Waaree Renewable Technologies Limited (WAAREERTL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Wari Renewable Technologies Ltd. Q2 and H1 F527 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prathamish Parag from MUFG in time. Thank you and over to you, sir.

Thank you, Anam. Good afternoon, ladies and gentlemen. I welcome you all to the Q2 in H1 FY27 earnings conference call of Wari Renewable Technologies Limited. Today on the call, we have from the management Mr. Manmohan Sharma, Chief Financial Officer, along with the other management team members. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Now, without further ado, I would like to hand over the call to Mr. Manmohan Sharma for his opening remarks and then we will open the floor for question and answer. Thank you and over to you, sir.

Thank you, Pratmesh. Good afternoon, everyone, and a warm welcome to all of you joining the earnings conference call of VARI Enable Technologies Limited to discuss our financial performance for Q2 and H1FI 2027. I hope you have had the opportunity to go through our financial results and investor presentation, which have been made available on the stock exchanges and on the company's website. Before I begin, I would like to sincerely thank all our stakeholders for their continued trust and support. Your confidence in our business, our execution capabilities, and our long-term strategy continue to be a strong source. We remain committed to building on this trust through disciplined education, responsible growth, and a clear focus on long-term value creation. Now, let me begin with the financial performance for the quarter. During Q2 FY 2027, our revenue from operations stood at Rs. 1057.84 crores, reflecting growth of 36.53% compared with the same quarter of last year. EBITDA for the quarter stood at Rs. 159.98 crores with an EBITDA margin of 15.12%. Profit after tax for the quarter stood at Rs. 81.48 crores. For H1 FY2027, our revenue from operations stood at Rs.1982.09 crores, marking a gross of 43.84% over H1 FY2026. EBITDA for the first half stood at Rs.333.46 crores with an EBITDA margin of 16.82%. Profit after tax for the period is Rs. 200.44 crores. On operational front, we executed 456 MW peak of EPC projects in the Q2 FY 2027. That takes our total solar EPC execution for the H1 FY 2027 to 1,345 MW peak. Further, our order book has strengthened during the quarter with the addition of 1.7 GW peak of new orders. Moving to our unexecuted order book, as of 30th September 2026, our consolidated unexecuted order book stands at more than Rs.5,500 crores. Of this, more than Rs. 3,300 crores from EPC of solar and BES and balance of more than Rs. 2,200 crores from T&D vertical. This gives us healthy visibility for the coming quarters. I also want to highlight the growth in our other revenue segments which are now meaningfully contributing to our revenue. Our operational IP portfolio stands at 82.82 MWp and O&M portfolio has reached to 1.5 GWp. These businesses strengthens our recurring revenue base and help us build long-term relationships with our customers. Our capability in T&D segments have also continued to strengthen. We are expanding our manufacturing capabilities through the additional facility at Ajam Nagar with the capacity of 1 lakh metric ton. This further supports our ability to participate in growing requirements for transmission and distribution infrastructure. Our capability across EPC of solar, BES and P&D together with IPP and ONM allow us to participate in a wider part of the energy value chain. With this, WRTL is evolving from a pure solar EPC player into a broader energy transition EPC platform. Let me now turn to the broader industry environment where momentum across India's renewable energy sector remains strong, especially in solar. As of 30th September 2026, India's installed renewable energy capacity stood at around 299 gigawatt. The solar has contributed around 171 gigawatt. Within solar itself, ground-mounted projects contributed more than 125 GW, grid-connected rooftops around 33 GW, and hybrid and off-grid together around 12 GW. The government has also recently approved the PM Surya Sarover Yojana, which targets 5 GW of floating solar with co-located energy storage of at least 2 hours. With this, further enhance the segment of floating solar and energy storage. As solar becomes a larger part of the grid, battery storage is becoming essential to deliver that power when it is needed. The CEA estimates India's battery storage requirement is around 208 gigawatt hours by 2030. And the project pipeline is building up with this. As of May 2026, the BAS project above 1 MWh stands at around 144 GWh, of which around 7.5 GWh already commissioned, another 42 GWh under construction, and 39 GWh has been awarded, And another 55 gigawatt on tender stage. And these clearly highlights the demands toward BES is growing in the country, which is a clear opportunity for the company to offer solar and BES EPC solution. Furthermore, the Union Cabinet recently approved the Green Energy Corridor Phase 3 scheme with a total outlay of around Rs. 1.86 lakh crores. The scheme aimed to strengthen intrastate transmission infrastructure for the evacuation of up to 135 gigawatt of renewable energy and the deployment of 50 gigawatt hours of battery energy storage by FI 20, 32, and 33. This highlights the growing requirement of renewable, best, and stronger T&D network to meet the demand of growing electricity to non-fossil fuel. We see a strong opportunity to leverage our execution capability, deepen our presence across these segments, and convert the growing project's demand into sustained growth. Looking ahead, we remain very positive about the opportunity across renewable energy, BAS and T&D. The sector continue to benefit from favorable policy support, rising clean energy demand, growing storage requirement, and a clean long-term push toward energy transition. In this environment, VARI Renewable Technologies is strongly positioned. We have a proven execution track record, a diversified portfolio across the energy value chain, and the capability to deliver multi-Gigawatt projects. This allows us to capture the growing demand, create lasting value for our stakeholders, and contribute meaningfully to India's vision of clean energy. Thank you once again for your continued support. We will now be happy to take your questions.

First question is from the line of Ninad Sakpuddar from InCred Capital. Please go ahead.

Hi, sir. Good afternoon. So, my first question is on the solar execution. So, last year and in the previous quarter, we had executed around 922 and around 889 megawatts of solar projects, respectively. In the current quarter, however, our execution has come down widely to around 456 megawatts. So, any particular reason for this gap down and on the same lines, how much do you expect to execute during the current financial year? Because since last four years, we have been growing at around a KG of 100% plus. So, current year, what kind of growth are we looking at?

Yeah, thanks. Executed in H1, we have done significantly, putting both quarters together. But for this current quarter, definitely we have not executed as much as project or revenue as compared to previous quarter. But during the current quarter, as I mentioned earlier, we have already won around 1.7 gigawatt of worth of orders during this quarter. And by that, my unexplained border book for the EPC plus base remains 3,300 crores by end of this quarter. So, coming back to the revenue, this project definitely is likely to be executed from now 3 to 4 quarters. So, this will come to revenue in the coming quarter plus the order book which we are likely to book during the Q3 and Q4. That will also get converted into the revenue during the financial year.

I was asking why was the execution slower? Was it due to supply chain constraint or was it due to any other reason like lack of manpower or what was the reason for such a fall in the execution?

So, just to tell that we are doing the ETC and the land and connectivity remains in the scope of the developer. So, sometimes for particular quarter or maybe for the particular order, the land and connectivity may not be ready at the developer end. So, that is one of the reasons like the orders which we have earlier booked could not cook off in the last previous quarter. However, during the current quarter, because of some land portion handover delay, this has been a case in this quarter. But this is one of the cases which we have faced during this quarter only. Otherwise, all the planning, the way we discuss with the customer and execute the process, remain in line with our expectation and the developer expectation.

Okay. So, the delay was on the customer end and not part of anything that is on our side. Okay. Okay. Okay. And so, second question on the margins of the T&D business. The T&D business has grown meaningfully in the current quarter. Of course, this is the first quarter of full consolidation. But the margins, however, if I calculate on an arbitrary basis on quarter on quarter, there has been some separation. Am I looking at it correctly? And if yes, then why is the case?

So, margin with respect to T&D business is a little lower than what we see in the EPC business in our case. So, but the margin profile with the scale of operation and efficiency and the operational excellence which will synthesize with Bari renewables and the associate power, both things put together. In the coming quarter, I think we will see some visibility or the improvement in the margin profile of the subsidiary. That is likely to come in the coming quarter.

Understood. And so, one last part that I wanted to understand whenever these EPC projects come to us, These land and connectivities already been secured by the customer, right? And after that, the EPC contract is awarded. So why these kind of delays are seen?

See, each project has a different reason and different state and different land profiles. So all cannot be categorized in the same way. However, you rightly said that when the developer awards the EPC contact, he secures the land and connectivity. In some of the larger projects, if you see, land is also basically procured by the developer. So, these are all a mixture of various things, various combinations of various aspects while executing the project.

Okay, okay. Sir, lastly, if I can squeeze one more.

I'm sorry to interrupt you, Mr. Ninad. If you have follow-up questions, please rejoin the queue.

Okay, thanks.

The next question is from the line of Disha from Sapphire Capital. Please go ahead.

Hello. Am I audible?

Yes, you are audible, ma'am.

Yes, thank you so much, sir, for this opportunity. Couple of questions. So, sir, you alluded to the fact that the execution was lower because of the land and connectivity issues. Are we also seeing any challenges in terms of grid issues or any issues because of the T&D slowdown, because of that the execution is slowing down?

And what sort of overall execution are we targeting for this entire year?

And also, sir, just in terms of your realisation also, there's been a drop. So, what sort of realisations should we build in for the entire year?

So, just to tell you the total scenario about the energy, renewable energy with respect to solar, the country has, as I mentioned earlier, the country has already installed around 300 gigawatt of renewable energy. Out of which, 171 is coming from the solar alone. And to be more specific, last year's installation was around 44 gigawatt. And by H1, we have already achieved more than 20. So, there is no slowdown as such in this particular sector. And the order book which we are carrying as of now, and the order pipeline which we are following is more than 35 gigawatts domestic and international. So, all things put together, the revenue number likely to achieve, as I said in the previous question, it is the combination of the existing order book plus the orders which we are likely to receive during the coming quarter will translate into revenue in coming quarter.

Right, but any number that you are targeting for this year for execution?

So, execution, we have already, if you're saying historically also, we have done significantly. Our revenue last year was 3,300 crores. By this consolidated, we have only achieved 1,982 crores. Putting the order book of 5,500 crore, which we carry as of now, and they're likely to be converted in the next three to four quarters. So, these are the, this will translate into revenue in the coming quarter.

Okay, as of this ASP, the revenue contribution, that has been significant. What sort of overall contribution are we looking from this T&D business for this year, and how will the growth look like going ahead?

So, as you know, there is a plot of capex is likely to be spent for the creation of transmission and distribution infrastructure. So, they also have around more than 20,000 crores worth of order pipeline, which the company is following. Last year, they have achieved around 1,995 crores, which is close to 2,000 crores they have already achieved in the previous year. And up to now also, it is in line with the budget or in line with the guidance, whatever they internally set. So, this business having a 2002 crore of order book as of Q2 will also start contributing to the revenue number in our Wari Renewable in coming quarter.

Right. And so, we've seen interest and depreciation has gone up significantly. So, what sort of run rate going ahead do we expect? Do we expect any further increases or this is the number that should stabilize going ahead?

Yeah, this interest and the depreciation number will stabilize the whole period, because this is the depreciation, etc. is charged as per the accounting standard and interest, we have taken the acquisition financing so that this will remain the constant or maybe on interest fund, we will try to reduce as much as possible in the coming quarter.

Okay, and so you mentioned this, the T&D business is having a pipeline of around 20,000 CR. What's the bid-to-win ratio we're looking at, and what sort of EBITDA margins do these projects have?

This depends upon, because when you are creating a transmission infrastructure, so many bits are coming up for the creation. So, definitely, when it is a lower or it is awarded to L1, and we'll try to grab as much as business we can do from this pipeline.

And margins?

Margin profile as of now is around 9 to 10 percent. That is going to improve it because that we should be improving in the coming quarters.

So, for this quarter, our mix has been around 60-40%, right? So, for this entire year, how should we look at the mix? Because TNT business has lower margins, right? So, if that would be a major proportion, then our margins will significantly go up.

No, this solar EPC also should be having a better portion or greater portion, because Because the order book which we are carrying as of now, 3,000 cents, and that will get pasted into the revenue in the next two quarters. So, that should also be the contributing factor for the overall revenue by the year end.

So, what sort of overall margins are you looking at?

I'm sorry to interrupt, Medh Desha. If you have follow-up questions, please rejoin the queue.

Yes, yes, thanks.

The next question is from the line of Saksham Tyagi from Desviladur Advising. Please go ahead.

Am I audible? Yes. Okay, first of all, thanks for the opportunity. So, I've got three questions, and my first question is on the margin side. I will, sir. Despite the 36.5% wire-to-wire as any growth in Q2, the profitability has weakened, with EBITDA margin declining to approximately 15.1%, and in fact, falling approximately around 30%. So, could you please help us understand the key drivers of the margin compression, and should we expect the standalone solar EPC business to sustain its historical EBITDA margin of around 19%, and does management remain confident of achieving its earlier XY27 consolidated EBITDA margin objective of approximately 15%? That would be my first question, sir.

So, the margin profile we discussed many times, actually. This solar EPC is giving better margin as compared to TNG. And the solar, the way the orders are in hand and we are likely to execute, we should be maintaining our margin. More than 15% should be maintaining our margin. So, that is what we estimate at this stage. Next, what is your next question?

Okay, so my second question is related to the acquisition of APSPL, sir. With approximately 75% of the 1225 crore APSPL acquisition funded through debt, the consolidated finance costs have increased sharply from 9.59 crore in quarter 1 to 36.83 crore in quarter 2, and the depreciation and amortization has also increased to 26.97 crore from 5.78 crore in quarter 1. So, how much of these increase in finance costs and depreciation is directly attributable to the acquisition, and by when do you expect the APSPL's earning contribution and operational synergies to adequately offset the additional financing and integration costs?

That is a very varied question, actually. The depreciation is mostly contributed on account of the acquisition, because that is coming from there. And with respect to the finance cost, finance cost is, as we acquired this by debt funding, so that will remain. But however, going forward, like the, as you rightly said, the contribution, meaningful contribution by associate power structure, that will contribute so that the all, whatever the loan, et cetera, we have taken will be taken care of.

Okay, understood, sir. And my last question is related to the order book, sir. In the previous phone call, the management indicated that the 5,300 crore order book would be executed over the next 12 to 18 months and that the company had sufficient execution capacity to scale beyond FY26 revenue of approximately 3,300 crore. So, with H1 FY27 revenue at 1982 crore, could you please update us on the execution progress so far, including the physical solar EPC execution in MWP and the value of orders executed separately by the solar EPC business and APSPL?

So, we have already said in the opening remark that we have already executed around 1.4 H1. So, the execution will be progressively increased in the coming quarter, which we mentioned that is 3,300 crore as of Q2. Out of that, we have recently also won more than 1.7 gigawatt worth of order. So, these, both the things, this existing order book plus the orders which are likely to close during Q3 and thereafter will start contributing minimally to the solar EPC, not only for the solar EPC, but for also TND also, whatever order we win during this quarter, that will also start contributing to the FI27 number. Okay, sir. Okay. Thanks, sir. Thank you.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Khushi Agarwal from JRK Stockbrookings. Please go ahead. Hello, am I audible?

Yes.

Okay.

Now we are not audible. Sorry, we are not audible now. Hello. Yeah, please, go ahead.

Yeah, going forward, how does the management see the relative growth and profitability contribution of solar EPC versus T&D?

Ma'am, please bring your mic closer. You are not audible, well.

Hello, am I audible now? Yes, ma'am.

Yes, please.

Yes, actually, given the mix that we have seen this quarter, I wanted to know, going forward, how does the management see the relative growth and profitability contribution of solar EPC versus T&D? Should investors expect solar EPC to remain the core earnings driver or will the converted business increasingly be driven by T&D?

Yes, so you rightly said the solar EPC will be the key driver for the growth of this company, because that will be further supported to the TND, that I will come later, but as you can see that we have around 25 gigawatt of order pipeline, which we are following domestically, and around 9 gigawatt of internationally. So we are actively participating or we are actively expanding our solar EPC that will include base or maybe other vertical where we have opportunity to do the EPC work. So, that will continue to be the focus area for the company. Further, that will be supported by the TND. So, TND is also a good opportunity where the infrastructure will be created for the evacuation of power to the grids, etc. So, that will be, the solar EPC further will be supported by the TND. So, that will create the good value for the company.

Okay, so we can still expect solar EPC to be the major driver?

Yes, yes.

Okay, and could you please elaborate on what are the revenue growth expectations for the standalone solar EPC business for FY27 and the execution run rate investors should expect over the next two to three quarters?

So, this, as I stated, we have the unexecuted order book of around 3.2 with the 3,000 yen quote revenue, which I have already mentioned. So, this is likely to be executed in the next three to four quarters. So, these are the, and there are likely active discussion with the customers on a bilateral basis for the domestic pipeline, which we are following. So, we are likely to receive order out of the pipeline, which we are following in the coming quarter. So, both put together, there is a revenue visibility for this company in terms of Solar, EPC, and BES, and the order book that T&D business is carrying. So, both put together is giving a long-term visibility for the company.

Okay. Okay. No doubt. Thank you.

Thank you. The next question is from the line of Makran Bosekar from Nirmithi Investment Advisors, LLP. Please go ahead.

Hi. Hello. I am Adhiv.

Yes, sir, you are Audible.

So, I just wanted to understand, sir, that you, in the first question, you mentioned that some of the orders were delayed because of some delay at the developer's end. I just wanted to understand the quantum of those orders.

No, it is difficult to actually quantify and provide the order by or detail or the call. But this came from the discussion with the customer where the land handover, maybe all these are only by discussion with the customer goes from delay in the handling of the land, etc. So, those are the factors which is contributed in this quarter. However, now with the order book which we carry and the order which we have received, so that is going to exude in the next quarter.

I just wanted to understand that since the solar ETC segment has been almost 40% degrowth in revenue terms, so if we had that, excluding those delays, if those orders had not been delayed, Should we have expected some revenue growth here or the solar EPC business seems to have plateaued a little bit?

Definitely, because we also wanted to execute as many as the orders which we are carrying as of now. So, that is always the policy or the preference of any of the industries that to execute as many as orders So, deliver as many as items whom they are either manufacturing or providing services. So, similar way, we are also doing the same exercise. So, whatever the orders which we are carrying, that will get into revenue in the next quarter. Okay, sir.

Also, I just wanted to understand the bookkeeping question. And our other expenses have seemed to, other expenses and employee benefit expenses have seemed to have grown multifold. So, it is just on account of the acquisition path or is there any other line item driving this material growth in these two expense line items?

So, this is in line with the, like, clubbing both the, or consulting both the company together, in line with our budgeted estimates. And wherever there is an opportunity to the cost-optimized reduction, that is the continuous exercise which we have carried out on a monthly basis or maybe on a daily basis we are doing that. So, this is in line with our expectations because the gross salary, etc., that is to be the part of our cost estimates only.

Okay. Thank you.

Thank you. A reminder to all participants, you can press star and run to ask questions. The next question is from the line of Soumya Raghuvanshi from Nirva Securities. Please go ahead.

Thank you so much for the opportunity. Sir, the company has won sizable BESS orders during the year. How do you see the standalone VEWS opportunity evolving and what differentiates Wari's positioning in this market?

Yes, see, just to give you the overview of BASE, because the new order which we are receiving, along with the existing order, wherever this solar plant has been installed, now we are getting a lot of inquiry about adding this BASE also. In the existing plants, plus the new orders which we are receiving, that also we are receiving with the BEST. So, this BEST has also opened up a new opportunity for the company, BEST EPC, where we can provide the EPC services for the existing plant as well as for the new orders.

Okay, sir. Okay, sir. Got it. Got it. So, my next question is on the margin and risk profile of best EPC projects. Relative to conventional solar EPC projects, particularly around the technology warranty and execution considerations.

What is the question? Base EPC and solar EPC. Margin profile, you are asking?

Yes. Yes. Yes. Margin and risk profile.

So, with respect to solar EPC or base EPC, because we need to see that how you are asking only the solar base EPC or maybe along with the solar orders which we have awarded to us. So, this depends upon the project or the site where we need to execute the best EPC. But in our case, while providing the customer the quotation or the margin, etc., we keep the certain margin as a threshold for our project. And then probably we'll try to expand it by efficiency and operational efficiency.

All right, sir. So, on a different note, how has the competitive intensity in utility scale EPC bidding evolved over the last few quarters, and are you witnessing any changes in pricing discipline across the industry?

No, we are getting more and more order or maybe order pipeline, which you are saying from the utility scale only. And this business, this is a very growing market for the utility scale. So, majority of the orders which we are carrying is of the utility scale. Some of them are maybe for C&I, but majority is from the utility scale.

Okay, sir. Thank you so much, sir. That's it for my say.

Thank you. The next question is from the line of C.R. Aguanchi from SMSB Capital. Please go ahead. Hello. I'm audible? Ma'am, your voice is a bit crackling.

I'm audible now.

No, ma'am, you're not audible. Your voice is breaking. Can you use your handset? Yeah, just a second. Yeah, sure. Yeah. Is my voice now better? Your voice is a little better now. Yeah, sure.

Please go ahead. Yeah. So, sir, my question was, with APSPL now consolidated, how should investors think about the revenue mix between the Solar EPCS and TND over the next two, three years? And, like, what proportion of future growth do you expect to be driven by the TND business?

So, this business, I would say that both the business are expanding and the requirement of the, for the solar power, you need to have solar EPC, and for the, for the evacuation of power, you need to have TND. That is also for the solar as well as other form of energy. So, both the sectors where we are placed have been continued seeing the expansion. A lot of people are putting money or developers are doing this project, maybe for the utility scale project or maybe for the captive requirement. So, what we are seeing the next, at least two to three years, there is a good amount of progress which is likely to happen, and the installation is likely to be in a good form, like we did 44 gigawatt last year, and H1 also, we have to see 20 gigawatt. So, both the sector, the growth is likely to be there in the next two to three years.

Got it. And sir, as the transmission projects scale up within the portfolio, how should the investors think about the impact on the consolidated margins, like given the structurally different profitability profile of TAMD versus Solari PC?

So, it is difficult to give any quarterly updates or maybe what is the likely for the next quarter or maybe thereafter because it depends. These are two different products or maybe the solar is different than the TND because it has a revenue cycle and the timeline where the project is to be completed. So, by quarterly or maybe by yearly, it is difficult to give any kind of number that how much is from the TND or how much is from the solar EPC. But definitely, as I said earlier, both the sectors or both the verticals are going to grow in the near future or maybe a few years from now.

Thank you, sir. Got it. And, sir, if you could just elaborate on opportunities emerging from the offering, from offering integrated solutions across generation, storage, and power evacuation infra, and, like, whether this is helping improve customer engagement and project events?

Yes, definitely, because whenever we are discussing with the customer, now there is a lot of inquiry or a lot of projects are offered to us along with the base also. So, when you are doing only solar project now, maybe the regulatory requirement or the compulsion or maybe the grid stability, you need to have the base also. So, it is a good opportunity for the Bari Renewable to get orders from the solar plus base put together. So, and if you see that our O&M also started contributing because we have a 1.5 gigawatt of O&M portfolio. So, the project which we are completing have already in-built revenue, as you say, O&M contracts also for the next few years. So, as and when we are completing the project, we have a opportunity to get O&M of that.

Okay, sir. Got it. Got it. Thank you so much, sir. That's all from my side. All the best for future.

Thank you. You can press star and run to ask more questions. The next question is from the line of Johan Khinvasara from Asian Broking. Please go ahead. Mr. Johan, you are not audible. As there is no response from the participant line, we move on to the next question. The next question is from the line of Sohani Singh from ROS Capital. Please go ahead.

Hi, sir. Good afternoon. So, I just had a couple of questions. So, the margin sheet has expanded significantly following the EPSPL acquisition and also the growth in business here. So, how should investors think about working capital requirements and cash flow conversion going forward?

See, as far as this WARI renewables EPC business is there, there is a working capital requirement in terms of non-fund-based limits. So, that has been made through various banks, etc. And this associate power is also have the similar kind of EPC business, where there are more and more working capital limits are being used. That is, yes.

Okay, sir. So, if you could discuss the key drivers behind the movement for curing and afraid release of men. Hello, ma'am.

You are not audible. Can you please repeat your question?

Can you hear me? Hello?

Yes, ma'am. We can hear you. Yes.

So, it would be great if you could discuss the key drivers behind the moment in operating cash flows during H1FY27 and whether any of these were transitional in nature.

Key drivers were transitional.

So, the moment is like basically is the operational cash flow which we have seen. Apart from that, there is an acquisition financing and that we have done through the banks. So, that is the moment of the cash flow during the H1.

Okay, so that helps. So, as the project sizes continue to increase, do you foresee any constraints around bank guarantees and performance securities or non-fund base limits, which could influence future bidding capacities?

No, no. As of now, we have not seen this kind of thing. We are not facing any kind of constraints with respect to the banks. We have limits available for us to go for the new projects or maybe for the bidding to the new projects. All these are available with us.

Okay, for that time. Thank you so much.

Thank you. The next question is from the line of Khushi Agarwal from J.K.R.K. Stop Broking. Please go ahead.

Are you an audible, sir?

Yes, your audible.

Okay, so one question that I have is, what is the current customer concentration in the soda EPC business, and how much of the order book is attributable to receipt customers?

The majority of the orders are like based on the bilateral discussion. Maybe we had worked with one of the groups, so other group companies, maybe of the same, like they are also awarding the contract. So, based on the quality, the way we deliver the project and complete them on timely. So, these are the contributing factors to get repeat orders from the customer.

Ma'am, you are not audible.

Actually, I cannot hear the answer about the repeat customer.

Ma'am, there is a lot of disturbance from your surroundings.

I cannot hear the answer about the repeat customer.

Procability. So, repeat customer, as I said, we are getting orders from the repeat customer because there are groups who are associated with us from the long time. So, there are a lot of orders which are coming from the repeat customer.

That works, okay. And my next question would be that we have observed relatively muted fresh order inflows in the solar EPC business. So, is that primarily driven by heightened competitive intensity and a conscious decision to prioritize margin discipline over order book?

No, we have booked around 1.7 gigawatt worth of the customers. Some of them are the existing customers, but we have new customers also, ma'am, during this call.

Okay, okay. Thank you. Thank you, sir.

Thank you. The next question is from the line of Johan Kinva, sir, from Asian Broking. Please go ahead.

Am I audible?

Yes, sir.

So, I basically want to understand that our debt levels have increased quite a lot. So, do we plan on staying leveraged in the future at these same levels, or do we have a priority to pay back the debt and come back to the earlier levels?

No, what we plan is like, as of now, we have taken the financing loan, But definitely with the group initiative or the way we progress in the upcoming quarter, we'll see how we can reduce the debt which we have taken.

Okay, Sanjus. Debt was majorly focused just for the acquisition, not for any other business operations within Wari.

Yes, you are right to say.

Okay, sir. Thank you so much.

Thank you. Due to time constraint, that was the last question for today. I now hand the conference over to Mr. Prathamish Parap for closing comments.

Thank you. I would like to thank the management for taking the time out for this conference call today and also thanks to all the participants for attending. If you have any queries, feel free to contact us. We are NUSG Intime India Private Limited, Investor Relations Advisor for VARI Renewable Technologies Limited. Thank you.

Thank you, sir. On behalf of Vare Renewable Technologies Ltd., that concludes this conference. Thank you for joining us, and you may now disconnect your lines.