SPARQ Systems is an undervalued stock, Beacon says

In a Sept. 12 report, Beacon Securities analyst Donangelo Volpe initiated coverage on SPARQ Systems (SPARQ Systems Stock Quote, Chart, News, Analysts, Financials TSXV:SPRQ) with a “Speculative Buy” rating and $2.00 target, pointing to its differentiated inverter technology and a newly signed partnership with India’s Reliance Industries as potential catalysts.

Based in Kingston, Ont., SPARQ designs and manufactures next-generation single-phase microinverters for residential and commercial solar applications. Its proprietary Quad converter optimizes four PV modules with a single microinverter, simplifying installation and reducing costs versus existing market offerings. The company operates with an asset-light model, focusing on core technology development and licensing.

Volpe highlighted SPARQ’s supply and manufacturing agreement with Jio Things Limited, a subsidiary of Reliance Industries and India’s largest digital services company, as “transformative.” The deal positions SPARQ’s microinverters for deployment across India’s rooftop solar market while embedding the technology into Jio’s global energy solutions. Reliance will fund all working capital and capital expenditures, enabling SPARQ to scale without balance sheet strain.

“Reliance has a proven track record of success scaling into new industries,” Volpe said, noting the conglomerate’s 5,000-acre Jamnagar complex, which is ramping up to manufacture solar panels, batteries and fuel cells. Solar module capacity at the site is expected to reach 10 GW by 2026 and could expand to 20–30 GW by 2035 to support India’s net-zero targets. Each GW requires roughly 500,000 microinverters, suggesting a revenue opportunity of up to $270-million by fiscal 2026 and $675-million by fiscal 2027 if SPARQ captures all of Reliance’s demand.

India, the world’s most populous nation and one of the top five economies globally, has targeted more than 280 GW of solar capacity by 2030. With regulatory incentives, domestic content mandates starting in 2026, and robust rooftop markets in both residential and agriculture, Volpe described India as “one of the most solar-supportive environments globally,” providing a de-risked entry point for SPARQ.

Volpe underscored the technical leadership of CEO Dr. Praveen Jain, a Canada Research Chair at Queen’s University with more than 100 patents and prior success selling CHiL Semiconductor for US$75-million.

“We view Dr. Jain and the underlying Quad microinverter platform as integral to Reliance’s solar initiatives moving forward,” he said.

Beacon models revenue of $18.5-million in FY26 and $135-million in FY27, driving Adjusted EBITDA of $1.4-million and $9.5-million respectively. For fiscal 2025, Volpe forecasts revenue of $2.0-million with Adjusted EBITDA “not meaningful,” improving to $18.5-million and $1.4-million in 2026.

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