Home Solar Company 'SolarSquare' face Financial Strain with 2.3X Loss Rise

SolarSquare, a provider of rooftop solar solutions, had a 63.5% increase in its operational scale year over year, generating Rs. 175 crore in revenue during the most recent fiscal year. However, the company's losses increased by 2.3X in FY24, indicating that this growth came at a high cost.

Based on financial papers obtained from the Registrar of Companies (RoC), SolarSquare's operating revenue increased from Rs. 107 crore in FY23 to Rs. 175 crore in FY24.

SolarSquare, which was founded by Neeraj Jain and Nikhil Nahar, plans, installs, and finances residential rooftop solar systems. Additionally, it offers business buildings and housing societies rooftop solar systems.

By installations, it is currently without a doubt the biggest company concentrating on the home market.

Sales of goods and services generate revenue for SolarSquare. Product sales revenue, which made up the majority of its operating revenue, increased by 66.35% to Rs. 173 crore in FY24. On the other hand, service revenue dropped 33.33% year over year to Rs. 2 crore.

Interest on deposits and returns on current investments brought in an extra Rs. 3 crore for the company, increasing its overall revenue from Rs. 108 crore in FY23 to Rs. 178 crore in FY24.

In terms of expenses, material expenditures continued to be the biggest contributor, rising 52.27% to Rs. 134 million in FY24. Employee benefit costs increased by 105.56% to Rs. 37 crore, more than double. In the previous fiscal year, other expenses, such as operating overheads, contributed Rs. 50 crore to the total of Rs 8 crore in finance and leasing costs.