Q1 2027 Fujiyama Power Systems Ltd Earnings Call

August 14, 2026

Operator 2: Ladies and gentlemen, the conference will begin shortly. Please stay connected. Ladies and gentlemen, good day and welcome to Fujiyama Power Systems Limited Q1 FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumant Kumar from Motilal Oswal Financial Services Limited.

Speaker #4: Ladies and gentlemen, the conference will begin shortly. Please stay connected.

Speaker #1: Ladies and gentlemen, good day and welcome to the Fujiyama Power Systems Limited Q1 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Operator: Ladies and gentlemen, good day and welcome to Fujiyama Power Systems Limited Q1 FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumant Kumar from Motilal Oswal Financial Services Limited.

Speaker #1: These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

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

Speaker #1: I now hand the conference over to Mr. Sumant Kumar from Motilal Oswal Financial Services Limited. Thank you, and over to you, Mr. Kumar.

Operator 2: Thank you, and over to you, Mr. Kumar.

Operator: Thank you, and over to you, Mr. Kumar.

Speaker #2: Thank you. Good evening, everyone, and a very warm welcome to Fujiyama Power Systems Limited Q1 FY27 Post-Results Earnings Call. On the call today, we have the management team represented by Mr. Pawan Kumar Gal, Chairman and Joint Managing Director; Mr. Yogesh Duwa, CEO and Joint Managing Director; and Mr. Prashant Gupta, CFO.

Sumant Kumar: Yeah, thank you. Good evening, everyone, and very warm welcome to Fujiyama Power Systems Limited Q1 FY27 post-result earning call hosted by Motilal Oswal Financial Services Limited. On the call today, we have management team being represented by Mr. Pawan Kumar Garg, Chairman and JMD, Mr. Yogesh Dua, CEO and JMD, and Mr. Prashant Gupta, CFO. We will begin the call with the key thoughts from the management team. Thereafter, we will open the floor for Q&A session. I would now like to request the management to share their perspective on the performance of the company. Thank you, and over to you, Pawan Ji.

Sumant Kumar: Thank you. Good evening, everyone, and very warm welcome to Fujiyama Power Systems Limited Q1 FY27 post-result earning call hosted by Motilal Oswal Financial Services Limited. On the call today, we have management team being represented by Mr. Pawan Kumar Garg, Chairman and JMD, Mr. Yogesh Dua, CEO and JMD, and Mr. Prashant Gupta, CFO. We will begin the call with the key thoughts from the management team. Thereafter, we will open the floor for Q&A session. I would now like to request the management to share their perspective on the performance of the company. Thank you, and over to you, Pawan Ji.

Speaker #2: We'll begin the call with key thoughts from the management team. Thereafter, we'll open the floor for a Q&A session. I would now like to request the management to share their perspective on the performance of the company.

Speaker #2: Thank you, and over to you, Pawan ji.

Pawan Kumar Garg: Thank you, Sumant Kumar. Good afternoon, everyone, and thank you for joining us today. It is a pleasure to connect with you and share an update of Fujiyama's operating and financial performance for the quarter ended June 2026. Let me begin with thanking our customers, channel partners, employees, and shareholders for their continued trust in Fujiyama. We have started the new financial year with meaningful progress across the business. During the quarter, we expanded our distribution reach, commissioned new manufacturing capacities, and took further steps towards increasing backward integration. Coming to our financial performance, the first quarter saw a significant increase in our scale of operations. Revenue from operations growing 125% year-on-year. EBITDA increased by 140% year-on-year. EBITDA margin expanded to 18.9% from 17.7% in Q1 2026. The distribution network recorded one of its largest quarterly extensions during the quarter.

Pawan Kumar Garg: Thank you, Sumant. Good afternoon, everyone, and thank you for joining us today. It is a pleasure to connect with you and share an update of Fujiyama's operating and financial performance for the quarter ended June 2026. Let me begin with thanking our customers, channel partners, employees, and shareholders for their continued trust in Fujiyama. We have started the new financial year with meaningful progress across the business. During the quarter, we expanded our distribution reach, commissioned new manufacturing capacities, and took further steps towards increasing backward integration. Coming to our financial performance, the first quarter saw a significant increase in our scale of operations. Revenue from operations growing 125% year-on-year. EBITDA increased by 140% year-on-year. EBITDA margin expanded to 18.9% from 17.7% in Q1 2026. The distribution network recorded one of its largest quarterly extensions during the quarter.

Speaker #3: Thank you, Sumant ji. Good afternoon, everyone, and thank you for joining us today. It is a pleasure to connect with you and share an update on Fujiyama's operating and financial performance for the quarter ended June 26.

Speaker #3: Let me begin by thanking our customers, channel partners, employees, and shareholders for their continued trust in Fujiyama. We have started the new financial year with meaningful progress across the business.

Speaker #3: During the quarter, we expanded our distribution reach, commissioned new manufacturing capacities, and took further steps towards increasing backward integration. Coming to our financial performance, the first quarter saw a significant increase in our scale of operations, with revenue from operations growing 125% year on year. EBITDA increased by 140% year on year, and EBITDA margin expanded to 18.9% from 17.7% in Q1 '26.

Speaker #3: The distribution network recorded one of its largest quarterly extensions during the quarter. We added more than 80 distributors, over 1,000 dealers, and more than 30 exclusive shoppees.

Pawan Kumar Garg: We added more than 80 distributors, over 1,000 dealers, and more than 30 exclusive Shoppe. This took a total channel partners network to over 10,100 as of June 2026. The wider network gives Fujiyama greater access to customers across different markets and supports faster product availability, installation, and after-sales service. This remains particularly important in residential rooftop solar segment, where proximity to customers and dependable service are important factors in purchase decisions. On the manufacturing front, we made significant progress at our Ratlam facility. During the quarter, we commissioned 2 gigawatt solar panel manufacturing facility. With the addition, our total solar panel manufacturing capacity increased to 3.5 gigawatt. Additionally, we also commissioned 2 gigawatt power electronics manufacturing facility at Ratlam in August 2026. The facility will manufacture solar inverters, UPS systems, and other related power electronics products.

Pawan Kumar Garg: We added more than 80 distributors, over 1,000 dealers, and more than 30 exclusive Shoppe. This took a total channel partners network to over 10,100 as of June 2026. The wider network gives Fujiyama greater access to customers across different markets and supports faster product availability, installation, and after-sales service. This remains particularly important in residential rooftop solar segment, where proximity to customers and dependable service are important factors in purchase decisions. On the manufacturing front, we made significant progress at our Ratlam facility. During the quarter, we commissioned 2-gigawatt solar panel manufacturing facility. With the addition, our total solar panel manufacturing capacity increased to 3.5 gigawatts. Additionally, we also commissioned 2-gigawatt power electronics manufacturing facility at Ratlam in August 2026. The facility will manufacture solar inverters, UPS systems, and other related power electronics products.

Speaker #3: This took our total channel partners network to over 10,100. As of June 26, the wider network gives Fujiyama greater access to customers across different markets and supports faster product availability, installation, and after-sales service.

Speaker #3: This remains particularly important in residential rooftop solar segments, where proximity to customers and dependable service are important factors in purchase decisions. On the manufacturing front, we made significant progress at our Rathlam facility. During the quarter, we commissioned a 2-gigawatt solar panel manufacturing facility, bringing our total solar panel manufacturing capacity to 3.5 gigawatts.

Speaker #3: Additionally, we also commissioned a 2-gigawatt power electronics manufacturing facility at Rathalam on August 26. The facility will manufacture solar inverter UPS systems and other related power electronics products.

Speaker #3: With this addition, Fujiyama's total power electronics manufacturing capacity is increased to 4 gigawatts. Furthermore, the 2-gigawatt lithium-ion battery manufacturing capacity at Rathalam is also on track for commissioning by Q2 '27.

Pawan Kumar Garg: With this addition, Fujiyama's total power electronics manufacturing capacity is increased to 4 gigawatt. Furthermore, the 2 gigawatt lithium-ion battery manufacturing capacity at Ratlam is also on track for commissioning by Q2 2027. Once completed, Ratlam complex will bring solar panels, power electronics, and batteries under one manufacturing location, further strengthening integration across the company's product portfolio and supporting its growing scale of operations. Alongside our capacity expansion, we are also taking further steps towards backward integration. During the quarter, the company increased its stake in Zayo Energy Private Limited and Zayo Cables Private Limited from 19% to 50% in each company. Zayo Energy is engaged in manufacturing solar module components like aluminum frame, PV ribbon wire, busbar, and solar wire, while Zayo Cables is engaged in manufacturing of solar module component like PV junction box, solar cable, and EVA sheets.

Pawan Kumar Garg: With this addition, Fujiyama's total power electronics manufacturing capacity is increased to 4 gigawatts. Furthermore, the 2-gigawatt lithium-ion battery manufacturing capacity at Ratlam is also on track for commissioning by Q2 2027. Once completed, Ratlam complex will bring solar panels, power electronics, and batteries under one manufacturing location, further strengthening integration across the company's product portfolio and supporting its growing scale of operations. Alongside our capacity expansion, we are also taking further steps towards backward integration. During the quarter, the company increased its stake in Zayo Energy Private Limited and Zayo Cables Private Limited from 19% to 50% in each company. Zayo Energy is engaged in manufacturing solar module components like aluminum frame, PV ribbon wire, busbar, and solar wire, while Zayo Cables is engaged in manufacturing of solar module component like PV junction box, solar cable, and EVA sheets.

Speaker #3: Once completed, Rathalam Complex will bring solar panel electronics and batteries under one manufacturing location, further strengthening integration across the company's product portfolio and supporting its growing scale of operations.

Speaker #3: Alongside our capacity expansion, we are also taking further steps towards backward integration. During the quarter, the company increased its stake in Jio Energy Private Limited and Jio Cables Private Limited from 19% to 50% in each company.

Speaker #3: Jio Energy is engaged in the manufacturing of solar module components like aluminium frame, PV ribbon wire, busbar, and solder wire. Meanwhile, Jio Cables is engaged in the manufacturing of solar module components like PV junction box, solar cable, and EVA sheet.

Speaker #3: These investments complement our existing manufacturing capabilities by extending our presence into components used across the solar and power electronics products. As these businesses scale, the integration of our components within our value chain can help improve sourcing control and further deepen Fujiyama's integrated manufacturing model.

Pawan Kumar Garg: These investments complement our existing manufacturing capabilities by extending our presence into components used across the solar and power electronics products. As these businesses scale, the integration of our components within our value chain can help improve sourcing control and further deepen Fujiyama's integrated manufacturing model. Looking at the broader market, the opportunity for rooftop solar in India remains significant. The PM Surya Ghar Muft Bijli Yojana, a target of solarizing 1 crore household, is supporting the adoption of grid rooftop solar across the country. At the same time, demand for off-grid and hybrid solutions remains relevant in the regions where grid reliability is a concern. This allows Fujiyama to address both the on-grid and backup-driven requirements through its portfolio of solar panels, inverters, and batteries. Furthermore, we are also closely following the proposed next phase of the scheme, being referred to as PM Surya Ghar 2.0.

Pawan Kumar Garg: These investments complement our existing manufacturing capabilities by extending our presence into components used across the solar and power electronics products. As these businesses scale, the integration of our components within our value chain can help improve sourcing control and further deepen Fujiyama's integrated manufacturing model. Looking at the broader market, the opportunity for rooftop solar in India remains significant. The PM Surya Ghar Muft Bijli Yojana, a target of solarizing 1 crore households, is supporting the adoption of grid rooftop solar across the country. At the same time, demand for off-grid and hybrid solutions remains relevant in the regions where grid reliability is a concern. This allows Fujiyama to address both the on-grid and backup-driven requirements through its portfolio of solar panels, inverters, and batteries. Furthermore, we are also closely following the proposed next phase of the scheme, being referred to as PM Surya Ghar 2.0.

Speaker #3: Looking at the broader market, the opportunity for rooftop solar in India remains significant. The PM Surya Ghar Muft Bijli Yojana has set a target of solarizing 1 crore households, supporting the adoption of grid-connected rooftop solar across the country.

Speaker #3: At the same time, demand for off-grid and hybrid solutions remains relevant in the regions where grid reliability is a concern. This allows Fujiyama to address both the on-grid and backup-driven requirements through its portfolio of solar panel inverters and batteries.

Speaker #3: Furthermore, we are also closely following the proposed next phase of the scheme, being referred to as PM Suriyagar 2.0. While the framework is still under discussion and has not been formally notified, the proposed reports include support for battery storage, incentives linked to actual power generation, and wider access through community solar and other models.

Pawan Kumar Garg: While the framework is still under discussion and has not been formally notified, the proposed reforms include support for the battery storage, incentives linked to actual power generation, and wider access through community solar and other models. If implemented, these measures could further expand the addressable market and increase the relevance of targeted solar and storage solutions. Our cost-effective service network will help us to get more share in the coming scheme. As we move through the year, our focus remains on scaling the recently commissioned capacities and expanding our distribution network. We will also remain focused on service quality and customer relationships as our reach increases. At the same time, increasing backward integration across key components will remain an important part of our manufacturing strategy. Before I conclude, I would like to thank our entire Fujiyama team for their efforts.

Speaker #3: If implemented, these measures could further expand the addressable market and increase the relevance of targeted solar and storage solutions. Our cost-effective service network will help us to get more share in the coming scheme.

Speaker #3: As we move through the year, our focus remains on scaling the recently commissioned capacities and expanding our distribution network. We will also remain focused on service quality and customer relationships as our reach increases.

Speaker #3: At the same time, increasing backward integration across key components will remain an important part of our manufacturing strategy. Before I conclude, I would like to thank our entire Fujiyama team for their efforts.

Speaker #3: We remain focused on building Fujiyama as an integrated solar solutions company and creating long-term value, while contributing to India's transition towards clean and reliable energy.

Pawan Kumar Garg: We remain focused on building Fujiyama as an integrated solar solution company and creating long-term value, while contributing India's transition towards clean and reliable energy. Thank you. I will now hand over to our CFO, who will take you through the detailed financials. After that, we will be happy to take your questions. Thank you, everyone.

Speaker #3: Thank you. I will now hand over to our CFO, who will take you through the detailed financials. After that, we will be happy to take your questions.

Speaker #3: Thank you, everyone.

Speaker #2: Thank you, Bawanji. Good afternoon, everyone. I will take you through the financial performance for the quarter ended June 30, 2026. Let me begin with the quarterly performance.

Prashant Gupta: Thank you, Pawan. Good afternoon, everyone. I will take you through the financial performance for the quarter ended 30 June 2026. Let me begin with the quarterly performance. During Q1 FY27, revenue from operations was INR 13,457 million, compared to INR 5,973 million in Q1 FY26, representing a year-on-year growth of 125.3%. EBITDA for the quarter was INR 2,548 million, increasing by 40.6% year-on-year. EBITDA margin improved to 18.9% from 17.7% in Q1 FY26. The improvement in operating profitability was supported by the significant increase in business scale during the quarter. Higher volumes enabled better utilization of our manufacturing and operating infrastructure and supported better absorption of costs. Process improvements across operations also contributed to the efficiency. Importantly, we passed on a portion of these efficiency gains to customers through competitive pricing during the quarter.

Speaker #2: During Q1 FY27, revenue from operations was ₹13,457 million, compared to ₹5,973 million in Q1 FY26, representing a year-on-year growth of 125.3%.

Speaker #2: EBITDA for the quarter was ₹2,548 million, increasing by 140.6% year-on-year. EBITDA margin improved to 18.9% from 17.7% in Q1 FY26. The improvement in operating profitability was supported by the significant increase in business sales during the quarter.

Speaker #2: Higher volumes enabled better utilization of our manufacturing and operating infrastructure, and supported better absorption of costs. Process improvements across operations also contributed to efficiency.

Speaker #2: Importantly, we passed on a portion of these efficiency gains to customers through competitive pricing during the quarter. Despite sharing part of these benefits with customers, we were able to retain sufficient efficiencies within the business.

Prashant Gupta: Despite sharing part of these benefits with the customers, we were able to retain sufficient efficiencies within the business. The expansion of our manufacturing capacity also supported the increase in scale. During the quarter, we commissioned the 2 gigawatt solar panel manufacturing facility at Ratlam. This increased our total solar panel manufacturing capacities to 3.5 gigawatts. The facility is being ramped up in phases as volumes increase. Let me now discuss the impact of the fire incident at our Bawal facility during the quarter. The incident resulted in damage to building structures, plant and machinery, inventories and other assets with a net carrying value of INR 1,436 million. Accordingly, the company has recognized a provisional exception loss of INR 1,436 million during the quarter. The affected assets are adequately insured, and the company has lodged its claims with the insurer.

Speaker #2: The expansion of our manufacturing capacity also supported the increase in scale during the quarter. We commissioned the 2-gigawatt solar panel manufacturing facility at Rathalam, which increased our total solar panel manufacturing capacity to 3.5 gigawatts.

Speaker #2: The facility is being ramped up in phases as volumes increase. Let me now discuss the impact of the fire incident at our Bawal facility during the quarter.

Speaker #2: The incident resulted in damage to building structures, plant and machinery, inventories, and other assets, with a net carrying value of ₹1,436 million. Accordingly, the company has recognized a provisional exceptional loss of ₹1,436 million during the quarter.

Speaker #2: The affected assets are adequately insured, and the company has lodged its claims with the insurer. The assessment process is at an advanced stage, although it has yet to be fully completed.

Prashant Gupta: The assessment process is at an advanced stage, although it has yet to be fully completed. Based on the insurance coverage available, management expects to recover the entire net carrying value of the affected assets through the claims process. After accounting for this exceptional item, profit before tax for the quarter was INR 777 million. Reported profit after tax was INR 578 million, with a margin of 4.3%. For a like-for-like understanding of the underlying performance, excluding the Bawal fire provision of INR 1,074 million on a post-tax basis, normalized PAT would have been INR 1,652 million. On this basis, normalized PAT margin was 12.3% compared to 11.3% in Q1 FY26. This represents a year-on-year increase of 144.5% in normalized PAT.

Speaker #2: Based on the insurance coverage available, management expects to recover the entire net carrying value of the affected assets through the claims process. After accounting for this exceptional item, profit before tax for the quarter was Rs 777 million.

Speaker #2: Reported profits after tax was rupees 578 million, with a margin of 4.3%. For a like-for-like understanding of the underlying performance, excluding the Bawal fire provision of rupees 1,774 million on a post-tax basis, normalized PAT would be would have been rupees 1,652 million.

Speaker #2: On this basis, normalized PAT margin was 12.3%, compared to 11.3% in Q1 FY26. This represents a year-on-year increase of 144.5% in normalized PAT.

Speaker #2: Looking ahead, as a recently commissioned capacity ramp-up, our focus will remain on maintaining operating discipline and managing costs as the business expands. That concludes my remarks on the financial performance.

Prashant Gupta: Looking ahead, as the recently commissioned capacity is ramped up, our focus will remain on maintaining operating disciplines and managing costs as the business expands. That concludes my remarks on the financial performance. We can now open the floor for question and answers. Thank you.

Speaker #2: We can now open the floor for questions and answers. Thank you.

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

Operator 2: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Prity Raj from Unifi Capital. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Prithvi Raj from Unifi Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star, then 2. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Prithviraj from Unifi Capital.

Speaker #1: Please go ahead.

Speaker #3: Yeah, congrats to the team for the great set of numbers. So, first on the guidance, given, you know, we had an exceptional start in Q1.

Prity Raj: Yeah. Congrats to the team for the great set of numbers. So first on the guidance, given we had an exceptional start in Q1, how should we look at the full year guidance? There seems to be a lot of, I mean, the coverage or the installations of rooftop solar has been picking up quite sharply over the last few months. So how should we look at the full year revenue growth and profits?

Prithvi Raj: Yeah. Congrats to the team for the great set of numbers. So first on the guidance, given we had an exceptional start in Q1, how should we look at the full year guidance? There seems to be a lot of, I mean, the coverage or the installations of rooftop solar has been picking up quite sharply over the last few months. So how should we look at the full year revenue growth and profits?

Speaker #3: Why should you look at the full-year guidance? You know, there seems to be a lot of—I mean, the coverage or the installations of rooftop solar have been picking up quite sharply over the last few months.

Speaker #3: So, how should you look at the full-year revenue growth and profits?

Speaker #2: So sir, in the last quarter, as you rightly mentioned, we gave an 50% upside guidance for the complete annual year. And the efforts that we have put in during the last quarter how the how we have expanded in terms of our manufacturing capacities or be it expanding on the on our distribution network side.

Prashant Gupta: So, sir, in the last quarter, as you rightly mentioned, we gave a 50% upper guidance for the complete annual year. The efforts that we have put in during the last quarter, how we have expanded in terms of our manufacturing capacities or be it expanding on our distribution network side. So we achieved 70%, and it took a lot of effort. But as you rightly mentioned that demand is increasing and a robust demand is there. So we would like to revise our guidance for the full year to 70%, considering the robust demand which is there and the capacities that we are ready with in Ratlam. We would like to also highlight one thing that we can scale this guidance in the coming quarters as the year progress.

Speaker #2: So we achieved 70% and it took a lot of effort. So but as this as you rightly mentioned that demand is increasing and a robust demand is there.

Speaker #2: So, we would like to revise our guidance for the full year to 70%, considering the robust demand that is there and the capacities that we are ready with in Rathalam.

Speaker #2: We would also like to highlight one thing: we can trail this guidance in the coming quarters as the year progresses.

Speaker #3: Got it. Second, you know you have been doing a lot of backward integration, adding your own modules, sales capacity, et cetera. See, eventually this will translate to better margins.

Prity Raj: Got it. Second, you have been doing a lot of backward integration, adding your own modules, cells, capacity, et cetera. Eventually this will translate to better margins. So should we expect margins to go up, or you think margins will be capped at this level and instead you will pass on these benefits to the clients with respect to lower cost?

Prithvi Raj: Got it. Second, you have been doing a lot of backward integration, adding your own modules, cells, capacity, et cetera. Eventually this will translate to better margins. So should we expect margins to go up, or you think margins will be capped at this level and instead you will pass on these benefits to the clients with respect to lower cost?

Speaker #3: So, should we expect margins to go up, or do you think margins will be capped at this level and instead you will pass on these benefits to the clients with respect to lower cost?

Speaker #2: So you rightly mentioned and pointed out that having this DPR cell in-house, manufacturing capacities, and the rest of backward integration that we have done in the past, that definitely supports our margin profile.

Prashant Gupta: So you rightly mentioned and pointed out that having this DCR cell in-house manufacturing capacity and the rest of backward integration that we have did in the past, that definitely supports our margin profile. But we will also like to discount the fact that there are a lot of variable factors in the market in terms of raw material pricing. You have already covered our point that we will be passing on whatever margin gain that we will be gaining. So we would like to continue our previous guidance of margin from sustainable to improve.

Speaker #2: But we would also like to point out that there are a lot of variable factors in the market in terms of raw material pricing, and you have already covered our point that we will be passing on whatever margin gain we achieve.

Speaker #2: So, we would like to continue our previous guidance of margins from sustainable to improved.

Speaker #3: Okay. And final question on the new policy, annual sales, and framework, etc. What is your expectation? You know, by when can we expect a government announcement on the 2.0 scheme of rooftop solar?

Prity Raj: Okay. Final question on the new policy, annual silicon framework, et cetera. What is your expectation? By when can we expect government announcement on the PM Surya Ghar 2.0 scheme of rooftop solar?

Prithvi Raj: Okay. Final question on the new policy, annual silicon framework, et cetera. What is your expectation? By when can we expect government announcement on the PM Surya Ghar 2.0 scheme of rooftop solar?

Speaker #2: Sir, as per our knowledge, it is still under discussion. But the government is actively working on it, as we have seen on various media platforms.

Prashant Gupta: Sir, as per our knowledge, it is still under discussion. But government is actively working on it as we have seen it on various media platforms. So we are hopeful that they will come up soon with a PM Surya Ghar 2.0 scheme on this side. As you are already aware that government is actively working to promote the renewable space, and they have a target of having 300 gigawatts solar in India by 2030. So the government will be aggressive on that side. That is our belief.

Speaker #2: So we are hopeful that they will come up soon with the PM to raise our 2.0 scheme on this side. As you already are aware, the government is actively working to promote the renewable space, and they have a target of having 300 gigawatts of solar in India.

Speaker #2: By 2030. So the government will be aggressive on that side—that is our belief.

Speaker #3: Thanks. That's all from my side.

Prity Raj: Thanks, sir. Thanks so much.

Prithvi Raj: Thanks, sir. Thanks so much.

Speaker #1: Thank you. Next question comes from the line of Ajit Agarwal with Step Trade Capital. Please go ahead.

Operator 2: Thank you. Next question comes on the line of Ajit Agarwal with StepTrade Capital. Please go ahead.

Operator: Thank you. Next question comes on the line of Archit Agarwal with StepTrade Capital. Please go ahead.

Speaker #3: Hello.

Speaker #4: Hello.

Ajit Agarwal: Hello.

Archit Agarwal: Hello.

Speaker #1: Speakers, please go ahead.

Operator 2: Speakers, please go ahead.

Operator: Speakers, please go ahead.

Speaker #4: Yeah. Am I audible?

Ajit Agarwal: Am I audible?

Archit Agarwal: Am I audible?

Speaker #1: Yes, you are.

Operator 2: Yes, you are.

Operator: Yes, you are.

Speaker #4: First of all, congratulations on this set of numbers.

Ajit Agarwal: First of all, congratulations on good set of numbers.

Archit Agarwal: First of all, congratulations on good set of numbers.

Speaker #2: Thank you.

Prashant Gupta: Thank you.

Speaker #4: Hello. Sir, my question is on sir, my question is you have previously said that when capacity is available, you may pass some of the integration benefit to customers to drive volume.

Ajit Agarwal: Hello.

Archit Agarwal: Hello.

Prashant Gupta: Thank you.

Ajit Agarwal: Sir, my question is, you have previously said that when capacity is available, you will pass some of the integration benefit to customers to drive volumes. Given the recent capacity now coming online, should investors expect EBITDA margin to remain around 18% to 19%, or could aggressive market share expansion lead to margin compression?

Archit Agarwal: Sir, my question is, you have previously said that when capacity is available, you will pass some of the integration benefit to customers to drive volumes. Given the recent capacity now coming online, should investors expect EBITDA margin to remain around 18% to 19%, or could aggressive market share expansion lead to margin compression?

Speaker #4: Given the significant capacity now coming online, should investors expect extra margin to remain around 18 to 19%, or could aggressive market share expansion lead to margin compression?

Speaker #2: Yes, so I would like to reiterate that point only. We will continue our margin guidance from sustainable to improved for the year.

Prashant Gupta: Yes. I would like to reiterate that point only. We will continue our margin guidance from sustainable to improve for the year.

Speaker #4: Sorry?

Ajit Agarwal: Sorry?

Archit Agarwal: Sorry?

Speaker #2: I'm saying I'm reiterating on that point that we would like to continue our guidance on a better margins from sustainable to improve. So we have reported a 18.9% margin.

Prashant Gupta: I am saying I am reiterating on that point, that we would like to continue our guidance on EBITDA margins from sustainable to improve. We have reported 18.9% margin to continue with that.

Speaker #2: Continue that.

Speaker #4: Okay. Okay. Okay. And sir, the damage from the fire incident at Times—so how much is recoverable from the insurance?

Ajit Agarwal: Okay. Sir, the damage from the fire incident at Bawal, so how much is recoverable from the insurance?

Archit Agarwal: Okay. Sir, the damage from the fire incident at Bawal, so how much is recoverable from the insurance?

Prashant Gupta: Sir, we are adequately covered. We have considered the carrying value of the asset that got impacted. It is close to INR 143 crore, and we are sufficiently covered under that. Sir, on the progress on the claim side, that survey has already been done. In the coming quarters, we believe that this claim should be settled by the end of this year. On the loss side, whatever the maximum impact could have been taken, we have taken in this quarter only. Once the claim settles, you will see a recovery of the complete loss that we have suffered during this incident.

Speaker #2: Sir, we are adequately covered. We have taken into account the carrying value of the asset that was impacted; it is close to ₹143 crore, and we are sufficiently covered under that.

Speaker #2: And sir, on the progress on the claim side, that survey has already been done. In the coming quarters, we believe that this claim should be settled by the end of this year.

Speaker #2: And on the loss side, whatever the maximum impact could have been taken, we have taken in this quarter only. So once the claim is settled, you will see recovery of the complete loss that we have suffered during this, sir.

Ajit Agarwal: Okay, sir. Thank you. That's helpful.

Archit Agarwal: Okay, sir. Thank you. That's helpful.

Speaker #4: Thank you. That's all from me.

Operator 2: Thank you. Next question comes from the line of Anuj Wadhwa, Investec. Please go ahead.

Operator: Thank you. Next question comes from the line of Anuj Upadhyay, Investec. Please go ahead.

Speaker #1: Thank you. Next question comes from the line of Anuj Padhyay with Mistake. Please go ahead.

Speaker #5: Hey, hi sir. Thanks for the opportunity, and congrats on a great set of results. So my first question is on your cell plan, which has already been operational.

Anuj Wadhwa: Hi, sir. Thanks for the opportunity and congrats on great set of results. My first question is on your cell plant, which has already been operational. Can you mention what stabilization that plant has reached as of now?

Anuj Upadhyay: Hi, sir. Thanks for the opportunity and congrats on great set of results. My first question is on your cell plant, which has already been operational. Can you mention what stabilization that plant has reached as of now?

Speaker #5: Can you mention what stabilization the plant has reached as of now?

Speaker #2: Well, it is operating at 80%+ utilization right now.

Prashant Gupta: Sir, it is operating at 80%-plus utilization right now.

Anuj Wadhwa: Okay. Fair to assume, sir, this quarter we benefited from this DCR plant even at 80%, and once this goes up further, then the margin can move further from here on.

Anuj Upadhyay: Okay. Fair to assume, sir, this quarter we benefited from this DCR plant even at 80%, and once this goes up further, then the margin can move further from here on.

Speaker #5: Great. So, fair to assume, sir, this quarter we benefited from this DCR plan even at 80%, and once this goes up further, then the margin can move further year-on-year.

Speaker #2: We are hopeful. But as you mentioned, and as I mentioned in the previous question as well, variable factors are there in terms of raw material pricing, and to achieve the scale that we are operating at, we will share that margin benefit with our existing and new customers.

Prashant Gupta: We are hopeful. But as I mentioned in the previous question as well, that variable factors are there in terms of raw material pricing and to achieve the scale that we are operating it, we will share that margin benefit with our existing and new customers.

Speaker #5: No. Fair enough. Secondly, you know we are consistently scaling up our channel partner network. You know like we have last quarter I guess we were close to 8,000 900.

Anuj Wadhwa: Fair enough. Secondly, we are consistently scaling up our channel partner network. Last quarter, I guess we were close to 8,900. Now that number has crossed 10,000. Could you just elaborate which are the new areas where we have added these channel partners, or at least the regions which we are catering to?

Anuj Upadhyay: Fair enough. Secondly, we are consistently scaling up our channel partner network. Last quarter, I guess we were close to 8,900. Now that number has crossed 10,000. Could you just elaborate which are the new areas where we have added these channel partners, or at least the regions which we are catering to?

Speaker #5: Now that number has crossed 10,000. So, could you elaborate on the new areas where we have added these channel partners, or at least specify the regions we are now catering to?

Speaker #2: Yes. So, in the presentation, we gave a map where we, state-wise, give a detailing about what states are covered and what states are undergoing status.

Prashant Gupta: Yes. In the presentation, we gave a map where state-wise we gave a detailing about what states are covered and what states are under growing states. In the previous quarter, two states in this immediate quarter, we have added two new more states from growing category to covered, which one is Odisha and the other one is Uttarakhand. The definition of coverage is that we have one distributor in each district and one service engineer, almost.

Speaker #2: So, in the previous quarter, two states; in this immediate quarter, we have added two more states, moving them from the growing category to covered.

Speaker #2: The one is Odisha and the other one is Uttarakhand. So the definition of coverage is that we have one distributor in each district and one service engineer.

Speaker #2: Almost.

Anuj Wadhwa: Okay. Any status on the upcoming TOPCon facility? You mentioned that it would be up by Q1, but just to get a broader sense on equipment ordering or any development over there.

Anuj Upadhyay: Okay. Any status on the upcoming TOPCon facility? You mentioned that it would be up by Q1, but just to get a broader sense on equipment ordering or any development over there.

Speaker #5: Okay. And any status on the upcoming TOPCon facility? You mentioned that it would be up by Q1. But just to get a broader sense on equipment ordering or any development over there.

Speaker #2: The building is completed, and orders for the machine have also been given.

Prashant Gupta: The building is completed, and orders for the machine have also been given.

Speaker #5: Thank you, Prashant. That's helpful. That's it from my side.

Anuj Wadhwa: Thank you, Prashant. That is helpful. That is it from my side.

Anuj Upadhyay: Thank you, Prashant. That is helpful. That is it from my side.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question comes from the line of Deepak Poddar with Sapphire Capital. Please go ahead.

Prashant Gupta: Thank you.

Operator 2: Thank you. Next question comes from the line of Deepak Poddar with Sapphire Capital. Please go ahead.

Operator: Thank you. Next question comes from the line of Deepak Poddar with Sapphire Capital. Please go ahead.

Speaker #6: Hello. Hello. I'm audible sir.

Deepak Poddar: Hello. Hello, am I audible, sir?

Speaker #2: Yes sir. You are audible.

Prashant Gupta: Yes, sir. You are audible.

Speaker #6: Yes you are. Yeah. Thank you very much sir for this opportunity. So just wanted to understand I mean from the industry perspective can you give throw some light so what sort of opportunity size we are looking in rooftop I mean what would be the industry size right now and how how do you expect it to grow so some sense on that would be very helpful yeah.

Operator 2: Yes, you are. Please go ahead.

Operator: Yes, you are. Please go ahead.

Deepak Poddar: Thank you very much, sir, for this opportunity. Just wanted to understand, from the industry perspective, can you throw some light, what sort of opportunity size we are looking in rooftop? What would be the industry size right now, and how do you expect it to grow? Some sense on that would be very helpful, yeah.

Speaker #2: Yes. So we can see this number at three levels, sir. At the overall potential level, sir, there was one report from the Council of Energy where they gave around more than 630 gigawatts of rooftop solar potential is there.

Prashant Gupta: Yes. We can see this number at three levels. At the overall potential level, sir, there was one report from Council on Energy, Environment and Water where they gave around more than 630 gigawatts of rooftop solar potential is there. That is the one number. Another number that we are seeing is that overall target of solar set by the government is to have 300 gigawatts of solar capacity by FY30. Out of that 300, we believe that 90 to 100 gigawatts will come from the rooftop solar itself.

Speaker #2: That is one number. And the other number that we are seeing is that the overall target for solar set by the government is to have 300 gigawatts of solar capacity by FY30.

Speaker #2: And out of that 300 we believe that 100 90 to 100 gigawatt will come from the rooftop solar itself. So the third this is the second number of 100 gigawatt of rooftop solar by 2030.

Prashant Gupta: This is the second number of 100 gigawatts of rooftop solar by 2030. The third number is the actual capacity which is installed till now. Till now, I believe over 30 gigawatts is being already installed in this rooftop solar industry. Out of that, PM Surya Ghar: Muft Bijli Yojana is also one of the biggest catalysts in this side, and around 15 gigawatts has come from that only. We believe that additional 15 gigawatts is also there in phase one of this PM Surya Ghar: Muft Bijli Yojana scheme. As out of one crore houses, 50 lakh houses are already covered.

Speaker #2: And the third number is the actual capacity which is installed now. So till now, I believe over 30 gigawatts has already been installed in this rooftop solar industry.

Speaker #2: And out of that, three and two are mostly Bidgely. Yojna is also one of the biggest catalysts on this side. And around 15 gigawatts has come from that alone.

Speaker #2: And we believe that an additional 15 gigawatts is also there in phase one of this. Three and two are mostly Bidgely Yojna schemes. Out of 1 crore houses, 50 lakh houses are already covered.

Speaker #6: Oh, I missed the last line. So, out of how many?

Deepak Poddar: Sir, I missed the last line. Out of how many?

Speaker #2: I think, sir, that in the first phase, 3 and 2 are most likely Bidgely Yojna. The government set a target to cover at least 1 crore households.

Prashant Gupta: I think, sir, that in first phase of PM Surya Ghar: Muft Bijli Yojana, government set a target to cover at least one crore household. Out of that government has achieved 50%, which translates to 50 lakh houses.

Speaker #2: And out of that, the government has achieved 50%, which translates to 5 million houses.

Speaker #6: Okay, okay. Understood. And so, till now, 30 gigawatts of solar rooftop capacity have been installed, and you expect that to go to 90 to 100 gigawatts by 2030.

Deepak Poddar: Okay. Understood. Till now, 30 gigawatt solar rooftop capacity has been installed, and you expect that it to go to 90 to 100 gigawatt by 2030?

Speaker #2: Yes. Yes.

Prashant Gupta: Yes.

Speaker #6: Right. And generally, for a 1-gigawatt solar top, so what's the realization we generally get?

Deepak Poddar: Right. Generally, for 1 gigawatt solar top, what is the realization we generally get?

Speaker #2: Realization, sir, if you—at. It depends.

Prashant Gupta: Realization, sir, it depends.

Deepak Poddar: For 1 megawatt. Yeah.

Speaker #6: Yeah.

Speaker #2: So generally, we see it worldwide—how we measure it, we see it at the per watt realization. So for a system with battery, generally this cost comes to close to 26 to 30 rupees per watt.

Prashant Gupta: Generally, we see it as a per watt. How we measure it, we see it as a per watt realization. For a system with battery, generally this cost comes to close to INR 26 to INR 30 per watt.

Speaker #6: 26 to 30 rupees per watt. Okay.

Deepak Poddar: INR 26 to INR 30 per watt.

Speaker #2: Per watt. Yes, including panel, inverter, and battery. It depends. It depends on what battery you have purchased. First thing, what panel you have purchased—whether DCR or non-DCR—and whether your system is without battery or with battery.

Prashant Gupta: Per watt. Yes. Including panel, inverter, and battery. It depends on what battery you have purchased. First thing, what panel you have purchased, whether DCR or non-DCR, and whether your system is without battery or with battery. That is why I am giving you a range. Generally, it is INR 26 to INR 30.

Speaker #2: So that's why I'm giving a range. Generally, it's 26 to 30 rupees.

Speaker #6: Okay. Okay. Okay. Understood. Okay. Okay. Yeah, that would be it from my side. Wish you all the best. Thank you.

Deepak Poddar: Okay. Got it.

Prashant Gupta: BOM per watt.

Deepak Poddar: Okay. Understood. Okay. Yeah, that would be from my side. Wish you all the best. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you. Next question comes to the line of Himanshu Bisani with Pinpoint X Capital. Please go ahead.

Prashant Gupta: Thank you.

Operator 2: Thank you. Next question comes to the line of Himanshu Misani with Pinpoint Capital. Please go ahead.

Operator: Thank you. Next question comes to the line of Himanshu Bisani with PinPoint X Capital. Please go ahead.

Speaker #7: Hi. I'm audible.

Himanshu Misani: Hi, am I audible?

Himanshu Bisani: Hi, am I audible?

Speaker #2: Yes, we are audible. Himanshu ji, please go ahead.

Prashant Gupta: Yes, you are audible, Himanshu. Please go ahead.

Speaker #7: Congratulations, sir, on a great performance and thanks for the opportunity. Sir, four questions. First question on the lines of margin, sir: in your opening comments, you mentioned that the EBITDA margins have been a factor of, you know, increased scale and better absorption of fixed costs.

Himanshu Misani: Congratulations on a great performance and thanks for the opportunity. Sir, first question on the lines of margins. Sir, in your opening comments, you mentioned that EBITDA margins have been a factor of increased scale and better absorption of fixed cost. Just wanted to understand this downward movement in the prices of solar modules, how does that impact our margins. Obviously that was offset by the operating leverage that kicked in. How much that is sustainable. If prices continues to go down, what can be our margins.

Himanshu Bisani: Congratulations on a great performance and thanks for the opportunity. Sir, first question on the lines of margins. Sir, in your opening comments, you mentioned that EBITDA margins have been a factor of increased scale and better absorption of fixed cost. Just wanted to understand this downward movement in the prices of solar modules, how does that impact our margins. Obviously that was offset by the operating leverage that kicked in. How much that is sustainable. If prices continues to go down, what can be our margins.

Speaker #7: I just wanted to understand, this downward movement in the prices of solar modules—how does that impact our margins? And obviously, that was offset by the operating leverage that kicked in.

Speaker #7: How much of that is sustainable, and if prices continue to go down, what can our margins be?

Speaker #2: So you rightly mentioned that in non DCR this this fact is applicable because in non DCR margins are depleted but since we have now this DCR in-house solar cells so the margin profile that we are carrying off 18 to 90% we are hopeful that we will continue to sustain this and rather improve it in the coming quarters.

Prashant Gupta: You rightly mentioned that in non-DCR, this fact is applicable because in non-DCR margins are depleted. Since we have now this DCR in-house solar cells. The margin profile that we are carrying of 18% to 19%, we are hopeful that we will continue to sustain this and rather improve it in the coming quarters. The guidance remains the same as per the previous quarter of from sustainable to improve.

Speaker #2: So the guidance remains the same as in the previous quarter, from sustainable to improved.

Speaker #7: Understood, sir. And sir, what kind of utilizations are we looking at for the new 2-gigawatt power facility that came online?

Himanshu Misani: Understood, sir. Sir, what kind of utilizations we are looking at for the new 2 GW facility, power electronics facility, that is.

Himanshu Bisani: Understood, sir. Sir, what kind of utilizations we are looking at for the new 2 GW facility, power electronics facility, that is.

Speaker #2: We have ready with the capacity as we have already commissioned for 2 gigawatts of solar panels, and recently, in the month of August, we also installed 2 gigawatts of inverters.

Prashant Gupta: We are ready with the capacity, as we have already commissioned for 2 gigawatt solar panel. Recently in August, we also installed 2 gigawatt inverter. But initially we will start with one shift only. As the demand increases in the coming quarter, as the demand scales up, we are also doing the testing of the lines parallelly. If demand scales up further, we are ready with the capacities and we can meet the demand. Initially, in terms of figure, you can take close to 40% to 50% utilization of the capacity, of the plant.

Speaker #2: But initially, we will start with one shift only. As the demand increases in the coming quarter and as the demand scales up, we are also doing the testing of the lines in parallel.

Speaker #2: So if demand scales up further, we are ready with the capacities and we can meet that demand. So initially, in terms of figure, you can take close to 40% to 50% utilization of the capacity.

Speaker #2: Of that plan.

Speaker #7: Got it, sir. Sir, a question on Surya Yojna. So, the scheme has already covered around 5 million of the 10 million household target. Do you think that we will be able to cover the target by 2027, according to you?

Himanshu Misani: Got it, sir. Sir, question on PM Suryodaya Yojana. The scheme has already covered around 5 million of the 10 million household target. Do you think that we will be able to cover the target by 2027? According to you, how do you see the on-ground work? Secondly, you mentioned in the opening comments about PM Surya Ghar 2.0, with some lines around this. In previous calls, you have mentioned about exploring this as an opportunity. If you can throw some more light on that, how do you see that opportunity and what that can bring to our books?

Himanshu Bisani: Got it, sir. Sir, question on PM Suryodaya Yojana. The scheme has already covered around 5 million of the 10 million household target. Do you think that we will be able to cover the target by 2027? According to you, how do you see the on-ground work? Secondly, you mentioned in the opening comments about PM Surya Ghar 2.0, with some lines around this. In previous calls, you have mentioned about exploring this as an opportunity. If you can throw some more light on that, how do you see that opportunity and what that can bring to our books?

Speaker #7: How do you see the on-ground work? And secondly, you mentioned in your opening comments about Surya 2.0. Could you share some lines around this? In previous calls, we have mentioned exploring bases and opportunities.

Speaker #7: So, if you can throw some more light on that, how do you see that opportunity, and what is the best that can bring to our books?

Prashant Gupta: Sir, if you see the scale, the run rate of rooftop solar adoption under that scheme, it has scaled up a lot. The current run rate is close to 1 gigawatt per month installation, per month under this scheme only. Definitely the scale of adoption has increased, and we believe it will further increase. That is the answer to your first question. Now on the second question that you asked about the 2.0. At various media platforms, we are seeing that government is discussing about it, and it should come up as there is lot of potential as we discussed in one of the question asked by another investor. We believe since the potential is huge, government will definitely come up with new policies and new provisions to support adoption of rooftop solar.

Speaker #2: Sir, if you see the scale, the run rate of rooftop solar adoption under that scheme has scaled up a lot, and the current run rate is close to 1 gigawatt per month of installations under this scheme only.

Speaker #2: So, definitely, the scale of adoption has increased, and we believe it will further increase. That is the answer to your first question. And now, on the second question that you asked about the 2.0.

Speaker #2: So at various media platforms we have see we are seeing that government is discussing about it and it it should come up as there is lot of potential as we discussed in the in one of the question asked by the another investors.

Speaker #2: So we believe that, since the potential is huge, the government will definitely come up with new policies and new provisions to support adoption of rooftop solar.

Speaker #7: Understood, sir. Congratulations, and thank you so much.

Himanshu Misani: Understood, sir. Congratulations and thank you so much.

Himanshu Bisani: Understood, sir. Congratulations and thank you so much.

Speaker #2: Thank you.

Prashant Gupta: Thank you.

Speaker #1: Thank you. Next question comes from the line of Vinay Lakhera with Ratna Triad Capital. Please go ahead.

Operator 2: Thank you. Next question comes on the line of Vinay Lakhera with RatnaTraya Capital. Please go ahead.

Operator: Thank you. Next question comes on the line of Vinay Lakhera with RatnaTraya Capital. Please go ahead.

Speaker #8: Yeah. Hi, sir. My first question was regarding the acquisition. Can you give some details about the Zeo Energy Private Limited acquisition—maybe in terms of what kind of impact we can expect on margins or cost savings, as well as some details of the deal?

Vinay Lakhera: Yeah. Hi, sir. My first question was on the line of the acquisition. Can you give some details of the Zayo Energy Private Limited acquisition, maybe in terms of what kind of impact we can see in margins or cost savings and the deal details, if you can?

Speaker #8: If you can.

Speaker #7: Yes we are.

Speaker #2: Apart from the margin, the primary objective to invest in these companies is to ensure our backward integration objective, so that the supply of raw material is continuous and the bottlenecks can be removed.

Prashant Gupta: Apart from the margin, the primary objective to invest in these companies is to ensure our backward integration objective so that the supply of the raw material is continuous and the bottleneck can be removed. On the margin side, we will come up with a number as the quarter progress. Right now, the company is in the stages of acquiring the land, and maybe in a year or so, they will complete the land acquisition and the construction process. In the coming quarters, we will come up with the margins improvement side, if any, that would be there. Margin is not the primary objective idea.

Speaker #2: On the margin side, we will come up with a number as the quarter progresses. Right now, the company is in the stages of acquiring the land, and maybe in a year or so, the acquisition and construction process will begin.

Speaker #2: In the coming quarters, we will address the margin improvement side if there is any, but margin is not the primary objective at this time.

Vinay Lakhera: Okay. What would be the size of this deal, if you have any details on that?

Speaker #8: Okay. What would be the size of this deal, if you have any details on that?

Speaker #2: Just to give an approximate idea, at this stage I believe the overall capex that will be needed for these plants will be close to Rs. 180 to 200 crore.

Prashant Gupta: Just to give an approximate idea at this stage, I believe the overall CapEx that will be needed for these plants will be close to INR 180 to 200 crore. That's an idea right now. We will come up with the final numbers in the coming quarters.

Speaker #2: That's an idea right now. We will come up with the final numbers in the coming quarter.

Speaker #8: Okay. And my next question was on the capacity utilization part. So, we have DCR and non-DCR capacity for solar panels. Can you give us a split of capacity utilization, and moving forward, how do you see the sustainable rates for these?

Vinay Lakhera: Okay. My next question was on the capacity utilization part. We have DCR and non-DCR capacity for solar panels. Can you give us a split of capacity utilization, and moving forward, how do you see the sustainable rates for these?

Prashant Gupta: We have 1 gigawatt of solar cell capacity, and whatever we are manufacturing, we are utilizing in-house to sell these to DCR customers, whoever wants DCR solar panels. On the panel side, machines are flexible. They can use DCR, non-DCR, both are solar cells. The capacity that we have right now is close to 1.6 gigawatts in the plant other than Ratlam, and recently we have commissioned 2 gigawatts in Ratlam. Till 1 gigawatt, we can have solar cell in-house. If the demand is high, as we are buying it right now also from outside, we can procure DCR from the existing vendors as well.

Speaker #2: We have 1 gigawatt of solar cell capacity, and so whatever we are manufacturing, we are utilizing in-house to sell these to DCR customers.

Speaker #2: Whoever wants DCR solar panels, and on the panel side, the machines are fungible. They can use both DCR and non-DCR solar cells.

Speaker #2: So, the capacity that we have right now is close to 1.6 gigawatts in the plant, other than the Plum, and recently we have commissioned 2 gigawatts in the Plum.

Speaker #2: So till 1 gigawatt we can have solar cell in-house. If the demand is high as we are buying it right now also from outside we can buy procure DCR from out from out from the existing vendors as well.

Speaker #8: So, on the panel-level calculation, what kind of capacity utilization can we see?

Vinay Lakhera: On the panel level calculation, what kind of capacity utilization we can see?

Speaker #2: Utilization right now is close to 70% of the capacity that we are having, excluding the Plum. If you see, because the Plum we are right now operating in one shift.

Prashant Gupta: Utilization right now, it's close to 70%, the capacity that we are having, excluding Ratlam, if you see, because Ratlam, we are right now operating in one shift. So at the other plants, the capacity utilization is close to 70% and 80%. And coming to the shift side, as I mentioned to you can use the same machine for both DCR panel and non-DCR panels, both.

Speaker #2: So, at the other plants, the capacity utilization is close to 70% and 80%. And coming to the split side, as I mentioned to you, you can use the same machine for both DCR panel and non-DCR panel, both.

Speaker #8: Okay. And sir, on the growth part only—so beyond, for example, we have performed really well for the last two quarters, and also we are seeing that PM 2.0 is coming, Surya Yojna.

Vinay Lakhera: Okay. And sir, on the growth part only, for example, we have performed really well for the last two quarters, and also we are seeing that PM 2.0 coming, Surya Garoja. So apart from that, do you see any growth areas where the company's focusing, especially for after one and a half years, from where the major growth can be seen? Somewhere like lithium ion or battery side?

Speaker #8: So apart from that, do you see any growth areas where the company is focusing, especially for after, like, one or one and a half years from now, where the major growth can be seen?

Speaker #8: Somewhere like DCMI or the battery side or...

Speaker #2: So, 2 gigawatt DCMI and batteries—we are already installing in our plum plant, and so you can say, in other words, we are already there in the residential best.

Prashant Gupta: Two gigawatt lithium ion batteries we are already installing in our Ratlam plant. And you can say in other way, we are already there in the residential space. For the large scale space, we are having something in our mind, and we will definitely cover this in the coming quarters' guidance, that how we will go into that sector. We are thinking about it, and we are also drafting our plans for that.

Speaker #2: At the, for the last scale, we have something in our mind and we will definitely cover this in the coming quarters’ guidance—that is, how we will go into that sector.

Speaker #2: We are thinking about it, and we are also drafting our plans for that.

Speaker #8: And so the focus is still on the residential rooftop, right? Not the industrial part.

Vinay Lakhera: The focus is still on the residential rooftop, right? Not the industrial part.

Speaker #2: Yes, the primary focus is on that side, as you can see that 90% of our revenue is from the B2C channel network only. So, the primary target is on that side only.

Prashant Gupta: Yes, the primary focus is on that side. As you can see that over 90% of our revenue is from B2C channel network only. So the primary target is on that side only.

Speaker #8: Okay. Thanks a lot.

Vinay Lakhera: Okay, sir. Thanks a lot.

Speaker #1: Thank you. Next question comes from Sanjay with Ampersand. Please go ahead.

Operator 2: Thank you. Next question comes on the line of Sanjaya with Ampersand. Please go ahead.

Operator: Thank you. Next question comes on the line of Sanjaya with Ampersand. Please go ahead.

Speaker #8: Yes, sir. Thank you very much for the opportunity and the conversation. Fantastic.

[Company Representative] (Ampersand): Yes, sir. Thank you for the opportunity and the

Sanjaya Satapathy: Yes, sir. Thank you for the opportunity and the

Operator 2: Listen, Sanjaya, sorry for interrupting. We cannot hear you. Can you come a little closer and speak?

Operator: Listen, Sanjaya, sorry for interrupting. We cannot hear you. Can you come a little closer and speak?

Speaker #1: Mr. Sanjay, sorry for interrupting. We cannot hear you. Can you come a little closer and speak?

Speaker #8: Regular battery.

[Company Representative] (Ampersand): tubular battery.

Sanjaya Satapathy: tubular battery.

Speaker #1: Yes, now we can. Please go ahead.

Operator 2: Yes, now we can. Please go ahead.

Operator: Yes, now we can. Please go ahead.

Speaker #8: Actually, yeah, yeah. So, this tubular battery factory, which did not operate because of the fire and you had to trade in—did that have some kind of negative impact on your gross margin?

[Company Representative] (Ampersand): So this tubular battery factory, which did not operate because of fire, and you had to trade in, did that have some kind of negative impact on your gross margin?

Sanjaya Satapathy: So this tubular battery factory, which did not operate because of fire, and you had to trade in, did that have some kind of negative impact on your gross margin?

Speaker #7: Gross margin yes.

Vinay Lakhera: Gross margin, yes.

Pawan Kumar Garg: Gross margin, yes.

Speaker #2: To a certain extent, the answer is yes, sir, because whatever material margin that we were saving by having in-house, the tubular battery capacity was not there. So, at a gross margin level, definitely it got reduced when we were procuring tubular batteries from outside vendors.

Prashant Gupta: To a certain extent, the answer is yes, sir. So whatever material margin that we were saving, having in-house the tubular battery capacity was not there. And so at the gross margin level, definitely, it got reduced when we were procuring tubular batteries from outside vendors.

Speaker #8: And would there be any quantification? No.

[Company Representative] (Ampersand): And could there be any quantification or no?

Sanjaya Satapathy: And could there be any quantification or no?

Prashant Gupta: Sir, tubular battery is generally 10% of our revenue. We believe that at company level, the impact at the gross margin level will be below 0.5%.

Speaker #2: The tubular battery is generally 10% of our revenue, and we believe that at the company level, the impact on the gross margin will be below 0.5%.

Speaker #8: Understood. My second question is that if you can just help us understand that definitely your company is doing faster than the industry but if you can just give a color about how the industry year on year and quarter on quarter compared to yourself and what kind of market share you have.

[Company Representative] (Ampersand): Understood. My second question is that if you can just help us understand that definitely your company is growing faster than the industry. If you can just give a color about how the industry year-on-year and quarter-on-quarter compared to yourself and what kind of market share you have. Is it sufficient to say that your market share is now about 8% to 10%?

Sanjaya Satapathy: Understood. My second question is that if you can just help us understand that definitely your company is growing faster than the industry. If you can just give a color about how the industry year-on-year and quarter-on-quarter compared to yourself and what kind of market share you have. Is it sufficient to say that your market share is now about 8% to 10%?

Speaker #8: Is it sufficient to say that your market share is now about 8 to 10%?

Speaker #2: Officially, it's very difficult to confirm the market share size, but we believe that, in terms of inverters, we are contributing to the rooftop solar market, and now we are also supplying DCR panels.

Prashant Gupta: Officially, it is very difficult to confirm on the market share side, but we believe that in terms of inverters, that we are contributing in the rooftop solar market, and now we are also supplying DCR panels. We believe that, as you rightly mentioned, we are having around 10% of on-grid market share.

Speaker #2: So, we believe that we are, as you rightly mentioned, at around—we have around 10% of the on-grid market share.

Speaker #8: Okay. But how is—I mean, I'm just trying to get a sense of your market share gain. Are you growing way faster than the industry or not?

[Company Representative] (Ampersand): Okay. I am just trying to get a sense of your market share gain. Are you growing way faster than industry or not?

Sanjaya Satapathy: Okay. I am just trying to get a sense of your market share gain. Are you growing way faster than industry or not?

Speaker #2: So the growth in terms of distribution network is relatively high, as you rightly mentioned. That's why you are seeing this growth—more than the industry—because we are acquiring new geophysical locations.

Prashant Gupta: Sir, the growth in terms of the distribution network is relatively high, as you rightly mentioned. So that's why you are seeing this growth more than industry. Because we are acquiring new geographical locations, we are adding new distributors in our network.

Speaker #2: We are adding new distributors to our network.

Speaker #8: Understood. Understood. And lastly is it seasonally this kind of spike is usual for quarter four one compared to quarter four or is it more because of the capacity that you added that you saw such a high growth compared to quarter four?

[Company Representative] (Ampersand): Understood. Lastly, seasonally, this kind of spike is usual for Q1 compared to Q4? Or is it more because of the capacity that you added that you saw such a high growth compared to Q4?

Sanjaya Satapathy: Understood. Lastly, seasonally, this kind of spike is usual for Q1 compared to Q4? Or is it more because of the capacity that you added that you saw such a high growth compared to Q4?

Speaker #2: Sir, can you please repeat the question?

Prashant Gupta: Sir, can you please repeat the question?

Speaker #8: So, your growth in quarter one compared to Q4 was really high compared to any time in the past. So, what I am trying to understand is how much of that growth was because of seasonality, and how much was due to the initiatives that you took?

[Company Representative] (Ampersand): Your growth in Q1 compared to Q4 was very high compared to any time in the past. So what I am trying to understand is that how much of the growth was because of seasonality and how much is it because of the initiatives that you took?

Sanjaya Satapathy: Your growth in Q1 compared to Q4 was very high compared to any time in the past. So what I am trying to understand is that how much of the growth was because of seasonality and how much is it because of the initiatives that you took?

Speaker #2: So it's a mix of both the factors. So, from 8,900 channel partners, we have moved to more than 10,100. So definitely, we have added new customers and we have reached out to new geographies. As I informed in the previous questions, we have added two new states in our covered category: Odisha and Uttarakhand.

Prashant Gupta: It's a mix of both the factors. From 8,900 channel partners, we have moved to more than 10,100. We have added new customers, and we have reached out to new geographies, as I informed in a previous question that we have added two new states in our covered category, Odisha and Uttarakhand. Demand is there already, as you mentioned that industry growth is there. Our industry is growing with a growth rate of 30%. It's a mix of both the factors, definitely.

Speaker #2: And demand is there already, definitely is there. As you mentioned, industry growth is there for our industry, which is growing at a growth rate of 40%.

Speaker #2: So it's a mix of both factors, definitely.

Speaker #8: Understood. Thanks, and congratulations once again for growing at almost more than twice the rate of the industry. Thank you.

[Company Representative] (Ampersand): Understood. Thanks and congratulations once again for growing almost more than twice the rate of industry. Thank you.

Sanjaya Satapathy: Understood. Thanks and congratulations once again for growing almost more than twice the rate of industry. Thank you.

Speaker #2: Thank you.

Prashant Gupta: Thank you.

Speaker #1: Thank you. Next question comes from Sagar Shah with Park Capital. Please go ahead.

Operator 2: Thank you. Next question comes from the line of Sagar Shah, Spark Capital. Please go ahead.

Operator: Thank you. Next question comes from the line of Sagar Shah, Spark Capital. Please go ahead.

Sagar Shah: Yeah. First of all, many congratulations to the entire team of Fujiyama for delivering such excellent set of earnings. I have a few questions, sir. My first question was that in this particular quarter, the revenue growth was actually quite robust. In this quarter, what was the contribution from the Ratlam plant? Can you quantify that? Have we started using the Ratlam solar panel unit also?

Speaker #7: Yeah. First of all, many congratulations to the entire team at Fujiyama, actually, for delivering such excellent set of earnings. And now I had just a few questions.

Speaker #7: Sir, my first question was that in this particular quarter, the revenue growth was actually quite robust. It was so in this quarter; what was the contribution from the plum plant? Actually, can you quantify that?

Speaker #7: Have we started using the Plum Solar Panel Plant also, the solar panel unit also?

Speaker #2: It will be relatively on the lower side because we capitalized this plant on the 14th of May only. So, it was available only for one and a half months.

Prashant Gupta: It will be relatively on a lower side because we capitalized this plant on 14 May only. So it was available only for 1 and a half months. So if you see at a percentage level, it will be on the lower side.

Speaker #2: So, if you see, at a percentage level, it will be very much on the lower side.

Speaker #7: Okay. Okay. Fine. So basically, this growth was largely contributed by the solar panels that we have in Noida, right? In Noida, the growth was largely contributed by lithium-ion batteries and the solar inverters, right?

Sagar Shah: Okay, fine. So basically, this growth was largely contributed by the solar panels that we have in Noida, right? In Noida, and the growth was largely contributed by lithium-ion batteries and the solar inverters, right?

Speaker #2: So we sell it as a package. So it's a mix of all three. But the good part is that earlier we did not have the DCR panel, as we were dependent on external vendors to provide us with the DCR solar cell.

Prashant Gupta: Sir, we sell it as a package, so it is a mix of all three. But the good part is that earlier we were not having DCR panel, as we were dependent on the external vendors to give us the DCR solar cell. So now we have this DCR panel. So along with panel now, there is a definitely increase in sale of inverter and batteries.

Speaker #2: So, since right now we have this DCR panel, along with the panel, there is definitely an increase in sales of inverters and batteries.

Speaker #7: Okay. So basically because of the realization especially on the on the monopod DCR that that is we got the higher realization that that's what you said.

Sagar Shah: Okay. So basically because of the realization, especially on the mono PERC DCR, that is how you got the higher realization. That is what you are saying?

Speaker #2: Yes.

Prashant Gupta: Yes.

Speaker #7: Okay. Sir my second question was related to this Bawal Fire Insurance. This what how long are you expecting the claim to be actually the claim to be refunded actually at your end?

Sagar Shah: Okay. Sir, my second question was related to this Bawal fire insurance. How long are you expecting the claim to be refunded actually? At your end, it will take six months or nine months or even further?

Speaker #7: Will it take six months, nine months, or even longer?

Speaker #2: So, we had made a good project. The survey is already done, and the surveyor is finalizing his report. So we believe that by the end of this financial year, we will get the claim amount.

Prashant Gupta: Look, we had made good progress. Survey is already done, and surveyor is finalizing his report. We believe that by the end of this financial year, we will get the claim amount.

Speaker #7: Okay. Okay. Fine, sir. Now, my last question, sir, was related to the segmental revenue. First of all, if you can, if you have the data, then if you can just quantify what segments actually did we clock the revenue in. And secondly, my suggestion to the management is that going ahead in the investor presentation, if you can quantify that between the segments—how much revenue came—actually for further transparency and clarity for the investors, so that the company's products can also be highlighted. Along with, obviously, everybody knows that Fujiyama, as a combo, is a portfolio.

Sagar Shah: Okay. Fine, sir. Now my last question, sir, was related to the segmental revenue. First of all, if you have the data, if you can just quantify what segments actually did we clock the revenue. Secondly, my suggestion to the management is that going ahead in the investor presentation, if you can quantify that between the segments, how much revenue came actually for further transparency and clarity for the investors so that the company's products can also be highlighted along with, obviously everybody knows that Fujiyama sells as a combo in the portfolio. But still, it would really help the investors to understand your expertise and actually your SKUs also regarding the same, how critical are they in the future?

Speaker #7: But still, it would really help the investors to understand your expertise and, actually, your SKUs also. Regarding the same, how critical are they in the future?

Prashant Gupta: Okay. Sir, Pawan this side.

Pawan Kumar Garg: Okay. Sir, Pawan this side.

Pawan Kumar Garg: basically एक तो यह है कि हम क्योंकि FPGX बेचते हैं और इसमें variable factors बहुत हैं product portfolio को लेकर। DCR है, non-DCR है, battery में lead acid है, lithium ion है, inverter में on grid है, off grid है, hybrid है, उसमें भी further बहुत ज्यादा चीजें हैं। अब इसमें, अगर हम segment wise देखेंगे तो confusion काफी ज्यादा हो जाता है। अब मैं example के लिए बताता हूं आपको। अगर हम megawatt की terms में देखें तो हमारा inverter panel से double है। अगर मान लो 1 gigawatt हम panel बेचते हैं तो inverter हम 2 gigawatt बेचते हैं। अगर revenue देखेंगे तो panel का revenue कहीं ज्यादा आएगा inverter से। क्योंकि per watt जो इसका realization होता है panel में, वह कहीं ज्यादा होता है। तो इसमें confusion काफी ज्यादा हो जाते हैं जब हम इस तरह से बात करते हैं। तो इसलिए हमने थोड़ा सा शुरू में किया। लेकिन investor side से जब questions आते हैं तो more or less वह लगता है कि गोल गोल के वह काफी ज्यादा confusion create कर दे रहे हैं। तो इसलिए हमने थोड़ा सा उस चीज को हटाया और इसमें किस तरह market जा रही है, यह तो काफी चीजों पर depend करता है कि हम किस geography में जा रहे हैं। UP में कुछ और demand है। अगर वहीं हम West Bengal में जाएंगे तो कुछ और तरह की demand है और जब हम urban को ज्यादा tier 1 को ज्यादा pick करेंगे तो वहां पर on grid की ज्यादा demand आएगी और वहीं rural को ज्यादा pitch करेंगे तो off grid की ज्यादा demand आएगी। तो mix and match बहुत है। इसी तरह से lithium में जब lithium के price fluctuate करने लगते हैं, फिर थोड़ा ऊपर जाने लगते हैं तो lead acid का share बढ़ जाता है और जब lithium के rate नीचे आते हैं फिर lithium का share बढ़ जाता है। तो इतने ज्यादा variables हैं कि हर महीने ये ratio सारे के सारे change हो जाते हैं। तो इसलिए हमने थोड़ा सा इन चीजों को avoid किया basically ताकि confusion ज्यादा ना हो।

Sagar Shah: Sir, please continue sir.

Pawan Kumar Garg: जी। Main है कि guidance का जो हमारा revenue based guidance है, वह हम करेंगे track करने की पूरी, मतलब जो हम बोलेंगे तो उसको कोशिश करेंगे उससे better perform करें।

Sagar Shah: Sir जी, my last question. हमारे 950 plus distributors से last quarter में, अभी यह quarter में अभी हम 1150 cross कर चुके हैं। तो 200 distributors यह हमने नए states में लगाए हैं या फिर हमारे जो original states में जहां हमारी इतनी अच्छी presence है, वहीं लगाए हैं।

Pawan Kumar Garg: दोनों ही है, sir. Existing में भी बढ़ रहे हैं और नया area भी cover कर रहे हैं।

Prashant Gupta: Sir, as two states in a previous question, Odisha and Uttarakhand. We have brought these two states under the category of cover. The definition of cover is that we have one distributor in almost each district and one service engineer for each district. In these two states, we have increased rapidly in terms of distributor.

Pawan Kumar Garg: In this, sir, some Fujiyama distributors are also increasing in existing areas. So, the number of distributors is also adding up in this.

Sagar Shah: Okay. Fine sir. I will come back to you. Thank you so much and thank you for the opportunity.

Operator 2: Thank you. Next question comes on the line of Shweta Jain with Anand Rathi Share and Stock Brokers Limited. Please go ahead.

Operator: Thank you. Next question comes on the line of Shweta Jain with Anand Rathi Share and Stock Brokers Limited. Please go ahead.

Shweta Jain: Hi, good evening. Congratulations on a very good set of numbers. Most of my questions have been asked actually. Just wanted to understand, what is the company's strategy to further increase the distribution channel? What is the target that we are looking for FY27 and FY28?

Prashant Gupta: Whatever we have done earlier to increase the distribution channel, we are continuing the same strategy, same policy that we keep on tracking the new MNRE portal registered vendors and targeting them to get in UTL Solar or Fujiyama Solar brand. Also, we are targeting the inverter battery dealers who are doing the business and converting them to be our distributors or dealers. That is what we are doing and we are doing it vigorously.

Pawan Kumar Garg: Whatever we have done earlier to increase the distribution channel, we are continuing the same strategy, same policy that we keep on tracking the new MNRE portal registered vendors and targeting them to get in UTL Solar or Fujiyama Solar brand. Also, we are targeting the inverter battery dealers who are doing the business and converting them to be our distributors or dealers. That is what we are doing and we are doing it vigorously.

Shweta Jain: Sir, any target that we are looking at for FY27, FY28?

Prashant Gupta: Whatever rate we are growing, I hope we will be keeping the same growth rate.

Pawan Kumar Garg: Whatever rate we are growing, I hope we will be keeping the same growth rate.

Shweta Jain: Okay.

Pawan Kumar Garg: At FY28, we believe more than INR 1,500, ma'am.

Shweta Jain: 15,000?

Pawan Kumar Garg: Distributor.

Shweta Jain: Inverter, including Shoppe.

Pawan Kumar Garg: Yes, including Shoppe dealer and distributor 15,000.

Shweta Jain: Okay. On the CapEx front sir, how much have we incurred so far and what is expected to be spent?

Prashant Gupta: On the CapEx front ma'am, just give me a moment. When we start this year, we were close to 800, including CWIP and by the end of this year it will be close to 1,300.

Shweta Jain: INR 1,300 crores for FY27?

Prashant Gupta: No, I am talking in terms of cumulative.

Shweta Jain: Okay.

Pawan Kumar Garg: Gross block.

Prashant Gupta: Gross block only.

Shweta Jain: Gross block. Sorry.

Prashant Gupta: Just to give you an idea what we have added here, we have added our solar cell plant that is coming up to 1.2 gigawatt capacity.

Shweta Jain: Okay.

Prashant Gupta: And other miscellaneous like solar park and batch that we will be adding.

Shweta Jain: This does not include Zayo Energy?

Prashant Gupta: No.

Shweta Jain: Okay.

Operator 2: Next year

Pawan Kumar Garg: Next year

Shweta Jain: That will flow on to next year. Not this year, is that so?

Prashant Gupta: Yes.

Shweta Jain: I think 200 crores is what we spoke about in previous call.

Prashant Gupta: 200, मैं एक बार clear कर देता हूँ ma'am. Total CapEx ₹200 का होगा वहां पर Zayo में, जिसमें से Fujiyama का share 50% रहेगा।

Yogesh Dua: 200, मैं एक बार clear कर देता हूँ ma'am. Total CapEx ₹200 का होगा वहां पर Zayo में, जिसमें से Fujiyama का share 50% रहेगा।

Shweta Jain: हाँ।

Prashant Gupta: उसमें भी कुछ debt और equity का portion रहेगा। तो overall जो Fujiyama का equity portion अगर हम देखेंगे जो वहां पर जाएगा, तो वह काफी कम जाएगा। You can assume ₹50 crore basically.

Yogesh Dua: उसमें भी कुछ debt और equity का portion रहेगा। तो overall जो Fujiyama का equity portion अगर हम देखेंगे जो वहां पर जाएगा, तो वह काफी कम जाएगा। You can assume ₹50 crore basically.

Shweta Jain: अच्छा, ठीक है। Thank you so much, sir. Thank you. That's it.

Operator 2: Thank you. Next question comes from the line of Diana with Dolat Capital. Please go ahead.

Operator: Thank you. Next question comes from the line of Diana with Dolat Capital. Please go ahead.

Diana: Hello, sir. Thank you for the opportunity. My question is on PM Suryodaya Yojana scheme. The acceptance rate for applications of this scheme is currently at 50% to 56%, and even the loans are not getting sanctioned for everyone who is applying. What do you think are the challenges faced here in the industry, and how do you think PM Surya Ghar 2.0 will solve this?

Diana Bokinala: Hello, sir. Thank you for the opportunity. My question is on PM Suryodaya Yojana scheme. The acceptance rate for applications of this scheme is currently at 50% to 56%, and even the loans are not getting sanctioned for everyone who is applying. What do you think are the challenges faced here in the industry, and how do you think PM Surya Ghar 2.0 will solve this?

Prashant Gupta: Okay.

Yogesh Dua: Okay.

Prashant Gupta: मतलब ऐसा नहीं है कि किसी को मिल रहा है, किसी को नहीं मिल रहा। अभी basically main है कि components की shortage है, DCR panel की shortage है, उतना supply नहीं है, जिसकी वजह से थोड़ा delay चल रहा है। Otherwise, काफी push है government का, DISCOM के ऊपर भी approval का, हर चीज का tax लगा हुआ है। थोड़ा सा यह है कि कभी-कभी लोगों का loan pass होने में थोड़ा time लग जा रहा है या फिर उधर से उनको supply या जो rate पर वह चाहते हैं कि material मिल जाए, उस rate पर नहीं मिलता। तो चीजें हो रही हैं कि applications काफी ज्यादा pending दिख रही हैं। पर ऐसा कुछ नहीं है कि government की तरफ से ऐसा है कि अभी वह delay करना है या DISCOMs की तरफ से है कि delay करना है। Government का काफी push है और इसको और fast track पर जैसे cell की capacity आ रही है, DCR cell की capacity, तो यह adoption और fast होगा इसमें।

Yogesh Dua: मतलब ऐसा नहीं है कि किसी को मिल रहा है, किसी को नहीं मिल रहा। अभी basically main है कि components की shortage है, DCR panel की shortage है, उतना supply नहीं है, जिसकी वजह से थोड़ा delay चल रहा है। Otherwise, काफी push है government का, DISCOM के ऊपर भी approval का, हर चीज का tax लगा हुआ है। थोड़ा सा यह है कि कभी-कभी लोगों का loan pass होने में थोड़ा time लग जा रहा है या फिर उधर से उनको supply या जो rate पर वह चाहते हैं कि material मिल जाए, उस rate पर नहीं मिलता। तो चीजें हो रही हैं कि applications काफी ज्यादा pending दिख रही हैं। पर ऐसा कुछ नहीं है कि government की तरफ से ऐसा है कि अभी वह delay करना है या DISCOMs की तरफ से है कि delay करना है। Government का काफी push है और इसको और fast track पर जैसे cell की capacity आ रही है, DCR cell की capacity, तो यह adoption और fast होगा इसमें।

Diana: Got it, sir. My second question is, this 2.0, will it have additional 30 gigawatt? Will it be given to everyone or certain lower income households? What is your view on this, how will this 2.0 come? Will it be same as 1.0? Any idea on that?

Diana Bokinala: Got it, sir. My second question is, this 2.0, will it have additional 30 gigawatt? Will it be given to everyone or certain lower income households? What is your view on this, how will this 2.0 come? Will it be same as 1.0? Any idea on that?

Prashant Gupta: Lower income group का अभी हमारे को idea भी नहीं था, आपने बताया तो उस segment में हम already काम कर रहे हैं। 1 KVA का system हमारा INR 50,000 की range में और आज भी वह most running item है हमारी basically। मतलब हम वह off grid में काफी ज्यादा बेचते हैं। On grid में भी 1 KVA का system हमने पीछे launch किया है और microinverter जिसको हम कहेंगे। अभी काफी सारे tenders भी government के निकल रहे हैं, उसमें भी हम participate भी कर रहे हैं और उसमें जो लोग participate कर रहे हैं, as a OEM भी हम उसमें supply करने की कोशिश कर रहे हैं। क्योंकि इन दिनों में अगर आप design देखेंगे microinverter में, हम first हैं जिन्होंने यह develop भी किया और approvals भी ले रहे हैं हम इससे।

Yogesh Dua: Lower income group का अभी हमारे को idea भी नहीं था, आपने बताया तो उस segment में हम already काम कर रहे हैं। 1 KVA का system हमारा INR 50,000 की range में और आज भी वह most running item है हमारी basically। मतलब हम वह off grid में काफी ज्यादा बेचते हैं। On grid में भी 1 KVA का system हमने पीछे launch किया है और microinverter जिसको हम कहेंगे। अभी काफी सारे tenders भी government के निकल रहे हैं, उसमें भी हम participate भी कर रहे हैं और उसमें जो लोग participate कर रहे हैं, as a OEM भी हम उसमें supply करने की कोशिश कर रहे हैं। क्योंकि इन दिनों में अगर आप design देखेंगे microinverter में, हम first हैं जिन्होंने यह develop भी किया और approvals भी ले रहे हैं हम इससे।

Diana: Got it, sir. But any idea on 2.0, whether it will come for all the households or any division will be there? Any idea on that?

Diana Bokinala: Got it, sir. But any idea on 2.0, whether it will come for all the households or any division will be there? Any idea on that?

Prashant Gupta: अभी इसमें clarity नहीं है कि क्या करने वाले हैं। बस अभी थोड़ा सा यह clarity आई है कि इसमें battery को क्योंकि जो दिन में power ज्यादा हो जा रही है और रात को कम हो जा रही है, तो उसके लिए battery को भी साथ में इसमें add करने वाले हैं। और हम लोग तो 30 साल से battery based system में काम कर ही रहे हैं। तो we think अगर यह scheme आती है तो हमारे लिए काफी अच्छा रहेगा।

Yogesh Dua: अभी इसमें clarity नहीं है कि क्या करने वाले हैं। बस अभी थोड़ा सा यह clarity आई है कि इसमें battery को क्योंकि जो दिन में power ज्यादा हो जा रही है और रात को कम हो जा रही है, तो उसके लिए battery को भी साथ में इसमें add करने वाले हैं। और हम लोग तो 30 साल से battery based system में काम कर ही रहे हैं। तो we think अगर यह scheme आती है तो हमारे लिए काफी अच्छा रहेगा।

Diana: Okay, got it, sir. That is all from my side. Thank you.

Diana Bokinala: Okay, got it, sir. That is all from my side. Thank you.

Prashant Gupta: Thank you.

Operator 2: Mr. Kumar, please go ahead. Mr. Kumar, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Kumar, we will move to the next participant. That is Abhi Jain with AT Capital. Please go ahead. Mr. Jain, please go ahead.

Operator: Mr. Kumar, please go ahead. Mr. Kumar, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Kumar, we will move to the next participant. That is Abhi Jain with AJ Capital. Please go ahead. Mr. Jain, please go ahead.

Abhi Jain: Hope I am audible.

Operator 2: Yes, you are.

Operator: Yes, you are.

Abhi Jain: My question was that, in the last investor question, you said that this year ending loss will be INR 1,300 crores. I have been seeing in the last 3, 4 years that fixed asset turnover is close to about 4x or gross asset turnover is also close to about 4x. Is it safe to assume that FY27 will be nearing about INR 5,000 odd crores of revenue? This 500 additional crores of CapEx that you will be doing this year, what percentage of it would be equity dilution? What percentage of that would be debt? That is my first question.

Prashant Gupta: Sir, on the revenue guidance side, we have upgraded our guidance, which was initially 50% upside to 70% for this year. We will trail it further in the coming quarters as the demand grows and as our revenue grows. On the second question you asked about the gross block of 1,300, it is inclusive of our solar cell plant and the plant capacity that will be completed. On the asset turnover side, solar cell plant that we have added is more from a margin point of view rather than on the revenue side. Can you please repeat the third question that you asked?

Abhi Jain: I just wanted to understand the INR 500 crores of CapEx that you will be employing this year. What part of it would be equity dilution and what part of it would be debt?

Prashant Gupta: There would be no equity dilution as such in this year. On the debt side, out of this 500, INR 200 crore will be from the debt side.

Abhi Jain: And 300 crore would be cash from business?

Prashant Gupta: When we started this year, we have around INR 100 crore in our books from the IPO. So INR 100 crore will be from there and the rest INR 200 crore will be from our own funds.

Abhi Jain: All right. Sir, secondly, I wanted to understand in terms of the long term viability of the business when this subsidy and this scheme, PM Suryodaya Yojana, reaches a very critical mass. So I just want to understand that looking at FY28 and FY29, how will you sustain growth? Where do you see growth coming from? How do you see your business shaping up into? So can you just help me understand, three, four years from now, how will the business look like? Where will growth come from? And how do you save yourself from this becoming a more commoditized business? That is what I wanted to understand.

Yogesh Dua: Actually, we started the solar in year 2008. At that time, the subsidy was not in our mind. We were trying to fulfill the demand which was there, but the product was not there. We developed the product. We given the market the solution it needed in terms of off-grid solar, and we made the network into villages of India, rural areas, and semi-urban areas. And this has been very long time we are working on solar systems. So in this process, we have developed a lot of products which the market needs, and we developed the network where it matters the most and the service network, the sales network, the people we need. So solar is into our roots. So when the subsidy came, it gave us a very good push that what we were doing came up with a good result.

Pawan Kumar Garg: Actually, we started the solar in year 2008. At that time, the subsidy was not in our mind. We were trying to fulfill the demand which was there, but the product was not there. We developed the product. We given the market the solution it needed in terms of off-grid solar, and we made the network into villages of India, rural areas, and semi-urban areas. And this has been very long time we are working on solar systems. So in this process, we have developed a lot of products which the market needs, and we developed the network where it matters the most and the service network, the sales network, the people we need. So solar is into our roots. So when the subsidy came, it gave us a very good push that what we were doing came up with a good result.

Yogesh Dua: And if the subsidy goes away, which we do not expect it will happen very soon, because there are 35 crore houses in India and the government target of PM Suryodaya Yojana was for 1 crore only, which is 50% covered yet. PM Surya Ghar 2.0 is also coming. We do not expect that it will go away very soon. Even if it goes, we have very good roots into solar, and we expect that the people who have come seeing this solar subsidy into the market, they will fade away, and we will sustain, and we should get better market share in this case.

Pawan Kumar Garg: And if the subsidy goes away, which we do not expect it will happen very soon, because there are 35 crore houses in India and the government target of PM Suryodaya Yojana was for 1 crore only, which is 50% covered yet. PM Surya Ghar 2.0 is also coming. We do not expect that it will go away very soon. Even if it goes, we have very good roots into solar, and we expect that the people who have come seeing this solar subsidy into the market, they will fade away, and we will sustain, and we should get better market share in this case.

Pawan Kumar Garg: Sir, the major thing to see is that if India wants to become a developed country by 2047, then the requirement of power is going to be very high. And distributed solar is double efficient, sir, basically. If you see that when in Gujarat and Rajasthan, when power is given to DISCOM for INR 3 and they sell it for INR 6, then they say we are in loss. So distributed solar or rooftop solar is double efficient in this sense because where we are generating, we are consuming there. Distribution loss is zero. ROI is very good, sir. And what we are seeing today, what we used to see five, 10 years ago, the trend of inverters that any house is built, they used to say that send the electrician once and we have to see that the inverter wiring is done properly.

Yogesh Dua: Sir, the major thing to see is that if India wants to become a developed country by 2047, then the requirement of power is going to be very high. And distributed solar is double efficient, sir, basically. If you see that when in Gujarat and Rajasthan, when power is given to DISCOM for INR 3 and they sell it for INR 6, then they say we are in loss. So distributed solar or rooftop solar is double efficient in this sense because where we are generating, we are consuming there. Distribution loss is zero. ROI is very good, sir. And what we are seeing today, what we used to see five, 10 years ago, the trend of inverters that any house is built, they used to say that send the electrician once and we have to see that the inverter wiring is done properly.

Pawan Kumar Garg: Meaning that if I have to install an inverter tomorrow, then the same trend we are seeing today that if a new house is built, they say that send someone to my house once to check the roof, if I have to install solar, then what arrangements do I have to make for it? So the main thing is that there was a lack of awareness, which subsidy has removed. It is not that the customer has got the full benefit in the name of subsidy. The main thing is that awareness has increased a lot from it. And with this awareness coming, the main economics of it are very good. Even if the subsidy ends in future, okay, margins will be less. But the thing is that the money is getting recovered in three to four years.

Yogesh Dua: Meaning that if I have to install an inverter tomorrow, then the same trend we are seeing today that if a new house is built, they say that send someone to my house once to check the roof, if I have to install solar, then what arrangements do I have to make for it? So the main thing is that there was a lack of awareness, which subsidy has removed. It is not that the customer has got the full benefit in the name of subsidy. The main thing is that awareness has increased a lot from it. And with this awareness coming, the main economics of it are very good. Even if the subsidy ends in future, okay, margins will be less. But the thing is that the money is getting recovered in three to four years.

Pawan Kumar Garg: The economics are so good that no one can ignore it in future. So the momentum will remain. The main thing is that whoever has the network to provide services to the villages and provide cost-effective service, his market share will come automatically. There is no need to do anything special in that. Yes, the main thing is to keep the customer happy by providing service. If that is done, then market share will be obtained. There is a need to put effort on service.

Yogesh Dua: The economics are so good that no one can ignore it in future. So the momentum will remain. The main thing is that whoever has the network to provide services to the villages and provide cost-effective service, his market share will come automatically. There is no need to do anything special in that. Yes, the main thing is to keep the customer happy by providing service. If that is done, then market share will be obtained. There is a need to put effort on service.

Abhi Jain: Sir, ये थोड़ा BIS का बताएंगे। जो non-compliance हुए हैं, जो issues हुए हैं, आपको लगता है one time है या इससे आपकी rating पर या उसमें issue हो सकता है आगे जाकर? वो थोड़ा समझाएंगे कि कितना बड़ा risk हो सकता है आगे जाकर?

Pawan Kumar Garg: बिल्कुल। तो मैं explain कर देता हूँ sir. हमारे पास लगभग 500 SKU हैं, जिनमें से आप ये roughly समझने के लिए हम ये मान लेते हैं 250 BIS की category में fall करते हैं और 50% नहीं fall करते हैं। तो जब team हमारे पास आई, तो उन्होंने 500 में से 15 ऐसे identify किए, जो उनके हिसाब से BIS की category में fall करते थे और हमारे हिसाब से नहीं करते थे as per their definition and we explain the same in our reply.

Yogesh Dua: बिल्कुल। तो मैं explain कर देता हूँ sir. हमारे पास लगभग 500 SKU हैं, जिनमें से आप ये roughly समझने के लिए हम ये मान लेते हैं 250 BIS की category में fall करते हैं और 50% नहीं fall करते हैं। तो जब team हमारे पास आई, तो उन्होंने 500 में से 15 ऐसे identify किए, जो उनके हिसाब से BIS की category में fall करते थे और हमारे हिसाब से नहीं करते थे as per their definition and we explain the same in our reply.

Pawan Kumar Garg: अगर आप देखेंगे तो हालांकि उसके बाद हमने उस पर भी BIS ले लिया। BIS लेने का तरीका यह है कि जो हमारे products हैं, वो NABL certified lab से हम products को test करवाएं और उनको दे दें कि यह हमारा testing हो गया है। तो वो हमारे को BIS certification दे देंगे। बस इतना सा करना है उसमें। तो वो हमने करवा लिया है अब उसके बाद। आप देखेंगे अगर हमारे books में देखेंगे ₹500 करोड़ का अगर stock होगा तो उसमें से ₹2 करोड़ का उन्होंने वो item identify की थी, जो कि हमारे पूरे product mix का अगर आप देखेंगे less than 1% वो overall item बनती है। तो इससे आप देख सकते हैं। उन्होंने सारा check किया तो वो 15 products उन्होंने identify किए basically जो उनके हिसाब से ऐसा था। वो number of SKU ज्यादा होने की वजह से ऐसा हुआ। तो यह एक इसकी पूरी story है। आप यह कह सकते हैं।

Yogesh Dua: अगर आप देखेंगे तो हालांकि उसके बाद हमने उस पर भी BIS ले लिया। BIS लेने का तरीका यह है कि जो हमारे products हैं, वो NABL certified lab से हम products को test करवाएं और उनको दे दें कि यह हमारा testing हो गया है। तो वो हमारे को BIS certification दे देंगे। बस इतना सा करना है उसमें। तो वो हमने करवा लिया है अब उसके बाद। आप देखेंगे अगर हमारे books में देखेंगे ₹500 करोड़ का अगर stock होगा तो उसमें से ₹2 करोड़ का उन्होंने वो item identify की थी, जो कि हमारे पूरे product mix का अगर आप देखेंगे less than 1% वो overall item बनती है। तो इससे आप देख सकते हैं। उन्होंने सारा check किया तो वो 15 products उन्होंने identify किए basically जो उनके हिसाब से ऐसा था। वो number of SKU ज्यादा होने की वजह से ऐसा हुआ। तो यह एक इसकी पूरी story है। आप यह कह सकते हैं।

Udit Sehgal: Right, sir. Thank you and all the best. I am sure the number will go ahead. You will.

Abhi Jain: Right, sir. Thank you and all the best. I am sure the number will go ahead. You will.

Pawan Kumar Garg: Okay, thank you.

Yogesh Dua: Okay, thank you.

Operator 2: Thank you. Next question comes on the line of Abhi Sehgal with Singularity AMC. Please go ahead.

Operator: Thank you. Next question comes on the line of Abhi Sehgal with Singularity AMC. Please go ahead.

Abhi Sehgal: Hi sir. Thank you for the opportunity. Just wanted to clarify on something asked in the previous question. You said INR 26 to INR 30 for what including panel, inverter, and battery or is it a BOM?

Pawan Kumar Garg: तो basically जो Mr. Prashant ने यह बताया, तो यह बताया इन्होंने एक distributor price जो हमारे यहां से bill होता है BOM के रूप में, Bill of Material के रूप में, जिसमें आप यह कह सकते हैं कि as an average अगर आप ₹15 panel का पकड़ें, ₹5 हम inverter का पकड़ें और ₹5 हम battery का पकड़ें, तो ऐसे लगभग ₹25 से ₹30 की range में यह हो जाता है। लेकिन यह बहुत ज्यादा vary करता है depending on DCR, non-DCR, battery lithium, lead acid, system on grid, off grid, hybrid, high end system, low end system, features less, features rich product.

Yogesh Dua: तो basically जो Mr. Prashant ने यह बताया, तो यह बताया इन्होंने एक distributor price जो हमारे यहां से bill होता है BOM के रूप में, Bill of Material के रूप में, जिसमें आप यह कह सकते हैं कि as an average अगर आप ₹15 panel का पकड़ें, ₹5 हम inverter का पकड़ें और ₹5 हम battery का पकड़ें, तो ऐसे लगभग ₹25 से ₹30 की range में यह हो जाता है। लेकिन यह बहुत ज्यादा vary करता है depending on DCR, non-DCR, battery lithium, lead acid, system on grid, off grid, hybrid, high end system, low end system, features less, features rich product.

Pawan Kumar Garg: तो depending on various factors ये काफी चीजें vary करती हैं। as an average मतलब जो हमारा revenue mix होकर पूरा summarize होकर आता है, तो वो इन्होंने explain किया आपको। जो हमारे यहां से bill होता है। जिसमें GST भी add होता है।

Yogesh Dua: तो depending on various factors ये काफी चीजें vary करती हैं। as an average मतलब जो हमारा revenue mix होकर पूरा summarize होकर आता है, तो वो इन्होंने explain किया आपको। जो हमारे यहां से bill होता है। जिसमें GST भी add होता है।

Abhi Sehgal: एक तरह से आपके distributor के लिए।

Pawan Kumar Garg: हाँ जी। हमारे यहां से जो distributor को bill होता है, वो उन्होंने बताया आपको।

Yogesh Dua: हाँ जी। हमारे यहां से जो distributor को bill होता है, वो उन्होंने बताया आपको।

Abhi Sehgal: Correct sir. And sir one more question. Pardon my lack of your business. Just want to understand कि आपके business में differentiator क्या है as compared to large solar module player जो अब inverters वगैरह और अपने kits भी launch कर रहे हैं।

Pawan Kumar Garg: देखिए sir, differentiator तो we are solution providing company. मतलब बाकी लोग suppliers हो सकते हैं, हम solution providing हैं। for example, आप किसी के पास जाते हैं और आप कहते हैं कि three, for example, जो भी बड़ा नाम आपके mind में होगा, उनके EPC या distributor के पास जाएंगे तो आप पूछेंगे तीन KVA का system मुझे लेना है, कितने का होगा? तो वो कहेगा ₹1,07,000 या ₹1,70,000 का। हमारे distributor या shopkeeper अगर आप जाएंगे, आप कहेंगे तीन KVA का system कितने का है?

Yogesh Dua: देखिए sir, differentiator तो we are solution providing company. मतलब बाकी लोग suppliers हो सकते हैं, हम solution providing हैं। for example, आप किसी के पास जाते हैं और आप कहते हैं कि three, for example, जो भी बड़ा नाम आपके mind में होगा, उनके EPC या distributor के पास जाएंगे तो आप पूछेंगे तीन KVA का system मुझे लेना है, कितने का होगा? तो वो कहेगा ₹1,07,000 या ₹1,70,000 का। हमारे distributor या shopkeeper अगर आप जाएंगे, आप कहेंगे तीन KVA का system कितने का है?

Pawan Kumar Garg: तो वो आपसे सबसे पहले पूछेगा कि आपका बिजली का bill कितने का आता है। अगर आप कहेंगे ₹2,000 का, वो कहेंगे आपको और आगे four question और होंगे। पर ₹2,000 के base से आपको system दो KVA का लगवाना चाहिए, न कि तीन KVA का। अगर आप कहेंगे ₹5,000 का, तो आपको system पाँच KVA का लगवाएंगे। फिर वो पूछेंगे आपका power cut कितनी देर का है। अगर आपका power cut less than two hours का है तो system different होगा। More than two hours का है तो system different होगा। फिर इस तरह के चार-पाँच question होंगे। छत का area कितना है? छत अपनी है या नहीं है वगैरह वगैरह। तो यह एक differentiator है। Second चीज है services.

Yogesh Dua: तो वो आपसे सबसे पहले पूछेगा कि आपका बिजली का bill कितने का आता है। अगर आप कहेंगे ₹2,000 का, वो कहेंगे आपको और आगे four question और होंगे। पर ₹2,000 के base से आपको system दो KVA का लगवाना चाहिए, न कि तीन KVA का। अगर आप कहेंगे ₹5,000 का, तो आपको system पाँच KVA का लगवाएंगे। फिर वो पूछेंगे आपका power cut कितनी देर का है। अगर आपका power cut less than two hours का है तो system different होगा। More than two hours का है तो system different होगा। फिर इस तरह के चार-पाँच question होंगे। छत का area कितना है? छत अपनी है या नहीं है वगैरह वगैरह। तो यह एक differentiator है। Second चीज है services.

Pawan Kumar Garg: तो हमारे जब distributor के पास कोई जाता है तो वो कहता है एक बड़ी company का नाम लेता है, मुझे उसका system लेना है। तो वो कहते हैं कि system उनका ले लो पर service की हमारी responsibility नहीं है। फिर आप उसी company से बात करना। अगर यहां पर system वगैरह या UTL का लेते हैं तो हमारी तो responsibility है ही है। Company का toll-free number भी है। आप दोनों को पकड़ सकते हैं। तो यह एक differentiator है sir.

Yogesh Dua: तो हमारे जब distributor के पास कोई जाता है तो वो कहता है एक बड़ी company का नाम लेता है, मुझे उसका system लेना है। तो वो कहते हैं कि system उनका ले लो पर service की हमारी responsibility नहीं है। फिर आप उसी company से बात करना। अगर यहां पर system वगैरह या UTL का लेते हैं तो हमारी तो responsibility है ही है। Company का toll-free number भी है। आप दोनों को पकड़ सकते हैं। तो यह एक differentiator है sir.

Abhi Sehgal: Got it, sir. Thank you. That was really helpful, sir. Thank you.

Pawan Kumar Garg: Thank you.

Yogesh Dua: Thank you.

Operator 2: Thank you. Next question comes from the line of Udit Sehgal with Pinpoint X Capital. Please go ahead.

Operator: Thank you. Next question comes from the line of Udit Sehgal with Pinpoint X Capital. Please go ahead.

Udit Sehgal: Good evening, sir, and congratulations on continuing the growth path. Sir, in the Tata Power call, their CEO alluded that right now their rooftop solar business is something around INR 4,000 crores and they see a potential of up to say INR 30,000 crores by 2030. Is there that much of a potential and a growth runway ahead in this sector?

Pawan Kumar Garg: Sir, लगता तो हमें भी है इतना potential है, पर हम थोड़ा सा बोलते नहीं हैं इतना। थोड़ा यह ना लगे कुछ ज्यादा ही बोल रहे हैं। Basically, लगता तो है हमें भी इतना है। जी।

Yogesh Dua: Sir, लगता तो हमें भी है इतना potential है, पर हम थोड़ा सा बोलते नहीं हैं इतना। थोड़ा यह ना लगे कुछ ज्यादा ही बोल रहे हैं। Basically, लगता तो है हमें भी इतना है। जी।

Udit Sehgal: मतलब इतने stuff का scope है आपको लग रहा है आने वाले time में।

Pawan Kumar Garg: देखिए, अगर आप इसके economics को समझें तो कोई reason नहीं है ना कि ना लगवाए कोई basically. 1 करोड़ घरों का target था government का। उसमें से 50 लाख लगा है। तो 35 करोड़ घर हैं। तो potential clearly है।

Yogesh Dua: देखिए, अगर आप इसके economics को समझें तो कोई reason नहीं है ना कि ना लगवाए कोई basically. 1 करोड़ घरों का target था government का। उसमें से 50 लाख लगा है। तो 35 करोड़ घर हैं। तो potential clearly है।

Udit Sehgal: Right. Secondly, sir, on the solar cell front, how are we placed? The second line which we were supposed to, I think you were going to TOPCon line. Right? I think from when do we think that can be installed there?

Pawan Kumar Garg: जी।

Yogesh Dua: जी।

Udit Sehgal: Q1.

Pawan Kumar Garg: हाँ, Q1. हमने Q1 का ही target रखा है sir basically. Coming year मतलब जो भी आएगा basically. After nine months we can say. Nine or eight months, now 7.5 months is remaining basically.

Yogesh Dua: हाँ, Q1. हमने Q1 का ही target रखा है sir basically. Coming year मतलब जो भी आएगा basically. After nine months we can say. Nine or eight months, now 7.5 months is remaining basically.

Udit Sehgal: Okay. Perfect sir. Thank you, sir. We look forward for the same growth path for next two, three years, hopefully.

Pawan Kumar Garg: Thank you, sir.

Yogesh Dua: Thank you, sir.

Operator 2: Thank you. Next question comes from the line of Sagar Shah with Spark Capital. Please go ahead.

Operator: Thank you. Next question comes from the line of Sagar Shah with Spark Capital. Please go ahead.

Sagar Shah: Once again, thank you for the opportunity. Sir, my question was related to your incremental investment in a couple of your companies actually. I am talking of Zayo Cables and Zayo Energy. So हम लोगों ने भी stake 19% से 15% we have increased. So those companies are completely into the backward integration in which Fujiyama is not into. So what are your growth plans for this company? You already highlighted that INR 100 crore CapEx is there for I think Zayo Energy, you told. But what is the growth outlook and what is the overall outlook? आप कैसा सोच रहे हैं इन companies के बारे में उसको integrate करने के लिए अपने business model में in the FY27, FY28?

Pawan Kumar Garg: Next year, sir, इसकी production शुरू होगी। अभी उन्होंने land acquire की है basically, और next two, three months में buildings बननी शुरू होगी। Meanwhile, machines का order करेंगे। तो within one year का ही उन्होंने target रखा है अपना कि हम production शुरू करेंगे। Next financial year में I think हम ज्यादा expect तो नहीं कर सकते, पर INR 400, 500 करोड़ का top line हम expect कर सकते हैं basically। तो यह एक रहेगा। बाकी margins वगैरह तो जैसे company operational होगी तो next year ही guidance दी जा सकती है, sir.

Yogesh Dua: Next year, sir, इसकी production शुरू होगी। अभी उन्होंने land acquire की है basically, और next two, three months में buildings बननी शुरू होगी। Meanwhile, machines का order करेंगे। तो within one year का ही उन्होंने target रखा है अपना कि हम production शुरू करेंगे। Next financial year में I think हम ज्यादा expect तो नहीं कर सकते, पर INR 400, 500 करोड़ का top line हम expect कर सकते हैं basically। तो यह एक रहेगा। बाकी margins वगैरह तो जैसे company operational होगी तो next year ही guidance दी जा सकती है, sir.

Sagar Shah: पर sir, ये products that will be sold along with Fujiyama. Fujiyama के products के साथ आप बेचेंगे कि ये products अलग से बेचे जाएंगे market में, अलग brand name के under से?

Pawan Kumar Garg: नहीं, वो ZYC अपना as a OEM supply करेगी। वो Fujiyama को भी supply करेगी और बाकी companies को भी supply करेगी, solar panel की companies को।

Yogesh Dua: नहीं, वो ZYC अपना as a OEM supply करेगी। वो Fujiyama को भी supply करेगी और बाकी companies को भी supply करेगी, solar panel की companies को।

Sagar Shah: Okay. Thank you so much.

Pawan Kumar Garg: Thank you.

Yogesh Dua: Thank you.

Operator 2: Thank you. Next question comes from the line of Amit Kumar with Determined Investments. Please go ahead.

Operator: Thank you. Next question comes from the line of Amit Kumar with Determined Investments. Please go ahead.

Amit Kumar: Thank you so much for the opportunity, sir, and congratulations on an exceptional growth momentum. My first question, this lead-acid battery plant जहाँ पे थोड़ा fire हुआ है। Q2, Q3 anyway are seasonally weak quarters, demand वैसे भी थोड़ी कम रहती है. But Q4 is typically the high quarter. By Q4 shall we expect that this factory would be back online? When are you expecting this to restart?

Pawan Kumar Garg: यह तो restart होने में sir, time लग जाएगा क्योंकि insurance की activities के बाद ही कुछ कर सकते हैं। Meanwhile, एक और हमारे एक running plant पर बातचीत चल रही है जो कि I think next one month तक mature हो जाएगी। जो कि हम rented लेंगे basically चलती हुई company को। तो उसको immediately-

Yogesh Dua: यह तो restart होने में sir, time लग जाएगा क्योंकि insurance की activities के बाद ही कुछ कर सकते हैं। Meanwhile, एक और हमारे एक running plant पर बातचीत चल रही है जो कि I think next one month तक mature हो जाएगी। जो कि हम rented लेंगे basically चलती हुई company को। तो उसको immediately-

Amit Kumar: तो closing contract होगा कि आप acquire ही कर लेंगे, plant acquire कर लेंगे?

Pawan Kumar Garg: नहीं, उसको हम rented ही लेंगे क्योंकि lead-acid battery का business थोड़ा downward है basically। तो उसको हम rent पे ही लेंगे।

Yogesh Dua: नहीं, उसको हम rented ही लेंगे क्योंकि lead-acid battery का business थोड़ा downward है basically। तो उसको हम rent पे ही लेंगे।

Amit Kumar: अच्छा, lease पे basically you will, exclusive lease of sorts.

Pawan Kumar Garg: Acquisition की तो काफी possibilities हैं market में, but उसमें हम ज्यादा पैसा लगाना नहीं चाह रहे basically क्योंकि-

Yogesh Dua: Acquisition की तो काफी possibilities हैं market में, but उसमें हम ज्यादा पैसा लगाना नहीं चाह रहे basically क्योंकि-

Amit Kumar: I am saying that for this factory this would be an exclusive lease. It will work exclusively for you basically.

Pawan Kumar Garg: हाँ, हम ही operate करेंगे sir उसको rent पे लेकर पूरी capacity.

Yogesh Dua: हाँ, हम ही operate करेंगे sir उसको rent पे लेकर पूरी capacity.

Amit Kumar: Understood, sir. That is much appreciated. Sir, just a follow-up on what the previous participant was also talking about. At least this off-grid, on-grid और hybrid में थोड़ा सा अगर breakup, if it is possible to sort of share. The only reason why we are basically asking is that see, till last year off-grid would have been or was the major part of your business. Now that you have started the DCR cells, obviously, you can go more aggressively in the on-grid and hybrid markets. We are just trying to understand this kind of 100% growth that you are basically delivering. Is this entirely coming because of your entry and expansion into on-grid and hybrid systems? Or your off-grid system, is there still growth coming from it basically?

Amit Kumar: If you can just clarify with respect to this quarter also, you have gone from INR 600 crore to INR 1,300 plus crore in terms of sales. Lastly, I presume that that INR 600 crore would be entirely on the back of your off-grid business. In off-grid, roughly, is growth coming there also? What is the growth trajectory? If we can get a little breakup between on-grid, off-grid, and hybrid for this quarter, that will be very helpful.

Pawan Kumar Garg: Okay, sir. Basically, the main thing is that wherever we focus, growth happens there. Now look at the focus, at this time PM-KUSUM is running, so if more outcome comes in less effort, then the focus should be there. Right now the main focus is here on the on-grid side. If you see, it is not that the off-grid is not growing. Yes, it is not growing at the same speed as on-grid is growing right now.

Yogesh Dua: Okay, sir. Basically, the main thing is that wherever we focus, growth happens there. Now look at the focus, at this time PM-KUSUM is running, so if more outcome comes in less effort, then the focus should be there. Right now the main focus is here on the on-grid side. If you see, it is not that the off-grid is not growing. Yes, it is not growing at the same speed as on-grid is growing right now.

Amit Kumar: Obviously, because on-grid and hybrid are completely new, on a yearly basis, they are relatively new systems for the company. This is what I am basically trying to understand, that the INR 600 crore off-grid of last year, mostly, majority, 90%, 95% would be off-grid only out of that. That has also still grown for you. I mean, obviously majority.

Pawan Kumar Garg: There was a reason for that, sir, which was off-grid, because we were not able to participate in on-grid because we did not have DCR.

Yogesh Dua: There was a reason for that, sir, which was off-grid, because we were not able to participate in on-grid because we did not have DCR.

Amit Kumar: Okay.

Pawan Kumar Garg: Yes. Now that we have our own DCR, we are able to participate properly there. So definitely, now the growth is more in on-grid. It is also more in off-grid definitely because there we are somewhere at number one in off-grid. So there is growth there too.

Yogesh Dua: Yes. Now that we have our own DCR, we are able to participate properly there. So definitely, now the growth is more in on-grid. It is also more in off-grid definitely because there we are somewhere at number one in off-grid. So there is growth there too.

Amit Kumar: But sir, whichever rural market you are going to, there will be demand for off-grid also there, I think.

Pawan Kumar Garg: See, sir, in the village, for whom his work is done with INR 50,000 and a battery is also included in it, then that person will spend only INR 50,000. He will not go for on-grid. In INR 50,000, one kW system, one non-DCR panel and battery, all this goes to the end customer and gets installed. And if his power goes out for 2 to 3 hours, then it is also working. So that segment is going to be completely different. So that growth is on its own separate spectrum. But the major growth that has come this quarter, if you see, that is because of on-grid.

Yogesh Dua: See, sir, in the village, for whom his work is done with INR 50,000 and a battery is also included in it, then that person will spend only INR 50,000. He will not go for on-grid. In INR 50,000, one kW system, one non-DCR panel and battery, all this goes to the end customer and gets installed. And if his power goes out for 2 to 3 hours, then it is also working. So that segment is going to be completely different. So that growth is on its own separate spectrum. But the major growth that has come this quarter, if you see, that is because of on-grid.

Amit Kumar: Understood. Thank you. Much appreciated, sir.

Pawan Kumar Garg: Welcome.

Yogesh Dua: Welcome.

Operator 2: Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I now hand the conference over to Mr. Pawan Kumar Garg for closing comments.

Operator: Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I now hand the conference over to Mr. Pawan Kumar Garg for closing comments.

Pawan Kumar Garg: Thank you once again for joining us today and for your continued interest in Fujiyama. We appreciate the confidence you place in our company. If you have any additional questions, please feel free to reach out to our investor relationship advisors, Churchgate Partners, and we will be glad to assist you. Thank you very much for your support. Thank you. Thank you very much.

Operator 2: Thank you. On behalf of Fujiyama Power Systems Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Operator: Thank you. On behalf of Fujiyama Power Systems Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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Q1 2027 Fujiyama Power Systems Ltd Earnings Call

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