Solarworld Energy Solutions Limited (SOLARWORLD) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Solar World Energy Solution Limited Q4FY26 Earning Conference Call, hosted by MUFG in time. As a reminder, all participant lines will be 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 has been recorded. I now hand the conference over to Mr. Nikocinth from MUFG. Thank you, Anu, to you, sir.

Thank you, Julius. Hello, everyone. Welcome to Q4FI26, Morning's Call of Solar Gold Energy Solutions Limited. From the management today, we have Mr. Tartik Tilkriya, Managing Director, Mr. Mukurt Goyal, Chief Financial Officer, and Ms. Varsabharti, Company Secretary and Commerce Officer. We must remind you that the discussion on today's call may include certain forward-looking statements that may involve known and unknown risks, uncertainties, and other factors, and must therefore be reviewed in conjunction with the risks the company faces. Future results, performance, or achievements may differ significantly from what is expressed and implied by such forward-looking statements. Now, I hand over the call to the management for the opening remarks. Over to you, sir. Thank you.

Thank you, Nikunj. Good evening, everyone, and thank you for joining us today. I am Karthik LTR. On behalf of Solar World Energy Solutions, I extend a very warm welcome to all the participants. on our Q4 earnings call. I hope you have had the opportunity to review the presentation that has been shared on the stock exchanges. Before discussing our performance, I would like to briefly highlight the broader industry context. India's renewable energy sector has entered a structurally stronger phase over the past 12 to 18 months. Supported by rapid capacity additions, improving project economics, rising energy security needs, and increasing demand for reliable clean power. The sector is now evolving from being a purely capacity-led to becoming more focused on reliability, grid stability, and integrated energy solutions. Second, India's solar sector continues to witness strong momentum with India's solar capacity projected to reach around... 348.57 gigawatts by 2031, while global solar capacity is expected to exceed 7 terawatts by the end of the decade. At the same time, the industry is witnessing a very significant shift from standalone solar projects to solar plus storage solutions. BESSs are becoming increasingly important, with demand expected to grow from 30 gigawatts to about 250 gigawatts by financial year 32. Policy and regulatory support remains strong. The union budget for FY26 increased solar allocation by approximately 32%, while initiatives such as PM Suryagar, PM Kusum, and National Green Hydrogen Mission are expected to further support adoption across residential, agricultural, commercial, and industrial segments. In addition, regulatory changes such as amendments to the PERC-GNA framework are improving transmission access and supporting large-scale storage-backed renewable projects. Solar combined with storage is also becoming increasingly cost-competitive with conventional power, especially for peak demand requirements. Demand from commercial and industrial consumers distributed renewable energy. Data centers and large industrial loads is also expected to grow meaningfully. Against the backdrop of a rapidly evolving renewable energy landscape, FY26 has been a defining year for SolarWorld. The sector is clearly moving towards integrated clean energy solutions where solar generation, storage capability, execution strength, and domestic manufacturing are becoming increasingly important. Within this transition, BESS are emerging as one of the most critical growth areas. And we have taken decisive steps to position SolarWinds strongly in this opportunity. Q4 has been a highly productive quarter for the company, marked by strong progress across execution, capacity expansion, and strategic initiatives that reinforce our long-term growth trajectory. We delivered a strong operating performance during the quarter, with revenue and profit after tax increasing significantly year on year. Mukurt will take you through the financials later. The performance reflects the strength of our execution capabilities, healthy project momentum, and benefits of our expanding presence across solar EPC manufacturing and energy storage. Energy storage continues to remain a key strategic priority for us. India's storage market is expected to witness strong long-term growth, and we are aligning our business model to capture this opportunity through both manufacturing and EPC capabilities. We are targeting a 60-40 BEST to solar EPC revenue mix, which will allow us to participate meaningfully in the country's rapidly expanding storage ecosystem, while building a more diversified and resilient revenue base. On the VESS side, our ongoing projects now aggregate to about 582 MW AC. 1.2 gigawatt hour BP, reflecting meaningful progress in one of the faster growing segments of the renewable energy value chain. During the quarter, we also strengthened our position through key BES-EPC orders, including projects at NDPC thermal power stations in Solapur, Maharashtra, Unchahar, Uttar Pradesh, aggregating to about 514 megawatt hours, with a combined order value of about 5 billion, including ONM. Together, these orders reinforce our execution capabilities and mark a significant step forward in our energy storage journey. Our overall order book remains strong and provides healthy revenue visibility over the coming quarters. The ongoing order book stands at approximately $28 billion, comprising $16 billion from solar EPC and O&M projects, and about $11 billion from BEFF EPC and IPP-related projects. The order book reflects a well-balanced mix across solar EPC, O&M, and battery storage, and positions as well for sustained growth. During the quarter, we also secured a significant DOS package from NTTC-REL for the development of a 216 MW DC grid-connected solar PV project in Beacon Air valued at around $2 billion, including O&M. This order further strengthens our presence in the utility-scale solar EPC segment and demonstrates our continued ability to win mandates from marquee public sector customers. FY 26 marked an important milestone in our manufacturing journey with the commencement of the operations in our 1.5 gigawatt solar module manufacturing facility in Rolgi. Spread across 7.5 acres, the facility is equipped with the most modern and fully automated ATW and Horad lines and represents a significant step forward in strengthening our backward integration and domestic manufacturing capabilities. The facility manufactures high-efficiency top-one solar panels ranging from 600W to 750W across M10R, G12R, and G12 configurations. In addition, our 3.4GW fully automated best manufacturing facility equipped with Luka Robotics is ready with trials currently underway. The facility is central to our strategy of building a strong presence across the energy value chain and will support our ambition to scale best revenues meaningfully. We are also progressing well on our backward integration with a 5GW junction box manufacturing line being established in a joint venture. The site is now ready for trials. Further, our 1.2GW solar cell manufacturing facility is progressing on timelines and is currently under development. The commercial operation is targeted by June 2027. These initiatives are expected to enhance captive consumption of modules, self-improve margins, reduce supply chain dependency, and mitigate volatility arising from policy and market changes, including ALMM-linked requirements. Beyond capacity expansion, our focus remains firmly on innovation, technology, and efficiency. We are accelerating our R&D initiatives towards higher efficiency solar modules and advanced solar technologies. Our objective is to drive innovation-led growth, improve product performance, and offer integrated solutions that meet the evolving needs of our customers. Strategic partnerships will also remain an important pillar of our growth strategy. We are focused on building alliances that provide access to advanced technology, vital distribution reach, and improved cost efficiency. At the same time, we are working to broaden our customer base across PSU and private sector segments. This will also help reduce client concentration risk and create a more balanced business portfolio. Looking ahead, our priorities are clear. We will continue to scale our best platform, execute our solar, EPC, and storage projects with discipline, optimize our backward integration, and invest in technology-led capabilities. With a growing presence across solar manufacturing, EPC, execution, and battery energy storage, SolarWorld is well-positioned to build a resilient multi-revenue stream business. With this, now, I would like to hand over the call to Mr. Mupput Goyal, our TFO, who will take you through the financials.

Thank you, sir. Hello, everyone. Good evening. I welcome you all to this call. As we present our results for Q4-4 FY26, I am pleased to report that Solar World Energy Solutions Limited has delivered stable and promising financial performance, reflecting operational resilience and strong execution across business segments. For the quarter ended Q4 FY26, our revenue from operation is stood at Rs. 591 crore, representing year-on-year crore of 35%. Our EBITDA stood at Rs. 73 crore and margin stood at 12.1%. Supported by better supply chain optimization, favorable input cost management, our profit after tax for the period was Rs. 49 crore, translating into an ad margin of 8.1%. For the financial year 26, total income is stored at Rs. 1416 crore, representing year-on-year growth of 157%. Our average is stored at Rs. 187.9 crore and margin is stored at 13.3%. Our pet for the period was Rs. 120.4 crore, translating into a net margin of 8.5%. On the balance sheet side, for the year ended, March 31st, 26th, our net worth stands at 844.8 crores, while total debt-to-equity ratio stands at 0.3 times. Looking at it, our financial strategy will continue to emphasize capital efficiency and facilitated cash flow generation with clear visibility on capacity addition and a healthy order pipeline. We are confident of maintaining strong revenue momentum and expanding profitability in the coming quarters. Our approach remains guided by product, financial management, operational excellence, and long-term shareholder value creation. Thank you.

Over to you, Nikunj. Good morning, everyone. Yes, sir. We proceed with Q&A.

Yeah.

Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and 1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Kesha from BHH. Securities, please do that.

Hi, Karthik and KK Madhalsa here. Hi, sir. So, finally, we get to speak. So, sir, in Q1, we had promised that you'd give us a 1500 extra top line with a 11% fat margin. So, we are right now at a 8, 8.5% fat margin and the top line is not anywhere close to that. So, can you comment on this and what is the guidance for the year going forward?

Thank you. Thank you for that question. So my top line is close to about 1376 crores. And I think with other income, we are close to about 1416 crores. So what I would like to take you through is from the December quarter, two things that are very important here is first, you have to look at my ETC business and my module business separately. If you look at my EPC business, my pack margins are close to 10.5%, which are, I think, amongst the best in the industry. My module business only got its ALMM approval in December 2025. And we only got about two months to run that line to two and a half months. So there has been a slight loss in that module business, which I think we will cover in this year. Secondly, on the overall side, you will also have to see that Q4 for all the companies has been very, very challenging. All the raw material prices have significantly increased in the last quarter, either owing to the war that is currently going on, which has created a lot of headwinds. So there has been decent margins, our margins would have been slightly better, and we could have achieved more revenue also had these headwinds not been there.

Thank you. Can you give us guidance for the next year?

So, in terms of guidance, my order book currently stands at about 2,800 crore. We hope to continue and achieve maybe 70%, 70-75% of this order book in the current year. Currently, because of the war, as I said, all the raw material and raw material prices are significantly raised. If the war situation subsides, we are hoping to maybe carry on our current margins to the current year.

So, what you are saying is broadly, 1900 to 2000 crore broadly is the top line, and the margins could be 8%, 9%, 10%, or 11%. What would you want to say for the current number of margins?

So, see, in EPC, I always say that margins are somewhere between 9% to 11%, depending on where you are in terms of raw material price cycle, and this is an abnormal year currently going on because of the war. So, I would say that if this war supplies, our margins would significantly improve. But if it doesn't, then there is a possibility of a slight downside also. So, we would say somewhere between 8 to 11% is where we should lie in terms of overall margin.

Got it. Now, one last question. So, we had raised money like 430 crores worth earmarked for a battery cell manufacturing unit. So, in Q1, it will be operational by December 2026 to January 2027, and later on, you had said January 2027. So, where do you see this unit starting and contributing to our margins? Because our raw materials cost will significantly come down with this unit starting, sir.

Yes, yes. So, firstly, we have decided that this line will start by June 2027 commercially. We are still on target to achieve that timeline. This was a solar cell line, 1.2 gigawatt, which is coming up in Pandurna. We have received most of our approvals and construction is going to start maybe in June itself. So, we should achieve our June timeline easily and start commercial production. And with ALCM 2 now coming in, we also see a lot of positive upside from that line coming in.

Okay, that's all from my side. Thank you so much. Thank you. Thank you.

Thank you. A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Turvin Shah from HDFC Securities. Please go ahead.

Yeah, hi, sir. So, I was looking at slide number 7 in your presentation. There is reported the total capacity of completed projects. That on AC or DC basis has not changed through the quarter, but these recorded revenues. So, if you could put some tight on that, what exactly, how to look at that?

So, actually, see, we can add the capacity only after it is fully commissioned. So, if you go through our presentation, you will see that we are about to finish a 272 MW project in the month of June itself. So, that will add 272 to the 348 number you are seeing, and another 70 MW is getting completed in June as well. So, if you add that, I think this is going to go to close to about 600 megawatt in the next month itself. But this capacity only changes once we finish a project and hand over the project to our customers. So, maybe in the next quarter when we have this call, you will see maybe 700 megawatt in this place. And by end of the year, this will go significantly higher, maybe close to about 1.5 gigawatt.

Understood, understood. Second question would be regarding the SJV and dispute. So, we've filed claims with DAB works 219 crores and we've taken 52 crores as receivables on the books. So, the amount that we are actually expecting would be 52 crores as of now, right? That is how I look at it.

So, to be honest, what happens is when we bill our customer, that is the revenue we record in our books. Then, when the payment is delayed from our customers, we are entitled, or when the project is delayed because of a fault on the part of the customer, we are entitled to various kinds of claims, like idling charges, interest charges on delayed payments, and loss of profit charges. So we have filed all those claims. But as per NDIS, we can only record those amounts in our books of account once we receive an award from the dispute resolution board, which is the adjudicator. So while we have only recorded our invoices, the amount that are recoverable should be much higher. Essentially, if you ask me what I would say bare minimum we could get is our outstanding amount, interest on the delayed payment, then idling charges, which are also We have raised a significant amount for loss in profit because of the delay in the project from SJBN, but that has to be seen how much of that amount is awarded to us actually. So, once we become certain of the exact amount that is recoverable, we will record that as well, but it will definitely be higher than what is recorded in our books.

Thank you, sir. I'll get back on the queue. Thank you. Thank you.

Thank you. The next question is from the line of Deepak Pudar from Sapphire Capital. Please go ahead. Yeah, I'm audible, sir.

Yeah, yeah. How are you? Yeah, yeah. I'm doing good. Thank you very much, sir, for this opportunity. So, just first of all, I wanted to understand this fourth quarter. Why was there a very high improvement in your other expense?

Sir, you will have to give me a minute.

I mean, spike in your other expense.

Sir, just give me a minute. Sir, the question is regarding other expense or other income?

Other expense. Other expense went from 74 million to 83 million. I don't see a very high increase. Are you seeing Q4 2025 to Q4 2026? Yes. Sir? So, last year, my total revenue was about 550 crores. This year, my revenue is about 1,400 crores. That's a two and a half times increase. So, my other expense has also gone up. Secondly, last year, there was a write-off of about 140 million related to one of my private customers, which we have recovered in the current year, which is showing in other income. So, that is why that expense has proportionately, while it has gone up, on a sequentially, you are seeing a lower number.

Okay, okay. I got it. I understood.

So there's a write-off here which has not happened this year, basically.

And this 3.4 gigawatt best capacity, what is the KPIX involved there?

Sir, KPIX is close to about 55 to 60 crores.

And we have already spent it, right? I mean, because we are under... We've already spent a line at under trial. And what can be the revenue potential of this?

So, one container, we can make about 740 containers in a year, full capacity. 740 containers at maybe 4.5 crores each. That gives you about 333 crores of, 3,000? 3,000 crores of revenue per year. At full capacity.

And what would we margin profile for us?

So, BES typically has better margin profile compared to solar, so I would say somewhere between 14 to 15 percent is what we should expect.

14 to 15 percent of PBT margins. 14 to 15 percent of PBT margins.

Okay.

And when we say this, I mean, close to 2,000 crores kind of execution this year, so how much we are building in from BES, FI27?

So, I'll give you a breakup. My solar EPC currently stands at order book of about 1,674 crores, and base is close to about 1,136 crores.

Yeah.

I don't know, so I was trying to understand out of this 2000 close, I mean, the proportion will remain safe.

I'm mostly going to finish my best projects this year, because the timeline for most of my best projects is June 2077, so I would expect that most of my revenue would be booked by March. And whereas on the solar EPC, we have a slightly longer timeline.

Okay, okay, okay, I got it, I got it.

So, between a BEST project and a solar ECT project, BEST projects do not suffer from land acquisition delays and other delays, because they require very, very little land, and tend to be very close to the substation. So, delay risk potential in a BEST project is much lower compared to a ECT project in solar.

And cell we are sourcing from China?

Sir, right now from China. There is no supplier in India. So, lithium cells will come from China.

Okay, I understood. And just one last thing, what is the we are looking at for FI27, new order in flow, we are looking at in FI27.

Sir, order, so because most of my business we get from PSU customers, and this tends to be a reverse bidding mechanism, to predict how much orders we will get is very difficult. But looking at our past experience, we have been growing fairly, fairly fast. So we went from 550 to about 1,400 crores this year. Hopefully we can kind of keep increasing our order book. If you look at slide 12, you will see where our revenue and order book has been going. So you will see that we are growing very, very fast in terms of order book also. And that has to do with our ability to execute projects as well as our access to working capital because without those two things, we cannot really bid for a project.

Hello?

Yeah, yeah, that's very helpful, sir. I mean, wish you all the best. That's it for myself. Thank you. Thank you so much.

Thank you. A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Pahal Sharma from DD Capital. Please go ahead.

Hello. Good evening, sir.

Good evening.

Yeah. So, my question is that, with Solava's module, manufacturing facility is now operational. So, how should investors think about the utilization ramp-up over the next few quarters and the medium term? And also, specifically, what level of capacity utilization is management targeting in FY26 and FY27? And, like, at what utilization level does the facility achieve operating break-even or EBITDA break-even?

Okay. So ma'am, the install capacity is about 1.5 gigawatts of the line. I would say that we achieve a breakeven maybe at about a 30-35% utilization on that line. It might seem lower compared to our competitors because it's a very highly automated line and the number of people required to run that line is much lower compared to some of the other lines. Plus, our capex on that entire line was close to about 146 crores. So, our depreciation is also lower compared to our competitors. In terms of how much utilization the management is expecting, so, if you have been following us, you would know that we are an EPC-first company, and the lines have been set up to support our EPC business. In the current year, as on date, I have an order of about 600 megawatts that I need to supply to NTPC-REA for my orders. So that is a guaranteed order that we already have in hand. So that will give me a utilization of maybe close to about 40-45%. As we add more orders, I think we should expect a 60-65% utilization for that line.

Okay, and understood, sir. And one more question is that, how much of the existing ETS order book can we service through in-house modules?

I'm 100%. I said 600 megawatt current order book.

That entirely will come from the module line that we have.

Okay, okay, okay. I understood.

So last year, we got our approval in December 2025. So we were not eligible to supply to some of our existing EPC orders and we had to buy solar panels externally. But from the current year, that issue is not there. So our line is now running to supply to our existing customers only.

Okay, okay. Thank you so much.

Thank you. Thank you. The next question is from the line of Karan from Nivesha. Please go ahead.

Hi, how are you?

Hi, I'm good. Sir, I have a very general industry question. So, you know, recently the AMNM notification came out of, you know, there's no extension in the scheme. So, wanted to understand, like, is that the country has the adequate capacity, you know, to cater to the demand? If you could, you know, quantify how is the, you know, gap between the cell and model capacity because ultimately it would be sourcing cells because we currently don't have capacity. We'll be coming for the next year. So if you could, you know, give information on that.

So, ALCM-2 will become applicable from June. Projects which were bid out after August 31st will have to use ALCM-2 now. And MNRE, to be honest, after reviewing the extensions that have been granted, I think most 90% of the project will, 90-95% of the project will have to shift to DCR cells. That is true. In the short run, I think maybe 6 to 12 months, we could face a shortage of solar cells. But I think capacity is now coming up. Going forward next year, I think, FI-28 and end of FI-27, I think the capacity constraints should ease a little bit. So, yes, there will be difficulty in the short term, but this is also a very important step to ensuring that domestic manufacturing does pick up in solar cells. So, yes, some projects might, I would expect some projects would get delayed because of access to material, but overall, I don't think the situation will be very, very stark. In terms of solar world, our current order book does not have ALCM to order. So, we have a headway of about a year, and by the time, our own cell line should be up and running.

So, we don't see a lot of headwinds from this order.

Understood. And, you know, continuing on the other question, when it's, as you said, our audit book, you know, currently doesn't have ALCM 2 compliant, basically, self-requirements. So, you know, when do we expect, you know, the chunk of the demand that is utility to come up to this JCR requirement, would it be at the end of FI? Another, another.

So, sir, what you have to see is, when you get an order from a utility or when you sign a PPA, you get somewhere between 18 to 24 months to execute those orders. So, any order that was bid out after August 2025, that is from 1st September 2025, I would expect they have somewhere between, ETC orders would have about 14 months. And your non, or your PPA would have about 24 months to execute from that. So if you deduct maybe six months at the end, is that when they would start ordering the solar panels? So, maybe end of this year is when most of the demand should start coming in?

Oh, yeah. So, also, I want to ask you that, you know, with the increasing use of BESS in the, you know, in the tenders that are going live, does the module requirement also increase considering that, you know, as compared to a plane or in a polar, Is there a, you know, a norm where more modules are used for a solar base capacity to, you know, cater to the demand, or is it the same level of modules that are used for those base projects also?

So, Karan, I understand your question. What you are trying to understand is with utilization of beds, will the utilization for solar panels per project go up or go down? So, to be honest, there is not a straightforward answer. There are various kinds of FDRE tenders in the market. In some tenders, yes, we will deploy more solar panels, and in some tenders, you actually reduce the number of solar panels you will use. That depends on how much electricity has to be supplied. But overall, because of installation of best projects, the grid will become more stable, and we are able to give power at the time that the grid requires. So, number of solar projects should definitely go up. That should increase the utilization of solar panels and deployment of solar panels overall in the country.

Understood. And one last question, how, how in, you know, maybe next two, three years, what would be the annual demand as a, you know, soda industry we would be expecting for this this year model because considering in a year the changes.

I would not be able to answer that question very correctly. To be honest, in some of the segments like solar pumps and Kusum scheme, rooftop scheme, we do not really operate in those segments. So, for us to predict how much demand for DTR solar panels will be there, and assuming this is the first year, it will be very difficult to predict the overall yearly demand. Maybe once the situation stabilizes, after implementation, I think we'll get a clearer picture.

Great, great. Thank you so much. Thank you so much for patiently answering every question.

Thank you. A reminder to all participants that you may press star and want to ask question. The next question is from the line of Darshan Shah from MNS Associate. Please go ahead.

Yeah, hi. Thank you. Congratulations on a good set of numbers. Am I audible?

Yes, yes, sir. Thank you. Thank you so much. Thank you.

So, my first question is, typically EPC projects in the renewable space are bundled with long-term O&M contracts. These O&M contracts are typically, you know, from an investor point of view, stable income, high return ratios as well. So, what is the management view on O&M to, you know, increase it as a long-term revenue vertical?

So, to be honest, my view is exactly opposite of yours. Firstly, my O&M contracts are typically three years after installation of the project, so my tenders don't require long-term O&M from us. Our EPC margins are definitely better than our O&M margins. To give you an example, on a 100 megawatt project, I get a revenue of maybe about, including solar panels, about 250 to 300 per hour. For the same project, my O&M revenue over three years may be only 7 to 8 per hour. So, and the manpower required is almost the same to maintain a project and to set up a project. So, our interest is more in executing more projects compared to picking up more O&M. So, you will see that as a strategy, SolarWorld does not actively bid for O&M contracts.

Okay, got it. From my understanding, for the rest of the O&M, because your module life would be for longer, then for the remaining part of O&M, what does it happen? Does it randomly go to the initial vendor or then again a rebidding happens just for the O&M piece?

Yeah, so after, so let's say my initial tender is for supply installation, commissioning, and maintenance for three years. Once those three years are about to end, the PSU would typically come out with a tender where there are companies which are specialized in O&M would bid and take over the project from there and do the maintenance for maybe next five to seven years.

Okay. Okay, sir. Got it. And secondly, the government's increasing focus on ALMM, DCR, PLI, scheme for capacity creation. How do you see your competitive landscape evolving over the next three to five years? I specifically heard you say to the previous participants, and from a DCR supply side of you, it may be difficult for you, but overall on just the landscape, if you could just give me some pointers of what you think.

So, in terms of solar world, firstly, it is not going to be difficult for solar world because we have already invested into an ALMM module manufacturing line. We raised capital for an ALMM2 solar cell line which will come up by June. And for the current year, my orders don't require DCR cells. So, basically, once we require DCR solar panels, we would have the entire capacity in-house. So, from a competitive perspective, we are very well positioned as India's only ECC company that is backward integrated into manufacturing. From a year, from current year's perspective, if there is a shortage for DCR sales, developers and EPC will have two options, either to reduce their margins and go for higher prices or to maybe delay or defer their project within the overall timelines they get. But I would expect that from next year onward, the situation should ease and not get aggravated because other manufacturers are definitely setting up capacities as well.

Okay, I got it. I think the next question was on that only, but I think you sort of answered it. How do you see from an input point of view, do you see, because of DCR, your costs rising momentarily, and then once, you know, the industry-wide supply stabilizes, you will see kind of inputs also normalizing for you?

So, there are two things that we really have to consider here. Firstly, I'm an EPC. So, if I will pick up a DPR order now, I would plug in the current prices which are at elevated level. And as more capacity and competition comes in, I think the prices will go down. And I should expect my margins to improve, to be honest. So, if DCR had become applicable on my existing contract without any pass-through, that would be a problem. But I don't have any DCR orders, and as I pick up DCR orders now, I will definitely try to pick them up at the current prices. So, for me, it is a pass-through to the developer who will be bidding out these projects to us for EC2.

Okay. Good. Thank you so much.

Thank you. Thank you. A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Tejas Kandelwal from Prede and Equities. Please go ahead.

Hi, sir. Thank you for the opportunity. Yeah, am I audible?

Yes, yes, sir.

Please go ahead, sir. Yeah, so my question was, sir, the guidance which you have given for FR-27 that 1960-1950 crores should be executed from order book. So I wanted to know that will we add anything from base and module side on this order book? Sir, see.

So, I have already given my order book in the presentation, but whatever I manufacture in my tooler panel factory is utilized in my ECC. So, when you see, look at our control numbers, that is an elimination that you see and does not really add to my top line, but it does add to my margin. So, from a top line perspective, you will not see that.

Okay, okay. And, sir, my second question was? I mean, we have not spent anything from the funds which we have raised for solar cell. So, what was the reason for that?

So, the solar cell funds are dedicated to a very specific thing. Maybe we can use them for our utilities and for our machines. We are currently getting all our approvals and civil construction will start. So, these funds will be utilized once we have maybe entered into one, one and a half months of construction, and then we start ordering the equipment. So, maybe in the Q3, you will see a very sudden utilization of these funds.

Okay, sir. And will you be able to give any ballpark number for order inflow for this year?

So I really can't predict that. But the market is good. It is a fairly, the best market is, to be honest, I can give you a landscape of the market currently. So the best market is growing at a very, very fast pace. We've picked up significant orders in the best market. And we believe that we understand that the technicalities of a best project, because we are doing manufacturing as well. And on the EPP side, we are already there. So that market is definitely on our radar and we want to grow bigger there. On solar EPP also, a lot of our customers are now coming out with a lot of new bids. So, we remain hopeful to capture a significant portion of that market also.

Okay, and can you share any internal target or any vision which you have laid for the company in terms of the revenue and profit for the next three, four, two, three years, maybe?

Sir, to be honest, FY26 has been a very good year for us. We have almost grown by around 200-250%. We will maybe not be able to sustain this growth rate in the coming year. We expect to grow by around 40-45% this year as well, and we hope to maintain it. Q1 has been difficult for everybody because of the elevated prices. If these prices reduce, we hope to improve our margins as well. Otherwise, we would hope to sustain our margins. Internally, As a vision for the company, we intend to be India's biggest EPC company with state-of-the-art backward manufacturing lines that can support our customers end-to-end. We've taken a lot of steps towards that direction, and hopefully by the end of this year, and with our solar cell line coming up, we will be a complete solution provider and one of the best solution providers in the country.

Okay, great, great. Thank you so much. That's my side.

Thank you. The next question is from the line of Harshith Sajdeva from Columbus Capital. Please go ahead. Hi, sir.

Congratulations on a very good year. Just two questions. Sorry. First one, sir, if you want to expand your module and cell lines, I mean, I understand cell line would come up next year, but two, three years later, incrementally, if you want to expand capacity, what sort of numbers are we looking at in terms of timeline and cost? And second, sir, in the industry, do you see any PPA cancellations or tenders that have been awarded but are getting rescinded by PSUs? I mean, I heard some of that but would like to get an idea from you and what are the possible reasons, if so?

So, Arshit, thank you so much for your question. On the first question, So, our strategy is that we set up a line only when we see visibility for consuming about 75-80% of that capacity in one or two years. So, at present, we don't have any intentions of increasing the capacity in our module line or cell line. So, that is one. Secondly, on the PPAs getting resended by TFUs and TISCOMs, yes, that is correct, and that is a problem that people are facing, that PPAs are not getting signed after they become the L1 bidders in those bid. There are a lot of factors that are at play. Firstly, I think a lot of the best capacity that has been put out once that comes in, then DFCOM will be in a better position to consume that power. So you will see a push there. Second has been the lack of connectivity in the country overall. So I think government has given a big push to set up more substations, grid substations to ensure that that capacity can be evacuated to regions that need it. So, I think over a period of one year, I think a lot of these issues should get resolved. We are hopeful and by the end of maybe FY27, once these issues get resolved, the solar market would make a very, very fast and large comeback in terms of size and capacity that we are executing every year.

Okay. Okay. Got it. On the first question, I'm going to understand that your philosophy is entirely utilized captive. So, on the

module line, I can tell you that we started setting up our first module in November 2024. And most of our setup was done about in six to eight months. And then there was change in regulation regarding the IEC, which delayed our ALMM. So if we could do it in six to eight months earlier, I would expect to replicate that in a much faster way in terms of our module lines, because we already have experience now in setting up and running a module line, so maybe six months. And on the cell line, we are still setting up our course line, so I will let you know on our experience once we finish this one.

And just last one small question, I mean, current R&D spend would be how much and are we any targets for that internally?

So, our R&D spend, you would not see that separately in our financial statements. It's a continuous thing that our technical keys team keeps doing. Our target this year has been to maybe shift from a 620, 625 watt solar panel to about a 700 watt solar panel. Very few people are doing at scale in India right now. That is primarily the demand is driven by our optimization of our EPC project, which is another R&D that happens at our EPC level on how we can deliver better performance at a lower cost. So it's very difficult to give you a separate number, but we do try to remain ahead of the curve compared to our other competitors because lower cost, better efficiency does lead to better margins for us.

Thank you so much, sir. Best wishes for the upcoming year.

Thank you. Thank you. The next question is from the line of Deepak Patil from Equintis Wealth Advisory. Please go ahead. Hi. Hi, people. Yes, sir.

So, what proportion of this total order book do we expect to convert to given in FY27? And second question is, given if it takes 14 months and base is faster, so can you give us a quarterly revenue ramp-up trajectory for the whole year?

So, sir, on your first question, my order book today is about 2800 through. We would expect to, we would bare minimum try to achieve about 70% of that. So maybe close to 2000 crores in the current, in FY27. In terms of best ETC and solar ETC, I think best ETC we get about 11 to 12 months to execute. Solar ETC we get 14 months to execute. But in solar ETC, if there is a delay in handover of land, then we do get an extension in our timeline. So, in the current year, my last year, my best revenue was zero. It should go to about maybe close to about 800-2000 crores this year. My EPC revenue was close to about 1250 crores this year. It should remain fairly constant at around that level, so maybe 2000 crores. Overall, EPC revenue will be about 2000 crores. Q1, Q2 are weak for us. Q3, Q4 are very strong for us. So, that's a trend you will see across the years that are going to sustain this year also. Okay.

Maybe you could mention H1, H2, LR Cups, if you can.

Very difficult to predict, but we will try to achieve what we are saying over the years.

Okay.

Thank you.

Thank you. Thank you. The next question is from the line of Anuj Utpadeg from Invesac. Please go ahead.

Hi, thanks for the opportunity. Karthi, sorry I joined in late, so Vaughan, I'm sorry if you have someone that already asked this question. One thing is on how the EPC pipeline is framed as of now, you know, in terms of opportunity, how the tenders have floated, you know, how big do you see this year considering the volatile market situation. Next is on the ROW issue. How serious is it, you know, like PowerGit had mentioned that in certain cases.

So, sir, coming to your first question on how is the EPP centering market this year? So, to be honest, compared to last year, it is going to be slower. Because I think because of the lag in connectivity, there has been a certain slowdown in the tendering process for PPS itself. But looking from a solar world perspective, our order book is quite full, firstly. Secondly, sir, if you look at maybe PSU's tendering route, maybe close to 40 gigawatt last year. We execute maybe one, one and a half gigawatt in a year. So from a solar world perspective, I would not see a very big impact in terms of our order intake, while overall market might be a little slower. Secondly, on the question of the ROW for transmission lines, there has been a change. Where now ROW compensation is paid on market rates, I think that definitely helps in speeding up the process, because earlier this compensation was based on the circle rates, and circle rates are not updated very frequently in rural areas. So that did create a lot of struggle between the farmers and the developers who were trying to set up transmission lines. So that issue is getting resolved. But I would not rate that as the biggest problem or hurdle in setting up the solar project. I think the biggest hurdle right now is best scaling up so that the grid can be stabilized and we can have better visibility of power during the day and at night. Second, I think the bigger concern is the connectivity that I think will take another 10 to 12 months to get resolved.

And labor issue, sir, last question on the labor issue, we have not really seen a lot of labor issues. Okay. Thank you. That's helpful, Patrick. Thank you. Thank you. Thank you, sir.

Thank you. The next question is from the line of Dhruvinsha from HTFC Securities. Please go ahead.

I have one more question. It is regarding the part that we already have our module 9 ongoing and we've guided that the best orders would have 14 to 15% of PVT margin. So if I calculate that, wouldn't the margin slightly improve because of our cost coming down because of the same module? So wouldn't that lead to higher past margin maybe compared to the current year?

Sir, so my market could improve on the best side. On the ETC side, we are facing a lot of headwinds. To give you an example, copper compared to October 2025, copper is maybe up by about 40%. Aluminum is up by about 50%. There's been an increase in the steel prices. So there are definitely headwinds in most of the metals. So that will have an impact on the solar ETC side. So, overall, we are hoping to sustain the margin that we have in the current year. And as the situation in West Asia normalizes, we would hope to improve them. If it continues and prices still go up, then we are already guiding that there could be a slight decline in the margins as well. So, there is a range we are saying somewhere between 8 to 11% is where we should land. Sir, and to be honest, on the best side, most of the raw materials currently is imported into India, and the exchange rate has gone from maybe 85, 86 to about 96 now. So, that also has an impact on the margins.

Thank you. Okay, thank you so much.

Thank you. Ladies and gentlemen, we take this as the last question. I now hand the conference over to the management for the closing comment. Okay.

Okay. So thank you everyone for joining in. I hope we were able to answer your questions regarding the market and our company. And we hope to deliver good results in the coming year as well. And we will keep you posted on any new developments that we have in our company. Thank you, everyone, for joining us.

Thank you. On behalf of Solar World Energy Solution Limited, that concludes this conference. Thank you for joining us. Human Outers Connect Your Lines.