Emmvee Photovoltaic Power Limited (EMMVEE) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to MV Photovoltaic Power Limited Q2F527 Earnings Conference Call hosted by Radhi Capital. 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 touchstone phone. Please note that this conference is being recorded. Please note that anything said on this call that reflects the outlook towards the future, which can be construed as a forward-looking statement, must be viewed in conjunction with the risk that the company faces. A copy of the disclosure is available on the Invest Relations section of the website, as well as on the stock exchanges. Kindly also note that the audio of the earning call is a corporate material of MV Limited and cannot be copied, rebroadcasted, or attributed in the PR media without specific and written consent of the company. To give you an in-depth understanding of the company and answers to all your queries, we have from the management side today, Mr. Manjunata, TV, Chairman and Managing Director, Mr. Suhas Taunti Manjunata, President and CEO, Mr. Pawan Kumar Jain, Chief Financial Officer. I now hand the conference over to Mr. Manjunata. Thank you and over to you, sir.

Thank you. Good evening, everyone. I extend a warm welcome to all our investors, analysts, and shareholders joining us in this Q2 and H1 financial year 27 earning conference call. I am pleased to share that MV has delivered its strongest half-yearly financial performance to date. For the first half of financial year 27, our revenue from operation grew by 45% year-on-year to 3,132 crores. EBITDA increased by 47% to 1,105 crores. The profit after tax grew by 79% to 7,762 crores. We have maintained EBITDA margins of approximately 35%, demonstrating the strength and consistency of our operating performance. These results reflect the manufacturing capabilities we have developed over nearly two decades. Our continued focus on technology and product reliability and the trust we have built with our customers. Importantly, our performance has remained consistent with the guidance we provided, even as the industry transisted through changes in the implementation of ALM regulations and geopolitical issues. Our focus has remained on executing our business plans, strengthening our manufacturing capabilities, and delivering sustainable growth. Let me now share our perspective on the Indian solar industry. Indian solar sector continue to experience significant growth, supported by increasing electricity demand, renewable energy commitment, and the continued development of solar projects across multiple segments. The first half of calendar year 27 has witnessed India's highest labor solar installation for a six-month period. Based on the current installation trajectory, domestic module demand is running a phase that could translate into approximately 64% year-on-year growth for this year. This is a significant development for the domestic manufacturing industry. We are seeing demand across utility-scale projects, commercial, industrial installations, roof-to-solar, and government-supported programs. In addition, the growing adoption of hybrid, round-the-clock, and firm renewable energy projects is creating a more module demand as the AC-DC ratios increase in these solar deployments. As India's energy requirements grow, we expect solar to continue playing an increasingly important role in the country's electricity generation mix. At the same time, the domestic manufacturing ecosystem is evolving. The implementation of ALM-2 of our solar cell is an important step towards strengthening India's domestic manufacturing capabilities. While certain transitional provisions have been introduced, the border direction of the policy continue to support greater domestic value addition and deeper integration across solar manufacturing supply chains. MBE is well positioned to participate in the transition supported by our existing top-down cell manufacturing capabilities, establish model manufacturing operations, and continued investment in integration. Our inclusion in G12R top-top cells under ALLM leads to further strengthening our ability to serve evolving customer requirements. Coming to our ongoing expansion, our 6GW integrated top-top cell and module manufacturing project remain on track. We expect the commissioning of the module manufacturing facility by December, followed by cell manufacturing facility by March 27. Upon completion, our total installed manufacturing capacity will increase to approximately 16.3 gigawatts of modules and 8.9 gigawatts of cells. An important aspect of our manufacturing strategy is how these capacities have been designed to operate together. Cell and module manufacturing have different operating characteristics. SEL manufacturing can achieve significantly higher utilization level, whereas module manufacturing requires greater flexibility to accommodate different product configuration, customer specification, and production schedules. When we consider the maximum achievable production for both the operations of a 16.3 gigawatt of module capacity and 8.9 gigawatt of cell capacity are designed to deliver bodily equivalent annual output. This is the central to our integrated manufacturing strategy.

Our objective is to optimize the utilization of our manufacturing, strengthening our cost competitiveness.

We believe that manufacturing integration must be evaluated not simply by installing capacity, but by the ability of different stages of production to operate efficiently together. Beyond our ongoing expansion, we are also progressing with our plans for backward integration into ingot and grapher manufacturing. Our current plan envisages a 9 gigawatt of facility developed in two phases of 5 gigawatt and 4 gigawatt aligned with our future cell manufacturing requirement. The timing of this investment will be guided by the regulatory development, particularly LLM List 3, prevailing market condition and long-term economic viability. Our approach to expansion remains disciplined. We believe the next phase of growth in Indian solar manufacturing will increasingly depend on technological capabilities, manufacturing efficiency, product availability, and supply chain integration. These are areas in which MV has consistently invested over the years. Our collaboration with leading research institutions, our experience in top-concel manufacturing, and our focus on product quality provide a strong foundation for the future. As we enter the second half of financial year 27, our priorities remain clear. We will continue to execute our expansion plan, strengthen our manufacturing capabilities, We are encouraged by the growth opportunities in India, solar market, and remain committed to creating sustainable long-term value through technology, quality, and responsible investment. I would like to thank our employees, customers, suppliers, financial institutions, shareholders, and all our stakeholders for their continued support and confidence in MB. With that, I will hand over to Swaz, who will take you through our financial and operational performance in a greater detail. Thank you.

Thank you, Chairman. Good evening, everyone, and thank you for joining us today. As the Chairman highlighted, H1 FY2027 has been our strongest half-yearly performance to date. What is particularly encouraging is not only the growth we have delivered, but also the consistency of our operating performance and quality of our earnings. We have maintained strong profitability, improved cash generation, and continued to execute our business plans while investing in the next phase of manufacturing expansion. Let me take you through our financial and operational performance. Starting with the second quarter, revenue from operations for Q2 of 527 stood at 1,576 crore, representing growth of 39% year-on-year. EBITDA increased by 39% to 557 crore, while our EBITDA margins remained strong at approximately 35.3%. Profit after tax increased by 61% year-on-year to 382 crores, with pat margins improving to approximately 24% compared with 21% in the corresponding quarter last year. Our performance remained stable sequentially, with revenues and EBITDA broadly in line with the previous quarter, turning to the first half performance. Revenue from operations grew by 45% year-on-year to 3,132 crores. EBITDA increased by 47% to 1,105 crores, while our EBITDA margins remained at approximately 35%. Profit after tax grew by 79% to 762 crores. These numbers demonstrate the consistent growth in our business and our ability to maintain operating profitability as we scale. I would particularly like to highlight the quality of our earnings during the first half. Our EBITDA growth has remained broadly in line with the revenue growth reflecting the consistency of our operating margins. At the same time, profit after tax has grown significantly faster than revenue, Supported by improved financial efficiency and substantial reduction in finance costs. Finance costs during Q2 stood at approximately 9.5 crores as compared with 55.2 crores in the corresponding quarter last year. This reflects the strengthening of our balance sheet following the deployment of IPO process towards debt repayment. We have also seen a meaningful improvement in our operating cash generation. Net cash generated from the operating activity is increased to approximately 410 crores in H1 of FY27 compared to 121 crore in H1 of FY2026. This represents an improvement of approximately 239% year-on-year. For us, this is an important indicator as we continue to invest in expanding our manufacturing capabilities. Our focus is not only on growing revenue and profitability, but also on converting operating performance into cash generation and maintaining financial discipline. Moving to our manufacturing operations. During Q2-F527, solar module production increased by approximately 40% year-on-year to 952 MW, compared with 682 MW in the corresponding quarter last year. Solar cell production increased by approximately 61% to 513 MW compared with 319 MW in Q2 FY26. Our cell manufacturing operations continue to perform strongly, achieving 89% effective capacity utilization during the quarter. This reflects the operational capabilities we have established in top-con cell manufacturing and the continued improvement in production efficiency. Module capacity utilization stood at approximately 44%. As the chairman explained, cell and module manufacturing have different operating characteristics and achievable utilization levels. Our existing module manufacturing capacity provides us with significant flexibility to accommodate different product specifications and customer requirements while supporting future volume growth. Our focus remains on optimizing production across our facilities, improving operational efficiency, and maintaining the product quality and reliability that our customers expect from MV. Coming to our order book, as of 30th September, 2026, our order book stood at approximately 10.4 gigawatt, supported by new order inflows of approximately 1.5 gigawatt during the quarter. Our order book continues to be diversified across independent power producers, commercial and industrial customers, and other market segments. We remain focused on building long-term customer relationships and maintaining a healthy balance between order inflows, manufacturing capabilities, and delivery commitments. An important part of our commercial strategy is product differentiation. We believe that solar modules should not be evaluated solely on price. Product quality, energy, yield, long-term reliability, and warranty performance are important considerations for customer making investments in assets expected to operate for 25 to 30 years. Our experience in manufacturing and our continued investment in technology and quality remain central to our customer propositions. Turning to our balance sheet, as of 30th September 2026, our net debt to equity ratio stood at approximately 0.12 times. During the first half, we continued to invest significantly in our ongoing manufacturing expansion. Our balance sheet reflects this investment cycle, while our net leverage remains relatively low. We continue to place considerable emphasis on working capital management, particularly inventory planning, receivables, and cash generation. As our operations scale, we are focused on ensuring that our working capital requirements remain aligned with production schedules and customer deliveries. From capital allocation perspective, our priority is to complete the ongoing integrated expansion efficiently and ensure that new manufacturing assets contribute to sustainable profitability and returns. Looking ahead, our priorities for the remainder of FI27 remain straightforward. First, we will continue to maintain operating discipline and focus on manufacturing efficiency across our existing facilities. Second, we will work towards the timely commissioning and ramp-up of our new integrated manufacturing capacity. Third, we will continue to strengthen our customer relationship, execute our order book, and improve our product and technology capabilities. And finally, we will remain focused on cash generation, working capital efficiency, and maintaining an appropriate balance between growth investments and financial strength. India's solar manufacturing industry is entering an important phase of growth and integration. We believe our manufacturing experience, established top-con capabilities, and focus on quality and reliability provide us with a strong foundation to participate in this opportunity. Our objective is to translate this opportunity into consistent execution, profitable growth, and sustainable returns on our investments. With that, I would like to thank everyone for joining us today. We can now open the floor for questions.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 on the line of Apoorva Bahadur with IIFL Capital. Please go ahead.

Hi, sir. Thank you for the opportunity and congrats on another strong quarter. In your presentation, you mentioned that the plan for 6 gigawatt integrated cell module capacity is progressing well. Can you give us some update on that? Have you awarded tenders for the machines and all WhatsApp robots? By when should we expect the first cells out from there?

Yeah, absolutely. So the update on the new expansion is going extremely well. I think we had long ordered all the equipments for the project. Construction is going at full swing. Pretty much out of the hard cost, pretty much all items, critical items have already been ordered other than the small ongoing items that will be there. The module line, as Chairman mentioned in the speech, that it will be ready by December 26, whereas sell line by March 27. So you should expect the first sellout in that month, like commissioning in that month. So first sellout may be like...

Yeah, added to Swaz, so see, already all the equipments, we already, already, it is FAT is going on, and more likely, we are planning to start shipping the equipments from end of this month. So, by November, the equipment will be in place.

Understood. And so, the CAPEX that you have mentioned on the presentation, I think it's about 55 billion rupees, if I'm not wrong, for 6 gigawatts and N modules. Correct.

Yeah.

So, that would be about, what, 900, 9 billion odd rupees per gigawatt. Whereas, sir, I think, of late, there has been a decline in capex costs significantly, especially for cell equipment. Why is there such a large divergence? Because the latest, I mean, the numbers that we get from the industry is closer to 5 to 6 billion per gigawatt. It's almost 50% higher than that.

So, this, what we have said is the integrated of cell and module. So, you are also understanding the same.

So, Purwaji, that 5,500 crores is for both cell and module of 6 gigawatt each, and it includes, and where the hard cost is around 4,600 crores, and the remaining cost is for, you know, your interest during construction, contingency, margin money for working capital First half cost, which we have also, like, you know, detailed out in the, like, you know, presentation as well as in the prospectus.

Are there 100% is margin money for working capital in IDC? Okay.

So, I was just adding on to the last question of free capex cost. I was mentioning that, you know, our experience of manufacturing cells for the last two years I think manufacturing, the nuances that require to build a cell manufacturing plant behind it is something that we have, like, you know, carefully planned out, including our choice of equipments as well as the way the plant is designed to build, including our operational efficiencies to bring down increased automation as well as bringing down the, You know, we've gone over in the previous quarter calls, bringing down the silver consumption and these things. So, you know, it's a holistic plant.

And can you also please enumerate if we have received any sort of incentives from the state government for setting up these capacities? We understand that quite a few companies are getting some such benefits, like CapEx subsidy or some sort of a rebate?

Yeah, there have been, like, you know, incentives that we are eligible for and we are getting from the state government, both in this project as well, in the upcoming project as well as the earlier cell manufacturing as well. We have also declared that we have received, like, you know, capital subsidy for our earlier project from the state government to the tune of 25 percent. And the same, like, you know, similar subsidies are there expected in the upcoming projects as well. So, yeah, although we don't, like, you know, model it in our guidance or our projections, these are something that the company treats us an upside.

Last question, if you can split that 5,500 crore capex between cells and modules, how much should we think?

I think what we have communicated is 4,600 crores of the ad cost out of 5,500 crores of, like, total cost. Yeah, we can get back to you, Guruji, on the details of this. We have noted your question.

Okay, thank you so much.

Thank you. Next question comes from the line of Deepak

Krishnan with Cotec Institutional Equity. Please come with me.

Hi, sir. Am I audible? Yes. Yeah. Maybe just wanted to check with you, you know, given the run rate that cell is already running at 89% utilization, maybe what is sort of the production number for the full year that you're targeting both at module and cell levels for FY27?

Yeah, sir, yeah, cell is running at 89%, which is quite strong. And more importantly, there has also been one achievement which we have highlighted that we started G12 cell manufacturing last quarter. So with that, you know, also our production levels have increased, right? So, with that, I think we should continue to see these utilization rates, which is close to 90% for the remaining two quarters.

And on the module front, where do you see utilization stabilizing it?

See, module side brings in a lot of flexibility for us because, you know, like we can choose, like we typically say that the max utilization for module is around 60% approximately, But it brings in a lot of flexibility for us to choose the market opportunistically, whether to utilize that fully or whether to, you know, prioritize some merchants, sell sales.

Sure. And if I look at the finished goods or if I look at the overall inventory of closer to, I think, about 1800 or 1900 goods, how much of finished goods inventory would be sort We are sitting at, which could be, you know, that could sort of help for NINX.

So, yeah, the total energy is around 1,884 crores. Out of that, around 860 crores is your finished course. And the rest is raw material and some other stores and space.

And the sharp jump in other current assets that's largely advances to capital equipment companies, is that the right understanding?

Yeah, yeah, so this is the CapEx also, mostly for our new CapEx project, the results is mostly project, yeah.

Sure, and maybe just, you know, on your guidance, will you sort of stick to that 22 to 2400, if we understand that correct?

I think considering the first two quarters of half-yearly projection that we have of 1100 pros, we can definitely achieve the,

you Sure, and maybe just on the cell plant, I think you sort of indicated closer to March, but where are we in terms of, you know, installation of the balance of plant for cell? Are we nearly sort of done in that end, or what is sort of the progress over there?

Yeah, things will happen parallelly as the equipment hookup happens. So as the chairman said that, you know, the activities being done for the equipment sentries will be brought into the facility around November. And, you know, so hookup as well as the balance of plant construction will be simultaneously going on. And most of the activities have already started at a very fast rate.

Sure, and maybe just on the way we are seeing realization trends overall for both DCR, non-DCR cell module, you know, spread or absolute realization, whichever you want to sort of indicate, could you sort of highlight that as well?

Sir, if you see all our order book is in the same line, so I don't see anything is going to be on a negative on the margin sides. And as our orders are in hand, we have the margins, what we have indicated is going to be continued.

Sure. So you expect the same momentum to sort of continue? Sure. Okay, sir. Those were my questions. I will sort of turn back on that. Thank you. Thank you.

Thank you. Next question comes from the line of Parth Manjitia with Amit Capital. Please go ahead.

Yeah, thank you for the opportunity. Am I all right?

Yes, sir.

Yeah, so my first question is on the working capital bit. I see creditor days have reduced from 64 days in FY26 to 25 days in first half FY27. So any thought on that?

Is it a purpose-driven reduction or what are you thinking on it?

Yeah, so basically it all depends on how we negotiate with our vendors also. Sometimes we get some better price and then we reduce the credit to them. So this is a dynamic, but yeah, even we are having a large buy-in for raw making and other things, so we try to optimize our procurement costs.

Okay, so that helps your Cogs as well?

Yeah. Absolutely.

Right, right. Okay. And the second question would be that, what is the, if you could, I know you don't give the exact number, but how has the external sales of sell, so merchant sale gone through in this quarter? Is it at the same levels of the last quarter or it has reduced?

This quarter is marginally higher, but, you know, it's not too different from last quarter.

Okay, okay, okay. And then the last question here, so the margins for the non-DCR modules, what is your view on that? Is it the same as it was there before?

Because in the module space, we have seen a lot of oversupply coming in. So has the margins been affected on especially those non-DCR modules?

That's a good question, sir. Like, I mean, if you look at the margins for non-DCR, I mean, for the company, it has been broadly going same as what it used to be listing. We have been very particular in the space that we operate, in the demand space that we operate. You know, there is a product differentiation, quality differentiation, factor for differentiation that is available. So, MV being a player with a large experience and a good customer concentration from utility and IPP segment, we, you know, we are able to get a differentiation based on our product quality.

Okay. Okay. Sure.

Thanks a lot. These are my questions.

Thank you. Next question comes from the line of Prasad Hase with Spark Capital. Please go ahead. Mr. Hase, please go ahead.

Mr. Hase, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Hasey, we will promote the next. That is Sudhanshu from GM Financial. Please go ahead.

Hello, sir. Hi. Congratulations for continued good performance. Register three questions, sir.

Mr. Sudhanshu, sorry for interrupting. We cannot hear you. You are not audible. Can you speak a little louder?

We can be able to hear you. Yeah. So, like, my first question is, sir, like, renewal bidding is slow nowadays, sir. So how are you seeing your order book in FY27 and FY28, closing order book for this year and the next year? So that's my first question.

Thank you, sir. So if you see, like, you know, for us, our order book is growing at a very fast rate. We see 1.5 gigawatt of order book that is the highest ever in one quarter that we have got in this quarter. And this is continuing to grow at a very strong rate, which I can tell you with very large confidence. And if you look at the installation today, you know, 27 gigawatt of first calendar year, first half of the calendar year, we have seen the AC installation, which, you know, translates to around 35 gigawatt of DC demand. So we are at a trajectory of achieving about 64% of growth year-on-year, if you look at it on a whole year basis, if the same trajectory continues. And that is a significant growth in demand that we are seeing, especially a lot also increasingly coming from other segments like C&I, Rooftop, Kusum, and other segments as well. Utility on a demand perspective has not come down because there has been significant projects that are there in the pipeline itself. And since more and more projects are coming into fixed dispatch of renewable power, hybrid projects that are coming in, it is increasing the ACDC ratios that is requiring. So the demand is, in fact, going much more and more stronger. And what we have seen in the past and learned from the past is that the tendering can always catch up, but it is the pace of installation, infrastructure, and the deployment that will usually take more time, which is going at a fast pace.

So, added to the source, see, there is a non-tendered businesses has grown substantially compared to the earlier to now. It could be anything. Every month, approximately, it is growing more than 1 out of 2 gigawatt of the demand. In addition to whatever the tendered one is going on, less non-already tendered business is going on. And what we've seen in the market is very interesting is that we are able to get in all sort of like it could be utility or C&I or in the rooftop or any business. The demand or the inquiries and the potential what is required by 27 and 28 is extremely high. The inquiries and the pipelines are very strong.

And the next question is, like, so much of industry is coming out with the cell capacities, and we have 40 gigawatts as of now in the country. So, this, like, what is your assessment that how much India will have the cell manufacturing capacity in the next 12 to 18 months?

Yes, sir. Approximately, those things has to be removed one and also in the present capacities also now the from M10R to G12R is also one of the important factors is going to be there. So in the even we are seeing with all the announcement and with the people who are announced are not even coming, we are not able to see more than the that capacity even sometimes we see that there is going to be shortage in that.

Sir, the company truly believes that in the next couple of years, companies like us and we who have established customer base as well as doing business, we may need to add further capacities to meet the demand that is growing.

Okay, sir, here's my last question. See, one of our peers has quoted DCR module prices at 17 rupees. So, it's good to see that you're confident of maintaining margin. So, I want to understand that what are the levers we have, like, which will enable us to maintain this level of margin, even if the prices may come down. Thank you, sir.

So, presently the market, the numbers are not in that level. It is in a better than that level. Even the numbers, whatever is going to be, it is for the tenders and other things that is being quoted, it is all going to be next year or the one next year, which is going to be supply, will going to be taken place. So the value addition is what is coming is if you see that even initially when we started the supplying to NDPC orders in the beginning of the last year, we are used to use the aluminum about 220 milligrams. Today we are about 50, silver, sorry, sorry, silver is 220 milligrams. Today we are using around 60 to 65 milligrams. The second advantage is going to be there is what we are having M10R to be JITOLWAR. JITOLWAR where already we are reaching about 9.5 Watt peak as in as 8 Watt what you used to have in the single cell format. And now it is going to be next year it is going to be a further increase. Yes. With the value addition and other things, definitely the prices will going to be a little less, but margin can be maintained. Even if you see the overall the efficiency on the manufacturing and also to the management, the cost will have a better advantage. That is only going to be passed to the customers.

Thank you so much, sir.

Thank you. Next question comes from the line of Dhruv Guchal.

Yes, sir. Thank you so much. Sir, is it possible to split your module sales for 2Q and for 1H between the category of customers? How much percentage share to utilities, to retail, to C&I that way?

Yes, absolutely, sir. I mean, I can give you a broad split. About 25% of our sales is to the markets of retail and kusum. And the remaining 75 split is for the institutional customers, such as both in the C&I and utility space. So, like, you know, it could be like, you know, 50, 50, like, you know, 50, sorry. It could be like 40, 30, or it could be like, you know, 45, 35, but like, you know, that's...

For one inch, it will be?

It's similar, sir. I mean, similar. Yeah, that 25 and 75 is more important because, you know, I'll just tell you, like, some of our customers, they also have projects in the IPP. They also have the utility. They also have projects in C&I. So depending on the delivery timelines, they choose to, like, you know, take delivery to the C&I order or they'll take the delivery to the IPP project. So, you know, it depends on the timelines, depends on the project schedules. So, for us, the way we categorize is the institutionals, which both IPPs in the C&I and Euclid, as well as in this thing.

And retail will include Kusum also?

Yeah, retail includes Kusum as well. Pumps as well as Kusum C also, which is growing, which is a much larger demand than the pump right now.

And this that you gave is for modules, right? Not for modules. Modules only. Modules only.

Whatever we do is for the other manufacturers.

Yeah, sure. Great. Thank you so much. That's all. Thank you.

Thank you. Next question comes from the line of Sahil Seth with Anand Duvati Institutional Equities. Please go ahead.

As long as it's third quarter, so my first question would be, now with ALMM becoming applicable come December end, And are we seeing more non-DCR share for the third quarter, which can affect our EBITDA margin in a bit of negative way?

That's a good question, but actually, like, you know, if you look at it, the, you know, the requirement, what is required for the Suryavya Ryojana or your DCR schemes of Kusum or other C&I segment is actually growing much faster. Today, if I have to tell you, like, if the LMM is extended until December, that means even we are seeing some of our C&I projects where deliveries we have started, where the commissioning might be post-December, because, you know, it takes time to install the plant, get the, you know, connections and running, and then commission the plant. So, in fact, I think what you are going to see is a much similarly, kind of a much stronger quarter, in fact, moving forward.

So, added to Swaz, see that the Q1 and Q2 also, there is no DCR requirement. Still, we are able to run the numbers because we already have the

forecasted orders in hand.

The second very important one, what we need to also,

I wanted to highlight is that

the DCR, any one month, two months change or three months, whatever that has been extended, it is not going to affect too much to any of this thing. Reason is, all the utility scale which is being bidded as per the standard document with the DCR, they have to must ask to go, whether it is irrespective of whether the DCR has been extended to June to December or not. So, that is number one. Number two, that PM Kusrum as well as the Suryagar, it is continuing. Only small variation has taken place, going to take place is only the C&I business, which is also because of that six-month extension, it is not so easy for the people to establish and complete the entire project within five months. It is not even six months what the extension has been given. Reason could be the closing of financial to the TPA and the price to the customers and also to finally commissioning of the project. It's very clear you have to commission by before 31. So, in reality, it will not have too much effect on...

Okay, got it, sir. And, sir, previously, you have guided around 2400 crores of EBITDA for the whole FY27. Do we still stand by that guidance, or is there any update on that?

Definitely, sir. If you see the H1 numbers and last year H1 numbers, the numbers of that difference itself, if you calculate, we can definitely have a very comfortable position to reach that number.

Okay, sir, and my last question would be, if I see our revenue share per customer, the revenue share from the largest customer has increased to 44% in Q2 versus 19% in FY26. If you can shed some light on that.

So, quarter on quarter, the revenue share keeps changing, of course, because the delivery timelines and what is the thing that will always be there. This is an ordinary course of business, so I think there is nothing much to deliberate into that.

So, there is no risk in terms of credit profile for that singular customer?

Absolutely not. Like, I mean, if you see our module, the way module transactions happen, especially in MB, we do only with, we do with some substantial down payments with every order. And payments are either done before the dispatch of material from our family, or it is done with a back by LC. So there is credit profile or anything that usually does not come into the case. And, in fact, it's a very healthy way of doing, like, you know, business.

Got it, sir. And, sir, last question would be that there has been a significant decrease in other expense sequentially. Is there any individual expense with one-off expense which has led to this decrease?

There are multiple ways operational efficiency has been brought in, like in all aspects. One of the examples is power, for example, is something that we have gone more and more into open access power, looking better, substituting with the normal power. So you can see in our presentation also 100% of the power we utilized in the last quarter is with renewable energy, so which reduces the cost, you know, drastically. So this is one example. So like that, in every department does anything.

Yeah, so other than the cost optimization, this time we have some correct gain also, which is relating to the cost last time, so this is club run the license, so that also is making a difference for...

In our self-manufacturing, we have added automatic guided vehicles, which reduce the people that are required to run the license.

Okay, so we can expect a similar level of further expenses going on, too. Yeah, until the function kicks in, yes.

Thank you, sir. That was very helpful, and all the best.

The next question comes on the line of Subramanian Yadav with SBI Life insurance. Please go ahead.

Thank you, sir, for the opportunity. Sir, if you can give us some color on the order book, how much would be DCR and how much would be non-DCR, and also the order info for this product seems to be largely from IPP. If you can share some detail on that also on client or DCR, non-DCR.

So, sir, the DCR and non-DCR split of the order book is around 70% is DCR and about 30% is non-DCR.

And for the new inflow, the IPP, if you want to give some color on that.

Yeah, the new inflow is primarily from the IPP, because whatever this thing, you know, whatever for the retail and, you know, your custom market, it is mostly done on spot or with a small, you know, or timeline of like, you know, within 30 days kind of delivery timelines, whereas for the IPP is when it is coming with a more larger timeline.

So, maybe three years, kind of a bit, or two years?

No, no, delivery timelines are all within 12 months.

So, if you can also say, out of the order book, how much is

deliverable in the next one year, and how much will be in the next two years, kind of a bit. So, out of the 10-10 gigawatt order book, we should have about, like, you know,

So, right now,

we have converted more than 50% of our capacity to G12R. The remaining, we have some orders in hand for to complete the M10R, after which we will convert everything. And you have seen the transition of conversion for us from M10R to G12R is not a big deal because our lines are designed for running to the extent of G12, which is 220 mm. And so it is a quick transition for us. So every line can run at G12.

And the incremental demand this quarter and all ordering flow, everything is coming in G12R?

There is a mix of this thing in DCR. In non-DCR, everything is coming to G12R. In DCR, there is a mix of G12R and DCR.

Okay. And sir, when can this industry transition to G12R? Would that take more time?

As of now, it doesn't look like there will be a transition to G12, at least in the near future, because I think in the Indian market, as well as pretty much globally outside China, you see that most of the market is still on G12R because it is a more comfortable way for installation and after installation also structure costs and everything. So, the efficiencies are increasing and other things that are going on, which we will also be announcing.

Okay, good. And if you lastly can let me know what is the mix of DPR and non-DPR in our save question around. And how would that move over next year? Mix in our sales.

In our existing sales? Yeah, I think we said there is more than about 50% of our sales was DCR, and, you know, so majority was DCR this time.

And next talk also, the DCR component will be higher in your position?

Yeah, it's going to continue this quarter.

Okay, thank you very much.

Thank you.

Next question comes from the line of Mohit Kumar with ICICI Securities, Discworld.

Hi, good afternoon. My question is on the DCR order book. How much is DCR sales and how much in DCR model? Is it possible to break it separately?

Sorry, I mean, we are right now not giving a split, but I can – we can share that with you or, like, you know, we can share it after this thing.

Understood. My second question is on the open access and CNI, even that the deadline is now number six, Are you getting inquiries from the Open Access C&I, and are you seeing that inquiry increasing over the last three, four months?

Yeah, absolutely. Like, we have seen the Open Access inquiries consistently go up. Of course, in the last three months, there has been, you know, inquiries, there has been no changes at all, Especially because people have geared up to do DCR in their open access inquiry, which is pretty much a compulsory. So we've also seen inquiries. We've also seen, we've also seen, we've also having deliveries, execution also that has gone up for open access, including DCR open access.

So is it possible to bifurcate your order in flow in CY in Q2 between open access? Can you get some share of open access? How much will you open access in Q2?

Yeah, I think around 40 to 45% should be from open access.

Open access C&I. And that's only for more? That's okay. I understood. Thank you. Thank you. Thank you. Very helpful, and I wish you all the best. Thank you.

Thank you. Next question comes from the line of Tanae Kotecha.

With Nuwama, please go ahead.

Hi, sir. Congratulations on a good set of numbers. Just a bookkeeping question from my side. Can you please split your capacity into monoport and TopCon, your current capacity?

Sir, we have zero monoports. We have everything TopCon from the last two years.

All right.

Thank you. Thank you.

Next question comes from the line of Aritra Banerjee with Nomura. Please come in.

Yes, thanks for the opportunity, and Congress on a decent set of numbers. Mr., my first question is regarding this implementation of ALMM-2. So, do you see any possibility of it being further deferred beyond the December 23, 26 timeline, given that the cell capacity approved on the ALMM list is still not sufficient to meet the entire domestic demand, or would you expect it to be implemented in December 26?

Sir, see, I mean, like, the implementation of ALMM-2 has actually been very less to do with the capacity that is required for the overall capacity, in fact, because it's not supposed to be looked at cell manufacturing capacity versus your module manufacturing capacity, but rather it should be... Sir, I think there's some disturbance in...

Hello, for us, please.

Yes, uh, speakers, uh, uh, please go back. Mr. Panerji, please go back.

Yes, so am I audible?

Yes, you're audible now.

Yeah, so basically I was asking, do you see any risk of the AMM2 implementation being deferred after December 2026?

Sure, we got your question. So what I was saying is that AMM2 implementation after 2026 deferment looks extremely unlikely, especially that there is significant amount of time that is given for the industry to realign, And we have seen that, you know, work on the open access side has also already started. And the government is emphasizing on looking at implementation of LM3 for ingots and papers. So it looks right now extremely unlikely. And I was addressing your point on the capacity that is required for the implementation. What I was trying to say is that capacity of module versus capacity of cell is not the right thing to look at. Rather, it is to look at that there is a phased implementation of this ALMM. Whatever was projects that were bid under until August 2025, they still have some time to get into ALMM, like getting to two. In fact, in our order book, as we told you, there's 30% of non-DCR orders that we have. Many of those projects are delivered during the next year. So, that is something that means there is still demand for that. I think it's very clear that probably you will not see that extension.

That's true, sir. My second question is regarding your customer share. So, given that more and more new sell capacity is coming online, so what will you say are your top two, three key differentiators which will enable you to defend your wallet share of the top customers versus the upcoming, New entrance in the cell manufacturing space, at least, or DCI space overall?

I think for us, it's extremely clear, because we are the first top-class cell manufacturers in the country. So our track record of manufacturing, our experience of manufacturing, and the way our efficiencies are, or the product quality that is there, it is a clear differentiator, and it is something that the developer community usually recognizes extremely well. As they have done for modules itself, right? Today we have seen in modules how MBRs consistently differentiated amongst the new capacities as well as existing capacities amongst everyone. So there have always been a few players who have been able to differentiate themselves. Similarly, you will see in cell that is going to be much more the case.

And my last question is regarding the margins. So, despite the, you know, increase in raw material prices of steel and aluminum, you have still been able to defend your margins, which is commendable. So, just wanted to understand now that the raw material prices are, you know, kind of moderating. Do you see any positive impact of the same on your overall margin profile? So, just if you could convert some color on that.

See, sir, I mean, usually what happens, most of the pricing, what happens is either the raw materials that are, The promaterial pricing, efficiency of the modules or cells, and, you know, the operational efficiencies, it's a function of that when it comes to pricing. So, in case, like, you know, we have seen when silver was increasing, we were able to reduce the consumption of silver, which offset that, you know, this thing. And similarly, you know, we were able to increase the transition from M10R to G12 or increasing efficiency as well as, like, you know, increasing the efficiency naturally as well. So these are certain things that usually get, you know, transferred to the customers, right? Like, you know, eventually we have seen that these things get transferred to the customers. This is how our margin per watt peak or our ROCs are protected on a long-term basis.

Thanks for answering my questions. All the best for the coming quarter, and happy Diwali, sir, in advance. Thank you very much, Satya.

Thank you. Next question comes from the line of Prasad Hase, which is part capital. Please go ahead.

Yeah, thank you for taking my question. Am I audible, sir? Yes, yes, you're audible, sir. Yeah, sir, my first question was against our module production of 952 megawatt this quarter. Cell production increased significantly nearly 530 megawatts. So, on a production basis, if we calculate, the DCR mix stood nearly 54%, significantly higher than 47% in the previous quarter. So, ideally, what we expected was basically it would aid the gross margins for this quarter. However, if you look at, there was a bit of moderation sequential in gross margins. So if you can highlight what has been, I mean, what has led to this.

Absolutely. I mean, I think that's a good observation. But the gross margins, as I was explaining in the last question, that the pricing is a function of many things. One is the operational efficiency. The other is the RM cost. Then the third is the efficiencies of modules increasing itself. So when you look at it, you know, as a function of that is the pricing that comes into. So if you see that the improvement in operational efficiencies are also a function of the enterprise that we gave. So, if you look overall, this is how, you know, the EBITDA is justified, protected on the unit economic basis, where EBITDA for what peak, what we usually see.

On the production side, so our production volume for modules were largely flat sequentially, and the utilization levels were 44%, which we have been for last two, three quarters. So, just wanted to get some sense on if you can guidance how the utilization improvement journey could pan out over the next two, three quarters.

Sir, that's what I explained earlier that utilization for module can go at a maximum average of about 60%, but the flexibility of utilizing it further is something that we usually retain based on the opportunity scenario. Right. So, we are very conscious on the markets that we operate, the quality that we operate, and the emphasis of the production schedules and the flexibility of the, you know, configuration that happens. So, with that keeping in mind, our utilizations will be broadly in the range of, you know, 45 to 60 percent.

And so one question was on order book. So largely now our quarterly run rate has been 1.5 gigawatt. So actually keeping in view the upcoming capacity of 6 gigawatt in module, actually we anticipated some built out in orders from this quarter itself. So in next quarter, can we see some kind of quarterly uptake in the order inflows?

Certainly, we are continuing to see a quarterly update, but I'd like to highlight here that the order book that we have consists of orders that are required for the upcoming 6 gigawatt expansion as well. As I mentioned, out of our 10.4 gigawatt order book that we have, about 5 to 5.5 gigawatt is delivered within the next 12 to 15 months. And it is also important to recognize the 25% of revenue share that we are getting from the retail market, which consists of Surya Garo's now Kusum scheme, as well as small EPCs that happen. These are done mostly on a spot and ongoing basis, which 25% is also a significant amount. Then, and also, like, you know, like to highlight, most of the C&I orders that we get are distributable within the, like, you know, within a three-month period, right? So, these things are something that we'll ongoingly see. So, our order book is at a very healthy level that is required for the next financial year.

Okay. So, currently, the 10.4 gigawatt is considering the capacity additions which we are building in the next quarter.

Yes, yes, absolutely. In fact, even the last quarter was also consistent with that. This quarter is further reinforced, and this will continue to reinforce. This will continue to grow.

Okay. And so, last question was on borrowing. So, we have seen nearly 800 crores of borrowings on our books during first half. Our, you know, finance cost, however, was on similar levels on a sequential basis. So, when will, I mean, in third quarter, will we see an increase in finance cost?

Yes, so finance cost if you see, because right now this, whatever the bidet drawdown, we have taken 828 crore in last quarter, so it was basically for the new expansion for this. So the entire interest cost right now is getting capitalized, till we commission the sale and module, and so that is not having any impact on the finance cost, and in fact, reduction in the finance cost, this is because of that optimum utilization of the working capital, and also in June quarter, We have repaid around 55-56 crores of the whole entire loan. So, that is also getting reflected in this quarter. So, my finance cost is even overall lower than the...

Okay. So, since we are capitalizing, largely the quarterly run rate will remain at similar levels, right?

Yeah, it will be till December, and then when we will be leaving modular and commissions, some amount will come in March, and full amount will start coming from quarter one of next year.

Okay. Yeah, that's it from my side. Thank you for taking it.

Thank you. That was the last question on behalf of MV Photovoltaic Power Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.