Q1 2027 Vikram Solar Ltd Earnings Call

August 7, 2026

Operator: Ladies and gentlemen, thank you for your patience. We will be starting with the conference in a while. Thank you for holding. Ladies and gentlemen, good day and welcome to the Vikram Solar Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sheetal Khanduja from Go India Advisors. Over to you, ma'am.

Speaker #1: Ladies and gentlemen, thank you for your patience. We will be starting the conference shortly. Thank you for holding. Ladies and gentlemen, good day and welcome to the Vikram Solar Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, good day and welcome to the Vikram Solar Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sheetal Khanduja from Go India Advisors. Over to you, ma'am.

Speaker #1: As a reminder, all participant lines will be in listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Nishita Khanduja from GoIndia Advisors. Over to you, ma'am.

Speaker #2: Thank you, Ananya. Good afternoon, everyone, and welcome to the Vikram Solar earnings call. To discuss Q1 FY27 results, we have the senior management with us on the call.

Sheetal Khanduja: Thank you, Ananya. Good afternoon, everyone, and welcome to Vikram Solar earnings call to discuss Q1 FY27 results. We have the senior management with us on the call. We are joined by Mr. Sameer Nagpal, Chief Executive Officer, Mr. Ranjan Jindal, Chief Financial Officer, Mr. Arun Mittal, CEO of VSL Powerhive Private Limited, spearheading the company's battery energy storage system business, and Ms. Veena Shah, General Manager of Corporate Finance. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Sameer Nagpal to take us through the company's business outlook and financial highlights, subsequent to which we can open the floor for Q&A. Thank you, and over to you, sir.

Speaker #2: We are joined by Mr. Sameer Nagpal, Chief Executive Officer; Mr. Ranjan Jindal, Chief Financial Officer; and Mr. Arun Mittal, CEO of VSL Power Heights Private Limited.

Speaker #2: Spearheading the company's battery energy storage system business, and Ms. Veenal Shah, General Manager, Corporate Finance. We must remind you that the discussion on today's call may include certain forward-looking statements and must therefore be viewed in conjunction with the risks that the company faces.

Speaker #2: May I now request Mr. Sameer Nagpal to take us through the company's business outlook and financial highlights, subsequent to which we can open the floor for Q&A.

Speaker #2: Thank you, and over to you, sir.

Speaker #3: Thank you, Sheetal. Good afternoon, everyone. As we gather in this auspicious month of Sawan, I extend a warm welcome to all our stakeholders, seeking Lord Shiva's blessings for his wisdom, strength, and sustained prosperity in our journey ahead.

Sameer Nagpal: Thank you, Sheetal. Good afternoon, everyone. As we gather in this auspicious month of Sawan, I extend a warm welcome to all our stakeholders, seeking Lord Shiva's blessing for his wisdom, strength, and sustained prosperity in our journey ahead. Before delving into the details with respect to the performance of the company, I would like to give a context to the quarter gone by. Three things shaped this quarter. First, ALMM 2 enforcement stayed unclear for most of the quarter before the mandate was implemented and then deferred to December 2026. That uncertainty held back buying decisions, and it showed up in our order flow. Second, the ongoing Gulf conflict pushed up the costs of metal, roof linked raw materials, and freight.

Speaker #3: Before delving into the details with respect to the performance of the company, I would like to give some context to the quarter gone by.

Speaker #3: Three things shaped this quarter. First, KLM2 enforcement stayed unclear for most of the quarter, before the mandate was implemented and then deferred to December 2026.

Speaker #3: That uncertainty held back buying decisions, and it showed up in our order flow. Second, the ongoing bulk conflict pushed up the costs of metal, group-linked raw materials, and freight.

Speaker #3: Third, being the sheer volume of new module capacity that came on stream industry-wide, which made competition intense and did not allow a full pass-through of these costs, the impact of which you see in our numbers.

Sameer Nagpal: Third, seeing the sheer volume of new module capacity that came on stream industry-wide, which made competition intense and did not allow a full pass-through of these costs, the impact of which you see in our numbers. The most important story is what we have accomplished. Because underneath the margin optics, this was a quarter of building and repositioning. This quarter, we clocked our highest ever quarterly volume of 1,006 MW, up 32% on the same quarter last year. Revenue grew 38% year-on-year. Let me now talk about our commercial engine, where the repositioning is really happening. Our order book grows at 7.9 GW, and its composition is shifting towards a diversified customer base, which helps us improve price realizations. The large accounts non-DCR order book that includes utilities, IPPs, large C&I customers, still constitutes the lion's share of our order book.

Speaker #3: The most important story is what we have accomplished, because underneath the marginal optics, this was a quarter of building and repositioning. This quarter, we clocked our highest-ever quarterly volume of 1,006 megawatts, up 32% on the same quarter last year.

Speaker #3: Revenue grew 38% year on year. Let me now talk about our commercial engine, where the repositioning is really happening. Our order book closed at 7.9 GW, and its composition is shifting towards a diversified customer base, which helps us improve price realizations.

Speaker #3: The large accounts non-DCR order book, which includes utilities, IPPs, large C&I customers, still constitutes the lion's share of our order book. On account of the ALMM 2 deferment on July 18, these projects that have been sitting in limbo are now going to move forward.

Sameer Nagpal: On account of the ALMM 2 deferment on 18 July, deals that have been sitting in limbo now are going to move forward. The 50 GW a year C&I demand that was waiting for policy clarity has resumed conversation. To serve the DCR side, the priority has been locking up cell supply. We have now multiple procurement partners for domestic sales, and the same reflects in our revenue mix starting this quarter. We have sold 76 MW of DCR modules this quarter, which exceeds the full year number for the last fiscal. In the subsequent quarters, we expect the numbers to increase manifold. Increasingly, that volume reaches the market through distribution, a channel that used to be supplementary for us and is now becoming strategic.

Speaker #3: And the 50-gigawatt-per-year CNI demand that was waiting for policy clarity has resumed conversation. To serve the DCR side, the priority has been locking up cell supply.

Speaker #3: We now have multiple procurement partners for domestic sales, and this is reflected in our revenue mix starting this quarter. We have sold 76 megawatts of DCR modules this quarter, which exceeds the full-year number for the last fiscal.

Speaker #3: In the subsequent quarters, we expect the numbers to increase many fold. Increasingly, that volume reaches the market through distribution, a channel that used to be supplementary for us and is now becoming strategic.

Speaker #3: Our monthly run rate has doubled in distribution from roughly 40 megawatts last year, and we now have a network of 119-plus distributors and over 757 dealers across the country.

Sameer Nagpal: Our monthly run rate has doubled in distribution from roughly 40 MW last year, we now have a network of 119+ distributors and over 757 dealers across the country. That reach lets us tap into policy-driven installations under the PM Surya Ghar and PM KUSUM Yojana. Our presence across 24 states and 500 districts gives us a real structural advantage in getting to those customers. Alongside distribution, we have been reshaping who we sell to, moving deliberately into the mid-market, where we have doubled our sales team this year. Vikram Solar has historically been a large account company. The right shape for a market with fewer larger customers. The market has broadened. Mid-sized EPCs and mid-sized C&I clients are a growing share of the demand pool, and we are building the sales force to match where the customers are now. It carries margin benefit too.

Speaker #3: That reach lets us tap into policy-driven installations under the PM Suryagraha and PM Kusum Yojna. And our presence across 24 states and 500 districts gives us a real structural advantage in getting to those customers.

Speaker #3: And alongside distribution, we have been reshaping who we send to, moving deliberately into the mid-market, where we have doubled our sales team this year. Vikram Solar has historically been a large account company.

Speaker #3: There is a right shift for a market with purely larger customers, but the market has broadened: mid-sized EPCs and mid-sized CNI clients are a growing share of the demand pool.

Speaker #3: And we are building the sales force to match where the customers are now. It carries margin benefit too. We expect a roughly 50-paisa-per-watt-peak higher price realization from this customer base.

Sameer Nagpal: We expect a roughly INR 0.50 per watt higher price realization from this customer base. Taken together, the DCR supply, the July deferment, unlocking decisions, the distribution ramp-up, and the mid-market build-out. That is why we are confident about Q2, FY2, and FY2. We are restructuring how this business goes to market, and the shifts we are making now are what will carry us through in the next few quarters. This is our domestic picture. Alongside it, we are widening the aperture internationally. We are accelerating our global expansion with a dedicated international team. Global buyers are diversifying their sourcing and tightening supply chain flexibility. A credible manufacturer with verifiable India-built provenance is exactly what that shift calls for. Having talked about the commercial engine, now let me move to project execution. We have stayed the course on our project expansion commitments.

Speaker #3: Taken together, the DCR supply, the July deferment, unlocking decisions, the distribution ramp-up, and the mid-market build-out—that is why we are confident about Q2, S2, and S2.

Speaker #3: We have structured how this business goes to market, and the shifts we are making now are what will carry us through in the next few quarters.

Speaker #3: This is the domestic picture. Alongside it, we are widening the aperture internationally. We are accelerating our global expansion, with a dedicated international team. Global buyers are diversifying their sourcing and tightening supply chain traceability.

Speaker #3: And a credible manufacturer with verifiable India-built provenance is exactly what that shift points towards. Having talked about the commercial engine, now let me move to project execution.

Speaker #3: We have stayed the course on our project expansion commitments. On June 29, the first module rolled out from our OneWay Kodon facility, on the date we had promised it would happen.

Sameer Nagpal: On 29 June, the first module rolled out from our Gangaikondan facility on the date we had promised it would happen. On the cell line, Gangaikondan is on schedule. Civil and PEB works are advanced. Clean room and MEP plans are on track. The first cell remains targeted for Q4 FY27, taking us to roughly 70% into backward integration. The cell plant is really one piece of a larger design. We are building all three plants, ingot, wafer, cell, and module inside a single fence at Gangaikondan because the design itself is an advantage. The capacity here is modular. Ingot and wafer scale simply with the number of pullers and slicers we install. That lets us phase capital precisely to demand and to policy and add capacity quickly once the enabling infrastructure is in place. That's the upstream story. Downstream, at the module end, the technology has moved, too.

Speaker #3: On the cell line, one-way codon is on schedule. Civil and PEB works are advanced. Clean room and MEP plans are on track. The first cell remains targeted for Q4 FY27.

Speaker #3: Taking us to roughly 70% into backward integration. And the cell plant is really one piece of a larger design. We are building all three plants—ingot, wafer, cell, and module—inside a single fence at one location, because the design itself is an advantage.

Speaker #3: The capacity here is modular. In gut and wafer scale, simply with the number of coolers and slicers we install. That lets us pace capital precisely to demand and to policy.

Speaker #3: And add capacity quickly once the enabling infrastructure is in place. That's the upstream story. Downstream, at the module end, the technology has moved too.

Speaker #3: We have transitioned our module portfolio from M10R to G12R across the platform. The conversion cost per unit flows straight through to per watt economics.

Sameer Nagpal: We have transitioned our module portfolio from M10R to G12R across the platform. Higher watt peak per module, lower conversion cost per unit, and it flows straight through to per watt economics. Both Vallam and Gangaikondan are built on substantially more automated lines than our legacy capacity, and the operating metrics already bear that out. Manpower deployment has come down by around 40% with a comparable improvement in line cycle time. Taken together, we expect substantial conversion cost optimization at these facilities relative to our older lines. The same volume that today carries a ramp of 20 will, at full utilization, be produced at a structurally lower cost per watt than anything in our existing base. Before I close, I will share one recognition from the quarter that means a great deal to us because in our industry, trust compounds.

Speaker #3: Both Vellum and Gaigai codon are built on substantially more automated lines than our legacy capacity, and the operating metrics already bear that out. Manpower deployment has come down by around 40%.

Speaker #3: With a comparable improvement in line cycle time. Taken together, we expect substantial conversion cost optimization at these facilities relative to our older lines. So, the same volume that today carries a ramp-up penalty will, at full utilization, be produced at a structurally lower cost per watt than anything in our existing base.

Speaker #3: Before I close, I will share one recognition from the quarter that means a great deal to us, because in our industry, trust compounds. Vikram Solar received the Eco Audit Platinum rating for the second time in a row, placing us in the top 1% of the 200,000 companies assessed worldwide.

Sameer Nagpal: Vikram Solar received the EcoVadis platinum rating second time in a row, placing us in the top 1% of the 200,000 companies assessed worldwide. It strengthens our standing with global buyers, lenders, and it supports the premium position we are building in the market in India, in EU, and in the US. Let me close. Stepping back from the quarter optics, here is what actually happened in a soft market. To begin, our first module rolled out of Gangaikondan on the day we promised. Our DCR supply is secure through the ramp-up. Wafer ingot breaks ground shortly. Cell plant is on track. Our go-to-market engine, distribution, mid-market, and DCR, and now international, is being rebuilt for where demand is heading. With this, I will hand over the mic now to Mr. Arun Mittal for an update on our DESH business.

Speaker #3: It strengthens our standing with global buyers and lenders, and it supports the premium position we are building in the market—in India, in the EU, and in the US.

Speaker #3: Let me close. Stepping back from the quarter optics, here is what actually happened in a soft market. We built our first module, rolled it out of the Waicodon on the day we promised.

Speaker #3: Our DCR supply is secured through the ramp-up. Wafer ingot breaks ground shortly. The cell plant is on track. Our go-to-market engine—distribution, mid-market, and DCR, and now international—is being rebuilt for where demand is heading.

Speaker #3: With this, I will hand over the mic now to Mr. Arun Mittal for an update on our best business.

Speaker #2: Thank you, Sameer. Let me share the update on the VSL Power Hive plan for this. So, VSL Power Hive has made a master plan to set up 15 gigawatts of integrated cell manufacturing and base assembly in two phases of 7.5 gigawatt-hours each.

Arun Mittal: Thank you, Sameer. Let me share the update on VSL Powerhive plan on BESS. VSL Powerhive has made a master plan of setting up 15 GW of integrated cell manufacturing and BESS assembly in two phases of 7.5 GWh each. The update on phase one is our 7.5 GWh BESS assembly plant is getting ready in Chennai. We ordered all the equipment around three months back, and the delivery of the equipment is planned in 26 November 2026. The utilities are under installation. We expect the plant to get installed in the month of January 2027. The target date for commercial operations is from March 2027. This is the update on the BESS assembly plant. We have also made significant progress on the phase one 7.5 LFP cell manufacturing plant.

Speaker #2: The update on Phase One is that our 7.5 gigawatt-hour base assembly plant is getting ready in Chennai. We ordered all the equipment around three months back, and the delivery of the equipment is planned for November 2026.

Speaker #2: The utilities are under installation. We expect the plant to get installed in the month of January '27, and the target date for commercial operations is from March '27.

Speaker #2: This is the update on the base assembly plant. We have also made significant progress on Phase One, the 7.5 GWh LFP cell manufacturing plant.

Speaker #2: So, we have shortlisted the land options in two states, and we are in active discussions with both state governments on optimizing the incentive package.

Arun Mittal: We have shortlisted the land options in two states, and we are in active discussion with both the state governments on optimizing the incentive package. We are confident of finalizing the land and the incentives by September 2026. We have also finalized the technology and manufacturing partner who will help us in setting up this 7.5 GW LFP cell manufacturing plant. We are looking at LFP Gen 2 large format cells and not the Gen 1 format. The tentative commercial operation date we are targeting is Q4 of financial year 2029. While all this is happening, also happy to share that we have launched the Powerhive brand for the C&I and the utility scale solutions. We have also executed our first order of 20 MWh utility scale solution. This is the update on the battery business of VSL Powerhive.

Speaker #2: We are confident of finalizing the land and the incentives by September 26. We have also finalized the technology and manufacturing partner, who will help us in setting up this 7.5 gigawatt LFP cell manufacturing plant.

Speaker #2: We are looking at LFP Gen 2 large format cells and not the Gen 1 format. The tentative commercial operation date we are targeting is Q4 of financial year 2029.

Speaker #2: While all this is happening, I'm also happy to share that we have launched the Power Hive brand for the CNI and utility scale solutions.

Speaker #2: And we have also executed our first order of a 20 megawatt-hour utility-scale solution. This is the update on the battery business of VSL Power Hive.

Speaker #2: I will now hand over to Mr. Ranjan Jindal.

Arun Mittal: I will now hand over to Mr. Ranjan Jindal.

Speaker #3: Thank you, Arunji. And thank you, Sameer. Good morning, everyone, again, and thank you for joining us. I am accompanied by Renal Shah from our Industrial Relations team and our advisors from India.

Ranjan Jindal: Thank you, Arun Ji. Thank you, Sameer. Good morning, everyone, again, and thank you for joining us. I am accompanied by Rinal Shah from our investor relations team and our advisors, GoIndia Advisors. Our Q1 earnings presentation is available on the exchanges and is also available on our website. Before the numbers, a quick word on the backdrop. The market around us kept expanding. India added 12 GW of solar in the quarter, with a record rooftop contribution under PM Surya Ghar Yojana and storage building in parallel. The quarter also shaped with two big policy steps. The ALMM List-II cell mandate took effect on 1 June, and on 18 July, the ministry issued the operating memorandum on ALMM List-II, giving the C&I segment a calibrated relief. Much of the industry spent the quarter absorbing the change and customer decision-making moved accordingly.

Speaker #3: Our Q1 earnings presentation is available on the exchanges. It is also available on our website. Before we get into the numbers, a quick word on the backdrop.

Speaker #3: The market around us kept expanding. India roughly added 12 gigawatts of solar in the quarter, with a record rooftop contribution under the PM Suryaghar Yojana, and storage building in Palan.

Speaker #3: The quarter also shaped the two big policy steps. The ALMN2 cell mandate took effect on 1st June, and on 18th July, the ministry issued the Operating Memorandum on ALMN2, giving the CNI segment a calibrated relief.

Speaker #3: Much of the industry spent the quarter absorbing the change, and customer decision-making moved accordingly. Revenue for the quarter was about ₹1,560 crores.

Ranjan Jindal: Revenue in the quarter was about INR 560 crores, up 88% sequentially and close to 38% year-on-year. We dispatched 1.06 GW, broadly flat in line with Q4 and up nearly 32% on the same quarter last year, which is the scale our expanded capacity is now delivering. EBITDA for the quarter was at INR 126 crores at a margin of 8.06%, and PAT was at INR 19.78 crores. EBITDA is down on the quarter, and I want to be clear about the shape of it because it is not what the sector headlines would lead us to assume. This was not a broad margin squeeze. Two things actually went in our favor. Our realization improved, and every cost line below the gross margin improved. The entire movement fits in a single line, which is the cost of goods sold. Let me now take a turn of it.

Speaker #3: Up, it is 8% sequentially, and close to 38% year on year. We dispatched 1.06 gigawatts, broadly flat in line with Q4, and up nearly 32%.

Speaker #3: On the same quarter last year, which is a scale our expanded capacity is now delivering. EBITDA for the quarter was at ₹126 crores, at a margin of 8.06%.

Speaker #3: And PAC was at ₹19.78 crores. EBITDA is down on the quarter. And I want to be clear about the shape of it, because it is not what the sector headlines would lead us to assume.

Speaker #3: This was not a broad margin squeeze. Two things actually went in our favor: our realization improved, and every cost line below the gross margin improved.

Speaker #3: The entire movement sits in a single line, which is the cost of goods sold. Let me now take a turn with it. Let us start with the realization again.

Ranjan Jindal: Let us start with the realization again, because it is the standout for the quarter. Our per watt peak realization rose to INR 15.02 per watt peak, up 8% sequentially. The driver here is the mix, not the price. As Sameer mentioned, we got about 76 MW of DCR modules in the quarter, and because DCR product carries a materially higher realization, that lifted our overall blended number. With several domestic cell procurement agreements now in place, we expect the DCR mix to rise further in the quarters to come. It helps us to see the revenue mix. Our IPP and utility business is the base load of the book, large, steady volumes, but tighter margins. The foundation everything else sits on. Mid-market and the C&I sit above that. Smaller orders that price better and lift the blended margin.

Speaker #3: Because it is a standout for the quarter. Our per optic realization rose to ₹15.02 per optic, up 8% sequentially. The driver here is the mix, not the price.

Speaker #3: As Sameer mentioned, we got about 76 megawatts of DCR modules in the quarter. And because DCR product carries a materially higher realization, that lifted our overall blended number.

Speaker #3: With several domestic cell procurement agreements now in place, we expect the DCR mix to rise further in the quarters to come. It helps us to see the revenue led.

Speaker #3: Our IPP and utility business is the base load of the book—large, steady volumes, but at the margins. It's the foundation that everything else sits on.

Speaker #3: Mid-market and the CNI sit above that, with smaller orders that price better and lift the blended margin. The distribution segment is the fastest-moving segment of the three.

Ranjan Jindal: The distribution segment is the fastest moving segment of the three and the richest on the gross margin. It was also our fast-growing channel this quarter. As the mix tilts more towards the high margin there and towards DCR product, the blended realization rises, and that is what came through the INR 15.02 per watt peak realization. Against that, our unit cost for the goods rose by INR 1.86 per watt peak in the quarter, and that single line is effective to the whole of the gross margin movement. Let me take you through what drove it, because the composition matters a great as to how this unbundled. A large part of it was war-related inflation in base metals.

Speaker #3: And the richest on the gross margin. It was also our fastest growing channel this quarter, as the mix skews more towards the high-margin layers and towards the DCR product.

Speaker #3: The blended realization rose, and that is what came through in the ₹15.02 per optic realization. Against that, our unit cost for the goods rose by ₹1.86 per optic in the quarter.

Speaker #3: And that single line is effective to the whole of the gross margin movement. Let me take you through what drove it, because the composition matters a great deal as to how this unwound.

Speaker #3: A large part of it was war-related inflation in base metals. Aluminium and copper prices ran up sharply, and those feed directly into our aluminium frames, our bus ribbon, and our interconnect ribbon, constituting about 35% of the balance of raw materials.

Ranjan Jindal: Aluminum and copper prices ran up sharply, and those feed directly into our aluminum frames, our busbar ribbon, and our interconnect ribbon, constituting about 35% of the balance of raw materials. If those metals move, a third of our input basket moves with them. On top of that, the spike in the crude oil fed into the EVA, a critical encapsulant, which is about 12% of our balance of raw materials, also saw an inflation. There is cell cost, which hit us in two ways. Chinese cell prices spiked in the previous quarter, and because that closed for inventory, it was this quarter that took the burn of it. Taken together, the great majority of this cost increase is either input price driven and will ease as metals, crude, and cell prices normalize, and as older, high-cost stock works through. We are not leaving that to inflation alone.

Speaker #3: With those metals, a third of our input basket moves with them. On top of that, the spike in crude oil went into the EVA, a critical encapsulant, which is about 12% of our balance of raw materials and also saw inflation.

Speaker #3: When there is cell cost, which hit us in two ways. Chinese cell prices spiked in the previous quarter. And because that closed for inventory, it was this quarter that took the brunt of it.

Speaker #3: Taken together, the great majority of this cost increase is either input price driven and will ease as metals, crude, and cell prices normalize, and as older high-cost stock works through.

Speaker #3: We do not have a deliberate program underway to bring conversion costs down. Value engineering across the bill of materials and alternate vendor procurement strategies are being used to broaden sourcing and lower input costs.

Ranjan Jindal: We have a deliberate program underway to bring conversion costs down. Value engineering across the bill of materials, an automated vendor procurement strategy to broaden sourcing and lower input costs, rationalizing logistics by aligning inbound and outbound movements to the production plan, moderating discretionary overheads, tightening the inventory cycle to release working capital and cut the carrying costs. Scale is what makes this program powerful. Each of these levers is a per watt saving, and with our volumes growing apace as the new lines come in, every rupee takes out per watt multiples across a larger base. The absolute saving these initiatives deliver will be substantial and will build quarter-on-quarter. Some of this is already visible in the quarter numbers. Other expenses per watt came down to 6%, and the finance cost per watt fell over 11%.

Speaker #3: Capitalizing logistics by aligning inbound and outbound payments to the production plan, moderating discretionary audits, tightening the inventory cycle to release working capital, and cutting the carrying cost.

Speaker #3: Scale is what makes this program powerful. Each of these levers is a per-watt saving, and with our volumes growing at pace as the new lines come in, every rupee taken out per watt multiplies across a larger base.

Speaker #3: So, the absolute saving initiative delivered will be substantial and will build quarter on quarter. Some of this is already visible in the quarterly numbers.

Speaker #3: Other expenses per watt came down to 6%, and the finance cost per watt fell over 11%. Employee costs stepped up modestly and deliberately, as we start the new lines ahead of the volume they will carry.

Ranjan Jindal: Employee cost stepped up modestly and deliberately as we start the new lines ahead of the volume they will carry. That absorbs as utilization builds in. These are early reads. The fuller benefit of the program will show through over the coming quarters as initiatives mature and the two ramping facilities fill out. Our balance sheet remains a genuine source of strength for us. We continue to carry no long-term debt even today. Working capital utilization came down over the quarter and the net debt to equity is almost negligible. We have not drawn on the sanctioned CapEx facilities as a drawdown is sequenced to project milestones. On the build itself, we deployed approximately INR 500 crore of CapEx this quarter, 80% towards the module facility and the balance towards the cell plant, with both programs on their committed timelines.

Speaker #3: That absorbs as utilization builds in. These are early reads. The fuller benefit of the program will show through over the coming quarters as initiatives mature and the two ramping facilities fill out.

Speaker #3: Our balance sheet remains a genuine source of strength for us. We continue to carry no long-term debt even today. Working capital utilization came down over the quarter, and the net debt-to-equity is almost negligible.

Speaker #3: We have not drawn on the sanctioned CapEx facilities, as drawdown is sequenced to project milestones. On the build itself, we deployed approximately ₹500 crore of CapEx this quarter.

Speaker #3: Eighty percent towards the modern facility and the balance towards the cell plant, with both programs on the committed timelines. Let me now put the capital plan in a single frame, because it is the heart of the overall investment case.

Ranjan Jindal: Let me now put the capital plan in a single frame, because it is the heart of the overall investment case. We are building a fully integrated platform at Gangaikondan in three stages. A 6 gigawatt module facility, which is fully funded, a 9 gigawatt cell plant currently in build, and a 9 gigawatt wafer and ingot facility, which received the board approval for increase from 6 gigawatt to 9 gigawatt yesterday. We anticipate to deploy roughly INR 4,700 crore of rest of the CapEx in this year. By 30 June, the Gangaikondan site will be live end to end. A policy aligned, margin accretive, made in India supply chain from ingot to module. Because of all three stages sit inside a single fence, co-location lets us take a large part of the fixed overhead out. One utility base, one shared infra, no transport, and no handling stages.

Speaker #3: We are building a fully integrated platform at Gandhai Kondal in three stages: a 6-gigawatt module facility, which is fully funded; and a 9-gigawatt cell plant currently in build.

Speaker #3: And a 9-gigawatt wafer and ingot facility, which received board approval for an increase from 6 gigawatts to 9 gigawatts yesterday. We anticipate deploying roughly ₹4,700 crore of the remaining CapEx this year.

Speaker #3: By 2030, the Gandhai Kondal site will be live end to end. A policy aligned margin accretive made in India supply chain from ingot to module.

Speaker #3: And because all three stages sit inside a single fence, core location lets us take a large part of the fixed overhead out. One utilities base, one shared infra, no transport and no handling stages.

Speaker #3: All of it stays within our capital discipline framework. The committed capital does not breach our leverage guardrails at peak drawdown. Growth will not come at the cost of the balance sheet.

Ranjan Jindal: All of it stays inside our capital discipline framework. The committed capital does not breach our leverage or debt rates at peak drawdown. Growth will not come at the cost of balance sheet. Let us be rest assured. The integrated site is a compounding asset. Each stage we bring in-house captures margin that currently sits with an external supplier and lowers the delivered cost of the stage below it. That is why we are investing now in the enabling infra, land, power, water, evacuation, ahead of the capacity that sits on it. When the wafer and ingot content made under ALMM firms up and our staggered wafer back DCR demand comes into the mainstream, we intend to be ready to deploy capital on augmenting wafer and ingot capacity quickly at lower incremental cost and in step with the policy.

Speaker #3: Let us be rest assured, the integrated site is a compounding asset. Each stage we bring in-house captures margin that currently sits with an external supplier, and lowers the delivered cost of the stage below it.

Speaker #3: That is why we are investing now in the emerging infrastructure—land, power, water, evacuation—ahead of the capacity that sits on it. When the wafer and ingot content made under ALMM comes up and are staggered, and wafer-back DCR demand comes into the mainstream, we intend to be ready to deploy capital.

Speaker #3: On augmenting wafer and ingot capacity quickly at lower incremental cost—and instead, with the policy in effect, we are buying the opportunity now, and buying it cheaply.

Ranjan Jindal: In effect, we are buying that opportunity now and buying it cheaply. We shared a formal outlook for FY27 on our 8 May call. Given the shape of this quarter and the ramp ahead of us, we will revisit that outlook at our H1 results again. Let me leave with you four things to take away. One, pricing power in the non-DCR market is under pressure, and our answer to that is the mix. We are steadily shifting revenue towards the higher margin mid-market and the distribution channels, and towards DCR product. The cost pressure is real, but it is identified, concentrated in one line and largely transitory. The balance sheet is effectively debt free and the integrated platform we are funding is what converts this year's investment into a structurally lower cost base and compounding returns in the years ahead.

Speaker #3: We shared a formal outlook for FY27 on our May 8th call. Given the shape of this quarter and the ramp ahead of us, we will revisit that outlook at our H1 results again.

Speaker #3: Let me leave you with four things to take away. One, pricing power in the non-DCR market is under pressure. Our answer to that is the mix.

Speaker #3: We are steadily shifting revenue towards the higher-margin mid-market and the distribution channels, and towards the DCR product. The cost pressure is real, but it is identified, concentrated in one line, and largely transitory.

Speaker #3: The balance sheet is effectively debt-free. And the integrated platform we are funding is what converts DCS investment into a structurally lower cost base and compounding returns in the years ahead.

Speaker #3: We have moved through those cycles earlier, and we know the discipline they require. With that, we will now be happy to take your questions. Thank you.

Ranjan Jindal: We have moved through those cycles earlier, we know the discipline they require. With that, we'll now be happy to take your questions. Thank you.

Speaker #1: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone.

Operator: Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Deepak Goswami from Swan Investments. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Deepak Goswani from Swan in Westminster.

Speaker #1: Please go ahead.

Speaker #2: Yes. Hi, good afternoon, team. Thank you for the opportunity. Firstly, I wanted to confirm what was the spread per watt during this quarter. Secondly, I just wanted to understand—if I heard correctly from the cost inflation point of view—that 88% of our order book had a cost escalation clause.

Deepak Goswami: Yes. Hi. Good afternoon, team. Thank you for the opportunity. Firstly, wanted to confirm, what was the spread per watt during this quarter? Secondly, just wanted to understand, if I understand correctly from the cost inflation point of view, 88% of our order book had a cost escalation clause with the clients. What was the reason this was not passed on to the customers? If you can help us understand this and along with this, ALMM has postponed to December. With this, are we seeing stabilizing in the price now, and what is the current spread at this point of time?

Deepak Purswani: Yes. Hi. Good afternoon, team. Thank you for the opportunity. Firstly, wanted to confirm, what was the spread per watt during this quarter? Secondly, just wanted to understand, if I understand correctly from the cost inflation point of view, 88% of our order book had a cost escalation clause with the clients. What was the reason this was not passed on to the customers? If you can help us understand this and along with this, ALMM has postponed to December. With this, are we seeing stabilizing in the price now, and what is the current spread at this point of time?

Speaker #2: It declines. So what led to—I mean, what was the reason this was not passed on to the customers? And if you can help us understand this. Along with this, ALMC has been postponed to December.

Speaker #2: With this, are we seeing stabilization in the price now, and what is the current spread at this point in time?

Speaker #3: Yeah. Hi, Deepak, and thanks for the question. DCL answered the second part first, which is a critical concern for all of us to think about.

Ranjan Jindal: Hi, Deepak, thanks for the question. If I answer the second part first, which is a critical concern for all of us to think about. Yes, our MSAs do have the benefit of pass through, as we have told earlier and just clarified during our earlier calls, this pass through is only for the cell and not for the BOM. In my last, as I mentioned, with the transportation and the cost of EVA and the cost of metals going up, the impact of increasing costs has also come in the BOM part, which was not being able to pass through. Even on the cell front, with lot of oversupply, it was not fairly easy for us to get fully accommodated with the selling prices with the customers.

Speaker #3: Yes, our MSS do have the benefit of pass-through, but as we have told earlier and just clarified in our earlier calls, this pass-through is only for the cell and not for the module.

Speaker #3: And we may mark, as I mentioned, with the transportation and the cost of UVA and the cost of metals going up. The impact of the increase in cost has also come in the bond part, which was not being able to pass.

Speaker #3: That is one. And even on the sell front, with a lot of oversupply, it was not fairly easy for us to get fully accommodated with the selling prices with the customers.

Speaker #3: So, the increase in cost was not fully compensated by the corresponding increase in selling price. Hence, the fall in margin. My second—back to your question one.

Ranjan Jindal: The increasing cost was not fully compensated by the corresponding increase in selling price, hence the fall in margin. If come back to your question one, it's plain maths to show that the EBITDA of INR 125 crores over a volume of 1 gigawatt effectively deliver INR 1.25 per watt here.

Speaker #3: It's a plain match to show that the EBITDA of ₹125 crore over the volume of 1 gigawatt effectively delivered ₹1.25 per watt-peak.

Speaker #2: So, with the stabilization, I mean, since ALMC has been deferred to December, we understand that now the non-DCR demand is again back into the system.

Deepak Goswami: Since ALMM has been deferred to December, we understand that now the non-DCR demand is again back into the system. In this context, where we are at current juncture on this spread part? Have we seen any hike in the spread?

Deepak Purswani: Since ALMM has been deferred to December, we understand that now the non-DCR demand is again back into the system. In this context, where we are at current juncture on this spread part? Have we seen any hike in the spread?

Speaker #2: So, in this context, where we are at the current juncture on this straight part, have we seen any hike in the spread?

Speaker #3: So, as I mentioned, with the policy vision to get fully streamlined—because the decision of the government on 18th of July to defer the date till 31st of August—was not fully in place.

Ranjan Jindal: As I mentioned, with the policy decisions to get fully streamlined, because the decision of the government on 18 July to defer the date up till 31 August was not fully in place. Let us wait for one more quarter to see as to how the overall margins on the DCRs with non-DCR panel, which will then help us formulate the yearly guidance better.

Speaker #3: So let us wait for one more quarter to see how the overall margins on the DCS with non-DCR will pan out, which will then help us formulate the yearly guidance better.

Speaker #2: Okay. And the second part of the question is on the order book front. Our current order book is somewhere close to, I think, 8 gigawatts.

Deepak Goswami: Okay. Second part of the question is on the order book front. Our current order book is somewhere close to, I think, 8 gigawatts. How much of this is executable in this year? If you can also help us understand in terms of the volume for this year, how we are looking at the current juncture now.

Deepak Purswani: Okay. Second part of the question is on the order book front. Our current order book is somewhere close to, I think, 8 gigawatts. How much of this is executable in this year? If you can also help us understand in terms of the volume for this year, how we are looking at the current juncture now.

Speaker #2: How much of this is executable this year? And if you can also help us understand, in terms of the volume for this year, how we are looking at the current juncture now.

Speaker #3: So, Deepak, again, from the production point of view, as you mentioned, on the 9th of June, we commissioned the GK model plant. So, from a capacity point of view, we are fully equipped to deliver 15.5, and can effectively deliver 9 to 9.5 for the whole year.

Ranjan Jindal: Deepak, again, from the production point of view, as we told, on 10 June, we have commissioned the GK module plant. From capacity point of view, we are fully equipped to deliver 15.5. We effectively can deliver 9 to 9.5 for the whole year, but it will all depend on how the overall market pans out. Obviously, we will not be taking up orders which will have negative margins. We'll be conscious to see as to what the overall volume hits the top line.

Speaker #3: But it will all depend on how the overall market pans out. Obviously, we will not be picking up orders that have negative margins.

Speaker #3: So we'll be conscious to see what the overall volume hits at the top line.

Speaker #2: Okay. And how much is the order executable in this year?

Deepak Goswami: Okay. How much is the order executable in this year?

Deepak Purswani: Okay. How much is the order executable in this year?

Speaker #3: Sorry, Deepak, could you please repeat that for me?

Ranjan Jindal: Sorry, Deepak. Could you repeat that for me, please?

Deepak Goswami: Can you please help us understanding, out of this 8 gigawatt order book, how much is executable in this year, in the remaining 9 months?

Deepak Purswani: Can you please help us understanding, out of this 8 gigawatt order book, how much is executable in this year, in the remaining 9 months?

Speaker #2: Can you please help us understand, out of this 8-gigawatt order book, how much is executable in this year—in the remaining three months or nine months?

Speaker #3: So, it will depend based on the plan. We did have some clarity, but now there are some changes in the plans of the customers as well.

Ranjan Jindal: It will depend. Based on the plan, we did have some clarity, but now there are some change of plans with the customers as well. Allow us 1 more quarter to have a better clarity on the year as a whole, both on volumes and the pricing front.

Speaker #3: Allow us one more quarter to have better clarity on the year as a whole, both on volumes and the pricing front.

Speaker #2: Okay. And thirdly, since we started with the DCR market and there has been some contribution from the DCR market this time, can you help us understand whether the spread for our DCR is similar to the non-DCR, or if it is lower than the DCR at this point in time for us?

Deepak Goswami: Okay. Thirdly, since we started for the DCR market and there has been some contribution on the DCR market this time. If you can help us, whether the spread for our DCR is similar to the non-DCR or it is lower than the DCR at this point of time for us.

Deepak Purswani: Okay. Thirdly, since we started for the DCR market and there has been some contribution on the DCR market this time. If you can help us, whether the spread for our DCR is similar to the non-DCR or it is lower than the DCR at this point of time for us.

Speaker #3: Sure. So this quarter, as Sameer mentioned, we delivered 76 megawatts. So it's only the ramp up; we have now started adding more volume to the DCR supplies.

Ranjan Jindal: Sure. This quarter, as Sameer mentioned, we delivered 76 MW. It is only the ramp-up. We have now started adding more of volume to the DCR supplies. Yes, the DCR obviously delivers more than what a non-DCR delivers.

Speaker #3: Yes, the DCR obviously delivers more than what the non-DCR product does.

Speaker #2: Okay. And since we had some 2-gigawatt kind of external arrangement with a third party, in that context, would this 2 gigawatt be entirely executable in this year? And would the spread be better than what we have seen at this point in time?

Deepak Goswami: Okay. Since we had some 2 gigawatt kind of external arrangement with some third party. In that context, whether this 2 gigawatt would be entirely executable in this year and spread would be better than what we have seen at this point of time?

Deepak Purswani: Okay. Since we had some 2 gigawatt kind of external arrangement with some third party. In that context, whether this 2 gigawatt would be entirely executable in this year and spread would be better than what we have seen at this point of time?

Speaker #3: Yes, yes.

Ranjan Jindal: Yes.

Speaker #2: Okay. And finally, if you can also help us on the sell line point of view, I mean, this if you can just update us on the project front point of view, are we on track to start the sell line at the end of Q4?

Deepak Goswami: Okay. Finally, if you can also help us on the cell line point of view. If you can just update us on the project trend point of view. Are we on track to start the cell line at the end of Q4?

Deepak Purswani: Okay. Finally, if you can also help us on the cell line point of view. If you can just update us on the project trend point of view. Are we on track to start the cell line at the end of Q4?

Speaker #3: Yes, Sameer here. Yes, we are on track for Q4 for sell-out and commissioning, and then after that.

Ranjan Jindal: Yes. Sameer here. Yes, we are on track for Q4 for cell line and commissioning, and then after that.

Sameer Nagpal: Yes. Sameer here. Yes, we are on track for Q4 for cell line and commissioning, and then after that.

Speaker #2: And this entire 9 gigawatt would come on stream during Q4?

Deepak Goswami: This entire 9 gigawatt would come on stream during Q4?

Deepak Purswani: This entire 9 gigawatt would come on stream during Q4?

Speaker #3: No, the entire 9 gigawatts may not come during Q4. It may spread over into the next Q1.

Sameer Nagpal: No, entire 9 gigawatts may not come during the Q4. It may spread over to the next Q1.

Speaker #2: Okay. And during Q4, what would be the kind of capacity that could come on stream?

Deepak Goswami: Okay. During Q4, what would be the kind of capacity which could come on stream?

Deepak Purswani: Okay. During Q4, what would be the kind of capacity which could come on stream?

Speaker #3: So, the 9 gigawatt capacity will get commissioned during Q4, but the ramping up may.

Ranjan Jindal: The 9 gigawatt capacity will get commissioned during Q4, but the ramping up may-

Sameer Nagpal: The 9 gigawatt capacity will get commissioned during Q4, but the ramping up may-

Speaker #2: Yeah, yeah. Ramping up, but from the commissioning point of view, we are on track, right?

Deepak Goswami: Yeah. Ramping up. From the commissioning point of view, we are on track, right?

Deepak Purswani: Yeah. Ramping up. From the commissioning point of view, we are on track, right?

Speaker #3: Yes, yes, yes. We are on track.

Ranjan Jindal: Yes. We are on track.

Sameer Nagpal: Yes. We are on track.

Speaker #2: Okay, okay. I have a follow-up. I will come in the queue. Thanks. Thanks for clearing that up. Thanks.

Deepak Goswami: Okay. I have follow-up. I will come in the queue. Thanks for clearing that. Thanks.

Deepak Purswani: Okay. I have follow-up. I will come in the queue. Thanks for clearing that. Thanks.

Speaker #3: Thank you. Thank you, sir.

Ranjan Jindal: Thank you. Thanks, Deepak.

Speaker #1: Thank you. The next question is from the line of Praveen Sahay from PL Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Praveen Sahay from PL Capital. Please go ahead.

Speaker #2: Yeah, hi. Thank you for taking my questions. Could you provide some more color on the spread? Because in this quarter, we have seen a contraction in the spread, and we have also seen the DCR numbers as a contribution increase.

Praveen Sahay: Hi. Thank you for taking my questions. Some more color on the spread, because in this quarter, we had seen a contraction in this spread as well as we had seen our DCR numbers as a contribution also have increased. You highlighted DCR has a better spread for you, compared to the non-DCR. Can you give some more color on that? Because, for DCR also, you are buying from the outside market the cell and those cells we are looking at the companies and they are reporting a very high margin. How differentiation in terms of spread DCR, non-DCR for you? Is that big delta there or just a few percentage points?

Speaker #2: Also, you highlighted that DCR has a better spread for you compared to non-DCR. So, can you give some more color on that? Because for DCR as well, you are buying from the outside market to sell, and when we look at these sales, the companies are reporting very high margins.

Speaker #2: So, how differentiating in terms of spread—DCR, non-DCR—for you, is that a big delta there, or just a few percentage points?

Speaker #3: So Praveen, as you rightly mentioned, yes, the cell manufacturers do retain most of the margins, but for us, the presence in the DCR market is what is important.

Ranjan Jindal: Praveen, as you rightly mentioned, yes, the cell manufacturers do retain most of the margins. For us, the presence in the DCR market is what is important. Maybe I repeat, the DCR will deliver and does deliver margins more than what the non-DCR would be. Why we are refraining from giving you an annual number or a guidance for the next quarter or quarters to come is that Q1 has just seen 75 megawatts of DCR. Previous volumes will now flow in, which will help us stabilize our EBITDA for WAFIC in a better form on the DCR front. Even on the non-DCR, as Sameer mentioned that the spillover of the previous quarter's inventory hit the non-DCR EBITDA for the current quarter, with the war things now getting settled.

Speaker #3: And maybe I'll repeat, but the DCR will deliver, and does deliver, margins more than what the non-DCR would be. Why we are refraining from giving you an annual number, or a guidance for the next quarter or the quarters to come, is that Q1 has just seen 75 megawatts of DCR.

Speaker #3: So, serious volumes will now flow in, which will help us stabilize our EBITDA per watt peak in a better form on the DCR front.

Speaker #3: And even on the non-DCR, as Sameer mentioned, the spillover of the previous quarter’s inventory hit the non-DCR EBITDA for the current quarter. With the war situation now getting settled, even on the non-DCR front, we expect some rationalization and clarity on the margins.

Ranjan Jindal: Even on the non-DCR front, we expect some rationalization and clarity on the margins better than what we found Q1, at least. Allow me to continue with this for the time being. Maybe in the next quarter, we will be more than keen to help you with better numbers.

Speaker #3: Better than what we saw in Q1, at least. So, allow me to continue with this for the time being. Maybe in the next quarter, we will be more than keen to help you with better numbers.

Speaker #2: Right, sir. One on the volume side, like last two quarters, Q4 and now Q1, we had done nearly one gigawatt. So also we heard one of the another player call and they highlighted about the influx of a non-DCR module in the Q1 because of all regulation change.

Praveen Sahay: Right, sir. One, on the volume side, like last two quarters, Q4 and then now Q1, we had done nearly 1 gigawatt. Also we heard another player call, they highlighted about the influx of a non-DCR module in the Q1 because of all regulation change. Is there any element to that as well reflected in your number, which is expected to normalize in the coming quarters?

Speaker #2: So is there any element of that as well reflected in your number, which is expected to normalize in the coming quarters?

Speaker #1: Yes. So, Praveen, for us anyway, the split in the revenue mix was skewed towards the DCR for this year. Having a CNI, which is a 15-gigawatt-a-year kind of a market, most of their volumes now shifting to non-DCR compared to the earlier estimate of DCR would reduce the overall country's consumption of DCR for the year.

Prashant Mathur: Praveen, for us anyway, the split in the revenue mix was skewed towards NDCR for this year. Having a C&I, which is 15 GW a year kind of a market, most of their volumes now shifting to non-DCR compared to the earlier estimate of DCR, would reduce the overall country's consumption of DCR for the year. Earlier estimate was somewhere close to about 2025. Now that number will look closer to about 17, this is our estimate.

Rinal Shah: Praveen, for us anyway, the split in the revenue mix was skewed towards NDCR for this year. Having a C&I, which is 15 GW a year kind of a market, most of their volumes now shifting to non-DCR compared to the earlier estimate of DCR, would reduce the overall country's consumption of DCR for the year. Earlier estimate was somewhere close to about 2025. Now that number will look closer to about 17, this is our estimate.

Speaker #1: Earlier, the estimate was somewhere close to about 20-25. Now, that number will look closer to about 17 pieces of our estimate.

Speaker #2: So just—I'm just clarifying on the volume side: More that there is a rough shortage/influx of non-DCR, and that's led to the very high volume of one gigawatt. Is there any element to that—will this volume continue, or do you expect in the coming quarters with normalization, it will come down?

Praveen Sahay: I'm just clarifying on the volume side more that, there is a rush or the influx of a non-DCR and that's led to the very high volume of a 1 GW. Is there any element to that? Will this volume to continue or you expect to coming quarters with the normalization it will come down?

Speaker #1: Praveen, our volume per quarter is a function of the backlog—order backlog—that we have. And our module plans are ramping up, so we do not anticipate any slowdown in that.

Prashant Mathur: Praveen, our volume per quarter are a function of the backlog, order backlog that we have and our module plants are ramping up. We do not anticipate any slowdown in that. The C&I effect is yet to come and yet to be seen in the coming quarters. The country's consumption remains on point. We did 12 GW in the last quarter, so it is not a one-off.

Rinal Shah: Praveen, our volume per quarter are a function of the backlog, order backlog that we have and our module plants are ramping up. We do not anticipate any slowdown in that. The C&I effect is yet to come and yet to be seen in the coming quarters. The country's consumption remains on point. We did 12 GW in the last quarter, so it is not a one-off.

Speaker #1: I mean, the CNI effect is yet to come and yet to be seen in the coming quarters. The country's consumption remains on point. We did 12 gigawatts in the last quarter.

Speaker #1: So, it is not a one-off.

Speaker #2: Okay, nice to hear that. The second question is related to the order book. Definitely, like 7.1 gigawatts is from the large accounts, and it's a mix of DCR and non-DCR.

Praveen Sahay: Okay. Good. Nice to hear that. Second question is related to order book. Definitely that 7.1 GW is from the large accounts and it's a mix of DCR and non-DCR. How you are anticipating, especially the spread in these particular large accounts. Because if there is some big element to that of which is cost is, as Sir has already mentioned, that only for the cell cost, there is a cost escalation clause, not for the other things. How you are looking at the spread, especially in the 7.1 GW, because the cost is still on the higher side for the related X of the cell as well.

Speaker #2: So how you are anticipating especially the spread in these particular large accounts? Because if there is a some big element to that of which is non-cost is as sir has already mentioned that the only for the sell cost, there is a cost escalation clause.

Speaker #2: Not for the other things. So, how are you looking at the spread, especially in the 7.1 gigawatt, because the cost is still on the higher side for the related X of the cell as well.

Speaker #3: So Praveen, before I start, one factual correction: the 7.1 gigawatts does not include any of the DCR business. And as we mentioned, distribution is not part of our order book.

Ranjan Jindal: Praveen, before I start, one factual correction. The 7.1 gigawatt does not include any of the DCR business. As we mentioned, distribution is not part of our order book, and the DCR today is mainly towards distribution. The 7.1 is entirely non-DCR from the order book point of view. On margin sloping point of view, again, as we saw that even if we anticipate or believe some margin to be restored there, it will all depend on how we are able to seriously get the cost pass through implemented. As you rightly told that, yes, the country is flooded with 210 gigawatts and there is a lot of oversupply. That is hitting us on the margins to some extent. And again, at the cost of repetition, allow us one more quarter to have better clarity on the margins, both on DCR and non-DCR.

Speaker #3: And the DCR today is mainly towards distribution. So the 7.1 is entirely non-DCR from the order book point of view. On the margins holding point of view, again, as we saw, even if we anticipate or believe some margin to be restored there, it will all depend on how we are able to seriously get the cost pass-through implemented. As you rightly said, the country is flooded with 210 gigawatts, and there is a lot of oversupply.

Speaker #3: So, that is hitting us on the margins to some extent. And again, at the risk of repetition, allow us one more quarter to have better clarity on the margins, both on DCR and non-DCR.

Speaker #2: Okay, sir. Lastly, on the Capex side, as you highlighted about the ₹7,470 crore for the integrated facility, can you give a timeline—like, for this year or next year—how much is the Capex plan for you?

Praveen Sahay: Okay, sir. Lastly, on the CapEx side, that is, you highlighted about the INR 4,700 crore for integrated facility. Can you give a timeline like this year, next year? How much is the CapEx plan for you?

Speaker #3: So what we can do, Praveen, as we discussed, is that the year as a whole will see us delivering the 9-gigawatt cell line. The 6-gigawatt module is fully funded.

Ranjan Jindal: What we plan to, Praveen, as we discussed that the year as a whole, we'll be delivering the 9 gigawatt cell line. The 6 gigawatt module is fully funded. We will kickstart with lower commitments on the wafer and ingots project to catch the commissioning deadline somewhere in April 2029. And as Mr. Mitchell explained, we will commission the 7.5 gigawatt module assembly, plus some contribution going towards the 7.5 gigawatt cell plant also. All going well, this year looks at an investment of about INR 5,000 crore, of which INR 500 crore has already gone, of which we've not taken any debt up till now. We'll start the disbursements somewhere in the end of this month. Major money is coming in from the debt to fund the project.

Speaker #3: It will kickstart with lower commitments on the wafer and ingot project to catch the commissioning deadline somewhere in Q2 or Q3. And as Mr. Mitchell explained, we will commission the 7.5-gigawatt module assembly, plus some contribution going towards the 7.5-gigawatt cell plant also, all going well.

Speaker #3: This year looks at an investment of about ₹5,000 crore, of which ₹500 crore has already gone. We have not taken any debt up till now.

Speaker #3: We'll start the disbursement sometime at the end of this month. The major funding is coming in from the debt to finance the project.

Speaker #2: Okay. So, ₹500 crore you had already reached.

Praveen Sahay: Okay, INR 500 crore you had already-

Operator: Sorry to interrupt. Sorry to interrupt, Mr. Praveen. Could you please rejoin the queue-

Speaker #4: Sorry to interrupt. Mr. Praveen, could you please rejoin the queue for any follow-ups? Thank you. The next question is from the line of Sahil Sheikh from Anand Rathi Institutional Equities.

Praveen Sahay: Sorry, yeah.

Operator: For any follow-ups?

Praveen Sahay: Sure.

Operator: Thank you. The next question is from the line of Sahil Sheikh from Anand Rathi Institutional Equities. Please go ahead.

Speaker #4: Please go ahead.

Speaker #5: Hello, sir. Sir, just a follow-up to the previous question where you said our entire order book is based on a non-DCR order book. I just had a question: since we are tying up to procure external domestic sales, are those DCR modules only servicing your distribution network?

Sahil Sheikh: Hello, sir. Sir, just a follow-up to the previous question where you said our entire order book is based on a non-DCR order book. I just had a question that, since you are tying up to procure external domestic cells, is that those DCR modules only servicing to your distribution network?

Ranjan Jindal: The DCR cells will primarily service distribution network, but some of it will also go towards mid-market in the months going forward.

Speaker #3: The DCR sales will primarily service the distribution network, but some of it will also go towards the mid-market in the months going forward.

Speaker #5: So currently on the.

Sahil Sheikh: Currently on the-

Speaker #3: When we add that, once our cell line is commissioned, or is closer to commissioning, we will start building the order book for the large accounts.

Ranjan Jindal: May I add that once our cell line is commissioned or is closer to commissioning, we will start building order book for the large accounts.

Speaker #5: Okay, sir. And sir, on the distribution side, in terms of realization, those DCR modules would be booked on the spot price. Am I correct in understanding that?

Sahil Sheikh: Okay, sir. Sir, on the distribution side, in terms of realization, those DCR modules will be booked on the spot price. Am I correct in understanding that?

Speaker #3: Yes, that's right.

Ranjan Jindal: Yes, that's right.

Speaker #5: Okay. And, sir, what would be the difference in margin between your distribution segment versus your large account or mid-market segment?

Sahil Sheikh: Okay. Sir, what would be the difference in margin between your distribution segment versus your large account or mid-market segment?

Speaker #3: Yeah, but price realization ranges between ₹1.00 to ₹1.50 better over key accounts or large accounts. That's all I can say right now.

Ranjan Jindal: Yeah. Our price realization ranges between INR 1 to 1.5 better over key accounts or large accounts. That's all I can say right now.

Speaker #5: Okay, sir. Thank you. That was helpful.

Sahil Sheikh: Okay, sir. Thank you. That was helpful.

Speaker #4: Thank you. The next question is from the line of Bala Murali Krishna from Onam Investment Advisors. Please go ahead.

Operator: Thank you. The next question is from the line of Bala Murali Krishna from Ownum Investment Advisors. Please go ahead.

Bala Murali Krishna: Hi, Prashant. From the conversation, margins were hit this quarter, from the conversation, I think in the next quarter, in Q2 also, it's unlikely to get the margin back to the 16% range. Is it so? Could you please, is it the way to look at them?

Speaker #2: How are you doing? So from the conversation, the margins were hit this quarter, but from the conversation, I think in the next quarter, in Q2, also, it's unlikely to get the margin back to the 16% range.

Speaker #2: Is it true? Could you please— I think that is the way to look at it.

Speaker #4: Sorry to interrupt. Mr. Balas Murali, could you please come closer to the mic? Or, if you're using a handset, could you please fix it?

Operator: Sorry to interrupt. Mr. Bala Murali, could you please come closer to the mic, or if you're using a handset, could you please fix it? You're not audible.

Speaker #4: You're not audible.

Speaker #2: Yeah, yeah. Is it okay now?

Bala Murali Krishna: Yeah. Is it okay now?

Speaker #4: A little louder.

Operator: A little louder.

Speaker #2: Yeah, yeah. Yeah, in terms of margin point of view, from the conversation I think getting the previous margin—16%—is very unlikely in Q2 also.

Bala Murali Krishna: Yeah. From margin point of view, from the conversation, I think getting the previous margin 16% is very unlikely in Q2 also. Is it the way to look at this one, or are there any thoughts on that one?

Speaker #2: Is that the way to look at this one, or do you have any thoughts on that one?

Speaker #3: So, Bala, that will not be a direct conclusion but, yes, even in Q2 we will have some hit from this impact of the prices not getting absorbed.

Ranjan Jindal: Bala, that will not be a direct conclusion. Yes, even Q2, we will have some effect of this impact of the prices not getting absorbed. As Samir explained that the focus towards the channel market with more of DCR coming in will help us garner better margins in Q2. Let's wait for 90 more days and hopefully we will be having a healthy discussion on that day.

Speaker #3: But as Sameer explained, the focus towards the channel market, with more of DCR coming in, will help us garner better margins in Q2.

Speaker #3: So let's wait for 90 more days, and hopefully we'll be having a healthy discussion on that day.

Speaker #2: Yeah, I understand that the LMM2 extension could have caused some issues for players who are very strong in the DCR segment. But since we are not in the DCR segment till now, and we have mostly been purely supplying to the non-DCR category, how has this impacted us so badly compared to other players, where they have reported only a one or two percent drop in margins, whereas our margins have almost been hit by 50%?

Bala Murali Krishna: I understand that LMM2 extension could have caused some issue to the players who are very much strong in the DCR segment. As we are not in the DCR segment till now and we are mostly purely supplying to non-DCR category, how this could have impacted us very badly as compared to other players where they have reported only 1% or 2% drop in margins and our margins are almost hit by 50%? Could you please expand a little bit more on the same?

Speaker #2: Could you please explain a little bit more on that?

Ranjan Jindal: The deferment has made the C&I segment active again on non-DCR procurements, that will help us increase the volumes in terms of order book and also get a little better price realization on the non-DCR segment. That will be positive for us.

Speaker #3: See, the deferment has made the CNI segment active again on non-DCR procurements. That will help us increase volumes in terms of the order book and also achieve a little better price realization on the non-DCR segment.

Speaker #3: That will be a positive for us.

Speaker #2: Yeah, I understand that. That's what I also thought. So it would be helpful for our organization, as we don't have a sell facility as of now.

Bala Murali Krishna: I understand that. That's what I also thought. It could be helpful for our organization as we don't have cell facility as of now. It could improve the non-DCR market. This margin front, how it impacted these margins badly to us as compared to other peers? That's been my question.

Speaker #2: It would improve the non-DCR market. But on the margin front, how would this impact margins negatively compared to other peers? There's been a question there.

Speaker #3: So, Bala, if I've understood you properly, you want us to be compared with our peers on the EBITDA margin front. This is nothing but an outcome of the captive sales coming in.

Ranjan Jindal: Bala, if I've understood you properly, you want us to get compared with the peers on the EBITDA margin front. This is nothing but an outcome of the captive cells coming in. Our focus presently is towards shifting towards the retail channels which helps us garner more profits. Anyway, we don't have the cell till end of this year.

Speaker #3: So, more of our focus presently is toward shifting to the retail channels, which help us garner more profits. Anyway, we don't have to sell till the end of this year.

Speaker #2: Okay, understood. Okay, that's all from us. Thank you.

Bala Murali Krishna: Okay, understood. Okay, that is all from us. Thank you.

Speaker #4: Thank you. A reminder for all participants: please press star and one to ask a question. Participants who wish to ask a question may press star and one.

Operator: Thank you. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question may press star and one. The next question is from the line of Vishant Shah from Adani Properties Private Limited. Please go ahead.

Speaker #4: The next question is from the line of Vishansha from Adani Properties Private Limited. Please go ahead.

Speaker #2: Hello and audible?

Vishant Shah: Hello, am I audible?

Speaker #4: Yes, you're audible.

Operator: Yes, you are audible.

Vishant Shah: My question is that when can we expect the normal range of EBITDA margin in the current quarters and as compared to the peers, what is your future visibility?

Speaker #2: So my question is, when can we expect a normal range of EBITDA margins in the upcoming quarters? When do we anticipate reaching that level, and compared to our peers, what is our future visibility?

Vishant Shah: My question is that when can we expect the normal range of EBITDA margin in the current quarters and as compared to the peers, what is your future visibility?

Speaker #3: See, once our cell line is commissioned, I think the peer comparison will only play out then. Different players are at different stages of their cell line commissioning, and there are also a lot of current module manufacturers who do not have plans to go into cell lines.

Ranjan Jindal: Once our cell line is commissioned, I think the two peer comparison will play out only then. Different players are in different stages of their cell line commissioning, and there are also a lot of current module manufacturers who do not have plans to go into cell line. Any peer comparison at this point of time is very difficult to do.

Speaker #3: So any peer comparison at this point in time is very difficult to do.

Speaker #2: Okay. And what about the EBITDA margin normally?

Vishant Shah: What about the EBITDA margin normally?

Speaker #3: Until our sell line comes up, our EBITDA margins will be determined by the non-DCR business. And once the sell line commissions and as we get into the DCR order book, the margins will show expansion because then it will capture the sell margins also.

Ranjan Jindal: Till our cell line comes up, our EBITDA margins will be determined by the non-DCR business. Once the cell line commissions and as we get into the DCR order book, the margins will show expansion because then it will capture the cell margins also.

Speaker #2: Okay, thank you.

Vishant Shah: Okay, thank you.

Speaker #4: Thank you. The next question is from the line of Karan Gupta from Asset Siv Mehta Investment. Please go ahead.

Operator: Thank you. The next question is from the line of Karan Gupta from Axis C. Mehta Investments. Please go ahead.

Speaker #5: Hello. Am I audible?

Karan Gupta: Hello. Am I audible?

Speaker #4: Yes, Karan, you're audible.

Operator: Yes, Karan, you're audible.

Speaker #5: Okay, so my question is on the LLM side. How much is the eligible book size in the industry which is allowing NDCR—basically zero CI and rooftop thing?

Karan Gupta: Okay. My question is on the ALMM side. How much is the eligible book size in the industry, which is allowing non-DCR? Basically your C&I and rooftop thing.

Speaker #3: See, if you look at the grandfathered projects which were allowed for non-DCR, the estimate was around 80 gigawatts. But now, with the extension of the LMM2, the current CNI requirement will also shift to non-DCR.

Sameer Nagpal: If you look at the grandfathered projects which were allowed for non-DCR, the estimate was around 80 gigawatts. Now with the extension of the ALMM-2, the current C&I requirement will also shift to non-DCR, so the eligible volume will get topped up.

Speaker #3: So, the eligible volume will get topped up.

Speaker #5: Okay, okay. So in overall solar industry projects, what is the percentage of this CNI and your rooftop? So that is something that I want to know.

Karan Gupta: Okay. In overall solar industrial projects, what is the percentage of this C&I and your rooftop? That is something that I want to know. The order book, which is coming from the C&I and your rooftop in the overall project.

Speaker #5: The order book, which is coming from the CNI and your rooftop, overall project.

Prashant Mathur: C&I, as a whole, and that includes the rooftop as well, rooftop C&I as well, is 15 gigawatts a year kind of a market, of which roughly six to seven comes from rooftop and the rest is through open access from mountain foot. This compared to your overall country's consumption on an AC level of 45 to 50 gigawatts. That's the proportion of C&I as a factor of the entire consumption in the country.

Speaker #6: So CNI as a whole and that includes the rooftop as well, rooftop CNI as well, is 15 gigawatt a year kind of a market.

Rinal Shah: C&I, as a whole, and that includes the rooftop as well, rooftop C&I as well, is 15 gigawatts a year kind of a market, of which roughly six to seven comes from rooftop and the rest is through open access from mountain foot. This compared to your overall country's consumption on an AC level of 45 to 50 gigawatts. That's the proportion of C&I as a factor of the entire consumption in the country.

Speaker #6: Of which, roughly 6 to 7 comes from rooftop, and the rest is through open access, ground-mount input. This, compared to your overall country's consumption on an AC level of 45 to 50 gigawatts, that's the proportion of CNI as a factor of the entire consumption in the country.

Speaker #5: Okay, okay. So, on the sell side, have you worked on the numbers—what is the cost of cell production and doing backward integration?

Karan Gupta: Okay. On the cell side, have you worked on the numbers that what is the cost of cell production? Doing backward integration, ultimately your margins will go up and it will be comparable with your peers. Looking at the peers, consuming the cells in-house, whatever the margins right now they have, right? As and when their production of the cell or the facilities or the capacity is increasing, the margin benefit is not coming into the numbers. What's your analysis on that? Also, what is the cell price that you are importing from China right now after the rebate they've given on their products for their export? What is the cell price right now, imported cell price, and what is the domestic cell price?

Speaker #5: It will ultimately your margins will move up and it will be compared comparable with the peers. But looking at the peers, consuming the sells in-house the whatever the margins right now they have, right, and as in when they're production of the cell or the facilities or the capacity is increasing, the margins benefit is not coming into the numbers.

Speaker #5: So, what's your analysis on that? And also, what is the sell price that you are importing from China right now, after the rebate they've revoked on their products or their exports?

Speaker #5: What is the current sell price, the imported sell price, and what is the domestic sell price?

Sameer Nagpal: Let me answer the first part.

Speaker #3: Let me answer the first part. See, our cell prices are one of the most modern lines which are being put up. So, our cost of manufacturing of cells will be one of the best in India.

Sameer Nagpal: See, our price are one of the most modern lines which are being put up. Our cost of manufacturing of cell will be one of the best in India. To that extent, we will get the benefit of margins based on that cell cost. The DCR module pricing is very different from non-DCR, and their margin comes into play because of the pricing impact as well as cell cost, in addition to the cell cost. That's on the DCR side. On the Chinese cell, if I correct this number, today we're at $0.04 on landed price basis.

Speaker #3: So, to that extent, we will get the benefit of margins based on that sell cost. The DCR module pricing is very different from non-DCR, and their margin comes into play because of the price impact as well as the sell cost, in addition to the sell cost.

Speaker #3: So that's on the DCR side.

Speaker #2: And on the Chinese cell, if I correct these numbers today, they are at 4 cents, on a market price basis.

Karan Gupta: Sorry. I didn't get that.

Speaker #5: Sorry. I didn't get that.

Speaker #6: But I mentioned the spot price for the Chinese-imported cells is $0.04, and over that, there is, of course, the PBC of 27.5%. So, that is the procurement cost as of today.

Prashant Mathur: He mentioned the spot price for the Chinese imported cells is $0.04, and over that, there is of course, the BCD of 27.5%. That is the procurement cost as of today.

Rinal Shah: He mentioned the spot price for the Chinese imported cells is $0.04, and over that, there is of course, the BCD of 27.5%. That is the procurement cost as of today.

Speaker #5: Okay, okay. Thank you.

Karan Gupta: Okay. Thank you.

Speaker #4: Thank you. The next question is from the line of Siddharth from NAFA Capital Advisors. Please go ahead.

Operator: Thank you. The next question is from the line of Sidharth from NAFA Capital Advisors. Please go ahead.

[Company Representative] (NAFA Capital Advisors): Hello there. My set of question is regarding the whole oversupply scenario that's being popped out. There's one set of argument that's being said where the most backward integrated players will be the ones who stand out, and there'll be a supply shortage wherein only the most backward integrated player right from the silicon wafer is who's going to contribute to the future supply. I just want some light of you on the whole industry scenario that's going on, how it's going to pan out. Second thing, what is your plans on your backward integration? Do you plan to integrate all the way till polysilicon, where the industry leaders like Waaree and Premier are planning to? Just want to get some light on it. It'll be really helpful.

Sidharth Navaneeth: Hello there. My set of question is regarding the whole oversupply scenario that's being popped out. There's one set of argument that's being said where the most backward integrated players will be the ones who stand out, and there'll be a supply shortage wherein only the most backward integrated player right from the silicon wafer is who's going to contribute to the future supply. I just want some light of you on the whole industry scenario that's going on, how it's going to pan out. Second thing, what is your plans on your backward integration? Do you plan to integrate all the way till polysilicon, where the industry leaders like Waaree and Premier are planning to? Just want to get some light on it. It'll be really helpful.

Speaker #2: Hello there. So my set of questions is regarding the whole oversupply scenario that's being talked about. There's one set of arguments that's being made where the most backward integrated players will be the ones who stand out, and there will be a supply shortage wherein only the most backward integrated player, right from the silicon wafer, is going to contribute to the future supply.

Speaker #2: So I just want some light from you on the whole industry scenario that's going on—how it's going to pan out. And second thing, what are your plans on your backward integration?

Speaker #2: Do you plan to integrate all the way to polysilicon, where the industry leaders like Vare and Premier are planning to? Just helpful.

Speaker #3: See, the whole backward integration and Make in India is driven by policy. As policy progresses, we will keep pace with it. At this point in time, our cell line will get commissioned in Q4, as we have said.

Sameer Nagpal: See, the whole backward integration and Make in India is driven by policy. As policy progresses, we will keep pace with it. At this point of time, our cell line will get commissioned in Q4 as we have said. We will announce next month groundbreaking for our wafer and ingot capacity, for which board has already given us approval. This will be 9 gigawatts. 9 gigawatts cell, 9 gigawatts wafer ingot, and 15.5 gigawatts of module is where we are at this point of time. As the policy evolves, we will keep pace with the policy. I agree with what you said. Even where the policy is taking manufacturing in India, those who are not able to backward integrate, that capacity will get consolidated or rationalized. As we go forward, we expect a much smaller capacity to serve Indian market.

Speaker #3: We will announce next month the groundbreaking for our wafer and input capacity, for which the Board has already given us approval. This will be 9 gigawatts.

Speaker #3: So, 9 gigawatt cell, 9 gigawatt wafer, and 15.5 gigawatt of module is where we are at this point in time. As the policy evolves, we will keep pace with the policy.

Speaker #3: And I agree with what you said. Given the way the policy is taking manufacturing in India, those who are not able to backward integrate—their capacity will get consolidated or rationalized.

Speaker #3: And as we go forward, we expect much smaller capacity to serve the Indian market. By smaller, I mean adequate enough to serve the Indian market, but not have very, very significant overcapacity as we are experiencing today.

Sameer Nagpal: By smaller, I mean adequate enough to serve Indian market, but not have very significant overcapacity as we are experiencing today. It's a transition which should get settled over next few quarters.

Speaker #3: It's a transition which should get settled over the next few quarters.

[Company Representative] (NAFA Capital Advisors): Understood. That's pretty much and wish you all the best.

Sidharth Navaneeth: Understood. That's pretty much and wish you all the best.

Speaker #2: Understood. So that's pretty much it, and I wish you all the best.

Speaker #3: Thank you, thank you.

Sameer Nagpal: Thank you.

Operator: Thank you. The next question is from the line of Bhagwat from Prosperity Wealth Management Private Limited. Please go ahead.

Speaker #4: Thank you. The next question is from the line of Bhagwat from Prosperity Wealth Management Private Limited. Please go ahead.

[Company Representative] (Prosperity Wealth Management): Thank you for the opportunity. You mentioned about the raw material cost increase impact on EBITDA margin. Your outlook on margin for the remaining quarters of the year, are you expecting EBITDA margin of 8% approximately during this Q1 to continue for next 3 quarters of the year till the time as our sale line would only come in Q4? Also in line with that, if you could comment on the FY27 EBITDA guidance of INR 1,500 to INR 1,600 that SAU has earlier given.

Bhagwat Nayak: Thank you for the opportunity. You mentioned about the raw material cost increase impact on EBITDA margin. Your outlook on margin for the remaining quarters of the year, are you expecting EBITDA margin of 8% approximately during this Q1 to continue for next 3 quarters of the year till the time as our sale line would only come in Q4? Also in line with that, if you could comment on the FY27 EBITDA guidance of INR 1,500 to INR 1,600 that SAU has earlier given.

Speaker #5: Thank you for the opportunity. You mentioned the impact of raw material cost increases on medical margins. So, regarding your outlook on margins for the remaining quarters of the year, are you expecting a similar margin of approximately 8% during this Q1 to continue for the next few quarters of the year?

Speaker #5: Till the time as our sale line will only come in Q4. And also, in line with that, if you could comment on the FY27 EBITDA guidance of 1,500 to 1,600, that's our earlier given.

Speaker #3: So, with whatever I could gather, you are expecting us to give some clarity on the guidance. So, as I mentioned, let us reconnect again in a bit this year.

Ranjan Jindal: With whatever I could gather, you are expecting us to give some clarity on the guidance. As I mentioned, let us reconnect again end of mid of this year with more clarity on the DCR pricing with more of penetration into the distribution market and the policy framework which now has allowed non-DCR to get absorbed up till 31 December. That I think will be a better way of consolidating us the whole year of FY27.

Speaker #3: With more clarity on the DCR pricing, with greater penetration into the distribution market, and the policy framework which now has allowed non-DCR to get absorbed up to December 31st.

Speaker #3: So, that I think will be a better way of consolidating us through the whole year of '27. If I may add, you know, the reason we're saying give us time is that we've seen a policy get implemented and then get deferred, because the reality of where our cell manufacturing is as a country was very different from what was the expectation.

Sameer Nagpal: If I may add, why we are saying that give us time, that we have seen a policy getting implemented and then getting deferred because the reality of where our cell manufacturing is as a country was very different from what was the expectation. These conversations are still ongoing. There is further discussion going on if any further extension of ALM2 timelines is required or not. Till those discussions get settled, we do not know how policy waivers will work. That is the reason we are little waiting and to get clarity on this topic so that we can make better guidance for you.

Speaker #3: These conversations are still ongoing. There is further discussion happening on whether any further extension of ALMM2 timelines is required or not. So, until those discussions are settled, we do not know how the policy framework will work.

Speaker #3: And that is the reason we are waiting a little, to get clarity on this topic, so that we can provide better guidance for you.

Speaker #2: Okay. Understood.

[Company Representative] (Prosperity Wealth Management): Okay. Understood. If the current situation continues, can we expect a similar sort of margin 8% or do you expect the margin to go further down also?

Bhagwat Nayak: Okay. Understood. If the current situation continues, can we expect a similar sort of margin 8% or do you expect the margin to go further down also?

Speaker #5: But if the current situation continues, should we expect a similar sort of margin around 8%, or do you expect the margin to go further down as well?

Speaker #3: This quarter has been impacted, as we said, both by forex, by the Middle East war, cost escalations, etc. Some of these factors are continuing.

Sameer Nagpal: This quarter has been impacted as we said, both by Forex, by Middle East war, cost escalations, et cetera. Some of these factors are continuing, some are moving. If there is no change in any of the environment and competitive intensity remains where it is, we expect it to go down by the way, because of the extension. Margins should broadly trend in this space but could get better.

Speaker #3: Some are moving, so we will have to. If there is no change in any of the environment and competitive intensity remains where it is—we expect it to go down, by the way, because of the extension.

Speaker #3: So, margins should broadly trend in this space but could get better.

Speaker #5: Okay, okay, okay. Thank you so much for that.

[Company Representative] (Prosperity Wealth Management): Okay. Thank you so much for that.

Bhagwat Nayak: Okay. Thank you so much for that.

Speaker #4: Thank you. The next question is from the line of Mohammed Tahan Sari from Taha Capital Management. Please go ahead.

Operator: Thank you. The next question is from the line of Mohammed Tahan Sari from Taha Capital Management. Please go ahead.

Speaker #6: Hi, good afternoon, and thanks for the opportunity. Sir, my very first question is: What is the total saleable gigawatt in Q1 FY27? In Q4 FY26, management had mentioned reaching around 7 to 8 gigawatts of module in FY27.

Mohammed Tahan Sari: Hi, good afternoon and thanks for the opportunity. My very first question goes to, in Q1 FY2027, our total sellable module stands to around 1 GW. In Q4 FY2026, management has given a guidance for the production of module to reach around 7 to 8 GW in FY2027 end. Do we still follow that guidance only or if management will like to slightly change the guidance as per the current scenarios? That's my very first question of mine.

Mohammed Taha Ansari: Hi, good afternoon and thanks for the opportunity. My very first question goes to, in Q1 FY2027, our total sellable module stands to around 1 GW. In Q4 FY2026, management has given a guidance for the production of module to reach around 7 to 8 GW in FY2027 end. Do we still follow that guidance only or if management will like to slightly change the guidance as per the current scenarios? That's my very first question of mine.

Speaker #6: And so, do we still follow that guidance only, or is management looking to slightly change the guidance as per the current scenarios? So, that's my very first question.

Speaker #3: Yes. As we have explained, these ALMM 2 policy changes have made our customers a little tentative in terms of when they want to procure the modules.

Sameer Nagpal: Yes. See, as we've explained, this ALM2 policy changes have made our customers little tentative in terms of when they want to procure the modules. As I said, there is a grandfather list of projects which we will procure non-DCR. They have two issues. One issue is around this policy changes make the prices in the market little more volatile, they wait and watch. Second is they are facing their own challenges around the infrastructure, clarity, land, evacuation, etc., which is making the procurement a little slow. They are all working towards making it as fast as it can go. We are also watching to see how that pans out. Combination of these two factors, we are not updating any guidance at this point of time. We are waiting for clarity to emerge.

Speaker #3: As I said, there is a grandfather list of projects which we will procure non-DCR. They have two issues. One issue is that these policy changes make the prices in the market a little more volatile.

Speaker #3: So they wait and watch. Second is, they are facing their own challenges around infrastructure clarity, land, evacuation, etc., which is making the procurement a little slow.

Speaker #3: They are all working towards making it as fast as it can go. We are also watching to see how that pans out. So, a combination of these two factors means we are not updating any guidance at this point in time.

Speaker #3: We are waiting for clarity to emerge.

Speaker #6: Okay, got it. The second one from my side is: at what sales realization does the CMQ, in FY27, stand? I think it’s around 15 rupees per watt, not 215 rupees per watt.

Mohammed Tahan Sari: Okay. Got it. The second one from my side is, as of what sales realization as I see in Q1 FY2027 stands to around I think INR 15 per watt, north to INR 15 per watt. That's really good when we compare to the whole FY2026. What's the reason for this good sales realization as well as in FY2027, if you like to give any revenue or sales realization per watt electric, which can be finalized what under FY2027?

Mohammed Taha Ansari: Okay. Got it. The second one from my side is, as of what sales realization as I see in Q1 FY2027 stands to around I think INR 15 per watt, north to INR 15 per watt. That's really good when we compare to the whole FY2026. What's the reason for this good sales realization as well as in FY2027, if you like to give any revenue or sales realization per watt electric, which can be finalized what under FY2027?

Speaker #6: That's really good when you compare it to the whole financial year '26. So, what's the reason for this good sales realization? Also, for FY27, if you'd like to give any revenue or sales realization guidance or any metric that might help us understand how things will stabilize in FY27?

Speaker #3: So with what you see, the realization of ₹15 per watt peak for the quarter is a blend of DCR and non-DCR both, wherein DCR, as you know, has fetched about ₹21–22 plus.

Ranjan Jindal: Mr. Sari, you see the realization of INR 15 per watt peak for the quarter is a blend of DCR and non-DCR both, wherein DCR as you know has fetched about INR 21, INR 22 plus. Going forward, it'll all be as to how the penetration into the distribution market will work out to be to see as to what the overall

Speaker #3: Going forward, it will all depend on how the penetration into the distribution market works out. We will have to see what the overall blended ASP for Q2 and the quarters to come will be.

Sameer Nagpal: Blended ASP for Q2 and the quarters to come would be. I would like to add that we expect our DCR business to grow two to two and a half times every quarter. That's the frame we have put together.

Speaker #3: And I would like to add that we expect our DCR business to grow 2 to 2.5 times every quarter. So that's the frame we have put together.

Speaker #6: Got it. That's really good. Sir, the next question is on the EBITDA side. We see that in Q1 FY27, EBITDA per watt decreased significantly, and you mentioned the reasons for the same.

Mohammed Tahan Sari: Okay, sir. That's really good. Sir, the next one is on the EBITDA side. As we see that, in Q1 FY27, EBITDA per watt decreased significantly, and you told the reasons for the same, and it's really fine. If you can give some light onto what EBITDA per watt we can achieve by the end of FY27 before the cell plant comes and accordingly with the capacity we have as of now. Hello?

Mohammed Taha Ansari: Okay, sir. That's really good. Sir, the next one is on the EBITDA side. As we see that, in Q1 FY27, EBITDA per watt decreased significantly, and you told the reasons for the same, and it's really fine. If you can give some light onto what EBITDA per watt we can achieve by the end of FY27 before the cell plant comes and accordingly with the capacity we have as of now. Hello?

Speaker #6: And it's really fine. But if you can shed some light on what EBITDA per watt we can achieve by the end of FY27, before the cell plant comes in, and, accordingly, what capacity we have as of now.

Speaker #6: Hello?

Sameer Nagpal: Yeah. Sorry. As we mentioned, you'll have to bear with us for another 90 days for this, so we'll have clarity on the overall business.

Speaker #3: So, yeah, I'm sorry. As you mentioned, you'll have to bear with us for another 90 days for this. So, let us have clarity on the overall business.

Sameer Nagpal: Yeah. Sorry. As we mentioned, you'll have to bear with us for another 90 days for this, so we'll have clarity on the overall business.

Speaker #6: Okay, so for EBITDA per watt by the end of FY27, maybe next quarter we can get a better idea for the same, I hope.

Mohammed Tahan Sari: Okay, for EBITDA per watt by the end of FY27, or maybe next quarter, we can get a better idea for the same, I hope.

Mohammed Taha Ansari: Okay, for EBITDA per watt by the end of FY27, or maybe next quarter, we can get a better idea for the same, I hope.

Speaker #3: Sure.

Sameer Nagpal: Sure.

Speaker #6: And sir, the very last question from my side is about the cell plant. As we already said, the cell plant might be coming by the end of FY27.

Mohammed Tahan Sari: Sir, the very last question from my side is about the cell plant. As you already said that cell plant might be coming by the end of FY27. Let's say if the cell plant gets commissioned on time, what can be the capacity utilization in FY28 for the cell plant, if you can say?

Mohammed Taha Ansari: Sir, the very last question from my side is about the cell plant. As you already said that cell plant might be coming by the end of FY27. Let's say if the cell plant gets commissioned on time, what can be the capacity utilization in FY28 for the cell plant, if you can say?

Speaker #6: So, let's say if the cell plant gets commissioned on time, what can be the capacity utilization in FY28 for the cell plant, if you can give?

Speaker #7: Yeah. So, assuming the six-month ramp-up, which is the standard industry practice, for the full year, the entire 9 gigawatts will be available to us. The utilization that we are targeting is about 40 to 50 percent.

Prashant Mathur: Yeah. Assuming a 6 months ramp, which is the standard industry practice. For the full year, the entire 90GW available to us, the utilization that we are targeting is about 40% to 50% for the first year, where 6 months will be spent in ramping up the line.

Rinal Shah: Yeah. Assuming a 6 months ramp, which is the standard industry practice. For the full year, the entire 90GW available to us, the utilization that we are targeting is about 40% to 50% for the first year, where 6 months will be spent in ramping up the line.

Speaker #7: For the first year, six months will be spent ramping up the line.

Speaker #6: Okay, great. So, 40 to 50 percent we can expect for cell plant.

Mohammed Tahan Sari: Okay, great. 40% to 50% we can expect for cell plant.

Mohammed Taha Ansari: Okay, great. 40% to 50% we can expect for cell plant.

Speaker #7: The full year. Annually. Right.

Prashant Mathur: For the full year. Annualized, right.

Rinal Shah: For the full year. Annualized, right.

Speaker #6: For the full year, obviously. Now, the very next one is, let's say we have a DCR order book of around 2 gigawatts as of now.

Mohammed Tahan Sari: For the full year, obviously. Ma'am, the very next thing is, let's say we have a DCR order book of around 2GW as of now. For the same, we have partnered with one of the listed player to supply cell to us for the completion of that order book. I need to understand that, if you can tell what cost per watt or the at what cost are we expecting-

Mohammed Taha Ansari: For the full year, obviously. Ma'am, the very next thing is, let's say we have a DCR order book of around 2GW as of now. For the same, we have partnered with one of the listed player to supply cell to us for the completion of that order book. I need to understand that, if you can tell what cost per watt or the at what cost are we expecting-

Speaker #6: And for the same, we have partnered with one of our listed players to supply cells to us for the completion of that order book.

Speaker #6: So I need to understand, if you can tell, what cost per watt or at what cost per watt we are talking about.

Speaker #4: Sorry to interrupt. Hello, yes. Could you please get in the queue for any follow-up questions?

Operator: Sorry to interrupt.

Mohammed Tahan Sari: Hello?

Mohammed Taha Ansari: Hello?

Operator: Sorry to interrupt. Could you please Hello? Yes. Could you please get in the queue for any follow-up questions?

Speaker #6: Okay, sure. Thanks. Sure, sure.

Mohammed Tahan Sari: Okay, sure. Thanks.

Mohammed Taha Ansari: Okay, sure. Thanks.

Speaker #4: Thank you. The next question is from the line of Hritesh Abhi from Kingsman Wealth Fund. Please go ahead.

Operator: Thank you. The next question is from the line of Ritesh Abhi from Kingsmen Wealth Fund. Please go ahead.

Speaker #5: Good afternoon, everybody. My first question was obviously on the margins, which has already been answered by the management. I just want to understand: what distinguishes Vikram Solar from peers that may struggle through this downturn, and why are you confident that the company will emerge in a stronger competitive position?

Ritesh Abhi: Good afternoon, everybody. My first question was obviously on the margins, which has already been answered by the management. I just want to understand what distinguishes Vikram Solar from peers that may struggle through this downturn, and why are you confident that the company will emerge in a stronger competitive position?

Ritesh Abbi: Good afternoon, everybody. My first question was obviously on the margins, which has already been answered by the management. I just want to understand what distinguishes Vikram Solar from peers that may struggle through this downturn, and why are you confident that the company will emerge in a stronger competitive position?

Speaker #3: Sure. So, as we know, the first thing is that the policy framework really guides which companies are successful, in terms of which companies are able to adapt to the emerging policy framework.

Sameer Nagpal: Sure. As we know, that first thing is that the policy framework will guide which companies are successful in terms of which companies are able to adapt to the emerging policy framework. If I have to share what are Vikram Solar's key pillars, which we believe will help us succeed in a competitive environment, I will say there are four. One is best-in-class products. We have been in this business for 20 years. We have always been ahead in technology, compared to the industry, and we plan to continue that way. Second is the integrated world-class manufacturing. We have already shared our backward integration plan. The module lines we have recently commissioned are all latest and India's best and most efficient, and same will be followed through in cell and wafer as well. Third, I will say, is cost-efficient structure.

Speaker #3: But if I have to share what are Vikram Solar's key pillars, which we believe will help us succeed in a competitive environment, I will say there are four.

Speaker #3: One is best-in-class products. I mean, we have been in this business for 20 years. We have always been ahead in technology compared to the industry.

Speaker #3: And we plan to continue that way. Second is integrated world-class manufacturing. We have already shared our backward integration plan. The module lines we have recently commissioned are all the latest, and India's best and most efficient.

Speaker #3: And the same will be followed through in cell and paper and invert. Third, I will say, is cost-efficient structure. We are a very cost-sensitive company, and we are making sure that as we expand, the cost efficiencies are kept in mind in the way we grow.

Sameer Nagpal: We are a very cost-sensitive company, and we are making sure that as we expand, the cost efficiencies are kept in mind the way we grow. Fourth, I will say, is a diversified customer base. We have spoken about it during this call. We want to work across spectrum of customer base on large accounts, mid-market, and distribution. I think that mix will help us in both with stable volumes base and better realization. Combination of these four will set Vikram Solar apart from rest of the players.

Speaker #3: Fourth, I would say, is a diversified customer base. We have spoken about it during this call. We want to work across the spectrum of customer base—on large accounts, mid-market, and distribution.

Speaker #3: And I think that mix will help us in both, with a stable volume base and better realization. So, the combination of these four will set Vikram Solar apart from the rest of the players.

Speaker #5: Okay. Thank you.

Ritesh Abhi: Okay. Thank you.

Ritesh Abbi: Okay. Thank you.

Speaker #4: Thank you. The next question is from the line of Rishabh Modi from Ajay Agarwal Family Office. Please go ahead.

Operator: Thank you. The next question is from the line of Rishabh Modi from Ajay Aggarwal Family Office. Please go ahead.

Speaker #6: Oh, good afternoon, sir. I have only one question. For the volume of modules we have produced in Q1 FY27—sorry, Ajay, did you want to repeat?

Rishabh Modi: Good afternoon, sir. I have only one question. What was the volume of modules we have produced in Q1 FY27?

Sameer Nagpal: Sorry, Ajay. You have to repeat.

Speaker #6: I'm asking, but what's the volume of modules that we have produced in Q1 FY27?

Rishabh Modi: I'm asking what was the volume of modules that we have produced in Q1 FY27?

Sameer Nagpal: Production volume.

Prashant Mathur: The production volume for this quarter also has been around 1GW, 1,085MW, to be exact.

Rinal Shah: The production volume for this quarter also has been around 1GW, 1,085MW, to be exact.

Speaker #7: Production volume for this quarter has also been around 1 gigawatt—1,085 megawatts, to be exact.

Speaker #6: Okay. So, we have sold 100% of it.

Rishabh Modi: Okay. we have sold 100% of it?

Speaker #7: Yeah, we've sold yeah.

Prashant Mathur: Yeah, we sold out.

Rinal Shah: Yeah, we sold out.

Speaker #3: Very close to that. Yeah.

Sameer Nagpal: Very close to that. Yeah.

Speaker #7: Yeah, very close to that.

Prashant Mathur: Very close.

Rinal Shah: Very close.

Speaker #6: Okay. Okay. Thanks.

Rishabh Modi: Okay. Thanks.

Speaker #4: Thank you. The next question is from the line of Deepak Goswani from Swan Investments. Please go ahead.

Operator: Thank you. The next question is from the line of Deepak Goswami from Swan Investments. Please go ahead.

Speaker #6: Yeah, thank you for the follow-up opportunity. So, I just wanted to confirm, from the ramp-up point of view, as you mentioned, our cell line will start from Q4 onwards.

Deepak Goswami: Yeah. Thank you for the follow-up opportunity. I just wanted to confirm from the ramp-up point of view, as you mentioned, cell line will start from Q4 onwards. If you can also help us understand, have you started taking the orders for this DCR or we will take it at a later stage as and as we progress near to the commissioning of the plant?

Deepak Purswani: Yeah. Thank you for the follow-up opportunity. I just wanted to confirm from the ramp-up point of view, as you mentioned, cell line will start from Q4 onwards. If you can also help us understand, have you started taking the orders for this DCR or we will take it at a later stage as and as we progress near to the commissioning of the plant?

Speaker #6: If you can also help us understand, have we started taking the orders for this DCR, or will we take it at a later stage as and when we progress nearer to the commissioning of the plant?

Speaker #3: Yeah. So, at this point in time, we are not taking orders for the DCR modules with cells made in our own plant. That process will start maybe a couple of months from now, depending on how the progress on the cell line execution is.

Sameer Nagpal: Yeah. At this point of time, we are not taking orders for the DCR modules, the cells made in our own plants. That process will start maybe a couple of months from now, depending how the progress on the cell line execution is. Once the cell lines are shipped and post that, we will start taking orders.

Speaker #3: So, closer to when the cell lines are shipped, and after that, we will start taking orders.

Speaker #6: Okay. And how does the pricing mechanism work in this DCR market there?

Deepak Goswami: Okay. How does the pricing mechanism work in this DCR market there?

Deepak Purswani: Okay. How does the pricing mechanism work in this DCR market there?

Speaker #3: The DCR market pricing, depending on the customer segment, is varying. Distribution HSU is the highest margin, highest price, and large accounts, which are talking in large volumes, their pricing is different.

Sameer Nagpal: The DCR market pricing, depending on the customer segment, is varying. Distribution gets you the highest margin, highest price, and large accounts which are talking in large volumes, their pricing is different. It's an evolving situation, depending on the policy and the cell capacities coming on stream in India. That's the reason why we are not taking orders at this point of time. We will take a few months from now.

Speaker #3: It's an evolving situation, depending on the policy and the cell capacities coming on stream in India. So, that's the reason why we are not taking orders at this point of time.

Speaker #3: We will take a few months from now.

Speaker #6: And from the price escalation, raw material escalation point of view, how does it close—enters here?

Deepak Goswami: From the price escalation, raw material escalation point of view, how does its clause enter in there?

Deepak Purswani: From the price escalation, raw material escalation point of view, how does its clause enter in there?

Speaker #3: Since we are not taking the DCR orders yet, I cannot answer that question. Maybe in the next quarter, I will be able to say something on this topic.

Sameer Nagpal: Since we are not taking the DCR orders yet, I cannot answer that question. Maybe in the next quarter, I will be able to say something on this topic.

Speaker #6: Okay. And finally, can you also help us understand the overall demand environment across the different categories—that is, the utility segment and the CNI segment as a whole?

Deepak Goswami: Okay. Finally, if you can also help us understanding overall demand environment across the category, that is utility, and then C&I segment as a whole. On the retail side, on the PM KUSUM and PM Suryodaya Yojana across the category. I mean, in the utility, whether the tendering has started picking up or not, what is the kind of annual absorption we are looking at out? If you can just give the broad background about each of these categories, that would be really helpful.

Deepak Purswani: Okay. Finally, if you can also help us understanding overall demand environment across the category, that is utility, and then C&I segment as a whole. On the retail side, on the PM KUSUM and PM Suryodaya Yojana across the category. I mean, in the utility, whether the tendering has started picking up or not, what is the kind of annual absorption we are looking at out? If you can just give the broad background about each of these categories, that would be really helpful.

Speaker #6: And then on the retail side, on the PM question and PM Surya across the categories, I mean, in the utility—whether the tendering has started picking up or not—what is the kind of annual absorption we are looking at?

Speaker #6: If you can just give a broad background about each of these categories, that would be really helpful.

Speaker #7: Sure, Deepak. So, all the fresh tendering that has happened after the threshold date of August 25 has been to the tune of 35 to 40 gigawatts.

Prashant Mathur: Sure, Deepak. All the fresh tendering that has happened after the threshold date of August 2025 has been to the tune of 35 to 40 GW. They are in different stages. Some tenders have already been submitted. These are tariff tenders that I'm talking about, which will come up for execution 18 to 24 months hence. The procurement decision for these large tendered quantities will happen in possibly H1 and H2 of fiscal 2028. That's the utility. Utility, we are very confident as a mix of the order backlog, the grandfathered backlog of non-DCR plus the DCR that comes up for execution is a 30 to 35 GW AC kind of a market as of this year. C&I, like I mentioned, would be 15 GW that crosses across rooftop as well as ground mount.

Rinal Shah: Sure, Deepak. All the fresh tendering that has happened after the threshold date of August 2025 has been to the tune of 35 to 40 GW. They are in different stages. Some tenders have already been submitted. These are tariff tenders that I'm talking about, which will come up for execution 18 to 24 months hence. The procurement decision for these large tendered quantities will happen in possibly H1 and H2 of fiscal 2028. That's the utility. Utility, we are very confident as a mix of the order backlog, the grandfathered backlog of non-DCR plus the DCR that comes up for execution is a 30 to 35 GW AC kind of a market as of this year. C&I, like I mentioned, would be 15 GW that crosses across rooftop as well as ground mount.

Speaker #7: They are in different stages. Some tenders have already been submitted. These are tariff tenders that I'm talking about, which will come up for execution 18 to 24 months hence.

Speaker #7: So, the procurement decision for these large tendered quantities will happen possibly in H1 and H2 of fiscal '28. So that's the utility segment. We are very confident, considering a mix of the order backlog, the grandfathered backlog of non-DCR, plus the DCR that comes up for execution, that this is a 30 to 35 gigawatt AC kind of market as of this year.

Speaker #7: CNI, like I mentioned, would be a 15-gigawatt program that spans both rooftop and ground-mount installations. PM Suryaghar plus Kusum combined would be to the tune of 14 to 15 gigawatts.

Prashant Mathur: PM Suryodaya plus KUSUM combined would be to the tune of 14 to 15 GW.

Rinal Shah: PM Suryodaya plus KUSUM combined would be to the tune of 14 to 15 GW.

Speaker #6: Okay. And I mean, eventually, from the growth perspective, where do we see this retail segment—that is, PM-KUSUM and Suryaghar—shaping up over the next two- to three-year perspective?

Deepak Goswami: Okay. I mean, eventually from the growth perspective, where do we see this retail segment, that is PM KUSUM and Suryodaya Yojana shaping up over the next two, three-year perspective?

Deepak Purswani: Okay. I mean, eventually from the growth perspective, where do we see this retail segment, that is PM KUSUM and Suryodaya Yojana shaping up over the next two, three-year perspective?

Speaker #7: So, we are still hearing chatter about PM Suryaghar 2.0 and PM Kusum 2.0, so we will have to see how that plays out. Policy-driven installations are directly linked to what the government outlay is going to be.

Prashant Mathur: We are still hearing chatter of PM Suryodaya 2.0, PM-KUSUM 2.0. We will have to see how that plays out. Policy-driven installations are directly linked to what the government outlay is going to be. However, on the other side, on the utility side, there are a lot many levers that have panned out. A lot of states have announced data center policies. UP, Gujarat, Rajasthan, and AP, to name a few, which is going to lead to setting up of data centers to the tune of 25 to 26 GW in the next 5 years. That directly translates, I mean, if you assume 70% to 80% of solarization of the load, that is a times five multiplier of solar demand that it creates.

Rinal Shah: We are still hearing chatter of PM Suryodaya 2.0, PM-KUSUM 2.0. We will have to see how that plays out. Policy-driven installations are directly linked to what the government outlay is going to be. However, on the other side, on the utility side, there are a lot many levers that have panned out. A lot of states have announced data center policies. UP, Gujarat, Rajasthan, and AP, to name a few, which is going to lead to setting up of data centers to the tune of 25 to 26 GW in the next 5 years. That directly translates, I mean, if you assume 70% to 80% of solarization of the load, that is a times five multiplier of solar demand that it creates.

Speaker #7: However, on the other side, on the utility side, there are a lot more levers that have panned out. A lot of states have announced data center policies—UP, Gujarat, Rajasthan, and AP, to name a few.

Speaker #7: Which is going to lead to setting up of data centers to the tune of 25 to 26 gigawatts in the next five years. And that directly translates—I mean, if you assume 70 to 80 percent of solarization of the load, that is the times-five multiplier of solar demand that is created.

Speaker #7: So from the consumption point of view, I don't think we should view the Indian market purely on the basis of the tendering activity that is happening. CNI, data centers, plus green hydrogen combined are going to now anchor Indian demand in the next decade.

Prashant Mathur: From the consumption point of view, I don't think we should view Indian market purely basis the tendering activity that is happening. C&I data center plus green hydrogen combined is going to now anchor Indian demand in the next decade.

Rinal Shah: From the consumption point of view, I don't think we should view Indian market purely basis the tendering activity that is happening. C&I data center plus green hydrogen combined is going to now anchor Indian demand in the next decade.

Speaker #6: Okay, thank you. Thank you for answering the question. Wish you all the best. Thank you.

Deepak Goswami: Okay. Thank you. Thank you for answering the question. Wish you all the best. Thank you.

Deepak Purswani: Okay. Thank you. Thank you for answering the question. Wish you all the best. Thank you.

Speaker #4: Thank you.

Speaker #3: Thank you.

Operator: Thank you.

Sameer Nagpal: Thank you.

Speaker #4: The next question is from the line of Akshay Mane from Nuwama Wealth Management. Please go ahead.

Operator: The next question is from the line of Akshay Mane from Motilal Oswal Wealth Management. Please go ahead.

Akshay Mane: Yeah. Hi. Thank you for the opportunity. Just needed one small clarity. We have enhanced our wafer ingot capacity from 6 gigawatts to 9 gigawatts, previously we were talking about 12 gigawatts of wafer ingot capacity. That was in two phases, which is 6 gigawatts, then I think in effect 2029 again a 6 gigawatt capacity would come up. Right now, we are increasing the 6 gigawatts capacity to 9. Is it part of the same 12 gigawatts, or are we actually increasing the capacity to 9 plus 6 to 13 gigawatts? Just wanted that clarity.

Speaker #6: Yeah. Hi. Thank you for the opportunity. Just wanted one small clarification. We have enhanced our referring loop capacity from 6 gigawatts to 9 gigawatts.

Speaker #6: And previously, we were talking about 12 gigawatts of referring loop capacity. So, that was in two phases, which is 6 gigawatts, and then I think, in effect, 2029, again another 6 gigawatts of capacity would come up.

Speaker #6: So right now, we are increasing the 6-gigawatt capacity to 9. So is it part of the same 12-gigawatt, or are we actually increasing the capacity to, like, 9 plus 6, to 15 gigawatt?

Speaker #6: So just wanted that clarity.

Speaker #3: No, it is part of the same 12. We have just changed the phasing and resized it for the load.

Ranjan Jindal: No, it is part of the same 12. We have just changed the phasing and the resizes for the

Speaker #6: Okay. And what was the total apex for the total 12 gigawatts?

Akshay Mane: Okay. What will be the total CapEx for the total 12 gigawatts-

Speaker #4: Sorry to interrupt. Mr. Akshay, could you please speak a little louder?

Operator: Sorry to interrupt. Mr. Akshay, could you be a little louder?

Speaker #6: Yeah, so can you just tell me what is the capex—the total capex that would be required for a 12-gigawatt capacity?

Akshay Mane: Yeah. Can you just tell me what is the total CapEx that would be required for 12 gigawatts capacity?

Speaker #3: No, Samir explained, we have trimmed down the wafer and Eager plan originally from 12 to 9. We have also kept the cell at 9.

Ranjan Jindal: No, as Sameer explained, we have trimmed down the wafer ingot plan originally of 12 to 9. We have also kept the cell at 9. For the 9 gigawatts wafer ingot, the total cost will be around INR 5,600 crores.

Speaker #3: So for the 9-gigawatt wafer ingest, the project cost would be about ₹5,600 crores.

Speaker #6: Okay. Okay. Thank you. That's fine.

Akshay Mane: Okay. Thank you.

Operator: Thank you. The next question is from the line of Sahil Sheikh from Anand Rathi Institutional Equities. Please go ahead.

Speaker #4: Thank you. The next question is from the line of Sahil Sheikh from Anand Rathi Institutional Equities. Please go ahead.

Sahil Sheikh: Yeah. Thank you, sir. Sir, I just wanted some clarity on our CapEx plan. Earlier, we were going to commission a 9 GW cell plant by December and 3 GW by March 2027, but now we are commissioning a 9 GW cell line in March 2027. If you can give clarity on when the next phase of the 3 GW cell plant would be commissioned.

Speaker #6: Yeah, thank you, sir. So, sir, I just wanted some clarity on our capex plan. Earlier, we were going to commission a 9-gigawatt cell plant by December and 3 gigawatts by March 2027.

Speaker #6: But now we are commissioning a 9-gigawatt cell line in March 2027. And if you can give clarity on when the next phase of the 3-gigawatt cell plant would be commissioned.

Speaker #3: So our plan was for the 3 gigawatt, and that was always in FY28, not in '27. So that stays.

Ranjan Jindal: Our plan for the 3 GW was always in FY28, not on 2027. That stays.

Speaker #6: So, the 3 gigawatts should be commissioned in FY28.

Sahil Sheikh: The 3 GW would be commissioned in FY28?

Speaker #3: Yes, 3 gigawatt—I will explain to you. Three gigawatt, we have kept for upgraded technology. Once we have settled down this 9 gigawatt, that is the time when we will start the work on the next phase of 3 gigawatt.

Ranjan Jindal: Yes. 3 gigawatts, I will explain to you. 3 gigawatts we have kept for upgraded technology. Once we have settled down this 9 gigawatts, that is the time that we will start the work on the next phase of 3 gigawatts, which will be at next level of technology and not the same TOPCon.

Speaker #3: It should be at the next level of technology, and not the same TOPCon.

Speaker #6: Okay, sir. And sir, if you can also share how the capex phasing would be across for cell, modules, and BESS combined over FY27, FY28, and if there is any flow over to FY29.

Sahil Sheikh: Okay, sir. Sir, if you can also share how the CapEx saving would be across for our cells, modules, and BESS combined over FY27, FY28 and flow over to FY29, if any.

Ranjan Jindal: As I explained, for FY27, we'll be spending about INR 5,000 crores. We'll see similar numbers in FY28 as well. Majorly, this will be backed with debt coming in, financial closure of which is in progress.

Speaker #3: So, as I explained, for FY27 we'll be spending about ₹5,000 crores. We'll see similar numbers in FY28 as well, and, majorly, this will be backed with debt coming in.

Speaker #3: Financial closure of which is in process.

Speaker #6: Okay, sir. And what level of debt are we expecting to fund this capex?

Sahil Sheikh: Okay, sir. How much level of debt are we expecting to fund this CapEx?

Speaker #3: So, the plans going forward would be at 75/25. But with the ATAR scheme to be in place, we will end up with a debt-equity of 70/30.

Ranjan Jindal: The plans going forward would be at 75/25, but with the entire scheme to be in place, we will end up with a debt equity of 70/30.

Speaker #6: Got it, sir. Yeah. Thank you.

Sahil Sheikh: Got it, sir. Yeah. Thank you.

Speaker #3: Thank you.

Speaker #4: Thank you. The last question is from the line of Vishant Shah from Madani Properties Private Limited. Please go ahead.

Ranjan Jindal: Thank you.

Operator: Thank you. The last question is from the line of Vishant Shah from Adani Properties Private Limited. Please go ahead.

Speaker #6: Hi. Good results so far. I just wanted to check one thing. Regarding your—if you can just give a wider margin in terms of the DCR versus non-DCR sales, in terms of the EBITDA margin.

Vishant Shah: Hi. Good results so far. Just wanted to check one thing. If you can just give a wider margin in terms of the DCR versus non-DCR sales in terms of the EBITDA margin.

Speaker #3: So in quarter one, earlier, we saw any volumes on the DCR front—it was only 75 megawatts out of 1 gigawatt. We'll see more of DCR coming in Q2 and the quarters to come.

Ranjan Jindal: The Q1 hardly saw any volumes on the DCR front. It was only 75 MW out of 1 GW. We'll see more of DCR coming in in Q2 and the quarters to come. With more of volumes coming in, that will help us understand the clear segregation of margin for both these products separately.

Speaker #3: With more volumes coming in, that will help us understand the TS segregation of margin for both these products separately.

Speaker #6: So, if you can just guide?

Vishant Shah: If you can just guide Sorry.

Speaker #3: No, the DCR obviously will deliver more than what the non-DCR module would.

Ranjan Jindal: No, the DCR obviously will deliver more than what the non-DCR module.

Speaker #6: Okay. And if he goes by volumes or range, looking at that.

Vishant Shah: Okay. Any sort of wide volumes or regional

Operator: Sorry to interrupt, Mr. Vishant. Could you please adjust your handset or mic? Your voice is coming out with a lot of disturbance.

Speaker #4: Sorry to interrupt, Mr. Vishant. Could you please adjust your handset or mic? Your voice is coming through with a lot of disturbance.

Speaker #6: Yeah. Is it audible now?

Vishant Shah: Yeah. Is it audible now?

Speaker #4: Yes, please go ahead.

Operator: Yes, please go ahead.

Ranjan Jindal: Yes.

Speaker #3: Yes, yes.

Speaker #6: So just, if you can, just provide a very wide sort of range of volumes where you see that the margins can stabilize for both this segment.

Vishant Shah: if you can just provide a very wide sort of volumes where you feel that the margins can stabilize for both these segments.

Speaker #3: Can you please repeat the question?

Ranjan Jindal: Can you please repeat the question?

Speaker #6: So, at what volume do you foresee that the margins can stabilize for these two segments, in terms of your expectation?

Vishant Shah: At what volume you foresee that the margins can stabilize for these two segments in terms of your expectations?

Ranjan Jindal: It's not about the volume, it is about once our cell capacity comes in. See, the industry is going from non-DCR to DCR over next couple of years. There is no stable volume of non-DCR and DCR we can predict at this point of time. This is a policy driven matter.

Speaker #3: It's not about the volumes. It is about once our cell capacity comes in, then only we'll see. The industry is going from non-DCR to DCR over the next couple of years.

Speaker #3: So, there is no stable volume of non-DCR and DCR that we can predict at this point in time. This is a policy-driven matter.

Speaker #6: Thank you.

Vishant Shah: Thank you.

Speaker #4: Thank you. That was the last question for today. I now hand the conference over to management for closing remarks. Over to you.

Operator: Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Speaker #3: I would like to thank everyone for joining us for today's call. We look forward to talking to you again next quarter. Thank you.

Ranjan Jindal: I would like to thank everyone for joining us for today's call. We look forward to talking to you again next quarter. Thank you.

Sameer Nagpal: I would like to thank everyone for joining us for today's call. We look forward to talking to you again next quarter. Thank you.

Operator: On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Vikram Solar Ltd Earnings Call

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