MBA Journals Peer-reviewed management research from Consortium e-Learning Network

NOLEGEIN Journal of Operations Research & Management

A Study on Profit Performance Evaluation of Selected Leading Solar Firms in India

  1. Maheshbhai R. Sanga
  2. KripalSinh R Rathod
  3. Khushali M Oza

Abstract

The rapid expansion of solar energy in India has created a dynamic and competitive environment for leading firms operating in the renewable sector. Despite significant growth, limited firm-level research exists on how solar companies differ in their profit performance. This study evaluates the profitability of five selected solar firms in India – Adani Green Energy, Tata Power Solar, Sterling & Wilson Renewable Energy, Solar Industries India Ltd., and Jackson Investments Ltd. – over a five-year period from 2020–21 to 2024–25. Secondary data were collected from annual reports and moneycontrol.com, and profitability was assessed using key financial indicators: Net Profit Margin, Return on Net Worth/Equity, Return on Capital Employed, Return on Assets, and Asset Turnover Ratio. A one-way ANOVA (F-test) at a 5% significance level was applied to examine whether significant differences existed among the firms.The findings reveal that there is no significant difference among the selected companies in terms of Net Profit Margin, Return on Capital Employed, and Asset Turnover Ratio. However, significant differences were observed for Return on Net Worth/Equity and Return on Assets, indicating varying levels of financial efficiency, equity returns, and asset utilization across firms. Tata Power Solar and Solar Industries India Ltd. consistently performed stronger in profitability indicators, whereas companies like Jackson Investments Ltd. and Sterling & Wilson Renewable Energy showed weaker or highly volatile profitability trends. The research emphasizes performance differences caused by variations in business models, financial frameworks, and operational effectiveness. The analysis underscores the need for deeper financial benchmarking within the solar sector and provides insights useful for investors, policymakers, and managers aiming to strengthen financial sustainability in India’s rapidly evolving solar industry.

Keywords

Support