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Motilal Oswal's Research Report on UTLSOLAR: Strong Growth Expected

UTLSOLAR, an integrated B2C rooftop solar solutions provider, has made significant strides in the industry. As of December 25, 2025, the company has scaled the capacity of solar panels, batteries, and power electronics to over 1.5GW each. UTLSOLAR is expanding capacity to tap into India's vast rooftop solar opportunity of approximately 100GW by FY30. The company plans to invest INR3 billion in capital expenditure (capex) for panels, inverters, and batteries at Ratlam, which will take the capacity to 3.7GW, 3.7GW, and 3.8GWh.

In a bid to increase its domestic content, UTLSOLAR has backward-integrated into solar panels by setting up a 1GW domestic content requirement (DCR) capacity in January 2026, with gross margins of 51%. This move is expected to support the company's growth potential. The Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY) scheme aims to install 10 million residential rooftop systems by FY27. So far, 2.9 million households have been covered, leaving approximately 7.1 million installations and 26GW of potential untapped. Elaborating on the eligibility criteria, this scheme requires materials that are compliant with the DCR standards, driving UTLSOLAR's in-house cell plant at Dadri.

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According to Motilal Oswal's research report, UTLSOLAR is expected to deliver strong growth driven by PMSGMBY-led demand and capacity expansion. The company's valuation is estimated at 15 times FY28 earnings per share (EPS), with a target price (TP) of INR340 and a BUY rating.