Solar91 Cleantech Annual Reports, Balance Sheet and Financials

Solar91 Cleantech Limited Consolidated Balance Sheet (Rs. in crores).

Solar91 Cleantech Limited Consolidated Profit & Loss Statement (Rs. in crores).

Solar91 Cleantech Limited Consolidated Cash Flow Statement (Rs. in crores).

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

Cash Flow from Operating Activities
The operating performance shows a mixed trend. Although profit before tax increased significantly to ₹11.29 crore in FY2025 from ₹3.14 crore in FY2024, the actual cash flow from operations turned negative at ₹-8.19 crore compared to a positive ₹5.92 crore last year. This divergence indicates heavy working capital absorption. Key contributors include a sharp increase in inventories (₹11.46 crore) and trade receivables (₹3.40 crore), suggesting funds are tied up in stock and pending collections. Additionally, other current liabilities decreased substantially (₹-5.69 crore), further reducing cash availability. Despite improvements in trade payables and short-term provisions, the overall working capital movement weakened liquidity. Higher tax outflow (₹5.64 crore vs ₹0.84 crore) also contributed to the negative operating cash flow, indicating that profitability is not translating effectively into cash generation.

Cash Flow from Investing Activities
Investing activities show a substantial outflow of ₹-56.66 crore in FY2025 compared to ₹-3.53 crore in FY2024, indicating aggressive capital expenditure. The company invested heavily in asset purchases (₹27.58 crore) and capital work-in-progress (₹24.56 crore), signaling expansion or capacity-building initiatives. Additional spending on non-current assets (₹4.43 crore) further supports this growth phase. While such investments may drive future revenue, they have significantly strained current cash reserves, reflecting a strong expansion strategy but also increasing financial risk if returns are delayed.

Cash Flow from Financing Activities
Financing activities provided strong support, generating ₹85.73 crore in FY2025 compared to just ₹3.39 crore in FY2024. The company relied heavily on borrowings (₹67.07 crore), indicating increased leverage to fund expansion. Additionally, equity infusion through share capital (₹15.06 crore) and share premium (₹4.96 crore) strengthened the capital base. However, related expenses such as capital raising and RHP costs slightly offset inflows. Overall, financing inflows comfortably covered the deficits from operating and investing activities, highlighting dependence on external funding.

Net Increase/decrease in Cash & Cash equivalents
Despite negative operating and heavy investing cash flows, the company achieved a net increase in cash of ₹20.87 crore in FY2025, significantly higher than ₹5.78 crore in FY2024. This was entirely driven by strong financing inflows. The closing cash balance rose to ₹27.81 crore from ₹6.94 crore, improving liquidity in the short term. However, the sustainability of this increase depends on the company’s ability to convert its growing profits into positive operating cash flows and manage its working capital efficiently in the future

Financial ratios of Solar91 Cleantech Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio
The current ratio improved to 2.61 in FY2025 from 1.93 in FY2024, indicating a stronger short-term liquidity position. The company now holds significantly more current assets relative to its current liabilities, suggesting improved ability to meet short-term obligations. However, an excessively high ratio may also point toward inefficient utilization of current assets, particularly in light of rising inventories observed earlier.

Debt Equity Ratio
The debt-equity ratio increased to 2.69 from 2.33, reflecting higher reliance on borrowed funds. This aligns with the substantial borrowings seen in the cash flow statement. While leverage can enhance growth, the rising ratio indicates increased financial risk and dependence on external financing, which could pressure future profitability due to interest obligations.

Debt Service Coverage Ratio
The debt service coverage ratio improved to 11.24 from 9.12, showing a strong capacity to service debt obligations. Despite increased borrowings, the company’s earnings are sufficient to comfortably cover interest and principal repayments. This indicates financial stability in the short term, though sustainability will depend on consistent earnings growth.

Return on Equity
Return on equity declined sharply to 0.20 from 0.51, indicating reduced returns for shareholders. Even though profits increased, the significant rise in equity capital diluted returns. This suggests that the company has not yet been able to efficiently deploy the additional equity funds to generate proportional earnings.

Inventory Turnover Ratio
The inventory turnover ratio decreased to 4.94 from 5.42, indicating slower movement of inventory. This aligns with the sharp increase in inventory levels and suggests possible overstocking or slower sales. Lower efficiency in inventory management can tie up working capital and negatively impact liquidity.

Trade Account Receivables Ratio
The receivables turnover ratio improved to 21.34 from 17.68, indicating faster collection of receivables. This is a positive sign of improved credit management and efficient collection processes, helping partially offset the working capital pressures.

Trade Account Payables Ratio
The payables turnover ratio dropped drastically to 14.54 from 143.80, indicating the company is taking significantly longer to pay its suppliers. While this may temporarily ease cash flow pressures, it could strain supplier relationships and may not be sustainable in the long term.

Net Capital Turnover Ratio
The net capital turnover ratio declined to 2.25 from 4.42, suggesting reduced efficiency in utilizing capital to generate revenue. This may be due to the recent increase in capital employed not yet translating into proportional sales growth, reflecting a transitional phase of expansion.

Net Profit Ratio
The net profit ratio improved slightly to 0.07 from 0.06, indicating marginal improvement in profitability. While the increase is positive, margins remain relatively low, suggesting that cost pressures or pricing constraints still limit overall profitability.

Return on Capital Employed
Return on capital employed decreased significantly to 0.17 from 0.47, indicating lower efficiency in generating returns from total capital employed. This reflects the impact of large capital investments that have not yet yielded proportional operating profits.

Return on Investment
Return on investment improved to 0.10 from 0.01, showing better returns from investments compared to the previous year. Although still modest, this improvement suggests that some of the company’s investments are beginning to generate returns, but overall efficiency remains an area for improvement.