Q1 2027 Saatvik Green Energy Ltd Earnings Call

August 14, 2026

Speaker #1: No.

Speaker #2: good evening, everyone, and welcome to the Q1 FY27 earnings call of Saatvik Green Energy Ltd. Today we have with us Mr. Neelesh Garg, Chairman and MD; Mr. Prashant Mathur, CEO; Mr. Rishabh Mehta, Interim CFO; and the Add Factors IR team.

Speaker #2: We will begin the call with the opening remarks from the management, after which we will have the forum open for interactive Q&A session. I must remind you that this conference call may include forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company, as under the date of this call.

Speaker #2: The statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand over the conference to Mr. Neelesh Garg, Chairman, and MD of Saatvik Green Energy Ltd. for opening remarks.

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

Speaker #1: hi. Good evening, everyone, and a very warm welcome to Saatvik Green Energy Ltd.'s earnings call to discuss our performance for the first quarter of financial year 27.

Speaker #1: Thank you all for joining us today, and for your continued trust, confidence, and support toward Saatvik. Quarter 1 financial year 27 marks an important phase in Saatvik's journey.

Speaker #1: While the quarter witnessed a relatively moderate financial and operational performance, it was also a period of significant progress on our strategic priorities. Particularly, our transition toward a more integrated solar manufacturing platform.

Speaker #1: Let me begin with an update on our Odisha Integrated Manufacturing project, which remains one of the key milestones in this transition. The Phase 1 project spread across 57 acres, comprises 2.4 gigawatt of cell manufacturing capacity and 4 gigawatt of module manufacturing capacity.

Speaker #1: I'm pleased to share that the project continues to progress well and remains firmly on track. On the cell manufacturing side, the project is progressing well and remains on track for the upcoming ramp-up.

Speaker #1: Two move-in activities have commenced, followed by tool assembly and associated installation works. Several critical utility and infrastructure milestones have also been achieved. The electrical room is ready for charging, while compressor installation and associated piping works have been completed.

Speaker #1: PVC ducting works and MAU mechanical piping works have also been completed. While exhaust ducting installation is complete and blower connection works are currently in progress.

Speaker #1: In parallel, installation of emergency doors etc. is underway. Overall, the key equipment, utilities, and supporting infrastructure are progressing as planned, and the cell line is now moving toward operational readiness.

Speaker #1: We expect the cell line ramp-up to commence shortly, with the ALMM-2 inspection planned for September 2026. On the module manufacturing side, equipment movement and installation activities have progressed substantially.

Speaker #1: Tech testing, validation, trial runs, and process stabilization activities are underway. With the module line also approaching the production ramp-up stage. The Odisha facility represents a significant step forward in strengthening our manufacturing capabilities, and advancing our integrated solar manufacturing strategy.

Speaker #1: With both cell and module capacities coming up at the same location, the facility will enhance our ability to serve customers with a more integrated and resilient manufacturing platform.

Speaker #1: Beyond Phase 1, we are also progressing with the next stages of our manufacturing expansion. Phase 2 spread across 27 acres in which such is an additional 3.6 gigawatt of cell manufacturing capacity.

Speaker #1: Taking a total cell manufacturing capacity 26 gigawatt. Site activities for Phase 2 are targeted to commence by the end of Q2 financial year 27.

Speaker #1: With the projected targeted completion for, targeted for completion by end of FY28. In parallel, we have initiated planning for Phase 3, which in which such is 6 gigawatt of invert and wafer manufacturing capacity.

Speaker #1: The Phase 3 project is targeted for completion in FY29, and is aligned with the anticipated ALMM-3 transition. Together, these phases will enable us to progressively deepen our backward integration, strengthen supply chain resilience, and build a more comprehensive domestic solar manufacturing ecosystem.

Speaker #1: Against this backdrop, Q1 FY27 was a relatively moderate quarter from a financial and operational perspective. The quarter was impacted by a combination of external and industry-specific factors.

Speaker #1: The ongoing geopolitical situation, and associated supply chain uncertainties, continued to influence global markets. Commodity prices remained volatile, logistics costs remained elevated, and foreign currency fluctuations added further variability to the cost environment.

Speaker #1: On the customer side, certain customers adopted a wait-and-watch approach during the quarter. As this taught, greater clarity around regulatory developments, domestic sourcing requirements, and the prevailing market environment.

Speaker #1: As a result, some procurement decisions and execution schedules were deferred. Importantly, we also remained disciplined in our approach toward order execution. We remained selective in the orders we executed, with a clear focus on executing orders that provided healthy contribution and sustainable commercial returns.

Speaker #1: We believe this is the right approach for the business. Our objective is not to pursue volumes at any cost, but to build a sustainable business with healthy economics and long-term value creation.

Speaker #1: Therefore, while the near-term performance was impacted, we believe the decisions taken during the quarter were appropriate from a long-term perspective. While the near-term environment has been challenging, we believe the solar manufacturing industry is undergoing an important structural transition.

Speaker #1: The industry is progressively moving from a predominantly module-led model toward a more integrated, cell-led manufacturing ecosystem. Domestic cell manufacturing is becoming increasingly important, and integrated manufacturing is expected to become a key differentiator in the evolving industry landscape.

Speaker #1: Saatvik is well positioned for this transition. Our strategy is centered around strengthening our core module and cell manufacturing capabilities, followed by deeper backward integration into ingot and wafer manufacturing.

Speaker #1: Supported by ancillary capabilities such as encapsulants. This deeper integration will provide greater control over key inputs, enhance operational resilience, and help us manage the impact of commodity prices, foreign exchange movements, and global market volatility more effectively.

Speaker #1: Looking ahead, we remain constructive on the long-term opportunity in the Indian renewable energy market. India's solar demand continues to be supported by the country's target of 500 gigawatts of non-fossil fuel capacity by 2030, along with initiatives such as PM Suregar, PM Kusum, and the broader push toward domestic renewable energy manufacturing.

Speaker #1: We also see increasing opportunities across CNI, distributed solar, and other emerging customer segments. At Saatvik, we are continuing to diversify our customer base. And market presence.

Speaker #1: We have entered the B2C segment, are strengthening our distribution network, and continue to focus on expanding our export opportunities. Alongside this, we are expanding our product portfolio, through offerings such as the Saatvik Surya Connect Solar Kit, and the Uday Plus Hybrid Inverter.

Speaker #1: Enabling us to participate across a wider range of residential and commercial applications. Our broader objective is to progressively evolve from a solar manufacturer into an integrated energy platform, with capabilities across manufacturing, power electronics, storage, components, and broader energy infrastructure.

Speaker #1: With that, I will now hand over the call to our interim Chief Financial Officer, Mr. Rishabh Mehta, to take you through the detailed financial and operational performance for the quarter.

Speaker #1: Thank you.

Speaker #2: Thank you, Nileshji. And good evening, everyone. I will now take you through the financial and operational performance for Q1 fiscal year 27. As highlighted earlier, the quarter was impacted by lower execution volumes, customer-led delays, commodity and logistics cost volatility, foreign currency movements, and our conscious decision to remain selective in executing orders where the prevailing commercial economics were not attractive.

Speaker #2: For Q1 FY27, production stood at 408 megawatt, compared to 935 megawatt in Q4 FY26, and 685 megawatt in Q1 FY26. Sales stood at 334 megawatt, compared with 1050 megawatt in Q4 FY26 and 579 megawatt in Q1 FY26.

Speaker #2: Revenue from operations stood at 5,110 million compared with 16,077 million in Q4 FY26 and 9,157 million in Q1 FY26. EBITDA stood at 425 million, with an EBITDA margin of 8.33%, compared with 1,166 million and 7.25% margin in Q4 FY26.

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Speaker #2: And 1,777 million in Q1 FY26. Profit after tax stood at 54 million, compared with 604 million in Q4 FY26 and 1,166 million in Q1 FY26.

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Speaker #2: The moderation in the quarter was primarily driven by lower sales volume. As discussed earlier, certain customers adopted a wait-and-watch approach, during the quarter resulting in some execution being deferred.

Neelesh Garg: Through transition. The industry is progressively moving from a predominantly module-led model towards a more integrated cell-led manufacturing ecosystem. Domestic cell manufacturing is becoming increasingly important, and integrated manufacturing is expected to become a key differentiator in the evolving industry landscape. Saatvik is well positioned for this transition. Our strategy is centered around strengthening our core module and cell manufacturing capabilities, followed by deeper backward integration into ingot and wafer manufacturing, supported by ancillary capabilities such as encapsulants. This deeper integration will provide greater control over key inputs, enhance operational resilience, and help us manage the impact of commodity prices, foreign exchange movements, and global market volatility more effectively. Looking ahead, we remain constructive on the long-term opportunity in the Indian renewable energy market.

[Company Representative] (Saatvik): Through transition. The industry is progressively moving from a predominantly module-led model towards a more integrated cell-led manufacturing ecosystem. Domestic cell manufacturing is becoming increasingly important, and integrated manufacturing is expected to become a key differentiator in the evolving industry landscape. Saatvik is well positioned for this transition. Our strategy is centered around strengthening our core module and cell manufacturing capabilities, followed by deeper backward integration into ingot and wafer manufacturing, supported by ancillary capabilities such as encapsulants. This deeper integration will provide greater control over key inputs, enhance operational resilience, and help us manage the impact of commodity prices, foreign exchange movements, and global market volatility more effectively. Looking ahead, we remain constructive on the long-term opportunity in the Indian renewable energy market.

Speaker #4: To transition, the industry is progressively moving from a predominantly module-led model toward a more integrated, cell-led manufacturing ecosystem. Domestic cell manufacturing is becoming increasingly important, and integrated manufacturing is expected to become a key differentiator in the evolving industry landscape.

Speaker #2: The cost environment also remained challenging, with volatility in commodity prices, logistics cost, and foreign currency movements. While Q1 execution was moderate, our forward order visibility remains short.

Speaker #4: Saatvik is well positioned for this transition. Our strategy is centered around strengthening our core module and cell manufacturing capabilities, followed by deeper backward integration into ingot and wafer manufacturing.

Speaker #2: Our confirmed order book currently stands at approximately 6.35 gigawatts. Representing around 132% of our current operational module capacity of 4.8 gigawatt, and providing strong forward revenue visibility.

Speaker #4: Supported by ancillary capabilities, such as encapsulants, this deeper integration will provide greater control over key inputs, enhance operational resilience, and help us manage the impact of commodity prices, foreign exchange movements, and global market volatility more effectively.

Speaker #2: We have also continued to receive orders. In July 2026, we secured a Rs. 138 crore domestic solar PV module order with execution scheduled by December 2026.

Speaker #2: Further, on 11 August 2026, orders aggregating approximately 400 crores were received and accepted by our subsidiary for the supply of solar PV modules, with the execution scheduled by March 2027.

Speaker #4: Looking ahead, we remain constructive on the long-term opportunity in the Indian renewable energy market. India’s solar demand continues to be supported by the country’s target of 500 gigawatts of non-fossil fuel capacity by 2030, along with initiatives such as PM Suryagarh, PM Kusum, and the broader push toward domestic renewable energy manufacturing.

Neelesh Garg: India's solar demand continues to be supported by the country's target of 500 gigawatts of non-fossil fuel capacity by 2030, along with initiatives such as PM-Surya Ghar, PM-KUSUM, and the broader push towards domestic renewable energy manufacturing. We also see increasing opportunities across C&I, distributed solar, and other emerging customer segments. At Saatvik, we are continuing to diversify our customer base and market presence. We have entered the B2C segment, are strengthening our distribution network, and continue to focus on expanding our export opportunities. Alongside this, we are expanding our product portfolio through offerings such as the Saatvik SuryaConnect Solar Kit and the UDAY Plus Hybrid Inverter, enabling us to participate across a wider range of residential and commercial applications.

[Company Representative] (Saatvik): India's solar demand continues to be supported by the country's target of 500 GW of non-fossil fuel capacity by 2030, along with initiatives such as PM-Surya Ghar, PM-KUSUM, and the broader push towards domestic renewable energy manufacturing. We also see increasing opportunities across C&I, distributed solar, and other emerging customer segments. At Saatvik, we are continuing to diversify our customer base and market presence. We have entered the B2C segment, are strengthening our distribution network, and continue to focus on expanding our export opportunities. Alongside this, we are expanding our product portfolio through offerings such as the Saatvik SuryaConnect Solar Kit and the UDAY Plus Hybrid Inverter, enabling us to participate across a wider range of residential and commercial applications.

Speaker #2: These orders reinforced our view that the underlying demand environment remains healthy. From a balance sheet perspective, we have continued to maintain financial discipline while investing in our expansion initiatives.

Speaker #4: We also see increasing opportunities across CNI, distributed solar, and other emerging customer segments. At Saatvik, we are continuing to diversify our customer base and market presence.

Speaker #2: Our debt-to-equity ratio stood at 0.99. As we move forward, our focus will remain on maintaining prudent financial discipline and ensuring that our expansion is supported by a balanced capital structure.

Speaker #2: With the Odisha facility approaching ramp-up, our focus in the coming quarters will be on improving capacity utilization, stabilizing operations, and progressively realizing the benefits of our integrated manufacturing strategy.

Speaker #4: We have entered the B2C segment. We are strengthening our distribution network and continuing to focus on expanding our export opportunities. Alongside this, we are expanding our product portfolio through offerings such as the Saatvik Surya Connect Solar Kit and the Uday Plus Hybrid Inverter.

Speaker #2: With that, I conclude the financial and operational update for Q1 FY27. We would now like to open the floor for questions and answers. Thank you.

Speaker #4: This enables us to participate across a wider range of residential and commercial applications. Our broader objective is to progressively evolve from a solar manufacturer into an integrated energy platform, with capabilities across manufacturing, power electronics, storage, components, and broader energy infrastructure.

Speaker #3: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone.

Neelesh Garg: Our broader objective is to progressively evolve from a solar manufacturer into an integrated energy platform with capabilities across manufacturing, power electronics, storage, components, and broader energy infrastructure. With that, I will now hand over the call to our Interim Chief Financial Officer, Mr. Rishabh Mehtta, to take you through the detailed financial and operational performance for the quarter. Thank you.

[Company Representative] (Saatvik): Our broader objective is to progressively evolve from a solar manufacturer into an integrated energy platform with capabilities across manufacturing, power electronics, storage, components, and broader energy infrastructure. With that, I will now hand over the call to our Interim Chief Financial Officer, Mr. Rishabh Mehtta, to take you through the detailed financial and operational performance for the quarter. Thank you.

Speaker #3: 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.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Yogesh from NBI and Associates.

Speaker #4: With that, I will now hand over the call to our Interim Chief Financial Officer, Mr. Rishabh Mehta, to take you through the detailed financial and operational performance for the quarter.

Speaker #4: Thank you. Thank you, Anileji, and good evening, everyone. I will now take you through the financial and operational performance for Quarter 1, Fiscal Year 2027.

Rishabh Mehtta: Thank you, Nilayji, and good evening, everyone. I will now take you through the financial and operational performance for Q1, fiscal year 2027. As highlighted earlier, the quarter was impacted by lower execution volumes, customer-led delays, commodity and logistics cost volatility, foreign currency movements, and our conscious decision to remain selective in executing orders where the prevailing commercial economics were not attractive. For Q1, FY 2027, production stood at 408 megawatt compared to 935 megawatt in Q4, FY 2026 and 685 megawatt in Q1, FY 2026. Sales stood at 334 megawatt compared with 1,050 megawatt in Q4, FY 2026, and 579 megawatt in Q1, FY 2026.

Rishabh Mehtta: Thank you, Nilayji, and good evening, everyone. I will now take you through the financial and operational performance for Q1, fiscal year 2027. As highlighted earlier, the quarter was impacted by lower execution volumes, customer-led delays, commodity and logistics cost volatility, foreign currency movements, and our conscious decision to remain selective in executing orders where the prevailing commercial economics were not attractive. For Q1, FY 2027, production stood at 408 MW compared to 935 MW in Q4, FY 2026 and 685 MW in Q1, FY 2026. Sales stood at 334 MW compared with 1,050 MW in Q4, FY 2026, and 579 MW in Q1, FY 2026.

Speaker #3: Please proceed with your question.

Speaker #4: As highlighted earlier, the quarter was impacted by lower execution volumes, customer-led delays, commodity and logistics cost volatility, foreign currency movements, and our conscious decision to remain selective in executing orders where the prevailing commercial economics were not attractive.

Speaker #2: Hello? Hello? Yes, please continue. We can hear you.

Speaker #4: Yeah, hi. Yeah, hi. Thank you so much for giving this opportunity. Sir, I just wanted to I just wanted to know some take initiatives that you have taken to protect your margin.

Speaker #4: For quarter one, FY27, production stood at 408 megawatts, compared to 935 megawatts in quarter four, FY26, and 685 megawatts in quarter one, FY26.

Speaker #4: If you can highlight this. Yeah, that's all right.

Speaker #2: Okay. So the key initiatives which we have taken to protect our margins is, firstly, we are progressing well on our sell manufacturing. What we have done is, earlier if you see, our target was to start our sell manufacturing in the last quarter of this financial year.

Speaker #4: Sales stood at 334 megawatt, compared with 1050 megawatt in quarter four, FY 26, and 579 megawatt in quarter one, FY 26. Revenue from operations stood at 5,110 million compared with 16,077 million in quarter four, FY 26, and 9,157 million in quarter one, FY 26.

Rishabh Mehtta: Revenue from operations stood at INR 5,110 million, compared with INR 16,077 million in Q4, FY 2026, and INR 9,157 million in Q1, FY 2026. EBITDA stood at INR 425 million, with an EBITDA margin of 8.33%, compared with INR 1,166 million and 7.25% margin in Q4, FY 2026, and INR 1,777 million in Q1, FY 2026. Profit after tax stood at INR 54 million, compared with INR 604 million in Q4, FY 2026, and INR 1,166 million in Q1, FY 2026. The moderation in the quarter was primarily driven by lower sales volume.

Speaker #2: But the things are progressing well. And as you can see in our presentation as well as the management commentary, that we are planning to apply for ALMM inspection in September, which is next month.

Speaker #4: EBITDA stood at $425 million, with an EBITDA margin of 8.33%, compared with $1,166 million and a 7.25% margin in Q4 FY26, and $1,777 million in Q1 FY26.

Speaker #2: So we are very, very hopeful that by Q3, we will be running our sell production. So this will immediately give a higher EBITDA in our second half of the year.

Speaker #4: Profit after tax stood at 54 million, compared with 604 million in Q4 FY26 and 1,166 million in Q1 FY26. The moderation in the quarter was primarily driven by lower sales volume.

Speaker #2: Apart from that, on a long-term basis, encapsulant currently we have 2 gigawatt capacity manufacturing capacity, but we are increasing it to 5 gigawatts. So that will also give us better control on our supply chain.

Speaker #4: As discussed earlier, certain customers adopted a wait-and-watch approach during the quarter, resulting in some execution being deferred. The cost environment also remained challenging, with volatility in commodity prices, logistics costs, and foreign currency movements.

Rishabh Mehtta: As discussed earlier, certain customers adopted a wait-and-watch approach during the quarter, resulting in some execution being deferred. The cost environment also remained challenging, with volatility in commodity prices, logistics cost, and foreign currency movements. While Q1 execution was moderate, our forward order visibility remains strong. Our confirmed order book currently stands at approximately 6.35 gigawatts, representing around 132% of our current operational module capacity of 4.8 gigawatt and providing strong forward revenue visibility. We have also continued to receive orders. in July 2026, we secured a INR 138 crore domestic solar PV module order with execution scheduled by December 2026. Further, on 11 August 2026, orders aggregating approximately INR 400 crores

Rishabh Mehtta: As discussed earlier, certain customers adopted a wait-and-watch approach during the quarter, resulting in some execution being deferred. The cost environment also remained challenging, with volatility in commodity prices, logistics cost, and foreign currency movements. While Q1 execution was moderate, our forward order visibility remains strong. Our confirmed order book currently stands at approximately 6.35 GW, representing around 132% of our current operational module capacity of 4.8 GW and providing strong forward revenue visibility. We have also continued to receive orders. in July 2026, we secured a INR 138 crore domestic solar PV module order with execution scheduled by December 2026. Further, on 11 August 2026, orders aggregating approximately INR 400 crores

Speaker #2: And better margins. Also, overall, the geopolitical situation has been very challenging in the last four, five months since the war in Iran started. And we have tried to protect us from this by also diversifying our supply chain sell purchases from outside China also, to the other FTA countries.

Speaker #4: While Q1 execution was moderate, our forward order visibility remains strong. Our confirmed order book currently stands at approximately 6.35 gigawatts, representing around 132% of our current operational module capacity of 4.8 gigawatts and providing strong forward revenue visibility.

Speaker #4: We have also continued to receive orders. In July 2026, we secured a ₹138 crore domestic solar PV module order, with execution scheduled by December 2026.

Speaker #2: So these are some of the factors which we are working on increasing our bottom line.

Speaker #4: Question you highlighted that adding 5 gigawatt of capacity. So by when can we expect that?

Speaker #4: Further, on 11 August 2026, orders aggregating approximately ₹400 crore were received and accepted by our subsidiary for the supply of solar PV modules, with execution scheduled by March 2027.

Rishabh Mehtta: was received and accepted by our subsidiary for the supply of solar PV modules with the execution scheduled by March 2027. These orders reinforce our view that the underlying demand environment remains healthy. From a financial perspective, we have continued to maintain financial discipline while investing in our expansion initiatives. Our debt-to-equity ratio stood at 0.99. As we move forward, our focus will remain on maintaining prudent financial discipline and ensuring that our expansion is supported by a balanced capital structure. With the Odisha facility approaching ramp up, our focus in the coming quarters will be on improving capacity utilization, stabilizing operations, and progressively realizing the benefits of our integrated manufacturing strategy. With that, I conclude the financial and operations update for Q1 FY27. We would now like to open the floor for questions and answers. Thank you.

Rishabh Mehtta: was received and accepted by our subsidiary for the supply of solar PV modules with the execution scheduled by March 2027. These orders reinforce our view that the underlying demand environment remains healthy. From a financial perspective, we have continued to maintain financial discipline while investing in our expansion initiatives. Our debt-to-equity ratio stood at 0.99. As we move forward, our focus will remain on maintaining prudent financial discipline and ensuring that our expansion is supported by a balanced capital structure. With the Odisha facility approaching ramp up, our focus in the coming quarters will be on improving capacity utilization, stabilizing operations, and progressively realizing the benefits of our integrated manufacturing strategy. With that, I conclude the financial and operations update for Q1 FY 2027. We would now like to open the floor for questions and answers. Thank you.

Speaker #2: We are in process of working on the equipment side. So hopefully, in the next few months, we'll be making more next quarter, we'll be making an announcement, and in the next few months, we will be upscaling that manufacturing as well.

Speaker #4: These orders reinforced our view that the underlying demand environment remains healthy. From a balance sheet perspective, we have continued to maintain financial discipline while investing in our expansion initiatives.

Speaker #4: Okay, okay. Got it. That's it from my side. Thanks.

Speaker #2: Thank you.

Speaker #4: And best of luck.

Speaker #4: Our debt-to-equity ratio stood at 0.99. As we move forward, our focus will remain on maintaining prudent financial discipline and ensuring that our expansion is supported by a balanced capital structure.

Speaker #2: Thank you.

Speaker #3: Thank you. The next question is from the line of Manaswini Mukherjee from Oracle. Please proceed with your question.

Speaker #4: With the Odisha facility approaching ramp-up, our focus in the coming quarters will be on improving capacity utilization, stabilizing operations, and progressively realizing the benefits of our integrated manufacturing strategy.

Speaker #5: Hi, sir. I hope I'm audible. I had a couple of questions. One was I wanted to know that when do you expect the sell manufacturing facility to start commercial production?

Speaker #4: With that, I conclude the financial and operational update for Q1 FY27. We would now like to open the floor for questions and answers.

Speaker #5: And then what are the utilization levels that you expect from the new module or the sell capabilities being FY27?

Speaker #4: Thank you.

Speaker #2: Okay. So thank you for the question. What we are doing now is, if you see, our sell equipment are currently can you hear me?

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Yogesh from YVN & Associates. Please proceed with your question.

Speaker #1: Thank you very much. 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 telephone.

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

Speaker #5: Yes, now. Better.

Speaker #2: Okay. Yeah. So our sell equipment is currently under installation. Our civil work on the plant in Odisha is more or less complete. And our sell installation equipment installation is in progress.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Yogesh from NY and Associates.

Speaker #2: We are going to start the ramp-up somewhere by end of this month or early September. And we are planning to apply for ALMM inspection somewhere in September.

Speaker #2: And once we start the ramp-up, we are so ramp-up will also be like small quantities will start coming immediately once the ramp-up starts. So it is first phase is 2.4 gigawatt, which is about 200 megawatt per month.

Speaker #1: Please proceed with your question.

[Analyst] (YVN & Associates): Hello? Hello?

Yogesh Nayyar: Hello? Hello?

Speaker #5: Hello. Hello.

Speaker #2: We are hopeful that the full ramp-up will happen in three months. So we should see a full ramp-up wherein we will get about 80% utilization by the fourth quarter of this year.

Speaker #4: Yes, please continue. We can hear you.

Prashant Mathur: Yes, please continue. We can hear you.

Speaker #5: Yeah, hi. Yeah, hi. Thank you so much for giving this opportunity. Sir, I just wanted to I just wanted to know some tech initiatives that you have taken to protect your margin.

[Analyst] (YVN & Associates): Yeah, hi. Thank you so much for giving this opportunity. Sir, I just wanted to know some tech initiatives that you have taken to protect your margin, if you can highlight it. Yeah.

Yogesh Nayyar: Yeah, hi. Thank you so much for giving this opportunity. Sir, I just wanted to know some tech initiatives that you have taken to protect your margin, if you can highlight it. Yeah.

Speaker #5: If you can highlight this—yeah, that's all right.

Speaker #5: Okay, okay. That makes sense. Thank you, sir.

Speaker #4: Okay. So, the key initiatives which we have taken to protect our margins are, firstly, we are progressing well on our cell manufacturing. What we have done is, earlier, if you see, our target was to start our cell manufacturing in the last quarter of this financial year.

Prashant Mathur: Okay. The key initiatives which we have taken to protect our margins is, firstly, we are progressing well on our cell manufacturing. What we have done is earlier, if you see, our target was to start our cell manufacturing in the last quarter of this financial year. The things are progressing well and as you can see in our presentation as well as the management commentary, that we are planning to apply for ALMM inspection in September, which is next month. We are very hopeful that by Q3, we will be running our cell production. This will immediately give a higher EBITDA in our H2 of the year. Apart from that, on a long-term basis, encapsulant, currently we have 2 gigawatts manufacturing capacity, but we are increasing it to 5 gigawatts.

Prashant Mathur: Okay. The key initiatives which we have taken to protect our margins is, firstly, we are progressing well on our cell manufacturing. What we have done is earlier, if you see, our target was to start our cell manufacturing in the last quarter of this financial year. The things are progressing well and as you can see in our presentation as well as the management commentary, that we are planning to apply for ALMM inspection in September, which is next month. We are very hopeful that by Q3, we will be running our cell production. This will immediately give a higher EBITDA in our H2 of the year. Apart from that, on a long-term basis, encapsulant, currently we have 2 GW manufacturing capacity, but we are increasing it to 5 GW.

Speaker #2: Thank you.

Speaker #3: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is on the line of Mahesh Kumar from MU Investments.

Speaker #3: Please proceed with your question.

Speaker #6: Hi, sir. Good evening. And thanks for the opportunity. Just wanted to understand, as you move towards a more integrated manufacturing setup with sell, and eventually in God's end, wafer capacity, how should we think about the margin trajectory?

Speaker #4: But things are progressing well, and as you can see in our presentation, as well as the management commentary, we are planning to apply for ALMM inspection in September, which is next month.

Speaker #6: Do you see integration leading to a structural better margin profile over the next couple of years?

Speaker #4: So we are very, very hopeful that by quarter three, we will be running our cell production. This will immediately give a higher EBITDA in our second half of the year.

Speaker #2: Yes. So as you may be aware, ALMM2 was supposed to be fully operational from 1st of July. But because of the shortage of sell manufacturing in India, this has been postponed now to 1st of January, starting from 1st of January.

Speaker #4: Apart from that, on a long-term basis, for encapsulant, currently we have a 2-gigawatt manufacturing capacity, but we are increasing it to 5 gigawatts. So that will also give us better control on our supply chain.

Speaker #2: So there are there is a very high demand for domestic sell and domestic sell-based modules, ALMM2 compliant modules. So once we have a sell manufacturing starts, we will we feel it will be a significant increase in our EBITDA and the bottom line.

Prashant Mathur: That will also give us better control on our supply chain and better margins. Also, overall, the geopolitical situation has been very challenging in the last 4, 5 months since the war in Iran started. We have tried to protect us from this by also diversifying our supply chain, cell purchases from outside China also to the other FTA countries. These are some of the factors which we are working on increasing our bottom line.

Prashant Mathur: That will also give us better control on our supply chain and better margins. Also, overall, the geopolitical situation has been very challenging in the last four, five months since the war in Iran started. We have tried to protect us from this by also diversifying our supply chain, cell purchases from outside China also to the other FTA countries. These are some of the factors which we are working on increasing our bottom line.

Speaker #4: And better margins. Also, overall, the geopolitical situation has been very challenging in the last four or five months since the war in Iran started.

Speaker #2: Difficult to give a number, but it's going to be in the high double digits. That is what we can say. Right now.

Speaker #4: And we have tried to protect ourselves from this by also diversifying our supply chain cell purchases from outside China, to other FTA countries as well.

Speaker #6: Yeah, yeah. And sir, on the if I look at Q1 EBITDA margins, have came down quite sharply compared to the last year. Despite strong order book we have, could you help us understand what were the key factors behind the margin compression?

Speaker #4: So, these are some of the factors on which we are working to increase our bottom line.

Speaker #5: You mentioned that you're adding 5 gigawatts of capacity. By when can we expect that?

[Analyst] (YVN & Associates): Question. You highlighted that adding 5 gigawatts of capacity. By when can we expect that?

Yogesh Nayyar: Question. You highlighted that adding 5 GW of capacity. By when can we expect that?

Speaker #6: And should we expect this to normalize as capacity utilization improves?

Prashant Mathur: We are in process of working on the equipment side.

Prashant Mathur: We are in process of working on the equipment side. Hopefully, in the next few months we will be making more. Next quarter, we will be making an announcement, and in the next few months we will be upscaling that manufacturing as well.

Speaker #4: We are in the process of working on the equipment side. So hopefully, in the next few months, we'll be making more. Next quarter, we'll be making an announcement, and in the next few months, we will be upscaling that manufacturing as well.

Speaker #2: Yeah, firstly, we currently do not have sell manufacturing. So module manufacturing is what we currently have. And it has become a crowded market. So overall, if you see in our last quarter also, last quarter was about 7.85 7.25% EBITDA.

Prashant Mathur: Hopefully, in the next few months we will be making more. Next quarter, we will be making an announcement, and in the next few months we will be upscaling that manufacturing as well.

Speaker #5: Okay, okay. Got it. That's it from my side. Thanks, and best of luck. Yeah.

[Analyst] (YVN & Associates): Okay. Got it. That is it from my side. Thank you.

Yogesh Nayyar: Okay. Got it. That is it from my side. Thank you.

Prashant Mathur: Thank you.

[Analyst] (YVN & Associates): And best of luck.

Yogesh Nayyar: And best of luck.

Speaker #2: This quarter is still better 8.33. So one factor is that it has become a crowded market. But the other factor has been the geopolitical situation, which has impacted commodity prices, freight cost, and forex foreign currency also.

Speaker #4: Thank you.

Prashant Mathur: Thank you.

Operator: Thank you. The next question is from the line of Mansavani Mukherjee from Oreck. Please proceed with your question.

Operator: Thank you. The next question is from the line of Manaswini Mukherjee from Oracle. Please proceed with your question.

Speaker #1: Thank you. The next question is from the line of Mantravani Mukherji from Oracle. Please proceed with your question.

Speaker #6: Hi, sir. I hope I'm audible. I had a couple of questions. One was, I wanted to know when you expect the cell manufacturing facility to start commercial production?

Mansavani Mukherjee: Hi, sir. I hope I am audible.

Manaswini Mukherjee: Hi, sir. I hope I am audible.

Prashant Mathur: Yes.

Mansavani Mukherjee: I had a couple of questions. One was, I wanted to know when you expect the cell manufacturing facility to start commercial production. What are the utilization levels that you expect from the new module or the cell capabilities during FY27, if possible?

Manaswini Mukherjee: I had a couple of questions. One was, I wanted to know when you expect the cell manufacturing facility to start commercial production. What are the utilization levels that you expect from the new module or the cell capabilities during FY 2027, if possible?

Speaker #2: The commodity price has fluctuation has impacted the input costs. Higher logistics and freight cost has impacted margins, and foreign currency fluctuation has impacted our imported input cost.

Speaker #6: And then, what are the utilization levels that you expect from the new module or the cell capabilities during FY27?

Speaker #2: So all this apart from that, because of so a lot of customers postpone their purchase also because ALMM1 versus ALMM2, there was a lot of uncertainty so a lot of C&I customers also pushed their purchases.

Speaker #4: Okay, so thank you for the question. What we are doing now is, if you see, our cell equipment is currently—can you hear me?

Prashant Mathur: Okay. Thank you for the question. What we are doing now is, if you see our cell equipment are currently-

Mansavani Mukherjee: Hello.

Manaswini Mukherjee: Hello.

Prashant Mathur: Can you hear me?

Speaker #6: Yes, now. Better.

Mansavani Mukherjee: Yes. Now, better.

Manaswini Mukherjee: Yes. Now, better.

Speaker #4: Okay. Yeah. So our cell equipment is currently under installation. Our civil work on the plant in Odisha is more or less complete, and our cell equipment installation is in progress.

Prashant Mathur: Okay. Yeah. Our cell equipment is currently under installation. Our civil work on the plant in Odisha is more or less complete. Our cell equipment installation is in progress. We are going to start the ramp up somewhere by end of this month or early September. We are planning to apply for ALMM inspection somewhere in September. Once we start the ramp up, small quantities will start coming immediately once the ramp up starts. Its first phase is 2.4 gigawatt, which is about 200 megawatt per month. We are hopeful that the full ramp up will happen in three months. We should see a full ramp up, wherein we will get about 80% utilization by Q4 of this year.

Prashant Mathur: Okay. Yeah. Our cell equipment is currently under installation. Our civil work on the plant in Odisha is more or less complete. Our cell equipment installation is in progress. We are going to start the ramp up somewhere by end of this month or early September. We are planning to apply for ALMM inspection somewhere in September. Once we start the ramp up, small quantities will start coming immediately once the ramp up starts. Its first phase is 2.4 GW, which is about 200 MW per month. We are hopeful that the full ramp up will happen in three months. We should see a full ramp up, wherein we will get about 80% utilization by Q4 of this year.

Speaker #2: So the demand also from the customer side was low. Margins were compressed already because of all these geopolitical situation. And since demand was low, that has that has compressed the margins further.

Speaker #4: We are going to start the ramp-up sometime by the end of this month or early September. We are also planning to apply for ALMM inspection sometime in September.

Speaker #2: Because of these two situations. We also kind of kept a selective approach for our order execution. Because when input cost was high, we were not able to transfer those prices to the customer.

Speaker #4: And once we start the ramp-up, we are so ramp-up will also be like small quantities will start coming immediately once the ramp-up starts. So it is first phase is 2.4 gigawatt, which is about 200 megawatt per month.

Speaker #2: And so we chose only to do some profitable orders only. So that has that is one of the reason why you see lower EBITDA.

Speaker #4: We are hopeful that the full ramp-up will happen in three months. So, we should see a full ramp-up wherein we will get about 80% utilization by the fourth quarter of this year.

Speaker #2: But it should improve the volume should also improve in the second quarter onwards. However, the margins in the second quarter though the volume will be high, but the geopolitical situation again has continued to be what it was.

Speaker #6: Okay, okay. That makes sense. Thank you, sir.

Mansavani Mukherjee: Okay. That makes sense. Thank you, sir.

Manaswini Mukherjee: Okay. That makes sense. Thank you, sir.

Speaker #2: Also, raw material cost, there has been some policy changes in US because of that the sell and the polysilicon prices are also gone up in the last two weeks.

Speaker #4: Thank you.

Prashant Mathur: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Mahesh Kumar from MU Investments.

Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is on the line of Mahesh Kumar from MU Investments. Please proceed with your question.

Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is on the line of Manish Kumar from MU Investments. Please proceed with your question.

Speaker #2: So all these factor, unless our sell manufacturing scales up, which we are very confident that in the second half of the year, our sell will start giving revenues our margins will significantly improve in the second half of the year.

Speaker #1: Please proceed with your question.

Speaker #7: Hi, sir. Good evening, and thanks for the opportunity. I just wanted to understand, as you move towards a more integrated manufacturing setup with cell, and eventually ingot and wafer capacity, how should we think about the margin trajectory?

Mahesh Kumar: Hi, sir. Good evening, and thanks for the opportunity. Just wanted to understand, as you move towards a more integrated manufacturing setup with cell, and eventually ingots and wafer capacity, how should we think about the margin trajectory? Do you see integration leading to a structural better margin profile over the next couple of years?

Manish Kumar: Hi, sir. Good evening, and thanks for the opportunity. Just wanted to understand, as you move towards a more integrated manufacturing setup with cell, and eventually ingots and wafer capacity, how should we think about the margin trajectory? Do you see integration leading to a structural better margin profile over the next couple of years?

Speaker #6: Okay. Makes sense, sir. Just last question from my side. While the order book is quite strong that we have around 6.35 gigawatts of order book, could you please give us some color on the mix of these orders in terms of utility scale versus C&I?

Speaker #7: Do you see integration leading to a structurally better margin profile over the next couple of years?

Speaker #4: Yes, so as you may be aware, ALMM2 was supposed to be fully operational from 1st of July. But because of the shortage of cell manufacturing in India, this has now been postponed to 1st of January, starting from 1st of January.

Prashant Mathur: Yes. ALMM2 was supposed to be fully operational from 1 July. But because of the shortage of cell manufacturing in India, this has been postponed now to 1 January, starting from 1 January. So there is a very high demand for domestic cell and domestic cell-based modules, ALMM2 compliant modules. Once our cell manufacturing starts, we feel it will be a significant increase in our EBITDA and the bottom line. Difficult to give a number, but it is going to be in the high double digits. That is what we can say right now.

Speaker #6: And how you are thinking about the margin profile of the current order book compared with the business you are executing today?

Speaker #2: So if you one is on the DCR and the non-DCR side. So almost 30% of these orders are DCR. Domestic sell orders. In terms of the mix, about 70% of them are utility.

Speaker #4: So there are there is a very high demand for domestic cell and domestic cell-based modules, ALMM2-compliant modules. So once we have a cell manufacturing starts, we will we feel it will be a significant increase in our EBITDA and the bottom line.

Speaker #2: And about 30% is C&I. And open access. Retail customers are not there in the list because these are come on a monthly basis and get executed in a week's time.

Prashant Mathur: Once our cell manufacturing starts, we feel it will be a significant increase in our EBITDA and the bottom line. Difficult to give a number, but it is going to be in the high double digits. That is what we can say right now.

Speaker #4: It's difficult to give a number, but it's going to be in the high double digits—that is what we can say right now.

Speaker #2: So those are not there in the list. But mostly it is 70% utility. 30% C&I.

Speaker #6: Okay, okay. That answers my question, sir. I will join back the queue. Thank you.

Speaker #2: Thank you very much.

Speaker #7: Yeah, yeah. And sir, if I look at Q1 EBITDA margins, they have come down quite sharply compared to last year. Despite the strong order book we have, could you help us understand what were the key factors behind the margin compression?

Mahesh Kumar: Yeah. Sir, if I look at Q1 EBITDA margins have came down quite sharply compared to the last year, despite strong order book we have. Could you help us understand where the key factors behind the margin compression and should we expect this to normalize as capacity utilization improves?

Manish Kumar: Yeah. Sir, if I look at Q1 EBITDA margins have came down quite sharply compared to the last year, despite strong order book we have. Could you help us understand where the key factors behind the margin compression and should we expect this to normalize as capacity utilization improves?

Speaker #1: Thank you. The next question is from the line of Prakhar Porwal. From Ambit Capital, please proceed with your question.

Speaker #7: Thank you. So my question, two questions. One, where do you see debt peaking now? And what type of Capex what amount of Capex would incur in the 27 and 28?

Speaker #7: And should we expect this to normalize as capacity utilization improves?

Speaker #4: Yeah. Firstly, we currently do not have cell manufacturing, so module manufacturing is what we currently have. And it has become a crowded market.

Prashant Mathur: Firstly, we currently do not have cell manufacturing. Module manufacturing is what we currently have, and it has become a crowded market. Overall, if you see in our last quarter also, last quarter was about 7.25% EBITDA. This quarter is still better, 8.33%. One factor is that it has become a crowded market. But the other factor has been the geopolitical situation, which has impacted commodity prices, freight cost, and foreign currency also. The commodity price fluctuation has impacted the input costs. Higher logistics and freight costs has impacted margins, and foreign currency fluctuation has impacted our imported input cost. Apart from that, a lot of customers postponed their purchase also because ALMM1 versus ALMM2, there was a lot of uncertainty. A lot of C&I customers also pushed their purchases. The demand also from the customer side was low.

Speaker #7: That is question.

Speaker #2: Hello. Yes, Prakhar. So the debt that we are at right now is approximately at 1,250 crores. Which majorly includes our debt related to our Odisha plant.

Speaker #4: So overall, if you see, in our last quarter also, last quarter was about 7.85-7.25% EBITDA. This quarter is still better at 8.33%. So, one factor is that it has become a crowded market.

Speaker #2: And also our Capex project right now, till now the Capex that we have done is about 1,000 crores. And the rest is underway.

Speaker #7: How much have you incurred? 1,200 crores? How much have you incurred?

Speaker #4: But the other factor has been the geopolitical situation, which has impacted commodity prices, freight costs, and foreign currency (forex) as well. The commodity price fluctuation has impacted the input costs.

Speaker #2: We have yet incurred 1,000 crores. Of Capex. Till now.

Speaker #7: And total Capex on the 6 gigawatt sell plus 4 module would be?

Speaker #2: So the right now, with the phase one that we have of about 2.4 gigawatt of sell, that is approximately and 4 gigawatt of module.

Speaker #4: Higher logistics and freight cost has impacted margins. And foreign currency fluctuation has impacted our imported input cost. So all this apart from that, because of so a lot of customers postpone their purchase also because ALMM1 versus ALMM2, there was a lot of uncertainty so a lot of C&I customers also pushed their purchases.

Speaker #2: That is approximately 1,850 crores. And the phase two of 3.6 gigawatt of sell would be approximately around 1,600 to 1,700 crores.

Speaker #7: Okay. So total roughly 3,500 crores out of 6,000.

Speaker #2: Roughly 3,500 crores. Yes.

Speaker #7: Okay. And any net debt number that you expect might be where you peak given margins and what type of EBITDA maybe internal cash flows you would generate?

Speaker #4: So, the demand also from the customer side was low. Margins were compressed already because of all these geopolitical situations. And since demand was low, that has compressed the margins further.

Prashant Mathur: Margins were compressed already because of all these geopolitical situation. Since demand was low, that has compressed the margins further because of these two situations. We also kind of kept a selective approach for our order execution because when input cost was high, we were not able to transfer those prices to the customer. We chose only to do some profitable orders only. That is one of the reason why you see lower EBITDA. But it should improve. The volume should also improve in the second quarter onwards. However, the margins in the second quarter, though the volume will be high, but this geopolitical situation again has continued to be what it was. Also, raw material costs. There has been some policy changes in US because of that, the cell and the polysilicon prices have also gone up in the last two weeks.

Speaker #7: Anything maybe FY28 that way? Do you see that?

Speaker #2: The net debt with what we are looking at would be at around 2,200 crores approximately. 2,200 to 2,400 crores.

Speaker #4: Because of these two situations, we also kind of kept a selective approach for our order execution. When input cost was high, we were not able to transfer those prices to the customer.

Speaker #7: Understood. Sure. My second question is on order book. You mentioned about the mix between utility and C&I. Can I also get the mix between what kind of orders will be fixed price versus orders where you can pass on the inflation to customers?

Speaker #4: And so, we chose to do only some profitable orders. So, that is one of the reasons why you see lower EBITDA.

Speaker #7: That's the second question.

Speaker #2: Okay. First question was? What will be the?

Speaker #4: But it should improve—the volume should also improve—from the second quarter onwards. However, the margins in the second quarter, though the volume will be high, just the geopolitical situation again has continued to be what it was.

Speaker #7: What will be the mix of your order book in terms of fixed price contracts and variable price? Basically where you can pass on the cost inflation to customers.

Speaker #2: Yeah. So the orders because on the module side, I would say almost 30% which are the C&I are fixed price. And on the utility side, I would say 30% 30, 40% is variable price.

Speaker #4: Also, raw material costs—there have been some policy changes in the US because of that. The cell and polysilicon prices have also gone up in the last two weeks.

Speaker #4: So all these factors, unless our cell manufacturing scales up—which we are very confident will happen in the second half of the year—our cell will start generating revenues and our margins will significantly improve in the second half of the year.

Prashant Mathur: All this factor, unless our cell manufacturing scales up, which we are very confident that in the second half of the year, our cell will start giving revenues. Our margins will significantly improve in the second half of the year.

Speaker #2: And the rest is fixed price.

Speaker #7: Okay. Sure. And just Prashant sir, lastly, on ALM, I was under the impression that might be there would be some 3.9 by the C&I customers to commission the project before 1st June.

Speaker #7: Okay, makes sense, sir. Just one last question from my side. While the order book is quite strong—we have around 6.35 gigawatts of orders—could you please give us some color on the mix of these orders in terms of utility scale versus C&I?

Mahesh Kumar: Okay. Makes sense, sir. Just last question from my side. While the order book is quite strong, that we have around 6.35 gigawatts of order book, could you please give us some color on the mix of these orders in terms of utility scale versus C&I, and how you are thinking about the margin profile of the current order book compared with the business you are executing today?

Manish Kumar: Okay. Makes sense, sir. Just last question from my side. While the order book is quite strong, that we have around 6.35 GW of order book, could you please give us some color on the mix of these orders in terms of utility scale versus C&I, and how you are thinking about the margin profile of the current order book compared with the business you are executing today?

Speaker #7: And hence volumes could be better in this quarter. And anyways, 1Q is a relatively strong quarter than maybe 2Q. But your maybe what you are saying that suggests that there was delay they were delays and people were on wait and watch type of strategy to see how policy unfolds.

Speaker #7: And how are you thinking about the margin profile of the current order book compared with the business you are executing today?

Speaker #4: So, if you look at it, one is on the DCR and the non-DCR side. So, almost 30% of these orders are DCR, domestic cell orders. In terms of the mix, about 70% of them are utility.

Speaker #7: So where's the disconnect? How is my understanding wrong? Maybe if you can put some light in that.

Prashant Mathur: One is on the DCR and the non-DCR side. Almost 30% of these orders are DCR domestic sell orders. In terms of the mix, about 70% of them are utility and about 30% is C&I and open access. Retail customers are not there in the list because these come on a monthly basis and get executed in a week's time. So those are not there in the list. But mostly it is 70% utility, 30% C&I.

Speaker #2: I think what happened is that when the Iran war Feb, the prices input prices went up. Not only for solar panels, but for all items.

Speaker #4: And about 30% is C&I and open access. Retail customers are not there in the list because these come on a monthly basis and get executed in a week's time.

Speaker #2: For a project. And what happened is that a lot of these projects got pushed because of this situation. And there was always this going on that firstly, the input cost is high and the war is going to get over in few days.

Speaker #4: So, those are not there in the list. But mostly, it is 70% utility and 30% C&I.

Speaker #7: Okay, okay. That answers my question, sir. I will join back with you. Thank you.

Mahesh Kumar: Okay. That answers my question, sir. I will join back the queue. Thank you.

Manish Kumar: Okay. That answers my question, sir. I will join back the queue. Thank you.

Speaker #4: Thank you very much.

Prashant Mathur: Thank you very much.

Speaker #2: And the things will get stabilized. So the project developers kind of were in wait and watch because of that. And secondly, what happened is when the war situation happened, then force majeure notices were given by manufacturers and there was underlining sentiment in the market that projects will get extended extension will come because of that.

Speaker #2: Thank you. The next question is from the line of Prakhat Porwal from Ambit Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Prakhar Porwal from Ambit Capital. Please proceed with your question.

Speaker #8: Thank you. Sir, my question two questions. One, where do you see a debt peaking now? And what type of capex what amount of capex is incoming after 2027 and 2028?

Prakhar Porwal: Thank you. Sir, two questions. One, where do you see debt peaking now, and what amount of CapEx will incur in FY27 and FY28? That's the question.

Prakhar Porwal: Thank you. Sir, two questions. One, where do you see debt peaking now, and what amount of CapEx will incur in FY 2027 and FY 2028? That's the question.

Speaker #8: That's the question.

Speaker #7: Hello. Yes, Prakhat. So, the debt that we are at right now is approximately ₹1,250 crore, which mainly includes our debt related to our Odisha plant.

Prashant Mathur: Hello. Yes, Prakhar. The debt that we are at right now is approximately at INR 1,250 crore, which majorly includes our debt related to our Odisha plant and also our CapEx project right now. Till now, the CapEx that we have done is about INR 1,000 crore, and the rest is underway.

Rishabh Mehtta: Hello. Yes, Prakhar. The debt that we are at right now is approximately at INR 1,250 crore, which majorly includes our debt related to our Odisha plant and also our CapEx project right now. Till now, the CapEx that we have done is about INR 1,000 crore, and the rest is underway.

Speaker #2: Because there was a war going on globally. So and eventually that happened also. But because of that, these two factors, one was the viability and the other was force majeure that a lot of these projects after March April, a lot of these projects were not able to get a commissioning and then there was this undercurrent that the DCR will get extended.

Speaker #7: And also, our capex project right now—till now, the capex that we have done is about ₹1,000 crore, and the rest is underway.

Prakhar Porwal: How much have you incurred when it comes?

Speaker #8: How much have you income? 1,250 crores? How much have you income?

Prashant Mathur: Sorry.

Rishabh Mehtta: Sorry.

Prakhar Porwal: How much have you incurred?

Speaker #7: We have yet incurred ₹1,000 crore of capex till now.

Prashant Mathur: We have yet incurred INR 1,000 crores of CapEx.

Rishabh Mehtta: We have yet incurred INR 1,000 crores of CapEx.

Prakhar Porwal: Okay. Total CapEx on the 6 gigawatt cell plus 4 module would be?

Prakhar Porwal: Okay. Total CapEx on the 6 GW cell plus 4 module would be?

Speaker #8: And total capex on the 6 gigawatt cell plus 4 module would be?

Speaker #2: So people were in a wait and watch situation. Because there was a situation wherein they were that they were not able to commission the projects.

Speaker #7: So right now, with the Phase One that we have of about 2.4 gigawatts of cell, that is approximately—and 4 gigawatts of module.

Prashant Mathur: Right now with the phase 1 that we have of about 2.4 gigawatt of cell and 4 gigawatt of module, that is approximately INR 1,850 crores. The phase 2 of 3.6 gigawatt of cell would be approximately around INR 1,600 to INR 1,700 crores.

Rishabh Mehtta: Right now with the phase 1 that we have of about 2.4 GW of cell and 4 GW of module, that is approximately INR 1,850 crores. The phase 2 of 3.6 GW of cell would be approximately around INR 1,600 to INR 1,700 crores.

Speaker #2: On time. So there were two type of tariff going on in the market. If the project gets commissioned before 30th June, then this tariff and if it is after 1st of July, then this tariff.

Speaker #7: That is approximately 1,850 crores. And the phase two of 3.6 gigawatt of cell would be approximately around 1,600 to 1,700 crores.

Speaker #8: Okay. So, roughly ₹3,500 crore out of ₹6,000 crore in total.

Prakhar Porwal: Okay. So total roughly INR 3,500 crore out of the 1,000-

Speaker #7: Roughly 3,500 crores. Yes.

Prashant Mathur: INR 3,500 crore. Yes.

Rishabh Mehtta: INR 3,500 crore. Yes.

Speaker #2: So customers were also kind of wait and watch. And that is the reason why you have subdued demand in the market in especially in May and June.

Speaker #8: Okay. And any net debt number that you expect might be there with these given margins, and what type of EBITDA or maybe internal cash flows within, right?

Prakhar Porwal: Okay. Any net debt number that you expect might be where it may peak, given margins and what type of maybe internal cash flows you would generate? Anything maybe FY28 that way, do you see that?

Speaker #7: Sure. And just lastly, on the second phase, which is 3.6 gigawatt sell, that you said would be ready by 2Q FY28. Is that the correct understanding?

Speaker #8: Anything, maybe FY28 debt? Do you see that?

Speaker #7: The net debt we are looking at would be around ₹2,200 crore, approximately ₹2,200 to ₹2,400 crore.

Prashant Mathur: The net debt with what we are looking at would be at around INR 2,200 crore, approximately INR 2,200 to 2,400 crore.

Rishabh Mehtta: The net debt with what we are looking at would be at around INR 2,200 crore, approximately INR 2,200 to 2,400 crore.

Speaker #8: Understood. Sure. My second question is on the order book. You mentioned the mix between utility and C&I. Can I also get the mix between what kinds of orders will be fixed price versus orders where you can pass on the inflation to customers?

Prakhar Porwal: Understood. Sure. My second question is on order book. You mentioned about the mix between utility and C&I. Can you also give the mix between what kind of orders will be fixed price versus orders where you can pass on the inflation to customers? That is the second question.

Speaker #2: Yes.

Speaker #7: And then further ramp up maybe to whatever time it takes, three months also?

Speaker #2: Correct. I think by the time our learning curve would have been far better. So we will be able to definitely do better than this.

Speaker #8: That's the second question.

Speaker #7: Sure. And actually on the previous question, when you said 30% of the orders are DCR, they maybe if they are expected to be delivered in next three to six months, then does that mean that you are now booking orders from the new cell line that is just getting commissioned?

Speaker #7: Okay. The first question was, what will be the...?

Prashant Mathur: Okay. First question was, what will be the?

Speaker #8: What will be the mix of your order book in terms of fixed price contracts and variable price? Basically, where you can pass on the cost inflation to customers.

Prakhar Porwal: What will be the mix of your order book in terms of fixed price contracts and variable price? Basically, where you can pass on the cost inflation to customers.

Speaker #7: Yeah. So the orders because on the module side, I would say almost 30% which are the C&I are fixed price. And on the utility side, I would say 30% 30, 40 percent is variable price.

Prashant Mathur: Yeah. The orders, because on the module side, I would say almost 30%, which are the C&I are fixed price. On the utility side, I would say 30% to 40% is variable price, and the rest is fixed price.

Speaker #7: Or you still purchase okay.

Speaker #2: No, no. Yeah, yeah. For now, we do purchase cells. DCR cells. But we have started taking DCR orders for our cell as well.

Speaker #7: And that would be from C&I customers?

Speaker #2: Yes.

Speaker #7: Utility because I assume will still be there some time, right?

Speaker #7: And the rest is fixed-price.

Speaker #2: Yeah. From Kusum, yeah, Kusum C&I residential, module manufacturers, also.

Speaker #8: Oh, okay. Sure. And just to clarify, lastly, on ALM, we are under the impression that there might be some 3.9 by the C&I customers to commission the project before 1st June.

Prakhar Porwal: Okay, sure. Prashant, sir, lastly, on ALMM, I was under the impression that there would be some component by the C&I customers to commission the project before 1 June, and hence volumes could be better in this quarter. Anyways, Q1 is a relatively strong quarter than maybe Q2. Maybe what you are saying suggests that there were delays and people were on wait and watch type of strategy to see how policy unfolds. So where is the disconnect? How is my understanding wrong? Maybe if you can put some light in that.

Speaker #7: Sure. Thank you for that.

Speaker #8: And hence, volumes could be better in this quarter. And anyways, 1Q is a relatively strong quarter than maybe 2Q. But your maybe what you are saying that suggests that there was they were delays and people were on wait and watch type of strategy to see how policy unfolds.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question is from the line of Maria Mittal and individual investor. Please proceed with your question.

Speaker #7: Thank you, sir, for the opportunity. So my question is, among the EPC, IPP storage, B2C, and the transform manufacturing, so which business do you expect to become more meaningful contributors to your EBITDA over the next two to three years?

Speaker #8: So, where's the disconnect? How is our understanding wrong? Maybe you can shed some light on that.

Prashant Mathur: I think what happened is that when the Iran war started on 20 February, the input prices went up not only for solar panels but for all items for a project. What happened is that a lot of these projects got pushed because of the situation. There was always this going on that firstly, the input cost is high and the war is going to get over in few days and things will get stabilized. So the project developers kind of were in wait and watch because of that. Secondly, what happened is when the war situation happened, then force majeure notices were given by manufacturers. There was underlining sentiment in the market that projects will get extended, extension will come because of that, because there was a war going on globally. Eventually that happened also.

Speaker #7: I think what happened is that when the Iran war started on February 20th, input prices went up—not only for solar panels, but for all items.

Speaker #2: Difficult to give a breakup, but firstly, thank you, Maria, for the question. Difficult to give you a breakup, but what we can what we have been targeting is that non-module rather non-cell module business has been in the range of four, five percent.

Speaker #7: For a project. And what happened is that a lot of these projects got pushed because of this situation. And there was always this going on, that firstly, the input cost is high and the war is going to get over in a few days.

Speaker #2: Our target is to take it to 15% of our revenue this year. Our target is to get to 7, 8 percent, 10 percent. But in next by next year, we will target is to get to 15% of non-solar module business.

Speaker #7: And the things will get stabilized. So the project developers kind of were in wait-and-watch mode because of that. And secondly, what happened is when the war situation happened, then force majeure notices were given by manufacturers, and there was an underlying sentiment in the market that projects will get extended—extension will come—because of that.

Speaker #7: Okay, sir. And so on a broader level, can you give you guidance for the FY27 also like revenue and EBITDA margins?

Speaker #2: For the whole year?

Speaker #7: Or for the whole year, yes.

Speaker #2: So our guidance remains as was given earlier. Between 3.5 to 4 gigawatt sales, revenue around 6,000 crores. With a EBITDA of about 12% and a PAT margin of about 6 to 7 percent.

Speaker #7: Because there was a war going on globally. So and eventually that happened also. But because of that, these two factors, one was the viability and the other was force majeure that a lot of these projects after March April, a lot of these projects were not able to get a commissioning and then there was this undercurrent that the DCR will get extended.

Prashant Mathur: Because of these two factors, one was the viability and the other was force majeure, a lot of these projects after March, April, a lot of these projects were not able to get a commissioning. Then there was this undercurrent that the DCR will get extended. So people were in a wait and watch situation because there was a situation wherein they were not able to commission the projects on time. So there were two type of tariff going on in the market. If the project gets commissioned before 30 June, then this tariff, and if it is after 1 July, then this tariff. So customers were also kind of wait and watch, and that is the reason why you have subdued demand in the market, especially in May and June.

Speaker #7: Okay, sir. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you. This will be take the next question. A gentle reminder to participants that you may press star and one to ask a question.

Speaker #1: The next question is from the line of Nimish Pandya, from NP Investments. Please proceed with your question.

Speaker #7: So people were in a wait and watch situation. Because there was a situation wherein they were that they were not able to commission the projects.

Speaker #7: So I have a couple of questions. My first question is, with the solar manufacturing landscape, evolving rapidly in India, how is Saatvik preparing to strengthen its market position over the next two to three years?

Speaker #7: On time. So there were two type of tariff going on in the market. If the project gets commissioned before 30th June, then this tariff and if it is after 1st of July, then this tariff.

Speaker #2: Thank you, Nimish, for the question. So firstly, it's very clear that the government vision is to make integrated manufacturing ecosystem in India. And we are very well aligned on that.

Speaker #7: So customers were also kind of wait and watch, and that is the reason why you have subdued demand in the market, especially in May and June.

Speaker #8: Sure. And just lastly, on the second phase, which is 3.6-gigawatt cell, you said it would be ready by Q2 FY28, if that's the correct understanding?

Prakhar Porwal: Lastly, on the second phase, which is 3.6 gigawatts cell that you said would be ready by Q2 FY28, is that the correct understanding?

Prakhar Porwal: Lastly, on the second phase, which is 3.6 GW cell that you said would be ready by Q2 FY 2028, is that the correct understanding?

Speaker #2: So we have to reduce our dependency on China so that is the first thing which the government is focusing on. So the module happened now cell manufacturing, and ingot wafer manufacturing, and eventually once polysilicon starts, then we are sufficient self-sufficient on the manufacturing.

Speaker #7: Yes.

Prashant Mathur: Yes.

Speaker #8: And then further ramp up, maybe to whatever time it takes—three months also?

Prakhar Porwal: Further ramp up maybe to whatever time it takes, three months or so.

Speaker #7: Correct. I think by that time, our learning curve would have been far better, so we will definitely be able to do better than this.

Prashant Mathur: Correct. I think by that time our learning curve would have been far better. So we will be able to definitely do better than this.

Speaker #2: So we are very well aligned with the vision. So you can see our cell manufacturing ingot wafer manufacturing is in that direction. The other thing is ancillaries.

Speaker #8: Sure. And actually, on the previous question, when you said 30% of the orders are DCF, they maybe they are expected to be delivered in next three to six months, then does that mean that you are now booking orders from the new cell line that is just getting commissioned?

Prakhar Porwal: Actually on the previous question, when you said 30% of the orders are DCR, maybe they are expected to be delivered in next three to six months, then does that mean that you are now booking orders from the new cell line that is just getting commissioned?

Speaker #2: So as the manufacturing ecosystem gets built, the ancillaries also automatically gets built. So it's already there for module. Eventually, once cell manufacturing will be close to about 100 gigawatt, we will see cell ancillaries also and an ingot wafer also so what we are doing is not only module manufacturing, cell manufacturing, and backwards, but also in the ancillaries.

Speaker #8: Or do you still purchase okay.

Prashant Mathur: Yes.

Prakhar Porwal: Or you will still purchase Okay.

Speaker #7: No, no. Yeah, yeah. For now, we do purchase cells. DCR cells. But we have started taking DCR orders for our cell as well.

Prashant Mathur: No, but for now we do purchase cells, DCR cells. But we have started taking DCR orders for our cell as well.

Speaker #2: Currently, our contribution in a project so solar module contribution is almost 50% of the project cost. And for us, as a cell and module manufacturer, this contribution is 50% of that so overall, if the module cost is 15 cents, about 50% of this is our value addition.

Speaker #8: And that would be from C&I customers?

Prakhar Porwal: That would be from ALMM manufacturers?

Speaker #7: Yes.

Prashant Mathur: Yes.

Speaker #8: Utility, because I assume it will still be there for some time?

Prakhar Porwal: Utility because I assume they will still be there some time, right?

Speaker #7: Yeah. From Kusum, yeah. Kusum C&I residential, module manufacturers also.

Prashant Mathur: Yeah. From PM-KUSUM, C&I residential.

Prashant Mathur: Yeah. From PM-KUSUM, C&I residential. Module manufacturers also.

Prashant Mathur: Module manufacturers also.

Prakhar Porwal: Sure. Thank you.

Speaker #8: Sure. Thank you for that.

Speaker #7: Thank you.

Prashant Mathur: Thank you.

Speaker #1: Thank you. The next question is from Maria Mittal, an individual investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of Maria Mittal, an individual investor. Please proceed with your question.

Speaker #2: Apart from a module, the project also has transformers inverters, and we are also getting into other ancillaries, transformers, inverters, so that we get and also battery storage.

Speaker #8: Thank you, sir, for the opportunity. So, my question is: among the EPC, IPP, storage, B2C, and the transform manufacturing, which business do you expect to become more meaningful contributors to your EBITDA over the next two to three years?

Maria Mittal: Thank you for the opportunity. Sir, my question is, among the EPC, IPP, storage, B2C, and the transformer manufacturing, which business do you expect to become more meaningful contributors to your EBITDA over the next two to three years?

Speaker #2: So that we get a bigger chunk. So from that 25% of a project cost, we want to increase it to 40 or 50 percent of the project cost.

Speaker #7: It's difficult to give a breakup, but firstly, thank you, Maria, for the question. It's difficult to give you a breakup, but what we have been targeting is that non-module, or rather, non-cell module business has been in the range of 4-5%.

Prashant Mathur: Difficult to give a breakup. Firstly, thank you, Maria, for the question. Difficult to give you a breakup, but what we have been targeting is that non-module, rather non-cell module business has been in the range of 4% to 5%. Our target is to take it to 15% of our revenue. This year, our target is to get to 7%, 8%, 10%. But by next year, our target is to get to 15% of non-solar module business.

Speaker #2: So that's how our vision is, and we want in terms of power electronics business, module business, ancillaries, for our EPC projects, for our solar kits, we have also launched solar kits lately.

Speaker #2: And a hybrid inverters, grid-tied inverters, off-grid inverters. So these are all in the pipeline. So we are creating various business units which will be run by business unit managers.

Speaker #7: Our target is to take it to 15% of our revenue this year. Our target is to get to 7%, 8%, 10%. But by next year, our target is to get to 15% of non-solar module business.

Speaker #2: Reporting into the entire in the group. So that's how we see our future. Did I answer your question?

Speaker #8: Okay, sir. And so, on a broader level, can you give your guidance for FY27 also, like revenue and EBITDA margins?

Maria Mittal: Okay, sir. Sir, on a broader level, can you give me guidance for the FY27 also, like revenue and EBITDA margins?

Maria Mittal: Okay, sir. Sir, on a broader level, can you give me guidance for the FY 2027 also, like revenue and EBITDA margins?

Speaker #7: Yes, sir. Yes, sir. So also, can you please throw some light on I mean, what could potentially slow down or affect the company's targeted capacity addition plans for FY27?

Speaker #7: For the whole year?

Prashant Mathur: For the whole year?

Maria Mittal: For the whole year, yes.

Speaker #8: For the whole year, yes.

Speaker #7: So our guidance remains as was given earlier: between 3.5 to 4 gigawatt sales, revenue around ₹6,000 crore, with an EBITDA of about 12%, and a PAT margin of about 6 to 7%.

Prashant Mathur: Our guidance remains as was given earlier, between 3.5 to 4 gigawatt sales, revenue around INR 6,000 crores, with an EBITDA of about 12% and a PAT margin of about 6% to 7%.

Prashant Mathur: Our guidance remains as was given earlier, between 3.5 to 4 GW sales, revenue around INR 6,000 crores, with an EBITDA of about 12% and a PAT margin of about 6% to 7%.

Speaker #2: Potentially, so I think from a structural point of view, the demand scenario is well structured. So last year, India did about 57 gigawatt, 55 to 57 gigawatt DC before that was about 35, 36.

Speaker #8: Okay. Thank you.

Maria Mittal: Okay, sir. Thank you.

Speaker #7: Thank you.

Speaker #1: Thank you. Before we take the next question, a gentle reminder to participants that you may press star and one (*1) to ask a question. The next question is from the line of Nimish Pandya from NP Investments.

Speaker #2: This year will be around same because there are structure happening from ALMM1 to LMM2, and there's not enough cell capacity. So we might see similar kind of but with the kind of demand projected with the electric vehicles, with data centers, AI, and overall, Indian economy growing, middle-class energy demand increasing, so there is going to be we see India market to be about 70, 80, and eventually about 100 gigawatt.

Prashant Mathur: Thank you.

Operator: Thank you. Before we take the next question, a gentle reminder to participants that you may press star and 1 to ask a question. The next question is from the line of Nimish Pandya from NP Investments. Please proceed with your question.

Speaker #1: Please proceed with your question.

Speaker #8: So, I have a couple of questions. My first question is: with the solar manufacturing landscape evolving rapidly in India, how is Saatvik preparing to strengthen its market position over the next two to three years?

Nimish Pandya: Sir, I have a couple of questions. My first question is, with the solar manufacturing landscape evolving rapidly in India, how is Saatvik preparing to strengthen its market position over the next 2 to 3 years?

Speaker #2: And then the replacement markets, about 100 gigawatt market. So we are well positioned from a demand point of view module manufacturing and then cell manufacturing backward integration is where we see our growth.

Prashant Mathur: Thank you, Nimish, for the question. Firstly, it's very clear that the government vision is to make integrated manufacturing ecosystem in India. We are very well aligned on that. We have to reduce our dependency on China. That is the first thing which the government is focusing on. The module happen, now cell manufacturing and ingot wafer manufacturing, and eventually once polysilicon starts, then we are self-sufficient on the manufacturing. We are very well aligned with the vision. That you can see our cell manufacturing, ingot wafer manufacturing is in that direction. The other thing is ancillaries. As the manufacturing ecosystem gets built, the ancillaries also automatically gets built. It's already there for module. Eventually, once cell manufacturing will be close to about 100 gigawatt, we will see cell ancillaries also and then ingot wafer also.

Prashant Mathur: Thank you, Nimish, for the question. Firstly, it's very clear that the government vision is to make integrated manufacturing ecosystem in India. We are very well aligned on that. We have to reduce our dependency on China. That is the first thing which the government is focusing on. The module happen, now cell manufacturing and ingot wafer manufacturing, and eventually once polysilicon starts, then we are self-sufficient on the manufacturing. We are very well aligned with the vision. That you can see our cell manufacturing, ingot wafer manufacturing is in that direction. The other thing is ancillaries. As the manufacturing ecosystem gets built, the ancillaries also automatically gets built. It's already there for module. Eventually, once cell manufacturing will be close to about 100 GW, we will see cell ancillaries also and then ingot wafer also.

Speaker #7: Thank you, Nimish, for the question. So firstly, it's very clear that the government vision is to make integrated manufacturing ecosystem in India. And we are very well aligned on that.

Speaker #2: Apart from that, globally also, once we have integrated manufacturing in India, right from at least from ingot onwards, we will see that globally also our manufacturing will be competitive.

Speaker #7: So we have to reduce our dependency on China so that is the first thing which the government is focusing on. So the module append or cell manufacturing and ingot wafer manufacturing and eventually once polysilicon starts, then we are sufficient self-sufficient on the manufacturing.

Speaker #2: And we will be able to compete on a global scale also, in other countries also. So India will become not only energy provider but also the equipment energy equipment provider also.

Speaker #7: So, we are very well aligned with the vision. You can see our cell manufacturing and ingot wafer manufacturing are in that direction. The other thing is ancillaries.

Speaker #2: So that's how we see our growth.

Speaker #7: Understood, sir. So last question from me, sir. So what role do you see Malcolm playing in Saatvik's transformer manufacturing plans? And sir, how large can this business become over the next few years?

Speaker #7: So, as the manufacturing ecosystem gets built, the ancillaries also automatically get built. So, it's already there for modules. Eventually, once cell manufacturing is close to about 100 gigawatts, we will see cell ancillaries also, and then ingot wafer also. So, what we are doing is not only module manufacturing, cell manufacturing, and backward integration, but also in the ancillaries.

Speaker #2: So Malcolm acquisition has recently happened. So that was somewhere mid of quarter one. And we are also learning transformer business and power electronics business.

Prashant Mathur: What we are doing is not only module manufacturing, cell manufacturing and backwards, but also in the ancillaries. Currently, our contribution in a project, solar module contribution is almost 50% of the project cost. For us, as a cell and module manufacturer, this contribution is 50% of that. Overall, if the module cost is INR 15 cents, about 50% of this is our value addition. Apart from a module, the project also has transformers, inverters. We are also getting into other ancillaries, transformers, inverters, and also battery storage, so that we get a bigger chunk. From that 25% of a project cost, we want to increase it to 40% or 50% of the project cost. That's how our vision is. We want, in terms of power electronics business, module business, ancillaries for our EPC projects, for our solar kits.

Speaker #2: So we have entered this business so firstly, transformer, there's a huge demand not only in renewable but overall transmission, overall energy mix. There is a demand of transformer everywhere.

Speaker #7: Currently, our contribution in a project—so, solar module contribution—is almost 50% of the project cost. And for us, as a cell and module manufacturer, this contribution is 50% of that. So overall, if the module cost is 15 cents, about 50% of this is our value addition.

Speaker #2: So the market size currently is about 30,000 crore for transformer. Which is also slated to become about 55,000 crore by 2031. So that is the kind of market size which is available for us.

Speaker #2: We are in the learning phase. Right now, but we also are expanding planning to expand our manufacturing. And we will make an announcement soon on that as well.

Speaker #7: Apart from a module, the project also has transformers and inverters, and we are also getting into other ancillaries—transformers, inverters—so that we get, and also battery storage.

Speaker #2: But we want to take a significant market share in this. We have always targeted to be about target to about 8 to 10 percent of the market share.

Speaker #7: So that we get a bigger chunk. So, from that 25% of a project cost, we want to increase it to 40 or 50% of the project cost.

Speaker #2: And eventually, that's where we see in our journey in the transformer business also, we want to be in that. It will take some time, but I feel that we want to make it a 1,500,000, 1,500 crore business in the next three, four years.

Speaker #7: So that's how our vision is, and we want— in terms of power electronics business, module business, ancillaries for our EPC projects, for our solar kits. We have also launched solar kits lately.

Prashant Mathur: We have also launched solar kits lately, and hybrid inverters, grid tie inverters, off-grid inverters. So these are all in the pipeline. So we are creating various business units, which will be run by business unit managers, reporting into the entire in the group. So that's how we see our future. Did I answer your question?

Speaker #7: Understood, sir. Understood. Thanks a lot, sir. Dr. Thomas, thanks a lot, sir.

Speaker #7: And hybrid inverters, grid-tied inverters, off-grid inverters—these are all in the pipeline. So we are creating various business units, which will be run by business unit managers.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question is from the line of Preksha from Motilal Oswal. Please proceed with your question.

Speaker #3: Hi. Thank you for taking my question. Am I audible?

Speaker #7: Reporting into the entire in the group. So that's how we see our future. Did I answer your question?

Speaker #1: Yes, you're audible.

Speaker #3: Yeah. So I have a couple of questions. First would be that the order book of 6.35 gigawatt that you have currently, can you please let us know what the translates into in INR terms?

Speaker #8: Yes, sir. Yes, sir. Also, can you please throw some light on what could potentially slow down or affect the company's targeted capacity addition plans for FY27?

Nimish Pandya: Yes, sir. So, also can you please throw some light on what could potentially slow down or affect the company's targeted capacity addition plans for FY27?

Nimish Pandya: Yes, sir. So, also can you please throw some light on what could potentially slow down or affect the company's targeted capacity addition plans for FY 2027?

Speaker #2: That's about 7,800 crores.

Speaker #3: 7,800.

Speaker #2: 7,8200 crores. Sorry, 8,200 crores.

Speaker #7: Potentially, so I think from a structural point of view, the demand scenario is well structured. Last year, India did about 55 to 57 gigawatts DC. Before that, it was about 35 to 36.

Prashant Mathur: Potentially. So I think from a structural point of view, the demand scenario is well structured. So last year, India did about 55 to 57 gigawatt DC. Before that was about 35, 36. This year will be around same because there are structure happening from ALMM1 to ALMM2, and there's not enough cell capacity. So we might see similar kind of, but with the kind of demand projected with the electric vehicles, with data centers, AI and overall Indian economy growing, middle class energy demand increasing. So there is going to be. We see India market to be about 70, 80, and eventually about 100 gigawatt, and then the replacement markets, about 100 gigawatt market. So we are well-positioned from a demand point of view. Module manufacturing and then cell manufacturing and backward integration is where we see our growth.

Prashant Mathur: Potentially. So I think from a structural point of view, the demand scenario is well structured. So last year, India did about 55 to 57 GW DC. Before that was about 35, 36. This year will be around same because there are structure happening from ALMM1 to ALMM2, and there's not enough cell capacity. So we might see similar kind of, but with the kind of demand projected with the electric vehicles, with data centers, AI and overall Indian economy growing, middle class energy demand increasing. So there is going to be. We see India market to be about 70, 80, and eventually about 100 GW, and then the replacement markets, about 100 GW market. So we are well-positioned from a demand point of view. Module manufacturing and then cell manufacturing and backward integration is where we see our growth.

Speaker #3: Okay. Okay. Thank you. And another question would be when it comes to DCR orders that you have booked. So just wanted to get a broad idea there could be two types, right?

Speaker #3: One would be that for the DCR order, you are procuring cell from outside, or using internally manufactured cell. So what would be the margins like in both the cases?

Speaker #2: So the DCR orders which we are talking here, are based on our manufacturing mostly. Because the ones which we are doing from buying cells, are mostly spot orders.

Speaker #7: This year will be around the same because there are structural changes happening from ALMM1 to ALMM2, and there's not enough cell capacity. So, we might see a similar kind of situation. But with the kind of demand projected with electric vehicles, with data centers, AI, and overall the Indian economy growing, middle-class energy demand increasing, so there is going to be—we see India market to be about 70, 80, and eventually about 100 gigawatts.

Speaker #2: And those spot orders are not there in the order book. So on the margins on the DCR cells, we are taking about 18 to 20 percent margins on the cells.

Speaker #3: Okay. Okay. That helps. And also, as you gave guidance for FY27, could you throw some light on FY28 as well in terms of EBITDA or revenue growth?

Speaker #7: And then the replacement market—so about a 100-gigawatt market. So, we are well positioned from a demand point of view. Module manufacturing and then cell manufacturing backward integration is where we see our growth.

Speaker #3: EBITDA margin for revenue growth.

Speaker #2: Yeah. Difficult to really comment, maybe we can talk about FY28 in the third quarter. But there are a couple of factors. One is the geopolitical situation as to really improve.

Speaker #7: Apart from that, globally also, once we have integrated manufacturing in India, right from at least from ingot onwards, we will see that, globally also, our manufacturing will be competitive.

Prashant Mathur: Apart from that, globally also, once we have integrated manufacturing in India, at least from ingot onwards, we will see that globally also our manufacturing will be competitive and we will be able to compete on a global scale also, in other countries also. So India will become not only an energy provider, but also the energy equipment provider also. So that's how we see our growth.

Speaker #2: But the other thing what we feel is that they are not enough cell manufacturing available there. And there are a lot of projects which have been tendered since December last year.

Speaker #7: And we will be able to compete on a global scale also, in other countries also. So India will become not only an energy provider, but also an energy equipment provider.

Speaker #7: So that's how we see our growth.

Speaker #2: And since the project cycle is about 18 to 24 months, currently, the DCR demand in this financial year is mostly from the retail C&I and Kusum.

Nimish Pandya: Understood, sir. Sir, last question from my side, sir. Sir, what role do you see Melcon playing in Saatvik's transformer manufacturing plans? How large can this business become over the next few years?

Speaker #8: Understood, sir. So, last question from me, sir. Sir, what role do you see Malcolm playing in Saatvik's transformer manufacturing plans? And sir, how large can this business become over the next few years?

Speaker #2: But the large utility projects which has 18 to 24 months cycle, the real demand for DCR panels in that segment will start coming from April onwards which is next financial year onwards.

Speaker #7: So Malcon acquisition has recently happened. So that was somewhere mid of quarter one. And we are also learning transformer business and power electronics business.

Prashant Mathur: Melcon acquisition has recently happened. That was somewhere mid of Q1. We are also learning transformer business and power electronics business. We have entered this business. Firstly, transformer, there is a huge demand, not only in renewable, but overall transmission, overall energy mix, there is a demand of transformer everywhere. The market size currently is about INR 30,000 crore for transformer, which is also slated to become about INR 55,000 crore by 2031. That is the kind of market size which is available for us. We are in the learning phase right now, but we also are planning to expand our manufacturing, and we will make an announcement soon on that as well. We want to take a significant market share in this.

Speaker #2: So there will be a significant demand for DCR panels in the next financial year. Because that will have demand from all the three segments.

Speaker #7: So, we have entered this business. Firstly, regarding transformers, there is a huge demand—not only in renewables, but overall in transmission and the entire energy mix. There is a demand for transformers everywhere.

Speaker #2: Retail, C&I, Kusum, and utility. So we feel that FY28 will be a milestone year for us and for the industry.

Speaker #7: So, the market size currently is about ₹30,000 crore for transformers, which is also slated to become about ₹55,000 crore by 2031. So that is the kind of market size which is available for us.

Speaker #3: Okay. That answers my question. Thank you so much. And wish you the best.

Speaker #2: Thank you.

Speaker #7: We are in the learning phase right now, but we are also planning to expand our manufacturing. We will make an announcement soon on that as well.

Speaker #1: Thank you. The next question is from the line of Sizil Nath. And either investors, please proceed with your question.

Speaker #7: Okay. Sir, can you hear me?

Speaker #7: But we want to take a significant market share in this. We have always targeted to be about 8 to 10 percent of the market share.

Speaker #2: Yes. Can I move on?

Speaker #7: Can you hear me?

Speaker #2: What company? Yes, you are audible. Can you introduce yourself?

Speaker #7: I am a retail investor, sir.

Prashant Mathur: We have always targeted about 8% to 10% of the market share, and eventually that is where we see in our journey in the transformer business also we want to be in that. It will take some time, but I feel that we want to make it an INR 1,500 crore business in next three, four years.

Speaker #2: Okay. Okay. Okay. Great.

Speaker #7: Okay. So the last question was, how much was the inner value for the 6.5 gigawatt you have on your order book? So my question is, what is the execution timeline for it?

Speaker #7: And eventually, that's where we see in our journey in the transformer business also—we want to be in that. It will take some time, but I feel that we want to make it a ₹1,500 crore business in the next three or four years.

Speaker #7: How much you are going to execute within this financial year? How much you may postpone it, or you may execute in the next financial year?

Speaker #2: So normally, the order book is between 12 to 18 months. And so this order book also will get executed in that period only. Apart from this, order book, there is also retail, which is also like 20 percent, 20 percent of our monthly sales.

Speaker #8: Understood, sir. Understood. Thanks a lot, sir. That's it from me, sir. Thanks a lot, sir.

Nimish Pandya: Understood, sir. Understood. Thanks a lot, sir. That is a promise. Thanks a lot, sir.

Speaker #7: Thank you.

Prashant Mathur: Thank you.

Speaker #2: Thank you. The next question is from the line of Prakash from Motilal Oswal. Please proceed with your question.

Operator: Thank you. The next question is from the line of Preksha from Motilal Oswal. Please proceed with your question.

Speaker #3: Hi, thank you for taking my question. Am I audible?

[Analyst] (Motilal Oswal): Hi. Thank you for taking my question. Am I audible?

Preksha Daga: Hi. Thank you for taking my question. Am I audible?

Speaker #2: Yes, you're audible.

Operator: Yes, you're audible.

Speaker #3: Yeah, so I have a couple of questions. First would be, the order book of 6.35 gigawatts that you have currently—can you please let us know what that translates into in INR terms?

[Analyst] (Motilal Oswal): Yeah. I have a couple of questions. First would be, that the order book of 6.35 gigawatt that you have currently, can you please let us know what it translates into in INR terms?

Preksha Daga: Yeah. I have a couple of questions. First would be, that the order book of 6.35 GW that you have currently, can you please let us know what it translates into in INR terms?

Speaker #2: So that is not reflected in this order book. But these order book is only for mid-size and large customers.

Speaker #7: Okay. Okay, sir. Clear. Thank you.

Speaker #2: Thank you.

Speaker #7: That's about 7,800 crores.

Prashant Mathur: That is about INR 8,200 crores.

Rishabh Mehtta: That is about INR 8,200 crores.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand over the conference over to Mr. Prashant Mathur for closing comments.

Speaker #3: 7,800.

[Analyst] (Motilal Oswal): 7,800?

Preksha Daga: 7,800?

Speaker #7: 7,800, 8,200 crores. Sorry, 8,200 crores.

Prashant Mathur: INR 8,200 crores, sorry. INR 8,200 crores.

Rishabh Mehtta: INR 8,200 crores, sorry. INR 8,200 crores.

Speaker #3: Okay. Okay. Thank you. And another question would be: when it comes to DCR orders that you have booked, I just wanted to get a broad idea.

[Analyst] (Motilal Oswal): Okay. Thank you. Another question would be, when it comes to DCR orders that you have booked, I just wanted to get a broad idea. There could be 2 types, right? One would be that for the DCR order, you are procuring cell from outside or using internally manufactured cell. What would be the margins like in both the cases?

Preksha Daga: Okay. Thank you. Another question would be, when it comes to DCR orders that you have booked, I just wanted to get a broad idea. There could be 2 types, right? One would be that for the DCR order, you are procuring cell from outside or using internally manufactured cell. What would be the margins like in both the cases?

Speaker #1: Thank you. And over to you, sir.

Speaker #2: Thank you very much. To conclude, we remain very positive about Saatvik's growth trajectory. And long-term prospects. With the Orisa project moving towards production, ramp up, and a strong order book, and a clear roadmap for deeper integration, we are well positioned for the next phase of growth.

Speaker #3: There could be two types, right? One would be that for the DCR order, you are procuring cell from outside, or using an internally manufactured cell.

Speaker #3: So what would the margins be like in both cases?

Speaker #7: So the DCR orders that we are talking about here are based mostly on our manufacturing. Because the work we are doing from buying cells is mostly spot orders.

Prashant Mathur: The DCR orders which we are talking here are based on our manufacturing mostly.

Rishabh Mehtta: The DCR orders which we are talking here are based on our manufacturing mostly.

[Analyst] (Motilal Oswal): Okay.

Preksha Daga: Okay.

Prashant Mathur: Because the work which we are doing from buying cells are mostly spot orders. Those spot orders are not there in the order book. On the margins on the DCR cells, we are taking about 18% to 20% margins on the cells.

Rishabh Mehtta: Because the work which we are doing from buying cells are mostly spot orders. Those spot orders are not there in the order book. On the margins on the DCR cells, we are taking about 18% to 20% margins on the cells.

Speaker #2: Our focus remains on scaling capacities, strengthening integration, and improving operational efficiency. We remain confident that these initiatives will drive sustainable growth and create long-term value for all our stakeholders.

Speaker #7: And those spot orders are not there in the order book. So on the margins on the DCR cells, we are taking about 18 to 20 percent margins on the cells.

Speaker #2: Thank you once again for joining us today. Thank you and wish you all a very happy independence day.

Speaker #3: Okay, okay, that helps. And also, as you gave guidance for FY27, could you throw some light on FY28 as well in terms of EBITDA or revenue growth?

[Analyst] (Motilal Oswal): Okay. That helps. Also, as you gave guidance for FY27, could you throw some light on FY28 as well in terms of EBITDA or revenue growth? EBITDA margins or revenue growth.

Preksha Daga: Okay. That helps. Also, as you gave guidance for FY 2027, could you throw some light on FY 2028 as well in terms of EBITDA or revenue growth? EBITDA margins or revenue growth.

Speaker #1: Thank you. On behalf of Amrit Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Speaker #1: Thank you.

Speaker #2: Thank you.

Speaker #3: EBITDA margins or revenue growth?

Prashant Mathur: Yeah, difficult to really comment. Maybe we can talk about FY28 in the Q3. There are a couple of factors. One is the geopolitical situation has to really improve. The other thing, what we feel is that there are not enough cell manufacturing available there, and there are a lot of projects which have been tendered since December last year. Since a project cycle is about 18 to 24 months, currently the DCR demand in this financial year is mostly from the retail, C&I, and PM-KUSUM. The large utility projects, which has 18 to 24 months cycle, the real demand for DCR panels in that segment will start coming from April onwards, which is next financial year onwards.

Prashant Mathur: Yeah, difficult to really comment. Maybe we can talk about FY 2028 in the Q3. There are a couple of factors. One is the geopolitical situation has to really improve. The other thing, what we feel is that there are not enough cell manufacturing available there, and there are a lot of projects which have been tendered since December last year. Since a project cycle is about 18 to 24 months, currently the DCR demand in this financial year is mostly from the retail, C&I, and PM-KUSUM. The large utility projects, which has 18 to 24 months cycle, the real demand for DCR panels in that segment will start coming from April onwards, which is next financial year onwards.

Speaker #7: Yeah, it's difficult to really comment, especially—maybe we can talk about FY28 in the third quarter. But there are a couple of factors. One is the geopolitical situation has to really improve.

Speaker #7: But the other thing that we feel is that there is not enough cell manufacturing available there. Also, there have been a lot of projects that have been tendered since December last year.

Speaker #7: And since the project cycle is about 18 to 24 months, currently the DCR demand in this financial year is mostly from the retail, C&I, and Kusum.

Speaker #7: But the large utility projects, which have an 18- to 24-month cycle, the real demand for DCR panels in that segment will start coming from April onwards, which is next financial year onwards.

Speaker #7: So there will be significant demand for DCR panels in the next financial year, because that will have demand from all three segments: retail, C&I, and KUSUM. So, we feel that FY28 will be a milestone year for us and for the industry.

Prashant Mathur: There will be a significant demand for DCR panels in the next financial year because that will have demand from all the three segments, retail, C&I, PM-KUSUM, and utility. We feel that FY28 will be a milestone year for us and for the industry.

Prashant Mathur: There will be a significant demand for DCR panels in the next financial year because that will have demand from all the three segments, retail, C&I, PM-KUSUM, and utility. We feel that FY 2028 will be a milestone year for us and for the industry.

Speaker #3: Okay, that answers my question. Thank you so much, and I wish you the best.

[Analyst] (Motilal Oswal): That answers my question. Thank you so much and wish you the best.

Preksha Daga: That answers my question. Thank you so much and wish you the best.

Speaker #7: Thank you.

Prashant Mathur: Thank you.

Speaker #2: Thank you. The next question is from the line of Sujin Nath, and he's an investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of Sujith Nath from ADI Investor. Please proceed with your question.

Speaker #8: Okay. Sir, can you hear me?

Sujith Nath: Okay, sir. Can you hear me?

[Analyst]: Okay, sir. Can you hear me?

Speaker #7: Yes. Can I hear me?

Prashant Mathur: Yes. Can I know what company? Yes, you are audible.

Speaker #8: Can you hear me?

Speaker #7: What company? Yes, you are audible. Can you hear me?

Sujith Nath: Yeah. I am a retiring investor, sir. I am a retiring investor.

[Analyst]: Yeah. I am a retiring investor, sir. I am a retiring investor.

Speaker #8: I am a retail investor, sir. I am a retail investor.

Speaker #7: Okay. Okay.

Prashant Mathur: Okay. Great.

Sujith Nath: Okay. The last question was, how much was the INR value for the 6.5 gigawatt you have on your order book? My question is, what is your execution timeline for it? How much you are going to execute within this financial year? How much you may postpone it, or you may execute in the next financial year?

[Analyst]: Okay. The last question was, how much was the INR value for the 6.5 GW you have on your order book? My question is, what is your execution timeline for it? How much you are going to execute within this financial year? How much you may postpone it, or you may execute in the next financial year?

Speaker #8: Okay, so the last question was: How much was the inner value for the 6.5 gigawatt you have on your order book? So my question is, what is the execution timeline for it?

Speaker #8: How much are you going to execute within this financial year? How much may you postpone, or may you execute in the next financial year?

Speaker #7: So normally, the order book is between 12 to 18 months, and so this order book also will get executed in that period only. Apart from this order book, there is also retail, which is also like 20 percent—20 percent of our monthly sales.

Prashant Mathur: Normally the order book is between 12 to 18 months. This order book also will get executed in that period only. Apart from this order book, there is also retail, which is also 20% of our monthly sales. That is not reflected in this order book. But this order book is only for mid-size and large customers.

Speaker #7: So that is not reflected in this order book. But this order book is only for mid-size and large customers.

Speaker #8: Okay. Okay, that's clear. Thank you.

Sujith Nath: Okay, sir. Clear. Thank you.

[Analyst]: Okay, sir. Clear. Thank you.

Speaker #7: Thank you.

Prashant Mathur: Thank you.

Operator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand over the conference over to Mr. Prashant Mathur for closing comments. Thank you, and over to you, sir.

Speaker #2: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Prashant Martin for closing comments.

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

Speaker #7: Thank you very much. To conclude, we remain very positive about Saatvik's growth trajectory and long-term prospects. With the Odisha project moving towards production ramp-up, a strong order book, and a clear roadmap for deeper integration, we are well positioned for the next phase of growth.

Prashant Mathur: Thank you very much. To conclude, we remain very positive about Saatvik's growth trajectory and long-term prospects. With the Odisha project moving towards production ramp up and a strong order book and a clear roadmap for deeper integration, we are well positioned for the next phase of growth. Our focus remains on scaling capacities, strengthening integration, and improving operational efficiency. We remain confident that these initiatives will drive sustainable growth and create long-term value for all our stakeholders. Thank you once again for joining us today. Thank you, and wish you all a very happy Independence Day.

Speaker #7: Our focus remains on scaling capacities, strengthening integration, and improving operational efficiency. We remain confident that these initiatives will drive sustainable growth and create long-term value for all our stakeholders.

Speaker #7: Thank you once again for joining us today. Thank you, and wish you all a very happy Independence Day.

Speaker #2: Thank you. On behalf of Amrit Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you. On behalf of Ambit Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #2: Thank you.

Speaker #7: Thank you.

Prashant Mathur: Thank you.

Nimish Pandya: Thank you.

Rishabh Mehtta: Thank you.

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