Swelect Energy Systems Limited (SWELECTES) AI Stock Analysis

Swelect Energy Systems Limited

(NSE:SWELECTES)

Select Model

Rating:38Underperform

Price Target:INR 509.00▼(-12.84% Downside)

Action:downgraded

Date:08/25/26

The overall score is heavily pressured by weak financial performance, characterized by negative free cash flow, rising leverage, and volatile margins despite strong revenue growth. Technical indicators confirm bearish momentum with the stock trading below key moving averages and in oversold territory. Moderate valuation provides some support but is insufficient to offset fundamental and technical risks.

Positive Factors

Profitability ReboundThe sharp earnings rebound shows materially stronger profitability in the latest annual period. If sustained, higher earnings can improve internal funding capacity, support investment in solar capabilities, and provide greater resilience across the company’s product and project businesses.

Negative Factors

Weak Cash ConversionDeeply negative free cash flow despite positive earnings indicates that reported profitability is not currently translating into deployable cash. Continued investment or working-capital needs could increase funding requirements, constrain flexibility, and weaken the durability of the earnings rebound.

Swelect Energy Systems Limited (SWELECTES) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 9.26B
Dividend Yield: 0.60%
Average Volume (3M): 1,742
Price to Earnings (P/E): 20.9
Beta (1Y): 1.50
Revenue Growth: -10.86%
EPS Growth: 55.28%
Country: India
Employees: 279
Sector: General
Sector Strength: 55
Industry: Solar

Swelect Energy Systems Limited Business Overview & Revenue Model

Company Description

Swelect Energy Systems Limited is a diversified enterprise specializing in renewable energy solutions and industrial manufacturing. The company's core business involves the fabrication and distribution of solar power components, including photovoltai...

How the Company Makes Money

SWELECTES primarily makes money by selling solar PV and power-electronics products and by executing solar projects/solutions for customers. Key revenue streams typically include: (1) Solar PV product sales: revenue from manufacturing and selling sola...

Swelect Energy Systems Limited Financial Statement Overview

Summary

Revenue growth is strong (22% CAGR), but profitability is volatile and margins are declining. The balance sheet shows rising leverage (D/E 0.87) with weak debt coverage (8.4% OCF/Debt). Cash flow is deeply negative (FCF -INR 1.87B) due to high capex, requiring external financing. Overall financial risk is elevated.

Income Statement

42Neutral

Balance Sheet

30Negative

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.21B	6.57B	6.22B	2.37B	2.36B	3.54B
Gross Profit	2.40B	1.78B	1.73B	1.50B	1.12B	1.30B
EBITDA	1.64B	1.51B	1.44B	1.53B	1.03B	1.02B
Net Income	416.97M	551.72M	125.97M	620.09M	55.45M	324.02M
Balance Sheet
Total Assets	0	20.83B	17.50B	16.62B	14.87B	14.03B
Cash, Cash Equivalents and Short-Term Investments	2.35B	4.71B	4.60B	5.16B	4.84B	4.36B
Total Debt	0	7.98B	6.28B	5.69B	5.50B	4.59B
Total Liabilities	-9.54B	11.28B	8.72B	8.04B	6.83B	6.16B
Stockholders Equity	9.54B	9.21B	8.57B	8.39B	7.87B	7.76B
Cash Flow
Free Cash Flow	15.22M	-1.87B	-489.02M	-383.25M	-198.72M	101.40M
Operating Cash Flow	655.98M	549.91M	886.68M	895.37M	1.31B	970.09M
Investing Cash Flow	-736.54M	-2.08B	-1.28B	-823.14M	-2.84B	-728.17M
Financing Cash Flow	-453.38M	1.01B	759.66M	324.30M	107.98M	993.93M

Swelect Energy Systems Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price584.00

Price Trends

50DMA590.95Negative

100DMA610.51Negative

200DMA595.07Negative

Market Momentum

MACD0.43Positive

RSI45.30Neutral

STOCH48.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SWELECTES, the sentiment is Negative. The current price of 584.00 is below the 20-day moving average (MA) of 606.35, below the 50-day MA of 590.95, and below the 200-day MA of 595.07, indicating a bearish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 48.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SWELECTES.

Swelect Energy Systems Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SWELECTES against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:WEBELSOLAR	71Outperform	INR 28.44B	3.85	―	0.38%	76.28%	54.75%
IN:PREMIERENE	69Neutral	INR 393.12B	23.72	―	0.17%	26.70%	58.85%
IN:UEL	62Neutral	INR 24.84B	653.65	―	―	-25.96%	215.87%
IN:WAAREEENER	59Neutral	INR 661.60B	17.95	―	0.17%	75.43%	38.62%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SWSOLAR	45Neutral	INR 31.82B	15.49	―	―	-9.04%	―
IN:SWELECTES	38Underperform	INR 8.85B	20.90	―	0.60%	-10.86%	55.28%

* General Sector Average

Performance Comparison

IN:SWELECTES and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SWELECTES	Swelect Energy Systems Limited	584.00	-207.93	-26.26%
IN:PREMIERENE	Premier Energies Limited	866.00	-180.28	-17.23%
IN:SWSOLAR	Sterling And Wilson Renewable Energy Limited	136.25	-98.50	-41.96%
IN:UEL	Ujaas Energy Limited	186.20	60.15	47.72%
IN:WAAREEENER	WAAREE Energies Limited	2300.00	-1066.30	-31.68%
IN:WEBELSOLAR	Websol Energy System Limited	65.51	-55.11	-45.69%

Swelect Energy Systems Limited Corporate Events

Swelect Transfers 26% Stake in ESG Solar to Garg Acrylics for Group Captive Deal

Aug 31, 2026

Swelect Energy Systems Limited has approved the transfer of 26% of its equity stake in ESG Solar Energy Private Limited to Garg Acrylics Limited, a proposed group captive consumer, for a consideration of Rs. 31 lakh. Following this transaction, ESG S...

Swelect Energy Moves AGM and Annual Report Access Fully Online for FY 2025-26

Jul 8, 2026

Swelect Energy Systems Limited has notified stock exchanges that it has sent letters to shareholders who have not registered their email addresses, providing specific web links to access the company’s Annual Report for FY 2025-26 and the notice...

Swelect Energy Systems Schedules Virtual AGM for July 31, 2026

Jul 8, 2026

Swelect Energy Systems Limited has announced that its thirty‑first Annual General Meeting will be held on July 31, 2026, at 3:30 p.m. IST via video conferencing and other audio‑visual means. The company has submitted the AGM notice and an...

Swelect Unit to Acquire 49% Stake in Gridnex Solar to Expand Utility-Scale Solar Footprint

Jun 25, 2026

Swelect Energy Systems Limited has announced that its wholly owned subsidiary, Swelect SolarKraft Private Limited, will acquire a 49% equity stake in Gridnex Solar Power Private Limited, a Haryana-based firm developing grid-connected solar PV power p...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 25, 2026

Swelect Energy Systems Limited AI Stock Analysis