Business Update of Onix Renewables

Document Summary

ONIX Renewable is an integrated clean energy platform operating across manufacturing, EPC (Engineering, Procurement & Construction), and IPP (Independent Power Producer) verticals. The company's business segments include EPC (Solar & Wind), IPP (Power Producer), Solar Module Manufacturing, and Solar Cell Manufacturing. The current share price is ₹13,000 per share, with an implied valuation of ₹3,250 Crore. The IPO filing is expected in 3 months.

Detailed Business Model ONIX Renewable is building an integrated and future-ready platform in India's renewable energy sector with a strategic approach spanning manufacturing, EPC, asset ownership, and emerging clean-tech areas like energy storage, designed to deliver sustainable growth, margin resilience, and long-term returns.

EPC (Engineering, Procurement & Construction) and PM-KUSUM Projects ONIX Renewable has a robust order book of ₹15,600 crore. The pipeline is expanding rapidly across EPC, PM-KUSUM, and manufacturing-linked projects. The company has an in-house EPC division offering design, engineering, procurement, and commissioning services. Project capabilities include ground-mounted, rooftop, and hybrid (solar + storage) systems. The revenue model is based on fixed-margin EPC contracts with potential for margin expansion through operational efficiency. The company has an execution track record of executing large-scale (GW-level) solar power projects. ONIX is involved in PM-KUSUM Projects, a flagship Government of India scheme to promote solar in agriculture. A 250 MW project in Gujarat is under execution and expected to be fully operational by Q1 FY2026, backed by Power Purchase Agreements (PPAs) and subsidies. A 2,500 MW project in Maharashtra has commenced the procurement process for the next phase. Strategic advantages include low credit risk due to government backing, subsidy-supported returns, and long-term recurring income.

Solar Cell and Module Manufacturing (Phased Expansion) Planned capacity includes 2,400 MW of solar PV modules and 1,200 MW of solar cells. Implementation is phased to reduce upfront capital investment and ensure smoother cash flow management. The first phase is underway with 100 acres of land acquired, civil works in progress, and procurement commenced. Strategic benefits include managed margins, reduced supply chain dependency through backward integration, alignment with the Government's PLI scheme and "Make in India" initiative, and enhanced competitiveness across EPC and IPP projects.

IPP (Independent Power Producer) – Long-Term Asset Ownership The current portfolio includes a 3 GW Independent Power Producer (IPP) portfolio under development, expected to be operational within 18 months. The revenue model is based on Power Purchase Agreements (PPAs) with government and private sector customers, offering predictable, annuity-style cash flows, and high earnings visibility over a 25-year asset life. The strategy involves using internal EPC and module supply to build high-return projects and exploring green bonds and infrastructure investment trust (InvIT) options for monetization.

Battery Energy Storage Systems (BESS) – Future-Oriented Segment ONIX is working on a 300 MW BESS project under execution, supporting round-the-clock renewable power supply and hybrid tender opportunities. The ONIX strategy involves early-stage integration of storage in project planning and partnerships with technology firms. The value proposition enhances project bankability and helps meet peak-hour demand effectively.

Operations and Maintenance (O&M) ONIX offers services including real-time performance monitoring, preventive and corrective maintenance. The revenue model is based on long-term Annual Maintenance Contracts (AMCs), providing a high-margin, recurring revenue model with minimal capital expenditure.

Why Invest in ONIX Renewable? The company offers end-to-end value chain coverage from manufacturing to generation. Projects are underway with land already secured and civil works progressing. It has a modular, scalable growth model, is aligned with key government policies (PLI, PM-KUSUM, and net-zero roadmap), and provides long-term, recurring revenue potential with high visibility.

Marquee Investors ONIX Renewable is backed by reputed investors, reinforcing the company's credibility, governance, and long-term growth trajectory. Key investors include Ashish Kacholiya, Al Maha Investment Fund – PCC, Ebisu Global Opportunities Fund Ltd, Devansh Trademart LLP, Bengal Finance and Investment, and Rekha Gunavanth (Gunaji).

Key Clients and Partnerships ONIX serves a diversified portfolio of marquee clients, including NHPC, NTPC, PGVCL, and GETCO, as well as corporate groups like JSW Group, WAAREE Group, Torrent Power, and the Hinduja Group. These relationships span utility-scale EPC projects, solar module and cell supply, grid-connected assets, and renewable infrastructure development.

Financial Performance Highlights The company is projected to achieve a revenue of ₹3,000 crore in FY2025-26. With an estimated EBITDA of ₹720 crore and a PAT of ₹400 crore, the company anticipates maintaining healthy profit margins. At a share price of ₹13,000, the estimated P/E ratio stands at 8.1x. In FY2024-25 (Actual), the Revenue from Operations was ₹1,050 crore, EBITDA was ₹160 crore, and PAT was ₹110 crore.

Corporate Actions ONIX Renewable has undertaken key corporate actions, including a bonus issue to enhance investor confidence and equity participation. The company is actively working toward a public listing, with the filing expected in the near term. It has attracted several marquee investors and strategic institutions during its pre-IPO funding rounds.

Risk Factors (Summary) Risks include project execution delays in large-scale EPC or IPP projects, policy changes related to government schemes, input cost volatility affecting margins, high capital intensity, and IPO market risk dependent on market conditions and investor sentiment.

Conclusion & Outlook ONIX Renewable stands at an inflection point in India's clean energy transition and is well-positioned to capitalize on the sector's growth momentum. Backed by a ₹15,600 crore order book, marquee investors, and expanding capacity, ONIX offers strong earnings visibility and an attractive valuation ahead of its IPO. The stock is currently available at a reasonable valuation compared to sector peers, offering long-term investors a compelling opportunity to participate in India's renewable energy growth story.