Sahaj Solar’s audit record is clean on its face: unqualified opinions, no Key Audit Matters, and no cash losses flagged in the CARO annexure. The numbers underneath tell a different story. Six years of reported profit have produced deeply negative operating cash flow, a ₹125 crore IREDA loan was taken in the last quarter of FY26 and repaid immediately after the balance sheet date, and roughly ₹60 crore of debtors are tied to creditors under an arrangement the company has not quantified in filings.
Key findings
- Reported profits are not backed by cash generation
Major- Cumulative operating cash flow over FY2021-FY2026 was ₹-148 crore against cumulative profit of ₹80 crore, a ratio of -1.85x. The CFO/PAT ratio was negative in four of the last six years, including -2.58x in FY2026. The Board retained the entire FY2025-26 profit and recommended no dividend. - A ₹125 crore IREDA loan was repaid right after the balance sheet date
Major- The company took a ₹125 crore IREDA loan in the last quarter of FY26 to cover the working capital gap and repaid it in April 2026, two months before the completion date. The year-end debt-equity ratio of 1.27 exists precisely because that loan was still outstanding at the balance sheet date. Working capital facilities from multiple banks are secured against hypothecation of the same receivables and inventories, and management is reconciling allocation of security with lenders as at 31 March 2026. - Revenue is increasingly tied up in government receivables
Major- Standalone sales grew 71.45% year-on-year to ₹307.06 crore in FY2024-25. Management disclosed high debtor days of \~233 days and a rising working capital cycle as a weakness in FY2025-26. Pramit Brahmbhatt clarified that around ₹60 crore of debtors are linked with creditors, without quantifying the linked amount in prepared remarks. - Related-party approvals sought for up to ₹450 crore in RPT limits
Major- Shareholders were asked to approve related party transactions with five Veracity and Sahaj entities for FY2025-26, each not exceeding ₹50 crore. A further ₹100 crore aggregate limit was sought for related parties under Section 2(76) and SEBI Listing Regulations. Shareholders were also asked to approve loans, guarantees or security to director-interested entities up to ₹200 crore under Section 185. - Unsecured loans from related parties jumped 46x year-on-year
Major- Unsecured loans and advances from related parties stood at 2.61 crore as of 31 March 2025, up from ₹5.63 lakhs a year earlier. In FY2024-25, five Veracity/Sahaj entities had goods transactions with the company: one purchased ₹1,145.00 lakhs, and three each purchased ₹1,065.00 lakhs and sold ₹1,060.00 lakhs, all previous year nil. The company has also taken unsecured loans from directors during FY2025-26. - Promoter holding halved from 97.1% to 71.3% in one year
Major- Promoter and promoter group shareholding fell 25.80 percentage points to 71.28% in FY2025-26 from 97.08% a year earlier, with pledge at 0.00% in both years. Sustainable Planet Green Energies Private Limited, a promoter group entity, applied on August 25, 2025 for reclassification from Promoter Group to Public category under Regulation 31A of SEBI LODR. The Company Secretary and Compliance Officer resigned effective February 26, 2026, and a replacement was appointed effective March 7, 2026. - Audit opinions are clean, but bank stock statements came from unaudited provisional books
Major- The statutory auditor issued an unqualified opinion on the standalone financial statements for the year ended 31 March 2026, with no Key Audit Matters, no Emphasis of Matter, and no material uncertainty paragraphs. Annexure C for FY2025-26 states that figures for reporting to bank were drawn from the unaudited provisional books of accounts. Annexure C for FY2024-25 states that the major difference in current assets is due to debtors funded by the IREDA loan, which were not included in the stock statement although present in the books of accounts. - Director remuneration rose 44% while profits were retained and cash flow stayed negative
Minor- Director remuneration rose to ₹11.36 lacs in FY2025-26 from ₹7.87 lacs in FY2024-25, an increase of 44.3%. Median employee remuneration increased 35.07% to ₹2.85 lakh in FY2025-26. The Board retained the entire FY2025-26 profit and recommended no dividend.
What to watch
- Security allocation among working capital lenders. Management is reconciling and regularizing as at 31 March 2026.
- Further short-term working capital loans. Any IREDA or other loans taken and repaid immediately after balance sheet dates in FY2026-27.
- FY2025-26 actual RPT amounts. Disclosure in AOC-2 of the FY2025-26 Annual Report, following the FY2024-25 pattern where four Veracity/Sahaj entities each had \~10.6-10.65 crore in purchases and sales.
- FY2026-27 Annual Report. Whether the ₹125 crore IREDA loan translates into improved operating cash flow or further negative CFO.
Bottom line: This is a company whose reported profits have not converted into cash for six years, and whose year-end balance sheet was shaped by a loan taken and repaid around the reporting date. The related-party web is expanding, and the auditor’s own annexure shows bank reporting relied on unaudited provisional books. Watch the security reconciliation, the FY2025-26 RPT disclosures, and whether FY2026-27 finally shows operating cash flow catching up with profit.