p.146).
• Repeat business, tender win rates and any measure of market share are not disclosed (DRHP p.144).
• The industry chapter is not attributed to a named commissioned report, and the prospectus states it cannot guarantee the accuracy of the industry data (DRHP p.39).
• The price band, the bid lot and the rupee size of the issue are blank at this stage (DRHP p.82).

21Five questions for management

1. How many kilowatts peak were commissioned in FY24, FY25 and FY26, and what was the revenue per kilowatt peak in each year (DRHP p.146)?
2. Why did receivable days move from 49 to 125 in two years, and what are the payment terms on the largest ten orders (DRHP p.56)?
3. What are the 16 purchase orders worth ₹928.64 lakh that customers have put on hold, and what has each customer said about restarting (DRHP p.138)?
4. What will the two open access solar parks cost to build, how will they be funded, and when is first revenue expected (DRHP p.143)?
5. For which three financial years does the company intend to claim the section 80-IAC deduction, and what would the tax charge have been in FY26 without the MAT credit entitlement (DRHP p.41, DRHP p.57)?

1Sources and cited facts

This study was read from 1 document the company filed. The 130 figures it cites are listed under the document each came from, with the page and the sentence as printed.