Insolation Energy Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Insolation Energy Ltd trades at ₹126, in a downtrend and 66 weeks into that stage. That is −16.8% against its own 200-day average. It sits at 25% of a 52-week range of ₹119 to ₹148. On relative strength it has no relative-strength read yet.

Today the stock is in a downtrend — week 66 of stage 4, confirmed. At ₹126 it trades −16.8% versus its 200-day average and sits at 25% of its 52-week range (₹119–₹148).

Against the market, two honest reads. Cumulative: over the last 1 months the stock moved +6% while the NIFTY 500 moved +0% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 1st percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Insolation Energy Ltd trades at 13.9× P/E, about the cheapest it has ever traded. Its long-run median P/E is 44.1×, measured across 3.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 13.9× is about the cheapest it has ever traded, against a long-run median of 44.1× measured over 3.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Insolation Energy Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 3 quarters ago at −17.1% and has held its recovery at +66.7% (single-quarter readings), ROCE holding at 22.0%. The read is built from 8 quarters across 3 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

No sector-relative score — Insolation Energy Ltd is not present in the sector comparison for Capital Goods - Electric General.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Insolation Energy Ltd reported ₹794 Cr of revenue in the Mar 26 quarter, +100.0% year on year. That is the 2nd straight quarter of year-on-year growth. Over 4 years it has compounded at 77.7% a year. The last full year, FY26, came in at ₹2,146 Cr. The last four reported quarters add to ₹2,181 Cr.

Insolation Energy Ltd reported ₹794 Cr of revenue in the Mar 26 quarter, +100.0% year on year. That is the 2nd straight quarter of year-on-year growth. Over 4 years it has compounded at 77.7% a year. The last full year, FY26, came in at ₹2,146 Cr. The last four reported quarters add to ₹2,181 Cr.

FY26 revenue came in at ₹2,146 Cr (+60.9% on the year), capping 4 years at 77.7% compound. The latest quarter (Mar 26) printed ₹794 Cr, +100.0% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +32.8% growth against the decade's 77.7% — the current year is running slower than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: 14.0% this quarter (+0.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Insolation Energy Ltd's operating margin is 14.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across the last four quarters the operating margin has moved +7.0 percentage points. Across 5 fiscal years the operating margin has ranged 6.0% to 13.0%.

Insolation Energy Ltd's operating margin is 14.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across the last four quarters the operating margin has moved +7.0 percentage points. Across 5 fiscal years the operating margin has ranged 6.0% to 13.0%.

The latest quarter's operating margin is 14.0%, +0.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 6.0%–13.0%, and FY26's 13.0% is the top of that band — a record year.

Why the margin moved: operating margin went +6.5 pp year on year while gross margin went +8.2 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins held — did that reach the bottom line? Next: profit +66.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Insolation Energy Ltd earned ₹70.0 Cr of net profit in the Mar 26 quarter, +66.7% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹201 Cr. The 4-year compound rate is 131.5%. That is 8.8% of the quarter's revenue. The same quarter a year earlier earned ₹19.0 Cr.

Insolation Energy Ltd earned ₹70.0 Cr of net profit in the Mar 26 quarter, +66.7% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹201 Cr. The 4-year compound rate is 131.5%. That is 8.8% of the quarter's revenue. The same quarter a year earlier earned ₹19.0 Cr.

Mar 26 profit was ₹70.0 Cr, +66.7% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹201 Cr (+59.5%), and the 4-year compound rate is 131.5%.

Why profit moved: revenue contributed +100.0% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +50.2% vs revenue +32.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 18% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 18% of Insolation Energy Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−73.0 Cr of operating cash against ₹201 Cr of profit. After ₹511 Cr of capital spending, ₹−584 Cr was left as free cash.

FY26: operating cash of ₹−73.0 Cr against reported profit of ₹201 Cr, leaving free cash of ₹−584 Cr after ₹511 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 18% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 18%: the cash cycle stretched 14 days between FY22 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 14 days — the next section's job is to find where the cash is stuck.

→ So follow the cash to where it goes. Next: the 66-day cycle, in money terms.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Insolation Energy Ltd's cash conversion cycle runs 66 days in FY26, up from 52 days in FY22. Capital spending ran ₹612 Cr over the last 3 years. At FY26 sales of ₹2,146 Cr each day of that cycle holds about ₹5.9 Cr, so roughly ₹388 Cr sits inside the business at any moment.

FY26: debtors at 48 days, inventory at 81 days — roughly 2.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 66 days, looser than FY22's 52.

The full loop: cash goes out to suppliers and production on day 0; stock waits 81 days to sell; customers pay about 48 days after that; and suppliers themselves are paid at 62 days — netting out to the 66-day cycle.

In money terms: at FY26 sales of ₹2,146 Cr, each day of the cycle holds about ₹5.9 Cr — so the 66-day loop keeps roughly ₹388 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹612 Cr over the last 3 fiscal years against ₹52.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹73.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 22%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Insolation Energy Ltd earns a ROCE of 22% in FY26. That is up from a trough of 20% in FY23. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 9.4% net margin on 1.00× asset turns.

FY26 ROCE is 22%, recovered from a FY23 trough of 20% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.4% net margin × 1.00× asset turns × 2.67× balance-sheet leverage ≈ 25.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 1.10.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Insolation Energy Ltd carries ₹888 Cr of borrowings against ₹807 Cr of equity in FY26, a debt-to-equity of 1.10. Operating profit covers the interest bill 12×. Over 4 years borrowings went from ₹31.0 Cr to ₹888 Cr. Capital spending ran ₹612 Cr across the last 3 of those years.

FY26: borrowings of ₹888 Cr against equity of ₹807 Cr — a debt-to-equity of 1.10. Operating profit covers the interest bill 12×. Over 4 years borrowings went from ₹31.0 Cr to ₹888 Cr while capital spending ran ₹612 Cr in just the last 3 — part of the build-out is riding on borrowed money.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 3.7 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 3.7 points of Insolation Energy Ltd over 8 quarters, the biggest move on the register. That takes promoters to 66.1% of the company. Foreign institutions moved +1.0 points over the same window, to 1.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −3.7 points over 8 quarters to 66.1%; Foreign institutions: +1.0 points over 8 quarters to 1.1%; Domestic institutions: +0.6 points over 8 quarters to 0.7%.

🚨 Why the register moved: promoters drove it (−3.7 points), absorbed on the other side by foreign institutions (+1.0 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Insolation Energy Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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