GRE Renew Enertech Ltd. IPO Analysis: Should You Apply or Skip?

As India’s rooftop solar story moves from ambition to execution, GRE Renew Enertech’s upcoming IPO of ₹39.56 crore offers a window into a capital-efficient EPC player betting on disciplined growth rather than scale-at-any-cost.

Let’s explore further:

Before the Deep Dive: What’s Working — and What Isn’t

Now that you’ve seen the snapshot, let’s unpack the full story behind these numbers and understand the business in context.

Industry Overview: Solar Power 

India’s solar industry is in the middle of a structural upcycle. With ~133 GW of installed solar capacity as of FY25 and an ambitious 500 GW non-fossil fuel target by 2030, the sector is scaling fast on both utility and rooftop sides. India’s rooftop solar segment is shifting into high gear. Installed capacity of about 23.2 GW sits against a massive opportunity as businesses and homes chase cheaper, cleaner power. But most listed solar companies have seen sharp valuation corrections over the last 12–18 months. EPC-heavy players and manufacturers alike have de-rated as execution risks surfaced.

Key reasons behind the sector-wide correction is margin pressure from sharp module price volatility, policy uncertainty, overcapacity and pricing pressure. As a result, several large and well-known solar players—despite scale and order books—are now available at meaningfully lower P/E multiples than they traded at during the upcycle. What this really means is that the market has stopped rewarding growth alone. Cash flows, balance-sheet strength, and execution discipline now matter more than headline capacity additions. Policy tailwinds like PLI for solar manufacturing, ALMM norms, PM-KUSUM, rooftop subsidy schemes, accelerated depreciation benefits and DISCOM reforms are steadily improving adoption economics. 

GRE Renew Enertech traces its roots back to 1999, when it started as a partnership firm under the name G.R.E. Electronics in Gujarat, catering to electrical and lighting solutions. As energy efficiency and renewables gained traction in India, the company expanded beyond conventional electrical work into LED lighting solutions and later into rooftop solar, aligning itself with the broader clean-energy transition. This evolution culminated in the incorporation of GRE Renew Enertech Private Limited in 2023, followed by its conversion into a public company in 2024. Today, GRE operates across LED lighting, EPC-based rooftop solar installations, and RESCO (OPEX) solar models, offering integrated, end-to-end energy solutions for residential, commercial and industrial customers. 

Products & Services Overview

• LED Lighting Solutions:
  GRE designs, manufactures and supplies LED lighting products for residential, commercial and industrial use, covering indoor and outdoor applications. The company has also worked for most of the State/Centre Government, Indian Railways, NPCIL, SAIL and many more such organisations.  While LEDs were part of the company’s early growth and continue to complement its energy-efficiency offering, this segment now contributes a relatively small share of overall revenue.
  
  

• Solar EPC (CAPEX) Model:
  Under the EPC model, GRE delivers end-to-end rooftop and ground-mounted solar projects on a turnkey basis. This includes site assessment, system design, engineering, procurement of modules and inverters, installation, commissioning, and post-installation support. Customers own the asset upfront, while GRE may continue to provide operations and maintenance services under annual contracts.
  
  

• Solar RESCO (OPEX) Model:
  In the RESCO model, GRE builds, owns and operates the solar plant and supplies power to customers under long-term power purchase agreements (PPAs). GRE handles the entire lifecycle—project development, financing, construction, grid integration, operations and maintenance—while customers benefit from lower power tariffs without upfront capital investment. This model creates annuity-style revenue and long-term cash flow visibility.
  
  

• Operations & Maintenance (O&M):
  Across both EPC and RESCO models, GRE offers ongoing O&M services, including performance monitoring, preventive maintenance and reporting, aimed at maximizing plant efficiency and uptime.

• Subsidiaries & Group Structure:

GRE operates through focused business verticals and has one overseas subsidiary, DK USA Inc., incorporated in the United States. This foreign Subsidiary is primarily engaged in the Departmental Stores, Convenience Store, Gas Station. Domestically, operations are organized across solar, LED lighting and export divisions, with the solar business contributing the majority of revenues and growth momentum.

Technology & Solar Capabilities

GRE deploys grid-connected photovoltaic systems using mono-crystalline modules, including projects executed with TOPCon (Tunnel Oxide Passivated Contact) cell technology, which offers higher efficiency, better temperature performance and lower degradation compared to conventional mono-PERC cells. Module and inverter selection is project-specific and vendor-specific, allowing GRE to optimize plant design based on site conditions, generation requirements and return metrics. 

They outsource these modules and inverters from third party companies which support efficient execution across both CAPEX (EPC) installations and long-term RESCO (OPEX) assets.

CAPEX (EPC) Order Book:
As disclosed in the RHP, GRE has an active EPC order book of ~ ₹77 crore as of 30 Nov 2025, comprising rooftop and ground-mounted solar projects for industrial and commercial customers. These CAPEX projects typically follow 6–12 month execution timelines, supporting near-term revenue visibility through turnkey installation and commissioning
 

RESCO (OPEX) Projects:
Under the RESCO model, GRE plans to develop a 7.20 MW (AC) / 9.99 MW (DC) ground-mounted solar power project, fully owned and operated by the company, with land rights held by GRE and revenues generated through long-term PPAs.

• Project A: 3.90 MW (AC) / 5.41 MW (DC)

• Project B: 3.30 MW (AC) / 4.58 MW (DC)

These RESCO projects are expected to be executed and stabilised over the next 12–24 months, adding annuity-style cash flows and strengthening long-term earnings visibility alongside the EPC-led execution pipeline.

Revenue Mix By Segment 

Solar has decisively taken over the business mix, rising from 56.1% in FY23 to over 92% in FY25, and sustaining ~92% share in H1 FY26, which clearly shows the company’s successful pivot toward solar-led operations. Solar is overwhelmingly installation-led today, while RESCO power generation is still small but visibly emerging, supporting the long-term growth narrative.

At the same time, LED has steadily faded from nearly 9% to below 2%, confirming it’s now a non-core segment. Exports remain volatile, dropping sharply after FY23 and settling in mid–single digits at ~6% in H1 FY26, indicating a volatile execution rather than a stable revenue pillar.

Revenue Mix By Geography 

Revenue is highly concentrated in Gujarat, which accounted for about 98% in FY25, around 89% in FY24, and roughly 95% in FY23, showing the company’s strong dependence on a single state for operations. Exports—(from their subsidiary DK USA Inc.), form a smaller share, contributing around 6–7% in FY25, about 5% in FY24, and nearly 16% in FY23, largely driven by shipments to the United States via DK USA Inc., with minor, non-recurring exposure to Rwanda and Uganda in earlier years.

After a sharp 73% jump in FY24, revenue moderated by -7% in FY25, largely due to a decline in subsidiary-led export revenues, while the core domestic solar business remained intact. 

Despite this dip, profitability stayed strong, with EBITDA margins improving to 11–13% in FY25 and H1 FY26 from a weak 2.5% in FY23, showing operating leverage kicking in. Sustaining double-digit margins will be challenging in a competitive, price-sensitive EPC environment.

PAT margins followed the same trajectory, rising from 1.7% in FY23 to 11.0% in FY24, and sustaining at ~9% in H1 FY26.

Returns peaked in FY24 (ROE 61.6%, ROCE 51.0%) before normalising in FY25–H1 FY26 as equity expanded post profits and leverage reduced. 

Balance sheet risk has materially improved, with debt-to-equity falling from 0.43 in FY23 to just 0.04 in H1 FY26, even as the cash conversion cycle stretched from 20 days in FY23 to 68 days in H1 FY26, reflecting higher receivables typical of scaling EPC-led solar operations.

Management + Promoters  

The company is promoted by an experienced founding team, with Mr. Kamleshkumar Dahyalal Patel being the largest shareholder and key decision-maker with ~50% holding pre IPO, providing continuity in strategy and execution. 

Prior to the IPO, the promoter group held 95.06% of the equity, reflecting tight ownership and direct operational control. Post issue, promoter shareholding will dilute to 69.99%, which still ensures strong promoter alignment and control, while allowing room for public participation and future capital flexibility. Overall, the management structure remains promoter-driven, with incentives clearly aligned toward long-term value creation rather than short-term exits.

Peer Analysis 

(FY25)

GRE Renew Enertech operates at a much smaller scale with revenues of about ₹80 crore, compared to ₹1,019 crore for Oriana Power and ₹408 crore for Zodiac Energy, but it holds its ground on efficiency. 

GRE delivers an EBITDA margin of 11.3% and a ROCE of 29.6%, which is materially better than Zodiac’s 20% ROCE and only trails Oriana’s best-in-class 42.3%. On balance sheet strength, GRE clearly stands out with a very low debt-to-equity of 0.05, versus 0.5 for Oriana and a leveraged 1.8 for Zodiac, giving it far greater financial flexibility.

From a cash-flow lens, GRE’s cash conversion cycle of 43 days is the shortest among peers, significantly better than 96 days for Zodiac and 146 days for Oriana, indicating stronger working-capital discipline despite its smaller size. Valuation-wise, GRE trades at around 18.7× P/E, broadly in line with Oriana (17.6×) and at a discount to Zodiac (21×). 

In the current cycle, scale and diversification command a premium, which GRE does not yet possess.

Using LMVT Framework, 

Leadership: GRE is led by a promoter-driven management team with a long operating history in energy solutions and continued majority ownership post-IPO, ensuring execution continuity and aligned decision-making.

Moat: While not a scale leader, GRE’s moat lies in its capital-efficient EPC execution, and upcoming ROSEC model execution.

Valuation: At ~18.7× P/E, GRE Renew Enertech’s IPO pricing looks overstretched for the current phase of the Indian solar cycle. This valuation might have appeared reasonable during the sector’s upcycle, but today it stands out unfavourably when benchmarked against the broader listed solar universe.

Tailwinds: Structural growth in rooftop solar, government support for distributed generation, and a gradual shift toward RESCO annuity income provide multi-year demand visibility.

Bottom line: At current valuations, GRE Renew Enertech offers limited upside and asymmetric downside. In a sector that has already seen sharp de-rating, investors can access larger, diversified solar players at similar or lower P/E multiples. Risk–reward does not justify fresh participation—best avoided at the IPO stage.