Websol Energy System Limited (WEBELSOLAR) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the WebSolve Energy System Limited Q4 and FY26 earnings conference call. As a reminder, all participants' line 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sohanlal Agarwal, Manenjin Director. Thank you, and over to you, sir.

Thank you very much. Good afternoon, everyone, and thank you all for joining us today. F.26 has been a landmark year for Webshop. If I take a step back and look at this year as a home, I would say it was a year where the work of the last few years really started showing up, both in our operations and in numbers. Reflecting the strong performance of the year and our confidence in the business, the board has recommended a dividend of Rs.0.25 per share for FY26, subject to shareholder approval. Moving on to the operational updates during the year, we commissioned cell line 2 in September 2025, which has taken our cell capacity from 600 megawatts to nearly 1.2 gigawatts, practically doubled. And this was done within our planned timeline and entirely through internal accruals. We have not raised any funds for phase 2. That matters to us because in this business it is not only about expansion, it is also about how disciplined you are with your capital. In terms of what comes next, our growth ambitions remain very much intact. We are upgrading one of our existing monopaxial lines to top-point technology. This will take our total cell capacity from 1.2 GW to 1.35 GW, and more importantly, it positions us at the higher end of the efficiency curve. We are targeting cell efficiency of more than 24.5% on this upgraded line. We see this as an important milestone in itself and also as a stepping stone towards our plan integrated. 4GW shell and model facility. Our CapEx and growth plan remain on track. On Andhra Pradesh, we are evaluating the next steps and we will share more details in time to come. What we have done is to apply greater discipline in sequencing, in funding structure and execution planning before we commit to firm timelines. In a project of this side, we believe clarity is better than an early announcement. The solar sector today is in a very significant opportunity cycle. We recognize that this is the time to act thoughtfully but proactively. And I want to assure all of you that the management shares that urgency. For us, growth is a combination of additional capacity, Full run-rate utilization of existing assets, productivity gains, technology progression, backward integration, and from better cash conversion. All of these are very active areas of focus for us. Our backward integration work is also progressing nicely. The work with LinkedIn on the ingot and wafer feasibility is part of strengthening our position across the full value chain. In this sector, agility matters, and we are very conscious of that. If I look at where we're supposed to stand today, the business is stronger, operationally, financially, and strategically. Then, where it was a year ago, we have doubled our sales capacity. We have improved utilization meaningfully across all lives. We have delivered the highest revenue. The highest EBITDA and the highest PATH in the company's history. We have generated strong operating cash flows. Our balance sheet is the strongest it has been in our 30th journey. Most importantly, we have created the opportunity for the next leg of growth. That, in our view, is not a company standing still. That is a company preparing carefully for what comes next. We remain confident about the opportunity ahead and we remain committed to building this business with discipline, ambition and responsibility. With this, gentlemen, I would now like to request Sanjana Khaitan to take you to the operational and financial performance for the year in more detail. Thank you very much again.

Thank you, sir, and good afternoon, everyone. Let me take you through our operational and financial performance for quarter 4, financial year 26, and full year financial 26. Starting with the full year, revenue from operations stood at Rs. 1,049 crores, a growth of nearly 82% over last year. EBITDA came in at Rs. 429 crores, a growth of around 70%, with an EBITDA margin of 41%. PAT was Rs. 303 crores, 96% higher than last year, translating to a PAT margin of 28.6%. This has definitely been a record revenue for WebSol. For quarter 4, revenue was Rs. 401 crore, EBITDA stood at Rs. 146 crore, and FAT was Rs. 125 crore. Q4 has been the best ever quarter for the company on practically every parameter. Revenue grew 132% year-on-year and 54% sequentially. EBITDA grew 86% year-on-year, and FAT was up 158% year-on-year. Moving on to cash flow and the balance sheet. During the year, we generated Rs. 255 crores of cash from operations, which is roughly 84% of our path. As a result, the company turned net cash surplus, highlighting strong financial discipline. Net worth has more than doubled from Rs. 278 crores to Rs. 631 crores. Debt to equity has come down from 0.55 times to 0.19 times. Our return ratios have also strengthened meaningfully with ROCE at 66% and ROE at 67%. Reflecting this overall improvement, during the year, Crystal has assigned us a BBB plus stable rating, which is a strong endorsement of the progress made. On the operational side, cell utilization remains high at above 90%. For cell and module line achieved its highest ever monthly utilization at 80%. For Q4 as a whole, our combined cell capacity utilization stood at 90%. As we move into the coming quarter, we expect to approach full run rate utilization across all our lines. On the order book front, we closed Q4 FY26 with a confirmed order book of Rs. 1,161 crores, with cells contributing around 40% and modules contributing 60%. Our book-to-bill ratio stood at 1.02 times for the quarter, providing healthy visibility into the next few quarters of operation. Overall, FI26 has demonstrated the kind of operating leverage and cash generation our existing capacity is capable of delivering and gives us a strong base to build on as we move into the next phase of growth. With this, we can now open the floor for questions. Thank you very much.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsense while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Mishra as an individual investor.

Thank you, and please go ahead.

Hello.

Yeah, hello.

Yeah, hi, everyone. Good afternoon. Congratulations on fantastic Q4 and fantastic FY26, as management has already elaborated sort of a turnaround year for the company. So, I just want to make the presentations and press release with us. So, thanks for all that detailed information. I just wanted to run on one particular subject that is, you know, the pledge we are carrying for IRIDA and what sort of timeframe we have to address it now that we are like net cash surplus companies. So if you can just like highlight what's the time frame for this.

Yeah, sure. So the outstanding net debt under the IRIDA facility is at approximately 92 crores. And of course, we appreciate that more than 80% of the promoter shares are pledged on this account. So as you correctly mentioned, we have turned net cash surplus as of March 31st, 2026. And we are currently in advance discussions with IRIDA for repayment of the loan and release of the pledged shares. Of course, there's a process involved, which includes certain standard procedural steps, and I would like to say that we are on track to complete the repayment and get the requisite shares released. So, hopefully, in the next month or two, we should be able to get this job done.

Right, because we would be preparing for, you know, next Apex suspension. Can you let us know what is the plan for debt? Is it going to be immediately taken once you start the project or would it be sometime after?

So, we have definitely started on the project, and as we have a comfortable cash surplus with us, currently we are making do of all the expenses through this. At some point of time, definitely we would have to save some amount of debt, but the idea is to use our current surplus to get down the debt component as much as possible.

Right. Okay. And can you give us the timeline for the top-con upgrade for the line, one of the monopult lines?

Correct. So, we've already started on this project, and it seems that by step 27, which is less than one year from today, we will be able to upgrade the line and start commercial production.

So, this would impede production of one line in some way or form. Can you let us know, like, how long would that be, would that period be? And how long it takes to integrate the new equipment to the monopark existing, right?

Yeah, so, I think, Vasanji, he can take up that question with respect to what the process is.

So, by February 27, we will be starting TopCon, so, you know, converting the PERC to TopCon, and it would take around two months to come to, you know, a full capacity level, but slowly we'll start off with small capacities because we need to, you know, change the process steps to integrate it, and then, so, a lot of trials will be there, of course, but it will not take more than two months to come to the top. The food capacity.

That's what we are expecting. Okay, understood. That would be closer to Feb 27. That's the plan.

Yeah, so Feb 27 is when we are expecting to record commercial start, and after commercial start, what Ms. Vakunti is mentioning is that we are factoring around two months to be able to ramp up at optimum utilization levels. Because once we even record commercial start, obviously the product becomes sellable, but it takes time to reach that high utilization level. So that would potentially take two months as per our current planning. But definitely we will be able to bring product to the market.

on the phase 3 capex for 2 gigawatt. You know, where we are in terms of land acquisition and start-up construction, if you can reflect on that as well.

Yeah, so with respect to the 2GV project, also our CAPEX commitment and growth roadmap is definitely on track. What we are doing right now is we are evaluating what is best for the company, the right sequencing, the right funding structure, and the right execution approach for a project of this scale. So, once we have, like, little more detail on that, we will definitely come back with the necessary communication.

Okay, thanks. I will join back in the queue.

Yeah.

Thank you. The next question is from the line of Naman Jain from Kotak Institution Equalities. Thank you. Please go ahead. Hello.

Am I out of it?

Yeah. Yeah.

Yeah. A few questions. One is on the update for like 600 megawatt. That you're going to come to 750 megawatt of TopCon. What will be the cost? And the period, about 10 months is, I'm guessing, what you'll take doing it gradually. How much of the production will be impacted? And another point was that we have seen in other companies that what they tend to do is they're scrapping their perk line and building up a new TopCon line. So, why has that been the case for them when we are upgrading this line directly? If you can clarify this, and then I'll come up with other questions.

Yeah, hi, Naman. I'm with this side. So, we are expecting as of now that it will cost around 2.70 crores for this upgrade. And it's not that we are scrapping our own line. Actually, we are adding more equipment to that line so that we can convert our existing monopart line to top-all line. So, and we, as of now, we estimate that roughly half a month, we expect there should be some issues with the production as we merge these two lines to, as we integrate these lines to top cost.

Okay, but the other times you can work at 100% at the current levels, if I'm not sure. Yes, yes, yes. Okay, so then, okay, got it. And another thing is that in this line will you also be able to produce G12R the larger cell or will you be producing the older M10 using the M10 vessel?

Yes, we can produce G12R that is 200 by 210 by 180.

Okay, okay, got it. Another thing which has sum up Thank you. Is that while CNI has seen very strong demand, some of the IPPs are saying that, you know, they are delaying capacity expansion due to lack of evacuation of the transmission capability capacity, right? So are you seeing some, you know, weakness from that segment? I think you can just give your thoughts on Kusum rooftop, CNI and IPP. That will be very helpful.

So, yeah, as of now, our focus is on BCR market. So, we are largely concentrating on PM Kusum and PM Suryagar, and we are not facing any demand-related issues as of now.

Yeah, you got it, you got it. And just one final question. What are the, what have been the pricing trends on the cell, DCR cell and DCR module business over the last six, eight months, if you can share? Because some of the capacities have come up. However, the demand has also gone up. So, if you can just share some thoughts on that.

So, uh... In line with what we have shared on the previous call, the cell realization is around 13 to 13.5 cents per watt, and the module realization is around 22 to 20.5 cents per watt page.

Okay.

So, there has been some softening in the price.

Got it. But this is despite the increase in silver prices, is it?

Yes, correct.

Okay. Okay. Thank you. That's all. Thanks a lot.

Thank you. The next question is from the line of Yesh Jain from Dam Capital Advisors. Thank you, and please go ahead. Mr. Jain, go ahead.

Yeah, I'm audible. Yeah, so good afternoon. Firstly, congratulations on a good set of numbers. So I have two quick questions. First is, what is the execution timeline of your current 1160 kHz order group? And second is, like, given the current cost environment and spot pricing trends, how are margins shaping up for non-DCR and DCR models? Yeah, that is my question.

Sari, can you repeat the first part of your question? So, one part of your question is with respect to what are the margins like with respect to DCR and non-DCR? And what was the first part of your question, please?

Yeah, so first question was like, what will be the execution timeline for your current 1160 crore order book?

With respect to our order book, so as per the last quarter, our order book stood at somewhere close to Rs. 1,150 crores, which after a 401 crore of sale, we are now standing at 1,161 crores as of last quarter, which translates to increase in confirmed orders of Rs. 412 crores. So, if you look at our last quarter revenue numbers that includes a 1.2 gigawatt self-capacity and a 550 megawatt module capacity, so somewhere this 1161 crore is something which we feel confident that we can complete in one financial year.

Okay. Can I check it? Check it out, please?

And with respect to margin, definitely over the next two, three years, we expect sell margins at least to remain healthy. Obviously, there will be some variability. Like, for example, recently we have seen how silver price increase has hit margins, and obviously some softening has come on account of the final sale price also. However, with ALMM List 2, which is expected to become mandatory and continued demand from teams like PM Kusum and PM Suryaghar, the demand environment remains supportive. So, definitely, it will be interesting to see how the margins evolve, but it should hopefully be in the same vicinity with some availability.

And for non-DCR, non-DCR, non-DCR modules?

Non-DCR is not really a focus area for us because as we have a 1.2 gigawatt cell line, 600 megawatt of cells we absorb into our module line. We sell the final DCR module. So, currently, our order book does not include any non-DCR, and as you must have gone through the notification by the government of the June 2026 mandate, wherein DCR has got mandated for most projects, we are more or less compliant with that because we don't have a non-DCR book.

Okay, okay. Clear, clear. Thank you.

Hello. Congratulations, sir, on a great set of numbers. So, just one question from my end. Sir, we see that the EBITDA margin has reduced over the year across quarter by quarter. Just wanted to understand, is this because of an additional production of

bond use or any other particular reason for this?

Yeah, so you're absolutely right. Module margins are structurally lower than sell margins. And definitely, as in Q4, we've reported our highest ever module sales. The overall EBITDA has been impacted because of that. So, on a sell level specifically, as I previously mentioned, because of increase in silver cost and top name of the final sale price, some amount of EBITDA compression has taken place. But definitely the drop is majorly on account of modules being introduced in our product mix. And contributing to our revenue more than the cell number.

Got it, ma'am. Thanks. So, ma'am, just going forward with this.

I would like to point out that despite the moderation in margins, EBITDA has grown 86% year on year and around 37% quarter on quarter, which reflects the strong underlying scale-up in the business.

Yes, ma'am. Congratulations. One second, ma'am.

Yeah, thank you. The next question is from the line of Maitri from Sapphire Capital. Please go ahead.

Yeah, hello. Good evening. Am I audible? Yes. Yeah, firstly, in the previous call, you mentioned that there were certain inventory build-ups and liquidity constraints from your consumers or your clients. So, has that easing happened in the quarter four? Are you seeing that happening in quarter one?

Yeah, so definitely there was some delay in Ofstate last quarter, which as we mentioned was an industry-wide phenomenon driven by temporary liquidity stress at the customer end rather than order cancellation. However, now these default orders have been executed and Q4 Ofstate reflects this recovery. In addition, we have secured new orders of 412 crores, as I just mentioned, and with this take-car order book to a strong 1161 crores as of now.

That is great. And currently, what sort of bid pipeline do we have? Do we kind of give a number on the sales order that we are bidding for, the mortgage orders we are bidding for?

Yeah, so the mix as, I think we put it in our investor presentation also, it's around 60% of this order book is module and 40% is sales.

Not the order book. I'm asking you about the bid pipeline, any new orders that you're bidding for that we might win in FY27.

Understood. So typically right now as our order book is Monopurg, we typically do not have any, we are not involved in any tendering. So most of the orders that we are achieving are basically either through module manufacturers in case of cell and in case of modules, it's basically the solar pump players predominantly who are then tendering ahead. So for us, our final consumer segment is them. So, we do not actually directly tender for any government orders as of now.

Okay. And going forward now that you mentioned that the module margins are structurally lower than the cell, and we're adding, like, more capacity in the module as well, because we're adding, I think, up to 4 gigawatts of capacity in the module size. What sort of split do you expect the company to have in module or cell manufacturing in, like, maybe 2 to 3 years once the Andhra Pradesh facility is live?

Yeah, so I mean, definitely right now we have one extra cell line compared to the module line. And whatever capacities we are going to bring ahead, we are planning to bring integrated capacities of cell and module in a phased manner of 2 gigawatt and then 2 gigawatt. So, this extra cell line that we currently have of 600 MW, which is getting upgraded to 750 MW owing to the TopCon expansion, that will always be an additive. So, that will be the extra cell supply which we'll have.

Okay, and the module transaction that we have, the 550 MW, that's on the Monopurk side, correct? Are there any plans to kind of upgrade that as well to the Topcon side?

Yeah, so actually in case of the module line, there is no need of any upgrade as such. There is definitely some...

Yeah, so it will be like some kits will be changed, some, you know, operating part of the equipment has to be modified, but that's not really a big upgrade. So that can easily be managed.

Yeah, from a capex perspective also that's much on the lower side and it's definitely a fairly quicker thing to do. So definitely this is how the shape up for us in the future. We always have the access of doing that.

Okay, that's great. And just one last question. So, if you can kind of give me the quantitative numbers of what sort of margins we have on the modules and what margins do we have on this cell? Because I think you mentioned the realizations on them, but if the EBITDA margins is possible to give them both of them.

So, madam, we do not record the margin separately. We do record the margin on consolidated basis. Because we are using our own set to misproduce, we are recording the margin on consolidated basis. But obviously, as you are aware that the modal margins are lower in compared to solidary.

Okay. So any sort of guidance you would give on the pay, the margins will kind of shape out to be in FY27?

It's a very dynamic market. It's very difficult to predict how the margin will sustain in the future. But on the margin front, over the next two or three years, we expect the margin to remain healthy with some variability. With ALM list, we expect it to become mandatory and continue demand from scheme like PM Kusum and PM Surya. The demand environment will be important. So, beyond that, margin will depend on how the supply side actually ramps up and stabilizes.

Okay. And on the Andhra Pradesh facility, you said that you'll be mentioning the timelines, almost everything has been decided, but any sort of range you can give, it will happen in the end of July 27, or maybe we are postponing it prior year, any sort of range for the Andhra Pradesh facility.

Yeah, so there are no plans of postponing the expansion commitments. So definitely our effort, our best effort is to ensure that we are able to bring up the capacity as we've already promised. I think June 20, 27 is what we are targeting.

Okay. Yeah, that is it from my side. Thank you. Thank you.

Thank you. The next question is from Ashish Khurana from ANK Capital Limited. Please go ahead.

Thank you. Firstly, congratulations to the whole team for a fantastic Q4 and FY26. My first question was on our... The second tranche of the 2 gigawatt capacity that is expected to come online around, say, mid-CY28, which is about two years away, and it is on Topcon. So, do we see any risk that the demand might shift meaningfully from Topcon to some other newer technology like XPC by then? And also, by when do we need to lock in the technology choice from, say, an equipment ordering or execution perspective in case, you know, we decide to shift midway from TopCon to some other technology given the scenario at that time.

Yeah, see, TopCon will, people have just started putting TopCon, and that is not as easy as the PERC technology. So, that will take some time to stabilize. So, one year, definitely, TopCon will continue. And what we are doing is to, you know, even HBC, it's, everybody talks about HBC, but, you know, the back contact only Longy and ICO, to some extent, they have made. But then we understand there are a lot of, you know, challenges that we are facing. So back contact is not really, you know, that mature a technology. It will take time. It will take at least two years' time for that to come so much, I mean, fully into the market. But what in the meantime, what we are doing is whatever in the 2 gigawatts that we will put up, We will keep space available, I mean, spaces left for these, you know, to adapt back contact as well, so that when that becomes mature, we will be able to insert these equipments in between, and we will be able to run. Like, the way we are upgrading PERC to TopCon, we will be able to upgrade TopCon to back contact as well. But it will take time. It's not going to be that quick. I mean, the way Perk moved quickly to TopCon, TopCon won't move that quickly to BackContact.

Thank you. That was very clear.

We are keeping ourselves, you know, safe so that even if that comes within, say, the next two years timeline, we will be able to, you know, adopt that as well.

Yeah, and just one point I want to add. Add to this that that is the reason why we've opted for a phased expansion so that we can de-risk ourselves of any technology change because we appreciate how dynamic this space is. So, as Ms. Basanti said that, you know, while our strategy is to keep provision for any technology updates, we also want to upgrade in a phase-wide manner so that any sort of change in technology, we are able to adapt very quickly.

I understood. Makes sense. Thank you. My second question was about your views on the depreciation period of our sales and module capacity. So I think in Q4, we already reassessed some of our assets. And I think some of our peers are depreciating the top con lines or monopuck lines in three and four years. And so going forward, how should we see the economic life of these assets? Would you like to come down from the stated policy of, say, 10 to 12 years in your annual report to a lower period on these?

Yeah, so we've already reduced the useful life for the new equipment, which is the Topcon, to eight years. And for the monopub, we are maintaining it at three years. So this is as per what our understanding of the technology landscape is. So definitely from 12, we've brought it down to these numbers. So, we'll see how things update in the next few quarters or years, and if certain other revision is required, we will go ahead and do that.

Noted. And in terms of the effective tax rate for FY27, so I think last year we had unutilized tax credits. So are there any more credits? And what would be the tax rate in this financial year?

Yeah, so, yeah.

So, yeah, I'm going to decide. So as of now, there are no tax rate has remained. So we have utilized all our tax credits. So the next year's rate will be a standard income tax rate that is applicable to all companies.

I got it. And one final question, what percentage of our revenue directly or indirectly is dependent on the government? Like a rough figure?

So we are not selling any product directly to the government. We are in the DCR line of business, and the DCR cells and modules are used in the government projects driven by PM Kusum and PM Surya.

Yeah, but, yeah, so, yeah, so the revenue dependency won't be there for those projects. Got it. Thank you so much for taking time to answer my questions. Thank you.

Thank you. The next question is from the line of Pratham Shah from the Sajirun's Capital. Please go ahead.

Yeah, good afternoon. Am I audible?

Yeah.

Yeah, so, speaking about your utilization level, which was at 90 percentage in the last quarter. When you are done upgrading it to the DOPCON facility, is your optimum utilization going to remain at 90% or what is the percentage you are planning to keep it at?

Yeah, so definitely right now in case of cell, our utilization on a combined basis is over 90% and that we believe is the highest which can be maintained. With respect to TopCon, obviously our target would be the same, but as Ms. Basanti said, it will take approximately over two months to get to that level after commissioning. But of course, the target would remain the same that we have to go over 90%.

Right, and my second question is that, speaking about your expansion plans, so what are your targets for captive use of cells and selling of cells to third parties?

Yeah, so, of course, as we are getting integrated capacities on board, like the June 27 and June 28 capacities, so the idea will be to sell the final module to the end customer. So, the only extra cells that we have access to is from our current operations of around 750 MW, so that we will continue to sell to module manufacturers, remaining all other cell capacity we will use captive into our own module.

What is the premium that we are getting compared to them?

Sorry, I didn't understand your question. Can you repeat?

Yeah. So, there are some Chinese manufacturers who manufacture cells. So, what is the premium that we are charging against them?

Certainly for us, our cost of manufacturing is different compared to Chinese suppliers, but obviously here, whatever we are producing, we are using locally for the DCR market. So, the market price is driven by the industry here rather than what the pricing is in China. So, definitely there is not much correlation to that.

Okay, thank you so much.

Yeah.

Thank you. The next question is from the line of Sushree C. Chokshi from Indus Equity Advisors. Please go ahead.

Congratulations, Sohan Lagmi, and Team Websole for excellent performance for the year, Bhangma. My first question is your current capacity of 1.2 gigawatt of cell, which would ramp up in February to 1.35. Now, based on 90% utilization, I see a clear roadmap that your solar cells, which you have booked, there is a scope to increase that size to double for the year. Am I assuming right?

So, solar cell capacity, I do not understand.

Output, right now, you have booked for 466 crores, which is roughly 450 to 475 megawatt. Whereas if you consume for your module manufacturing of 550 at 70-80% utilization would be 500 megawatt or less than 500, 400 and some odd megawatt. So your potential to sell in the domestic market outside your module captive consumption should be in the region of 750 to 800 megawatt.

Yeah, because 1 billion freezes to Topcon, so we'll get the advantage of that additional 150 megawatt.

No, but Sanjana, that is after you achieve Topcon in February, but as on today, till you continue Monopark also, 1.2 gigawatt, you are running the plant at 90% efficiency. If you take at 11 months itself, at 1100, you will consume for your module roughly around 400 megawatts. So you can sell 700 megawatts of sale. Am I presuming right or wrong?

Correct, correct. Broadly correct.

Yeah, so your potential order book for the current year will, the pipeline for order book is 1161 as potential to grow by 50% in near future, maybe in the quarter.

Sir, definitely we have seen more orders than the number we've reported, but as of our standard 1161, but definitely there would be some appetite to cater to more.

What's the update on the current Kusum scheme which is likely to roll out the new Kusum 2?

So, sir, on the Kusum

2, we need to check the scheme details, but I think the scheme is more favorable than the earlier scheme, but the exact detail we need to check out, and then we can return.

Is it that the scheme is going to be much larger than what it has already rolled out, and it's like 30 gigawatt?

So, sir, that's what I told you, that we are hearing about this, the scheme is larger than the previous one, but the exit details, the point print of the scheme is still working out, and we will revert to you once we are aware of the entire benefits.

Okay, the next question is, SEZ policy, some reforms have taken place. Do you estimate in the current year, once the clarifications are achieved, that we will have some benefit for the FALTA plant?

So, sir, as of now, what practice we are doing in SEZ, we will continue to follow that practice. So, in the current scheme also, but we are more comfortable with the older scheme.

I am not able to understand possibly that does the company have additional benefit because of the SEZ policy, which is being spoken from the budget?

Yeah, so the budget did mention about some waiver, but I don't think there has been any follow-up on that. So there's little clarity with respect to what the exact policy would be. So only once the final footprint comes, we'll be able to, yeah.

The budget says that the SEJ units will be allowed to sell in the DTA market, but on what conditions has not yet been clarified. So, the notification is still awaited. Once it will come, then it will be.

Nooranji, my next question is directly to you. Would you work to increase your holding pattern from where we stand today after the warrant conversion? We will see.

Let us wait for this. Right time will take the action.

Next question to Vasanthi, ma'am. How confident are we to achieve the Topcon production integration within 15 days and ramp up in two months for line one, which you enabled with order of machinery as of today?

So basically, why we are saying that is when the new machinery comes, we have a separate area allocated for the new machinery, which is just adjacent to the existing plant. So there we are going to ramp up, you know, installation because commissioning installation takes time. So that work will be done while the existing plant is continuing to run. So once that plant is ready, then we will open up the, you know, the... Yeah, and so we will save time. That's how we are. And ramp up, of course, we'll have our equipment providers' integration support and our own in-house knowledge, we will be able to ramp up in two months' time. That is our...

Thank you. So, based on our experience of this ramp-up, if we are successful and we are able to achieve the capacity, what is being visualized of increase of 20%, 600 going to 750, are we going to continue the second line on Bonapak or that also will convert to Topcon?

That we will think later, actually, because that is, I mean, PERC is still being utilized and, you know, there are some advantages from the PERC, so we will continue to run that line. We will not immediately, we will more focus on the new expansions. We will focus more on that.

So, Vasanthi, I am Suryagar and the other farm program and the module program for the solar roof. Both have a greater demand for monopark sale compared to Topcon. That is what is my understanding, right?

Right, right.

Yeah, so that demand can continue till the government schemes are rolling out. Any update on InGut to Wafer integration of technology, understanding, manpower, which was going to go for training or anything else?

Yeah, so we have signed that MOU and we are in technical discussion as well as team building. So the target is that by the deadline of June 2028 ALMM 3, we will be ready, we will be completely ready. So we are, you know, in quite a good situation as far as the ingot and the wafering plant is. So we have ourselves also done a lot of study, a lot of discussion with equipment suppliers. I think that we are in a good situation.

Somanalji and Vasanthi ma'am, based on your technical expertise, we have increased this current facility from 100 megawatt to 600, 600 to 1.2 gigawatt. Now you are likely to go to 1.35 and hopefully you will be at 1.5 when you implement the second file. Based on the current utility and the space what we have, does Falta have any additional benefit of adding capacity on the existing land building and utility?

Further beyond this, I don't think it is possible.

In the same compound, there is little scope of any further expansion, potentially.

And we'll await your Andhra expansion details as and when you decide. Good luck for the year, and best wishes to the entire team for the year.

Thank you.

Thank you. A reminder to all the participants, please restrict yourself to two questions. The next question is from the line of Raul Himani from Himani Financial Services. Please go ahead.

Congratulations to the team for the wonderful performance.

My simple question is, are we having any plans for entering into battery energy storage system?

Yeah, so definitely we see strong potential and best given India's target of multi gigawatt hour storage capacity by 2030. And we appreciate that it's a natural adjacency to our existing solar business and customer base. However, currently this is exploratory for us because our current priority is on executing the announced capacity and scaling up operations. So, definitely, we are evaluating this and are positive on the space, but we will update you as and when there are concrete developments on this project.

And Andhra plants, we are very confident that will be operational from June 2027, correct?

So, definitely our main priority will be that no timelines of expansion move. So, the teams are diligently working on that front. And as I mentioned, that once you know more details are available on that, we will definitely come back with an announcement.

But going by the current situation, are we on track?

Yeah, that is what we foresee.

Thank you very much.

Thank you.

Thank you. The next question is from the line of Anshil Jalan from Lotuswell. Please go ahead.

Thank you for taking my question. So, firstly, as we will be shifting to TopCon from Monopark, what will be the improvement in revenue for realization and efficiency formula? What can you please talk about that? Yeah, right. Now, in case of Monopark, the efficiency is around 23.3%. In case of TopCon, we are targeting 24.5% conservatively, but definitely there's potential of that number also being higher. Sorry, with respect to Wattpeak right now, in case of Moopark, 23.3% is around 7.8 Wattpeak per cell. So, in case of Topcon, that goes up to 9.3 Wattpeak because of the cell size and the efficiency. So, there are two factors for the increase in wordpeak. One is the cell size. So, right now, we are 182 into 182 when we are doing monoperk. In case of top corn, we go to G12R, so it will become 182 into 210. So, definitely, the cell size is increasing. Moreover, in case of efficiency from 23.3% in monoperk, we are targeting 24.5% upwards in case of top corn. So, a combined impact of that would translate from around 7.8 Watt peak per cell to around 9.3 Watt peak per cell in case of Topcoin. So, that would be the impact.

Can you quantify this in revenue, crore per megawatt?

Sir, your voice cracked in between. Can you please repeat?

Can you quantify this in revenue, crore per megawatt?

It is very difficult to do that because, as you know, the prices are very dynamic. We will be bringing this capacity close to 8 months from today. So, it's very difficult to know what the price of the Topcon would be at that time. So, definitely, we are confident on what the, as a result of the technology upgrade, what the efficiency and what peak would look like, which we've already commented on, but realization would be a factor of what the price is at that point of time, which is very difficult to comment right now.

So, ma'am, what are the current prices for TopCon?

It is in the vicinity of around 14 cents per worth piece. And in the solar industry, how much diva, what of demand per year will India have in the next five years, according to your estimates? Demand number, unfortunately, I do not have with respect to what the demand lays on a five-year basis. But definitely cell module capacity gap is quite visible with I think cell being at 31 gigawatt and module being at 173 gigawatt. So definitely the gap between cell and module is there. And in case of the on the demand front, what I understand is that around the installed capacity has reached 150 gigawatt in financial year 26. And still it is on an upward trend. So I would believe that the demand is very prevalent.

Thank you.

Thank you. The next question is from the line of Ankush Agarwal from Surge Capital. The next question is from the line of Rideh Chokshi from Indus Equity Advisors. Please go ahead.

Our team WebSoul, congratulations on a landmark result where we've lost 1,000 crores in revenues and 300 crores in debt. A few quick questions. The first question, Sanjana, you just explained on the capacity addition across the industry. So, just wanted to get an understanding. Right now, there's a lot of chatter of, you know, eventually we're going to reach oversupply and sell as well. But my understanding is the announced nameplate capacity differs very much so from what is coming on as fast as possible versus how much is captive, non-captive, and the utilization is also across the industry about 80%. So, can you just give a detailed breakdown on this front?

Yeah, so as you said, right, like the announced capacity and the operating capacity are very different. So even like in case of modules, I think, you know, As per the last MNRE number is close to 173 GigaWatt. Most plants, what my understanding is, are operating close to 70% or even lower. So definitely the product that actually comes into the market is 70% or 60% of the installed capacity. Same in case of cell also ramping up and all takes a lot of time and efficient operation takes time. So though the capacity can be installed as a factor of how much capex is done, but eventually to be able to run it efficiently and to be able to get an efficient product into the market is a very gradual process. And specifically in case of sell, quite a lot of engineering and process steps are required. And definitely all announced capacities will not translate into immediate supply. So this is what our 30-year experience tells us.

Got it. So, if we've established that capacity utilization is much lower, so then also can you give a split of captive versus non-captive across the industry, usage for cells?

I don't think that data would be available, or rather, I do not have that, that how much of the 173, or rather, how much of the 31 gigawatt of cell is used captive, and how much is coming in the market for module suppliers. I don't have that number right now, but I think I would say that most of the players, cell players, have integrated supply chains wherein they are using their own cells into a module and are finally selling the final module. So potentially, I think we would be one of the only players who have more of a cell capacity than a module capacity. So, definitely though I don't have the number to confirm on that, but definitely most capacities are integrated.

Got it. So, going forward with this clear mismatch in supply and demand visible, would you say that for the next three or four year period, one can assume that it would be possible for us to maintain our EBITDA margins around these levels?

Yeah, so as I said, I mean, C4 is a very long period of time for an industry like ours, where, you know, pricing and dynamics keep evolving. So it's difficult to give a time horizon with respect to what the margin variability would look like. But as I mentioned, in case of sell, broadly, it seems that, you know, the margin would remain with some variability over the short term and medium term. But definitely, all this is a factor of how many capacities come on board and what the sale price looks like from an industry perspective in time to come.

Understood. Last question, India reached a peak demand yesterday of 256 gigawatts. Now, we can also see this year PM Kusum 2.0 is supposed to go live. So, can you speak a little bit on the benefit we're expecting from that scheme? And additionally, I understand you've already answered we're exploring ingot and vapor, but how keen are we on this and how soon do we expect to go live on this as well eventually?

Yeah, so, of course, Wafer and Invert, as per the ALMM List 3 update, it says June 2028. So, we want to match our commissioning by that time, because at that point of time, you know, I mean, it's around more than one and a half years from today. So, we feel, of course, we are definitely aggressive on this, and we feel like sell was the answer a few months or years ago. Now, paper and invert is what the answer would be. So, definitely, we are bullish on this, and we have to bring these capacities live, and we will target the June 2028 timeline for the same.

And the benefit on, you know, the schemes like PM Qusun 2, etc. going live this year.

Yeah, so definitely, like, even for the June 2026 update by the government that, you know, BTR has got mandated for projects, so definitely from the government side, there has been a push to ensure that domestic manufacturing is protected, and, you know, demands that we haven't seen any challenge in FAFSA order book is growing, and we remain positive that these schemes that the government is implementing is only going to increase the demand.

All right. Thanks very much. All the very best.

Thank you.

Thank you. The next question is from the line of Mukesh Agarwal from Turbo. Thank you, and please go ahead.

Mr. Agarwal, please go ahead.

Hello. Yeah, congratulations for the wonderful performance. My question is that since now ALM2 is coming, so how much sales do you assume to boost with the introduction of ALM2, which is implementing from Zoom 2026?

You mean how much would we contribute to that? Is that the question?

Yeah.

Yeah, so our entire capacity right now is just DCR, which is Domestic Content Requirement. So all the products that we made are ALMM, sorry, our entire capacity is ALMM listed. So eventually everything that we are bringing to the market is DCR compliant. So 100% of our line is utilized for that.

No, but you told me you have the order book of 1163 crores for the financial year 2027. So, I am asking how much sale are you expecting to get extra with the A-11-2 introduction?

I don't think that the ALMM introduction has definitely boosted more domestic manufacturing. So, how much extra sales is difficult to say that is coming, that can be directly attributable to this release. But definitely, we are seeing a very strong order book ahead. And as I said, our entire line is ALMM listed. So, we are definitely ready to cater to the surge in demand because of this notification.

Oh, thank you very much. Thank you.

The next question is from the line of Nitin Shaptar from Green Capital, Single Family Office. Please go ahead.

Hi, good afternoon. This is Nitin Shaptar from the Green Capital, Single Family Office. So, Sanjana, I think you answered a little bit of the question regarding this, but my question was more as a vision for an investor. What areas do you see with the diversification possible for WebSoul now, whether it's in-go-out-of-way for production, or whether it's HGHG production, or whether it's smart nutrient EMS, BESS, or whether it's even building integrated photovoltaics? Just as a vision strategy exercise for the year, any input from the company regarding this for a forward-looking investor, which is not just look at quarter-by-quarter beat, but more like annual performances? Thank you.

Yeah, so definitely we have primarily been cell manufacturers, and that is where our interest area lies. We feel that is a product we understand very well, and we have a very well-qualified team who has been able to perform really well and bring up capacities in very short time frames. So definitely that is our primary area of interest. However, we would like to complete the value chain by forward integrating on module which we have done by bringing the 550 MW line and all future capacities that we bring will also be fully integrated. And interest area is also to go backward into paper and ingot so that we can secure the whole value chain from that perspective. So, definitely, these three products is where the primary focus remains. With respect to best and other ancillary opportunities, as I mentioned, definitely, it's a space which is growing and it's an ancillary product for our customer base with respect to the module. But we are concentrating more right now on the wafer, inward, cell, and module story. And we'll see how the best phase develops for us.

Okay, great. Thank you. And you've created another problem for yourself by declaring such stunning results that you have to constantly beat yourself on quarter on quarter, which is an extremely tough exercise. But let's look at it annually and all the best.

Yeah, thank you so much.

Thank you. The next question is from the line of Prithul Jitenbhai Shah from Anur Prithi Advisors LLP. Please go ahead.

Yeah, thank you for the opportunity and congrats on great set of numbers. My question was with respect to the upgradation that we are doing. So, I don't know actually whether this is answered or not. Just wanted to know what is the capex that we are incurring for upgrading to TopCon and how many months or days of revenue loss we will be having for upgrading this?

Please go ahead. Hello.

Yeah, please go ahead. Hello.

Yeah. So, I don't know whether this question is answered or not, but my question is with respect to the upgradation to Topcon capacity. So, what is the CAPEX amount that we are doing and what is the number of days or months that we will be having the revenue loss during this upgradation? Hello. I was asking that with respect to the new operation that we are doing to Topcon, what is the CAPEX amount to it, and second, what is the revenue loss in number of days or months that we have to see?

So, we are expecting a CAPEX around 250-270 crore as of now, and we are estimating that the revenue loss will be around for 15 days. But we are estimating.

Yeah, this is just important to note that this 15-day period is just for half the plant. So, as we mentioned, we are building only one time. So, 15 days of revenue loss will happen on account of that line. The other line will continue to function as per usual.

Got it, got it. And ma'am, for this quarter, can you give us the realization of sales and modules for March?

For March, specifically?

So, I can share...

Or you can tell what current rates are in April, whatever you want to disclose.

We can tell you, because, yeah, so current rates is around 13, 13.5 cents per watt each per cell, and 22 to 22.5 cents per watt each per module. This is what we are seeing right now.

Okay, okay. Got it, ma'am. Yeah, that's it from my day. Thank you.

Thank you.

Thank you. The next question is from the line of Anik Mitra from Finorex Solutions Private Limited. Please go ahead.

Good evening, sir. Am I audible?

Yes.

Hello. Yes. My question. Yeah, please. Yeah. So, ma'am, I just want to understand the transition from your existing Monopop to Topcon. So, what is the Cape Tech sale vault for the award?

Yeah, so from 600, we are adding additional equipment to our 600 megawatt monopark line to upgrade it to Topcorn. So this will increase the capacity by virtue of the upgrade by 150 megawatt and the planned capex for the Topcorn line is around 250 to 270 crores.

262 to 72. Okay. Okay. And madam, for your input and buffer, means the new venture, means new addition. What sort of statistics for megawatts we can estimate?

So, for ingot and wafer, we are still on the evaluation phase. We are evaluating how much it will be the total cost for this facility, and we will update you once the confirmed codes are available to us.

Okay. Sir, is there any timeline for ingot and wafer? Are you considering any specific, maybe 2029, anything in your mind?

So, we have signed an MOU, and we are in technical discussion and de-building phase. The target is to commission ahead of the ALM risk-free deadline of June 2028, which will mandate the Indian origin wafer for the government-funded footage. So, we are working with this ALPC timeline.

Thank you.

Thank you. The next question is from the line of Hardik Jain from Whitestone Financial Advisors. Please go ahead.

Yeah, many congratulations for a great set of numbers, and thank you for the opportunity. So just one question. In this quarter's balance sheet, we've seen some increase in debtors and inventory. So, do you think your customers are still facing some liquidity issue and there's some...

So, let me answer your question. So, the increase in the working capital is largely driven by the inventory and the receivables. So, first on inventory, this is higher due to the capacity expansion with our cell line capacity building and the ramp-up of module protection. In addition, the shift in product-mix-watt module has led to higher raw material inventory As module operations are inherently more inventory intensive. And regarding receivables, the increase respects also the higher business volumes and the more diversified customer base. Importantly, the portion of these receivables is backed by letter of credit from Prime Bank, which mitigates credit risk. So, this is the increase in the line of the business operations, but also in line with the industry benchmark.

But in general, because we are seeing in some of the EPC players' balance sheet that the receivables are increasing across the industry, so do you think there are some issues with the payment from some of the states or from this scheme, where your customers are facing those issues?

So we are not directly participating in the government, instead we are taking the letter of credit from these players.

Thank you. The next question is from the line of Saurabh Dohli from FIAS SS. Thank you, and please go ahead.

Good evening. So I have two questions. The first is, when you say that you're transitioning to the top-con technology, what impact does this have on the margins of that particular line? And the second question is, with respect to the Linton partnership, I just want to know roughly what kind of commercials, etc. I mean, you don't have to go to exact figures, but what kind of commercial arrangements will we have here, and will this be an exclusive arrangement with them?

So, regarding your first question, it will be very difficult to comment on the margin as of now on top 1 upgrade. So, you are aware that a top 1 is the new technology and you will get a higher efficiency yourself. So, as of now, to comment on the margin on the date of completion of top 1 is very difficult to comment on. But, obviously, we expect top 1 will build a better margin. Regarding conversion to type with Linton, I am ending all the search now.

So, with LinkedIn, of course, they are manufacturers of the wafer and ingot equipment, so it's not an exclusive arrangement because, of course, they have, I mean, that's their main business to supply the equipment, but definitely the broad understanding is that they will be helping us with this technology and with adoption of the technology here in India, and they will be training our manpower for this day.

And just to follow up, in return, I mean, is there a fee involved here, or is there some kind of a royalty, or what is the, you know, the nature of the arrangement?

Yeah, I don't think we have the adequate commercials to disclose on that front with respect to what the fee structure would be, but once we have the same, we will definitely get back.

Sure, sure, sure. Thank you so much.

Thank you.

Thank you. The next question is from the line of Rideh Choksi from Indus Equity Advisors. Please go ahead.

Thank you for the follow-up. Just wanted to confirm, so we're earmarking 250 crores for the Topcon upgradation. Apart from that, in the last call, I think we mentioned somewhere around 2,800 to 3,000 crores of CAPEX for the next fail. So that takes us to about 3,000, 3,200 total. And we are also talking about adding ingot wafer, which could be 300, 400, 500 crores for a gig hour. So, how confident are we on funding this entire capex expense over the next 2-3 years?

Yeah, so, of course, we have, like, surplus cash as of now for the immediate expansions, and as I said, we will be raising some amount of debt also to support the quick expansion. So, as for our projections, we don't see any concern as of now. Obviously, the idea is to manage the debt level prudently, which is what will be our interest area going forward.

Noted. Thank you very much.

Thank you.

The next question is from the line of Ankush Agarwal from Search Capital. Please go ahead.

Yeah. Hi. Thank you for taking my question. So just one clarity I wanted, like one of the commentaries this quarter has been that you are trying to sort of thinking about how to sequence the new, the next set of KPEX, which earlier was not the clear. I think the commentaries showed up this quarter. So we're trying to understand what is driving this sort of Is it because that you want to see how the industry shapes up with the new ALCM? Or is it in terms of sort of, you know, figuring out how to fund the project? So just trying to understand like what has changed between last quarter and this quarter, wherein the common care sort of shifted in terms of that you are not very clear on how to go ahead with this plan.

I don't think there has been any change. Definitely, we are going to expand and scale up as committed, but we do not have any additional update to give at this moment, and that is why we are waiting to come back with announcements on the scene. So, definitely, as mentioned earlier, also, we are working hard on the timeline of June 2027, and whatever capacities we've announced remain in place. So, we are just working to ensure that we are able to meet those timelines.

Right. But now, almost visiting mail, so do you think that one year is sufficient to go from, like, zero to commercial products for this size of project? Even that now we are already starting with May and June 25th is the target, so do you think that one year is a sufficient timeframe for going from scratch to getting that line running for this size of project?

Yeah, I mean, we have been working on it, as mentioned. It's been quite a few months that we've done a lot of homework. We've worked on the team building. We also have researched a lot on the technology. We've made multiple visits to ensure that we are well informed of what we are getting into. So, definitely, a lot of work has already been done. So, I would not treat it as starting from scratch. And that, I would say, we are midway implementation.

Okay, good. That was all. Thank you.

Thank you.

Thank you. That was the last question for the day. I now hand the conference over to management for closing comments.

Yeah, thank you so much, everyone, for joining today and being a part of the call.

Thank you. On behalf of WebSOL Energy System Limited, that concludes this conference.

Thank you for joining us, and you may now disconnect your lines.