Is SPARQ Systems a buy right now?

Beacon Securities analyst Donangelo Volpe maintained a “Speculative Buy” rating and $2.00 target on SPARQ Systems (SPARQ Systems Stock Quote, Chart, News, Analysts, Financials TSXV:SPRQ) in a May 26 report after the company announced its largest purchase order to date.

SPARQ, which designs and manufactures single-phase microinverters for residential and commercial solar applications, announced a $32-million order to supply Q2000 Quad Microinverters for deployment in India.

Volpe said the order is likely tied to SPARQ’s partnership with Reliance/Jio and suggests deployment is accelerating beyond minimum commitments.

“To put the magnitude into perspective, the purchase order represents ~25% of the company’s market cap. In FY25, SPRQ generated ~$2M in revenue,” Volpe said.

Volpe said the order expands a previously disclosed 60MW purchase order that he had expected to generate about $8-million in revenue. He said the size and timing came in ahead of his estimates.

The analyst raised his fiscal 2026 revenue estimate to $24-million from $18.5-million, assuming SPARQ fulfills 75%of the order this year. He said further upside is possible if the company ramps production lines fast enough to fulfill the order before year-end.

Volpe said the order could cover about 20,000 to 25,000 telecom towers, leaving a potential $224-million opportunity across roughly 175,000 remaining Reliance towers that may be solarized.

He also pointed to India’s growing residential rooftop solar market, which he said could expand to about 40GW by 2030.

Volpe expects SPARQ to generate revenue of $24-million in fiscal 2026, with Adjusted EBITDA not meaningful. He expects fiscal 2027 Adjusted EBITDA of $6.5-million on revenue of $135-million.

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