Advait Energy Transitions Limited (ADVAIT) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Advait Energy Transition Limited Q4F526 audience conference call. As a reminder, all participant lines will be in the listener-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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 Krishna Patel from EY. Thank you and over to you.

Thank you, Steve. Good afternoon, everyone. We are pleased to welcome you all to Advait Energy Transition Limited for this conference call to discuss the Q4, FY26, and FY26 financial results. Today, from the management, we have with us Mr. Shalin Sheik, the founder of MDMD, Mr. Vatsal Kundalya, MD, Advait Green Energy, Mr. Narayan Singh, PFO, Mr. Priyam Shah, head IR Corporate Affairs, and other KMPs. Please note, a copy of disclosure is available in the investor section of the website as well as on the stock exchange. Anything said on this call which reflects the outlook for the future or which could be consued at a forward-looking statement must be reviewed in conjunction with the risks that the company faces. Now, I shall hand over the call to Mr. Shalin. Wait for his opening remarks. Over to you, sir. Thank you.

Good afternoon, everyone. I am Shailin Shik, the Indian founder of the group of companies. With this, I would like to take up the Erling Call speech.

Thank you for joining us today on A Great Energy Transitions, which is Erling's first call to discuss about performance for this quarter and financial year ended March 31st, 2026. We sincerely appreciate its continuous support for our investors, stakeholders, and partners. Despite global geopolitical uncertainties, inflationary pressures, and evolving economic conditions, we have delivered yet another strong quarter and a remarkable year. Our performance reinforces our conviction that we are operating in golden era of power and energy transition sector, driven by India's vision for energy independence and sustainability. Let me now briefly highlight our performance for the quarter 4, 2026 and financial year 2026. Starting with the quarterly performance, in the last year Q4, 26, the revenue from the operation was 228 crores with an increase of 18% from 193 crores for the Q4, 25. EBITDA during the quarter was at 28.78 crores. Increase of 49% from 19.28 crores in the Q425, EBITDA margin was at 12.61% versus 9.97% in Q425. PAT, Profit After Tax, during the quarter was 19.96 crores, an increase of 55% from 12.89 crores in Q425. The PAT margin came at 8.36% versus 6.65% in Q425. Financially at 26 versus 25, year-on-year performance. During the year 2026, the revenue from the operations was 714.52 crores with an increase of 80% from Rs. 397.60 crores in financial year 25. EBITDA during the year was 3.78 crores, an increase of 64% from 51.17 crores in financial year 25. EBITDA margin was at 11.73% versus 12.87% in financial year 25. BAT during the year was at 58.08 crores, an increase of 75%, roughly 3.24 crores in financial year 25. The BAT margin came at 7.71% with 8.05 in financial year 25. We are pleased to share that our order book has reached all-time high of Rs. 1304 crores, make 159% year-on-year growth. 64% of the order book is contributed by a power transmission and solution business and 76% came to new and renewable business segment. This diversified and strong order book provides excellent visibility for sustained growth over the coming year. During Q4, we achieved several milestones. We have successfully secured supply of ERA for the company amounting rupees, It's coming close to, I mean, from here. We have successfully secured the first direct business in Uttarakhand state by securing the first EPC order amount in 3 crores. We also received the EPC order amounting about 27 crores from the conductor of the old conductor. We have secured the largest order book in our changing tools and capital tools division Q4 of 22 crores for the various EPC clients in India. We have received an NABL laboratory certification and approval for our manufacturing facility, which is for our existing OPGW-EI manufacturing business. We have received our OPGW products suppliers' approval from three new state utility boards and private customers. Cumulatively, during the year, we have the approval of more than 10 utility boards. In this renewable segment, we have successfully commissioned 25 megawatts of Adani's renewable project at Khawda for the solar. Additionally, about 67.5 megawatt project is also created at Khawda, expected to be completed by the Q1-2026. This achievement demonstrates our ability to execute a sort of both conventional and renewable business. We continue to invest aggressively in future growth and line business for our vision in 2030. As a part of this strategy, we are developing a multi-integrated manufacturing facility near Dohera, which is expected to be operational by 2427, phase 1. Alongside expanding our footprint in manufacturing of factory energy storage systems of 2.7 gigawatt and electrolyzer manufacturing phase 1. Focusing on strengthening our indigenous manufacturing capabilities. These strategic initiatives will play a pivotal role in positioning Advaita as a leading player in India's evolving energy transformation landscape. Strategic level, we firmly believe that India's energy transition is no longer sustainable, it is imperative. The recent geopolitical developments have understood the country's exposure to external and specific dependencies, accelerating the need for the long-term sustainable solutions. We see strong momentum building in areas such as gas, ammonia and all. BESF and C&I battery-operated solutions. Advait is actively investing and positioning itself in this high-potential segment. To further enhance focus and execution, we have set up a dedicated subsidiary like Advait Green Energy Private Limited focusing on green hydrogen and EPC business of solar, Advait Battery Ecosystems Private Limited to focus on BESF manufacturing and C&I solutions. FACARA, Focusing on Carbon Solutions Delivery, and Aura, that is, Advait Unified Resource, to focus on our asset-based business. This is all in aligning our long-term growth strategy. We have pleased to share. Board of Directors have recommended a dividend of Rs.2 per equity share for the year 2026, subject to shareholder approval. This is a commitment to delivering value to our shareholders while continuing to invest for our long-term growth. Looking ahead, we remain highly optimistic about our growth trajectory. We are confident on delivering chain revenue growth, which may be 40% plus, supported by our strong water book and robust standard pipeline that provides clear visibility into future performance. Our upcoming manufacturing facilities are expected to further enlarge and improve availability. At the same time, our approach continues to emphasize a profitable growth with focus on maintaining right mix of products and ensuring disciplined capital allocation. In conclusion, year 26 has been defining year for the advanced energy establishment. Strong foundation established across what? This is the power transmission and distribution business and new energy segment, a record order book, a strategic investment going underway. We are well positioned to capitalize on India's rapidly accelerating energy transition strategy. On behalf of the entire management team, I would like to express our sincere gratitude to all stakeholders, continued support and confidence in our vision. A big thank you for the same. Now, request our CFO, Narayanthi, to take you through our financial

performance for further Thank you, Salim sir.

Good afternoon, everyone, and a warm welcome to Advait Energy Transitions Ltd. Quarter 4, Financial Year 26, Earning Conference Call. It is a pleasure to connect with you and present our financial performance for the quarter and 12-month ended, Financial Year 26. I am pleased to share our financial performance remain robust and healthy, aligned with the company's long-term vision and the positive momentum in the sector. Now, let me give you the key highlight of our Adwit standalone financial performance of quarter 4 and financial year 26. Let me start with Adwit standalone financial year of quarter 4 FY26. In the recent quarter, revenue from operation increased by 62% year-on-year to Rs.154 due to the project executions and well-diversified order book. In this recent quarter, EBITDA increased by 64% year-on-year to Rs.23 crores from 14 crores in quarter 4 FI 25. EBITDA margin stood at 15% in quarter 4, financial at 26. In quarter 4 FI 26, Fed increased by 59% from 15 crores to 10 crores. Quarter 4 FI 25, Fed margin stood at the 10% in quarter 4 FI 26. Let me start with the ETL standalone financial performance of financial aid 26. In financial aid 26, revenue from operations increased by 52% year-on-year to Rs. 448 crore from 295 crore. In F526, EBITDA increased by 51% year-on-year to Rs. 71 crore from 47 crore in F525. Debitda margin stood at 16% in FY26. In financial aid 26, payed increased by 47% year-on-year, rupees 46 crore from 31 crore in FY25. Payed margin stood at 10% in financial aid 26. Date equity ratio stood at 0.46 times as on March 26 versus 0.22 times as on March 25. Long-term credit rating upgraded to Christian A- table.

This concludes with the update on the company financials highlight.

We remain confident of our sustained growth momentum in the coming quarter, reflecting our strong overall performance and year-on-year growth strategy. I shall now request an auditor to open the floor for position and answer session.

Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to withdraw 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 will wait for a moment while the question queue assembles.

The first question comes from the line of Disha, with Sapphire Capital.

Please go ahead.

Hello. Am I audible, sir?

Yeah, you're audible.

Yes, thank you so much, sir, for this opportunity. Couple of questions, sir. Firstly, what is a typical order execution timeline, do we see?

Normally, our orders execution time-time is between 6 months to 12 months to 18 months, depending upon the type of business.

So, given our very strong health report at 1,300 this year, this 40% revenue growth, are we being too conservative, sir, because it can do much higher, right?

If you refer to the last year investor call, we also mentioned the similar thing. So, this year, we could achieve about 80% revenue growth, and we are expecting robust growth for the year. So, yes, this figure is little conservative.

Okay, and what about the order pipeline, sir? How do we look at that, and what sort of order inflow can we expect?

So, looking to the order pipeline, we are working on the various opportunities for the order about 2,000 crores for the year. We are looking forward that next year, our company should stood at about 1,600 to 1,650 crores of order book by end of the next year.

Okay, and sir, is it possible to quantify how much will be from the energy segment, how much will be from the power, the power transmission?

Yeah, we are, our ratio is being changed with a 15 by 10% every year. So this year, we are having about 25 to 27% from NRE. Next year, looking forward, this will be about, this ratio will be 65 certified.

Okay, okay. So, how should one look at the overall margins, sir, for this?

Our margins, with our manufacturing facility being opened up for this year and having a sustained program for putting more and more manufacturing, will keep on improved marginally. So, we are looking forward for improving the margins by one point for the next year.

Oh, FY27, right?

Yeah.

Okay. And so, given our major facilities will be, the major facilities will be commissioned in Q4. So, what sort of margin increase can we see for FI28? And what will be the CAPEX number for FI27?

The CAPEX number for the FI27, we have done a single CAPEX for a PTS division for the year. That is about 100 crores. That is already arranged by our internal fund for arranging equity. Good morning, everyone. In total, our capex for the next year for the excluding IPP for the year 26, which is 22 crores, capex for the IPP 51 crores, and invest in subsidiaries about 44 crores. For the next year, we are looking forward to the capex of about 137 crores per year. Excluding IPP and various IPP business and investment in our subsidiaries to put up the facilities for the BSF letterizers will be about 198 crores.

So, total will be around 198 years. Is that correct, sir?

Total our capex should be about 300 crores to 350 crores per year.

Okay. Okay. All right. That is it. Thank you.

Thank you so much. Thank you. Participants, if you wish to ask a question, you may press star and one. The next question comes from the line of Shashank Jaa with SD Capital. Please go ahead.

Yeah. Hi, sir.

And now, do you want?

Yeah, you're ready for Shashank. Bye.

Sir, my question is regarding the base. So, I noticed one thing that most of your base orders are built on operate model, but your revenue was 40 if it's called something around 2% from base. So, what is the thing here, sir?

Can you please repeat a question?

No, I have been tracking this company for long. So what I worked with is that most of the base order were of nature build and operate. That is, you will build a base kind of container and then you will sell electricity out of space. But it was Q4 base revenue was 46 crores. So how come it is? Am I missing something here?

I would request Riyan Bhai to answer the question. Please pick up the question. Riyan Bhai, actually, that revenue is the, what's the project for VOO we have won. We have given order on EPC basis to our company called Agrient Green Energy Private Limited, and the 43 crore we have reported from the same.

Okay, so going forward, you have that one gigawatt base plant, uh, electricity filling will not be there in revenue, right?

Then?

Going forward, one gigawatt plant.

I beg your pardon. No, no, basically, our plan is to have 1 gigawatt build on operate by FY30, I think. So, that electricity generating revenue will not be there, will not be considering that, right?

Sir, electricity generation revenue will be reported in special purpose of IKAR. It is going to be part of a consolidated statement. Once project will get, it will achieve the COD, then that revenue can be reported. So, maybe these years, you will find that revenue is separately reported. The BOO order which we have received under the development scheme, that we are doing EPC through company subsidiary. So, that is what we have reported so far. Okay, got it.

And sir, second question is regarding the fuel cell and all of the other. So, when do you think the demand is good for fuel cell and all of the other? Especially fuel cells?

I was trying to mention this in our speech, wherein I mentioned that recent Iran-Iraq, Iran-US war has also opened up this segment very strongly, and now the government is taking very wrong action that how fast we distribute these ecosystems. We believe that this requirement will start from this year itself, but delivery will start from 27-28. Great, great. And I think I was...

Thank you.

I was answering the same question since the last two or three years. We are the firm believers. The time will come. And we have been creating our faculties and we are creating our qualifications for the same.

Sir, I have one question, like you said, we are building a fuel cell, like you said, we are building a fuel cell, like you said, we are building a fuel cell, like you said, we are building a fuel cell, like you said,

you have read our news, that we did the joint venture M.U. with one of the most renowned technical companies called EVL and tech for putting up a plant in Ahmedabad. So, we have done the technology transfer agreement, wherein we will be having the proven technology with us. It will take about one and a half year to put up the manual plant at our level, and it will take about two years or three years to put an automatic plant for the fuel cell, and we are fully dedicated to manufacture the fuel cell like electricity at our facility, and these fuel cells will be working on stationary applications for continuous and backup, like for the data center and various applications, and we will also provide the fuel cell for the short distance. Shipping solution, Paris, and various different solutions.

So great, sir. Sir, I have a question for my question. Our 2.5 gigawatt in each national plant is active. So, I know that at least 1.300 crore revenue, if we work in the 6th tutorial, then it will become 2 gigawatt. So, your credit is very conservative. So, I am showing you the demand.

So, this plant will be operational in the month of September, October. So, we will be having only the two months to do the business for this plant. So, we are looking forward maybe 100 to 200 crores of business for the manufacturing of the BAS. But from the next year onwards, your sentence may be right that if it offers so and so capacity, we can talk about 1000 crores plus for the plant. You are right.

Yeah. And sir, solar EPC ka hamaara matlab kaisa habi chal raha hai, bid pipeline agera?

Our NRE head, Mr. Bhattal Kundalya will be addressing the question of the solar EPC. Thank you for the question, Mr. Shishank.

As we speak, we are in advance discussions for a lot of opportunities and also for quite a few EPC tenders. So, in pipeline, we will share the updates as soon as possible.

Okay, sir, A class is PTS division. If you have no PTS division, you may be CAPEX. So, once CAPEX will be done, what will be the peak revenue potential from PTS division?

Sir, this after the CAPEX is completed, our visa continue with this 40 to 50% growth for next 5 years. So, we are creating the manufacturing site to ensure that we are also able to deliver those kind of margins. So, our growth for next 5 years is 50% growth from PTA. This is the plan.

Okay. Okay, sir. I will come back and let you come back. I have other questions. Thank you, sir.

Thank you. Participants, if you wish to ask a question, you may press star and 1.

Thank you.

The next question comes from the line of Krishna Yopa

with an individual investor. Please go ahead.

Yeah. Hi, sir. Congrats to the good members, and thanks for the opportunity. Are there any other questions?

Yes. Yeah, you are audible very well.

Yeah. Sir, my question is on the margin field. In the electrolyzers capacity, once it is commercialized, what kind of margins we are seeing in electrolyzers manufacturing?

I would like to take up on this answer

by Vatsal Bhai and Chaitanya, who is heading to the division. Thank you.

Hello, Krishnaji. Thank you so much for your question.

So, for the modules, what we are asking, we are having a module from a smaller capacity of 250 kilowatt, then 500 kilowatt, then 1 megawatt, then 2.5 megawatt and 5 megawatt, the single stack capacity, which we are going to manufacture in our factory, and we already designed it for the capacity of the project of 100 megawatt. Yeah, and the margin is around 5 to 10 percent, yeah, to the start with, and after that, the margin, the supply chain, once the supply chain will be adding over, the margins will be around 20 percent in the subsequent year.

Okay, you mean, like, if I don't think I, the margin will be around 20 percent from this business, I mean? Okay. Because, why I am asking, because before we are entering into NRE division, we used to enjoy the margins around 17, 18, 19 percent. But as the revenue is going to increase in the NRE division, our margins actually subdued. So, but this quarter, we got around 13 percent. So, also, our conductor business also going to come and recently we got a very good order from ERS business. So, in this FY27, one of the participant servers answering around 1% of improvement in the margin. So, in an overall yearly margin, what kind of margin, is it 13% or 14% are we going to expect in the FY27?

Madam, thank you very much for the question. Looking at the margin, madam, in this year, we have seen a very high growth in the prices of the metal, also the fuel, and a lot of ingredients. So, that has taken the margin of the industry as a whole. But wherein, in this situation also, we anticipate at least 1% improvement in the margin. For the next year. That's what we are trying to tell.

Okay, but we have a clause of pass-on, the pressure of the cost improvement, sir.

Pardon, madam?

We have the, I mean, whatever the commodity price has increased, we have the clause of pass-on to the customer.

There are several business where we have the clause, and there are several business where we cannot expect this. A clause. If it is a conductor business, yes, we have the clause. If it is a transport business we are supplying, yes, we have the clause. But if it is a supply of some specific product like OPGW, we do not have the clause. But we are considering all these things and we have been talking about these numbers to you.

Okay. Okay. Yeah. Got it, sir. All the best for the future. Thank you so much, madam.

Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and 1.

The next question comes from the line of Kayan

Irani with Frontwave Research. Please go ahead.

Hello, sir.

Good afternoon.

So, I just wanted to check, namely, there's a new ALM on guidelines which have come into effect on June 1st regarding all solar projects in India, majority of them, coming like Indian-made cells. So, how do you see that impact in your business?

Hello, thank you for the question. So, yes, you are right. And this is actually a good signaling because this will be a similar clause addition in even the battery business and the hydrogen electrolysis business in time ahead. So there is a positive sign by the government. And in past, if you ask about our own projects currently, and moving forward, there is a positive signaling and all the EPC tenders that we are bidding at this point of time, For the customer project that we are doing at this point of time, we are already considering this particular factor and then putting the cost and bidding for the sale. So that has already been a factor. And for private development or C&I segment, this clause is not applicable at the moment. So we can still import on those lines. But in EPC tenders, which are government or PSU issue, this particular clause we keep in mind and then bid.

Okay, and just looking at our order book and also at the order book of the general industry, how much percentage will be private and how much percentage will be governed in? Because I'm just trying to assess how much percentage of the industry will be impacted.

It will be largely equal about 60, consider 50-50%. Yes.

Okay, okay. And any kind of hikes in, let's say, sell prices that you all are seeing in the market today because of this? Because we believe that the capacity is not yet built out fully to kind of take so much demand on the sell.

On the module side, the rates that we are getting are quite competitive with the international rates as well. So, I don't think that that will affect it that much.

But the cell being Indian-made, if the capacity of the cell in India is not built to that much demand, do you see any kind of cell prices of Indian-made cells going up which will then affect the model pricing also, maybe in the future, one year later? What do you see it as?

Currently, in recent times that we have been seeing the prizes, they are quite competitive in the open market as well. And this news has been going on since the past one year. So there are a lot of developments overall in the module market also. So Indian players are quite prepared for this shift. And there are already good tier one players who have already built up their shell capacities. So no, there will not much be a price impact for this.

Okay, okay.

Thank you so much. Thank you. Thank you.

The next question comes from the line of Ayushen with Ex-Equity Advisory. Please go ahead. Hello. Hello.

Yes, you're already with noise, bhai.

Yeah, yeah, yeah. Good afternoon. Hello. Yeah, good afternoon. My question was that you will make four facilities, right? Like, Edward BSA. Edward Battery Ecosystem, Edward Carbon, Edward Unified Real Development. So, what service has been created? I mean, do you have a partnership with some of your promoter entity?

All the subsidiaries have created a group with a serious focus of growth, taking the positions in the market, availing the very focused bank facility, and as in when we need to raise equity. Because we are looking forward to...

Now, you have already 4 subsidiaries.

I think I will try to cover this point in my opening speech and I have mentioned very very clearly that which subsidiary is for which business. But I will tell you once again, like AGPL is a company which is taking care of manufacturing of the electrolyzers and EPC service of the solar. Our battery company, Adelaide Battery Ecosystem Private Limited, will be manufacturing the battery and battery-related products to start with assembling of the container solutions and TNI solutions manufacturing. It may also expand in future based on the requirements. It may also go up to recycling of the batteries the time ahead. Carmen, we were already doing the business. Into the carbon segment by giving the carbon solution and trading of the carbon credits. So that business has been taken up into our carbon-related company. And we already received two asset-based projects in our Adwait group, which we will be taking up into our asset company. And in future, asset-based business will be taken up into asset company. So these are the four companies that are primarily working.

So when you are already doing business of carbon, suppose? Suppose, you are doing a carbon consistency business in your advert main company. Now you have created a 80% subsidiary, not only owned subsidiary. It's an 80% subsidiary. 20% belongs to whom?

That you can ask by a separate email, and we'll be able to reply the questions to you.

Okay, okay. I got that. I got that. Okay. Okay. Thank you.

Thank you. Bye.

Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. The next question comes from the line of Shashank Cha with SB Capital. Please go ahead.

Yes, sir, this question regarding solar efficiency, so basically I want to understand that most of the project that we are getting to now is balance of plant, like the client will be giving us solar module. So when are we moving to this pure place solar efficiency?

You will see this in this year itself.

As you know, the last year and the half year previous to that were invested in capacity and capability and qualification building. So now we have got the QRs which are necessary to participate in the large tenders that have been offered. So including modules, the projects that we will be able to build and we will be able to secure a few orders in this year currently.

Now, sir, how many megawatts can handle our capacity? How many megawatts can we handle the order?

Physical capacity is close to 100 to 200 megawatts.

Okay, what is it? Now, sir, let me tell you, if we are so much capex, how much funding can we take? How much funding can we take? How much money can we take? How much money can we take? I just want to understand, sir. Yes, of course.

Yes, of course. We will take up the equity route, but more predominantly, it will also follow the late route. We will make a mix based on the business composition. But it is very clear that we are going to expand.

Yes, sir. What I am seeing that you are almost in every sector where there is growth. That's why I am very very interested in your conversation.

Pardon?

Pardon, please. Yes, sir. You are almost in every sector where there is growth. Like electrolyzer, fuel cell. Yeah. It looks like it's in a vegan. Vegan is there.

Yeah. Yeah. So that's what I am trying to hear that we want to take that growth. With strategic and structured way, so our equity, we also want to invest and allocate in that way. So, based on the requirement, yeah, yeah.

Sir, if you don't want to do so, if you don't want to do so, if you don't want to invest in the business, you'll need to do so. As a marketer, you'll need to try to do so.

Sir, equity dilute definitely will be the one who will benefit the business of the shareholder.

Okay, last question. How are we talking about the future? Pardon?

I have this question very, very clearly and openly, that our vision is to be ready to take the plunge, being the first in the market, the first few, first two or three. So, this is definitely depends and driven by the market. So, the market is opening by 2027-28, we'll be ready. If it is opening by 2028-29, we'll be ready. If I personally see this market should go up to 500 megawatts before 2029, I can see personally. And the total, it can go into gigawatts. But at the moment, I see 500 megawatts in next 2 to 3 years. When it is going to come? It depends on lot of sector, which is beyond our control. But we will be ready.

Great, sir. Great. And sir, this data center is our true self-plan. It means that it's electricity, basically. And it's marine, etc. What are you talking about?

Yeah, see, data center. We will be requiring, of course, a continuous backup power and emergency backup power. There are two kinds of things, okay? And we all know that data center will have to shift gradually towards 100% green power.

Yeah.

So that will necessitate the requirement of BSS. And fuel cell for backup power. And maybe if the fuel cell is going to be more economical in time ahead with the cost of the hydrogen, then the fuel cell will be used as a continuous power for the data center. Wherein, when you look at the Coast Guard and the projects like Bharat Sethu project, Samudra Sethu. For these kind of projects, we foresee the requirement of the fuel cell in mobility.

Okay, great, sir. Sir, one of my technical questions is that solar power power power power power power power power power power power power power power power power power power Thank you. So same thing is based on the battery. We have DC power, AC grid will come, so here is AC-DC conversion. So my question is, 1 GigaWatt AC power for battery, how much battery is in battery?

I don't think it is only 60%. Solar, normally DC-AC will be 25-30%. Maybe he would have considered other factors in normally DC, AC and solar, when he produces so and so DC power, AC will take about 30% will be the variance. But that is not the losses. That is normally a conversion and you have to take care of that investment in the solar. Here we are talking about the losses for the battery. So for the battery in... In and out, we call it AC to AC, will be roughly about 5 to 7% losses for AC to AC.

Okay.

And when we talk about the other...

You have only a second.

Pardon?

And I think you were also discussing about the losses into electrolysis and fuel cell or you were just asking about the battery and solar? So, there are two kind of losses as far as we talk about the energy storage. One is the degradation over the year, which may be subject to 1 to 2 percent per year, that is the degradation. And second, the losses, which is AC to AC, which is taking AC power and giving back to the system, which will be between 5 to 7.5 percent.

Okay, that means 100 gigawatts and extra power gigawatts that will change.

100 gigawatts normally people are planning 115 to 120 gigawatts of installation of the battery.

Based on the demands of our capacity, we are doing 5 gigawatts and 5 gigawatts plan. So, we have 100% utilization rate up. I know that it can change. Positively, negatively. So, what does it look like? Thank you.

Eighty percent, eighty-five percent.

Okay, okay.

Maybe a year and a half to start from.

Okay, great, sir. Thank you, sir.

Thank you. One other. Thank you. Thank you.

Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Santosh and individual investor. Please go ahead.

Thank you for the opportunity. While consolidated net profit grew by over 70% this fiscal year, we are seeing some drag in operational tax flow like this is just 5.8%. I wanted to understand what scale of operations do you expect operating capital to run call 2 and align with all that?

Can you repeat your question in two parts? I think you have asked two questions. One is related to margin and one is related to working capital.

Yes.

So can you repeat your question in two parts?

So our cash flow, sir, because my question is basically around cash flow. It is, I think, in this picture it is around 5.8 crore, right? So, at one point, can we expect the operating cash flow to turn positive and align with that? So, we have a lot of data from it, but that is not getting converted into operating cash flow, right? That's what the question is.

So, the cash flow is largely 5.82, which is you have mentioned correctly. It is against after no factoring the working capital investment into. Okay. Time ahead, year on year, when we are realizing working capital into a business, this cash flow will be further improved. Largely, our revenue has been increased during last quarter, as you can see. The last portion of working capital has been also changed during that particular period. So, the time ahead when this cash flow is subsequently realized, it is impacting more positive from cash flow operational activity. Now, your second part of question about the working capital. Can I have this?

Yeah, regarding working capital, like, as we always said, are we going to, like, are we funding these from working capital loans or debts for our daily offices?

Sorry, I am getting lots of noise from your background.

Okay, I'll get back to you. There's some problem.

Thank you. The next question comes from the line of Gautam, an individual investor.

Please go ahead.

I was just going through an article which was mentioning about government planning for a 1150 ultra-high voltage transmission system under the national electricity plan. So, I just wanted to know... Our company will be party to this implementation or we are not right into that segment and how we will be benefiting from this.

So you are talking about this ultra high voltage capacity addition AC side or DC side? It is AC side. So, our company's focus is not to move the transmission line. But our focus is to manufacturing the products, which are specific like OPGW, ERS, providing the stringing tools to manufacture the transmission line, and also to provide the conductors which are high ampacity. So we can say that up to these products are concerned, our company will be the partition to this, but not as an EPC of the transmission line. As our growth plan, We are not envisaging the way to do the EPC of the transmission line or to manufacture the towers for the transmission line, but we have been providing the allied products for transmissions like specialized high-emphasic conductors, OPC2, Tinktools, and ERS. These all four products will go into this new segment. Just will be the beneficiary of this plant.

Now, am I audible? Yes, sir. Mr. Gautam, does that answer your question?

Yes. Okay. Thank you. Thank you, Gautam. Thank you. Thank you.

There are no further questions from the participants. I will hand the conference over to the management for closing comments.

Thank you, everyone. On behalf of Management and Adhivet Energy Transitions Ltd., we thank you all for joining us for the post-earning call today. We hope we have been able to address majority of the questions. Reach out to us or our investor relation partner, E&Y. Any further queries that you may have, and they would connect with you offline. Moderator, can we now close the call?

Yes, sir. Thank you. On behalf of Agrair Energy Transition Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.