How Does Avaada Group Make Money? Power Sales and Solar Manufacturing Explained

A solar panel can earn money at two very different moments. Its maker earns when the panel is sold. The owner of a power plant can then earn for years by selling the electricity that panel helps produce. Avaada Group operates on both sides of this journey, which is why describing it simply as a company that sells renewable power misses an important part of its business.

The distinction also matters when reading its numbers. Avaada develops and operates power projects through group companies, while Avaada Electro manufactures solar cells and modules. A sale from one Avaada company to another may appear in the manufacturer’s own accounts, but it is not an extra sale to an outside customer for the group as a whole.

How does a solar project bring in money?

First, Avaada needs a site, approvals, equipment, a connection to the grid and money to build the plant. Once it starts operating, the plant turns sunlight into electricity. A buyer pays for the electricity delivered, generally under a power purchase agreement, or PPA, that sets out the tariff and other terms.

This creates a different kind of revenue from a one-time equipment sale. A plant does not earn its entire contract value when the PPA is signed. It earns as it produces and supplies power. Its income can therefore depend on the agreed price, the amount generated, whether the power can reach the buyer and whether payments arrive on time.

Avaada says it has about 7.2 GWp of commissioned renewable capacity as of 2026. The word commissioned is important: it describes capacity that has been brought into operation. A project under development or a target for 2030 cannot yet be treated as power already sold. Capacity also measures what a project is built to produce under defined conditions; it is not a revenue figure.

Who buys the electricity?

Renewable power can be sold under contracts with utilities, power market intermediaries or commercial and industrial customers. The industrial route can appeal to a business that wants renewable electricity over a long period. Avaada’s projects do not all have the same buyer, tariff or ownership arrangement, so it helps to examine one real plant.

KMF Nandini Avaada KN Private Limited operates a 97 MWdc solar project in Karnataka that began operating in August 2024. It was built as a captive project for an industrial customer, which also owns a minority stake. ICRA reports that this individual project company had operating income of ₹25.64 crore in FY25. That figure shows what an operating project can earn; it is not Avaada Group’s revenue.

The same project had FY25 profit after tax of ₹0.58 crore. Operating income alone does not reveal what the owner keeps, because building a power plant requires substantial upfront capital. Even after the panels are installed, the project has to meet financing costs, run and maintain the plant, and deliver enough electricity over time.

Why does a long contract not guarantee profit?

A PPA can make future revenue easier to estimate because the buyer and tariff are agreed in advance. The cost of the project, however, is largely committed before years of revenue arrive. Delays during construction can add expense, while weak sunlight or equipment problems can reduce generation after commissioning.

Debt is another important part of the calculation. A plant can have attractive revenue and still leave little profit after interest and other costs. In its assessment of the Karnataka project, ICRA points to generation performance, interest rates and open-access charges as factors that could affect cash available to service debt. Open access is the arrangement that lets an eligible customer purchase electricity from a generator using the wider grid; changes in related charges can affect the buyer’s and project’s economics.

That is why the strongest test of Avaada’s power business is not the capacity it announces. It is how much capacity becomes operational, how much electricity those plants actually deliver, and what remains after the costs of building and financing them.

What does Avaada Electro sell?

Avaada Electro makes solar cells and modules, the equipment used to turn sunlight into electricity. Its business earns when it supplies these products, while a power project earns over its operating life. The manufacturer needs factories, raw materials, a dependable production process and customers willing to buy its output at a price above its costs.

The company’s August 2026 draft prospectus gives a clear picture of its current sales. Avaada Electro reported ₹5,303.52 crore of revenue from operations in FY26, up from ₹911.62 crore in FY25. Solar modules accounted for 99.89% of FY26 operating revenue. Although it also makes solar cells, the disclosed FY26 revenue mix should not be described as though cell sales were already a separate major source of reported operating income.

As of the draft prospectus, Avaada Electro said it had 8.5 GW of operational module manufacturing capacity and 3 GW of operational solar-cell capacity. It also described more capacity being commissioned or built. Those are production capacities, not the quantity necessarily sold in a year. A factory must win orders, make the products and deliver them before capacity turns into revenue.

The unusual link between the two businesses

Avaada’s power-project pipeline gives its manufacturing arm a potential buyer close to home. That can help a factory find demand as group projects are built. But it also creates customer concentration: in FY26, Avaada Electro reported that ₹4,733.26 crore, or 89.34%, of its operating revenue came from Avaada Energy Private Limited, another company in its promoter group. In FY25, the share was 99.74%.

These are real reported sales for Avaada Electro as a company. When analysing Avaada Group as a whole, however, an internal module purchase should not be added on top of the final sale of electricity as if both were independent receipts from outside customers. The manufacturer’s figures are still useful: they show the scale of production and how heavily it depends on group demand. The question for the manufacturing business is whether it can serve more external customers while protecting its margins.

There is also a trade-off in making equipment in-house. Greater control over supply can support project execution, particularly when many plants are under construction. At the same time, factories need capital and can be exposed to changes in module prices, raw material costs and technology. Success in power generation does not automatically guarantee attractive returns in manufacturing.

Where do storage and green fuels fit?

Avaada also discusses batteries, pumped storage and products such as green hydrogen and ammonia. Storage can make renewable power more useful at hours when the sun is not shining. Green fuels could create another product for industrial buyers. These activities help explain the group’s direction, but each project needs its own operating status, customer contract and financial evidence before it can be treated as a material source of present revenue.

For a reader, the sequence matters: a planned project is an opportunity, a signed contract is a commitment with conditions, a commissioned asset can start supplying a product, and a sale creates revenue. Blurring these stages makes any fast-growing energy group look larger than its operating business really is.

What really matters

Avaada has two established ways to earn along the solar chain: power projects sell electricity over time, and Avaada Electro sells the equipment used to build projects. The manufacturing arm’s FY26 sales show that the second business has grown rapidly, but their heavy concentration with a related group company means those figures need careful interpretation.

For power, watch commissioned capacity, generation, tariffs and cash left after debt and running costs. For manufacturing, watch product sales to customers outside the group, factory utilisation and margins. Storage and green fuels could broaden the business, but they should be measured when projects turn into actual sales. Avaada’s opportunity is substantial; its results will depend on converting plans and installed capacity into profitable deliveries.