Trom Industries Stock Rises 6% After Winning Major Solar PV Contract
Trom Industries secures a Rs.3.36 crore deal to supply and install a 1 MW solar plant, marking a strong push in India’s renewable energy market.
Trom Industries Shares Climb on Contract Announcement
Shares of Trom Industries Limited jumped by 6 percent following news of a significant contract win with Hermes Technologies Private Limited. The agreement, valued at around Rs.3.36 crore (including GST), involves the supply, installation, testing, and commissioning of a 1 MW grid-connected ground-mounted solar photovoltaic (PV) plant. The announcement highlighted Trom Industries’ expanding presence in the renewable energy sector and its commitment to large-scale clean energy projects.
During trading on Wednesday, Trom Industries shares touched an intraday high of Rs.121.55, rising from the previous day’s close of Rs.114.65. Although the stock pulled back slightly, it continued to trade above Rs.115, reflecting sustained investor interest.
Details of the Solar PV Plant Contract
This contract is entirely domestic and was awarded by Hermes Technologies Private Limited, an Indian company. The project is slated for completion within the current financial year, underscoring Trom Industries’ focus on timely execution and delivery.
The order covers the end-to-end deployment of a solar PV plant that will feed clean energy into the grid. Initiatives like these play a crucial role as India accelerates its push to increase renewable energy capacity and lower its carbon footprint. This latest contract further strengthens Trom Industries’ portfolio of solar energy solutions and reinforces its role as a key player in India’s green energy transition.
Trom Industries’ Solar Energy Offerings
Trom Industries is known for its comprehensive solar solutions spanning various segments. Its product lineup includes solar rooftop installations tailored for both industrial and residential customers. The company also designs and deploys ground-mounted solar power plants, ideal for large-scale energy production.
In addition to power plants, Trom Industries offers solar street lighting systems, helping local authorities implement sustainable lighting solutions. The firm is also active in trading critical components such as solar panels, inverters, and other essential hardware, enabling it to offer turnkey solar projects across the country.
Financial Performance Overview
Trom Industries’ recent financial results indicate a mixed performance. For the second half of the fiscal year 2025, the company reported consolidated revenue of Rs.47.08 crore, which marked a robust growth of approximately 51.5% compared to Rs.31.08 crore in the corresponding period the previous year. This growth demonstrates Trom’s ability to scale its operations and capture new business opportunities in the renewable energy domain.
On a sequential basis, revenue saw a marginal increase of 1.8% from Rs.46.24 crore in the first half of FY25, showing steady business continuity.
However, net profit took a sharp downturn, falling by about 87.1% to Rs.0.48 crore in H2 FY25 from Rs.3.71 crore in H2 FY24. Compared to the first half of FY25, profits declined nearly 88.4%, indicating increased expenses or other operational challenges during the recent period.
Key Financial Ratios and Market Metrics
Despite the profit decline, Trom Industries maintains solid operational efficiency metrics. The company’s Return on Capital Employed (ROCE) stands at 11.92%, reflecting effective use of its capital base. Its Return on Equity (ROE) is measured at 9.87%, indicating reasonable returns generated on shareholder investments.
Trom’s Price-to-Earnings (P/E) ratio currently sits at 22.84, which is notably lower than the industry average of 31.14, suggesting that the stock could be attractively valued relative to peers. The company showcases solid financial stability, reflected by its current ratio of 4.04, which suggests it possesses more than enough short-term resources to meet immediate obligations.
With a debt-to-equity ratio of just 0.31, the business maintains a cautious stance toward borrowing, minimizing exposure to financial risk. Additionally, an Earnings Per Share (EPS) of ₹5.02 highlights the firm’s per-share earnings performance, offering insight into its overall profitability.
Growing Renewable Energy Market Opportunity
India’s push towards renewable energy presents ample opportunities for companies like Trom Industries. With ambitious targets for solar capacity expansion, government incentives, and increasing demand for clean power solutions, firms that can deliver scalable projects efficiently are poised for growth.
Trom’s recent contract win and steady revenue growth underscore its capability to participate actively in this evolving sector. As the company expands its footprint in solar installations and component trading, it could benefit from rising market demand and increasing investments in sustainable energy infrastructure.
Final Thoughts
Trom Industries’ stock rally following the announcement of a major solar PV plant contract highlights the company’s strengthening role in India’s renewable energy landscape. The Rs.3.36 crore deal with Hermes Technologies marks a significant milestone, demonstrating Trom’s ability to secure and execute substantial domestic projects.
While the company has showcased impressive revenue growth, the sharp decline in net profit warrants attention, suggesting the need to manage costs and operational efficiencies closely. Key financial ratios point to a healthy balance sheet and reasonable valuation compared to the broader industry.
As India accelerates its transition to cleaner energy, Trom Industries is well-positioned to capitalize on emerging opportunities. Investors and market watchers will be keenly observing how the company navigates profitability challenges while scaling up its solar business in the coming quarters.
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