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Operator: Ladies and gentlemen, good day and welcome to Waaree Renewable Technologies Limited Q2 and H1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prathamesh Parag from MUFG Intime India Private Limited. Thank you, and over to you, sir.
Prathamesh Parag: Thank you, Anna. Good afternoon, ladies and gentlemen. I welcome you all to the Q2 and H1 FY27 earnings conference call of Waaree Renewable Technologies Limited. Today on the call we have from the management Mr Manmohan Sharma, Chief Financial Officer, along with the other management team members. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Now, without further ado, I would like to hand over the call to Mr Manmohan Sharma for his opening remarks, and then we will open the floor for question and answers. Thank you, and over to you, sir.
Manmohan Sharma: Thank you, Prathamesh. Good afternoon, everyone, and a warm welcome to all of you joining the earnings conference call of Waaree Renewable Technologies Limited to discuss our financial performance for Q2 and H1 FY27. I hope you have had the opportunity to go through our financial results and investor presentation, which have been made available on the stock exchanges and on the company's website. Before I begin, I would like to sincerely thank all our stakeholders for their continued trust and support. Your confidence in our business, our execution capabilities, and our long-term strategy continue to be a strong source of encouragement for us. We remain committed to building on this trust through disciplined execution, responsible growth, and a clear focus on long-term value creation. Now let me begin with the financial performance for the quarter.
Manmohan Sharma: During Q2 FY27, our revenue from operations stood at INR 1,057.84 crores, reflecting growth of 36.53% compared with the same quarter of last year. EBITDA for the quarter stood at INR 159.98 crores with an EBITDA margin of 15.12%. Profit after tax for the quarter stood at INR 81.48 crores. For H1 FY27, our revenue from operations stood at INR 1,982.09 crores, marking a growth of 43.84% over H1 FY26. EBITDA for the first half stood at INR 333.46 crores with an EBITDA margin of 16.82%. Profit after tax for the period is INR 200.44 crores. On operational front, we executed 456 MWp of EPC projects in the Q2 FY27. That takes our total solar EPC execution for the H1 FY27 to 1,345 MWp. Further, our order book has strengthened during the quarter with the addition of 1.7 GWp of new orders.
Manmohan Sharma: Moving to our unexecuted order book. As of 30 September 2026, our consolidated unexecuted order book stands at more than INR 5,500 crores. Of this, more than INR 3,300 crores from EPC of solar and BESS, and balance of more than INR 2,012 crores from T&D vertical. This gives us healthy visibility for the coming quarters. I also want to highlight the growth in our other revenue segments, which are now meaningfully contributing to our revenue. Our operational IPP portfolio stands at 82.82 MWp, and O&M portfolio has reached to 1.5 GWp. These businesses strengthens our recurring revenue base and help us build long-term relationships with our customers. Our capability in T&D segment have also continued to strengthen. We are expanding our manufacturing capabilities through the additional facility of at Azam Nagar, with a capacity of 100,000 metric ton.
Manmohan Sharma: This further supports our ability to participate in growing requirement for transmission and distribution infrastructure. Our capability across EPC of solar, BESS, and T&D, together with IPP and O&M, allows us to participate in a wider part of the energy value chain. With this, WRTL is evolving from a pure solar EPC player into a broader energy transition EPC platform. Let me now turn to the broader industry environment, where momentum across India's renewable energy sector remains strong, especially in solar. As of 30 September 2026, India's installed renewable energy capacity stood at around 299 gigawatt. The solar has contributed around 171 gigawatt. Within solar itself, ground-mounted projects contributed more than 125 gigawatt. Grid-connected around 33 gigawatt, and hybrid and off-grid together around 12 gigawatt.
Manmohan Sharma: The government has also recently approved the PM Surya Sarovar Yojana, which targets 5 gigawatt of floating solar with co-located energy storage of at least 2 hours. With this, further enhance the segment of floating solar and energy storage. As solar becomes a larger part of the grid, battery storage is becoming essential to deliver that power when it is needed. The CEA estimates India's battery storage requirement at around 208 gigawatt hours by 2030, and the project pipeline is building up with this. As of May 2026, the BESS projects above 1 megawatt hour stand at around 144 gigawatt hours, of which around 7.5 gigawatt hours already commissioned, another 42 gigawatt hours under construction, and 39 gigawatt hours has been awarded, and another 55 gigawatt on tender stage.
Manmohan Sharma: These clearly highlight the demands to our BESS is growing in the country, which is clear opportunity for the company to offer solar and BESS EPC solutions. Furthermore, the Union Cabinet recently approved the Green Energy Corridor Phase 3 scheme with a total outlay of around INR 1.86 lakh crores. The scheme aims to strengthen intrastate transmission infrastructure for the evacuation of up to 135 gigawatt of renewable energy and the deployment of 50 gigawatt hours of battery energy storage by FY 2032 and 2033. This highlights the growing requirement of renewable, BESS and stronger T&D network to meet the demand of growing electricity to non-fossil fuel. We see a strong opportunity to leverage our execution capability, deepen our presence across these segments, and convert the growing projects demand into sustained growth. Looking ahead, we remain very positive about the opportunity across renewable energy, BESS and T&D.
Manmohan Sharma: The sector continues to benefit from favorable policy support, rising clean energy demand, growing storage requirement, and a clean long-term push towards energy transition. In this environment, Waaree Renewable Technologies is strongly positioned. We have a proven execution track record, a diversified portfolio across the energy value chain, and the capability to deliver multi-gigawatt projects. This allows us to capture the growing demand, create lasting value for our stakeholders, and contribute meaningfully to the India's vision of clean energy. Thank you once again for your continued support. We will now be happy to take your questions.
Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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 is from the line of Ninad Satpurkar from Incred Capital. Please go ahead.
Ninad Satpurkar: Hi, sir. Good afternoon. My first question is on the solar execution. Sir, last year and in the previous quarter, we had executed around 922 MWp and around 889 MWp of solar projects respectively. In the current quarter, however, our execution has come down widely to around 456 MWp. Any particular reason for this gap down? On the same lines, how much do you expect to execute during the current financial year? Since last four years, we have been growing at around a CAGR of 100% plus. Current year, what kind of growth are we looking at?
Manmohan Sharma: Yeah, thanks. First of all, we have executed, in H1, we have done significantly, putting both quarters together. For this current quarter, definitely we have not executed as much as project or revenue as compared to previous quarter. But, during the current quarter, as I mentioned earlier, we have already won around 1.7 GW worth of orders during this quarter. By that, my unexecuted order book for the EPC plus BESS remains INR 3,300 crore by end of this quarter. Coming back to the revenue, these projects definitely is likely to be executed from now, three to four quarter. This will come to a revenue in the coming quarter, plus the order book, which we are likely to book during the Q3 and Q4, that will also get converted into the revenue during the financial year.
Ninad Satpurkar: I was asking, why was the execution slower? Was it due to supply chain constraint, or was it due to any other reason, like lack of manpower, or what was the reason for such a fall in the execution?
Manmohan Sharma: So, just to tell that we are doing the EPC and the land and connectivity remains in the scope of the developer. Sometime, for particular quarter or maybe for the particular orders, the land and connectivity may not be ready at the developer end. So that is one of the reason, like the orders which we have earlier booked could not book off in the last previous quarter. However, during the current quarter, because of some land portion handover delay, this has been a case in this quarter. But this is one of the case which we have faced during this quarter only. Otherwise, all the planning, the way we discuss with the customer and execute the projects, remain in line with our expectation and the developer expectations.
Ninad Satpurkar: Okay. So the delay was on the customer end and not part of anything that is on our side?
Manmohan Sharma: Yeah, yeah.
Ninad Satpurkar: Okay. Second question on the margins of the T&D business. The T&D business has grown meaningfully in the current quarter. Of course, this is the first quarter of full consolidation. But the margins, however, if I calculate on an arbitrary basis on quarter on quarter, there has been some compression. Am I looking at it correctly? If yes, then why is the case so?
Manmohan Sharma: So margin with respect to T&D business is little lower than what we see in the EPC business, in our case. But the margin profile with the scale of operation and the efficiency and the operational excellence which will synergize with Waaree Renewables and the Associated Power Structures. Both things put together, in the coming quarter, I think we will be seeing some visibility or the improvement in the margin profile of the subsidiary. That is likely to come in the coming quarter.
Ninad Satpurkar: Okay. Understood. One last part that I wanted to understand. Whenever these EPC projects come to us, these land and connectivity is already been secured by the customer, right? After that, the EPC contract is awarded. So why these kind of delays are seen?
Manmohan Sharma: See, each project has a different reason and different state and different land profile. So all cannot be categorized in the same way. However, you rightly said that when the developer awards us the EPC contract, he secures the land and connectivity. In some of the larger project, if you see, land is also gradually procured by the developer. So these are all mixture of various things, various combination of various aspect while executing the project.
Ninad Satpurkar: Okay. Sir, lastly, if I can squeeze one more.
Operator: I'm sorry to interrupt you, Mr. Ninad.
Ninad Satpurkar: Just one follow-up.
Operator: If you have follow-up questions, please rejoin the queue.
Ninad Satpurkar: Okay.
Operator: The next question is from the line of Disha from Sapphire Capital. Please go ahead.
[Analyst] (Sapphire Capital): Hello. Am I audible?
Operator: Yes, you are audible, ma'am.
[Analyst] (Sapphire Capital): Yes. Thank you so much, sir, for this opportunity. Couple of questions. You alluded to the fact that the execution was lower because of the land and connectivity issues. Are we also seeing any challenges in terms of grid issues or any issues because of the T&D slowdown, because of that, the execution is slowing down? What sort of overall execution are we targeting for this entire year? Also, sir, just in terms of your realization also, there has been a drop. So what sort of realizations should we build in for the entire year?
Manmohan Sharma: Just to tell you the total scenario about the renewable energy with respect to solar. As I mentioned earlier, the country has already installed around 300 gigawatts of renewable energy, out of which 171 is coming from the solar alone. To be more specific, last year's installation was around 44 gigawatts, and by H1 we have already achieved more than 20. So there is no slowdown as such in this sector. The order book which we are carrying as of now, and the order pipeline which we are following is more than 30, 35 gigawatts, domestic and internationally. All things put together, the revenue number likely to achieve, as I said in the previous question, it is the combination of the existing order book plus the orders which we are likely to receive during the coming quarter will translate into revenue in coming quarters.
[Analyst] (Sapphire Capital): Right. But any number that you are targeting for this year for execution?
Manmohan Sharma: So execution, if you are saying historically also, we have done significantly. Our revenue last year was INR 3,300 crore. By this consolidated H1, we have already achieved INR 1,982 crore. Putting the order book of INR 5,500 crore, which we carry as of now, and they are likely to be converted in the next 3 to 4 quarters. So this will translate to revenue in the coming quarters.
[Analyst] (Sapphire Capital): Okay. And sir, this APSPL, the revenue contribution from that has been significant. What sort of overall contribution are we looking from this T&D business for this year, and how will the growth look like going ahead?
Manmohan Sharma: So, as you know, there is a lot of CapEx is likely to spend for the creation of transmission distribution infrastructure.
Manmohan Sharma: So they also have around more than INR 20,000 crore worth of order pipeline, which the company is following. Last year, they have achieved around INR 1,995 crore, means close to INR 2,000 crore they have already achieved in the previous year. Up to now also, it is in line with the budget or in line with the guidance, whatever they internally set. So this business having INR 2,002 crore of order book as of Q2, will also start contributing to the revenue number in our Waaree Renewable Technologies in coming quarters.
[Analyst] (Sapphire Capital): Right. We have seen interest and depreciation has gone up significantly. So what sort of run rate going ahead do we expect? Do we expect any further increase or this is the number that should stabilize going ahead?
Manmohan Sharma: Yeah. This interest and depreciation number will stabilize because this is a depreciation, et cetera, is charged as per the accounting standard. Interest, we have taken the securitization financing, so this will remain the constant or maybe on interest front, we will try to reduce as much as possible in the coming quarters.
[Analyst] (Sapphire Capital): Okay. You mentioned the T&D business is having a pipeline of around INR 20,000 crore. What is the bid-to-win ratio we are looking at, and what sort of EBITDA margins do these projects have?
Manmohan Sharma: This they depend upon because when you are creating a transmission infrastructure, so many bids are coming up for the creation. Definitely when it is lower or it is awarded to L1, we will try to grab as much business we can do from this pipeline.
[Analyst] (Sapphire Capital): And margins?
Manmohan Sharma: Margin profile as of now is around 9% to 10%. That is going to improve it, because that we should be improving in the coming quarters.
[Analyst] (Sapphire Capital): Sir, for this quarter, our mix has been around 60/40%, right? For this entire year, how should we look at the mix? Because T&D business has lower margins, right? If that would be a major proportion, then our margins will significantly go up.
Manmohan Sharma: No. This solar EPC also should be having a better portion or greater portion, because the order book which we are carrying as of now, INR 3,300 crore, and that will get translated into the revenue in the next two quarters. That should also be the contributing factor for the overall revenue by the year-end.
[Analyst] (Sapphire Capital): So, sir, what sort of overall margins are you looking at for the entire-
Operator: I am sorry to interrupt, Disha.
[Analyst] (Sapphire Capital): Yeah.
Operator: If you have follow-up questions, please rejoin the queue.
[Analyst] (Sapphire Capital): Yes. Thanks.
Operator: The next question is from the line of Saksham Tyagi from Destilador Advising. Please go ahead.
Saksham Tyagi: Am I audible?
Manmohan Sharma: Yes.
Saksham Tyagi: Okay. First of all, thanks for the opportunity. I have got three questions, and my first question is on the margin side. Hello, sir. Despite the 36.5% year-on-year revenue growth in Q2, the profitability has weakened, with EBITDA margin declining to approximately 15.1% and PAT falling approximately around 30%. Could you please help us understand the key drivers of the margin compression? Should we expect the standalone solar EPC business to sustain its historical EBITDA margin of around 19%? Does management remain confident of achieving its earlier FY27 consolidated EBITDA margin objective of approximately 15%? That would be my first question, sir.
Manmohan Sharma: The margin profile we discussed many times, actually. This solar EPC is giving better margin as compared to T&D. The solar, the way the orders are in hand and we are likely to execute, we should be maintaining our margin. More than 15% should be maintaining our margin. That is what we estimate at this stage. What is your next question, sir?
Saksham Tyagi: Okay, my second question is related to the acquisition of APSPL, sir. With approximately 75% of the INR 1,225 crore APSPL acquisition funded through debt, the consolidated finance costs have increased sharply from INR 9.59 crore in Q1 to INR 36.83 crore in Q2, and the depreciation and amortization has also increased to INR 26.97 crore from INR 5.78 crore in Q1. How much of this increase in finance cost and depreciation is directly attributable to the acquisition? By when do you expect the APSPL's earning contribution and operational synergies to adequately offset the additional financing and integration costs?
Manmohan Sharma: Yeah, that is a very good question, actually. The depreciation is mostly contributed on account of the acquisition because that is coming from there. With respect to the finance cost, as we acquired this by debt funding, that will remain. However, going forward, as you rightly said, the meaningful contribution by Associated Power Structures, that will contribute so that whatever the loan, et cetera, we have taken will be taken care actually.
Saksham Tyagi: Okay, understood, sir. My last question is related to the order book, sir. In the previous con call, the management indicated that the INR 5,300 crore order book would be executed over the next 12 to 18 months, and that the company had sufficient execution capacity to scale beyond FY26 revenue of approximately INR 3,300 crore. With H1 FY27 revenue at INR 1,982 crore, could you please update us on the execution progress so far, including the physical solar EPC execution in MWp and the value of orders executed separately by the solar EPC business and APSPL?
Manmohan Sharma: We have already said in our opening remarks that we have already executed around 1.3 gigawatt of orders during this H1. The execution will be progressively increased in the coming quarters. The order book, which we mentioned that is INR 3,300 crore as of Q2. Out of that, we have recently also won more than 1.7 gigawatt worth of orders. Both the things are, this existing order book plus the orders which are likely to close during Q3 and thereafter, will start contributing meaningfully to the solar EPC. Not only for the solar EPC, but for also T&D also. Whatever order we win during this quarter, that will also start contributing to the FY27 numbers.
Saksham Tyagi: Okay, sir. Thanks, sir. Thank you.
Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to 2 per participant. The next question is from the line of Khushi Aggarwal from JRK Stock Broking. Please go ahead.
Khushi Aggarwal: Hello, am I audible?
Manmohan Sharma: Yes.
Khushi Aggarwal: Okay. So my first question would be, given the mix that we have this quarter, going forward, how do you-
Manmohan Sharma: Now you are not audible. Sorry, you are not audible now.
Khushi Aggarwal: Hello.
Manmohan Sharma: Yeah, please go ahead.
Khushi Aggarwal: Yeah. Going forward, how does the management see the relative growth and profitability contribution of solar EPC versus T&D?
Operator: Ma'am, please bring your mic closer. You are not audible well.
Khushi Aggarwal: Hello, am I audible now?
Operator: Yes, ma'am.
Manmohan Sharma: Yes, please.
Khushi Aggarwal: Yes. Actually, given the mix that we have seen this quarter, I wanted to know, going forward, how does the management see the relative growth and profitability contribution of solar EPC versus T&D? Should investors expect solar EPC to remain the core earnings driver, or will the consolidated business increasingly be driven by T&D?
Manmohan Sharma: Yes. So you rightly said, the solar EPC will be the key driver for the growth of this company, because that will be further supported to the T&D. That I will come later. But as you can see that we have around 25 gigawatt of order pipeline, which we are following domestically. Around 9 gigawatt of internationally. So we are actively participating or we are actively expanding our solar EPC that will include BESS or maybe other vertical where we have opportunity to do the EPC work. So that will continue to be the focus area for the company. Further, that will be supported by the T&D. So T&D is also a good opportunity where the infrastructure is to be created for the evacuation of power to the grids, et cetera. So the solar EPC further will be supported by the T&D.
Manmohan Sharma: That will create the good value for the company.
Khushi Aggarwal: Okay, so we can still expect solar EPC to be the major driver.
Manmohan Sharma: Yes.
Khushi Aggarwal: Okay. Could you please elaborate on what are the revenue growth expectations for the standalone solar EPC business for FY27 and the execution run rate investors should expect over the next 2 to 3 quarters?
Manmohan Sharma: As I stated that we have the unexecuted order book of around INR 3,200 crore revenue, which is an order book which I have already mentioned. This is likely to be executed in the next 3 to 4 quarters. There are likely active discussion with the customers on a bilateral basis for the domestic pipeline which we are following. We are likely to receive order out of the pipeline, which we are following in the coming quarter. Both put together, there is a revenue visibility for this company in terms of solar EPC and BESS and the order book the T&D business is carrying. Both put together is giving a long-term visibility for the company.
Khushi Aggarwal: Okay. Noted. Thank you.
Operator: Thank you. The next question is from the line of Makarand Bosikar from Nirmiti Investment Advisors LLP. Please go ahead.
Makarand Bosikar: Hi. Hello. Am I audible?
Operator: Yes, sir. You are audible.
Makarand Bosikar: I just wanted to understand, sir, that in the first question, sir, answering to the first question, you mentioned that some of the orders were delayed because of some delay at the developer's end. I just wanted to understand the quantum of those orders.
Manmohan Sharma: No, it is difficult to actually quantify and provide the order by detail or the core. This came from the discussion with the customer where the land handover, maybe all these are only by discussion with the customer, got some delay in the handing over the land, et cetera. Those are the factors which has contributed in this quarter. However, now with the order book which we carry and the order which we have received, that is going to execute in the next quarters.
Makarand Bosikar: Okay. I just wanted to understand that since the solar EPC segment has seen the almost 40% degrowth in revenue terms. If excluding those delays, if those orders had not been delayed, should we have expected some revenue growth here or the solar EPC business seems to have plateaued a little bit?
Manmohan Sharma: Yeah, definitely. We also wanted to execute as many orders which we are carrying as of now. That is always the policy or the preference of any of the industry there to execute as many orders or deliver as many items whom they are either manufacturing or providing services. In a similar way, we are also doing the same exercise. Whatever the orders which we are carrying, that will get into revenue in the next quarter.
Makarand Bosikar: Okay, sir. Also, I just wanted to understand the bookkeeping questions. Our other expenses and employee benefit expenses have seemed to have grown multifold. Is it just on account of the acquisition part or is there any other line item driving this material growth in these two expense line items?
Manmohan Sharma: This is in line with the clubbing both the or consolidated both the company together in line with our budgeted estimates. Wherever there is an opportunity to the cost optimized reduction, that is the continuous exercise which we are carried out on a monthly basis or maybe on a daily basis we are doing that. This is in line with our expectations because the growth, salary, et cetera, that is to be the part of our cost estimates only.
Makarand Bosikar: Okay. Thank you.
Operator: Thank you. A reminder to all participants, you can press star and one to ask questions. The next question is from the line of Soumya Raghuwanshi from Nirva Securities. Please go ahead.
Soumya Raghuwanshi: Thank you so much for the opportunity. Sir, the company has won sizable BESS orders during the year. How do you see the standalone BESS opportunity evolving and what differentiates Waaree's positioning in this market?
Manmohan Sharma: Yes. See, just to give you the overview of BESS, because the new order which we are receiving or along with the existing order, wherever this solar plant has been installed, now we are getting lot of inquiry about adding this BESS also in the existing plants. Plus the new orders which we are receiving, that also we are receiving with the BESS. So this BESS has also opened up a new opportunity for the company, BESS EPC, where we can provide the EPC services for the existing plant as well as for the new orders.
Soumya Raghuwanshi: Okay, sir. Got it. Sir, my next question is on the margin and risk profile of BESS EPC projects relative to conventional solar EPC projects, particularly around technology, warranty, and execution considerations.
Manmohan Sharma: What is the question in this?
Manmohan Sharma: BESS EPC and solar EPC. Margin profile, you are asking?
Soumya Raghuwanshi: Yes. Margin and risk profile.
Manmohan Sharma: Yeah. So, with respect to solar EPC or BESS EPC, because we need to see that how you are asking only the solar BESS EPC or maybe along with the solar orders which you have awarded to us. So this depends upon the project or the site where we need to execute the BESS EPC. But in our case, while providing the customer the quotation or the margin, et cetera, we keep the certain margin as a threshold for our project, and then probably we will try to expand it by efficiency and operational efficiency.
Soumya Raghuwanshi: All right, sir. So on a different note, how has the competitive intensity in utility scale EPC bidding evolved over the last few quarters, and are you witnessing any changes in pricing discipline across the industry?
Manmohan Sharma: No. We are getting more and more order or maybe order pipeline, which you are saying, from the utility scale only. And this is a very growing market for the utility scale. So majority of the orders which we are carrying is of the utility scale. Some of them are maybe for C&I, but majority is from the utility scale.
Soumya Raghuwanshi: Okay, sir. Thank you so much, sir. That is it from my side.
Operator: Thank you. The next question is from the line of Sia Raghuwanshi from SMSB Capital. Please go ahead.
Sia Raghuwanshi: Hello. Am I audible?
Operator: Ma'am, your voice is a bit crackling.
Sia Raghuwanshi: Hello. Am I audible now? Please.
Operator: No, ma'am, you are not audible. Your voice is breaking.
Operator: Can you use your handset?
Sia Raghuwanshi: Yeah, just a second.
Operator: Yeah, sure.
Sia Raghuwanshi: Yeah. Is it now better?
Operator: Your voice is a little better now. Yeah, sure. Please go ahead.
Sia Raghuwanshi: Yeah. So sir, my question was, with APSPL now consolidated, how should investors think about the revenue mix between the solar EPC BESS and T&D over the next 2, 3 years? And what proportion of future growth do you expect to be driven by the T&D business?
Manmohan Sharma: So this business, I would say that both the business are expanding and the requirement of the solar power, you need to have solar EPC, and for the evacuation of power, you need to have T&D. That is also for the solar as well as other form of energy. So both the sectors where we are placed have been continued to see the expansion. A lot of people are putting money or developers are doing this project maybe for the utility scale project or maybe for the captive requirement. So, what we are seeing the next at least 2 to 3 years, there is a good amount of progress which is likely to happen and the installation is likely to be in a good form like we had did 44 gigawatts last year and H1 also we have achieved 20 gigawatts.
Manmohan Sharma: So both the sector, the growth is likely to be there in the next 2 to 3 years.
Sia Raghuwanshi: Okay. Got it. And sir, as a transmission project scale-up within the portfolio, how should the investors think about the impact on the consolidated margins, given the structurally different profitability profile of T&D versus solar EPC?
Manmohan Sharma: It is difficult to give any quarterly updates or maybe what is the likely for the next quarter or maybe thereafter. Because these are two different mixed product or maybe the solar is different than the T&D's because both has a revenue cycle, and there's a timeline where the project is to be completed. So by quarterly or maybe by yearly, it is difficult to give any kind of a number that how much is from the T&D or how much is from the solar EPC. But definitely, as I said earlier, both the sectors or both the verticals are going to grow in the near future or maybe few years from now.
Sia Raghuwanshi: Okay, sir. Got it. And sir, if you could just elaborate on opportunities emerging from offering integrated solutions across generation storage and power evacuation infra. And whether this is helping improve customer engagement and project wins?
Manmohan Sharma: Yes, definitely. Because whenever we are discussing with the customer, now there are a lot of inquiry or a lot of projects are offered to us, along with the BESS also. When you are doing only solar project now, maybe the regulatory requirement or the compulsion or maybe the grid stability, you need to have the BESS also. So it is a good opportunity for Waaree Renewables to get orders from the solar plus BESS put together. If you see that our O&M also started contributing because we have a 1.5 gigawatt of O&M portfolio. So the project which we are completing have already embedded revenue, as you say, O&M contracts also for next few years. As and when we are completing the project, we have an opportunity to get O&M of that.
Sia Raghuwanshi: Okay, sir. Got it. Thank you so much, sir. That's all from my side. All the best for future.
Operator: Thank you. You can press star and 1 to ask more questions. The next question is from the line of Johan Kinusara from Asian Broking. Please go ahead. Mr. Johan, you're not audible. As there is no response from the participant line, we move on to the next question. The next question is from the line of Sohani Singh from ROS Capital. Please go ahead.
Sohani Singh: Hi, sir. Good afternoon. I just had a couple of questions. The balance sheet has expanded significantly following the APSPL acquisition, and also the growth in business here. So how should investors think about working capital requirements and cash flow conversion going forward?
Manmohan Sharma: See, as far as this Waaree Renewables EPC business is there is a working capital requirement in terms of non-fund based limits. That has been made through various bank, et cetera. This Associated Power Structures also have the similar kind of EPC business, where there are more and more working capital limits are being used. Yes.
Sohani Singh: Okay, sir. If you could discuss the key drivers behind the movement for during FY27, whether for any additional-
Operator: Hello, ma'am, you are not audible. Can you please repeat your question?
Sohani Singh: Can you hear me? Hello.
Operator: Yes, ma'am, we can hear you.
Sohani Singh: Yes. So, it would be great if you could discuss the key drivers behind the movement in operating cash flows during H1 FY27, and whether any of these were transitional in nature.
Manmohan Sharma: Any of?
Sohani Singh: Transition.
Sohani Singh: Transition. Key drivers or transition. So the movement is basically is the operational cash flow, which you have seen. Apart from that, there is a acquisition financing and that we have done through the banks. So that is the movement of the cash flow, during the H1.
Sohani Singh: Okay, sir. That helps. As the project sizes continue to increase, do you foresee any constraints around bank guarantees, performance securities, or non-fund based limits, which could influence future bidding capacity?
Manmohan Sharma: No. As of now, we have not seen this kind of thing. We are not facing any kind of constraint with respect to the banks. We have limits, et cetera, available for us to go for the new projects or maybe for the bidding to the new projects. All these are available with us.
Sohani Singh: Okay, sir. That helps. Thank you so much.
Operator: Thank you. The next question is from the line of Khushi Aggarwal from JRK Stock Broking. Please go ahead.
Khushi Aggarwal: Hello, am I audible, sir?
Operator: Yes, you are audible.
Khushi Aggarwal: Yes, you are audible. Okay. One question that I had is, what is the current customer concentration in the solar EPC business, and how much of the order book is attributable to repeat customers?
Manmohan Sharma: Majority of the orders are based on the bilateral discussion. Maybe we had worked with one of the groups, so other group companies, maybe of the same, they are also awarding the contract. Based on the quality, the way we deliver the project and complete them on timely, these are the contributing factor to get repeat order from the customers.
Operator: Ma'am, you are not audible.
Khushi Aggarwal: Actually, I could not hear the answer about the repeat customers.
Operator: Ma'am, there is a lot of disturbance from your surroundings.
Khushi Aggarwal: Yeah. Actually, I could not hear the answer about the repeat customers.
Khushi Aggarwal: Repeat customer probability.
Manmohan Sharma: So repeat customer, as I said, that we are getting orders from the repeat customers because there are group who are associated with us from the long time. So there are lot of order which are coming from the repeat customers.
Khushi Aggarwal: That was okay. My next question would be, we have observed relatively muted fresh order inflows in the solar EPC business. Is that primarily driven by heightened competitive intensity and a conscious decision to prioritize margin discipline over order book?
Manmohan Sharma: No, we have booked around 1.7 gigawatt worth of the customers. Some of them are the existing customer but we have new customers also, ma'am, during this quarter.
Khushi Aggarwal: Okay. Thank you. Thank you, sir.
Operator: Thank you. The next question is from the line of Johan Kinusara from Asian Broking. Please go ahead.
Johan Kinusara: Am I audible?
Operator: Yes, sir.
Johan Kinusara: Okay. I basically want to understand that our debt levels have increased quite a lot. Do we plan on staying leveraged in the future at these same levels, or do we have a priority to pay back the debt and come back to the earlier levels?
Manmohan Sharma: No. What we plan is, as of now, we have taken the financing loan, but definitely with the group initiative or the way we progress in the upcoming quarter, we will see how we can reduce the debt which we have taken.
Johan Kinusara: Okay. And this debt was majorly focused just for the acquisition, not for any other business operations within Waaree?
Manmohan Sharma: Yes, you are right in saying.
Johan Kinusara: Okay, sir. Thank you so much.
Operator: Thank you. Due to time constraint, that was the last question for today. I now hand the conference over to Mr. Prathamesh Parag for closing comments.
Prathamesh Parag: Thank you. I would like to thank the management for taking the time out for this conference call today. Also, thanks to all the participants for attending. If you have any queries, feel free to contact us via MUFG Intime India Private Limited, investor relations advisor for Waaree Renewable Technologies Limited. Thank you.
Operator: Thank you, sir. On behalf of Waaree Renewable Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
