Silgo Retail Limited has entered the renewable energy sector through strategic investments in two solar power companies that have secured long-term power purchase agreements with the Maharashtra State Electricity Distribution Company Limited (MSEDCL).
The company has acquired a 49% stake each in Terraverde Renewables Private Limited and Bluesky Renewables Private Limited, which are developing a combined 37 MW (AC) of solar power capacity in Maharashtra.
Shares of Silgo Retail were trading at ₹75.21, compared with the previous close of ₹75.06. The stock touched an intraday high of ₹76.19 and a low of ₹74.52.
The company has a market capitalisation of ₹239 crore and trades at a P/E ratio of 41.5 times, compared with the industry median of 16.54 times.
37 MW Capacity Across Six Sites
The projects are spread across six locations in Maharashtra, including:
- Chandrapur
- Gadchiroli
- Akola
- Amravati
Capacity has been divided between the two entities:
| Company | Capacity |
|---|---|
| Bluesky Renewables Pvt Ltd | 19 MW (AC) |
| Terraverde Renewables Pvt Ltd | 18 MW (AC) |
| Total | 37 MW (AC) |
The projects will supply daytime solar power to MSEDCL and support the utility’s renewable energy procurement requirements.
Subsidy Support
According to the company, the projects are eligible for government support of approximately ₹90.60 lakh per MW (AC).
Based on the total capacity of 37 MW, the aggregate subsidy works out to around ₹33.52 crore.
Long-Term Agreements
The PPAs signed with MSEDCL cover:
- Development of the projects
- Commissioning
- Operation
- Maintenance
The company stated that the transaction does not involve any related parties.
Q4 FY26 Financial Performance
Revenue
- Q4 FY25: ₹16.53 crore
- Q4 FY26: ₹13.38 crore
Revenue declined 19% year-on-year.
However, revenue rose from ₹11.04 crore in Q3 FY26, registering a 21.19% sequential increase.
Net Profit
- Q4 FY25: ₹1.74 crore
- Q4 FY26: ₹1.91 crore
Net profit increased by 9.77% year-on-year.
Over the last five years:
- Revenue CAGR stood at 8%
- Net profit CAGR was 21%
Key Ratios
- ROCE: 8.17%
- ROE: 5.17%
- EPS (Q4 FY26): ₹0.6
- Debt-to-equity ratio: 0.15
Business Profile
Silgo Retail Limited operates a retail and trading business focused on consumer-oriented segments.
With investments in Terraverde Renewables and Bluesky Renewables, the company has expanded into the renewable energy sector and will participate in the development, operation and maintenance of solar assets backed by long-term power purchase agreements.
TL;DR:
Silgo Retail has acquired 49% stakes in two renewable energy companies that have secured PPAs with MSEDCL for 37 MW solar projects in Maharashtra. The projects are eligible for subsidies worth about ₹33.52 crore.
AI summary:
- Silgo Retail acquired 49% stakes in two solar companies.
- The projects have a combined capacity of 37 MW.
- PPAs have been signed with MSEDCL.
- Government subsidies could total ₹33.52 crore.
- Q4 FY26 net profit rose 9.77% year-on-year.
