Sael Industries IPO

Sael Industries Limited IPO Strengths

Vertically Integrated Renewable Energy Platform

Sael Industries Limited benefits from a highly integrated business model that encompasses in-house solar module manufacturing, EPC, and O&M services. This vertical integration allows the company to exercise control over the entire project lifecycle, from conception to commissioning and long-term maintenance. This structure is instrumental in optimizing costs, ensuring quality, improving execution timelines, and capturing margins across the value chain, thereby creating a significant competitive advantage in the market.

Leadership in the Agri Waste-to-Energy Sector

The company is a pioneer and the largest operator in India’s AgWTE sector based on operational capacity. Sael’s plants utilize paddy straw and other crop residues to generate clean, round-the-clock electricity, directly addressing the critical environmental issue of stubble burning in North India. This pioneering position is backed by over 16 years of operational experience, robust plant performance with high PLFs, and a business model that delivers tangible social and environmental impact.

Diversified Portfolio with High-Quality Off-Takers

Sael Industries Limited has built a strong and diversified portfolio of renewable energy assets, with a total contracted and awarded capacity of 5,765.70 MW spread across solar and AgWTE projects. A significant strength is its off-taker profile, with over 81% of its capacity contracted with entities having credit ratings of ‘AA’ and above. These projects are backed by long-term Power Purchase Agreements with government entities and reputable private companies, ensuring stable and predictable cash flows with reduced collection uncertainty.

Proven Execution Capabilities for Complex Projects

The company has demonstrated a proven ability to execute large-scale and complex projects efficiently. This is evidenced by the completion of a 1,000 MWp solar IPP in Khavda, Gujarat, in just 16 months. Sael’s execution prowess extends to unique projects such as India’s largest metro rooftop solar installation, canal-top projects, and the first large-scale solar IPP in North-East India. This capability is supported by a dedicated in-house team of over 1,400 EPC and O&M personnel.

Robust Capital Management and Institutional Investor Confidence

Sael Industries Limited has exhibited robust capital management, securing funding from a diversified pool of domestic and international lenders, including multilateral banks. A key endorsement of its credibility and governance is the equity investment from prestigious institutions like Norfund and the US International Development Finance Corporation (DFC), which have collectively invested US$145 million. This reflects strong institutional confidence in the company’s business model and its long-term impact on renewable energy and climate change mitigation.

More About Sael Industries Limited

Sael Industries Limited is one of India’s top five renewable energy independent power producers (IPPs), distinguished by its fully integrated model that combines project development, in-house solar module manufacturing, EPC, and O&M services. Incorporated in 2022, the company has rapidly built a significant footprint in the Indian renewable sector.

Business Verticals

• Solar Power Business: The company entered the solar power sector in 2011 and has seen exponential growth since 2016. As of September 30, 2025, its solar portfolio stands at 5,600.80 MW (8,299.51 MWp), comprising 29 utility-scale and 25 rooftop projects. Its projects are backed by long-term PPAs, with a weighted average life of 24.64 years.

• Agri Waste-to-Energy (AgWTE): Sael is the pioneer and largest operator in India’s AgWTE segment. It operates 10 plants (150 MW) with one more under construction. These plants use agricultural residue to generate reliable, round-the-clock power, helping to reduce air pollution from stubble burning. The AgWTE plants boast a high Plant Load Factor (PLF) of over 90% and have in-built tariff escalation provisions.

• Solar Module Manufacturing: The company is among India’s leading TopCon solar module manufacturers with an annual installed capacity of 3,625 MW across facilities in Punjab and Rajasthan. It has plans to further expand its manufacturing prowess by setting up a new integrated 5 GW solar cell and 5 GW module manufacturing facility in Greater Noida, Uttar Pradesh.

Operational Excellence

Sael employs advanced technology across its operations. Its O&M function utilizes a Centralized Monitoring System (CMS), a Remote Operation Monitoring Automation Center (ROMA-Center), drone-based thermography, and automated robotic cleaning systems to ensure high efficiency and plant availability. The company’s strong focus on corporate governance and ESG standards is driven by an experienced, Promoter-led management team and board.

Industry Outlook

The Indian renewable energy sector is poised for transformative growth, driven by the country’s escalating energy demands, rapid urbanization, and strong governmental impetus towards decarbonization.

Market Size and Growth

India is the world’s third-largest consumer of primary energy. The country’s total installed power capacity has increased from 302 GW in FY16 to 475 GW in FY25 and is projected to reach 705-710 GW by FY30. Within this, renewable energy, particularly solar, has been a major contributor. Solar capacity has increased by 63 GW between FY16 and FY25 and is projected to grow by an additional 160-170 GW by FY30. The module manufacturing capacity in India, which stood at approximately 82 GW in FY25, is expected to increase by about 175-185 GW per year until FY30.

Agri Waste-to-Energy Potential

The AgWTE sector holds significant untapped potential in India. The country has an estimated biomass power potential of approximately 28 GW, derived from a surplus availability of around 230 million tonnes of agricultural residue per annum. The current installed capacity under the Biomass Program is 11.58 GW as of March 2025, which is estimated to grow to around 15.50 GW by 2032. The AgWTE sub-segment specifically is expected to grow at a CAGR of 3.4%, reaching 2.42 GW by 2032.

Key Growth Drivers

• Government Policies: Initiatives like the Renewable Purchase Obligation (RPO), “24×7 Power For All,” the Green Energy Corridor, and the Production Linked Incentive (PLI) scheme are key drivers.

• Domestic Manufacturing Push: Policies like the Approved List of Module Manufacturers (ALMM) and the upcoming ALMM for solar cells are designed to boost domestic manufacturing and ensure quality.

• Payment Security: The introduction of the Electricity (Late Payment Surcharge) Rules, 2022, has significantly improved the payment security mechanism for generators.

• Emerging Segments: There is a growing shift towards Round-the-Clock (RTC) and firm, dispatchable renewable energy solutions, supported by government tenders and the integration of energy storage systems (ESS).

How Will Sael Industries Limited Benefit

• Benefit from the massive projected growth in India’s solar energy capacity (160-170 GW by 2030), leveraging its large IPP portfolio and project execution expertise to secure and commission new projects.

• Capitalize on its leadership position in the AgWTE sector to expand capacity in a high-potential market (28 GW potential), utilizing its operational experience and established supply chain for agricultural residue.

• Leverage government policies like ALMM and the PLI scheme through its in-house solar module manufacturing capacity, with the planned 5 GW cell and module facility positioning it to meet domestic content requirements and reduce import dependency.

• Seize the opportunity in the emerging Round-the-Clock (RTC) energy segment by integrating energy storage with its solar projects, aligning with government tenders and improving grid stability.

• Utilize its strong, creditworthy off-taker base and the improved payment security mechanism under the LPS Rules to ensure stable and timely cash flows, reducing receivable days and financial volatility.

• Enhance its competitive edge and margins through its vertically integrated model, which provides cost control, supply chain security, and the ability to capture value across the entire renewable energy chain.

Peer Group Comparison

There are no directly comparable listed companies in India that engage in a business model identical to Sael Industries Limited, which is a vertically integrated player with a significant combined focus on both solar IPP and AgWTE projects, alongside in-house module manufacturing. Accordingly, a standard industry comparison table is not provided.

Key Strategies for Sael Industries Limited

Expanding the Renewable Energy Portfolio

Sael Industries Limited intends to aggressively expand its portfolio to maintain its position as a leading integrated player. The company will actively participate in project bids, leveraging its high historical success rate and proven execution capabilities in land acquisition and grid connectivity. With a strong pipeline and a total contracted capacity of 5,765.70 MW, Sael is well-positioned to capitalize on the massive growth tailwinds in the Indian solar and AgWTE sectors, aiming to significantly scale its operational capacity in the coming years.

Strategic Vertical Integration into Manufacturing

The company plans to implement further strategic vertical integration to enhance its business model and improve profitability. A key initiative is the establishment of a new integrated 5 GW solar cell and 5 GW module manufacturing facility in Greater Noida. This move will reduce dependence on imported and third-party cells, capture more value from the supply chain, and ensure compliance with the ALMM regulations, thereby securing a competitive advantage in the domestic market.

Diversification into New Renewable Technologies

Sael Industries Limited aims to diversify organically into adjacent renewable energy technologies. It plans to enter the Round-the-Clock (RTC) energy sector by integrating energy storage solutions with its existing solar power expertise. With awarded projects already in hand that include ESS components, the company is poised to address the intermittency of solar power and capitalize on the government’s push for firm, dispatchable renewable energy, which is a key growth segment in the evolving energy landscape.

Technology-Driven Operational Excellence

The company is focused on integrating advanced technology and driving process excellence to improve the efficiency and longevity of its projects. This includes implementing predictive maintenance systems like CMMS, deploying bifacial modules, using AI-based forecasting to reduce charges, and optimizing AgWTE plant parameters for lower fuel consumption. These initiatives are designed to reduce operational costs, minimize downtime, extend equipment life, and maintain high plant performance, thereby enhancing overall profitability.

Optimizing Capital Structure and Risk Management

Sael Industries Limited will continue to optimize its capital structure by diversifying its financing sources, reducing financing costs through project refinancing, and tapping into global pools of low-cost capital. Concurrently, the company will strengthen its corporate governance and risk management framework, maintaining strict adherence to its hedging policy for foreign exchange and interest rate risks and integrating ESG considerations into its core strategy to ensure sustainable and resilient long-term growth.