Solarworld Energy Solutions Ltd IPO

For Fiscals 2025, 2024, and 2023, we derived 79.19%, 91.16%, and 87.98% of our revenue, respectively, from one of our key customers, SJVN Green Energy Limited. The loss of such key customer may materially and adversely affect our business, future prospects, and financial performance.

Our installation and construction activities are subject to cost overruns or delays or completion risks which may have an adverse impact on our operations.

We may be unable to accurately estimate costs under fixed-price EPC contracts. Any failure to accurately estimate costs or manage our supplier relationships, may increase our construction costs and working capital requirements which may have a material adverse effect on our financial condition, cash flow and results of operations.

Our operations are concentrated predominantly in the state of Uttar Pradesh in Fiscals 2024 and 2023, and any change in the economic conditions could adversely impact our business and financial performance.

We have sustained negative cash flows from operating activities in the past and may experience earnings decline or operating losses or negative cash flows from operating activities in the future. Any negative cash flows in the future would adversely affect our results of operations and financial condition.

Any failure to maintain the quality and performance guarantees under our EPC contracts or delays in completing the construction of solar power projects, may increase our construction costs and working capital requirements which may have a material adverse effect on our financial condition, cash flow and results of operations.

Any restrictions in supply or failure of supply or defects in quality could cause delays in project construction or implementation and impair our ability to provide our services to customers at a price that is profitable to us which could have a material adverse effect on our business, financial condition and results of operations.

We operate in a competitive industry and as such we may not be successful in bidding for and winning bids for solar power projects to grow our business, which may have a material adverse effect our business, financial condition, results of operations and prospects.

Our Registered Office and Corporate Office are located on leased premises. We cannot assure you that the lease agreements will be renewed upon termination or that we will be able to lease other premises on the same or similar commercial terms.

We have recently established a manufacturing facility for manufacturing of solar modules and we are in the process of setting up a manufacturing facility for manufacturing of BESS and of establishing a manufacturing facility for solar PV TopCon cell through one of our subsidiaries. The funding for these manufacturing facilities is based on certain assumptions and estimates and is subject to receipt of various approvals from regulatory authorities. Inadequate assumptions and estimates or failure to obtain the required approvals may have an adverse effect on our business operations.