Operator: Ladies and gentlemen, good day and welcome to the GK Energy 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 and then zero on your touch-tone phone. I now hand the conference over to Mr. Gopal Kabra. Thank you, and over to you, sir.
Gopal Kabra: Thank you. Thank you very much. I, Gopal Rajaram Kabra, Chairman, Managing Director, and CEO, welcome you all. Thank you and very good afternoon to everyone. Welcome to our earning call for the Q2 and half year ended 30 September 2026. Joining me on the call are Mr. Mehul Shah, whole-time director, COO, and Mr. Sunil Malu, CFO. Our investor presentation is available on the stock exchange and our website. I now hand over to Mr. Mehul to take you through the performance and business highlights. Over to you, Mehul.
Mehul Shah: I am Mehul Shah, Whole-time Director and COO. Thank you, Gopalji, and a very good afternoon to everyone. Before I go into the details, let me highlight three key takeaways from today's call. First, growth. In H1 FY27, we delivered revenue of INR 907.8 crores, up 38.9%. That is already nearly 60% of the revenue we delivered in the whole of FY26. Second, a broader renewable energy platform. GK Energy was built on solar pumps. Today, we are building across three segments. Retail rooftop, residential, and commercial, B2C. Our retail rooftop solar business is growing strongly, driven by rising acceptance among residential and commercial customers. We have also received an institutional order to install 100,000 rooftop solar systems. Agriculture. In October 2026, we have received an additional institutional order for 14,000 off-grid DC solar photovoltaic water pumping systems in Maharashtra. Utility.
Mehul Shah: We entered the fast-growing Battery Energy Storage System BESS segment with a first order for a 150 MW by 300 MWh utility scale installation. We are no longer a single product company. We are becoming a renewable energy platform across generation, storage, and delivery. Third, collection. Since 30 September, we have received INR 377.5 crores from customers, which puts us in a stronger position going into the second half. Let me now deep dive into performance, starting with the half year. For H1 FY27, revenue from operations grew 38.9% to INR 907.8 crores. EBITDA grew 21.6% to INR 160.5 crores at a margin of 17.7%. Profit After Tax grew 30.7% to INR 109 crore. Speaking of quarterly performance, the Q2 is seasonally our weakest quarter because the monsoon slows field installation, especially for agriculture pumps.
Mehul Shah: Our revenue from Q2 FY27 grew 12.3% year on year to INR 402.7 crores. At the same time, EBITDA stood at INR 74.4 crores, with 18.5% EBITDA margins, and Profit After Tax rose 6.3% to INR 49.4 crores with 12.3% PAT margins. On working capital front, while inventory and payables continue to remain within the range, the trade receivables stood at INR 1,012.38 crores as at 30 September 2026, with 204 days of outstanding. However, it is important to note that we have received INR 377.5 crores in the last 28 days, which brings down outstanding receivables considerably to about 128 days. Our business is execution. So let me give you the numbers from the field. In Q2, we installed 19,391 systems, up 41.8% year on year, and commissioned 84 MW, up 33.3%. For the half year, installation rose 77.6% to 43,509 systems and capacity commission rose 70.8% to 193 MW.
Mehul Shah: Our cumulative base now stands at over 184,000 systems and over 800 MW across India. Behind every one of these systems is our network. 36 states, more than 7,500 villages, and over 20,000 warehouses, more than 40 owned vehicles, 200 plus team leads, and 1,300 plus installations and commissioning partners. This is 18 years of groundwork, and it is very hard to replicate. Let me now turn to where our growth will come from. India's installed capacity reached 171 GW at the end of September, with 20.8 GW added in the first half alone. Within this, we see three engines from GK Energy as of today. Solar pumps, our foundation. Fewer than 30% of India's farmers have access to irrigation, and less than 2% of the pumps run on solar. 78 million farmers still have no pumping solution at all.
Mehul Shah: The demand for solar pumps remains strong, with product proof of concept well established. In October 2026, we received an additional institutional order for 14,000 off-grid DC solar photovoltaic water pumping systems in Maharashtra. Rooftop solar is our next growth drive. India's grid-connected rooftop capacity has reached 33.4 gigawatts. Rooftop additions grew 69% in FY26 to 8.7 gigawatts. Our retail rooftop business across residential and commercial B2C customers is growing strongly, driven by rising acceptance among residential and commercial customers. In addition, we have received an institutional order to install 100,000 rooftop solar systems. Rooftop fits our model well. It uses the same field network and the same supply chain, and it diversifies our revenue. Energy storage is our entry into the next big opportunity.
Mehul Shah: CEA projection cited by MNRE shows India's battery storage requirement rising from about 35 gigawatt hour in FY27 to around 236 gigawatt hour by FY32. We have entered this fast-growing segment with a strong order for a 150 MW by 300 MWh utility scale installation, and we intend to expand to 2 gigawatt in mid-term. Across this business, our order book stands at INR 788 crores, comprising orders as on 30 October 2026 and orders received from 1 October 2026 onwards. Important to highlight that during the financial year, we have received cumulative orders worth INR 1,422.29 crores, including GST, but excluding the base order. Together, this gives us clear visibility for execution over the coming quarters. All of this runs on what we believe is our biggest advantage. Our technology-defined low CapEx, controlled manufacturing ecosystem.
Mehul Shah: We design the products and set the specifications. We control critical sourcing, and we grow with multiple partners across each stage to manufacture. This lets us add volume and adapt new technologies, such as storage, without binding our own factories. Our capital goes into execution, brand, technology and customer reach, not into fixed assets. We are further working on exploring newer products in decentralized renewable energy segment and shall keep you updated with newer developments. Today, we are building India's largest decentralized renewable energy execution platform, and we are just getting started. Our ambition for 2030 is clear. One million installed systems and USD 1 billion business. We will build it across decentralized renewable energy, battery storage, utility scale, EPC, and new renewable products. Thank you for your continued trust and support. I now request the moderator to open the floor for question and answers.
Operator: Thank you. We will now begin the question and answer session. Participants who wish to ask a question may press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment as the question queue arises. We have the first question on the line of Nishita Jain from Sapphire Capital. Please go ahead.
Nishita Jain: Yes. Hello, am I audible?
Operator: Yes, we can hear you.
Gopal Kabra: Yes, very well audible. Please go ahead.
Nishita Jain: Yeah. I just had some clarification. I heard a recent interview of GK Energy on ET Now. In that, you mentioned that our order book for this year is INR 1,800 crores, and here in the presentation, you have mentioned that we have the order book of INR 788 crores. Is there some confusion?
Gopal Kabra: That is a revenue visibility of INR 1,800 crore. This is the order book of current year, and we have some order book of the last year also. What Mr. Mehul has mentioned, what we have received in current year.
Nishita Jain: Okay. This INR 1,800 crore revenue visibility, what do you mean by revenue visibility? Is it like an order book pipeline?
Gopal Kabra: Yes. Order book pipeline is there, and we have executed some of the part already, which is reflecting in our top line as well. We had some opening order book. This order book is available. Out of that, close to INR 900 plus crore, we have already executed.
Nishita Jain: Okay. Understood. My next question is, Anant, you have mentioned that you can maintain the EBITDA margin of 17% to 18% for FY27. But in Q1, we have done around 16%, and in Q2, we have done around 17%. For the full year, do you expect that we can still reach the 17%, 18% EBITDA margin?
Gopal Kabra: Yeah, we are intent to maintain that thing, and I think complete procurement and the management is aligned with that. If you see that, because of our proper planning and controlled manufacturing ecosystem, we are able to maintain that. In spite of there are some hurdle in market, but that impact did not got on GK Energy. It is because of our business model itself. We are very confident. Yes, we will definitely going to maintain that.
Nishita Jain: Right. My next question is that, in the same interview, you also mentioned that even if we do not get the PM KUSUM order, or if PM KUSUM is delayed, we can still grow by 35% to 40%. I just wanted to understand what is the growth driver for that?
Gopal Kabra: See, for the growth driver, already order what we have, plus the rooftop market, where we got the very handsome adaptability. We have installed more than 2,000 systems already.
Gopal Kabra: We have almost 4,000 to 5,000 work system demand already, and it is a retail market, again, what we have expanded. We have been not dependent only on the institutional order or the government driven of the solar pump business. We expanded our wing very well in right time. Now we are there in the market with the rooftop. What visibility I have said you, that visibility is with pump order, what we have already, plus rooftop order, what we have executed and what we are going to execute. With this only, I have said that, plus we have Magel Tyala 7 is also coming up. There also some order is in pipeline. With that, we have said if PM KUSUM gets delayed, which is not going to be the case.
Gopal Kabra: But that was a question has been asked, "If it gets delayed, then what?" Then in that reference, I said, still we will be able to grow with 35% to 40%.
Nishita Jain: Right. So just an understanding, for a 40% growth in H2, we will need to do around INR 1,500 crores of revenue and our existing order book is INR 788 crores only. So where are we getting this revenue visibility of INR 1,500 crores from?
Gopal Kabra: Yeah. So in that close to INR 800 crore rupees order I already have, we are intending to reach INR 2,200 crore rupees. Without PM KUSUM, it is just an hypothetical question we are talking, we would be reaching to the more better number. So what you have said, we need to have INR 1,300 crore rupees in H2. INR 2,200 crore if you are counting, INR 900 we have already done, INR 1,300 crore we have to do. Out of that INR 800, close to INR 800 crore rupees order already I have. Right now we are in the Q3 beginning. So only INR 500 crore rupees order that we have to secure in the market and with our portfolio and the business network and the market leadership we have, in the rooftop itself, we will be able to catch that business.
Nishita Jain: Okay. Understood. And my last question would be, what is the number of solar pumps installed in Q2 FY27?
Gopal Kabra: Q2 FY27, you are talking what we are going to.
Nishita Jain: This quarter.
Gopal Kabra: No, Q2. You said Q2.
Nishita Jain: Q2. This quarter.
Gopal Kabra: Okay. This current quarter, it is 19,500 close to, more precise, 19,391 systems we have installed.
Nishita Jain: Okay. Understood. Yeah. Perfect. Thank you so much.
Operator: Thank you. Participants who wish to ask a question may press star and 1 on your touchtone telephone. We have the next question from the line of Shweta Jain from Anand Rathi. Please go ahead.
Sweta Jain: Hi. Good afternoon, everyone. Sir, I have two, three questions. The first one being, we have mentioned around 78 million farmers, they do not have pumping solutions. So how do we consider that as an addressable market for us?
Gopal Kabra: Okay. We have 11 crore plus farmers. Out of that, 3 crore farmers only got the irrigation. These are the government numbers, what we have. With that, remaining farmers do not have the pumping solution for them. They have the water availability, we have to provide them solution. More precisely, 11.8 crore farmers we have in the country. Out of that, 3 crore farmers got the pumping solution either from grid, solar, and the diesel base. It is a mix of all these three. Pending is 7.8 crore farmers. This is what the market we are talking about.
Sweta Jain: Sir, could that be Is there any acreage size at minimum for a farmer to have a pump or something like that, and is there a possibility that 7.8 overstates the market size?
Gopal Kabra: No, it is not my number. These are the numbers we have taken from the government. I am not stating that these are the farmers.
Sweta Jain: No. Understood. They do not have a pumping solutions, but is there a basic eligibility criteria for a farmer to have a pumping solution in the first place?
Gopal Kabra: See, generally, whosoever farmer have 1 acre and above land area, they need the pumping solution because with that farm area, they are able to take multiple crop. Right now they are taking only crop with the monsoon availability. That is why we see the very longevity in this product line. We need to look towards the food security and the national leadership is really working on that. We are looking towards the energy security. Again, we are working on that. So it is a combination of the product that bring the food security as well as the energy security. Plus, one more important thing I would like to highlight. Whenever the grid or the DISCOMs want to give the grid connection to any farmer, it take much more time.
Gopal Kabra: Where the solar pump has proven that, yes, it can start very fast, it can install very fast, and it can deliver result very fast. Take an example, if 100 farms need a connection, in some of the DISCOM it take 2 years, 3 years because of the distance, because of the natural hurdles what they have. But where the solar is like that, we go on the deep, any remote area, we install the pump and pumping starts. That is why it is one of the most feasible. Plus-
Sweta Jain: And what could be the diff- Sorry.
Gopal Kabra: Yeah. Please go ahead.
Sweta Jain: No. Sir, please continue.
Gopal Kabra: No, it's okay. You continue. It's okay.
Sweta Jain: No, I just wanted to understand when you mentioned this, I understand grid connectivity will be an issue, but if you compare the cost of setting up a solar pump versus a diesel pump, how would that economics work for the farmer?
Gopal Kabra: See, diesel pump economics is like the farmer has to always put up the diesel, and where the one solar pump is installed, he get the assurance of the 300 plus day of the water availability. So economics-wise for the farmer, diesel pump is always better. Plus, it's a one-time installation. One time momentum is there. So farmer is having the assurance, sunrise to sunset, he's having the water and he's not worried for the diesel to buy from the market to run the diesel pump. Again, it's a polluting thing.
Sweta Jain: The CapEx would be very similar to set either of them?
Gopal Kabra: Even in some of the state it is lesser or it can be similar, you can consider.
Sweta Jain: Understood.
Gopal Kabra: We are talking with the historical number. We are not talking with the assumption. It is there, plus the life of the pump is very higher than the diesel pump.
Sweta Jain: Can you quantify this?
Gopal Kabra: See, life, we have the solar module life, 25 years. Pump is warranted for the 5 years, structure is there, and my installed pumps have been working since 7, 8, 9 years. Right?
Sweta Jain: Okay
Gopal Kabra: Very simple calculation. If you have the diesel pump, it require the maintenance, it require many thing, right? Where it is not here.
Sweta Jain: Yes.
Gopal Kabra: That's the difference is there for the farmers, because they also look for the ease of doing the business.
Sweta Jain: Understood. Sir, second on this again, rooftop would completely be a cash and carry business model, right? But it seems like the farmer, the solar pumps business, we really have a more than 6 month debtor days on the books.
Gopal Kabra: Uh-
Sweta Jain: Is this a business model where we give that credit line or is it something specific to one particular geography? Or can you please throw some light to understand why is it so stretched?
Gopal Kabra: There are two different questions in one question. First question I would answer, you said that the debtor days has been stretched. As on 31st, your H1 ended, you are able to see, but as Mr. Mehul Shah already said in this con call itself,
Sweta Jain: Mm-hmm. Correct.
Gopal Kabra: we received INR 375 crore in the current month as of now, right?
Sweta Jain: Right.
Gopal Kabra: Because of the day has been few days ahead, we received the money. If you do that calculation, we are at 128 days now only. That's one number.
Sweta Jain: But again, that's six months, right?
Gopal Kabra: Yeah, six months. So 128 days, yes, we already always indicated that it's 120 days. This is what we have been always saying that. Talking about the rooftop, then yes, rooftop is the model where the cash and carry is there, and it's a natural extension for us, so we are doing that as well.
Sweta Jain: This business, rooftop, sorry, in the pumps business will perennially be at six months receivables?
Gopal Kabra: Not 6 months. We said 120 days. This is what we have said. Practically it is 120.
Sweta Jain: 4 months.
Gopal Kabra: 140 days only.
Sweta Jain: Understood.
Gopal Kabra: H1 definitely because of the end of the H1 is there, and after that we receive the money, so it could not be calculated into the H1 results.
Sweta Jain: Sir, this would be across all geographies or do we have any particular state-wise breakup in terms of some particular, like Maharashtra farmers or Karnataka farmers would be more prone to such creditor days, or it is across pan-India?
Gopal Kabra: I did not understand your question. Can you just repeat once?
Sweta Jain: Sir, I wanted to understand the debtors profile, basically. Is it specifically to certain set of a state or it is pan-India, this is the average that we are working with?
Gopal Kabra: No, it is a pan-India average. It is a project cycle because the survey, installation, dispatch, then the report, then inspection, and then payment. We get the payment from the government under the schemes what pump we are doing it. This is the-
Sweta Jain: Oh, okay.
Gopal Kabra: will be there, and rooftop is definitely will have the better cash flow.
Sweta Jain: Cash flow. So we receive the payment from the government and not from the farmer?
Gopal Kabra: No, no, we don't receive from the farmer.
Sweta Jain: Understood.
Gopal Kabra: Even farmer has to deposit his share in upfront, then they get the vendor selection. It is a market mode business.
Sweta Jain: Market business model.
Gopal Kabra: You are able to capture the business if your brand is there, if your service is there, and if your network is there. That is satisfied to them.
Sweta Jain: Fair point.
Gopal Kabra: So that is why we said that we have become a brand into the segment.
Gopal Kabra: Where the farmer itself are selecting us.
Sweta Jain: Understood. My last question would be on, are we looking at any form of backward integration as in entering into the manufacturing space?
Gopal Kabra: See, as we have already said that we have the manufacturing control ecosystem, asset-light model that gives us the flexibility. If you see, we begin with the pumping, we started new vertical of the rooftop, and we started with the BESS. If I would have been stuck in some of the one product manufacturing, then it is really difficult for me to do the expansion as per the business model get shift. The world is dynamic, world is technological shift is taking place. So we prefer to utilize the manufacture, those who have already builded the asset. We give them the much more larger order, so they dedicatedly work us. This kind of the business model is getting proven itself in the market.
Gopal Kabra: If something new product comes, that is very much I get assurance that, yes, it is going to last for the 5 to 7 years. Then only we would be intend to enter in the manufacturing. Else, we are quite comfortable to have the model. Anyhow, the product what we are doing, the crux is your network, not the manufacturing, because it is a commodity.
Sweta Jain: Not the manufacturing.
Gopal Kabra: We have the hundreds of the manufacturer for the each component I am doing it. So it does not make sense. What we are doing, we have spreaded our manufacturing partners across the state, so we reduce the transportation cost also. I am not getting my product travel 1,000 kilometers just for the
Sweta Jain: Understood.
Gopal Kabra: installation. So this kind of innovations, I will not say innovation, the adaptability of the smart adaptability is able to see in the results if you compare anywhere.
Sweta Jain: Got it. Thank you so much for such elaborate answers. All the BESS for future.
Gopal Kabra: Thank you. Thank you very much.
Operator: Thank you. Participants who wish to ask a question may press star and 1 on your touchtone telephone. We have the next question on the line of Jaynam Bora. Please go ahead.
[Analyst]: Congratulations on a good set of numbers, particularly the order wins in solar pump and solar rooftop. I just want to first double-click on solar rooftop. What are our plans? While this is a big order that we have won of around INR 450 odd crore, how are we ensuring that we have repeatability of such orders of such magnitude? What are the margins typically, if you can throw some light for this particular order, and what can we expect in terms of working capital as well?
Gopal Kabra: Thank you very much to appreciate my team. Rooftop replication order, yes, we are looking into that and the complete country is moving on that. We may able to give you some positivity in coming quarters. Along with that, retail rooftop also has been moved very good way. We are not only getting dependent ourselves on the institutional order, we have made the vertical available that is a retail market. We are leveraging the brand value, what we have created in the market.
[Analyst]: Okay.
Gopal Kabra: On the margin side, we are looking the similar margin, what we are able to take into the pumping segment. We would try for to come on that side.
[Analyst]: It will be slightly lesser, is what you are indicating, compared to pumps or is it similar to the pumps?
Gopal Kabra: Slightly less it will be there.
[Analyst]: Got it.
Gopal Kabra: but not too much.
[Analyst]: Got it. What is the working capital typically over here, just to get an idea, while it would be substantially lesser than the pumps business, but if you can provide some color, it would be helpful.
Gopal Kabra: Total fund flow of cash in, cash out require around 45 to 60 days in the rooftop segment.
[Analyst]: Got it. My second question is on the competition, winning orders. While you said that there are a lot of other orders like Magel Tyala, Sewan, and opportunities, I believe that the competition is also winning orders in other states like Karnataka, MP, et cetera. While we are very solid when it comes to Maharashtra, what are the other opportunities that you are looking at in the different states? How are you kind of looking at that, whether it is rooftop or solar pumps? That would be helpful.
Gopal Kabra: See. Yeah, thank you. Basically, it is nowhere the order winning. It is everywhere to get empaneled. So order is like we get from the market mode. Once we get empaneled, they are the beneficiary selectors. Here we are very confident because we have created our base in Haryana, Rajasthan, UP also we did, MP, yes, definitely few thousand pumps we have already executed. So we are building the brand in such a way that everywhere we are able to gain the momentum in the market.
[Analyst]: Okay. Is it fair to assume that empanelment in southern states is something that we will be looking at, or are we just completely avoiding that opportunity right now?
Gopal Kabra: No, it is not avoiding opportunity. It is like selective while taking the opportunity. GK Energy do not have intent to say we are present in 20 state in the country.
Gopal Kabra: We intend to be in the market where the maximum market share is there. The state where we are doing the geographically, that state comprise more than 70% of the market, what we are targeting in the midterm in coming years.
[Analyst]: Understood.
Gopal Kabra: Better to be present there. Just to cover that 30%, expanding to further 15 state, giving the burden on the company's balance sheet is not intent of the GK Energy management. We are very clear, we are here to make the business, to provide the service. We move and we expand in very controlled manner. When we are very confident, then only we add on the state. If you see, still we are present in six, seven state only. We never been present in 20 state. Why? Reason is very simple. Expansion is very easy, but giving and building the brand require the presence there. You need to understand everything. Yes, eventually we may expand one or two state, but we don't have any intent to expand very aggressively.
[Analyst]: Perfect. Understood.
Gopal Kabra: We would like to go in a controlled way.
[Analyst]: Understood. I wanted to get a color on PM KUSUM 2.0 scheme. It has been fairly delayed. So what is the conversation going now, and when can we realistically expect the PM KUSUM scheme going live? What is the reason for delay? That is something that we are not aware about.
Gopal Kabra: I do not say it is delayed at all. If you see my statement since last 6 months, even my last financial year result, my Q1 result also, I said it will arrive in Q3 only.
[Analyst]: Okay.
Gopal Kabra: I do not know how the assumption has been made for the arrival in the Q1 itself or Q2. It was very clear indication already has been given from our side to the market. Q3 only we are expecting, and we will be getting the fruits of this scheme in the Q4 onwards only. So from my side, I do not see it is a delay. I see it is going as per the plan is there. That is point number one. Yes, definitely there are certain technical discussion is going on where the product upgradation thought process is there, because it has been more than 5 years, the reports has been available.
Gopal Kabra: We also given have certain feedback because we have been implementer, so we have given certain input that this thing get changed, and yes, definitely it will help further growing of this market and it will help to the implementer for the country as well as the beneficiary. We are expecting that the suggested changes shall incorporate, and we should be able to see the scheme rolling soon.
[Analyst]: Like you said, Q3, sometime the announcement will come. In terms of the guidance of your top line and in terms of margins, what kind of growth can we expect and what kind of margins can we expect for FY27? When the scheme is live, assuming from Q4 FY27, what are we looking at when it comes to FY28? That would be super helpful to know.
Gopal Kabra: See, margin side, we are very clear we would be maintaining the two-digit PAT. Okay?
[Analyst]: Okay.
Gopal Kabra: I am talking about the PAT. That is-
[Analyst]: Okay
Gopal Kabra: Point number one. What was your another question?
[Analyst]: Revenue growth for FY27 and FY28.
Gopal Kabra: Okay. Next financial year you are talking about.
[Analyst]: Current year as well.
Gopal Kabra: See, current year, I have given indicated that without PM KUSUM also, we are able to grow close to 40%. With the PM KUSUM, yes, we intend what we have already shared. Next financial year, definitely till that PM KUSUM would be having the very accelerated market. So definitely, we would be able to give some kind of the call when the near maturity time would be the right time to indicate that.
[Analyst]: Okay. So FY27, like you stated in the Q4 call, can we double our FY26 numbers given the fact that everything is going as per timeline and PM KUSUM will be coming in Q3? So INR 3,000 crores top line, is that possible?
Gopal Kabra: There is no question at all. If PM KUSUM roll out very well in time, started very well in the time, yes, we are on track for that number. If PM KUSUM is there. If not there, still we have the 40% growth.
[Analyst]: Understood. My last question is regarding solar module procurement. Solar cells is a big challenge for the industry, particularly because we need DCR cells. While there are our peers who are backward integrating into that, we have consciously avoided that, as you stated your thought process. I just want to get your perspective when you are scaling up so well, and it's so many pumps that you installed. Do you see that to be a challenge as you continue to scale? How are you kind of ensuring that there is a timely procurement?
Gopal Kabra: See, our model is very clear. Point number one, module is been already become a commodity, everyone know, and I believe-
[Analyst]: Yes
Gopal Kabra: cell also will become a commodity in coming 1 and a half year.
[Analyst]: Okay.
Gopal Kabra: Already close to 40 gigawatt install and further 60, 70 gigawatt is in process.
Gopal Kabra: We won't prefer to go backward, that you have already confirmed. And how we have made this secure, we have entered in the confirmatory agreement with the certain cell manufacturer for the 875 megawatt in current year. Last year also, we had a purchase from the 2 cell manufacturer, close to 300 megawatt. So we plan very well in advance. We do the tie-up, we do the manufacturing tie-up with the future upcoming manufacturing setup, and that is also in process. So I can assure you that GK Energy will not get any kind of the shortage for the DCR cell or the DCR module because model is already commodity, cell is going to become a commodity in 1 and a half year itself.
[Analyst]: Understood. And sir, can you provide some idea on the BESS, how the margins are? What is the opportunity technically? Because it's different from solar rooftop and pumps, so technically, how difficult it is, and is there any working capital when it comes to that?
Gopal Kabra: See-
[Analyst]: How heavy could it be?
Gopal Kabra: Yeah. BESS is definitely a very big opportunity, and that is the reason we have been very selective while entering into the new domain, close to our existing work itself. So future is really bright. If you see, we have lost hundreds of the megawatt hour of the energy in current year because we do not have the storage facility.
[Analyst]: Yes.
Gopal Kabra: That facility is going to give the leverage for this business model, and we have further gig out of the capacity solar installation is coming. So daytime, India got the security for the power supply. What about the non-solar hour? To have the excess of the power which is getting generated in daytime, we need the BESS. This is why the BESS future is very bright, point number one. Point number two, what business model we have taken, this is a utility scale business model, where we are going to put our own BESS plants, and we are going to get the power from the DISCOMs, and we will be selling back the power to the DISCOMs. So we go with the very secure mechanism of the business modeling, rather than taking unnecessary risk, which I do not find suitable.
[Analyst]: Here it is not just EPC. If I understood you right, we will be installing as well as we will be kind of securing the If you can just provide some color, because I am getting a little bit confused over here. In terms of margins also, if you can provide some profile, some color, that would be helpful.
Gopal Kabra: Okay. I believe you understand. Let me repeat once again.
[Analyst]: Sure.
Gopal Kabra: Here, we are going to put our own BESS plants. We are going to get the power from the DISCOM, and we are going to sell to the DISCOM. We call as a CapEx modeling for that.
[Analyst]: Okay.
Gopal Kabra: It is going to be in that mode. And it have the fixed revenue model for the further 15 years from the date of the installation.
[Analyst]: Okay.
Gopal Kabra: This is how we are making the GK Energy on the stable income sources.
Gopal Kabra: And coming, new coming thing as well. We are making the combination where we can make sure that, yes, company growth is constant and I have the assured bottom line.
[Analyst]: Perfect. Understood. Thank you so much and wishing you the best on achieving FY27 and your 2030 guidance as well. All the best.
Gopal Kabra: Thank you.
Operator: Thank you. We have the next question on the line of Aditya Srinivasan, an independent investor. Please go ahead.
Adithya Srinivasan: Hi, thank you for the opportunity. I just have two questions, one with respect to receivables and one with respect to the BESS segment. With respect to receivables, the receivables have gone up a little bit ever since March. What better days would you expect by the end of FY27 and 28? Due to that, will you slow down order intake if collections don't go as expected? This is my first question. With respect to BESS on my second question, I would just like to understand the unit economics per megawatt hour. What it would cost you, what's the battery life cycle, the operation and maintenance cost. I would just like to understand this a little bit more.
Gopal Kabra: Okay. Your point number one, receivables. Yes, H1 you see, but as I said, we received the money in October itself, INR 375 crore we have received. With that calculation, it's coming 128 days, but definitely because H1 ended, it's reflecting 200 days. Year-end, we are expecting 120 to 150 max days would be there year-end on the receivable side. Anyhow, we never bank or go in aggressive for getting any order. Slowing down is not going aggressive. We go with the pace, what we have determined, and we work with that model only. Your answer for the question number one. Question number two, life cycle for the BESS, what we are talking about. Right now, 10,000 to 8,000 cycle is what market product is available. Technically, day by day improvement is going on.
Gopal Kabra: You know, right now it's a lithium-ion, then sodium batteries also is in process. Might be in the coming future that cycle can go up to 12,000 to 15,000. But right now it's 8,000 to 10,000 cycle batteries are available. That's point number one. If we talk about a per megawatt hour, I'm talking very broad number. It get changes project to project, location to location, number of hour and everything. But broadly it's around INR 90 lakh to INR 1 crore is what megawatt hour of the CapEx is required. Very broad number I said that.
Adithya Srinivasan: Got it. Yeah, that's very clear. That's very helpful. I just have one more question on, just a follow-up on the receivables and with respect to funding the working capital. Is there any plans going forward to any raising any fresh equity or any increasing borrowings? Just a little bit more color on this. Sorry if this is a repeated question.
Gopal Kabra: Yeah. First I will answer your second question. We are not intend to dilute our equity. We have to come down to 75%. Right now, me and Mehul both are at 79 point some percentage, so we would be diluting in the sense definitely in 2 years we have to do it, but not at this stage, at this price band. We are expecting ourselves doing the good business and with the good result, that time we will think on that. Answering to your first question on the debt, we have sufficient debt, what we have already taken up, and profit what we are generating, I think that will be also going to help for the taking the business ahead with what target we have.
Adithya Srinivasan: Understood. Okay. All the BESS. I think that is it from my side. Thank you.
Gopal Kabra: Thank you.
Operator: Thank you. Participants who wish to ask a question may press star and 1 on your touchtone telephone. As there are no further questions from the participants, I now hand the conference over to Mr. Gopal Kabra for closing comments.
Gopal Kabra: Thank you. Gopal Kabra, Chairman and Managing Director, thank you for all your questions and for the time today. I hope we have answered them well. If there are anything more you need, please get in touch with our investor relation team or Churchgate Partners. Thank you once again, and we look forward to speaking with you next quarter.
Operator: Thank you.
Operator: Stay happy, stay sunshine, enjoy the sun. Thank you.
Operator: Thank you. On behalf of GK Energy Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
