Solar euphoria meets hard data.
India’s solar capacity may outpace near-term demand; aggressive bidding and IPO enthusiasm are warning signs in an otherwise promising sector.
Key insights
- India is set to add 100–110 GW of new module capacity within the next two to three years.
- That build-out would take total capacity towards 200+ GW, well beyond near-term demand.
- On its recent earnings call, KEC International flagged aggressive bidding by solar companies preparing for IPOs.
- Such bidding is largely aimed at inflating order books and creating an appearance of growth and scale.
- This red flag, often missed in euphoric markets, inflates valuations.
- Renewables are inevitable; the discipline lies in being selective about which companies to back.
Disclaimer. PMS investments are subject to market risks. Read all the risk factors and disclosures available on the website carefully before investing. This content is for information only and does not constitute a recommendation. Care Portfolio Managers Pvt. Ltd. · SEBI Regn. No. INP000004128.
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