Websol Energy System Limited (WEBELSOLAR) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to WebSOL Energy System Ltd's Q3 and 9-month FY26 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 Ms. Anvita Raghuram from Churchgate IR. Thank you, and over to you, Ms. Anvita. Thank you, Michelle.

Good evening, everyone, and a very warm welcome to Websoil Energy System Limited's Earnings Concord for Q3 and 9-month FY2026. We appreciate your time this Friday afternoon, and thank you for joining us. Today, we have with us the Senior Management Team of Websoil Energy System, represented by Mr. Sohanlal Agarwal, Managing Director, Mrs. Vasanthi Sriram, Chief Technical Officer, Ms. Sanjana Khaitan, Executive Director, and Mr. Amrit Dagar, Chief Financial Officer. We will start the call with opening remarks from Mr. Agarwar, who will provide an overview of the quarterly performance and key developments during the period. We will then open the floor for a question and answer session. Please note the earnings presentation and press release for the quarterly results have been uploaded on the stock exchange and the website and can be downloaded.

With now, I will now request Mr. Agarwar to open this conference call. Over to you, sir.

Good afternoon, everyone, and thank you for joining us on Website Energy Systems Q3FY26, Erving's call. It's a privilege to address all of you today and share an overview of the company's operational and financial performance and achievement during the quarter. For Q3FY26, we deliver a strong shake of results with revenue from operations of Rs. 261 crores reflecting a 77.2% year-on-year increase. EBITDA for the quarter was 106 crores of rupees, within a margin of 40.8%, and PAT was Rs. 65 crores, with a margin of 24.8%. The growth was primarily given by the commission of cell line 2, which contributed to higher capacity utilization and overall production output. For 9 months F126, we achieved a revenue from operations of 648 crore, reflecting a 61% year-on-year increase. EBITDA for the first nine months FY26 was at 282 crores with a margin of 43.6% and PAT was Rs. 179 crores representing a margin of 27.3%. As of 31 December, 2025, net debt stood at 89 crores. Vajnaevita ratio improved to 0.47 from 0.60 in FY25. I am also pleased to mention, gentlemen, that Crystal Rating has assigned Websolve Energy System a triple B-plus stable rating for our cash credit and terminal facilities. This rating reflects our ability to manage debt effectively while executing our growth initiatives as well. As on 31st December 2025, our order book stood at approximately 1,150 crore, reflecting a balanced mix across both models and sales. Models accounted for about 57% of the order book, while sales contributed the remaining 43%, providing visibility across our manufacturing segments. From an operational perspective, The quarter reflected discipline, execution across our manufacturing operations. Phase 1 of our cell manufacturing operations continued to operate at a high utilization, with cell line 1 achieving 97% utilization. Cell line 2 commissioned in September 2025, reached utilization level of 64% during its ramp-up phase. Reflecting steady stabilization within a short period of commissioning. On the model side, this will be capacity stabilization improved to 64% in Q3 FY26. The commissioning of the second 600 MW monopark cell line reflects the company's ability to execute projects within planned timeline and funding frameworks. The line was commissioned with a record-breaking time of less than one year and was fully funded through internal approvals. This line has already begun delivering high-efficiency sales with peak sale efficiency recorded at 23.6% within only three months of commissioning. Building on our education across phase 1 and phase 2. We remain committed to begin an integrated solar cell and model manufacturing. Our focus is on scaling capacities in a sustainable and time-bound manner, supported by our long-standing engagement with solar technology and a deep understanding of the manufacturing process. In line with this strategy, we continue to progress on our next phase of extension during the quarter. The company received approval for its proposed 4 gigawatt integrated solar cell and model manufacturing facility at Andhra Pradesh. Land allotment for the project has been completed, and a tailor-made incentive package including investment-linked subsidies has been approved by the Andhra Pradesh Economic Development Board, which is expected to support overall present economies. Alongside these expansion plans, the company's fundamentals remain supportive of its growth strategy, enabling future investments to be funded through a combination of internal accruals and debt. In parallel, a dedicated team has been constituted under the leadership of Ms. Vashanti Sriram, Chief Technical Officer, to support upcoming phase of execution. We continue to progress on our backward integration, strategy to stand in control across the solar manufacturing value chain. During the quarter, we entered into a memorandum of understanding with Linton, a global provider of photovoltaic ingot and wafer equipment technology, to explore the feasibility of establishing local manufacturing of PV ingots and wafers in India. At present, the focus is on technical evaluation, research and development, and finalizing timeline and project details in collaboration will enter. This initiative forms part of the company's broader strategy to deepen integration across the value chain. The solar sector continues to operate within a supportive policy environment in India with government initiatives aimed at strengthening both demand and manufacturing. On the demand side, policies supporting renewable energy adoption across utility-scale, rooftop, and emerging applications continue to drive solar installations. At the same time, measures such as the PLI scheme and the approved list of models and manufacturing framework are encouraging manufacturing capacity creation and deeper localization across the solar region. In Stumbling Implement, we are excited about the progress we have made this quarter and remain committed to executing on our growth strategy. As we continue to expand our manufacturing footprint, strengthen our supply chain, and integrate advanced technology, we are confident that web solar energy system will be able to capitalize on the growing opportunity in India's solar energy market. Thank you very much.

Sir, should we open the floor for the Q&A session?

Yes, please.

Thank you very much, ma'am. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions, may please press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, remember, star and two. Participants are requested to use only hands-up while asking a question. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. We will wait for a moment while the question queue assembles. The first question is from the line of Aman Soni from Invest Analytics Advisory, LLB. Please go ahead.

Hello, I'm all good.

Yes, sir. Please proceed.

Thanks for the opportunity. I have two questions. One is on the margins front. This quarter, obviously, we are reporting the consistently good margins, but looking at the industry landscape, where the sales capacity is rising as well as the module capacity, and we are also speaking about the further KPEX. So, how long do we see these margins to be sustainable going ahead, sir?

Yeah, hi. So, thank you so much for your question. So, of course, you know, we have reported margins of 40% flux in the last few quarters, and given all the capacities which have been announced, we do foresee that there would be some dip in the margins to more sustainable levels in time to come. However, given all the capacities that have been announced, we feel that it would take some time for such capacities to come on ground. And even when such capacities are installed, as per our experience, given that we've been doing this for 30 years, we feel ramp up and operating the line is not very, very easy. And hence, though install capacities may increase in the announced time frame, which also we see may be a little difficult in terms of operating from a utilization and efficiency perspective, we feel it would take time for those capacities to. So, definitely, two to three years, we foresee that margins should remain at the level that they are.

Sorry, what time frame did you mention for the sustainability of the margins?

So we see definitely there may be some sort of maybe 3-4% variation, but otherwise the level we are at right now, we should continue at that level. Also, I would like to point out that given our order book has essentially been just sales until recently with addition of a module as part of our product portfolio, the blended margins would look a little lower than the margins we reported last week.

Thank you. So, for this particular year and Forever 27, what kind of top line do we see and what kind of absolute bottom line? Because I'm asking for the absolute bottom line because people are not, like, giving any guidance in terms of certainty of the margins that I understand, but I think some base level of margins we should be having in the mind. So, if you can give some color on like what kind of absolute path and what kind of absolute top line are we projecting based on our capacity.

Yeah, so we do not want to provide any guidance or comments on forward-looking projections. However, the ongoing capacity ramp-up improved utilization of our module lines and the healthy demand environment would kind of indicate a positive outlook for the growth opportunity. And as I suggested that, you know, given that the capacities coming up would take longer, then probably... Announced, I would believe that the margins would remain at the current levels for some time.

And secondly, on the supply chain front, for salmon fetching, we need silver paste and a little bit of silver also, right? And looking at the prices of the silver, how are you managing this commodity effect, the commodity inflation that we are facing right now? Are we able to 100% pass it on to the end customer or how is it going to be?

Correct. So silver prices have definitely increased significantly during the current financial year. And to mitigate this input cost volatility, we have secured advance procurement of the silver requirement, providing near-term cost visibility. So, we are also, our technical team is working on a silver consumption reduction project, wherein we have already approximately reduced 25% of the silver that we use for our production process through process and technology optimization initiatives. So, we are definitely working on bringing these consumption levels down further. Welcome to the call.

Mr. Soti, I'm sorry to interrupt you, sir. Just last question. So, again, like on the margins, just to get the understanding better, like it should not be like we are doing a top line of 200, maybe down the lines of 2 to 3 years. We are doing the top line of 2,000 CR. And do you feel like on 2,000 CR, the situation will be like that, the bottom line still be more or less marginally increased? It will be like that only, or maybe we will be still able to manage, like, for example, top line, we may go by 30%, and still we will manage the bottom line to grow, maybe not by 30%, but by 20% at least. Will it happen like that, or what is in your mind, like, in terms of your experience in this industry? Because we are seeing a lot of players entering into the industry, so even if it should not be like a realization suddenly fell down, and then profitability gets significantly impacted over this. So, how do you look at this question?

So, with this side, as we have already told, that we do not see any significant margin reductions on account that we don't believe that the capacity ramp-up will be happening so soon, as we believe that it takes time to install the capacity and to ramp up the production. So we don't foresee any significant difference in the margins. Some operation likely because the industry is maturing, but we don't foresee a very significant difference in the margins. And we are confident of the levels that we are maintaining. We will be able to maintain one of the highest industry margins that we are confident. But to give an exact margin percentage is very difficult to predict.

Understood, 100%. That's it from my side, sir, and all the best for the future.

Yeah, thank you. Thank you. The next question is from the line of Amit Mishra, an individual investor. Please go ahead.

Good afternoon, everyone. Thank you for giving me the opportunity to put up my questions. Firstly, I would like to, you know, this is our first meeting on call, which is very good to start to have a direct dialogue between management and investor fraternity. It's very much appreciated. So, thanks for that. And also, I would like to congratulate Mr. SL Agarwal and the whole team for their amazing work for the last two years to turn around the company. It has given very strong foundation for, you know, our further Capex in Andhra Pradesh, which we are starting now. So, very happy on that front. I will start my questions now. I have three questions in total. So, first question is related to APEX, CAPEX for Al-Andhra Pradesh project. I heard that land allotment formalities have been completed now. So, going forward, we want to understand about Phase 3 funding, which is around 1,700 crores. From, so. What would be the source of this funding, internal equals debt, equity? Can you give some breakdown so that we can understand how would it be sourced?

Correct. So, basically, on the funding part, as you said, we are projecting a cost of around 1,600 to 1,700 crores for phase 3, which is the cost for an integrated 2 gigawatts top-con cell and module manufacturing facility. And as of now, we are hoping for a 70-50 debt equity mix for this project, where in the debt part, we are already in touch with financial institutions and banks for around 1,100 to 1,200 odd crores. In fact, our discussions are at an advanced stage, and we are hoping that we can close on the financial closure by around March, April. In order to ensure that our timelines for this project do not move. With respect to the equity part, it should be around 500 crores. I think we are very, very comfortable from a margin perspective that we would have those cash flows to pump this money to our internal accruals. So we are not planning to raise any money at the moment from the market. So there won't be anything. at the promoter level, so that would result in some sort of You can buy it on the... and welcome to the call. You shouldn't go in.

The Loan Facilities Bildung. Thank you. So I wanted to hear.

Your first question with respect to the loan agents of Merida, yeah, we have.

The main question is on the... The prices were going down in that quarter from, let's say, September to December. We saw a decline in solar prices, solar cell prices. Now, are we seeing reversal because the prices have been coming up for some time due to metal upsurge? And also, China is lifting this 9% rebate on their exports with effect from 1st April. Are we witnessing that clients are actively approaching you to take off earlier than expected deliveries, which are planned later?

Yeah, correct. We are absolutely right. Last quarter, there was some downward push on the price, and I think it was like an industry phenomenon wherein, you know, there was some sort of inventory filing up which took place because of that. However, we feel it was also an account of some temporary liquidity constraints which were experienced at the customer end.

Leadership. Wasanthi Ma'am is there with a very brilliant team who is doing a very brilliant job. But we would still like to hear from management. If you can develop on, you know, what kind of second level management or leadership for AP project, because the construction timelines are five, six months, and I know it takes, you know, good project manager, good, you know, to see us through to stick with the time. So if you can develop on the leadership.

Yeah, sir, Mr. Averwan will just address this.

So, Amit Ji, while I continue to remain fully active and engaged in the business, as you know, driven by my long-standing association with the company and

commitment to the industry, a long number of years, sir, in the company.

And commitment to the industry over the past three decades. I recognize that succession planning is definitely a critical pillar of a long-term organization's stability and governance. So the company is actively working towards further strengthening professional management, its structures to ensure seamless leadership continuity. I'd also like to highlight that this is Vasanthi Sriram. Who is last 30 years with the organization in her capacity as CTO, is leading the company's technology strategy and continues to anchor all technology-led initiatives, ensuring sustained competitiveness and innovation on the technological front. Mr. Santana Khaitan, who has been associated with the company for the past three years, And is actively involved in managing key business and operational functions to the best satisfaction of mind, is well positioned to take on higher leadership responsibilities in time to come, and will be supported by a strong professional management team. I would like to reassure shareholders that the succession process is being implemented in a structured and serious manner and will not create any disruption to the accomplished growth trajectory on the strategic direction. So, Sanjay is quite young now, so she can take for a longer time, not to worry about it.

Sir, no sir, sir, we want you to continue in the company for as long as you want, of course, and as long as you want.

I have already informed all my team to give me another 50 years to continue here.

Sir, on the AP project, the team, can you elaborate a little bit, because it's a large CapEx, okay, so, We, investors, you just want to see how companies are being prepared to take that challenge. It's a new place. It's out of our comfort zone also.

WebSol is always, we have been taking the challenges like this, so not to worry about it. Because if you see the second phase line also, we have done it with our own cash flow. We have not taken any debt. At the same time, we have been repaying the debt to Ireda, and I think the cash flow is sufficiently there, and with our good performance and payback in timely to Ireda, they are quite confident that we can take up the further load of debt. So I do not feel that there should be a problem. Let the time come to see if any issue comes in and you will resolve it in a proper manner.

Yeah, I'm in the team, I'm in the team. So, she can just inform a little bit about the status of the project because we have been actively creating a separate team for this under her leadership. So, she can just share more details. Good afternoon, everyone.

So, see, I mean, we have an experienced team already in-house, and so what we are doing is we are training another set of people under them so that, you know, they can take care of the present line, and then the senior team members can operate or handle the project, the new project in Andhra Pradesh. So, apart from that, we will be training, I mean, we will be inducting more people, technical people, you know, just before, sufficiently before, maybe, you know, a month or two before the project actually kick starts there. And we will be training them in-house so that it is, you know, in our present facility so they are, you know, well trained and understood. Apart from that, we are talking to our technology providers also that we can send a small team of people. The final phase of SMB, so that also we are already in the.

Thank you.

Sorry to interrupt you sir.

Sorry, I will get back.

Yeah, I will get back.

Thank you so much. Sorry. Thank you.

A reminder to all the participants, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Shashank Chah from SB Capital. Please go ahead.

Sam, can you give your distribution between DCR and non-DCR?

Yeah, so basically for cell right now, of course, like a 1.2 gigawatt, we are making manufacturing BCR cells. So out of that 600, which is one line, we are using completely captive into our module production and producing BCR modules. So we do not have any non-BCR exposure at the moment.

Non-DCR is normally the people import sales from China, and then they fabricate the panels in India, and that is non-DCR panels. So non-DCR is a product which is being brought from outside the country, and whatever is produced in India is a DCR.

Okay, and one more thing, it is regarding your EBITDA margin. So EBITDA margin, like in last quarter, was 45%. Here it is 40%. And so my question here is that, like all other companies are also developing cell plants, right? So is your 40% margin sustainable? Like one of the top here, MV, MV is having margin of 35%. So 40-45% looks very high. So, first thing is, what is the reason behind this high margin and is it sustainable, and if not, can you give some, like, sustainable margin over a longer period of time?

So, regarding your first question, Shashank, the margin depends on how much you are blending between cell and module. So, if you notice that we are uniquely positioned in the market that our cell capacity is 1.2 gigawatt and our module capacity is only 550 megawatt. So, in case of the, I would like to comment on other players, but most of the players in the The industries are having the higher model capacity even compared to sales. So that is the reason behind getting the highest margin in the industry. And regarding the margin sustainability, we would like to reassure that the cell line is a high technology business. It takes time to install the plant and it takes time to install the plant. Also, it also takes time to ramp up the plant. It generally takes 12 hours to ramp up the electricity.

Sorry to interrupt. My question here is that, like, see, sooner or later, all the companies, most of the companies will have sales and modules in the similar lines. And those having higher capacity may be either using it for export or buying some non-Chinese sales. So my question is that your competition is going to increase in DCR market when all other companies will have sales in their in-house. Okay. So will you be able to sustain this margin at that time? And you will also have similar line-up, like sooner or later you will have around 5 gigawatt of module and sales. So at that time, will you be able to sustain this margin?

So we have already checked out when we are discussing that the long-term sustainability of the margin, we are expecting some moderation in the margin, but we do not expect any sharp decrease in the margin, what are presenting at present level. Okay, so there might be some moderations in the margin. We are not denying the fact because as the market is maturing in the future. But the margins in the same time also depend on the many factors. It's how you are operating your line, how you are managing your expenses, how efficiency, how efficient we are in the net of the cell efficiency. So the margin also varies on the many factors.

Got it. Got it. Sir, one last question. It is regarding the order book. So, your current order book is giving visibility of one year. So, any bid pipeline going on? So, how is the order book pipeline looking like at the current moment?

Yeah, so we already disclosed our order book as of 31st December 2025, which stands at approximately 1,150 crores. So, of course, this comprises of whatever firm purchase orders we have received until now. We do also have like certain repeat orders which we haven't included in this and there are certain negotiations which are ongoing in parallel and once we are able to close on the same, we will be able to disclose. So definitely with the ramp up of our new cell line and with increasing utilization of modules, we will have some headroom to be able to take on more orders.

Okay, one last, it is regarding, do you have G12R still? No. G12R? Achah.

Yeah.

It's not there.

No, at the, sorry, at the moment we don't have, but then we will be, uh, ramping one of the lines to G12R by the end of, uh, maybe middle of next year.

So, your nameplate capacity and effective capacity will be different right now. So, when you say your nameplate.

Whatever we have mentioned, that is our present capacity, but once we convert to D12R, yes, the capacity will increase.

See, the size what you are mentioning, gentlemen, that... Mono, there are different projects that the government are already running. One is the pump, the other is a rooftop, the other is a solar powered park. So, so far the pump is needed. There is a fixed capacity of the model and you can't increase much because they cannot use it. If you make a 600 megawatt, a 600 watt or a 700 watt, then normally they do not go in the pump. For the rooftop, now people are definitely looking for a higher output. One more thing important that, as you said, there are the margin. My observation is that if you look at the recent push by the government of India, that a lot of the projects the government has announced are still not fulfilled completely because there is a gap of demand and supply in the DCR market, And they have requested all the state governments to kindly look into it and see that these projects are completed because still the capacity is not there to complete those products in the very fast and quick manner because the rooftop is still there. A lot of outstanding projects are there. Similarly, the pumping is also there. So we need not to, definitely the margins are so high at the moment, it cannot be maintained at that level. I do agree with you. Logically, it should be levelized because the price of, I say, the wafer starts increasing. But another thing you have to see, why it should come down, because you have to also observe that to what extent the consumer can accept and absorb the prices economically for their project. That's also very, very important to maintain the supply chain and the manufacturing industry. So, I don't think that there should be a big downfall in the margin. It might take some correction in the time to come when the capacity increases, automatically it comes like that. So, there is nothing to be panicky in that area, in my opinion. Okay, okay, got it.

Sir, let me tell you, there is a 1.2 gigawatt cell nameplate. How much is the actual cell produced in a company? I have seen in some companies that they can produce 90% of it actually. Nameplate capacity and effective capacity. How much is it in your case?

Yeah, so far, we've already displayed these numbers in our, in this presentation, that the first line we are operating at 97% of the effective utilization level. So, the reason the effective utilization is different from the latest capacity is that some machines have a different throughput and given certain preventive maintenance activities, it is not possible to achieve the labeled capacity level.

Okay, okay, ma'am. Thank you for answering everything. Thank you. Thanks a lot. All the best.

Thank you. The next question is from the line of Somnath Saha from BNK Securities. Please go ahead.

Thank you for the question. Can you give some idea of the current relation trade for this year and non-design for both sale and module? And if I talk about the order book of 1150 crore. Can you give us an idea of how much there is export for the expansion in the export market?

Yes, can you please repeat your question until we lost your voice in between?

Mrs. Saha, please use your handset to ask questions.

Can I audible?

Yes, yeah, yeah, this is so much better, yeah.

Yeah, so I was asking, can you give some idea of the current relation for sale and modules, both in domestic market and as well as the export scope you have? And also, can you give some breakup of the current order book of 1150 crore? How much of that you have export potential on that?

Exporo auto-issure is not possible at the moment. We know it very well. Because the main market for export was the USA. And US has already, you know it, a lot of issues are still going on because the tariff has been announced by them. So export market is very, very minimal. But the rest of the market is in India, and I think they can give some clarifications.

Yeah, so as Sir said that we do not have any export exposure at the moment, I mean the DCR market seems fairly lucrative at this point wherein prices are at a good level, margins are at a good level, and given that we have additional cells and modules, we don't really need to worry about the non-DCR space. So, our focus is only on the DCR segment. So, we are not really concentrating on any export at the moment, and the order book we disclosed is all DCR cells in module order. There is no export in that.

Okay, understood. Can you give some idea of the ended relation for the quarter for both trail and module?

So, the current realizing in TEL is roughly 14 cents, 14 cents per watt week, and in the case of module, it's 20.5 to 23 cents per watt week.

Okay, thanks.

The next question is from the line of Sushil C. Choksi from Indus Equity Advisors. Go ahead.

Congratulations, Ji. Suwan Lal Ji, Sanjida and Vasanthi being on call and team and management of WebSoul for a super performance and very good implementation of Phase 2. Sir, my first question is everybody is asking on margin. Is it possible to indicate that our cell 2 line is working at a much higher efficiency like the cell number 1 of 97%? As of today, I am saying just an indicative on January. I am not saying anything more.

Yeah, we are almost close to operating at the same level of utilization. So now it is like close to 90% utilization. I mean, I'm just talking about today's scenario. So, we have almost achieved 90 percent utilization. As far as efficiency, cell efficiency is concerned, we are at a very top level of 23.4 percent. So, that is how we are working.

Thank you, Vasanthi, ma'am. Another question on that basis, you know, everybody is asking for cell efficiency, pricing, raw material margins and everything. Can you indicate, I am not hurting any other competitor company, what is the science that our cell manufacturing efficiency is superior to industry or our experience of 30 years is working in our interest? Can you elaborate a bit on that?

Of course, our experience of 30 years is definitely helping us to be, you know, at the top level, among the top level of the industry players in India. We are almost matching with the Chinese players. So, apart from that, we have other, I mean, we have recruited some very good PhDs who have a lot of knowledge and experience in this perk and top-com. So, that's also helping us.

So, basically, you are saying that we do not have breakage or deficiency in the manufacturing process, which gives us higher productivity number. If I am producing, say, 1 million cells on a particular time, that 1 million will have lesser breakage and a higher output per cell, what are we producing? Am I right to conclude that?

So, it's, see, breakage and rejections is one part, but then you should be able to utilize the equipment. So, whenever there is breakdown, you have to be very quick in, you know, bringing the machine up and running. And we should be able to tune the process in such a way that we are able to produce it for every second that we are there, that the, you know, the clock is ticking. So, these are certain, I mean, Yeah, the caliber that our people are having, they have been trained for that. So, it's not just the breakage and rejection. That is also one of the lowest that we are having now. But it's not just the breakage and rejection which is low, it's also that we are able to get the machine to work at its full capacity.

Sanjana, you replied on silver consumption and some replacement and technology updation. Do I assume that our silver content in the cell is in a single digit and not double digit like others?

So, I mean, for the silver part of it, of course, we brought down our consumption successively. So, I do not know what the consumption is for the other companies. But in our case, from the level we started at, we've already gone down 25% in terms of the consumption. So, from that perspective, we are quite confident that we will also be able to bring it down more.

So, I would think that we are working towards bringing it further down, you know, so another 10% sales in our target.

Yeah, so the consumption part is what we are very actively working on to kind of eliminate the possibility of any increase in price affecting us very drastically.

Agarwal Ji, I have a question for you. You have 32, 33 years of rich experience from inception of WebSoul. Now, everybody talks about only solar module for rooftop and solar path and otherwise. Nobody has assumed that... Our Prime Minister has a vision to make hydrogen as a hub from India for 5 million tons and 10 million tons. I understand for every million tons, you need 20 gigawatts of solar power.

Yes, you are correct.

Sir, let me just complete the question. Sir, one minute. Second thing is, Europe, if I recall well, implemented solar between 1995 to 2008, 2010, when China was not existing in solar play. The entire European replacement market is going to open. India, EU FTA has been signed. Besides this, whether it's a government scheme of Kusum, rooftop solar, everybody is deficient, government subsidy in last quarter was not paid, so the solar module, even in your inventory, is reflecting that you have not delivered. Now, European demand may be one year later when our capacity in Andhra is ready. Hydrogen may be 28. Now, keeping all this... Vision in mind. Second thing is, everybody focused on China prices on a daily basis, looking at MNRE website on your DCR production. Mr. Arawal Jihap, you can reply, you understood my question.

So, I think, Sushundi, what you have mentioned about the FTA and Europe relationship and this area, because I also predict that Europe will be a big market in coming time, because the installations which took in the year, say, 2004, 5, 6. Those plants can be replaced because they already have the land, they already have the structure, they already have the cable. So all the infrastructures are really there. They have to just throw away the old modules and then to put a new one. But the market will come now because the FTI has recently been signed. So we have to just see that how it works out. Because the Chinese have been dumping the European market, but now China has realized that they were dumping at a loss, because they were working on a price which was not economical, and they have seen that if it's not economical, and if they don't make profit, then they don't provide the money to reinvest into their projects. So I think in short time, it should happen that with the increased capacity in India also, the prices will be economical, where we will be able to fight back with the Chinese prices, and we can try to get the European market. The US market, we cannot predict so long. Mr. Trump is there, we don't know.

Thank you, sir, for answering that question. We'll move on to the next question, which is from the line of Ankush Agrawal from Surge Capital. Please go ahead.

Yeah, hello. Thank you for taking my question. So the first question is, if I look at our capacity utilization, both for, say, the earlier cell line and the current new cell line, and even the module line versus the Q1, which was the last week for us, it is like 60-70% higher. But still our revenues have only grown by 20% versus Q1 of FY26. So I'm trying to understand what's happening over here. Has the realization reduced substantially over the last six months?

Yeah, so basically, of course, you, for the two cell lines that we have, both have, like, increased in terms of utilization and module, in fact, has doubled in terms of utilization. But as you mentioned, somehow last quarter, because of, you know, liquidity has changed in the end, you know, have been. Even saying there has been some deferment of the offtake. So, of course, we are still sitting on those orders. We still have those orders with us. But the offtake has been postponed. So, because of that, that has not translated into the revenue figure. But, of course, our utilizations have been high. So, we are hoping that this quarter would help us normalize that situation.

Okay, like I think post Q2 results, the management sort of on the TV interview sort of quoted a number of 5-600 crores of revenue potential with the new sell line. So are we still, do we still believe that we can do that 5-600 crores of revenues in the coming quarter?

So, you know, we would not want to give any guidance on the revenue part of it. I mean, as you would appreciate, it's a very dynamic industry, wherein the final sales price is being driven by a lot of factors. So, it is difficult to comment on any particular number, but at a management level, our focus is to ensure that we are utilizing all our three lines to the maximum capacity possible. And I think we have reported substantial progress on this fund. And we are hoping that next quarter, rather current quarter, we'll be able to ramp up line 2 to 90% up level. That's our target. And module also will be pushed to 75%. So this is the target we have set for ourselves for this quarter. And we are hoping that will translate to healthy revenues as well.

Okay. Last question, the gross margins. So last quarter, we were doing like high 60s sort of gross margins that has reduced considerably this quarter. You sort of indicated that part of it is also because the improving mix of mortgages in the gross margins are lower. But is that is what entirely explains the reduction in gross margins or there is something?

So, one, of course, as we mentioned earlier on the call, there has been some softening of cell and module prices, and because of which, you know, the margins, I mean, it has reflected in the margins. And second is, you know, initially, we were just manufacturing and selling cells, but in the current quarter, sorry, in the previous quarter, Q3, School has really ramped up and we've increased the speed. Omar Jinvi says, The product could put you, I would say.

Next question is from the line of Rudranj Kalra from MB Investments. Please go ahead.

Hi, good evening. My question is, why have the operating profit margins been subdued, and what are the future impacts of the subdued module prices in the upcoming quarters?

Right. So, as I mentioned, the margin has dipped a bit, A, because of the softening of the cell and module prices, and B, because, you know, the product portfolio has now changed, wherein module is also a part of the product mix. And as I think most of us know that the margins in case of module is different from the margins in case of cell, wherein it's much lower. So, because of that, that has impacted at a gross margin level. So, because of which, you know, there is some sort of reduction in the gross margin. And, sorry, what was your second question, if you could please repeat?

Yeah, what is going to be the future impact of the, we've seen pressure on the module prices, and you have just mentioned that you have moved towards more of cell manufacturing to more of module manufacturing, finished module. So, what are, you know, what is going to be the impact of these, the pricing pressure that we've seen in the module prices in the upcoming quarters?

Oh, yeah. So, I mean, we haven't moved. to module in the sense that we are still operating 600 cells which we are selling in the market. 600 we are converting into our own modules and selling as BCR modules. With respect to your question on pricing, I mean, what our study tells us, I mean, the price is a bit dynamic, definitely did come down last quarter because of which we've seen the impact at the margin level also. But already we are seeing an increase in price in the current quarter. So, I mean, you know, we don't foresee very major variations. Maybe the margins in the short term should sort of revolve around the current level building.

All right. Thank you so much. That answers my question.

Yeah, sure. Thank you. The next question is from the line of Rahul Hemani from Hemani Financial Services. Please go ahead.

Hello. Hello, everyone. So, thank you for this opportunity. I think my answer has been questioned, but again, I'll frame it in a different manner. Most of the sales that we are manufacturing is into the DCR market. Now, the sales prices have actually not fallen is what I understand in the DCR market. And if that is the scenario, then why have the Q3 figures for the revenue been so low? So that is question number one. And question number two is that starting June 2026, ALMN for sell is also coming. So what will be the impact on the sell prices?

Correct. So, for the first question, I mean, for the last quarter, which is Q3, prices did dip a bit. Now, the prices have started rising again, but last quarter, we did keep opening of the sell and module prices. So, that has attributed to a little drop in margin. And with respect to your second question on the ALMM part, so I mean, of course, our first line is already covered under ALMM, and our second line will also receive the ALMM approval by the next month. So, I mean, obviously, once this mandate is out there, the demand for DCR would increase even further than what it is today. So, it gives us more thought of scope and on a pricing front, again, I would say that that would depend on how many capacities are actually light by that time. Because the moment the government starts mandating projects to use DCR cells, it depends on what is the visible supply at that point of time. So, obviously, these projects have like a long deflation period and it's not very easy to bring such projects live in a very short period of time. So, definitely in the short term, the prices would remain at the level that they are and the margins would also be very recent at what level they are today.

And you've been saying that the prices are now again inching up as it used to be in the first or the second quarter, is that?

Correct, correct. We have started moving on a plane.

Okay, and what about the backward integration that you have done with Milton? So, by when can we expect any ground reaction?

Mr. Hemani, there are others who are waiting for their turn. That is a long question. Okay, okay, thanks. Thank you so much, sir. We'll take the next question from the line of Aman Soni from Enlets Analytics Advisory L&B. Please go ahead.

Hi, thanks for the follow-up. Just wanted to understand on the pledge part. Are we going to take steps to reduce the pledge going on? What is our thought for this in this regard?

Yeah, so definitely we are already in touch with IRIDA for this purpose. And I mean, as I said, you know, the current outstanding debt to the next figure is around 100 crores. So we are actively working on sort of releasing this share pledge. And, you know, obviously, all the shares which are pledged across greater than 90% is on accounts of this IRIDA loan. So, we are taking all efforts to ensure that we can get this pledge released in the next couple of months.

Yeah, because I'm asking this, like, I'm saying you are trying to improve the corporate governance, doing the concourse and all, and I hope we will be continuing that, right, going ahead. So, at the same time, we should also be focusing on reducing the pledge and all, right? You are speaking about the KPEX getting funded by internal accruals and why we are not working for reducing the pledge, right? So, I hope we will be doing that, right?

Yeah, of course, of course. We are already working for this, and we are hopeful that the release would come soon. And for the next loan also, which we will take for our project in our wholly owned subsidiary, we are having conversations in line to ensure that there is no further pledge.

Understood. And one more thing, in your annual report, there is some contingent liabilities in relation to the income tax concerns around 75 CR. So, what is our take on that particular amount of contingent liabilities?

We have already received the order from the Commission of Income Tax Appeal on 22nd December 2025, and they have allowed the claim of us in the Income Tax Appeal, so this continue liability as of now stands reversed, and we have intimated the same exchanges.

This kind of communication to the exchange, isn't it? Yeah, we have committed this exchange on 22nd December.

Okay. Understood. Understood.

Thank you. The next question is from the line of Apoorv Singh from Pancharatna Investors. Please, go ahead.

Thank you, Dr. Apoorv Singh. It was a long wait. Congrats, Suwan, sir, Sanjana, Vasamthi, ma'am, Amrit, sir. I have been tracking this company from 250 crore market cap, and today we are almost about to reach an annual path of 250 crore. It's a wonderful journey. All of you should be immensely proud. And thanks a lot for the journey. Before my questions, I wanted to first publicly thank you for the wonderful turnaround. I have a couple of questions. First question is on cost of capital and the return on the invested capital which you have seen for the upcoming 3,500 crore Apex. Second is on the Reddington partnership of Solarkits. One can understand what is the significance of that partnership in terms of scheme of these teams. Can you have these two questions, please?

So, hi, Aburva. So, the cost of funds depends on the lenders, how the lenders would like to give funders on the cost, but since we are aware that the company is already rated at a triple B plus, So, we believe that we will be able to raise the fund at a market rate that is prevailing on the market. So, the cost of fund will be in the current market, current prevailing interest rate, yeah.

Any market rate you can give us?

Huh?

Any rent or real cost of capital you can give us?

So, generally, I believe the cost of fund as of now came between 9 to 10 and 10.5%.

Okay, and what is the kind of return on the capital we are expecting on a blended level 2-3 years?

Now, as you see on your presentation, we have declared that our current ROT is 51%.

No, because both of these KPIs will come live in the next, let's say, three years. So obviously, the balance will change, but the cost has to be incurred right now, and progressively, in fact. So, wanting to understand what kind of...

So, we have already told you in the call that we expect some moderation in the margin as industry mature and become a larger industry. But we, to comment on what exactly is putting the margin after two years is very difficult to comment. Okay, but we believe the margins will be a stable margin and will be a healthy margin on which the company can work upon. So, you don't see any stretch on the financial because of the debt kind of we will incur? Yeah, as of now, we don't see any stress on the Congress. Got it, yeah. Please, on the Reddington, you can answer. So, the Reddington deal is an operational deal that we continue to do with the many clients. So, so ready to be the known party, and we supply them the module, and then, then, uh,

Okay, so the SolarKit partnership, any special significance of that? Does it get more distribution or in any way improve the end margins?

Sadi, your voice is not very clear. Can you please repeat your question? Does it improve the last question?

Yes, Sandhya. So the question was that the Indian partnership, does that improve our distribution and help us in getting better margins? Wanted to understand how does this fall in the scheme of things, the partnership.

It's a simple buy-sale sort of arrangement. So like all our other buyers who buy modules from us, I mean, there is no substantial, I mean, you know, change in margin on account of selling to Redutants specifically. So, I mean, whatever our market price is for the modules, it's pretty similar for most of the buyers.

So, there's no sort of difference in selling to them.

You got it. Thank you.

Thank you. The next question is from the line of Pankaj Gupta from PR Investments. Please go ahead. Mr. Gupta, please, can I answer your question? Yes, sir.

Yeah, yeah, we can hear you.

My question is for the wonderful set of numbers, and my question has been answered.

Thank you very much.

Thank you. We'll take the next question from the line of Ashwini Agarwal from Karsa Kapiti. Please go ahead.

Hello.

Yes, sir.

Yes, I just wanted to know about the current demand scenario. The market believes that, you know, the capital projects are currently seeing a bit less of demand. So, is it getting offset from all the solar rooftops or the PM Kusum demand and everything? Like, is the major chunk of our sale is right now happening towards that area, or is it still towards the capital projects?

Yeah, so given that we are right now doing Monopop technology, primarily most of our products are going for PM Kusum and PM Suryaghar schemes. So, we haven't really seen any dip in demand. In fact, given that there is such a huge demand between the cell supply and module supply in the industry right now, that for cells, we are still being able to hold the ground very, very comfortably. And given that we have our own module line, we are definitely able to have that advantage of being able to give the DCR module directly to such teams.

Okay. Thank you.

Thank you. The next question is from the line of Darshan Garg from Tiger Assets. Please go ahead.

Good evening, sir. Hope I'm audible.

Yes.

Yes, we can hear you. Sir, so what is the capacity utilization of

the new expansion of 600 MW?

Yeah, so for the line, too, we have recorded around 54% utilization in the previous quarter. So, the line was commissioned on 27th September 2025. So, the 54% reflects on the first three months since commissioning. So, of course, we are ramping up these levels, and as Ms. Vasanji also said that as we speak right now, for Lyme, we are already seeing utilizations close to 90%.

This is for line 2.

And line 1, as this closed, even in our earnings presentation, we are operating at 97%.

Okay, great. Secondly, like you have mentioned about the demand. So, are we seeing the government offtake and government slowdown in demand?

I mean, you know, I mean, the latest number which I did, I won't... I guess that, you know, there's 24 gigawatts of cell at the moment, which is ALMM approved, and the module analogous to that is around 145 gigawatts. So, I mean, I don't really see any sort of issue in terms of the demand part. There is sizable demand for solar cells, and as I mentioned, having the advantage of our own module line gives us access to sell the final product directly to the scheme. So, we aren't very eerie of on the demand front and we have a very positive outlook in terms of the future roadmap.

Sir, so also, Ma'am, so the PPA for the renewal projects has slowed down. So, would that really affect the demand?

I mean, we haven't seen any impact on that front, given that we are catering primarily for the pumps and the solar kits for residential purpose. So, given our book, we haven't seen much change in demand for our end consumer.

Okay, ma'am. Thank you so much. Yeah, yeah.

Thank you. The next question is from the line of Deepak Rao from Cuba, Asset Advisors. Please go ahead.

Hello, can you hear me?

Yes, okay.

So, Swanwalji and team, congratulations on excellent results, and thank you for holding a made-in analyst call. I have three questions to understand your company better on sourcing, technology, and demand. Demand has been sort of answered already. As far as sourcing is concerned, I'd like to know, like, the sourcing of wafers at this moment of time, which of the countries you get it from? Do you see any challenges? And as you said, China has been dumping wafers. Do you expect costs to go up in wafers?

Yeah, so right now we are securing wafer only from China. As you would know, there is no such installed capacity in our country for wafer. So definitely, you know, there has been some increase in price on account of wafer, but it hasn't been substantially that high. In terms of risk, personally, I do not foresee any risk for, you know, procurement of this raw material from China. I mean, like, all the manufacturers in India currently are doing the same, and I would think China's economy is also supported greatly by the export they are making of these wafer, given that there's such large overcapacities in China that maybe they are not able to absorb this, So, I do not see any risk in terms of procurement. Definitely, price is dynamic. It does keep increasing at some points, but as of now, given the comfortable margins, I would not foresee it as a risk. Also, having said that, we have also taken the initiative to backward integrate and install our own invert and wafer manufacturing capacity. So, we are diligently working on this, and we are hopeful that one such capacity is on ground, there would be greater synergy.

Okay, thanks very much. So I think there was another person who asked about Linton, but he couldn't get answered. Really, do you have plans and when the wafer and ingot manufacturing will take place? And my last question was on technology. So what are the plans? Are you going to replicate the technology that you've had in West Bengal in Andhra Pradesh? Are you going to get equipment from Europe like you've done before? Are you going to be reliant on China for all this? Do you see any challenges in terms of setting up the plant there?

So, on our first question with respect to LinkedIn, of course, we have signed an MOU for the partnership with them, and currently, we are working on all the technical details for this project. So, in terms of building of team and all the training exercises that need to take place, given that this is a new technology to our country. So, we are working on this and we are hoping that, you know, we will be able to bring such capacities in time for the government's ELMM mandate for Vapor, which we've announced for June 2028. So, initially, we planned your 2.5 gigawatts line, which we will further ramp up in time to come. So, that is on the paper front. And with respect to your question on the technology in Andhra Pradesh, so, currently in Reddingola, 1.2 gigawatts is completely monoperable. So, of course, in Andhra Pradesh, we will be migrating to the top-con technology, which has higher efficiency levels, and for the same, currently, we have... Of course, we are evaluating the German equipment provider, but we also are looking at Chinese equipment, and we will be placing orders for the same close to April. So, we are continuing with our evaluation to ensure that in time for placement of order, we choose the provider which is able to guarantee maximum efficiency of the product. So, right now, we are keeping both our options open until the time of ordering.

Thanks very much, Anjana. I think you really answered very well, and I wish you for the journey within Web 12, and also, Watanthi and Mr. Kohenwalji, you know, there's some luck. Thank you very much.

Thank you, Panj. Thank you.

Thank you. Ladies and gentlemen, we'll take the last question for today, which is from the line of Yash Chandalia from British Asian Trust. Please go ahead.

Hi, everyone. Of course, huge congratulations to the entire team. Amazing set of numbers. I had a question on the existing cell line. Correct me if I'm wrong, but from what I understand, Thank you, Doug. Existing lines can be upgraded to TopCon if we choose to do that. So I wanted to understand if there is any visibility on that or any plans to upgrade the technology to TopCon.

Correct. So, yes, we are evaluating this already, given that, you know, in time to come, the industry is going to transition from Monocorp to Topcon. So, we have been already evaluating, converting our current Monocorp facility into a Topcon facility. We do not have an indicative timeline right now with respect to when we will be doing this, given that, you know, we have a strong order book for Monopurk. And as we mentioned that, you know, there is a strong demand from PM Kutsum and PM Puryagar for Monopurk modules. But definitely, we will be converting the theme and we will be able to share further details once we have the entire course and timeline of the theme. But we are aggressively working on this.

That's very encouraging to hear. Another question I had was, so the investor presentation mentions that we are evaluating answer the opportunities within the entire sector. So we obviously know about the backward integration that you're planning. But just want to get a sense of any other opportunities that you are potentially looking at in this space. And if you could give some indication if there is anything.

As of now, our main strategy is to kind of scale up cell and module manufacturing, which we are doing by means of the Green Key project in Andhra Pradesh. And along with that, we have supports to backward integrate into wafer and ingot. So, this is what is firm and we are aggressively working on the same. Meanwhile, of course, we are working on smaller projects, for example, you know, reduction of silver consumption in our products and, you know, researching on technologies post-opcon, like Backcontact and Peruskite. So we are already researching on all of this. But in terms of diversification to new businesses, which are, you know, like, as of now, we haven't really, I mean, we are exploring in terms of identifying these products. But as of now, we do not have any firm plans of any diversification at the moment.

Got it. Final question. So, what I see is that the inventory for this quarter has actually grown half-price. So, when there's such a huge order book already in line, like I think 1,150 crores, why is it that the inventory has built up to 90 crores?

Oh, yeah. So, you know, as I said that, I mean, the reason Inventy has built up is because, you know, from certain customers who we sell to, in fact, it's been an industry phenomena that there has been some temporary liquidity constraints. So, this has kind of delayed the sort of offtake at their end. So, of course, that has not resulted in cancellation of these orders. It has just deferred these orders. So, we are hopeful that, you know, the slow uptake of the previous quarter will get neutralized in the current quarter. So, order book still remains strong and whatever numbers we have shown, we are extremely confident about that. But definitely quarter to quarter, there is some change in uptake because of certain constraints at the end user front also.

Got it. Thank you. Thank you so much. I think this has been extremely helpful. And congratulations again.

Thank you so much. Thank you. As that was the last question for today, I now hand the conference over to Ms. Sanjana for closing comments. Thank you and over to you, ma'am.

Yeah, thank you so much, everyone, for joining the call. It was great interacting with you all, and we will make sure that we do these investor calls every quarter so that we can stay more connected, definitely. Thank you so much.

Thank you, ma'am. Thank you, members of the management. On behalf of WebSOL Energy System Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.