Onix Renewable Limited

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As Onix Renewables Limited approaches its Initial Public Offering (IPO), the company is operating within one of the most aggressive growth periods in the history of the Indian energy sector. Below is an analysis of the industry landscape and market opportunities.

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Industry Landscape: The 500 GW Transition

India has emerged as the world's third-largest solar energy producer, trailing only China and the USA. This shift is governed by a national mandate to achieve 500 GW of non-fossil fuel capacity by 2030, as reiterated in the Ministry of New and Renewable Energy (MNRE) status reports from early 2026.

1. Shift Toward Hybrid and Firm Power

The industry has moved beyond "plain vanilla" solar projects. According to analysis by JMK Research, the landscape in 2025 and 2026 is dominated by Wind-Solar Hybrid tenders. These projects solve the intermittency problem by combining wind energy (which peaks at night) with solar (which peaks during the day). Onix is strategically positioned here, having executed some of India's fastest hybrid projects—such as a 52 MW project in just four months (Source: ET Energy World / Onix Press Assets).

2. The Manufacturing Pivot (ALMM & PLI)

A critical feature of the current landscape is the Approved List of Models and Manufacturers (ALMM). As of June 2026, regulations have tightened to mandate domestically manufactured solar cells for government-backed projects. India Ratings and Research (Ind-Ra) notes that this has triggered a "manufacturing gold rush." Onix Renewables is responding by expanding its capacity from a 100 MW base toward a targeted 1,200 MW to 5,000 MW range to insulate its supply chain from global price volatility (Source: Sharescart Unlisted Market Analysis).

3. Decentralized Energy Growth

The PM-Surya Ghar: Muft Bijli Yojana has fundamentally altered the rooftop solar landscape. Mercom India Research reports that rooftop solar installations saw a massive 123% year-over-year jump in 2025, reaching 7.1 GW. This decentralization provides a massive tailwind for EPC firms like Onix that have the logistical capability to manage distributed projects across states like Gujarat and Maharashtra.

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Market Opportunity: The $190 Billion Gap

To meet 2030 targets, India requires an investment of approximately $190 billion to $215 billion in renewable capacity alone (Source: IBEF / ICRA). For Onix Renewables, this translates into three specific high-value opportunities:

1. Commercial & Industrial (C&I) Expansion

Rising grid tariffs for industrial consumers have made "Open Access" solar a commercial necessity rather than a CSR initiative. Deloitte’s 2026 Renewable Energy Outlook identifies C&I as a key growth driver, with corporations seeking long-term Power Purchase Agreements (PPAs) to hedge against energy inflation. Onix’s focus on solar parks for industrial clients directly taps into this "captive power" demand.

2. State-Specific Large-Scale Tenders

States like Maharashtra have launched massive initiatives such as MSKVY 2.0, aimed at solarizing agricultural feeders. Onix recently embarked on a 1,959 MW solar project under this scheme, providing high revenue visibility. As per UnlistedZone, the company sits on an unexecuted order book of roughly ₹14,000 crore to ₹15,600 crore as of early 2026, which is more than 10x its FY25 revenue—a rare ratio in the EPC sector.

3. Energy Storage and Green Hydrogen

The next frontier is Battery Energy Storage Systems (BESS). As grid curtailment becomes a risk in high-irradiance states like Rajasthan and Gujarat, the opportunity for "firm" renewable power (solar + storage) is expanding. Onix has signaled its intent to move into Green Hydrogen and Ammonia, aligning with the National Green Hydrogen Mission which targets 5 MMT of production by 2030 (Source: Vibrant Gujarat Global Summit MOU).

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Strategic Summary for Investors

Opportunity Metric	Data Point	Source
National Target	500 GW by 2030	MNRE / COP26 Mandate
Order Book Size	~₹15,600 Crore	UnlistedZone / DRHP Filings
Rooftop Growth	123% YoY (2025)	Mercom India Research
Sector Valuation	35x - 45x P/E (Industry Avg)	Sharescart Analysis

The leadership of Onix Renewables Limited is characterized by a closely-held family structure primarily led by the Savaliya family. As the company transitions toward its ₹1,000–1,200 crore IPO, the management has been restructured to include professional directors to meet SEBI's corporate governance standards.

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Promoters and Shareholding

The company is fundamentally promoter-driven, with the Savaliya family holding a significant majority of the equity.

• Key Promoters: * Mr. Divyesh Mansukhlal Savaliya (Chairman & Managing Director)

  • Mr. Mansukh Chanabhai Savalia

  • Mr. Divyeshkumar Savaliya

• Shareholding Pattern (Pre-IPO):

  • Founders/Promoters: ~59.49%

  • Angel Investors: ~15.86%

  • Enterprises: ~7.49%

  • Institutional Funds: ~6.71%

• Net Worth: The combined net worth of the founders was estimated at approximately ₹3,560 crore as of June 2025.

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Key Management Personnel (KMP)

The day-to-day operations are led by technical and business experts with deep roots in the Gujarat renewable energy ecosystem.

1. Mr. Divyesh Savaliya (Chairman & Managing Director)

The visionary behind the group, born in Rajkot. He holds a degree in Electrical & Electronics Engineering and an MBA in Business Management. He has been the primary driver of the company’s "concept-to-commissioning" strategy and was instrumental in signing the ₹19,000 crore MoU with the Gujarat Government.

2. Mr. Piyush Patel (Chief Executive Officer)

Responsible for the operational scaling of the EPC and manufacturing arms. He oversees the expansion of solar module production from the current 200 MW facility toward the 2,400 MW target for 2026.

3. Mr. Harpreet Singh (Managing Director)

Focuses on large-scale utility projects and institutional partnerships. He plays a key role in the execution of the 1,959 MW Maharashtra MSKVY 2.0 project.

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Board of Directors

To prepare for the IPO and the acquisition of Onix Solar Energy Limited (formerly ABC Gas International), the board has been expanded to include professional and independent voices.

Name	Position	Focus Area
Divyesh Savaliya	Chairman & MD	Strategy & Vision
Nikhil Savaliya	Professional Executive Director	Supply Chain & Manufacturing
Khilan Savaliya	Non-Executive Director	Corporate Restructuring
Yesha Shah	Independent Chairman (Onix Solar)	Governance & Compliance

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Corporate Governance & IPO Readiness

A significant part of the management's recent activity involves Backward Integration. By acquiring a controlling 74.59% stake in the BSE-listed Onix Solar Energy Limited, the promoters are moving manufacturing (Mono PERC and TOPCON modules) under a unified corporate umbrella. This move is designed to enhance transparency and supply chain security—key metrics that institutional investors look for during an IPO roadshow.

Onix Renewables Limited has demonstrated exceptional financial scaling over the last three fiscal years, transitioning from a mid-sized EPC firm to a billion-crore revenue entity. The following analysis is based on the company's audited financial results for FY 2024–25 and recent pre-IPO filings.

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1. Revenue and Profitability Surge

The fiscal year 2024–25 (FY25) was a transformative period for the company, marked by nearly 186% year-on-year revenue growth.

Metric	FY 2023–24	FY 2024–25	Growth (YoY)
Total Revenue	₹351.6 Crore	₹1,001.3 Crore	+185.8%
EBITDA	₹58.3 Crore	₹164.5 Crore	+182.2%
Net Profit (PAT)	₹39.4 Crore	₹114.8 Crore	+191.4%
EBITDA Margin	16.6%	16.4%	Stable

Analysis: The surge is primarily attributed to the timely execution of large-scale projects under the PM-KUSUM and MSKVY 2.0 schemes. Despite the rapid scale-up, the company has successfully maintained a healthy EBITDA margin of ~16%, indicating strong operational control.

(Sources: Zee Business Branded Reports, The Wire Audited Results Publication, Oct 2025)

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2. Order Book & Revenue Visibility

The strongest financial pillar for Onix is its unexecuted order book, which provides multi-year revenue certainty rarely seen in project-based companies.

• Order Book Size: Estimated between ₹13,000 Crore and ₹15,600 Crore as of early 2026.

• Revenue Visibility: This represents roughly 13x to 15x its FY25 revenue, suggesting a significant ramp-up in the execution pipeline for FY26 and FY27.

• Key Projects: Includes a landmark 1,959 MW solar project in Maharashtra and hybrid projects across Gujarat and Rajasthan.

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3. Solvency and Asset Base

Onix has maintained a manageable debt profile while aggressively expanding its asset base to support backward integration into manufacturing.

• Total Assets: Increased to ₹1,073 Crore in FY25 (up from ₹496 Crore in FY24).

• Borrowings: Rose to ₹173 Crore to fund capacity expansion, but remains comfortable relative to the equity base of ₹705 Crore (Reserves + Share Capital).

• Current Credit Rating: Upgraded to IVR BBB+ / Stable for long-term bank facilities and IVR A2 for short-term facilities, reflecting improved liquidity and debt protection metrics.

  (Sources: Infomerics Ratings Rationale, June 2025; RR Finance Fundamental Analysis)

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4. Strategic Investment & Acquisitions

The management is utilizing its cash flows and debt for strategic backward integration:

• Acquisition of OSEL: Acquired a majority stake in ABC Gas International (now Onix Solar Energy Ltd), providing a listed vehicle for its module manufacturing arm.

• Manufacturing Expansion: Investing to scale solar module production from 200 MW toward a massive 5,000 MW (5 GW) capacity by the end of 2026.

• Inter-Corporate Support: Deployed ₹49.15 Crore as a strategic loan to Vikran Engineering to strengthen supply chain partnerships.

  (Source: TradeUnlisted, Jan 2026)

Onix Renewables Limited has demonstrated exceptional financial scaling over the last three fiscal years, transitioning from a mid-sized EPC firm to a billion-crore revenue entity. The following analysis is based on the company's audited financial results for FY 2024–25 and recent pre-IPO filings.

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1. Revenue and Profitability Surge

The fiscal year 2024–25 (FY25) was a transformative period for the company, marked by nearly 186% year-on-year revenue growth.

Metric	FY 2023–24	FY 2024–25	Growth (YoY)
Total Revenue	₹351.6 Crore	₹1,001.3 Crore	+185.8%
EBITDA	₹58.3 Crore	₹164.5 Crore	+182.2%
Net Profit (PAT)	₹39.4 Crore	₹114.8 Crore	+191.4%
EBITDA Margin	16.6%	16.4%	Stable

Analysis: The surge is primarily attributed to the timely execution of large-scale projects under the PM-KUSUM and MSKVY 2.0 schemes. Despite the rapid scale-up, the company has successfully maintained a healthy EBITDA margin of ~16%, indicating strong operational control.

(Sources: Zee Business Branded Reports, The Wire Audited Results Publication, Oct 2025)

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2. Order Book & Revenue Visibility

The strongest financial pillar for Onix is its unexecuted order book, which provides multi-year revenue certainty rarely seen in project-based companies.

• Order Book Size: Estimated between ₹13,000 Crore and ₹15,600 Crore as of early 2026.

• Revenue Visibility: This represents roughly 13x to 15x its FY25 revenue, suggesting a significant ramp-up in the execution pipeline for FY26 and FY27.

• Key Projects: Includes a landmark 1,959 MW solar project in Maharashtra and hybrid projects across Gujarat and Rajasthan.

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3. Solvency and Asset Base

Onix has maintained a manageable debt profile while aggressively expanding its asset base to support backward integration into manufacturing.

• Total Assets: Increased to ₹1,073 Crore in FY25 (up from ₹496 Crore in FY24).

• Borrowings: Rose to ₹173 Crore to fund capacity expansion, but remains comfortable relative to the equity base of ₹705 Crore (Reserves + Share Capital).

• Current Credit Rating: Upgraded to IVR BBB+ / Stable for long-term bank facilities and IVR A2 for short-term facilities, reflecting improved liquidity and debt protection metrics.

  (Sources: Infomerics Ratings Rationale, June 2025; RR Finance Fundamental Analysis)

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4. Strategic Investment & Acquisitions

The management is utilizing its cash flows and debt for strategic backward integration:

• Acquisition of OSEL: Acquired a majority stake in ABC Gas International (now Onix Solar Energy Ltd), providing a listed vehicle for its module manufacturing arm.

• Manufacturing Expansion: Investing to scale solar module production from 200 MW toward a massive 5,000 MW (5 GW) capacity by the end of 2026.

• Inter-Corporate Support: Deployed ₹49.15 Crore as a strategic loan to Vikran Engineering to strengthen supply chain partnerships.

  (Source: TradeUnlisted, Jan 2026)

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5. Financial Risks to Consider

While the growth is robust, investors should monitor:

1. Working Capital Intensity: As an EPC player, the company faces high working capital needs. Trade payables stood at ~₹107 Crore in FY25.

2. Concentration Risk: A significant portion (~30-40%) of the order book is tied to specific SPVs and government schemes (PM-KUSUM), making it sensitive to policy shifts.

3. Group Exposure: Ratings agencies have flagged "significant loans and advances to group companies" as a potential constraint on the credit profile.

   (Source: Infomerics Rating Sensitivity Analysis, 2025)

Analyzing the risk factors for Onix Renewable Limited (and its listed entity Onix Solar Energy Limited) involves looking at both general industry challenges and company-specific regulatory and financial hurdles.

1. Legal and Regulatory Risks

• Forged Bank Guarantee Allegations: In early 2026, the Economic Offences Wing (EOW) in Mumbai investigated allegations of forged bank guarantees (estimated at ₹122.85 crore) submitted to secure Power Purchase Agreements (PPAs) with MSEDCL. While the company clarified it was not named as a primary accused, any investigation into associated third-party entities poses a significant reputational and legal risk.

• Policy Dependency: The business model relies heavily on government schemes such as PM-KUSUM and PLI (Production Linked Incentives). Changes in central or state-specific renewable energy policies, or delays in subsidy disbursements, can stall project execution.

• Compliance Hurdles: Solar projects require complex approvals from DISCOMs and state regulators. Non-compliance with grid integration standards or net metering rules can lead to project delays or even termination.

2. Financial and Operational Risks

• Revenue Volatility: The company reported a massive 72% year-over-year revenue decline in Q3 FY26 (falling to ₹161 million from ₹573 million), indicating vulnerability to market cycles or project-specific disruptions.

• High Capital Intensity: EPC (Engineering, Procurement, and Construction) and manufacturing businesses require significant upfront working capital. The company recently launched a ₹250 crore Rights Issue to address these needs, but sustained cash flow issues could limit growth.

• Concentrated Order Book: A significant portion of the order book is tied to specific entities (e.g., NOPL Pace Green Energy). Any financial distress or project cancellations by these major clients could severely impact the bottom line.

• Asset Utilization: There is a noted need for improvement in asset employment efficiency, as the company scales its ambitious plans for solar cell and module manufacturing.

3. Execution and Market Risks

• Project Delays: Delays in land acquisition, part arrivals (panels/inverters), or securing permits are common in the solar sector and can lead to liquidated damages or cost overruns.

• Raw Material Price Fluctuations: As a manufacturer and EPC player, Onix is exposed to the volatility of global prices for solar cells, polysilicon, and aluminum.

• Intense Competition: The Indian solar market is increasingly crowded with large-scale players like Tata Power and Adani Green, who may have lower capital costs and better control over the supply chain.

4. Technical Risks

• Quality of Components: Using substandard mounting structures or inverters can lead to system breakdowns, high maintenance costs, and warranty claims that drain profit margins.

• Workforce Shortage: The rapid expansion into green hydrogen and advanced solar manufacturing requires a highly skilled workforce, the shortage of which is a persistent industry-wide risk.

This report is authored by Dr. Shishir Gupta, a distinguished Investment Banker and Global Startup Expert with over 25 years of experience in the venture capital and private equity landscape. As the Founder and CEO of StartupLanes, Dr. Gupta has personally facilitated numerous high-value unlisted share transactions and pre-IPO placements across 40+ countries. His deep domain expertise in valuation modeling, market analysis, and deal structuring ensures that this research is backed by institutional-grade insights and a profound understanding of the Indian and global unlisted equity markets.

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