Advait Energy Transitions (BSE:ADVAIT) Q2 2027 Earnings Call

0:00 Good morning, everyone. Welcome to ADVAIT Energy Transitions Limited Q2 and H1 FY 'twenty seven Earnings Conference Call hosted by Concept Investor Relations. On the call today, we have Mr. Charlene Seth, founder and MD of ADVAIT Energy Transitions Limited, mister Narayan Singh, chief financial officer, miss Rutvi Seth Kundalaya, head human resources and strategy, mister Priyank Shah, head f and a, IR and corporate affairs. Mister Patel Kundalaya, managing director at Vet Greenology Private Limited. Please note, a copy of all the disclosures is available in the investors section of the website as well as on the stock exchange. Anything sent on this call, which reflects the outlook for the future or which could be construed as a forward looking statement must be reviewed in conjunction with the risks that the company faces.

0:54 Now I shall hand the call over to Mr. Shalin Founder and MD, Advait Energy Transitions Limited, for his opening remarks. Thank you, and over to you, sir. Thank you, madam, and welcome, everybody. I'm Shalin Sheth. Good morning, everyone. And, Avad, welcome to our Q2 and H1 financial year 'twenty seven earnings call. Joining us today, along with our team, our Investor Relations Advisers Concept PR. It is always a pleasure to connect with you as we look back at the first year twenty seven. I would like to share how we are progressing on ADVAIT's journey on building on our established trends while expanding into new areas of energy transition, where we already put our place in the last three to four years. ADVAIT has built its foundation in power transmission and subscription solutions by developing capabilities in specialized products and execution led solutions.

1:52 Execution and delivery has always been the forte of our group. Over time, this foundation has enabled us to take on more complex assignments, deepen our manufacturing capabilities and expand to newer areas of the energy transition. We look forward at this half year, we have focused on two connected priorities continuing to deliver in the business that has reached our credentials and legacy, while investing into capabilities that will support ADVAIT next phase of growth. Let me begin with update on our upcoming manufacturing facility. I'm pleased to share that we are making steady progress on manufacturing capabilities outlined earlier at Gangar Gujarat, the work is progressing towards planned Phase one operationalization of our integrated manufacturing facility by Q4 financial 2027.

2:43 This expansion will strengthen our capabilities across power transmission and subscription solutions, new and renewable energy, while providing the infrastructure to support our future growing business pipeline. For our 2.5 gigawatt of our VSS manufacturing facility, which is expandable up to five gigawatt, we have quoted we have cleared the final plant and machinery orders, and the plant is expected to be operational by Q4 financial year 'twenty seven. This is an important execution milestone as we build capabilities in a segment with specific growth potential and extremely sensitive capital allocation. Overall, these investments are aimed at centering our execution capacity, broadening our technology offerings and positioning ADVAIT to capture opportunities across Energy Transitions value chain. We'll share further updates as we move forward through implementers and milestones.

3:40 With this update, let me move to our order book and business momentum we have witnessed during the first year of 'twenty seven. We saw encouraging business momentum in first year. Our consolidated order book, including the annual positions stood at about INR $15.75 crores as of 09/30/2026, reflecting year on year growth by 47%. The strong order book provides us with a healthy revenue visibility and reflects the continued confidence of our customers in ADVAIT's capabilities. With strong pipeline of opportunities across the business, we remain focused on converting these opportunities in orders and building sustainable platform for growth. Our priority remains to convert order book into timely delivery while maintaining the disciplined approach to project selection and working capital.

4:31 H1 execution and completed orders. Moving beyond order book, I would like to highlight the progress we have made in execution during the first year to 'twenty seven. During this half year, we successfully completed order worth of INR 400 crores. Our ability to execute across our business and delivery on customer commitments. Our focus remains on maintaining execution discipline, ensuring timely delivery and strengthening our track record as effectively to scale up our operations. PTS business, in our PTS solutions business, we have continued to strengthen our order positions, supported by demand across the transmission infrastructure, distribution network and especially for transmission solutions. During the period, we secured distribution related orders from EGVCL about INR52 crores. We also received the multiple orders from PGVCL.

5:18 In addition, we have also received a very milestone and specific orders for the ERS, OPGW, stringent tools and our upcoming facilities. India's continued investment in transmission capacity, grid modernization, constraints in expanding transmission network and our offering as a solution, renewable energy evacuation are creating opportunities across all the product segments we have been focused. Our focus remains on leveraging our established capabilities, expanding our product offering and converting this demand into sustainable business growth. New and renewable energy business. In the new renewable energy business, H1 financial year 'twenty seven was marked by progress across battery energy storage, C and A applications, green hydrogen and manufacturing capabilities.

6:10 In BSS storage, we secured the new order of 150 megawatt by 300 megawatt hour stand alone BSS system in Junagad. This is also an important step in strengthening our presence in energy storage segment, complete value chain, where the growing integration of renewable energy is increasing the need of reliable and flexible power infrastructure. In green hydrogen, our electrolyzer technology continues to progress through testing and customer engagement. Our five megawatt testing program has enabled us to engage with more than 13 Indian green hydrogen players, supporting the validation of our technology and its application across the emerging hydrogen ecosystem. We have also entered into the sale take off agreement with ETM for our upcoming order pipeline, supporting our efforts to build capabilities across battery energy storage value chain.

6:59 The broader industry is entering a phase where renewable energy generation storage green hydrogen are becoming increasingly connected. We believe this creates a meaningful opportunity to ADVAIT to build its engineering and execution capabilities while remaining disciplined in our scale of presence across the business. Our focus in NRE segment is, therefore, twofold. One, to execute the opportunities already secured and while building the manufacturing technology capabilities required to participate in next phase of energy transition boom. With this, I will now hand over to our Chief Financial Officer, Narayan Singh, who will take you through the financial performance and key financial highlights for the period.

7:45 Over to you, Narayan, and thank you, everybody, for listening. Thank you, Salim, sir, and good morning to everyone on the call. I will now take you through Agil Energy Transitions consolidated financial performance of phenomenal second quarter and first half year ended September 26. Our revenue from operations stood at INR $2.21 crore, resisting a year on year growth of 40.8% compared to INR 157 crore in Q2 FY 'twenty six. EBITDA for the quarter stood at INR 32 crore, reflecting year on year growth of 84.4 percentage. Our EBITDA margin for Q2 FY 'twenty seven stood at 14.5% compared to 11% in corresponding quarter of the previous financial year.

8:38 Profit after tax for the quarter was INR 19 crore, suggesting a year on year growth of 88.5% compared to the INR 10 crore in quarter two FY 'twenty six. Our credit margin stood at 8.7% as against 6.5% in quarter two FY 'twenty three. Moving to our performance for the first half year of FY 'twenty seven. Consolidated revenue from operations for H1 FY 'twenty seven stood at INR 400 crore, registering a year on year growth of 45.4% compared to INR $2.75 crore in H1 FY 'twenty six. EBITDA for the first half year stood at INR 57 crore, reflecting a year on year growth of 82.6%.

9:24 EBITDA margin for H1 FY 'twenty seven stood at 14.2% versus 11.3% in H1 'twenty six. Profit after tax H1 FY 'twenty seven stood at INR 34 crore, registering a year end growth of 77.9% compared to INR 19 crore in the corresponding period last year. Page margin for H1 FY 'twenty seven stood at 8.5% compared to 6.9% in H1 FY 'twenty six. Our consolidated network stood at INR $2.26 crore, while gross borrowings were INR $2.80 crore and our debt to equity ratio stood at 0.86x compared to 0.42x as of March 26.

10:11 During H1 FY 'twenty seven, our incremental CapEx of INR 101 crore versus FY 'twenty six was 59 crore. After that, we are anticipated around incremental of INR 140 crore CapEx in H1 FY 'twenty seven out of this INR 100 crore were funded through debt. That covers the key financial highlights of our quarter and the first half year of FY 'twenty seven. I will now hand the call back to Salim sir. Thank you, Narayan. As we look ahead, the Indian power and energy sector is witnessing a significant transformations, rising electricity demand, investment in infrastructure, renewable energy integration and growing yield for energy storage and green hydrogen are creating new opportunities across the sector.

11:01 We believe Indian Energy Transitions Limited Advait Energy Transitions Limited is well positioned to participate in these opportunities, building on our established capabilities while expanding into emerging energy transition businesses. Our focus remains on disciplined execution, strengthening our capabilities and creating sustainable and long term value for our shareholders. With that, we will be happy to open the floor for questions and answers. Thank you. Thank you very much, If you wish to withdraw yourself from the question queue, you may press star and two.

11:48 Participants are requested to use only handset while asking a question. We will wait for a moment while the question queue ascends. The first question is from the line of Monish Tony Navani from Monarch Network Capital. Hello? Am I audible? Yes. You are. Yes. Hello. Sir. Good morning. Thank you for taking my question, mister Syed. Very very recently, you have out... You'd outline outlined the INR 5,000 crore top line target over the course of five years roughly, which would be around 7x of FY 'twenty six revenue. What gives you the conviction behind this number actually? Is it the order book capacity? Or is it the new capacity that is coming up or the new verticals? And on the execution front, who is exactly driving this trend?

12:47 Thank you for the question. If you look at if I look at my numbers in last six to seven years, we have achieved the similar numbers, which is more than which is about 50% to 60% CAGR in revenue and also in EBITDA. So we are looking forward this path to take ahead as a vision and mission of the company. So we are looking forward this as a mission of the company. And we are finding immense opportunities in terms of offering the product and project sizes that we are now being qualified and we are already qualified. So looking to the support from the investors and funding, we are encouraged and we feel that it is feasible to make this revenue target by the specific timeline.

13:42 Thank you. Sir, I have a follow-up for the current situation of the order book of INR fifteen hundred crores roughly. That is what would be the mix between the public and private sector clients out of the total of INR 15 crore order book presently? And how does this exactly affect your collection cycle? See broadly, this is this we can say that number, which I'll not be having often. If you want, we can provide you later on through our CFO. But broadly, this mix will be between 60, 65% public and 40% private. And looking to our history of last three to four years, our collection cycle in public has been equally efficient as with private.

14:29 Oh, okay. Sir, I do have a few more questions, but I don't mind connecting with your team offline, if that's fine. We'll take the next question from the line of Naman Palmar from Divisci Investments. I'm sorry, sir. There was a disturbance from Mr. Parmar's line. He got disconnected. We'll move on to the next question from the line of Bhagwat from Prosperity Wealth Management Private Limited. Please go ahead. Thank you for the opportunity and presentation on the strong quarterly results. Our latest annual report shows the investment of 22 crore in tech of fuel cell technologies.

15:22 My understanding is that the original tech of 2030 filed for bankruptcy in 2024. So could you please provide some clarity on the nature and current status of this investment? Just wanted to know how should we assess this investment? Yes. Thank you, Babaji. This investment is not necessarily into the company because we are aligned with technology and the licensing with the company called ADVAIT, which is world's biggest company for the providing the technology across the automobile and private segment. So we are aligned with ADVAIT and TECHCO for next one decade of technology usage of the fuel cell. And we are confident that this will continue as green hydrogen ecosystem is being developed. And our fuel cell offering will also, which we are developing will come on our platform of offering time ahead.

16:15 So we are very much aligned with our strategy. So this particular investment is for the fuel cell technology, if I understand correctly? Yes. It's a part of getting the license for requirement of manufacturing of the fuel cell and that remain intact. Okay. Are we looking for increasing this investment going down? I think in the next quarters, I'll be able to give very important information announcement that we have moved very sizable in the segment. I think with the compliance, I'll not be able to tell now, but I think by next quarter, we'll be able to give very important information announcement that what we have done. And we'll also be able to provide some time line that why when my first plan is coming for the future.

17:12 Okay. Okay, sir. Thank you so much. You so much. Yes. Thank you. We'll take the next question from Naman Parmar from Divisha Investments. Please go ahead. Good morning, sir. Thank you so much for the opportunity. So firstly, I wanted to understand specifically on the order booking mix. So like you mentioned about the PTS and r... And are you right? But just wanted to have understanding specifically on the manufacturing versus EPC in both the divisions. I would like to give a little more explanation to the question. If you just look at the our existing PTF segment versus the renewable, the order book is presently in a ratio of about 60%, 65% of the PTF, 35% of the NRE. In next one point five year, two years, we believe that this will be equal or maybe NRE segment will be having the bigger order book in next one point five years. That is the plan of the company. If you look at the ratio of EPC versus manufacturing, presently, our company is offering 60% to 62% of EPC solution, about 38% of the manufacturing.

18:25 As per our new as per our integrated manufacturing plan, our company is aiming to be 70% to 75% manufacturing from the year twenty twenty eight, twenty twenty nine based on the new facilities are coming. So this is the transformation of the company from the product and solutions company. And I think we already we have provided the timeline and name for the same in our earlier session. And we are exactly moving as per the plan. Okay. Okay. That was helpful. But just on the NRE division, so currently, it's more or less the EPC, right? On the whole consolidated, you are telling that 60% is manufacturing, right?

19:10 But NRE currently it's EPC and in future the whole that you have to use electrolyzers and and all Yes. See, we are the company emerging from the SME segment, wherein our network was also limited. So definitely, we were not having the manufacturing for the our new businesses, which we will slowly building up. And you know that when we are building up the businesses, first, have to enter it, we'll get the qualification and know how. So in all the segments where we approach into '24, now we are ready with know how and qualification. And with the availability of the funds now, we are putting the manufacturing for this year. So it's all transition. And we always believe that the transition should be as per the plan and ultimately, are able to get approved for us.

19:58 Okay. Wonderful, sir. Thank you so much. Secondly, on the order book pipeline. So if you can help me understand how is the order book pipeline for the all the division, if you can help. So you want the order book pipeline division wise? Yes. Yes. Division wise. So you are saying the pending order, what we're having now or the new order which are coming? New order that will be coming. Here. See, we believe that our new order inflow for the next one year will be 50% for the PTS, 50% for the NRE. In the 50%, again, for the PTS side, we have the equal portion versus EPC and manufacturing Okay. But how much would be the amount if you can help me understand?

20:46 How much is It's under amount like in the inquiry, how much orders are there for the like, electrolyzer, fuel cell, hydrogen? You want exit number of the orders to be coming product wise? Yes. Yes. Product wise. Yes. I think there'll be two details, and I think we'll be able to provide you this information by email or a separate call. But broadly, can tell you, our order book is really at least 1.6 to 1.8 times than our last year revenue. Okay. 1.6 to 1.8. Yes. And lastly, on the like the unit of economics, like how is the unit of economics has been changing for the green hydrogen like the application would be increasing going forward? Or is the price has been changed over one... Last two years? If you can help me elaborate more on this. And and on the fuel cell also, like, adoption of the fuel cell in the domestic market is very early, right, because we don't have a very high number of the natural gas as a generation part. Right? But even though you are trying the hydrogen part and converting it for the electricity.

21:59 And also on the next tech part, like, are tied with them. So they are not also very much aggressive on the deployment of the fuel cell in the Indian market. So how you are seeing going forward, if you can help me understand? Naman, by the question, what you asked is reflective basically to the government of India. What we can do is that we can put the maximum contribution so that we can take the maximum benefit of the upcoming opportunity. So as a result, we believe that how we can be ready in ADVAIT with a minimum investment. And that's what we have done that we are being ready with the optimum investment to be done from the company side and take the benefit as having the multiple expansion rate when the opportunity comes.

22:53 So if you look at the unit economics, at the moment, the green hydrogen unit economics is away than what is being available in the gray hydrogen. But you will see that the year 2026, the unit green ammonia versus the gray ammonia, the price difference has been breached considerably in last one year. And now the green ammonia seems coming at par in the time ahead, maybe 'twenty seven, 'twenty eight with respect to the gray ammonia. Same way the government is looking forward to how it will be proceeded for the green methanol. And then also with the various industrial application, mainly for the steel fertilizer and also for the refineries.

23:47 So it's a gradual transition, which is happening. And we believe that it will take about one to three years as to have the unit economics to be more meaningful and direct to impact our industry. But as Advait, we have been working at putting up the plant at 150 megawatt in Phase one, which is about 3% to 4% of the current requirement. So we are confident to put a mark in terms of order book as far as Advait is concerned. Okay. Got it. And this one fifty megawatt could earn how much revenue for you? It should add the value anywhere between 600 to thousand crores. Okay.

24:33 Okay. Wonderful. Mister Palmer, I would encourage you to kindly rejoin the queue for follow-up questions. There are other Swarati. Thank you. You may please press star and one to ask questions at this time. The next question is from the line of Meet Bhuwa from Integrity Ventures and Partnerships. Congratulations on good set of numbers. My first question is on the margin side. So our NRE segment margins has increased drastically and our PTA segment margins fall slightly. So just wanted to understand what led to the reason of increasing margin in NRE and falling PTA segment? Hello?

25:25 So your question is towards the margin. Is there a separate margin for both the segment? Is that right? Yes. Yes. Yes. So our strictest segment margin has been steady since last four years, which changes of 1.5% per year. And N and A margin have been improving year by year. So we are in the range of margin about EBITDA of 7% to 8% for the segment, which will be building up 30% to 15% in next two years. Okay. And how this increase in margin will be driven by in Energy Management? Driven by manufacturing and solution, which we are building up.

26:10 Okay. Okay. Got it. Got And my other question is on the broader hydrogen electrolyzer space. So I just wanted to understand the broad market on this, how the adoption is happening? What are the unit economics in this? And what are the supports the government is providing on this to boost the hydrogen electrolyzer and fuel sales manufacturing? Sure. Thank you for the question. This is Vatsal Gundalaya here. So based on the green hydrogen and green ammonia market, as we are already seeing that this year, at the start of the financial year, we saw that the GABA and the GASPA signing of green ammonia developers had taken place, which gives an indication that there is a huge offtake opportunity, which is being developed and which is being governed and taken care by SECI and the M and A in order to bring off takers as the private customers and the export customers towards the ammonia and hydrogen developers.

27:07 And this development gives a strong indication that there is going to be a good opportunity for the green hydrogen electrolyzers and balance of plant requirement. So and at a company level, we are already engaged with almost all the hydrogen and ammonia developers and also few PSUs who are working on the projects of hydrogen ammonia and related molecule developments for India and export market as well. And when you ask fuel cell, it is all a chicken and egg story. Basically, once the hydrogen ammonia market are more levelized in terms of the costing and comparison with the gray market, After that, we see a very strong application of fuel cell. And it's a truth of the market that once and only when the end use is clear and confident, only then the equipment industries also start picking up. And we are quite hopeful that this will start happening with fuel cell in the next two to three years as well. Okay.

28:06 Okay. Thank you so much. And one more clarification on numbers, right? You look at the fuel cell, even on today, on the OpEx side, if you look at the standalone application against the use of DG, OpEx side, even on today's number, it is economical as to use the fuel cell for the standard application. Now we are transforming and our CapEx, which is much higher compared to DG, which will take some time. Okay. Okay. Got it. Got it. Thanks so much. Thank you. The next question is from the line of from. Please go ahead. Go ahead. Hi, sir. How are you? I'm sorry, sir. You're not clearly audible. May I request you to kindly use your handset?

28:57 Yeah. Am I am I audible now? Yes. You are. Yeah. So I had two questions. First is on the Ind one one five adjustment. Right? So I just wanted to know what is the core revenue. If we adjust the Ind AS one one five in the consolidate numbers, what is the core revenue and core EBITDA? Thank you for asking the questions. As for the one month high, the core revenue is from our manufacturing of product and APC products. So basically, the product to which is income is coming from manufacturing our OPGW live line and stringent tools.

29:43 And from EPC side, HDL is conducting this, which is our core product. And the EBITDA of this core product margin is between the 17 to 18%. That is. Okay. So I was asking on the consolidate level, excluding the EPC portion of the one fifty megawatt and the other 50 megawatt of best systems, I was asking what is the core revenue that we have earned in this quarter, two q, and the core EBITDA that we have earned, which is actually going into the cash flow. In NLE segment, we are specifically doing the NLE in solar EPC business and GST EPC business currently. And from this, we are getting EBITDA between 5% to seven percent.

30:32 Okay. And my second question is on the stand alone NRE segment. So we have reported from around 4 crore of top line while our segmental result show 7.8 crores of EBIT. So what am I missing here? Operating profit varies order to order basis. So it is in the range of 6% to 8%, be it Solar EPC business or any other EPC contracts. I was asking on this quarter, on the top line of four CR, we have earned 7.8 CR of operating profit for 2Q in stand alone NRE.

31:22 So is there the other income portion or what No. Other income portion. It is core from revenue from operations only. So that by the EPC contracts. It is operational revenue only. There is no other income significant spike. No, I'll take it offline. Thank you. Thank you. Thank you. Okay. Thank you, sir. The next question is from the line of C. A. Gaurav Goel from Serene Alpha. Please go ahead. Congrats for a good number. My first question is on the guidance that we provided last year for FY 'twenty seven. We are targeting around INR 1,100 crores top line. And to achieve that number, we need to do around INR 700 crore in H2 FY 'twenty seven, which means a run rate of around $3.25 crore to INR $3.50 crore per quarter.

32:26 Are we still prudent to do that number in the second half? Yes. I think our track is in line with that number. So as we just mentioned in Q2 also, so looking forward to have the revenue growth with respect to last year, about 55% to 60% and which will cross out, which we believe so. Okay. That's good. And secondly, on the margin front, if I look at the first half EBITDA margins, we have done 14%. Number one, are we able to sustain this number looking at the current inflation environment?

33:12 And number two, going forward in FY 'twenty eight, when we are specifically speaking about energy segment will increase as product mix, overall product mix, what kind of margin profile we will be having once that shift will be happening in 'twenty eight and 'twenty nine? As a group, we are looking forward by the time to have the EBITDA margin as a group level 15%. Once my manufacturing setup is established here. And meantime, we have been progressing 1% to 1.5% every year. No. But what about this financial year, sir? In second half, are we still committing to 14% EBITDA margin to sustain or due to the higher inflation, there can be a little bit of I would not use the word as committing, but we are looking forward to have similar numbers.

34:13 Okay. So are you not facing any challenges of the higher inflation? Pardon? Are you not facing the challenges because of the high inflation in this particular environment? I think many part of the inflation has been taken care in terms of booking the raw materials and our resources. So that's why I use the word that we're looking forward to have the similar kind of numbers for the year. Okay. Understood. Lastly, on the balance sheet side of it, that is consistently increasing, sir. What are the plans with respect to debt when we are speaking about a significant growth over the next few years? Are we looking at our debt profile? Because to grow, how are we looking at the capital structure mix?

35:06 Ultimately, it will be putting the pressure on the P and L at the same time if we are speaking about the debt. So is the strategy in this direction, sir? My broad answer will be that we should not look at the company's balance sheet as a status quo because we are in process of transforming our business to the ultimate ADVAIT Energy Transitions being a product and solution company. And they also have the capability of creating assets, various growth assets will also help Advait's product and EPC business as to add the value for the shareholder and also have the assets offering the bestest economical value for our asset platform equity holders.

35:55 So when we are transforming, so that currently, we have got one asset in our main company's balance sheet. You know that this will also be transformed over asset time ahead. Broadly, can tell you, our debt to equity ratio for our manufacturing and solution business will be about 0.5% to 0.7%. But during the period of time, this may shift because we are creating and we are developing our business model. So we are extremely cautious about the same. There's a part one about the ratio and part two about the, you know, the financial cost. So in terms of percentage of the sales, I think well within the number even today. Okay. And what about the cash flow, sir?

36:41 I'm sorry to interrupt you, sir. Sir, I will request to kindly rejoin with you. Hello? Sir, yeah, please proceed. Yeah. Thanks. Just asking about the cash flows side of it. How we should look at this number when we say we we we are having the realizations equal from the government as well as the private sector. How are we looking to improve our working capital going forward once this NRE segment increase and whatever the product mix changes to happen that makes is there. So how we should look at the working capital profile and the cash flow of the company?

37:33 See, how we look for how we look at our cash flow that we our each products and solutions are into the segment where it is a must of either a private customer or a government. So the cash flow is a quarter to quarter may vary based on the growth profile of the particular business side or the growth profile of the company. But in an overall, if you look at the year to year, we are looking for an extremely positive cash flow as far as the operations handled for the last year. And yes, we are also as we discussed last time, we are in process to raise some fund maybe in Q3 or Q I mean, Q4, wherein we'll be having some equity as a working capital requirement for the company. So that will ease our growing pattern and that will ease our financial capital requirement.

38:33 So will it be the QIP, sir? I'm sorry, sir. You'll have to rejoin the queue for four hours, please. Thank you. The next question is from the line of Ankit Gupta from StarCap Investments. Sir, congratulations on posting good numbers. So my first question is regarding the sector as a business. So the company commented 30 megawatt manufacturing set up in March 2026. So can you please let us know how much revenue has been booked from inception? And the what is the current capacity utilization of the 30 megawatt electrolyzer in capacity?

39:25 Thank you for the question. And until now, we have completed our first project of 300 kilowatt for THBC in Rishikesh for green hydrogen applications, which is for a PSU government client and the second project of one megawatt, which is for a private client in Gujarat, wherein we have the EPC and supply portion will be is completed and will be commissioned hopefully in this quarter. So to answer your question, for the 30 megawatt assembly line that we had inaugurated in March, Currently, we are in the market. We are looking out for good opportunities for doing the business. And as of now, we are in the process of assembling our first one megawatt electrolyzer in our own facility as a part of engineering development.

40:16 So once that is done and parallelly, we are in the market to explore the orders for the same. So we'll look forward to some inputs in this quarter and the next one. To exclude the answer of this 30 megawatt assembly operations we have started is to showcase our ability and to put up our technological transfer demonstration. And we clearly have believed that this facility will be utilized for the year 2027, 'twenty eight, where we've been working with the orders of more than 150 megawatt to be booked. So as a part of our reason, it will be operational in 2728 in terms of numbers. And so my follow-up question is that we have given in the presentation that 300 megawatt center will be commencing phase two. So why...

41:12 By when do you expect the capacity to be operational? And from which year, we can expect a meaningful contribution? It will repeat about '29 or will it be about 30? What's the complete 300 megawatt capacity? Can you please repeat the question, sir? Just So my my question is, we have given the presentation that we we are setting three megawatt capacity that will be operational phase two. My question Sir, your audio is not clear. I'm sorry, sir. Your audio is not clear. May I request you to kindly use your handset? It is muffled. Am I audible now? Yes. Yes. Ma'am, my my question is, we have given in the presentation that the inspection setup for 300 megawatt electrolyzer will be commencing phase two. So my question is by then do we expect this capacity to be operational? And by then we can expect a meaningful contribution? Will it be about 30 or will it be about '29?

42:15 We are not looking forward to put out the entire 300 megawatt capacity to be operational in 2027. We're looking forward to work on 150 capacity to be operational in 2027, maybe in Q4. Reason being, we are carefully watching the market to be open. Presently, we are finding an active inquiry of more than one gigawatt. And based on that, we will be putting half of the facility to be operational in 2027. Wherein our plant is having the capability in terms of construction, it can go up to one gigawatt by 2028, 'twenty nine.

43:06 Okay. And sir, what revenue we can expect to come with 150 megawatt? 150 megawatt can book the revenue anywhere between INR 600 to INR 1,000 crores based on the scope. Mister, my second question is, sir, we have mentioned that we have acquired 12,733 shares of AGTL. And the value in the transaction comes out to be 65 per share. But in the presentation that we have given that we have bought share 10 rupees plus $24,799.90, that comes out with $25 per share. So I just want to confirm the total value for this for this buyout.

43:57 See, from my guess, what I can inform to you that as a part of the strategy, we are going ahead with a very big plan of the AGPL. There will be needing the fund, there will needing the resources. So it is being backed by ATL at the moment. And regarding the individual transactions, I would suggest to be in touch with our CFO by email. Mr. Narayan will specifically can be in touch with you and provide your information because these numbers are not able to provide you offline from my side at the moment. Okay. So thank you. Most of the questions have already been asked. Thank you so much, sir, and best of luck for future. Thank you so much. Thank you. The next question is from the line of from SB Capital. Please go ahead.

44:46 Sir, my first question is regarding the order. So you recently won 100 megawatts. So what will be the margin profile there? I believe you are mentioning about the solar EPC order that we have the solar EPC order from KP, right? Yes. Yes. We are working towards obtaining an EBITDA somewhere around 8% to 10% for the order. Okay. And second thing regarding the year, sir. So we have 2.5 gigawatt of capacity in next year. We are going to have. And currently, we did a MOU of one gigawatt, sir. So what is the capacity utilization we are expecting next year? And how is the bid pipeline for BEST looking at the moment? Because I read somewhere that it is going to accelerate in FY 'twenty eight. So can you confirm on this?

45:38 Yes. As mentioned, there is a lucrative market for MES that we are seeing in terms of the public market tenders and even the developer inquiries, and we are working towards the same. And once our plant is operationalized and commissioned, we'll be looking forward for handsome order booking for mesh as a supply. So how much will be like internal consumption and how much will be external container providing? And secondly, what is the utilizing you are expecting next year? The last time you said like 80%. So if I do the conversion, so it will be somewhere around INR 1,500 crore revenue from VFS only next year. So this is where I got a little bit confused. So to answer your question, our internal consumption will be what we have internally decided will be a few projects on a year on year basis. Lastly, we'll be looking for the outside of captive order in sense of open market orders and tender opportunities.

46:37 And for the capacity utilization, we are looking forward for anywhere about 40% to 60% capacity utilization for the first year of the planned capacity. Okay. And what about this expansion to five gigawatt? Like you said by FY 'twenty, 'twenty nine, you will expand it too. So how is the market looking? As I said, the market is quite lucrative. Also, are a few other good players that are entering the market, which creates a good basis of competition. So we are looking forward for a good share in the future. Sir, one question I had, it is a little bit different. So basically, what I understood that you have long term plan to take DSS to five gigawatt, apply that to one gigawatt. So if I sum it up, it will be INR 7,000 crores based on your economics only conservatively.

47:28 So isn't INR 5 crore target very conservative? So your question is that looking to the capacity which we have to look and if you're just contributing in terms of numbers, it is coming the bigger numbers. Can you please explain how the numbers are coming? I'm talking about FY 'thirty. So your longer term plan is to take BSS capacity to five gigawatt and electrolyzer to one gigawatt. Okay. So if I submit just with these two, so number will be around 7,000 crore at least. I am leaving solar EPC, fuel cell, PTS division. So target you are talking on more channels of 5,000 crore. It looks a little bit conservative compared to the CapEx that we were giving. Sir, there are several things. What is if we want to continue our growth, it is indicative of what we can mention about INR 5,000 crores, number one. Number two, while we are achieving those numbers, definitely, we should be extremely conservative and extremely sensitive in capital allocation, cash flow and our ability to clear that cash flow.

48:35 So when we are looking at the market, we should also look at our cash flow. So this is definitely going hand by hand. And definitely, every year, these numbers may be refined, but we can definitely look at the base numbers. Okay. Okay. And you are rightly aware... You are well aware that this sector is definitely depend on a lot of macroeconomic factors, which is beyond the control of the particular industry. So now the debt will also affect. So the numbers should be decided and talked accordingly. Got it. Got it. Thank you, sir. Rest of the question has been already answered by other participants. Thank you. Thank you. Thank you, sir. The next question is from the line of Advait from JP Training Form. Please go ahead.

49:32 Advait, I have unmuted your line. Please proceed. As there is no response, we will move on to our next question from the line of Nishivasi, an individual investor. Please go ahead. Hello. Good afternoon, and thank you for help. So just to understand, you know, going forward two to three years down the line, what would be the contribution of NRE versus the PTA segment? After two to three years, we are looking forward a 5050% contribution from each NRE and PTA division. Okay. Alright. Also, with respect to the CapEx that is guided for around 300 to $23.50 crores for FY '27, so how much of the investment has already been done in h one?

50:29 Thank you, madam. In H 1, we have done already in my speech, 101 Keral already incurred. And in FY '20... FY... Sorry. H two, we are planning $1.40 keral investment further in FY '27. Okay. Alright. That's it from my side. Thank A reminder to all the participants that you may please press star and 1 to ask questions at this time. The next question is from the line of from Prosperity Wealth Management Private Limited. Please go ahead. Thank you for the follow-up opportunity. My question is regarding the segment, particularly how do you see the competition intensity from China?

51:19 Thank you for the question. So when you tell about the competition from China, as we can already see that in all of the public tenders and for all the developers and even for specific optics when they are taken up by countries like Japan and Europe, they have a very clear mandate that the project and the molecule development should not have any equipment purchased from the countries like China. So yes, I think this suffices your question. Okay. Got your point. So my second question is regarding the ongoing CapEx that we are planning to commission by Q4, Q5, Q7. So what is the peak annual revenue potential from this new capacity, if you would talk about the PTA segment particularly? Sure.

52:07 Can you repeat the question? My question regarding the current CapEx that we are planning to commission by Q4, if I can just tell what is the peak revenue potential from this additional capacity? See, we are putting the CapEx in the business as per our ambitious plan to have over 65% to 75% manufacturing by year 2028, 2029 and maybe twenty twenty 'twenty, out of the total sales while maintaining 55% to 60% growth. So with this transition, we are putting the CapEx. So you so our numbers and growth will be is planned to be in line what we've been doing. And while planning this kind of growth, we are willing to have the transitions more towards manufacturing.

52:57 So these numbers are to be considered accordingly. But broadly, I can give you the CapEx can see the CapEx what we're putting for the PPS side. If we run the plant in full capacity, we should be able to do the manufacturing sales of more than INR 2,500 crores. Okay. Understood. Understood. Sir, just last question, if I may ask, with regards to the base CapEx that we're doing. So what is the revenue potential for gigawatt? I'm really sorry, I could not got your questions. Can you please repeat? I just want to know what is the revenue that we are looking from base segment for gigawatt hour? You are asking the revenue year wise?

53:44 No, no. I'm saying the revenue, like the 2.5 gigawatt base, we are doing the CapEx. So what is the revenue per gigawatt hour from base? For a 100% revenue utilization, okay, per gigawatt hour, if you're asking, then it will be on the scale of INR 1,000 crores to INR 1,100 crores of revenue and per gigawatt hour. And this will also be agnostic to the scope of the kind of project that is there. Okay. And out of this 2.5 gigawatt, we are planning for 40% to 45% utilization, like you mentioned, for next year? Yes.

54:31 Okay. Okay, sir. Thank you so much. Thank you. Thank you. Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference over to Mr. Charlene Seth for closing comments. Thank you, and over to you, sir. Thank you, everyone, for your valuable questions and for your continued interest in ADVAIT Energy Transitions. As we move forward, our focus remains on building a stronger, more diversified business, executing with discipline and ensuring that the opportunities we pursue translate into sustainable growth and long term value creation of shareholders. We understand that the trust our shareholders place in us, and we remain committed to creating a value through consistent execution, prudent capital allocation and clear long term reasons.

55:27 For any further queries or information, please feel free to contact with our Investor Relationship Advisor, Concept PR. Thank you once again for your continued confidence and support. Have a good day, and thank you, Concept PR team. Thank you, members of the management. Ladies and gentlemen, on behalf of Advait Energy Transitions Limited and Concept Investor Relations, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.