India’s solar energy sector is witnessing nothing short of a revolution. With a strong push by solid government initiatives like the 500 GW renewable energy target by 2030, the Production Linked Incentive (PLI) scheme, and a national push for net-zero by 2070 the sector is foreseeing substantial future growth.
Amid this fast-growing space, two less known underdog companies have posted strong compounded net profit growth of 143% and 160% over the last three financial years. Their healthy FY25 performance, strategic expansions, and alignment with global trends have boosted investor confidence.
Let us dive into these two stocks and try to find out more about their pros and cons.
Australian Premium Solar (India) Ltd
Incorporated in 2013, Australian Premium Solar (India) Ltd specializes in high-efficiency monocrystalline and polycrystalline solar panels and offers engineering, procurement, and construction (EPC) services for residential, agricultural, and commercial clients.
With a market cap of Rs 932 cr the company has serviced 15,000+ customers, of which 12,000+ have been installed on roofs of residential buildings and 2500+ with solar pumps for agriculture, in the last financial year.
The company was listed on NSE in January 2024, when it raised Rs 28 cr through its IPO. This money was used for funding capital expenditure, to meet working capital requirement, general corporate purpose and to meet public issue expenses.
The company’s current ROCE (Return on Capital Employed) is 71%, which beats the industry median of 21% by a huge margin. In simple words, for every Rs 100 the company spends as capital, it makes a profit of Rs 71 on it.
Australian Premium Solar Ltd’s salessurged at a compounded growth rate of 64%, from Rs 98 cr in FY22 to Rs 433 cr in FY25.
The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew at a CAGR of a staggering 124%, from Rs 5 cr in FY22 to Rs 56 cr in FY25.
Talking about the Net Profits, the company saw its profits jump from Rs 3 cr in FY22 to Rs 39 cr in FY25, which is a compounded growth rate of 143% in 3 years.
Those are some solid financials that could grab attention quickly.
From its listing price of about Rs 150 in January 2024, the share price of Australian Premium Solar (India) Ltd jumped to its current price of Rs 472 (as of closing on 19th May 2025). That is a jump of 215% in about 16 months.
Rs 1 lac invested in the stock at listing would be around Rs 3.15 lacs today.
The stock trades at a price-to-earnings (PE) ratio of 24x, which is lower than the industry median of 50x. The 10-year median PE is however 62x while the industry median for the same period is 34x.
Company is building a 26,000 sq. meter facility, including new acquisitions and leases, which will be dedicated to TOPCon (Tunnel Oxide Passivated Contact) solar panels with a total capacity of 800 MW. The first 400 MW phase is expected to be operational by Q1FY26, with the remaining 400 MW becoming operational a year later.
Plus, the company aligns with India’s green agenda, particularly in underserved agricultural regions. Its focus on scalable, cost-effective solutions positions it to benefit from government subsidies and rising solar adoption.
Websol Energy System Ltd
Incorporated in 1990, Websol Energy System Ltd is engaged in the business of manufacturing photovoltaic crystalline solar cells and related modules in India.
With a market cap of Rs 6,400, the company specializes in the production of photovoltaic crystalline solar cells and related PV modules. Its products are used in both commercial and industrial Solar Energy panels in India and internationally.
The current ROCE for the company is 60%, while the industry median is about 21%. That is an enviable number without a doubt.
Let us take a look at the financials.
Websol’s sales have jumped from Rs 213 cr in FY22 to Rs 575 cr in FY25, logging in a compound growth of 39% in the last 3 financial years.
The EBITDA grew at a compound rate of a huge 113% from Rs 26 cr to Rs 253 cr between FY22 and FY25.
Coming to the net profits, Websol logged in 160% compound growth in profits from Rs 10 cr in FY22 to Rs 155 cr in FY25.
Websol’s share price jumped from Rs 98 in May 2022 to Rs 1,474 as of closing on 19th May 2025. That is a jump of 1,404%.
If one would have invested Rs 1 lac in the stock 3 years ago, it would have been over Rs 15 lacs today. In just 3 years!
The stock is currently trading at a PE of 41x while the industry median is 45x. The 10-year median PE for Websol is 11x and the industry median for the same period is 34x.
Websol’s numbers are powered by high-value contracts, like the 250 MW solar module supply deal with C.R.I. Pumps and a 100 MW solar cell order from Luminous, set for delivery by April 2026 which the company bagged recently. The company’s offerings meet the stringent global standards, driving exports to the premium markets. Plus, a new 600 MW solar cell line, slated for Q1 FY26, positions Websol in a better position to capitalise in growing demand.
Is the future really bright?
India’s solar energy sector industry is one of the fastest growing driven by global demand and expanding opportunities. Australian Premium Solar and Websol Energy System, both offering different advantages and challenges are making the most of this opportunity.
Australian Premium Solar provides steady growth due to its debt-free position clubbed with its capital efficiency and profit-making capability. Websol Energy System is also not far behind as it has demonstrated strong numbers for profits, stock price and ROCE and secured international deals promising potentially high returns.
Investors must weigh steady returns from Australian Premium Solar against riskier but more profitable options like Websol. The unpredictability of these solar stocks shaped by changes in policies and market trends, requires careful attention to cash flow patterns and policy changes. For now, adding these to thee watchlist sounds like a plan.
Disclaimer
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.