Saatvik Green Energy Limited (SAATVIKGL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Sattvic Green Energy Q2 FY27 Earnings Conference Call, hosted by Motilal Oswal Financial Services Ltd. 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, this conference is being recorded. I now hand the conference over to Ms. Preksha Daga. Thank you and over to you, ma'am.

Thank you. Good evening, everyone. On behalf of Motilal Oswal, I welcome you all to the Q2 and H1 F527 earnings conference call of Satvik Green Energy Ltd. We have with us today the senior management team of the company, Mr. Nilesh Garg, Chairman and Managing Director, Mr. Prashant Mathur, Chief Executive Officer, and Mr. Rishabh Mehta, Interim Chief Financial Officer. Before we begin, I would like to remind you that some of the statements made on today's call may be forward-looking in nature and must be viewed in conjunction with the risks the company faces. A detailed disclaimer is included in the earnings presentation, which has been shared with the stock exchanges and is available on the company's website. We will begin with the management's opening remarks, followed by a question-and-answer session. Before asking your question, we request you to kindly mention your name and the name of your organization. With that, I now hand over the call to Mr. Nileshwar. Over to you, sir.

Thank you, Preksha. Good evening, everyone, and a warm welcome to the quarter two and half one FY27 earnings conference call of Satri Green Energy Limited. Thank you all for joining us today and for your continued trust, confidence, and support towards Satri. I'm joined by Mr. Prashan Matul, our Chief Executive Officer, and Mr. Rishad Mehta, our Interim Chief Financial Officer. Quarter 2 of Financial Year 27 marks an important step in Satri's journey. It was a quarter in which our execution caught up with our order book and one of significant progress on our strategic priority, the transition to a more integrated solar manufacturing platform. Before I take you through the quarter. Let me place it in the context of where our subject stands today. Our established manufacturing base is at Ambala in Haryana, where we have 4.8 gigawatt of module capacity and 2 gigawatt of encapsulant capacity. Our next-generation integrated hub is at Gopalpur in Odisha, which is where the next phase of our growth is being built. Our scale and quality have been recognized externally. We were ranked among the world's top 21 solar EV module manufacturers by TeraWatt EV Research in the first quarter of 2026 and amongst India's top four leading module suppliers by Mercom India. Let me begin with an update on our Odisha Integrated Manufacturing Project, which is the key milestone in this transition. The Phase 1 project, spread across 57 acres, comprises 2.4 gigawatt of cell manufacturing capacity and 4 gigawatt of module manufacturing capacity. I am pleased to share that commercial production at a 1.3 gigawatt module manufacturing facility in Gopalpur commenced successfully on 2nd November, 2026. And we expect the full 4GW capacity to be in place by December 2026. This will take our operational module capacity from 4.8GW at Ambala to 8.8GW, both combined at Ambala and URISA. On the cell manufacturing side, the 2.4GW line has moved from installation to trial run, which has commenced. And we are targeting production ramp-up by December 2026. The ALMM List 2 inspection has been called for and is planned within November 2026. The Odisha facility represents a significant step forward in strengthening our manufacturing capabilities. With both cell and module capacities coming up at the same location, we'll be able to serve customers with a more integrated and resilient manufacturing platform. Beyond phase one, we are progressing with the next stages of a manufacturing expansion. Phase 2, spread across 27 acres, envisages an additional 3.6 gigawatt of cell manufacturing capacity, taking our total cell capacity to 6 gigawatt, with completion targeted in the financial year 28. In parallel, we have initiated planning for Phase 3, which envisages 6 gigawatt of ingot and wafer manufacturing capacity. Phase 3 is targeted for completion in FY29 and is aligned with the ALMM-List3 requirement, which applies from June 2028. Taken together, this is how our value chain is being built. In modules, we have 6.1 gigawatt lives today, and we'll add 2.7 gigawatt by December 2026, taking us to 8.8 gigawatt. In cells, the 2.4 gigawatt line has commenced trial runs with production ramp-up targeted for December 2026, followed by 3.6 gigawatt in phase 2 in year FY28. In encapsulance, we have 2GW life and are adding 3GW by FY28, taking us to 5GW. And in ingots and wafers, 6 gigawatts is planned for FY29. Each stage has a defined capital plan and a defined timeline, and together, they will progressively deepen our backward integration, strengthen supply chain resilience, and build a more comprehensive domestic solar manufacturing ecosystem. Against this backdrop, Q2 FY27 was a quarter of improved execution. The revenue from operations grew 77% sequentially, and we ended the first half with a confirmed order book of 6.68 gigawatt. The approach remains to build a business with healthy economics and long-term value creation, rather than to pursue volumes at any cost. Let me now take you through our operational performance. In quarter two, we produced 658 megawatt of modules compared with 408 megawatt in quarter one and 792 megawatt in quarter two last year. Sales stood at 640 megawatt compared with 334 megawatt in quarter one and 538 megawatt in quarter two last year. For the half, production was 1066 megawatt and sales were 973 megawatt. Average realization was 13.49 rupees per wattpeak in the quarter and 13.89 rupees per wattpeak for the half. Effective capacity utilization was 58.5% in quarter two and 47.4% for first half. And with Odisha now coming on stream, we see room to improve it. Domestic customers contributed 96.7% of quarter two revenue. Moving to the order book, our confirmed order book as on 30th September 2026 stands at 6.68 gigawatt, equivalent to about 110% of our installed module capacity of 6.1 gigawatt. During the second quarter, we added 970 megawatt of new orders and executed 640 megawatt, taking the order book from 6.35 gigawatt at the start of the quarter. For the half, new orders were 1.76 gigawatt and executions were 970 megawatt. Recent VIMs include an order of 2.476 crores from Vikram Engineering in August. The metric module orders of about 190 crores in August and 297.5 crores in September. And an order of 1,041 crores from the SECI, Solar Energy Corporation of India in September, and an order of 100 crores from MSE DCL in October. Let me now turn to the industry, because the shift that is underway supports our strategy. The solar manufacturing industry is going through an important structural transition. In a module-led model, competition is largely on capacity and price, with heavy reliance on imported sales and margins exposed to commodity and currency swings. In an integrated cell-led model, domestic sale capacity becomes an entry barrier. Integrated players are better able to secure supply, and vertical integration becomes a structural advantage on cost and margin. Policy is guiding this shift. ALMM List 1 for modules has been in force since April 2021. ALMM List 2 for solar cells came into force on 1st June 2026 with a limited exemption for net metering and open access projects commissioned by 31st December 2026, and the Ministry has been clear that there is no blanket extension. ALM lift 3 for ingots and wafers applies from June 2028, and manufacturers seeking enlistment for wafers must have equivalent ingot capacity. The metric cell capacity is still only around 37 gigawatts, against well over 200 gigawatts of module capacity. The government has also indicated that it is preparing a support scheme for polysilicon manufacturing. Integrated manufacturing is therefore expected to become a key differentiator in the evolving industry landscape. Demand remains strong. India added about 20.8 gigawatts of solar capacity in the first half of this financial year, following the required 44.6 gigawatts in FY26, an increase of 87% over the previous year. Non-fossil capacity stood at about 238 gigawatts in March 26 against the 500 gigawatt target for 2030, using a gap of roughly 217 gigawatts to be filled, and annual solar demand is expected to go from about 50 gigawatts in FY27 to 85 gigawatts by FY30. Government programs are adding to this momentum across segments. Under PM Surajarish targets, 1 crore households, more than 50 lakh households, now have rooftop solar. July 2026 was the strongest month since the scheme's launch, and the government is targeting 75 lakhs by December. PMQSUM projects are working to the completion deadline of March 2027, and the next phase of the scheme, which is expected to include an Agri-PV component, is being finalized. In the commercial and industrial segment, open-access solar alone is estimated at 20 to 25 gigawatt of opportunity, as large corporates increasingly adopt renewable energy to meet their ESG goals. Globally, the United States will begin applying Section 232 tariffs and minimum import prices on polysilicon-based products from 4th of December, and duties on solar cells and modules from India are also moving ahead. Exports are only about 3% of our revenue, so our direct exposure is limited. Satric is building for India's domestic demand. SAPLIC is well positioned for this transition. Our strategy is centered on strengthening our core module and cell manufacturing capabilities, followed by deeper backward integration into ingot and wafer manufacturing, supported by ancillary capabilities such as encapsulants. This deeper integration will give us greater control over key inputs, enhance operational resilience, and help us manage the impact of commodity prices, foreign exchange movements, and global market volatility more effectively. At the same time, we are continuing to diversify our customer base and market presence. We have entered the B2C segment, and we are strengthening our distribution network. We launched our QuadCut.com. 3.0 dual glass bi-facial modules at the Renewable Energy India Expo 2026. We are expanding our portfolio through the Utrecht Surya Connect solar kit for residential and small commercial customers, the Uber Plus hybrid inverter, lithium battery solutions for energy storage, and e-commerce sales that extend our reach to customers directly. Our other businesses are still small, but they are growing. EPC, solar pumps, transformers, inverters, encapsulants, and batteries together contributed to $408 million of revenue in Quadra 2 and $64 million in first half. And this is now being supported by new products including the QuadCut TopCon bifacial module unveiled at the IEI Expo and a new hybrid inverter range. On solar kits, we have compared the technical, commercial, and pricing aspects of kits and key system components to identify best-in-class configurations, finalize the mounting structure design, and standardize the balance of system. These steps widen our reach into the residential, C&I, and storage segments alongside our core module business. Our vision is to move from being a solar module manufacturer to an integrated energy platform, serving utility scales, C&I, agricultural, and residential customers through one portfolio, enabled by modules, inverters, transformers, and in-time battery energy storage systems. That means capabilities across manufacturing, power electronics, storage components, and a broader energy infrastructure. Finally, let me say a word on responsible growth. Satvik has received its first-ever Eco-Radius Bronze Medal, placing us in the 79th percentile globally, a major sustainability milestone. We received the Golden Pico Occupational Health and Safety Award 2026 and the Pritzley Award 2026 from the ESG Research Foundation. Our Ambala facility holds the IGBC Green Factory Building Silver Rating, and we were named Brand of the Year at the India Power and Renewable Leadership Awards 2026. These recognitions reflect the culture we want to carry into the next phase of growth. With that, I will now hand over the call to our Interim Chief Financial Officer, Mr. Rishabh Mehta, to take you through the detailed financial performance for the quarter. Thank you.

Thank you, Eliji, and good evening, everyone. I will now take you through the financial performance for quarter 2 and the first hour of fiscal year 27. Revenue from operations for quarter 2 FI 27 stood at $9026 million compared with $5110 million in quarter 1 FI 27, a sequential increase of 77%, and $7680 million in quarter 2 FI 26. EBITDA stood at $676,000,000 with an EBITDA margin of 7.7% compared with $425,000,000 and an 8.3% margin in quarter one, FI27, and $1 to $63,000,000 in quarter two, FI26. Other income was $253,000,000. Profit after tax stood at $202 million compared with $54 million in Q1, FI27, and $847 million in Q2, FI26. The improvement over the previous quarter was primarily given by a higher sales volume. For the first half of FI27, revenue from operations was $14,136 million against $16,838 million a year ago. EBITDA was $1.1 to $1 million, a margin of 7.9%, and profit of the tax was $256 million. Module sales accounted for about 96% of H1 revenue. From a balance sheet perspective, a debt-to-equity ratio stood at 1.37 times as on 30 September 2026, compared with 0.99 times in June 2026, and 0.44 times a year ago. Reflecting the build-out in Odisha, capital expenditure in H1 was $5,001 million and capital working progress stood at $8842 million, up from $3841 million in March 2026. As Odisha is commissioned, these assets will move into operation and begin to contribute to revenue. On working capital, inventories were $9074 million compared with $7016 million in March 2026. As we built stock ahead of Odisha in order execution. Disables came down to 4855 million, from 6988 million, and trade payables worth 4705 million. We are conscious that leverage has risen during the build phase. Our focus in the coming quarters will be on commissioning on schedule, improving capacity utilization, and managing the balance sheet with discipline as a new capacity begins to generate cash. With that, we will now like to open the floor for questions and answers. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their 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. Anyone who wishes to ask a question may press star and 1 on their 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.

The first question is from the line of Abhishek from Motila, Oswal.

Please go ahead.

Yeah, hi. Thank you so much for the opportunity. Two questions. Number one, if you can just, you know, give us some details around realizations for various segments in DCR and non-DCR right now. So utility scale, you know, retail, C&I, what are the realizations right now?

Okay.

So, in terms of our, yeah, good evening, Abhishek. In terms of our revenue breakup, C&I accounts for about 28%. Utility accounts for about 52%, 52-55%. Export is about 3%, and retail is about 12%. So, and other revenue is about 4%. So, that is on the revenue break-up. In terms of, are you talking about price realization?

Yeah, yeah, Prashanthi, actually, I was talking about, like, what are the pricing in DCR, non-DCR in various segments right now? Like, what I'm hearing around 2021, for example, for what peak in the utility space from other companies, is there a number that you guys are also encountering?

Yes, that's correct. For TopCon, the prices are somewhere around these numbers only. And for non-DCR, the prices are somewhere around 13 rupees, 12, 12 and a half, 13 rupees.

And this is for delivery in Katsai, 29, I guess, 28, 29, right?

No, that's the current, what we are talking about.

Current price, okay. You got it. And second question is, you know, you might have seen this news about China export controls relating to technology transfer for sterile vapor. So, does that impact you in any way, especially for phase two of the sterile capacities or even for the inward user capacities?

So this policy change has been announced. We are taking a close watch on how it develops. So it is expected to come somewhere around 15th of November. But China has announced these kind of measures earlier also, but that has really not worked out. In fact, we have done the groundbreaking over phase two cell manufacturing, which is 3.6 gigawatt. Apart from that, China does not really own the technology. There are options outside China also, especially in Germany. For alternative sources for cell manufacturing equipments, the only reason why China was prevailing was because of the cheaper equipments which were available there. So, it does not really hamper the cell manufacturing or ingot waste of manufacturing to come to India. So, we are not very worried about this. I think it will... It will just die its own death over the years, over the period of time.

So, just trying to, you know, understand this a little bit better, for all the, you know, capacities which are coming up, maybe, say, second half of the next cycle, will the technology transfer agreements be done already, and do you think maybe they will not be impacted even if this thing comes through?

So, Abhishek, it's really difficult for me to really comment because, as I said, there have been a couple of times earlier as well when those measures have been announced from China, but there have been ways how the technology has actually moved outside China. So, um... So ideally, it should not delay or derail any of the projects. The good news is that our first phase is ready, and the other thing is that our tie-up for our second phase is also there. So, you know, it should not derail or delay any of the equipments for cell manufacturing.

Got it, sir. So just one last question.

Sorry to interrupt, sir. Should you have a follow-up question? Please rejoin the queue.

Okay, sure.

Next question is from the line of Jainam Jain from IIFL Capital. Please go ahead.

Thank you for the opportunity and congratulations on the good set of numbers. Sir, can you please throw some more light on this studio connect kit which we have launched for the residency customer in terms of on helping us understand the business dynamics, how the dealership network we have, and what sort of competition I will be seeing in that segment.

Thank you, Mr. Chairman, for the question. So, Surya Connect is basically the solar kit which we have recently launched. As you can see, the industry is moving from B2B to B2C, and with the PM Surigre scheme, more and more residential is now adopting to solar technology. In fact, one crore homes were to be solarized in the first part of the scheme, the first phase. And almost 57 lakhs solarization has already happened, and various must be in the pipeline. So the scheme is running very well, and, you know, more and more customers, you know, along with our modules, have been asking for panels, for inverters as well. So we launched the Solar Kits as a turnkey project wherein people can order through our distributors as well as online, and then they can get this installed by a local INC register player, which gives the power with the customer to take the decision on going with one single brand. For this, we are creating our distribution network to every district and to every village. Currently, for the B2C, we have already developed a distribution dealer network, reseller network of close to about 85, 90 distributors across India, and we are in process of adding more and more resellers, distributors. So, this is well aligned with how the residential rooftop. It is going to move toward in the future.

Okay, sir. And, sir, in terms of competition and what stands as a right to win within the segment, because I understand, I believe that there must be a lot of competition from the other competitors as well, right?

So, you know, there are 140 crore people and there is competition in India in every field, but what we believe is that, you know, based on our brand equity, giving a solar kit as a solution, there are very few people, companies who are doing it and doing it successfully. And we have consciously focused more and more on the B2C segment now with our various marketing campaigns as well as to create awareness because solarization has to happen. And, you know, there's little brand visibility currently on this from a consumer point of view, and this is a great place to really penetrate into, and that's why we have this solo kit.

Okay, sir. Thank you so much, sir. Thank you.

Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star and button on their touchtone telephone. Next question is from the line of Myra Mittal, an individual investor. Please go ahead.

Myra Mithil, you're not Audible.

Hello, am I Audible now?

Yes.

Yeah. So, my question is that you're expanding beyond the solar model manufacturing into EPC and solar pumps, which BES has also identified as a planned opportunity. So, what is the strategy for these businesses and what contribution do they expect to make to revenue and profitability over the next two to three years?

Thank you, Ms. Mayra, for the question. So, the industry is now moving towards a fully integrated model, and it's like we have already got into cell manufacturing, which are we getting into in-water and wafer manufacturing. As well as ancillaries like encapsulant. And so to have a better control on the supply chain and on the cost because, you know, that's how the industry is moving towards. Typically in a solar project, along with the panels, you have the inverters, you have the structure, you have transformers. And the reason why we are getting into these products is because these are allied products, and we want a better share in any project. So, the solar panel contributes to almost about 50-60% of the project cost. Inverters contribute to about 10%, and then you have transformer. So, we want to increase our share in the solar project. To about 70-80%. So that's the reasoning why we are getting into these businesses. In the first half of the year, so last year, our contribution of non-solar panel was somewhere around 2.5-3%. This year, we're already at 4%. And we are targeting in the next two years to increase this share to about 15% of our revenue. The reason is to have a better control and better spread to de-risk our business as well.

Thank you, sir. And so, you know, module capacity also expected to increase to F.28 and sell capacity to six. So, what is your view on the revenue and volume growth in your outlook for F.Y. 27, 28, and EBITDA margin also? What trajectory you factor?

Sorry to interrupt, ma'am, but there's so much background noise from your side.

Okay. Is it better now?

Yes.

Yeah. So my question was, like, so with the module capacity expected to increase to 8.8 gigawatts and cell capacity to 6 gigawatts, so what is the management's revenue volume growth for FI 27 and 28?

Yeah. So, what we are doing is, as I said, integrated. So, ultimately, you know, your entire facility will be integrated. So, currently, you know, 8.8 gigawatt of modules, 6 of ingot, wafer, and cell. So, this is how we are moving. In terms of our revenue projections for this year, It is in the range of about 6,000 crores with an EBITDA of about 12%. That's how the outlook has been and the projections have been given for this year.

Thank you.

Thank you. Next question is from the line of Maesh Kumar from MU Investment. Please go ahead.

Thank you for the opportunity. So, my first question would be correct. Sorry to interrupt.

Sir, your voice is breaking. Can you please use your hand, sir?

Is it fine now? Is it clear?

Yes.

Good morning, everyone. So, I was asking that, what is the current status of commissioning and stabilizing of the phase 1 of Odisa project, comprising of 2.5 gigawatt cells and 4 gigawatt module capacity, and what is the timeline for optimal utilization of that plant?

Okay. So, for the module, our first phase, 1.3 gigawatt has already been commissioned. Last week, or maybe like three, four days back only, we received our consent to operate from the government, and now ALMM inspection is, we are lining up that inspection, so hopefully in the next two, three weeks, we will have ALMM, and then we will be able to generate revenue from Odisha, from our module plant. And then the rest of the phase will come in December for the module. In terms of cell, so cell 2.4 gigawatt is under ramp-up right now. So the equipments have already been established. We have started trial runs and production, and currently we are in ramp-up stage. We are expecting to, after this Diwali, we will be calling for ALMM inspection for cell, and expectedly, by end of November, we will have the ALMM inspection done, and ramp up.

And so, with the industry, if you see, it's gradually shifting towards...

Sir, your voice is breaking.

So, I was asking, like, if the industry is gradually shifting towards integrated cells and module manufacturing, how does Sathvik assesses its competitive positioning against peers?

Yeah, so, the industry is now moving towards cell-led competition. And so... There are still non-DCR orders in the system, which in our account is about 70-80 gigawatts. In some accounts, it's still even more. And our first phase 2.4 gigawatts and second phase 3.6 gigawatts will give us 6 gigawatts of... Cell capacity. With some additional equipment, we will be adding some more capacity into the 6 gigawatt as well. So, we are well positioned from our cell plus module model, and also that... That transition will happen somewhere in next year, rather full year, non-DCR plus GCR both will work out, and by the time, our second phase of cell will also come up. So that's how the transition is going to happen in the next transition year.

Okay, okay, sir. And if, like, how does company plan to manage module price correction and ROM material cost fluctuation while, you know, protecting our profitability?

Sorry to interrupt, sir. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Himesh Pandya from NP Investments. Please go ahead.

Hello, sir. Hello, sir. Am I ready?

Yes.

Sir, I have a couple of questions, sir. With the commissioning of Odisha, cell manufacturing facility, what level of margin improvement does management expect from backward integration? And, sir, when are these benefits likely to reflect in financial performance, if you could highlight on these points?

So, the benefits should start hitting from third quarter partially, very, very partially, but fourth quarter onwards, it should really show us the real benefits, and then from the first quarter with full yield and the... Full optimization of the plant, next year will be wherein we will get the entire from this 2.4 gigawatt. In terms of our margins, we cannot give a number, but it will be in line with our peers who are already in cell manifesting. So, those kind of numbers, you can refer to their results, and it should be somewhere in the close proximity to those.

Understood, sir. Understood. So, my second and last question is, what is the current sourcing arrangement for the during, sorry, required at the Odisha cell facility? And how will the company manage import dependence and potential cost fluctuations until it's proposed, you know, ingot and water facility becomes operational?

Yeah, so on the wafer side, we are already working on long-term contracts with the Tier 1 suppliers in China. So, already, as I said, we have started ramping up our cells. We are producing in very, very small quantities already cells. So, the wafer tie-ups and buying has already happened. From a long-term perspective, the government, ALMM3, is going to kick in in June 2028. So, we are aligned with this policy change, and we are also setting up a 60-gigawatt ingot wafer manufacturing that is going to also come in Odisha. So, from a long-term perspective, we will be getting into our own manufacturing. Other supply chain also, like encapsulant is another. So, raw material, which is very important raw material, and supply chain is always a problem there. So, we already have 2 gigawatt manufacturing of N-capsulants, in which we are also expanding now to 5 gigawatt.

Understood, sir. Thank you. Thanks a lot. That answers all, Navishu. Thank you.

Thank you. Next question is on the line of Abhishek from Otila Loswal. Please go ahead.

Yeah, thank you, Guru. So, just one clarification. So, I think you said 6,000 crores in revenue and 12% EBITDA margin. Does that refer to FY27 or FY28? So, that's my first question.

FY27, that is the guidance.

Okay. Because we've done, like, I think, you know, about 6%, 5% odd in the first half. So, you know, average 11% for the full year says, means, will be like, you know, north of 16-17% in the second half.

Yeah, so, with the self-commissioning, we are expecting that our EBITDA in the last four months of this financial year will increase. And that will affect the overall envolveter.

Okay, okay, fair enough. And is it possible to know the order book breakup between DCR and non-DCR?

Yes, so the order book breakup is about 60% DCR and about 40% non-DCR.

Okay, and DCR, like, like, is it possible to give us some sense of, you know, average margins for DCR? Typically, people are saying DCR will be around, you know, 6 to 7 rupees or so every day per work peak. Is that a good number to work with?

Yeah, it's, as I said, it's, it's going to be in line with, with whatever peers are getting, so. Should be around the same numbers.

Okay, okay. All right, and this last question, can you give us a sense of, you know, you already told us a bit on the cell utilization from 2.4 gigawatts, but module utilization in FI28 and even the cell utilization in FI28, what is one of the most common?

Uh, it's really difficult to give, but, um, Yeah, I think it will be a forward-looking statement. I don't think it will be fair to give those numbers, but, you know, this year is particularly a realignment year because ALMM1 and ALMM2 transition is happening, and then June, it happened, and then July, it was reversed. And now we are expecting it to get kicked in from 1st of January. So this year particularly is a realignment year. And obviously because of the commodity pricing and, you know, all that changes which are happening in the industry. By and large, this will get sorted out by next financial year. So I think the next financial year, it's going to be a much smoother run with higher capacity utilization. For CEL, obviously, there's huge demand for CEL. So we are looking at above 90% capacity utilization in CEL, and that's what we are targeting. In module, you know, last year we were at 85% capacity utilization. This year is about 58%. Yeah, 50-ish percent, which I think should improve in the second half of the year. But the next year we would love to be back in the 80s capacity utilization in module.

Perfect, sir. Very clear. Thank you so much.

Thank you. Welcome, Madhimi. Thank you.

Due to time constraint, we hand over the call to the management for closing comments.

Thank you, KORUS team, and thank you, everyone, for your questions. Before we conclude, let me briefly summarize our priorities for the coming quarters. Firstly, we remain focused on ramping up our URISA module line to its full 40-hour capacity by December. Second, we will ramp up our cell manufacturing line towards production by December and progress towards completion, completing the LMM List 2 process. Third, we will focus on the timely execution of our 6.68 gigawatt order book while continuing to strengthen our order pipeline. At the same time, we will remain disciplined in managing our working capital and overall balance sheet. Start with is steadily transitioning from a module assembler to a more integrated solar manufacturing company with capabilities spanning in Tepsolent modules and cells. This backward integration will be important in strengthening our margins, improving supply chain security, and creating sustainable long-term value for our stakeholders. We believe we are at an important stage in our growth journey, where our investment and strategic initiatives are translating into manufacturing capabilities and business opportunities. With this, I would like to thank all of our investors, analysts, and stakeholders for their continued trust and support. For further queries or clarification, please feel free to reach out to our investor relations team at EdFactors, who will be happy to assist you. Thank you again for joining us and wishing you all a very happy Diwali.

Thank you. On behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.