Insolation Energy Ltd(BSE:SME: 543620) is a Jaipur-based solar panel manufacturer and project developer, incorporated in 2015. The company operates a 200 MW solar module manufacturing facility and has been expanding its presence in the Engineering, Procurement, and Construction (EPC) segment for solar projects. While it reported strong profit growth in FY2025, its revenue declined sharply, and its valuation metrics remain extremely stretched. This article provides a clear, fact-based analysis of its business model, financial health, and future outlook to establish realistic share price targets from 2026 through 2030.
Insolation Energy Ltd: Company Overview
- Business Model: Engaged in manufacturing high-efficiency solar modules and providing EPC services for utility-scale and rooftop solar projects.
- Geography: Primarily operates in India, with its manufacturing unit located in Jaipur, Rajasthan.
- Key Developments: The company is targeting a 3 GW module manufacturing capacity by January 2026 and has secured significant EPC orders, including 1,750 MW of module supply and 625 MW of EPC contracts as of December 2025.
Insolation Energy Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹129 |
| Market Capitalization | ₹2,843 Crore |
| 52-Week High/Low | ₹333 / ₹116 |
| P/E (TTM) | 566.29 |
| P/B (TTM) | 6.52 |
| ROE (FY2025) | 2.07% |
| ROCE (FY2025) | 3.26% |
| Debt/Equity (Mar 2025) | 0.06 |
| FY2025 Revenue | ₹1,334 Crore |
| FY2025 Net Profit | ₹126 Crore |
Insolation Energy Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹140 – ₹170 |
| 2027 | ₹160 – ₹200 |
| 2028 | ₹180 – ₹240 |
| 2029 | ₹200 – ₹280 |
| 2030 | ₹220 – ₹320 |
Insolation Energy Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹140 | ₹170 |
- The company’s return to profitability in FY2025 is a positive sign, but its earnings per share (EPS) remain very low at ₹0.23.
- An astronomical P/E ratio of 566 suggests the stock is priced for perfection, leaving little room for error or disappointment.
- The sharp 50% decline in sales is a major red flag, indicating potential execution issues or market share loss despite the sector tailwind.
Insolation Energy Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹160 | ₹200 |
- Growth will depend on its ability to scale its new 3 GW manufacturing capacity and convert its order book into revenue.
- As a pure-play on solar, it benefits indirectly from India’s 500 GW non-fossil fuel target by 2030.
- Investor sentiment will remain cautious due to its history of volatile earnings and extreme valuation.
Insolation Energy Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹180 | ₹240 |
- By this stage, the market will be looking for consistent, scalable profits and a visible, profitable project pipeline.
- Its success is tied to its execution capability in a highly competitive and low-margin EPC and manufacturing segment.
- A significant reduction in its P/E multiple would be necessary for the stock to be considered fairly valued.
Insolation Energy Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹200 | ₹280 |
- Long-term investors will be watching for the company to establish itself as a reliable, mid-sized player in the distributed solar space.
- Any diversification into new areas like rooftop solar or energy storage could act as a re-rating catalyst.
- Sustained high returns on capital would be a key requirement to justify its premium valuation.
Insolation Energy Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹220 | ₹320 |
- Sentiment will depend on Insolation Energy achieving a critical mass of operational assets and demonstrating a path to robust, predictable cash flows.
- If it can maintain its current ROE of over 2% while growing its asset base, it could command a more reasonable valuation.
- However, its tiny scale compared to peers like Waaree or Adani makes it a high-risk, speculative bet.
Insolation Energy Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters | 66.10% |
| Foreign Institutions (FII/FPI) | 0.79% |
| Domestic Institutions (DII) | 0.55% |
| Public (Retail & Others) | 32.55% |
Promoters hold a dominant 66.10% stake, indicating strong control. There is no pledging of shares, which is a positive governance signal.
Insolation Energy Ltd: Strengths vs Risks
- Strengths:
- Return to Profitability: After years of losses, the company reported a net profit in FY2025.
- Clean Balance Sheet: Very low debt-to-equity ratio of 0.06 and a recent capital infusion have strengthened its finances.
- Focused Business: A pure-play solar company with a clear strategic direction.
- Risks:
- Extremely High Valuation: A P/E of 566 and P/B of 6.52 are unsustainable for a company of its size and earnings.
- Collapsing Revenue: A 50% YoY sales decline in FY2025 is a severe concern that overshadows its profit growth.
- Execution Risk: Scaling up in a fiercely competitive market against large players is a major challenge.
- Low Profitability: An ROE of just 2.07% indicates poor capital efficiency.
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Very High (micro-cap, speculative) |
| Time Horizon | Long-term (5+ years) – turnaround story |
| Volatility | Very High – typical of small-caps with high valuations |
| Dividend/Income | None – the company does not pay meaningful dividends (0.08% yield). |
| Ideal Investor | Aggressive, speculative investors who believe in a deep-value turnaround and can tolerate extreme risk. Not suitable for conservative portfolios. |
Insolation Energy is a highly speculative stock. It is best suited for those who can stomach extreme volatility and understand its complex history.
FAQs
Is Insolation Energy a good buy?
Insolation Energy is a very high-risk investment. Its return to profit is positive, but its collapsing sales, extreme valuation, and intense competition make it unsuitable for most investors. Only aggressive speculators should consider it.
Why is the Isolation Energy share falling?
The stock has faced pressure due to a 50% year-on-year decline in revenue for FY2025, despite a profit increase. This suggests the company may be sacrificing top-line growth for short-term bottom-line gains, which is not sustainable.
Which share is best in solar energy?
There is no single “best” solar share. Large, integrated players like Tata Power offer stability, while pure-play EPC companies like Waaree Renewables offer higher growth potential with higher risk. Insolation Energy is a much smaller, more speculative player.
What is the business of Insolation Energy Ltd?
Insolation Energy manufactures solar photovoltaic modules and provides EPC services for solar power projects across India.
Who is the owner of Insolation Energy Ltd?
The company is promoted by its founders, with promoters holding a 66.1% stake. It is not part of a large industrial group.
Final Verdict
Insolation Energy Ltd stands at a precarious juncture. Its return to profitability and a cleaner corporate structure are welcome developments. However, its collapsing revenue, extreme valuation multiples, and the brutal competitiveness of the solar sector present formidable hurdles. For all but the most speculative investors, this stock warrants extreme caution. Our 2026–2030 price targets (₹140–₹320) reflect a scenario where the company successfully executes its strategy, but the risk of failure or severe underperformance remains very high.
Sources
- Screener.in – Insolation Energy Ltd. Consolidated Financials (FY2025)
- Groww.in – Insolation Energy Fundamental Data
- Finology Ticker – SCRIP-306788 Company Profile & Ratios
- BSE Announcements – Business Update Filings (Dec 2025)
