Loom Solar Crosses Rs 150 Cr Milestone in Fy24, Profits Spike As Well

Solar energy solutions provider Loom Solar has managed around three-fold growth in its operating revenue during the last fiscal year. Significantly, the Faridabad-based company also tripled its profits in FY24.

Loom Solar’s revenue from operations soared by 2.9X to Rs 151.5 crore in the fiscal year ending March 2024 from Rs 53 crore in FY23, as per its financial statements sourced from the Registrar of Companies (RoC).

Loom Solar is a direct-to-consumer solar energy firm that manufactures and sells solar panels, inverters, batteries, and other solar products. Its entire collection in FY24 came from the sale of these products.

The cost of materials was the largest expense for Loom Solar, surging by 192.9% to Rs 123 crore in FY24. Employee benefit costs also kept pace, growing 150%, reaching Rs 5 crore. Meanwhile, transportation expenses rose by 181% to Rs 4.5 crore, alongside Rs 7.5 crore booked under other operational expenses. Overall, the company’s total expenses jumped 2.7X to Rs 140 crore in the last fiscal year from Rs 51 crore in FY23.

Despite the rising costs, Loom Solar’s focus on cost efficiency and revenue expansion led to a net profit rising by 3X to Rs 9 crore in FY24. The company’s Return on Capital Employed (ROCE) and EBITDA margin improved to 37% and 9.31%, respectively. On a per-unit basis, Loom Solar spent Re 0.92 to earn a rupee of operating revenue during the past fiscal.

The SIMA-backed firm recorded current assets worth Rs 49 crore which includes Rs 16 crore of cash and bank balance in FY24.

According to TheKredible, Loom Solar has raised $2 million of funding till date, having Social Investment Managers & Advisors as its lead investors.

Backed by a young founding team of brothers Amol and Amod Anand, Loom has earned a reputation for keeping costs really lean and outsourcing production smartly, Loom Solar has been a relatively unheralded success story in the sector that has become impossible to ignore now. The firm focused for years on selling much smaller solar systems in rural areas and tier 2 and 3 cities, where tight costs control and higher margins provided it the fuel to keep investing in growth. That might have kept it away from the limelight enjoyed by larger firms focused on utility scale solar, but the firm’s higher than average appreciation of brand building right from the beginning is likely to see it fare well as rooftop solar explodes in India. It has been among the earliest to use E-commerce platforms like Amazon and content led marketing as well to drive sales and awareness, giving it a strong advantage as the market opens up further. 

At Rs 150 crores, the firm is at an inflection point with some great insights on the markets it serves. As growth moves to the next level, it remains to be seen if its scrappy grit and resilience will carry it to the next stage of possibly Rs 500 crores by 2026-27 as well. Knowing the history of the firm and its founders, they will certainly not aim any lower than that, and will pull out more than a few innovations and marketing surprises along the way. 

By Arrangement with Entrackr