Q & A Highlights

Q: What is the expected demand trajectory for the PM-Suryodaya Yojana and PM-KUSUM schemes over the next nine months, and what is the typical DC overloading factor for these projects? A: Vinay Rustagi, Chief Business Officer, stated that the momentum in both schemes is strong. For PM-Suryodaya (rooftop), the average monthly installation is expected to be 1.2-1.3 GW over the next nine months. For PM-KUSUM, with a government deadline of March 2027, installations are expected to be between 6-8 GW (AC) over the next nine months. The DC overloading factor for PM-KUSUM is typically 1.3-1.5 for ground-mounted projects, with a blended average of about 1.2-1.25.

Q: Can you provide an update on the new 7 GW TOPCON cell line and the expected timeline for revenue contribution and capacity utilization? A: Chiranjeev Singh Saluja, Managing Director, confirmed that the 7 GW TOPCON cell line at Naidupeta is in advanced commissioning, with trial runs starting later this month. The first set of revenue is targeted for September, with the line expected to reach 50-60% utilization by November. The company is targeting at least 70% utilization by the March 2027 quarter.

Q: Given the recent ALMM extension for C&I projects, how has the order pipeline and demand momentum been in July and August? A: Chiranjeev Singh Saluja, Managing Director, noted a sudden influx of large non-DCR module orders following the extension, which is a positive for the company as it fills module capacity for the next 2-3 months. The DCR order book remains strong and is sold out for FY 2027, with the company now selling for FY 2028. C&I clients are actively blocking capacity for FY 2028, indicating strong forward demand.

Q: What is the outlook for the transformer business in terms of revenue ramp-up and profitability over the next few years? A: Vinay Rustagi, Chief Business Officer, stated that the transformer business is expected to more than triple in size over the next three years, driven by capacity expansion from 4 GVA to 16.25 GVA and a shift towards higher-margin HV and EHV segments. The company is also aggressively pursuing export opportunities in North America, Europe, and Africa. Margins are expected to be slightly ahead of the historical industry average of ~15% EBITDA and 8-10% PAT, given the low-cost base and synergies with Premier Energies.

Q: What is the company's strategy regarding the sale of solar cells versus using them internally for DCR modules, and how will this mix evolve? A: Chiranjeev Singh Saluja, Managing Director, explained that the company has existing contracts for cell sales that will be honored over the next 18 months. However, as the new 7 GW cell line ramps up and DCR module demand increases, the focus will shift towards using more cells internally for DCR modules. The company expects the share of DCR modules to increase steadily over the next 18-24 months, with the business mix moving away from external cell sales.

Q: Can you provide details on the BESS (Battery Energy Storage Systems) business plan and the timeline for technology partnerships? A: Chiranjeev Singh Saluja, Managing Director, confirmed that land has been acquired and construction has started for the BESS facility. The company is in the process of finalizing a technology partner for containerized solutions, expected within the next 2-3 months. The company is waiting for government guidelines on non-tariff barriers for BESS before expanding further. The phase 1 plan is for 12-15 GW of BESS capacity.

Q: What is the expected depreciation run-rate for FY 2027 given the new capacity additions? A: Vinay Rustagi, Chief Business Officer, explained that depreciation decreased due to accelerated depreciation taken last year. The company is now back to standard five-year depreciation. With the Seetharampur line fully commissioned and the Naidupeta line coming online, depreciation is expected to increase, reaching roughly INR 240-250 crores per quarter in Q3 and Q4 of FY 2027.

Q: What is the company's strategy regarding manufacturing in the U.S. in light of the recent minimum import price (MIP) proposals? A: Vinay Rustagi, Chief Business Officer, confirmed that the company has a JV to set up cell manufacturing in the U.S. and has been cautious in finalizing the location due to the policy regime. The recent MIP proposal makes U.S. manufacturing more attractive, and the company has concrete plans to proceed. Output from this facility is expected in about 24-30 months.

Q: How is the company positioned to capitalize on the emerging European market for solar modules? A: Chiranjeev Singh Saluja, Managing Director, stated that Europe is at a "takeoff stage" with large tenders emerging in Italy, France, and expected in Germany. The company is in advanced stages of opening a European office and hiring a sales team. As India is in the final stages of signing an FTA with the EU, exports from India are the first preference, but the company is open to setting up a plant in Europe depending on demand and policy environment.

Q: What is the company's view on industry consolidation and the competitive landscape as more capacity comes online? A: Vinay Rustagi, Chief Business Officer, stated that the industry is consolidating around players with scale, vertical integration, and technology. Smaller, non-integrated manufacturers are finding the market tough as margins at the module level have vanished, with profitability shifting upstream to cell manufacturing. The market will be dominated by larger, integrated players with cell and, going forward, ingot and wafer capacities. Consolidation is inevitable in the sector.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .