Q1 2027 GK Energy Ltd Earnings Call
Speaker #1: Hosted by Churchgate Advisory Private Limited. 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.
Speaker #1: Should you need assistance during the conference call, please signal and operator by pressing star, then zero on your touchstone phone. I now hand the conference over to Mr. Gopal Kabra, Chairman, MD, and CEO of GK Energy Limited, India.
Speaker #1: Thank you, and over to you, sir.
Speaker #2: Thank you very much, and very warm good afternoon to everyone. I, Gopal Kabra, Chairman, Managing Director of GK Energy, welcomes you everyone. I am very glad that all of you have joined us today for our investor call.
Speaker #2: Along with me, Mr. Sunil Malu, our CFO, is also present. We hope you all had a chance to go through our investor presentation uploaded on the Stock Exchange.
Speaker #2: We will share our key operating and financial highlights for the quarter ended June 30, 2026. We have started FY 2027 on a positive note, delivering our highest-ever quarterly revenue.
Speaker #2: Standalone revenue from our operation increased by 71.1% year on year, to Rs. 505 crores, compared to Rs. 295 crores in Q1 of FY 2026.
Speaker #2: EBITDA increased by 47.7% to Rs. 86.1 crores, with an EBITDA margin of 17.05%. PAT profit after tax increased by 61.6% to Rs. 59.7 crores, compared to 36.9 crores in the same quarter last year.
Speaker #2: Our order book as of June 2026, including order received post-June, was Rs. 541 crores. Providing visibility for execution over coming quarter. On the operational front, we installed 24,118 systems during Q1 FY 27, more than double the 10,827 systems installed in the Q1 last year.
Speaker #2: With commissioning of 109 megawatts of renewable energy capacity during the quarter, with this, our cumulative installation base has crossed 1,64,500 systems and 726 megawatts of renewable energy capacity.
Speaker #2: In decentralized way, today our network covers more than 7,500 villages and supported by workforce of over 1,500 people, and our own logistic fleet of 40-plus vehicles.
Speaker #2: Our growth strategy continues to build around technology-defined low-capex models supported by our OEM/ODM manufacturing ecosystem. We control critical raw materials and work with multiple manufacturing partners.
Speaker #2: Allowing us to maintain quality supply availability and cost efficiency while keeping fixed capital requirements relatively low. Our decentralized warehousing logistics and field execution network further enables us to scale across geographies without requiring proportionate investment in fixed infrastructure.
Speaker #2: From the market developing prospective, we continue to depend on our presence across existing states while building the GK Energy brand across rural and residential markets—village block-level, tier 2, and tier 3 cities.
Speaker #2: Our presence across more than 7,500 villages built over 18 years provided us with a direct access to cumulative communities where renewable energy adoption is increasing day by day.
Speaker #2: We are also leveraging our network, our established rural presence, to expand our offering across solar pump rooftop solar and other RE solutions. Our immediate focus remains on strengthening our solar agriculture pumping business and scaling up rooftop with the similar pace to achieve the better market share.
Speaker #2: Our long-term vision is to enter into the across the other available opportunities like BESS. And hybrid energy solutions. Looking ahead, our objective is to build GK Energy into one of India's most trusted renewable energy brands.
Speaker #2: We intend to deepen our presence in existing markets and enter new geographies in the coming future as and when required, while maintaining execution discipline and following our low-capex approach.
Speaker #2: Our long-term vision, as we have shared, is to reach 1 million houses with our system in place with them, as well as the 1 billion enterprise in decentralized renewable energy.
Speaker #2: With this, I would like to thank everyone for joining us today. Now I request the coordinator to coordinator to open the floor for the questions and answers.
Speaker #2: Thank you.
Speaker #1: Thank you so much, sir. Ladies and gentlemen, anyone who wishes to ask a question, may press star, and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2.
Speaker #1: Participants are requested to use handsets by lasting a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question comes from the line of Bhagwat, with a prosperity wealth management.
Speaker #1: Please go ahead.
Speaker #3: Thank you for the opportunity. And congratulations for the strong quarter results. My question is in the order book. The current executable order book of around 541 crores seems relatively modest compared to the company's growth aspirations.
Speaker #3: Could you share your expectations for the order info over the remaining quarters of FY 27? And based on the order pipeline, are we confident of achieving our growth guidance of doubling revenue in FY 27?
Speaker #2: Thank you, Bhagwat ji. So this order book is as on today, right? So we are in just the first week of the August, and we are very confident.
Speaker #2: If you see what we have told, we have delivered, and we are trying to deliver more better way. Looking towards the current market scenario, with the securing of this order book, we will be expecting some more order in the coming time.
Speaker #2: Phase 6 of Margil Tala has been just got submitted, and we are expecting some order there as well. And for the phase 7 of Margil Tala is also there in the pipeline.
Speaker #2: So this will enable us to achieve what we have said. In H1, as an H2, we are expecting from the PM question. 2.0. As well as the rooftop systems.
Speaker #3: Okay, so the growth guidance is intact for FY 27 of doubling, right?
Speaker #2: We are definitely on that track only.
Speaker #3: Okay, okay. So my second question is, I'll keep a comment on the reason for the strike margin completion in Q1, and what EBITDA track margin range should we expect for the whole year FY 27?
Speaker #3: And is there a historical EBITDA of 19 to 20 percent margin still sustainable?
Speaker #2: See, as I have given the guidance, when we had a last on-call also, we said that our path will be remaining two-digit, and that is that.
Speaker #2: And I have already given the indication that we may expect a little bit down in the last on-call. So whatever we have said is getting maintained.
Speaker #3: Okay, and would you expect to maintain probably?
Speaker #2: Yeah, yeah. We are expecting profit to remain in the same line what has been achieved in the quarter one.
Speaker #3: Okay, okay. Thank you for that. And if I may ask one more last question, so which PM question 2.0 expected to drive the next phase of solar pump solutions?
Speaker #3: Could you please update the current status of this scheme and when do you expect the phase changes to be released?
Speaker #2: See, as I've already mentioned last call also, quarter three is what I have indicated, and I'm very much clear that it will come by quarter three.
Speaker #2: As of now, with what the fact and figure I know, if any update is there, we will update as and when it will come to us.
Speaker #3: Okay. Is there further PM question 2.0 is getting delayed? So despite that, are we confident of the doubling this revenue from the other schemes?
Speaker #2: No, we have considered in Q3 only. In my last call also, I said that PM question 2.0 will come in Q3. Not before. So it is well planned, and it is going as per that.
Speaker #3: Okay, that's right. But I'm just trying to be in the scenario where it gets delayed. As for our expectations, it gets delayed from Q3.
Speaker #3: Still, are we confident that from August, we can cover up the guidance?
Speaker #2: See, it's not like only about the GK Energy's business. The PM question 2.0 is required for the nation. And it's required for everyone. So I'm not thinking that it won't come as a businessman.
Speaker #2: We always remain very positive. But if in case what you are saying, yes, there would be slight impact, but in that position, we will accelerate our rooftop business to mitigate the gap.
Speaker #3: Okay, okay. Thank you for your answer. It's clarifying the questions. And all the best for the next process.
Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and 1. Our next question comes from the line of Ashish Obgandlawar with Invesc Investment.
Speaker #1: Please go ahead.
Speaker #2: Yeah, hi. Bhagwat ji, just wanted to check on PM question again. There were certain comments from the minister in the assembly that the money basically has been subsumed in several departments of the government now.
Speaker #2: So I think there was a press release also to that effect that it's being distributed to different ministries, and through that, it will come.
Speaker #2: So what is the exact status? Because you just said that Q3 you are expecting question 3 to be released by the government that way.
Speaker #4: Ashish ji, if we look towards that press release, it is an answer to some of the question has been raised in the legislative assembly.
Speaker #4: It wasn't related to directly on the PM question or the thing. So that question has been answered by that press release. So I don't consider that press release have any direct relation with PM question 2.0.
Speaker #4: So if you just see the press release once again, you will understand what I'm trying to say. That this is that press release came in the answer of the one of the legislative assembly question reply.
Speaker #2: So but sir, that mentioned key the amount has been disbursed to various ministries, and through that, it will come on. But it was not clear as to how this is going to entirely take shape.
Speaker #2: So you are still saying that whatever is the plan, maybe next two year, three year, five year plan, that is going to come. That will be announced by Q3 as such by the government.
Speaker #2: Some formal shape that will take.
Speaker #4: See, that overall, what was clarification came, it was all scheme to get the ruler development. So there was various scheme has been discussing how the overall ruler energy development can take place.
Speaker #4: So we are really very positive, very much clear. Yes, we are going to have the same business lines of the coming decade even, I would say, because this is the area PM question 2.0 and the PM question 2, which has been very well clear that only solar pump is successful model.
Speaker #4: Remaining model are still underperforming. The performing model with the proven fact is going to help.
Speaker #2: Right. But sir, any indications as to what the quantum or whatever? I mean, you've been close to the Maharashtra government as well as the center.
Speaker #2: Any sense on how is it going to be, or should we wait only? That is the only option that is there. Because a lot of flow for every company depends on that, and we are seeing lackluster performance by few of the companies in the sector because of the delays, basically.
Speaker #2: So you being in Maharashtra probably that has helped, but otherwise, it's not been as great for other companies.
Speaker #4: Ashish ji, first of all, the countries 70% solar pump business done in the Maharashtra and so it is fact for everyone. And second point, the representation from the industry and the SNS has been already given, and every state want maximum quantum to be taken under PM question 2.0.
Speaker #4: So we are expecting the much more bigger volume multiplied numbers than PM question 2.0. Means, I'm going to say 1.0 shall be the multiplication number in 2.0.
Speaker #2: Great. Sure, sir. Hopefully, things fall in place again for the sector. All the best. Thank you.
Speaker #1: Thank you. Our next question comes from the line of RO with Tinum Capital. Please go ahead.
Speaker #2: Yes, sir. First, we congratulations on the successful quarter. I just wanted to highlight the management recently said that they are targeting approximately 3,000 crores in revenue.
Speaker #2: Compared to the quarter, it is just, I think, 515 crores. So how do you plan out to achieve that number in the next three quarters?
Speaker #4: See, if you see the growth trajectory in last couple of years, you will see that quarter one always remain 15% to 20% of our annual volume.
Speaker #4: And looking towards that growth trajectory, we are on track because quarter one is always lowest in term of the business. And the maximum business come in the H2.
Speaker #4: And more specifically, quarter four. So quarter four goes around 35 to 40 percent of the business in some of the years. So this is what the scenario will continue.
Speaker #4: So we are expecting and able to reach for the given set targets.
Speaker #2: So sir, for the remaining quarters, are you expecting the same year on the growth like this quarter it was 70%? So are you expecting the same quarter to grow?
Speaker #4: It slightly plus minus would be there, but yes, we are expecting a good growth.
Speaker #2: Okay. Thank you so much for answering the question.
Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and one. Our next question comes from the line of Maitri Shah from Sapphire Capital.
Speaker #1: Please go ahead.
Speaker #3: Yeah, hello. Hello.
Speaker #4: Yes. Yes.
Speaker #3: Yeah, hello.
Speaker #1: Maitri, your voice is very low.
Speaker #3: Is this clear now?
Speaker #1: Yes, it's clear.
Speaker #3: Yeah, hello. Sorry for the interruption. Just one question. So you mentioned that our pump volume grew close to double this quarter. While the revenues have grown close to 55%, any sort of discrepancies where you're seeing in the realizations being lower due to increased competition, just some color on that, yeah?
Speaker #4: See, number-wise, growth is there as you have already corrected. Yes, realization has been low per pump, but the overall volume is growing up. Maitri.
Speaker #3: Yeah, hello. Yeah, going forward, we see these realizations to be still muted. With the new schemes coming in or since the demand is going to see a rise again, we see the realizations kind of climbing back up.
Speaker #3: How are you picturing the growth for this year in terms of volume and in terms of realization?
Speaker #4: Maitri, can you repeat your question, please?
Speaker #3: Yeah, hello. Is this better? Hello?
Speaker #4: Yes, please go ahead. Yes, please go ahead.
Speaker #3: Now with the new schemes kind of coming in, the PM question, we are expecting the 2.0. The demand will probably see a much bigger hike going forward.
Speaker #3: So are we expecting the realizations to also inch up, or we are expecting them to stay stable or maybe even go lower because of the increased competition?
Speaker #4: See, as a businessman, yes, we want that the realization shall go up. And with the practical approach, I feel the realization will remain the same, what it is.
Speaker #4: Unless until something happen drastically, so that is unknown thing. So we can't answer it right now. And looking towards market scenario, yes, realization shall remain the same.
Speaker #4: This is what my expectation yes.
Speaker #3: Okay. So the majority of the growth push will come from us increasing the volumes going forward.
Speaker #4: Yes, increasing the volume as well as the price variation may come if specification get changed in PM question 2.0. So it's relatively depend how the specification get differ.
Speaker #3: Got it. Okay. Yeah, that is it for my side. Thank you.
Speaker #1: Thank you. Next question comes from the line of Harshil Solanki with Equitree Capital. Please go ahead.
Speaker #2: Hi, sir. Good afternoon. So I have three questions. First is, you said our question 2, the work should start by Q3. So I was assuming that there will be a two, three-month lag before the work starts and the scheme is announced.
Speaker #2: So should we assume that the announcement is pretty soon if the work has to start by Q3, if you can throw some light on this part?
Speaker #4: Harshil ji, question 2, as I said, quarter three, so definitely I'm expecting the end of the quarter three, it should start. As of now, I am having that understanding this is I would say right now for that.
Speaker #4: And it has to get started because if it is get delayed, then overall scheme will get impact. So I don't think so it will get further delay.
Speaker #4: It will be going to start in quarter three.
Speaker #2: Okay. So the announcement may come by September and the work starts by end of the quarter.
Speaker #4: Yes, I am expecting that only.
Speaker #2: Okay. And the second is, if you can help me with the of the revenue in terms of solar pumps and rooftop and the volumes also of the 24,000 systems it includes both, right?
Speaker #2: Rooftop and pumps. So I wanted the breakup of the two.
Speaker #4: Rooftop has just started for us. So it is around 5% is rooftop and the 95% pump. But when I'm comparing my order book, so I have a 20% order book from the rooftop and 80% from the pump.
Speaker #4: So it's clear indication that yes, rooftop is also getting picked up. And generating revenue going to generate a revenue for the company.
Speaker #2: Okay. Got it. And the phase six, are you seeing any improvement in realizations or the things are continuing to remain the same?
Speaker #4: As I earlier answer, I expect that my wish is the realization shall increase more, price shall increase more. But practically shall remain the same.
Speaker #4: I think so. Still the price is has been has been not open. So I cannot comment on that what will be there.
Speaker #2: Okay. Understood. Yeah. Thank you so much, man.
Speaker #1: Thank you so much. Next question comes from the line of Bhagwat. A follow-up question from Bhagwat with Prosperity Wealth Management. Please go ahead.
Speaker #2: Thank you for the follow-up opportunity. So my question is regarding our vision of reaching 1 billion dollar revenue by 2030. So how do you expect the business model to evolve?
Speaker #2: Will the company continue with the asset-light strategy or we expect backward integration to manufacturing to support this growth?
Speaker #4: See, backward integration, I'm not very clear that we would like to have the much more backward integration thing because the product what we are having, there are lots of manufacturer already established there in the market.
Speaker #4: They have done the huge capex and we are leveraging the available ideal capacity in the country. So that is giving us why we are able to build our margin very strongly.
Speaker #4: So that would be the part on the backward integration of the answer question what you have said. And definitely we are looking towards a certain future opportunities that is in pipeline.
Speaker #4: So I think we will be able to give the to the you all new people, my shareholder, everyone when the right time will come.
Speaker #4: So it is under consideration and the thinking right now. So we will be able to give the certain clarity in coming time. How the overall planning is will be there.
Speaker #4: With the add-on the product.
Speaker #2: Okay. And do you expect PM question would be the growth drivers to achieve this target or any other things that you expect to do the major considerations?
Speaker #4: Bhagwat ji, definitely PM question is going to be the one of the driving factor. But we are not targeting only one driving factor. So we are having the multiple boxes with all things we will have the driving force to become a 1 billion dollar enterprise.
Speaker #4: So we are not going to rely only on one product and one scheme. So we are going to have the product mix to achieve set target.
Speaker #4: So in case if one of the products won't perform by 2030, so other product will definitely deliver to become a 1 billion dollar enterprise.
Speaker #2: Okay. Okay. Thank you so much for the answer.
Speaker #1: Thank you. Next question comes from the line of Smith Gala with RSPN Venture. Please go ahead.
Speaker #2: Yeah. Thank you for the opportunity. Just one question from my side. We have seen a drastic reduction in the interest expense. So how has the interest expense reduced from 11 crore in March 26th quarter to 5 crores now?
Speaker #4: So first of all, we were having the surplus receive cash available with the company because we have the very good receivable done in the financial year ending in the March.
Speaker #4: That's one point. And we are right now raised the fund through the IPO for the working capital. So that is also supporting us for the not having the bank debt.
Speaker #4: We have utilized the fund raised by the IPO to support our working capital.
Speaker #2: So this will stay in this range or it will reduce even further going forward?
Speaker #4: It shall stay in this range.
Speaker #2: Okay. Thank you.
Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and one on the test on telephone. Reminded all the participant, if you wish to ask a question, you will press star and one.
Speaker #1: Thank you so much, ladies and gentlemen. As there are no further questions from the participant, I now have the conference over to Mr. Gopal Kabraj, Chairman MD and CEO of GK Energy Limited for the closing remarks.
Speaker #1: Thank you and over to you, sir.
Speaker #4: Thank you. I would like to thank everyone for joining on a call. I hope we have been able to respond to you all of the question adequately.
Speaker #4: For any further information, we request you to please get in touch with our investor relation team or you can directly contact the company's team as mentioned in the presentation.
Speaker #4: I wish everyone shall stay safe, stay healthy. Thank you. Thank you, everyone, once again to join us.
Speaker #1: Thank you so much, sir. Ladies and gentlemen, on behalf of Vellano Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
