Rays Power Infra IPO

Rays Power Infra Limited IPO Strengths

Proven Execution Capabilities and Strong Track Record

Rays Power Infra Limited has established a formidable reputation by successfully executing and commissioning 50 renewable power projects with an aggregate capacity of 1,771.18 MWp. This demonstrated ability to deliver utility-scale projects on time reinforces its credibility and positions it as a trusted partner for both private and public sector clients, providing a significant competitive advantage in securing new contracts.

Robust and Scalable Asset-Light Business Model

The company operates primarily through asset-light models, including Co-Development and EPC services. This strategy allows Rays Power Infra Limited to minimize capital expenditure, enhance operational flexibility, and achieve rapid scalability without the burden of heavy asset ownership. This approach has contributed to its strong return ratios and a healthy balance sheet with low leverage.

Significant Revenue Visibility with a Strong Order Book

Rays Power Infra Limited boasts an exceptionally strong order book of ₹80,342.61 million as of July 2025, covering 30 contracted projects. This provides high revenue visibility for the coming years and reflects the market’s confidence in its execution capabilities. The order book has grown at a remarkable CAGR of 137.85% from FY2023 to FY2025.

Expertise in Land Acquisition and Grid Connectivity

The company possesses a critical competitive strength in its dedicated land acquisition team and proven expertise in securing contiguous, litigation-free land parcels. Furthermore, Rays Power Infra Limited has secured or is in the process of securing 2,300 MWp of grid connectivity approvals, a crucial and often challenging prerequisite for large-scale renewable energy projects.

Experienced Promoters and a Qualified Management Team

The company is led by promoters with strong educational backgrounds from premier institutions and over 13 years of domain experience. Their leadership, combined with a qualified and experienced management team, has been instrumental in navigating the complex renewable energy landscape and driving the company’s consistent growth and strategic direction.

Rays Power Infra Limited: More About the Company

Rays Power Infra Limited is a leading integrated player in the Indian renewable energy sector, specializing in providing end-to-end solutions with a primary focus on solar power. Incorporated in 2011, the company has cemented its position by executing projects across 13 states and 1 union territory. It operates through two synergistic business models that cater to the evolving needs of the market.

Core Business Models

• Co-Development Business: This model involves the initial development of solar power projects. Rays Power Infra undertakes critical activities such as land identification and aggregation, securing grid connectivity (from both State Transmission Utilities and Interstate Transmission Systems), and obtaining all necessary approvals. Once these milestones are achieved, the project is transferred to the developer through a Special Purpose Vehicle (SPV).

• Engineering, Procurement, and Construction (EPC) Business: Under this model, the company provides a comprehensive turnkey solution. This includes design, engineering, procurement of materials, construction, testing, and commissioning of the solar power project. This model contributes significantly to its revenue and leverages its project execution expertise.

Key Operational Strengths

• Land Acquisition Prowess: The company has a dedicated 40-member land acquisition team with deep knowledge of regional laws. It has a proven track record of acquiring over 20,000 acres of land for projects across India, which is a foundational enabler for timely project execution.

• Grid Connectivity Expertise: Securing grid connectivity is a major hurdle for renewable projects. As of July 31, 2025, the company has been granted or agreed to be granted 10 connectivity approvals totaling 2,300 MWp and has applied for an additional 3,565 MWp, providing a significant pipeline for future co-development and EPC projects.

• Diverse and Reputed Clientele: Rays Power Infra serves a mix of private sector developers like Serentica Renewables and Ampin Energy, as well as public sector undertakings like SJVN Green Energy and various municipal corporations.

Industry Outlook

The Indian renewable energy sector is poised for unprecedented growth, driven by the government’s ambitious target of achieving 500 GW of installed capacity from non-fossil fuels by 2030. Solar power is expected to be the cornerstone of this expansion.

• Massive Growth Potential: CRISIL Intelligence expects 170-180 GW of solar capacity to be added between fiscals 2026 and 2030, which is ~2.6 times the capacity added in the previous five-year period. The government plans to bid out 50 GW of renewable energy capacity annually until FY2028.

• Key Growth Drivers:

• Policy Support: Initiatives like the Production Linked Incentive (PLI) scheme and the Approved Models and Manufacturers List (ALMM) are boosting domestic manufacturing and creating a demand pipeline for locally sourced components.

• Rising Energy Demand: India’s growing electricity consumption, coupled with the cost-competitiveness of solar power, is a primary driver.

• Corporate Demand: Commercial and Industrial (C&I) consumers are increasingly adopting renewable energy to meet sustainability goals and reduce power costs, creating a robust market segment.

• New Avenues: Emerging areas like Wind-Solar Hybrid (WSH) projects, Firm and Dispatchable Renewable Energy (FDRE) coupled with storage, and the National Green Hydrogen Mission are opening new growth vectors, requiring significant solar capacity for integration.

This favorable outlook, supported by strong policy tailwinds and increasing investments, presents a multi-year growth opportunity for established and capable players like Rays Power Infra Limited.

How Will Rays Power Infra Limited Benefit

• Benefit from the massive ~2.6x increase in expected solar capacity additions (170-180 GW) between FY2026-2030, ensuring a sustained pipeline for its EPC and Co-Development services.

• Capitalize on the government’s annual bidding of 50 GW of RE capacity, providing consistent and large-scale project opportunities to leverage its execution capabilities.

• The implementation of ALMM norms will drive demand for domestically manufactured cells and modules, benefiting its strategic foray into 1.5 GW n-type TOPCon cell manufacturing.

• Tap into the growing C&I segment, which is adopting renewables at a rapid pace, and where the company already has a strong order book presence (64.39% from private customers).

• Leverage its expertise and early-mover advantage in emerging high-growth areas like FDRE, BESS, and hybrid projects, where it has already secured letters of award.

• Utilize its strong land bank and grid connectivity approvals (2,300 MWp granted/agreed and 3,565 MWp applied) to secure and expedite future co-development projects.

• The asset-light business model allows it to scale operations efficiently without significant capital lock-in, enabling it to undertake a larger number of projects.

• A strong and experienced management team positions the company to navigate industry complexities and secure large-ticket orders in a competitive market.

Peer Group Comparison

Name of Company	Face Value (₹)	Revenue (₹ million)	EPS (₹)	NAV (₹)	P/E	RONW (%)
Rays Power Infra	2	12,206.41	4.96	21.89	NA	28.89
Sterling and Wilson Renewables Energy Limited	124	63,018.60	3..49	42.57	69.56	8.78
Waaree Renewables Technologies Limited	21	15,977.48	22.00	43.57	45.94	65.29
Oriana Power Limited	102	9,871.66	79.52	259.61	30.17	47.59
KPI Green Energy Limited	5	17,354.54	16.23	132.44	27.58	18.77

Key Strategies for Rays Power Infra Limited

Backward Integration into Solar Cell Manufacturing

Rays Power Infra Limited is strategically foraying into manufacturing by establishing a 1.5 GW n-type TOPCon solar cell plant. This backward integration will reduce reliance on imports, provide better control over supply chain and quality, ensure compliance with ALMM norms for government projects, and create a new revenue stream by selling cells to third parties, thereby improving margins and competitiveness.

Expanding Order Book and Market Share

The company’s primary focus is to consistently grow its strong order book by capitalizing on India’s massive renewable energy capacity addition targets. It aims to scale up its Co-Development business focused on inter-state transmission system (ISTS) connected projects and leverage its existing connectivity approvals and applied capacities to secure more large-scale utility projects from both private and public sector clients.

Diversification into Hybrid and New Energy Segments

Rays Power Infra Limited plans to diversify its portfolio by leveraging its EPC expertise to enter high-growth adjacent segments. This includes actively pursuing projects in Wind-Solar Hybrid (WSH), Firm and Dispatchable Renewable Energy (FDRE) with storage, Battery Energy Storage Systems (BESS), and green hydrogen infrastructure. This strategy mitigates reliance on a single technology and captures emerging opportunities.