Infrax Renewable

Established track record for execution of solar EPC solutions

The company has successfully developed, executed and commissioned 5,708 rooftop residential solar projects and ground mounted solar projects with an aggregate total project value exceeding ₹ 8,743.95 lakhs in the last three financial years.

Strong relationship with customers

The company generates recurring business through its network of dealers and third-party partners, with strong customer relationships contributing to robust growth and repeat orders from many customers.

Wide range of products

The company is engaged in supply and distribution of a wide range of solar products, including Solar PV modules, Solar PV inverters and related solar products, maintaining a diversified portfolio to cater to evolving energy requirements.

Financial Stability Through the IPP Model

The company has developed a solar power plant under Power Purchase Agreement through IPP model, which establishes a steady and reliable revenue stream over an extended period by selling electricity directly to government.

Established relationship with suppliers

The company focuses on building sustained and long-term relationships with suppliers, enabling continued business growth and effective supply chain management with alignment to market needs and customer demand.

Dealership network and presence across various states

The company has developed an established dealer network of 2,830 dealers as of FY 2025-26, supporting customer acquisition, project execution and timely completion of installations across various states.

Strategic location of warehouses and branch offices

The company operates 3 warehouses located at Rajkot, Ahmedabad and Kanpur, and 6 branch offices in 4 states, enabling expansion of geographic reach, reduced logistic costs and efficient business operations.

Dependence on Government Policies and Subsidies

The company's business is significantly dependent on continued availability of government policies, subsidies, incentives and support mechanisms for the solar sector. Any withdrawal, reduction, delay or unfavorable modification of such policies may adversely affect demand for products and services, impact profitability, and have a material adverse effect on business operations and financial condition.

Dealer Dependency Risk

The company depends on dealers for a significant portion of revenue, with 2,830 dealers as of FY 2025-26. Any decrease in revenues from dealers, inability to retain existing dealers, or difficulties in recruiting new dealers may cause loss of customers and adversely affect business operations and results of operations.

Geographic Revenue Concentration

The company generates 97.41% of revenue from Gujarat in FY 2025-26, creating significant geographic concentration risk. Any adverse developments affecting operations in Gujarat, including competition, economic changes, or regulatory issues, could have a material adverse impact on revenue and results of operations.

Key Customer Concentration Risk

The company's top 10 customers contributed 47.02% of total revenue in FY 2025-26, with no long-term agreements in place. Loss of major customers or inability to maintain historical business levels from key customers could have a material adverse effect on business, financial condition, and results of operations.

Supplier Concentration and Supply Chain Risk

The company procures from limited suppliers, with top 10 suppliers accounting for 65.86% of total purchases in FY 2025-26, without long-term supply contracts. Any supply disruptions, price increases, or loss of key suppliers may adversely affect business operations, profitability, and ability to meet customer requirements.

Working Capital Requirements

The company requires significant working capital, with projected requirements increasing from ₹1,665.84 lakhs in FY 2025-26 to ₹4,907.02 lakhs in FY 2027-28. Any inability to meet working capital requirements may adversely affect business operations, cash flows, and results of operations.

Manufacturing Facility Implementation Risk

The company proposes to establish a manufacturing facility with estimated machinery costs of ₹1,229.33 lakhs. Any delays in setup, cost overruns, or time delays in procurement and installation of machinery may adversely affect implementation of manufacturing operations and could have a material adverse effect on business and growth prospects.

Negative Cash Flow from Operations

The company had negative cash flows from operating activities of ₹270.21 lakhs in FY 2025-26. Sustained negative cash flow could impact growth and business operations, affecting the company's ability to fund operations and meet capital expenditure requirements.

Project Execution and Operational Risks

Rooftop and ground-mounted solar projects are subject to execution risks including accidents, fire hazards, electrical failures, and workforce-related incidents. Such risks may result in liabilities, penalties, project delays, and reputational harm, which could adversely affect business operations and financial condition.

Regulatory and Compliance Risk

The company is required to obtain and maintain various approvals, licenses, and permits for operations. Any delay or failure to obtain, renew, or maintain necessary approvals could adversely affect project operations, and non-compliance may result in suspension or revocation of permits.