Solar Energy Firm Loom Solar Triples Net Profit Amid Rapid Expansion

Loom Solar, a direct-to-consumer solar energy company, has reported a threefold increase in net profit to Rs 9 crore for fiscal year 2024 despite facing significantly higher operational costs across its business.

The company, which manufactures and sells solar panels, inverters, batteries, and related products, saw its revenue surge to Rs 150 crore in FY24, driven entirely by product sales. This growth comes as the residential solar market expands across India's urban and rural regions.

Material costs emerged as Loom Solar's most significant expense, jumping by 192.9% to Rs 123 crore. Employee benefit expenses also rose substantially by 150% to Rs 5 crore, while transportation costs increased by 181% to Rs 4.5 crore. The company reported an additional Rs 7.5 crore in other operational expenses, bringing total expenditures to Rs 140 crore—a 2.7-fold increase from Rs 51 crore in FY23.

The SIMA-backed company reported current assets worth Rs 49 crore, including Rs 16 crore in cash and bank balances. According to reports, Loom Solar has recently raised $2 million in funding, with Social Investment Managers & Advisors serving as its lead investor.

Founded by brothers Amol and Amod Anand, Loom Solar has built its success on a foundation of lean operations and strategic outsourcing of production. The company initially focused on selling smaller solar systems in rural areas and tier 2 and 3 cities, where strict cost control and higher margins provided capital for continued growth investments.

Unlike many competitors, Loom Solar recognized the importance of brand building early. It became one of the first solar companies to leverage e-commerce platforms like Amazon to boost sales and brand awareness. This multichannel approach to solar panel distribution has helped the company reach customers across diverse market segments.