Gujarat Industries Power Company Limited (GIPCL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Gujarat Industries Power Company Limited Q4 and FY26 Earnings Conference Call. This call is being hosted by Anurag Services LLP on behalf of GIPCL. From the management, we have Mr. K.K. Bhatt, Executive Director, Finance, and Chief Financial Officer. Mr. Salen Patel, Company Secretary and Compliance Officer, and other senior members from the management. As a reminder, all participant lines will be in the listenerly 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 this conference is being recorded. I now hand the conference over to Mr. KK Bhatt, Executive Director, Finance and Chief Financial Officer, GIPCL. Thank you, and over to you, sir.

Thank you. Good evening, everyone. Good afternoon. Yeah. Proceed. Yeah, proceed, please.

We can, if possible, we can go directly to question and answer.

Yes, sir.

Thank you. 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

Preet Nagarseh with Wealth Advisor. Please go ahead.

Yes, hi. Good afternoon, and thank you for taking this question. So the thing I wanted to understand first is that if you can help us, what is the PLF for the months of April, May, and June, or one, the 600 megawatt solar project, as well as the lignite plant, if you can give us a sense of time.

Basically, these concerns call is... For the result for the financial year, 25-26. But however, the PLF, you are asking for the thermal stations, they are very good. PLF is there. In case of thermal stations, that is SLPP-1 and SLPP-2, both have crossed the threshold limit of 70, nearing to 75 percent SLPP-1, and SLPP-2 is also nearing to 80 percent. So there is no issue of running the stations at good payload factor.

And regarding the solar one, 600 megawatts, what is the update on that in terms of PLS?

Just a minute. What is the THAVDA? 33.24.

Okay, sir. And sir, if you can please help me, guide me, what is the conversion of this PLS to revenue if you can understand? So how do I size this up that the 600 megawatt at 33 odd percentage, how much revenue should we expect out of that?

Basically, revenue is 2.73. This basically you have to calculate separately. That is CUF multiplied by 24 multiplied by capacity. You will get the million units and then you have to multiply by the revenue. You will get the revenue.

Okay, sir. So, sir, I think in a rough sense, could you give us a sense of how much this will be for the full financial year? What should we expect for the FI 2627? Just based on your rough sense.

See you if you are expecting?

No, I'm seeing the revenue, sir, for the 600 megawatt plant.

Would be around...

Yes, I am talking of Khawra only.

Yes, sir.

Sure.

Thank you, sir.

Thank you. The next question comes from the line of Saket Kapoor with Kapoor and Company. Please go ahead.

420 crore revenue would be roughly generated from Kauda.

Hello.

Yes. Yes, Saket ji.

Yes. Yes. Namaskar sir and thank you firstly for this opportunity. Sir, if you could just outline to us or give us some more understanding of currently how our assets are sweating in terms of the entire portfolio, and what are we eyeing in terms for the ensuing year? And also, sir, what we have been reading about is A lot of grid congestion and issue with the evacuation of especially the solar assets have been read about. So, how is the company preparing itself for the sale? So, just if you could just give a set of background to us of how are we going to attract these solar assets in particular, and also in terms of the thermal, wherein we have also announced, I think, some new capacity additions. So, some bit of thought process and some more color on the sale.

Thank you, Mr. Saket. Basically, our all stations are doing very well, because we are top in the merit order. So, generation-wise and power evacuation-wise, uptake, there is no issue. And as such, the power evacuation problem may be faced at some locations, but especially thermal, we are not facing any issue. As of now, and we will not face also, because of the region, power evacuation in that region is more robust, and it is, there is a heavy demand of the power in the South Gujarat. Secondly, regarding the sari, solar, our all stations, power evacuation is at full capacity. There is no backing down. However, you may be referring about the khabda region. There is power evacuation issue is there. Since the entire KPS-2 is still yet not ready, so there is a capacity addition has taken place, but evacuation line is not fully operational. So that issue is there, and it is being allowed on product basis by PGCIL. But as such, we don't have any issue. So, in 600 MW, we have been given the full allocation in November 2025, and we are evacuating the full load from the Chawda from 600. That is why our CUF is 33%. So, as such, we don't have any forces from GFCCL per se. There is any evacuation issue at any of the power stations.

Sir, out of our portfolio of 1100 megawatts at Khabra, 600 we have already capitalized and commercialized. And on the basis of the metrics which you gave just to the earlier participants, we are expecting 420 crore of revenue from this 600 megawatts or also the 500, what is the status of the 500 megawatts?

It is only 600.

It is only 600.

So, the 600 megawatts will generate revenue of 420 crore for the financial year, 26-27.

That is an approximation. It may go up also. It may 5-10 percent go down, go up also, both ways.

Okay. And about the remaining 500, what is the status and how will those come into play?

Basically, we are at a very advanced stage of commissioning in stage banners, and we are just waiting for the power evacuation facility being getting ready by PGCIL. I think post-monsoon, they will be ready. So, we may be able to commission the first phase of 200 MW and followed by another 200 MW in the next couple of months.

Okay, so just to give some more color, the 600 megawatt that we have, I think, already capitalized as on March, so what is the depreciation and the interest cost? If you could just give the EBITDA number for the 600 megawatt asset, that would give us some more understanding, or what is the EBITDA margin trend for our solar asset, if you could give the color on the screen.

Just a minute, every gun margin of this would be...

355. From 600, how does it?

355 crore should be the EBITDA.

350 to 360, you cannot assume.

Okay. So, okay, sir, that is on the revenue of 420, we are going to exhibit the EBITDA in the

vicinity of 350 to 360.

Yes, yes.

Yes, yes. Sir, now coming to the current maturity part, how are we going to repay the loan? What are the current maturities or the monitoring period that we have? And if you could just give us some color, how is this repayment cycle going to commence?

See, basically, our thermal stations all are deck-free. Solar existing 262 and 112. Wind is also more or less dead free. Very small portion of dead has remained in the group. Only the cover of 600 MW. Debt is there, interest payment, payout is there, and one year moratorium is there up to the July, June, 2026, that is the current quarter. The next quarter repayment will start. But technically, we are making the profit from 600 megawatts, and it is ballooning. First five years, it is less than, second five years, slightly top-up, then another top-up, like that ballooning repayment is there. So we don't see any issues on the repayment side also, because we have enough cash surplus being generated from this. Khabda 600 MW to repair the repayment side of the loan.

Okay, sir, we ended the year 31st March 26th on a borrowing of $32.50 under the non-current liability. So, taking into account the monitoring period getting over and our retirement schedule, what should be our long-term borrowing number post-commissioning? Also, I think the 500 will also get commissioned, but that is factored in the 3247 number. So what should be the closing debt number on the long-term borrowing?

It would be around 4,500 crore, roughly, you can say, would be the debt portion, after commissioning of the 500 crore.

And this is after the loan, which you are going to repay for this year?

Yes.

Sir, just to correct me here, when we look at our capital work in progress, that number is 2,000. So that is already there in the borrowing. So why is the debt going up by 24,500? Or this will get transferred to the debt?

See, basically it is in the project phase right now. And that capitalization will take place simultaneously. Borrowing has already been taken from the lender towards the project. That is also being shown in the books of accounts.

That was my point, sir. Why is the number going to move up from 3200 to 4500, when the capital work in progress is only getting capital?

We have not taken the full debt as of now. It is still reimbursement is pending. Work is going on. So there are certain conditions of payment to the contractors based on certain fulfillment of certain conditions. PV modules have been supplied post-March. Then balance of supply work is also going on. So 500 MW has not yet completed on 31st March.

Instead, with regard to the storage facility and how we have seen that every RE player is coming up with some form of the other of the battery storage format. So, if you could just explain to us what should we expect from GITCL going ahead in terms of the battery storage for it and what are our preparations, if any, for the thing.

See, first of all, you should understand the PPA parameters, which we have entered into with G1L. Wherein off-take is being taken by G.O.N.L. on fullest capacity. So as such, I don't require as of now any storage capacity. It is to be governed by G.O.N.L. as a off-taker of the power. If he feels there is a requirement of storage capacity in the RE, because to maintain the grid, they will definitely tell us to go ahead with the storage facility in the existing project. So we will take that to our stride. We will put the storage capacity as may be required.

And and pertaining to the the new thermal power. The power plant announcement that we had earlier, or if you could just outline to us what is in foray in terms of addition of more capacity in this thermal space, and also what would be the likelihood future of our gas-based plants? And now it is six long years that they have been stranded. So what is the thought process currently of the management with respect to the availability and thereby utilization of those assets?

See, the gas station, looking at the current geopolitical situation, I think it is not going to be revived now. So we are trying to put the best capacity in the existing thermos. Gas-based station location, and we are using the existing facility of switch yard and other facility of evacuation towards the back, and we have already got the approval from GONL to put 20 public 120 megawatt back, and the tender is already in place. So, putting the first phase of batch, this is the first step, and we are also thinking to put another 30 into... So, this is the thought process of the management regarding the utilization of the existing facility at Baroda location, and regarding the capacity expansion of 750 MW thermal lignite base. And we have already floated the tender, and it is under observation by BHEL and other parties. So once the tender gets clear and the order is being placed by end of the current financial year or first, say last quarter of the current financial year, the rest project will start on its own for a period of three, four years down the line. 3 to 15 to 3 capacity will be commissioned by 31, 32, and 33. That is the right now target.

Right. Sir, I'll just join the queue for my follow-up. And thank you, sir. And we hope that there are continuity of these calls either on a Y annually or a quarterly.

Yeah, yeah. We will definitely, we have understood your requirement and we will definitely come to you on a regular basis so that you will get the regular updates as may be required.

Yes, sir. I'm joining the queue, sir, and all the best to the team.

Thank you. Thank you.

Thank you. The next question comes from the line of Kiran Veta with Eureka Investment. Please go ahead.

Good afternoon, sir. I'm very happy with this call, and I would request management to continue this feature. Sir, just to continue with Sathir's question, so are we incurring additional 1,500 crore kind of investment to commence at 500 megawatts? That's number one. Number 2, just my understanding, sir, you said around 350 crores EBITDA from 600. This 500 would generate another 350 and our present 300 EBITDA. So does it mean that by 2627, we are looking at 1000 crores of EBITDA, assuming 500 megawatt is also operational by then? My last question is, sir, we have a Khaura park where we are establishing the solar park, and I think we have been allotted a very huge land. So what is the development on that and where we can start generating EBITDA on those projects as well? Thank you, sir. And I wish we are in a very big transformative journey generating a thousand crore kind of EBITDA from XY27. And I wish we have more discussions on ConPulse. Thank you, sir.

Yes, you are absolutely correct, but this year you will not see the EBITDA of 952,000. Once the 500 get commissioned for the full operational year, hopefully next year you will see this figure on the paper. Once all the stations are commissioned and full year of operations, This pre-bita margin of 950 to 1000 will be there, as you rightly mentioned. And regarding park, we have been allocated 2375 megawatt park, wherein in the park 1100 we are putting on our own, and rest we have already given to third party to sell to the G.O.N.L., and those parties are Whole India, SJVN, and SAEL. So that PPA is directly by the project developer with JioHanel. We are only the park developer, per se, for power evacuation and infrastructure facilities to be provided by JioHanel, which is already in place and that is available to other park developers.

Thank you. The next question comes from the line of Falguni Datta with Manseroe Financials. Please go ahead.

Yeah, good afternoon, sir. Sir, I have a few questions. One is this, you mentioned, just to clarify, this 500 megawatt solar plant is coming, will be commissioned in S527, is it?

Post-27, it is going to commission in phase manner, 26-27, and most probably post-monsoon, once the work will clear up, by third quarter, it will be mostly commissioned capacity.

So, the capacity will be commissioned by end of this financial year. The revenue may start from next year, right?

Revenue will start post-commissioning, but initially all the tithing problems, O&M issues may be there. So full operational, as you see, 600 MW is giving me 33% here. That figures will turn out in the next financial year only.

Okay, and this 1,000 crore EBITDA that you mentioned is for the solar division?

No, no, it is in time, including...

Okay, including lignite and everything?

Yes, yes.

And the expansion that you mentioned, 750, was for the lignite plant, you said?

Correct, correct, correct.

And, sir, I have one few questions based on Q4 results also. The other income that was of 42 crores versus 13 crore in previous quarters. So, can you give a breakup of this 42 crore other income?

See, basically other incomes are from the insurance claims, which have been settled in the current financial year. I have been crystallized, and we have booked, and out of that, one income is from the income tax return, income tax refunds.

Okay.

What is the amount?

I will let you know.

17 crores is towards the income tax refunds.

So this user development charge revenue and the subsidy from the government and O&M revenue, none of these has come this year?

UDC is a capital payment, upfront development charge. That is not an income. O&M, as you rightly said, is an income. But O&M will start once the Asper PPA, their plant gets commissioned. So current financial year, O&M will start getting from the Khaura chart from the developers. Okay.

And sir, another thing was like, could you give me a, just the EBITDA for the, just the solar division of art? The entire solar division, the EBITDA numbers. For full year, FY26.

FY, solar division, EBITDA would be around, you can say, 600 somewhere. 600 crore? 2627.

No, I am asking for FY26 year gone by, the solar EBITDA.

Last year.

Last year.

2526.

Yeah, for 2526.

It was only 332.

Okay, which will go to 600 crore this year?

Yes.

And sir, what was the PBT for the solar division last year?

Thank you for the solar division.

62 crores. And another question is, sir, how much of the increased depreciation increase do you expect next year?

Here means twenty-six, twenty-seven?

Yeah.

See, right now it is hundred and seven to hundred and ten. It will go double for two hundred twenty-five to two hundred and fifty because of addition of the data of five hundred plus six hundred. Both will be there in the books. And since last year, 600 was commissioned in December, so only one-quarter interest is being booked in the current financial year. This year, it will be total 600 plus the existing, so it will go double-fold, around 250.

Both interest and depreciation.

Decreation would be from 187 to 345 to 50, it will go.

It will go to 350, depreciation.

Yes.

Okay, and sir, at the peak, so the revenue from this Khavra area where we have done the infrastructure work, the revenue for us, the additional revenue which will flow from the other operators will be only O&M, which will come into P&L.

Because other operators are going to sell our to G1L as per the PPA, we will be getting only the O&M parts as per the terms of the MNRE, terms and conditions as a part developer.

And the subsidy from the government and user development charge will not be a part of the PL, the subsidy portion and the user development charge.

These are all capex items. It is being captured in the books of account as per the terms of the index and amortization, through amortization. Okay.

So they will not come in P&L?

P&L, definitely it will come, but it will be in the form of amortization. It is just like the P&L.

Okay, understood. And O&M revenue, how much do you expect at the peak?

O&M revenue would be around 55 to 60 crore.

Okay, at the peak. Okay, sir. Thank you. That's all from my side as of now. And, sir, one more question. What was the path for the solar part in fall last year?

We are not having any tax expense as such in any of the divisions. Tax is being taken as a company, as a whole, and we are in meds, so that question of FAT at the division level doesn't arise.

Okay, okay, sir. Okay, thank you, sir. That's welcome, my friend.

Thank you.

Thank you. The next question comes from the line of Vipul Shah with Shubmangal Investments. Please go ahead.

Hi, thanks for the opportunity, sir. So, my first question is capital work in progress, that is 2065 crores, that pertains entirely to the 500 megawatt project, which will be commissioned this year?

Yes.

Okay, and sir, in reply to your one earlier question, you said, Dollar division, EBITDA, last year was 330 crores, and you are expecting EBITDA from 600 MW project of another 350 crores, right? Okay. And what will be the revenue? We are given 200. The 2375 megawatt part, and we are developing only 1100, so REST 1275 will be developed by other developers, but what is the revenue model here, and what type of annual revenue we can expect? If you can explain the revenue model, it will be really helpful.

See, as a bank developer, our role... It's to maintain the park entirely, wherein the revenue will generate from the park by way of O&M from the project developer. It would be around 50 to 60 crores as per the terms of MNRE finalized the O&M to be recovered from the park developer by MNRE. So that income is around 50 to 60 crores from the park.

But we will be incurring expenses to maintain the park also, no?

Yes, yes.

So, net-net, what should be our earnings from this activity, where we just acted as a facility trader?

See, it is basically, as of now, we are expecting around 20 to 25 per hour revenue generation net of the expenditure from the park.

And that will be for how many years, sir?

It will be for 25 years, till the time of CPA signed with you, no?

And sir, what is our average coupon rate on this borrowings?

7.8.

7.8?

Yes.

And regarding the expansion of 750 megawatts of thermal capacity, what type of capex will be requiring?

Around 6,500 to 7,000 would be required for thermal capacity of 750.

Don't be around there.

We are expecting 6000 crore capex towards the thermal of 750.

So we will start growing that from which year? So again that will go up, right?

Yes, definitely that will go up, but it will be in phase manner because the gestation period for the... The lignite-based thermal station to come up is nearing three to four, minimum four years. So we need to have the capex in phase manner. In next, starting from 2027, it would be till 2032-33, capex race will be there towards 750 in phase manner.

So, considering this current date and this date which we propose to take for expansion of thermal capacity, what should be our peak date?

What should be our?

Peak date.

Peak date would be around 4500 you can roughly take.

Including thermal.

Including thermal, see, when the thermal will come up, again it will go down. Some repayment will be there towards the existing debt. So, again, that we have to work out. 4,500 crore debt will be added in phase manner, but repayment will be there of these 4,500 or so. So good, odd figure would be around 6,000 to 6,500 at a 1 point of time. You can add. You can say it would be there in the books. Pick that.

And lastly, are we covered for full fuel for this expansion of thermal capacity, all 750 MW? Do we have the lignite supply covered?

See, we have the available ignites in the region to cater the requirement of the total 750 plus 500 for the entire PPA life period.

Okay, sir. Thank you very much, and I hope you continue this practice of holding convuls regularly, and another suggestion, if you can give a presentation of all the figures which you have maintained, so that we don't have to ask. Yeah, so like all other generation companies, if you can give in tabular form, it will be really very helpful, sir. Thank you so much. Thank you very much, sir.

Thank you.

The next question comes from the line of Jukal Shah, an individual investor. Please go ahead. Thank you.

Sir, I just have a quick question on our FI26 number is approximately 1,600 crores as your top line. Can you just give us the breakdown? I know the Khabda is just towards the end. So, X Khabda for solar, X Khabda for wind. That's thermal, and whatever we have contributed towards $1,500 for Khauda, can you give the breakdown for the revenue numbers?

You are talking about 26, 27, or 25? 25, 26.

25, 26.

25, 26, you want the revenue backup, revenue addition from Khauda.

Outside of Thawda, you mentioned that 600 megawatt is not 100%, right? So if you can break up into X Thawda for solar, X of Thawda for wind, and Thawda and thermal. If you can give us a breakdown for four of these.

This is solar, this is revenue is

152 crore, then wind is 86 crore, 75 megawatt solar is 38 crore, powder is 111 crore. So this is the revenue from the RE division. Revenue from SLBP 1 and 2. It is around 1,030 crores.

Okay, 1-1-0-3. Okay. And, sir, what is the top-line growth, if we need to understand, because 600 would be fully operational for this F526, F527, and again, 500 megawatts would be partially. So, can we expect a growth of at least 20-25%?

See, the revenue addition on the top-line would be around between 400 to 425 to 30 crore. On the top line, from 600 million, in roughly 30 to 40 crore will be the top line addition towards the Haripa. So you can say 450 revenue top line will be added in the existing top line.

Okay. Answer as a blend. As a blended margin, can we, because I know for solar it is higher and thermal it would be lower, but as a blended, can we expect at least 40% margin? Because we will have more of solar into life.

Margin means?

We have a bit of margin.

EBITDA, I have already given the calculation. You can work out. It would be the full capacity, 600 commissioning, 26, 27. EBITDA would be around 950, 940, roughly, hovering. So, you can work out the percentage.

Okay. Okay, sir. Thank you. I'll give you back in the line.

Thank you.

Thank you. The next question comes from the line of Kiran Kothari with Sumit Enterprises. Please go ahead.

Sir, my question regarding Khaula Power Station, G600MHz, it was claimed that CU filled with 28%, but in March quarter, it actually, it was... It is working three full months, and according to your website, the COF was 23%. Why it is so?

That is last year's figure, and I am talking about the current year, what has been asked by someone. That is, I am talking about the COF of the current year. That is December we have commissioned in phase, and that COF represents the last year's COF.

So, this quarter COE is 33%, right?

We have come. Last year it was in the tithing phase, and we have solved all the tithing issues, and now we are on full tithing.

So, this quarter it is going up. Right?

Yes, this quarter, second quarter again, it will go down because of the monsoon. And third quarter again, it will pick up.

I just want to confirm, it is 33% in this quarter, against 23% in March quarter, right? And the second question about, second thing about, all the companies give their production numbers post-March, March after the end of the quarter, and your website use only after results. Why don't you update as soon as the portal ends?

See, basically, after the quarter end, there are certain data which is getting validated by WRLDC and SLDC, which takes around one, one and a half months. Roughly, they go, they lag behind, and that data is being validated, and then the actual power which we have sold, that is getting confirmed. That's why we are not declaring the earlier before the results. That is the reason.

So, my question about that solar power plant in Khoda. So, what will be your expecting CEO of this plant?

See, I have already said 33. But during the monsoon, it will go down. But roughly yearly, if you see, we are expecting 30 plus.

30 plus. Okay, and what about Baroda gas station? It is real right now. What is your plan for that?

I have already replied, Baroda station, other than plant facility, we are using towards the BAS, and we are already putting up two BAS stations to Baroda.

BAS stations?

BAS means battery storage.

Battery storage.

Yes, battery storage.

Okay, and regarding the 75 megawatt that is remaining to 1175, you are supposed to develop. You are developing right now 1100. What about the 75 megawatt it is remaining?

See the 75 megawatt capacity which is being available as per the MNRE and the PARC. We have more than 75 megawatt available land because of we have used the land in very best manner. So we can have the available land to put 200 megawatt over there and we are planning to have the 200 megawatt capacity with that and it will be coming in the next couple of months. That project will be saved there.

Okay, and one question more about your group power plant. You have commissioned one group power plant last year of 75 megawatts with your promoters. So what is the revenue model of that plant? How much revenue you get from that plant?

Last year, we have commissioned in the month of May, and we have the revenue of around from that session, just a minute. Thirty-eight karoes.

Thirty-eight karoes.

That was the first year.

Oh, nine months. Okay.

Yes.

Hello?

Yes, it was nine months.

Okay. Thank you. Thank you, Professor.

Thank you. The next question comes from the line of Preet Thakarset with Bells Pinvisor. Please go ahead.

Yes, sir. A couple of other questions. One is, would it be possible to publish the PLF data on the BSE and NSE sites? I mean, so that all the investors at large would have access to that information? So the other question I wanted to ask is that will you be needing to raise further equity for the additional 6000 crore thermal capacity that you are putting up?

See, as a plan, we have any plan that if required, we will raise the equity or we may go to our promoter company. Getting the infusion of equity has maybe required, because it's your cash.

Right. The reason I'm asking that is, sir, any project will have a 70-30 financing, right? So, of 6,000 crores, if you're getting debt or the cost of the project, then there will be a certain large component of equity needed, even if the promoter has to put it, right? So, that number will have to come in.

We will see because 4,800 would be 80-20 debt and rest 1,200 would be the equity. We will see how it is to be funded whether through internal accrual over a period of five years or through promoters' infusion or some equity dilution or in the market, from the market. We will see how we can manage those equity requirements.

Wonderful.

Thank you, sir.

Thank you. The next question comes from the line of Vikram Damani with Damani Family Office. Please go ahead.

Hi, good afternoon. Am I audible? Sir, one few questions. Starting with the lignite new plant that we're proposing to build, will that be covered under a PPA with our promoters?

Yes, not the promoters. There will be a PPA with the power of Tegar GUMB.

Okay, for the entire capacity?

Yes.

Okay, and for the next year, FI28, once 500 MW is also operational, what will our interest cost and depreciation be for next year?

Thank you.

Depreciation would be around

550 to 600. Okay.

And interest?

400 crore to 450 crore.

Great. Another question, sir, you are speaking about converting the Baroda gas location into BESS stations. Could you throw some light on the kind of KPEX revenue, customer, how the economics of that would work for us?

That is basically, we have already got the approval from GML, that capacity is basically a storage type of mechanism. In cut and fixed revenue will be given by G1L towards putting the power and the battery storage, and then up the cover, it will be transmitted to the grid as may be required by G1L.

Okay, would there be any CAPEX towards this?

CAPEX would be around 250 to 300 crores.

250 to 300 crores. Okay. And over the next, say, 12 months, like any item of timelines and what revenue can we expect from this?

It is one year. It will take around one year down the line to add the capacity fully operational.

And revenue? What can we expect on an analog basis?

Revenue would be... I have to check there is a model, but... It is basically, we want to understand the whole mechanism of that. That is why we have given that proposal to the URL. And per unit, it would be around 6 rupees. The revenue model is there.

Okay, so it would be per unit. And so last thing, you mentioned that... We have land available in Khaavda, and we are speaking about going from 75 to additional 200 megawatts. How, how, is that a firm plan?

Yes, we have firm land, that the land allocated. It was 4750 hectare, that is for 2375 megawatts, but with the optimization of the land, we have the available pocket of land, which can take, wherein we can put 200 megawatts at least capacity at that location.

And if at all, then we start that process in FY27, so our 4,500 crore peak debt, not counting the lignite plant. So those numbers could change conceivably?

Yes, yes. When the capacity of this new 200 MW ad, it will again change. Then BAS, it will slightly impact on the 4500, but BAS will not have much impact. 200 also would not have much impact on this dead portion, because it is a very, if you see, it is around 800 to 1000 perot. If we take the 200 megawatt capex at the Kauras, so that amount of debt would be very... Minimal on the overall 4,500.

Got it.

We'll add more to 300 crores.

Very, very useful, sir. As a lot of my peers have mentioned, if you could have these calls more frequently, it would be very useful for us, along with some presentations. Thank you so much. All the best.

Thank you.

The next question comes from the line of Saket Kapoor with Kapoor and company. Please go ahead.

Yes, sir.

Just a small understanding. So, what will be our repayment schedule in terms of the 4,500 crore debt repayment by the coming 4, 5, 4 years?

I have already mentioned. I don't remember. You have to come down. I have to show you the schedule. Initially, it is on lower size, initial 5 years, because I know we have this project. Then again, it will top up. Then again, next five years, it will top up. So like that. It is step-up, prepayment is there. But I don't remember the figures and percentage right now.

And, sir, as you have mentioned that the buyer for us is GU and real, so that is assurance from them. But as we have seen that our is a… State that is surplus in electricity. So, going ahead, do we have the STU and the ITU also signed, going ahead, or what happens in case of the supply exceeding the demand for the state? How will then our utilization, especially for the RE assets, play out?

Thank you. But since last 10 years, there is no supply and demand mismatch. Demand is always more than the supply. So industrial growth will be there as per the GDP growth. And Gujarat is a growing state. There is a demand capacity requirement has already been envisaged as per the development being taken place. So, I don't think there will be any surplus like that, and even if surplus happens, we are on top of the merit order. So, as per the merit order, those who are costly power suppliers, they will be curtailed down. First, will not be impacted.

Right, sir. Sir, just to the earlier participant, you mentioned the depreciation number for 2728 in the vicinity of 550 to 600, and the finance cost trending between 400 to 450. That is what the number for 2728 is probably modeled now?

Yes.

And what is the corresponding number for 26-27, sir? That also you mentioned just if you could, for the sake of reputation.

26-27, it is per se assumption. The depreciation would be around 425 to 450, and interest cost would be around 270 crores odd figure we are expecting.

Okay, and the incremental revenue would be to the tune of 400 crore only.

400, 600, and if you like that ProRata, 500 also at the same 2.73, ProRata you have to work out for 500 also.

Okay. 400 is for the entire year for 600 MHz, and 500 we have to work out ProRata basis of the commissioning and the ramp up.

Correct, correct, correct.

Okay. Thank you. Thank you to all the participants and to you also, sir, for elaborating to us and giving us the color of the same. And as my friends have also mentioned, we hope that we look for the continuity. And also, sir, the press release part and presentation should be a part of our numbers also going ahead. Kindly look for the same and all the best to the team, sir.

Thank you. Thank you for that. We will take care and we will do that.

Thank you. The next question comes from the line of Nilesh Doshi with ProsperoTree AMC. Please go ahead.

Hello. Hello. Am I audible?

Yes, yes, you are audible.

Thank you. Thank you, sir. Sir, you have mentioned that the 500 megawatt solar project is not commenced because of the evacuation problem. But do the company has incurred the full capex for the 500 megawatt or still something is pending?

Not yet.

Not yet.

Not yet. So it means our power project is also not ready to start. It is not the evacuation problem, but our project is not also installed fully.

You cannot say fully because in the solar it is not like that. The total capacity has to be commissioned at one go. You can add 50 megawatt, 100 megawatt, 200 megawatt based on what capacity of evacuation is ready from yourself. So we are ready with certain capacity. But there is some issue, so we are waiting and watching and going ahead with the rest of the capacity addition according to that place.

Okay. Okay, sir. And, sir, under PPA, is power purchaser or power purchaser is under obligation to take whatever the energy we generate, whatever more of units we generate, or are we, suppose if the output is less than the estimated, then are we responsible for the lower output or in case we generate the higher output, then are we allowed to sell in the open market?

See, basically, there is no upper limit. Upper limit, whatever you are generating, you can push power and you will get the tariff. But lower side, there is a benchmark. Every PPA as per the terms and conditions of the location and your project. How you have done it? According to that, every PPA, there is a benchmark UF. If you are generating below those percentages, there is a penalty being imposed by the UNR in case of any lower side generation.

So, what assumption we have taken to the CUF while signing the PPA? See, because in the last quarter, just one of the analysts has asked about the CUF generated in the, it is around 20.5%, and you mentioned that in the current quarter, it is around 30 plus percentage. So, what is our estimate of CUF for all plants?

Basically, every plant is unique. Every plant's generation CUF depends on the location, radiation, what kind of panels are there, what kind of cleaning facility, roboting, tilting, all those things have to be seen. According to that, CUF is being estimated. For Khabda, we are estimating 30+. For Radha Nesra, we are getting around 28-29. Another thing is that how much is the DC edition is there, that is also matters. So, every project and every location has different CWF percentage.

So, this year we may reach up to 29 to 30% on a blended path because of the, including the Raghansheda and everything of the plant.

If you see earlier this Charingka, we will definitely get 29, 30.

And sir, our finance cost, you mentioned that 7.8% is the interest rate. Is it the fix or is it linked with the NCLR or anything?

It is floating.

It is floating. Floating. Okay, sir. And our method of depreciation is on a straight line method or WDB?

It is straight line.

Straight line method. Okay, sir. Sir, in such case, when our PPA is signed and our tariff is fixed, how the revenue will grow? Suppose if there is some shortfall of unit generation, then in that year, particularly if there is a long period of the monsoon or winter season, our revenue may be low because of the lower COF. In that case, what is our, any remedy for that?

See, basically, we keep certain margin in this UF percentage getting the profitability from the station. Then only we put the tariffs for the purpose of competitiveness. So, according to that, we have enough margin to take care of this kind of situation.

Okay, okay, sir. Thank you, and all the best, sir.

Thank you.

The next question comes from the line of Udit Segal with Pinpoint X capital. Please go ahead.

Am I audible, sir? So, looking beyond this 1100 capacity that we are going to do, and maybe another 200 addition to it, what is our medium and long-term plan? I mean, do we plan to be RE developers? And because, I mean, getting the connectivity and the land takes a long time. So, what is our pipeline like that for it, you know, after these projects are commissioned?

Basically, we are... As opposed to what I have mentioned, Thank you. There's a three addition in this. That work is already... Then we can have those numbers in place.

But what would be like a medium-term vision? Would we be planning to add like 500 or 1,000 per year or, I mean, something we must have made, right? Some kind of vision.

One day, an extra. We will see how we are going to get the land and where we are going to get the land.

Thank you. And on the BES front, sir, if I quote it right, first, basically we are going to convert that gas plant, the land there, and the connectivity we will be used to connect it to BES. That is the only BES project we are doing.

Yes. I don't know what that only we are doing. But we are open for any future BAS requirement comes into picture through GUNL for our existing stations. We will be happily ready to do those projects also.

Okay, great, sir. And with regards to pump storage, sir, how exactly are we moving with that? Because I think we were planning for something along those lines also.

We're heading to... Certain pockets of pump storage getting from the government, and we are in the process of getting those locations. Once those locations are made available from the GOG, we will definitely go ahead into pump storage also.

And regarding the connectivity to Bhavra, when do you, would be a, you know, timeline, like, maybe a monsoon, after monsoon, so you mean September, October, we could start getting the connectivity?

I think most probably by the end of this month, the connectivity will be no issue from the PGC.

Okay, so we could start our installation in phases from August itself, you mean to say. Okay. Excellent, sir. Thank you so much, sir, and a great initiative to connect with investors.

Thank you.

The next question comes to the line of Shurian Shraval, which are Investors Home Limited. Please go ahead.

A question is like, do you have any advance PPA for the Thawra project?

PPA is already in place for Thawra.

And what percentage of PPA and what is the tenor of the PPA?

25 years.

Okay, I understand. My another question is on, like, right now, any renewable contentment impact on your revenue or if it is, then what percent of it impact?

For 600, where there is no curtailment, it is a firm allocation. So we are pushing 600 full, that is why our CUF is 33.

I understand. Okay. Thank you very much.

Thanks.

The next question comes from the line of Ramakrishna with Equity Intelligence. Please go ahead.

Yes. Good evening, sir. My question is, see, this year our EBITDA was around Good morning, everyone. Our PBT was around 244 crores. So next year, suppose we are going to make a EBITDA of around 950 crores, and if we have depreciation and interest to the tune of 1000 crores, then the PBT will be very negligible. And this year, because of the transition to a new regime, we got a credit of around 260 crores. So, how do you plan to, so next year, what about the dividend and all that?

Dividend we are committed. We will pay what we are paying because we have certain obligations to the investors also. But let us see how the figures are coming around post commissioning 500. So EBIT is all depend on the how commissioning takes place for 500.

Even if you, you are mentioning around depreciation of 550 crores and the interest of 450 crores. So if you make a 750 crores, a 950 crores EBITDA, then the EBITDA will not cover both this interest and depreciation.

Thank you.

The figures of 25, 26, and 26, 27.

Ah, okay. So that, okay.

So that profit will be there. PBT post commissioning 500. We have to see when it is getting commission. Without 500, the profitability, PBT is very good. And if 500 is yet commissioned, there will be certain hit on the PBT because of initial tithing problem. Some initial loss like 600, which we have booked around to 20 crore in the current year, that will be there. So all the figures, crystallization will take place once the 500 gets commissioned.

So, the thing is, the 20, so 26, 27, you will not have much issue. Only 27, by the time, you will have other, some other income also will be coming in.

Yes, 26, 27, we don't have issue. 27th, 28th, when 500 will also start pushing the full power. So the top line and below line, both for PBT, would be better as of now, as compared to the current year.

Sir, another thing is, so we have around 310 megawatt of gas power plant, so approximately at a 10 crore, we must have invested around 2,000 to 3,000 crores on that. So now that is not giving us any return.

Thank you. As such, on the book side or loss side, as such, nothing is on the books as a loss.

Okay. So, if the gas prices come down, I think, because last two years we were not operating gas power plant because your cost of production was around 10 rupees. So, do we have any plan to restart that gas-based power plant if the gas prices come down?

But all this depends on the geopolitical situation and how the gas provision moves in the next couple of years. That only will determine the availability of my station.

But in case of torrent gas-based power plant, during the summer they operate because the peak power demand I think they are trying to supply. But we are not doing anything like that, no?

Right. Basically, they have certain gas committed, available from the sources at a very reasonable rate. That's why they were in a position to supply. Otherwise, they would not have been in a position to supply power.

Okay. Thank you, sir.

Thank you.

The next question comes from the line of Samit Kothari with Kothari Investments. Please go ahead.

Hello. Good afternoon, sir. Yes, I was hearing all this. Actually, what is happening, it is a lot of confusion there because of your projected depreciation number, interest number, 10 years. That should not be there. So, I think 26, 27, only part of the 500 megawatt is coming industry, right?

Correct, correct.

So, depreciation and interest will be also on the lower side this year, 26, 27.

See, 26, 27, 500.

What is getting, what is, what is getting confusing that everybody is thinking that the depreciation and depreciation and interest will be around 900 croons against the APB at around 950 croons. That is confusing because there is no, I think, 500 megawatts, the revenue generating by 500 revenue is not adding.

See, you are confusing. See, what figure you are telling is for 27-28, one of the investors has requested that once the 500 get fully commissioned, what would be the figure? This is the figure post-commissioning of the 500 in the box. For the current 26-27, it would be on pro-rata basis. Based on the commissioning, then it will be...

So I think there is substantial profit after tax in this year also.

But it will substantially the figures which you are referring will go down based on the commissioning takes place. Because already half a year will go away. So 500 megawatt commissioning interest and depreciation both get will half. And that figure which we are talking about, it will get also reduced by 200 crore roughly in both the sectors. Depreciation as well as interest.

But at the same time, we're also getting some revenues now that will get adjusted against the depreciation and interest. Natu, I just want to ask about 25, 26, 27, what will be the finance cost and the depreciation, and what will be the EPBI?

26, 27, there is a projected figure, I cannot give you the exact number, but roughly interest would be around 250 to 260, and depreciation would be around... 425 to 450. This is a roof, I am telling you. It will vary based on the commissioning of 500 meroes.

Okay. So, against an epi-weight of 950 keros, right?

Okay. Thanks.

Thank you. The next question comes from the line of Janak Shah, with Weld Twinweiser. Please go ahead.

Am I audible? Yes. Most of the questions are answered, but my question was that there have been several delays in commissioning the renewables, and the ROI is also quite low. And we are the only company, like we have done so many expansions, but we are the only company which is available at like low, like the book value is far higher than the current market price. When can we expect the ROE to cross the 14% mark? And any plans, further plans of adding a CONCOL every 3 months from your side, when the results are declared?

Basically, with ROE, you have to exclude this gas-based station, so you will get the ROE of more than 13 to 14%.

But the gas-based station still exists, right?

It exists in the books, but technically, they are, basically, we are thinking to hide off in very, we say, next couple of months, a decision will be taken, because nothing is going to happen on the gas front. So there is no point in continuing with the gas-based station in the books.

Right, sir. So today was a very good initiative of adding a con-call. Would it be possible to have a con-call every three months when the results are declared?

Yeah, yeah, definitely. Definitely.

Great.

Thank you.

Okay, thank you so much.

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. K.K. Bhatt for any closing comments.

Thank you all the investors for joining and having a good interaction with all the investors. And definitely we will take all your suggestions into cognizance. And whatever is the best possible from our side, we will take care and we will do that. If you feel any of the queries, you can mail it to cs-gfbcl.com. We will definitely reply those queries, even if you have forgotten any questions.

Thank you, sir.

On behalf of Gujarat Industries Power Company Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.