Websol Energy System 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.

Websol Energy System Ltd trades at ₹75.8, in a downtrend and 4 weeks into that stage. That is −20.1% against its own 200-day average. It sits at 29% of a 52-week range of ₹53 to ₹132. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (14 weeks and counting).

Today the stock is in a downtrend — week 4 of stage 4, confirmed. At ₹75.8 it trades −20.1% versus its 200-day average and sits at 29% of its 52-week range (₹53–₹132).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +2,171% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (14 weeks and counting; last ahead the week of 2026-06-19) — 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.

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.

Websol Energy System Ltd trades at 10.5× P/E, against too little history to rank. Its long-run median P/E is 15.1×, measured across 0.6 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 10.5× is against too little history to rank, against a long-run median of 15.1× measured over 0.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +90.2% against a −41.6% price move — earnings outran the price, pushing the multiple DOWN its own range.

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

Stage: No read 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).

Websol Energy System Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 11 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

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.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

55.1/100 — rank 3 of 7 in Capital Goods - Solar · 93% evidence confidence

Websol Energy System Ltd scores 55.1 out of 100 against the 7 companies it is compared with in Capital Goods - Solar, ranking 3. Cheap but unconfirmed: require improving earnings before treating the valuation as an opportunity.

The four contributions add to the total exactly: 15.5 + 16.6 + 15.3 + 7.7 = 55.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

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

Websol Energy System Ltd reported ₹373 Cr of revenue in the Jun 26 quarter, +70.3% year on year. That is the 7th straight quarter of year-on-year growth. Over 1 years it has compounded at 86.9% a year. The last full year, FY26, came in at ₹974 Cr. The last four reported quarters add to ₹1,203 Cr.

FY26 revenue came in at ₹974 Cr (+86.9% on the year), capping 1 years at 86.9% compound. The latest quarter (Jun 26) printed ₹373 Cr, +70.3% year on year — the 7th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +74.1% growth against the decade's 86.9% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +76.1% over the last 4 quarters against +195.3%/yr over the last 8 — rolling over.

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.

Websol Energy System Ltd's operating margin is 34.0% in the Jun 26 quarter, −13.0 percentage points against the same quarter a year ago.

The latest quarter's operating margin is 34.0%, −13.0 pp against the same quarter a year ago. Across 2 fiscal years the operating margin has ranged 44.0%–49.0%.

🚨 Why the margin moved: operating margin went −13.6 pp year on year while gross margin went −20.3 pp — the loss came mostly from the gross line: input costs and pricing.

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

Websol Energy System Ltd earned ₹78.0 Cr of net profit in the Jun 26 quarter, +16.4% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹303 Cr. The 1-year compound rate is 95.5%. That is 20.9% of the quarter's revenue. The same quarter a year earlier earned ₹67.0 Cr.

Jun 26 profit was ₹78.0 Cr, +16.4% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹303 Cr (+95.5%), and the 1-year compound rate is 95.5%.

Why profit moved: revenue contributed +70.3% and the margin −13.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +59.8% vs revenue +74.1%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

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 2 fiscal years 92% of Websol Energy System Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹255 Cr of operating cash against ₹303 Cr of profit. After ₹220 Cr of capital spending, ₹35.0 Cr was left as free cash.

FY26: operating cash of ₹255 Cr against reported profit of ₹303 Cr, leaving free cash of ₹35.0 Cr after ₹220 Cr of capital spending. Across the last 2 fiscal years the conversion rate is 92% 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 92%: the cash cycle stretched 105 days between FY25 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 3.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

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).

Websol Energy System Ltd's cash conversion cycle runs 113 days in FY26, up from 8 days in FY25. Capital spending ran ₹220 Cr over the last 1 years. At FY26 sales of ₹974 Cr each day of that cycle holds about ₹2.7 Cr, so roughly ₹302 Cr sits inside the business at any moment.

FY26: debtors at 35 days, inventory at 142 days — roughly 4.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 113 days, looser than FY25's 8.

The full loop: cash goes out to suppliers and production on day 0; stock waits 142 days to sell; customers pay about 35 days after that; and suppliers themselves are paid at 63 days — netting out to the 113-day cycle.

In money terms: at FY26 sales of ₹974 Cr, each day of the cycle holds about ₹2.7 Cr — so the 113-day loop keeps roughly ₹302 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹220 Cr over the last 1 fiscal years against ₹62.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹1.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

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.

Websol Energy System Ltd earns a ROCE of 63% in FY26. Return on invested capital clears the cost of that capital by +40.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 31.1% net margin on 1.05× asset turns.

FY26 ROCE is 63%.

Why the return is what it is — the wiring (FY26): 31.1% net margin × 1.05× asset turns × 1.48× balance-sheet leverage ≈ 48.3% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 52.2% − 12.0% = a +40.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Websol Energy System Ltd carries total debt of ₹131 Cr against shareholder equity of ₹631 Cr as of Mar 26, a debt-to-equity of 0.21 — effectively unlevered. On the annual view that ratio went from 0.19 in FY22 to 0.21 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹131 Cr against shareholder equity of ₹631 Cr — a debt-to-equity of 0.21. On the annual view, debt-to-equity went from 0.19 (FY22) to 0.21 (FY26). The returns on this page are earned, not borrowed.

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.

Foreign institutions added 3.7 points of Websol Energy System Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 3.7% of the company. Promoters moved +2.0 points over the same window, to 29.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +3.7 points over 8 quarters to 3.7%; Promoters: +2.0 points over 8 quarters to 29.7%; Domestic institutions: +0.4 points over 8 quarters to 0.4%.

Why the register moved: foreign institutions drove it (+3.7 points), alongside promoters (+2.0 points) — steady accumulation by institutions reading the same numbers this page reads.

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.

Websol Energy System 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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