Insolare Energy Annual Report | Balance Sheet | Financials | Revenue

Insolare Energy Limited Consolidated Balance Sheet (Rs. In Lakhs)

Particular	31-03-2025	31-03-2024
Non- Current assets
Property, Plant and Equipment	3,846.35	1,159.41
Right-of-use assets	275.51	43.51
Capital work-in-progress	-	-
Goodwill on consolidation	464.72	-
Investments	5.55	5.00
Other financial assets	5,562.50	2,242.26
Deferred tax assets (net)	-	188.94
Other non-current assets	46.73	-
Current assets
Inventories	4,025.28	397.84
Trade receivables	5,937.47	2,681.06
Cash and cash equivalents	588.24	1,890.81
Bank balances other than above	2,700.17	2,259.13
Loans	11.00	17.53
Other financial assets	13,953.33	6,981.92
Current tax assets	184.85	-
Other current assets	3,771.98	1.391.29
Total Assets	41,473.66	19,258.81
Equity
Equity Share Capital	147.13	127.77
Other Equity	19,373.44	8,893.49
Non-current liabilities
Borrowings	2,467.15	2,182.18
Lease liabilities	237.75	30.77
Long term provisions	180.37	100.15
Deferred tax liabilities	163.42	-
Current liabilities
Borrowings	7,115.33	3,025.23
Lease liabilities	48.67	11.77
Total outstanding dues of micro and small enterprises	28.87	69.86
Total outstanding dues other than above	7,829.29	2,096.79
Other financial liabilities	321.98	374.01
Current tax liabilities (net)	-	126.58
Short term provisions	63.34	28.09
Other current liabilities	3,496.96	2.192.12
Total equity and liabilities	19,258.81	7,084.75

Insolare Energy Limited Consolidated Profit & Loss (Rs. In Lakhs)

Particulars	31-03-2025	31-03-2024
Revenue from operations	43,838.71	16,268.15
Other Income	306.18	78.11
Total income	44,144.89	16,346.26
Expenses
Cost of materials consumed	37,068.93	12,258.60
Change in inventories of finished goods and work-in-progress	(2,609.94)	535.18
Employee benefit expense	3,550.28	1,481.02
Finance cost	1,139.70	427.56
Depreciation and amortization expense	284.59	109.85
Other expenses	2,396.07	1,100.54
Total expenses	41,829.64	15,912.76
Profit Before Tax	2,315.25	433.50
Current tax	475.01	225.00
Short term provision for earlier years	26.47	-
Deferred tax	108.98	(111.15)
Profit for the year	1,704.78	319.65
Other Comprehensive Income (OCI)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of the defined benefit plans	(25.49)	(7.38)
Income tax relating to above	6.42	1.86
Total other comprehensive income for the year	(19.08)	(5.53)
Total Comprehensive Income for the year	1,685.71	314.13
Earnings per equity share (in Rs.)
Basic & diluted	130.18	37.10

Insolare Energy Limited Consolidated Cash Flow Statement (Rs. In Lakhs)

Particular	31-03-2025	31-03-2024
Cash Flow From Operating Activities
Net Profit Before Tax as per statement of profit and loss	2,315.25	433.50
Adjustments for:
Depreciation and amortisation expense	284.59	109.85
Profit/Loss on Sale of Asset	-	(3.95)
Re-measurement of defined benefit plans	(25.49)	(7.38)
Unwinding of Security Deposit	(17.75)	(0.93)
Finance Cost	1,139.70	427.56
Investments written off	5.90	-
Issue of sweat equity shares	497.84	-
Interest/Dividend received	(285.87)	(49.95)
Operating Profit before Working Capital Changes	3,914.16	908.69
Changes in Current Assets and Current Liabilities
(Increase)/ Decrease in Trade Receivables	(3,256.40)	(384.81)
(Increase)/ Decrease in Inventories	(3,627.45)	725.91
(Increase)/ Decrease in other financial assets, other current assets and balance with banks other than cash and cash equivalents	(13,088.99)	(10,250.78)
Increase/(Decrease) in Trade and other Payable, provisions, other financial liabilities and other current liabilities	7,005.05	1,662.87
Cash (used in) operations	(9,053.63)	(7,338.12)
Income tax paid	(820.92)	(174.31)
Net Cash generating from Operating Activities	(9,874.55)	(7,163.81)
Cash Flow From Investing Activities
Purchase of PPE (including capital work-in-progress)	(2,686.94)	(908.41)
Goodwill on Consolidation	(464.72)	-
Sale proceed of Fixed Assets	-	1.26
Interest/Dividend received	285.87	49.95
Advance given for property	(46.73)	307.53
Purchase of Investments	(0.55)	-
Net Cash From Investing Activities	(2,913.07)	(549.67)
Cash Flow From Financing Activities
Proceeds from issue of share capital	8,764.50	6,762.75
Increase/ (Decrease) in Non-Current Borrowings	365.19	1,473.15
Increase /(Decrease) in Current Borrowings	4,090.10	1,804.30
Lease payment	(35.19)	(17.15)
Issue of sweat equity shares	(497.84)	-
Finance Cost excluding finance cost on lease liabilities	(1,101.73)	(423.13)
Net Cash From Financing Activities	11,585.05	9,599.92
Net Increase/(Decrease) in Cash and Cash Equivalents	(1,202.57)	1,886.44
Opening balance of cash and cash equivalents	1,890.81	4.36
Closing balance of cash and cash equivalents	688.24	1,890.81

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company earned a net profit before tax of ₹2,315.25 lakhs in FY 2025, compared to ₹433.50 lakhs in FY 2024. After adjustments for non-cash and finance costs like depreciation (₹284.59 lakhs), finance cost (₹1,139.70 lakhs), and issue of sweat equity (₹497.84 lakhs), and deducting interest/dividend income (₹285.87 lakhs), the operating profit before working capital changes rose sharply to ₹3,914.16 lakhs, compared to ₹908.69 lakhs last year.

However, large increases in trade receivables (₹3,256.40 lakhs), inventories (₹3,627.45 lakhs), and other assets (₹13,088.99 lakhs) pulled down cash flow. Although trade payables and liabilities increased by ₹7,005.05 lakhs, it wasn’t enough to offset the impact. As a result, the company reported a net operating cash outflow of ₹9,874.55 lakhs in FY 2025, worse than the ₹7,163.81 lakhs outflow in FY 2024. This shows that despite higher profits, heavy working capital requirements drained cash.

Cash Flow from Investing Activities

In FY 2025, the company spent ₹2,686.94 lakhs on property, plant & equipment (PPE), and had ₹464.72 lakhs of goodwill on consolidation. It also gave advances for property (₹46.73 lakhs) and purchased minor investments (₹0.55 lakhs). On the inflow side, it earned ₹285.87 lakhs as interest/dividend. With higher capex, the net investing cash outflow was ₹2,913.07 lakhs, compared to ₹549.67 lakhs outflow last year. This shows higher investment in assets and expansion.

Cash Flow from Financing Activities

The company raised ₹8,764.50 lakhs from issue of share capital, along with ₹365.19 lakhs in non-current borrowings and ₹4,090.10 lakhs in current borrowings. On the outflow side, it paid lease rentals (₹35.19 lakhs), finance cost (₹1,101.73 lakhs), and accounted for sweat equity issue (₹497.84 lakhs). Overall, the company generated a strong net financing inflow of ₹11,585.05 lakhs in FY 2025, compared to ₹9,599.92 lakhs in FY 2024. This shows financing activities are the major source of cash for the company.

Net Cash Flow & Closing Balance

After combining all activities, the company reported a net decrease of ₹1,202.57 lakhs in cash during FY 2025, whereas in FY 2024 it had an increase of ₹1,886.44 lakhs. The closing cash balance fell to ₹688.24 lakhs in 2025, down from ₹1,890.81 lakhs last year.

Insolare Energy Limited Financial Ratios

Particular	31-03-2025	31-03-2024
Current Ratio	1.63	1.97
Debt Equity Ratio	0.46	0.58
Debt Service Coverage Ratio	1.41	0.81
Return on Equity Ratio	11.23%	5.85%
Inventory Turnover Ratio	21.65	16.82
Trade receivable Turnover Ratio	9.97	6.54
Trade Payable Turnover Ratio	7.39	5.78
Net Capital Turnover Ratio	3.73	2.11
Net Profit Ratio	3.70%	1.97%
Return on Capital Employed Ratio	11.59%	6.06%

Summary of the financial ratio for the years 2025 and 2024:

Current Ratio (2025: 1.63 | 2024: 1.97)
The current ratio has slightly decreased, meaning the company’s ability to cover short-term liabilities with short-term assets has reduced. However, it is still above 1, which shows a comfortable liquidity position.

Debt-Equity Ratio (2025: 0.46 | 2024: 0.58)
The ratio has improved, indicating the company is relying less on borrowed funds compared to last year. This strengthens the balance sheet and reduces financial risk.

Debt Service Coverage Ratio (2025: 1.41 | 2024: 0.81)
DSCR has improved significantly. In 2025, the company generates enough earnings to comfortably meet its debt obligations, unlike last year when it was relatively weak.

Return on Equity (2025: 11.23% | 2024: 5.85%)
ROE has nearly doubled, which means the company is giving better returns to shareholders and is more efficient in using equity capital.

Inventory Turnover Ratio (2025: 21.65 | 2024: 16.82)
The ratio has improved, showing that the company is selling and replenishing inventory faster. This indicates better demand and efficient stock management.

Trade Receivable Turnover Ratio (2025: 9.97 | 2024: 6.54)
This ratio has increased, meaning the company is collecting payments from customers more quickly than last year. Faster collections improve cash flow and reduce credit risk.

Trade Payable Turnover Ratio (2025: 7.39 | 2024: 5.78)
The ratio has gone up, which suggests the company is paying its suppliers faster. While this improves supplier relations, it may put some pressure on cash if not managed carefully.

Net Capital Turnover Ratio (2025: 3.73 | 2024: 2.11)
The sharp improvement indicates that the company is using its capital more effectively to generate sales. This shows better operational efficiency.

Net Profit Ratio (2025: 3.70% | 2024: 1.97%)
Profitability has almost doubled, meaning the company is keeping more profit out of its revenue compared to last year. This is a strong sign of improved cost control and margins.

Return on Capital Employed (2025: 11.59% | 2024: 6.06%)
ROCE has improved significantly, which means the company is using both debt and equity capital more efficiently to generate profits.