Emmvee Photovoltaic Power (NSE:EMMVEE) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Emmvee Photovoltaic Power Limited Q2 FY 'twenty seven Earnings Conference Call hosted by Rati Capital. 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. Please note that this conference is being recorded. Please note that anything said on this call that reflects the outlook towards the future, which can be construed as a forward looking statement, must be viewed in conjunction with the risk that the company faces. A copy of the disclosure is available on the Investor Relations section of the website as well as on the stock exchanges.

0:50 Kindly also note that the audio of the earning call is a corporate material of Emmvee Limited and cannot be copied, rebroadcasted, or attributed in the PR media without specific and written consent of the company. To give you an in-depth understanding of the company and answers to all your queries, we have from the management side today Mr. Manjunathar, Devi, Chairman and Managing Director Mr. Suhas Tonti Manjunathar, President and CEO Mr. Pawan Kumar Jain, Chief Financial Officer. I now hand the conference over to Mr. Manjunathar. Thank you, and over to you, sir. Thank you. Good evening, everyone. I extend a warm welcome to all our investors, analysts and the shareholders joining us in this Q2 and H1 financial year 'twenty seven earnings conference call.

1:45 I am pleased to share that Emmvee has delivered its strongest half yearly financial performance to date. For the first half of financial year twenty twenty seven, our revenue from operations grew by 45% year on year to INR 3,132 crores. EBITDA increased by 47% to 2,105 crores. The profit after tax grew by 79% to INR $7.62 crores. We have maintained EBITDA margins of approximately 35%, demonstrating the strength and the consistency of our operating performance. These results reflect the manufacturing capabilities we have developed over nearly two decades. Our continued focus on technology and product reliability and the trust we have built with our customers.

2:37 Importantly, our performance has remained consistent with the guidance we provided, even as the industry through changes in the implementation of ALLM regulations and the geopolitical issues. Our focus has remained on executing our business plans, strengthening our manufacturing capabilities and delivering sustainable growth. Let me now share our perspective on the Indian solar industry. Indian solar sector continued to experience significant growth supported by increasing electricity demand, renewable energy commitment and the continued development of solar project across multiple segments. The first half of calendar year 'twenty seven has witnessed India's highest ever solar installation for six months period.

3:30 Based on the current installation trajectory, domestic model demand is running a pace that could translate into approximately 64% year on year growth for this year. This is a significant development for the domestic manufacturing industry. We are seeing demand across utility scale projects, commercial, industrial installation, rooftop solar and the government supported programs. In addition, the growing adoption of hybrid round the clock and firm renewable energy projects is creating a more model demand as the ACDC ratios increase in these solar deployments. As India's energy requirement grow, we expect solar to continue playing an increasingly important role in the country's electricity generation mix.

4:22 At the same time, the domestic manufacturing ecosystem is evolving. The implementation of ALM2 of our solar cell is an important step towards strengthening India's domestic manufacturing capabilities. While certain transitional provisions have been introduced, the broader direction of the policy continue to support greater domestic value addition and deeper integration across solar manufacturing supply chain. Emmvee is well positioned to participate in the transition supported by our existing top line manufacturing capabilities, established model manufacturing operations and continued investment in integration. Our inclusion in GETOLAR, top line sales under ALLM leads to further strengthen our ability to serve evolving customer requirement.

5:11 Coming to our ongoing expansion, our six gigawatt integrated top down cell and module manufacturing project remain on track. We expect the commissioning of the module manufacturing facility by December, followed by cell manufacturing facility by March 27. Upon completion of our total installed manufacturing capacity will increase to approximately 16.3 gigawatts of modules and 8.9 gigawatts of cells. An important aspect of our manufacturing strategy is how these capacities have been designed to operate together. Cell and module manufacturing have different operating characteristics. Cell manufacturing can achieve significantly higher utilization level, whereas model manufacturing requires greater flexibility to accommodate different product configuration, customer specification and production schedules.

6:04 When we consider the maximum achievable production for both the operations, our 16.3 gigawatt of module capacity and 8.9 gigawatt of cell capacity are designed to deliver broadly equal and annual output. This is the central to our integrated manufacturing strategy. Our objective is to optimize the utilization of our manufacturing and strengthening our cost competitiveness. We believe that manufacturing integration must be evaluated not simply by installing capacity, but by the ability of different stages of production to operate efficiently together. Beyond our ongoing expansion, we are also progressing with our plans for backward integration into ingot and wafer manufacturing.

6:56 Our current plan envisage a nine gigawatt of facility developed in two phases of five gigawatt and four gigawatt, aligned with our future cell manufacturing requirement. The timing of this investment will be guided by the regulatory development, particularly LLM Disk three prevailing market condition and long term economic viability. Our approach to expansion remains disciplined. We believe the next phase of growth in Indian solar manufacturing will increasingly depend on technological capabilities, manufacturing efficiency, product reliability and supply chain integration. These are areas in which we are consistently investing invested over the years. Our collaboration with leading research institutions, our experience in top line manufacturing and our focus on product quality provide a strong foundation for the future.

7:52 As we enter the second half of financial 2027, our priorities remain clear. We will continue to execute our expansion plan, strengthen our manufacturing capabilities, maintain operating discipline and build our relationships with customers. We are encouraged by the growth opportunities in India, solar market and remain committed to creating sustainable long term value through technology, quality and responsible investment. I would like to thank our employees, customers, suppliers, financial institutions, shareholders and all our stakeholders to for their continued support and confidence in EMMVEE. With that, I will hand over to Suwad, who will take you through the our financial and operational performance in a greater detail. Thank you.

8:43 Thank you, Chairman. Good evening, everyone, and thank you for joining us today. As the Chairman highlighted, H1 FY twenty twenty seven has been our strongest half yearly performance to date. What is particularly increasing is not only the growth we have delivered, but also the consistency of our operating performance and quality of our earnings. We have maintained strong profitability, improved cash generation and continued to execute our business plans while investing in the next phase of manufacturing expansion. Let me take you through our financial and operational performance. Starting with the second quarter, revenue from operations for Q2 FY 'twenty seven stood at $15.76 crore, representing growth of 39% year on EBITDA increased by 39% to INR $5.57 crore, while our EBITDA margins remained strong at approximately 35.3%.

9:44 Profit after tax increased by 61% year on year to INR $3.82 crores with PAT margins improving to approximately 24% compared with 21% in the corresponding quarter last year. Our performance remained stable sequentially with revenues and EBITDA broadly in line with the previous quarter turning to the first half performance. Revenue from operations grew by 45% year on year to INR 3,132 crore. EBITDA increased by 47% to INR $110.05 crore, while our EBITDA margins remained at approximately 35%. Profit after tax grew by 79% to INR $7.62 crore. These numbers demonstrate the consistent growth in our business and our ability to maintain operating profitability as we scale. I would particularly like to highlight the quality of our earnings during the first half.

10:43 Our EBITDA growth has remained broadly in line with the revenue growth, reflecting the consistency of our operating margins. At the same time, profit after tax has grown significantly faster than revenue, supported by improved financial efficiency and substantial reduction in finance cost. Finance cost during Q2 stood at approximately INR 9.5 crores as compared with INR 55.2 crores in the corresponding quarter last year. This reflects the strengthening of our balance sheet following the deployment of IPO process towards debt repayment. We have also seen a meaningful improvement in our operating cash generation. Net cash generated from the operating activities increased to approximately INR $4.10 crores in H1 of FY 'twenty seven compared to INR 121 crores in H1 of FY twenty twenty six.

11:33 This represents an improvement of approximately 239% year on year. For us, this is an important indicator as we continue to invest in expanding our manufacturing capabilities. Our focus is not only on growing revenue and profitability, but also on converting operating performance into cash generation and maintaining financial discipline. Moving to our manufacturing operations. During Q2 FY 'twenty seven, solar module production increased by approximately 40% year on year to nine fifty two megawatt compared with six eighty two megawatt in the corresponding quarter last year. Solar cell production increased by approximately 61% to five thirteen megawatt compared with three nineteen megawatt in Q2 FY 'twenty six.

12:25 Our cell manufacturing operations continue to perform strongly, achieving 89% effective capacity utilization during the quarter. This reflects the operational capabilities we have established in top quartile manufacturing and the continued improvement in production efficiency. Module capacity utilization stood at approximately 44%. As the Chairman explained, cell and module manufacturing have different operating characteristics and achievable utilization levels. Our existing module manufacturing capacity provides us with significant flexibility to accommodate different product specifications and customer requirements while supporting future volume growth. Our focus remains on optimizing production across our facilities, improving operational efficiency and maintaining the product quality and reliability that our customers expect from Emmvee.

13:22 Coming to our order book. As of 09/30/2026, our order book stood at approximately 10.4 gigawatt, supported by new order inflows of approximately 1.5 gigawatt during the quarter. Our order book continues to be diversified across independent power producers, commercial and industrial customers and other market segments. We remain focused on building long term customer relationships and maintaining a healthy balance between order inflows, manufacturing capabilities and delivery commitments. An important part of our commercial strategy is product differentiation. We believe that solar modules should not be evaluated solely on price.

14:08 Product quality, energy yield, long term reliability and warranty performance are important considerations for customers making investments in assets expected to operate for twenty five to thirty years. Our experience in manufacturing and continue and our continued investment in technology and quality remains central to our customer proposition. Turning to our balance sheet. As of 09/30/2026, our net debt to equity ratio stood at approximately 0.12x. During the first half, we continued to invest significantly in our ongoing manufacturing expansion. Our balance sheet reflects this investment cycle, while our net leverage remains relatively low. We continue to place considerable emphasis on working capital management, particularly inventory planning, receivables and cash generation.

15:01 As our operations scale, we are focused on ensuring that our working capital requirements remain aligned with production schedules and customer deliveries. From a capital allocation perspective, our priority is to complete the ongoing integrated expansion efficiently and ensure that new manufacturing assets contribute to sustainable profitability and returns. Looking ahead, our priorities for the remainder of FY 'twenty seven remain straightforward. First, we will continue to maintain operating discipline and focus on manufacturing efficiency across our existing facilities. Second, we will work towards the timely commissioning and ramp up of our new integrated manufacturing Third, we will continue to strengthen our customer relationship, execute our order book and improve our product and technology capabilities.

15:54 And finally, we will remain focused on cash generation, working capital efficiency and maintaining an appropriate balance between growth investments and financial strength. India's solar manufacturing industry is entering an important phase of growth and integration. We believe our manufacturing experience established top card capabilities and focus on quality and reliability provide us with a strong foundation to participate in this opportunity. Our objective is to translate this opportunity into consistent execution, profitable growth and sustainable returns on our investments. With that, I would like to thank everyone for joining us today. We can now open the floor for questions. Thank you. Thank you. We will now begin the question and answer session.

16:54 The first question comes from the line of Apoorva Bhattu with IAFL Capital. Congrats on another strong quarter. In your presentation, you have mentioned that the plan for sixteen hour integrated sales module capacity is progressing well. Can you give us some update on that? Have you awarded tenders for the machines and all? What's the progress?

17:39 By when should we expect the first sales out from there? Yes, absolutely. So the update on the new expansion is going extremely well. I think we had long ordered all the equipments for the project. Construction is going at full swing. Pretty much the out of the hard cost, pretty much all items, critical items have already been ordered other than the small ongoing items that will be there. The module line, as Chairman mentioned in the speech that it will be ready by December 26, whereas sell line by March 27. So you should expect the first sell out in that month, like publishing in that month.

18:25 So first sell out maybe like... Yes. I'd like to show us, so see, already all the equipments, we already already it is going on and more likely we are planning to start shipping the equipments from end of this month. So by now, the equipment will be in place. Five Sure, sir. Understood. And so the CapEx that you have mentioned on the presentation, I think it's about INR 55,000,000,000, if I'm not wrong, for INR 5,000,000,000 INR 60 So that would be about, what, 900... 9,000,000,000 odd rupees per gigawatt. Whereas, sir, I think, off late, there has been a decline in CapEx costs significantly, especially for cell equipment. What... Why why is there such a large divergence? Because the latest... I mean, the numbers that we get from the industry is, say, closer to 5 to 6,000,000,000 per gigawatt.

19:19 It's almost 50% higher than that. So this... What we have said is the integrated of cell and model. So you you are also understanding same. So, Suraj, that that 5,500 crores is for both cell cell and module of six gigawatt each, And it includes and where the hard cost is around INR 4,600 crores. And the remaining cost is for your interest during construction, contingency, budget money for working capital for soft cost, which we have also, like, you know, detailed out in the, like, you know, presentation as well as in the prospects. I mean, the 100 is probably margin money for working capital and IBC. Okay. Okay. Yeah.

20:04 So I was just adding on to the last question of the CapEx cost. I was mentioning that our experience of manufacturing sales for the last two years of top one sales and reaching utilization of 89% in the last quarter. I think manufacturing, the nuances that require to build a cell manufacturing plant behind it is something that we have like carefully planned out, including our choice of equipments as well as the way the plant is designed to build, including our operational efficiencies to bring down increased automation as well as bringing down the we've gone over in the previous quarter calls, bringing down the silver consumption and these things.

20:51 So it's a holistic plant project. Understood. And can you also please enumerate if we have received any sort of incentive from the state government for setting up these capacities? We understand that quite a few companies are getting some further benefits, like CapEx subsidy or some sort of a rebate or... Yes. There have been like incentives that we are eligible for and we are getting from the state government, both in this project as well in the upcoming project as well as the earlier cell manufacturing as well. We have also declared that we have received like capital subsidy for our earlier project from the state government to the tune of 25%.

21:48 And the same like similar subsidies are there expected in the upcoming projects as well. So yes, although we don't like model it in our guidance or our projections, these are something that the company leaves us an upside. Okay. And sir, last question, if you can split that INR 5,500 crores CapEx between sensor modules, how much should we think? I think what we have communicated is INR 4,600 crores of the ad cost out of 5,500 crores of, like, total cost. Sales and... Yeah.

22:33 We can get back to you, Apologie, on the details of the office. We have noted your... Sorry, sir. Okay. Thank you so much. Thank you. Next question comes from the line of Deepak Krishnan with Kotak Institutional Securities. Please go ahead. Oh, hi, sir. Am I audible? Yes. Maybe just wanted to check with you, you know, given the run rate that CEL is already running at 89% utilization. Maybe what is sort of the production number for the full year that you're targeting both at module and cell levels for FY 'twenty seven? Sir, yes, cell is running at 89%, which is quite strong. And more importantly, what has also been one achievement, which we have highlighted that we started G12 cell manufacturing last quarter. So with that, our also our production levels have increased, right? So with that, I think we should continue to see these utilization rates, which is close to 90% for the remaining couple of remaining two quarters.

23:44 And on the module front, where do you see utilizations stabilizing it? The mod... Module side brings in a lot of flexibility for the... For for us because it... You know, like, we we can choose... Like, we typically say that the max utilization for module is around 60% approximately, but it brings a lot of flexibility for us to choose the market opportunistically whether to utilize that fully or whether to prioritize some merchant sales. Sure. And if I look at the finished goods or if I look the overall inventory of closer to, I think, about INR 1,800 crores or INR 1,900 crores, how much of finished goods inventory would be sort of be sitting at, which could be, you know, that could sort of help earnings?

24:41 Yes.. So, yeah, it is a total increase around 1,884 crores. Out of that, around $8.60 crore is your finished goods. And the rest is raw material and some other storage and space. Okay. And the sharp jump in other current assets, that's largely advances to capital equipment companies. Is that the right understanding? Yes. Yes. So this is a CapEx also mostly for our new CapEx project. The market is mostly for that. Sure. And maybe just on your guidance, you sort of stick to that INR2200 crores to INR2400 crores, if we understand that's correct? I think considering the first two quarters of our yearly projection that we have of INR1000 crores, we can definitely achieve the upper part of the guidance.

25:35 Sure. And maybe just on the cell plant, I think you've sort of indicated closer to March, but where are we in terms of, you know, installation of balance of plant for cell? Are we nearly sort of done in that end? Or what is sort of the progress over there? Yes. Things will happen finally as the equipment took up happens. So as the Chairman said that the FAT is being done for the equipments and these will be brought into the facility around November. And so hookup as well as the balance of plant construction will be simultaneously going on. And most of the activities have already started at a very fast rate. Sure. And maybe just on the way we are seeing realization trends overall for both DCR, non DCR cell module, you know, spread or absolute realization, whichever you want to sort of indicate.

26:30 Could you sort of highlight that as well? So if you see all our order book is in the same line. So I don't see anything is going to be on a negative on the margin side. And as of our orders are in hand, do we have the margins what we have indicated is going to be continue. Sure. So you expect the same momentum to sort of continue? Yes. Yes. Okay, sir. Those were my questions. I will sort of turn back on the queue. Thank you. Thank you, Deepak. Thank you. Next question comes from the line of Pat Manjitia with Emmett Capital. Please go ahead. Yeah. Thank you for the opportunity. Am I audible?

27:19 Yes, sir. Yeah. So my first question is on the working capital. I see creditor days have reduced from sixty four days in FY '26 to twenty five days in first half FY 'twenty seven. So any thought on that? Is it a purpose driven reduction? Or what are you thinking on it? Yes. So basically, it is all depends on how we negotiate with our vendors. So sometimes we get some better prices and we use the credit. So this is a dynamic, but yes, even we are having a large buying for raw meat and other things, so we try to optimize our procurement costs. Okay. So so that helps your COGS as well? Yeah. Absolutely. Right. Right. Okay. And the second question would be that what is the... If you would...

28:07 I know you don't give the exact number, but how has the external sales of sell, so merchant sale gone through in this quarter? Is it at the same levels of the last quarter? Or it has reduced? This quarter was broadly like partially marginally higher, but it's not too different from last quarter. Okay. Okay. Okay. And then the last question here. So the margins for the non DCR modules, what is your view on that? Is it the same as it was there before? Because in the module space, we have seen a lot of oversupply coming in. So has the margin been affected on especially those non DCR modules? That's a good question, sir. Like, I mean, if you look at the margins for non DCR, I mean, for the company, it has been broadly going to the same as what what it used to be listing. We have been very particular in the space that we operate in the demand space that we operate.

29:03 There is a product differentiation, quality differentiation, track record differentiation that is available. So... And we being a player with large experience and a good customer concentration from utility in the IPP segment. We, you know, we we are able to get a differentiation based on our product qualities. Next question comes from the line of Prasad Hasi with Spark Capital. Mr. Hassi, please go ahead. Mr. Hassi, please unmute yourself and go ahead.

29:50 Since there's no reply from the line of Mr. Hassay, we'll promote the next. That is Sudanshu from GM Financial. Please go ahead. Yes. Hello, sir. Hi. Congratulations for continued good performance. Sir, I just have three questions, sir. Mister Silancho, sorry for interrupting. We cannot hear you. You're not audible. Can you speak a little louder? Sir, we can able to hear him. Yeah. Yeah. So, like, my first question is, sir, like, renewal bidding is slow nowadays, sir. So how are you seeing your order book in FY twenty seven and '28, closing order book for this year and the next year? So that's my first question. Sure, sir. Thank you, sir. So if you see, like, you know, for us, our order book is growing at a very fast rate. We see 1.5 gigawatt of order book that is the highest ever in one quarter that we have got in this quarter.

30:45 And this is continuing to grow at a very strong rate, which I can tell you with very large confidence. And if you look at the installation today, 27 gigawatt of first calendar first half of the calendar year, have seen the AC installation, which translates to around 35 gigawatt of DC demand. So we are at a trajectory of achieving about 64% of growth year on year if you look at it on a full year basis, if the same trajectory continues. And that is a significant growth in demand that we are seeing, especially a lot also increasingly coming from other segments like C and I, rooftop, Qusum and other segments as well. Utility on a demand perspective has not come down because there has been significant projects that are there in the pipeline itself.

31:41 And since more and more projects are coming into fixed dispatch of renewable power, hybrid power hybrid projects that are coming in, it is increasing the ACDC resource that is acquiring. So the demand is, in fact, going much more and more stronger. And what we have seen in the past and learned from the past is that the tendering can always catch up, but it is the pace of installation infrastructure and the deployment that will usually take more time. This is going at a fast pace. So added to this was see there is a non tender businesses has grown substantially compared to the earlier to now. It could be anything.

32:27 Every month that was approximately it is growing more than 1.5 gigawatts to two gigawatts of the demand. In addition to whatever the tender fund is going on, plus not already tender business is going on. And if you see the and what we've seen in the market is very interesting is that we are able to get there in multi all sort of like it could be utility or C and I, R and D, rooftop or any business. The demand of the inquiries and the potential what is required by '27 and '28 is extremely high. Inquiries and the pipelines are very strong. Okay, sir. Thank you, sir. And the next question is like there's so much of industries coming out with the cell capacities and we have 40 gigawatt as of now in the country.

33:16 So this like what is your assessment that how much India will have the cell manufacturing capacity in next twelve to eighteen months? Actually for our Indian demand to achieve the present numbers of the growth of present to first half of the year are the forecasted one. We need approximately 80 to 100 gigawatt of capacity bare minimum, which is a utilization capacity. In that, even 31, what you are mentioning is that, in that already you have to remove about 16 gigawatt of the amount of work approximately. Those things has to be removed one. And also in the present capacities also know that from EMMTENA to JITOLAR is also another important factor it is going to be there. So in the even we are seeing with all the announcement and with the people who are announced that are not even coming, we are not able to see more than that capacity.

34:14 Even sometimes we see that there is going to be a shortage in that because of another added one DC to AC ratio increasing substantially. So the company truly believes that in the next couple of years, companies like us and we were established customer base as well as our growing business, we need to add further capacities to meet the demand that is growing. Okay. If you have my last question, see one of our peers has quoted the DCR module prices at INR 17. It's good to see that you're confident of maintaining margin. So just I want to understand that what are the levers we have like which will enable us to maintain this level of margin even if the prices may come down?

35:05 Thank you. Sir. So presently the market, the numbers are not in that level. It is in a better than that level. Even the numbers, whatever is going to be it is further the tenders and other things what is being quoted, it is all going to be next year or the one next year, which is going to be supply will going to be taken place. So the value addition is what is coming is if you see that even initially when we started the supplying to NDPC orders in the beginning of the last year, we are used to use the aluminum about two twenty milligrams. Today, we are about 60 sorry, silver is two twenty milligrams. Today, we are using around 60 to 65. The second advantage is going to be there is what we are having EMTINR to the GETOLAR.

35:54 GETOLAR where already we are reaching about 9.5 watt the eight watt what we used to have in the single cell format. And now it is going to be next year, it is going to be a further increase. With the value addition and other things, definitely the prices will going to be a little less, but margin can be maintained. Even if see the overall the efficiency and the manufacturing and also to the management, the cost will have a better advantage. That is only going to be passed through to the customers. Okay, sir. Thank you so much, sir. Thank you. Next question comes from the line of Dhruv Muchal with HDFC AMC. Please go ahead.

36:45 Yes, sir. Thank you so much. Sir, is it possible to split your module sales for one... For 2Q and for 1H between the category of customers? How much to... How much percentage share to utilities, to retail, to C and I that way? Yes, absolutely, sir. I mean, like I can give you a broad split. About 25% of our sales is to the markets of retail and Khusum and the remaining 75% split is with 40 institutional customers, such as both in the C and I and utility space. So like it could be like 50, 50 like 54 sorry, it could be like forty-thirty or it could be like forty five thirty five, but like, you that's that's pretty much how this looks like.

37:35 And for one inch, it will be? It's it's similar, sir. I mean, similar that 25, 75 is more important because, you know, I'll just tell you, like, some of our customers, they they also have projects in the IDP. They also have the utility. They also have projects in C and I. So depending on the delivery time lines, they choose to like take delivery to C and I order or they'll take the delivery to the IPP project. So it depends on the time lines, depends on the project schedules. So for us, the way we categorize is the institutionals, which both IPPs and the C and I and Eucliddy as well as for Indestiq. And sir, retail will include Kusum also? Yes, retail will include Kusum as well. Yes, pumps as well as Kusum C also, which is growing, which is a large much larger demand than the pump right now.

38:28 Got it. And this is this that you gave is for modules, right? Not for this is for modules? Modules only. Modules only. Whatever we do is for the other manufacturer. Next question comes from the line of Sahil Ched with Anandrati Institutional Equities. So my first question would be now with ALMM becoming applicable from December end, are we seeing more non DCR share for the third quarter, which can affect our EBITDA margin in a bit of negative way?

39:15 So good question. But actually, like if you look at it, the requirement, what is required for the Sureshwar Yojana or your DCR schemes of Khusum or other C and I segment is actually growing much faster. Today, if I have to tell you, like if the ALM is expanded until December, that means even we are seeing some of our C and I projects where deliveries we have started, where the commission might be post December because it takes time to set up, install the plant, get the connections and running and then commission the plant. So in fact, I think what you're going to see is a much similarly kind of a much stronger quarter, in fact, but moving forward. So added to Suwaz, see that the Q1 and Q2 also there is no TCR requirements still we are able to run the numbers because we already have the forecasted orders in hand. The second very important one, what we need to also I wanted to highlight is that this year, any one month, two months change or three months, whatever that has been extended, it is not going to affect too much of to the any of this thing. Reason is all the utility scale, which has been bidded as per the tender document with the DCR, they have to must task to go, whether it is irrespective of whether the DCR has been extended to June to December or not.

40:45 So that is number one. Number two, that PM Khusum as well as the Surreyazar, it is continued. Only small variation has taken place going to take place is only the C and I business, which is also because of the six month extension, it is not so easy for the people to establish and complete the entire project within five months. It is not even six months, but the extension has been given. Reason could be the for closing of financial to the PPA and the price to the customer and also to finally commissioning of the project. It's very clear you have to commission by before thirty one. So that the reality it will not too much effect on that side. Okay. Got it, sir. And sir, previously, you have guided around INR 2,400 crores of EBITDA for the whole FY 'twenty seven.

41:34 Do we still stand by that guidance? Or is there any update on that? Definitely, sir. If you see the H1 numbers and last year H1 numbers, the numbers of that difference itself, if you calculate, we can be definitely have a very comfortable position to read that numbers. Okay. And my last question would be, if I see our revenue share per customer, the revenue share from the largest customers increased to 44% in Q2 versus 19% in FY 'twenty six, if you can shed some light on that. So quarter on quarter, the revenue share keeps changing, of course, because the delivery time lines and what happen what is the distinct that will always be there. This is a ordinary course of business. So I think there is nothing much to deliberate into that.

42:26 So there is no risk in terms of credit profile for that singular customer? Absolutely not. Like I mean, if you see our module, the way module transactions happen, especially in MB, we do only with we do with some substantial down payments with every order. And payments are either done before the dispatch of material from our factory or it is done with backed by LC. So there is credit profile or anything that usually does not come into the case. And in fact, it's a very healthy way of doing business. Got it, sir. And then last question would be that there has been a significant decrease in other expense sequentially.

43:13 Is there any individual expense with one off expense which has led to this decrease? No, there are multiple ways operational efficiency has been brought in like in all aspects. One of the examples is power, for example, is something that we have gone more and more into open access power, looking at substituting with the normal power. So which so you can see in our presentation also 100% of the power we utilized in the last quarter is with renewable energy. So which reduces the cost drastically. So this is one example. So like that in every department does anything. Pawan would like to add 100 basis in the product line. Yes. So other than the cost optimization, this time, we have some ForEx gain also, which is relating to the cost last time.

44:00 So this is done on the license. So that also is making a difference for other expenses coming low. And in our cell manufacturing, we've added automatic guided vehicles, which reduce the people that are required to run the lines. So there's a more expensive than being Okay. So we can expect similar level of other expenses going ahead too. Yes. Right. Yeah. Until the expansion kicks in. Yes. Right. Thank you, sir. That was very helpful, and all the best. The next question comes from the line of Subramanian Yadav with SBL Life Insurance. Sir, if you can give us some color on the order book, how much would be TCR and how much would be non TCR?

44:53 And also the order inflow for this quarter seems to be largely from IPP. If you can share some detail on that also on client or TCR and non TCR? Sir, the the DCR and non DCR split of the order book is around 70% is DCR and about 30% is non DCRs. And sir, on the new inflow, the IPP, if you want to give some color on that? Yes. The new inflow from is primarily from the IPP because whatever this thing whatever for the retail and consumer market, it is mostly done on spot or with a small time line of like within thirty days kind of a delivery time lines.

45:48 Whereas for the IP piece is when it is coming with a more larger time. Maybe two or three years, kind of, I guess, two years? No. No. Delivery time lines is all within twelve... Next... Within twelve months. So if you can also say out of this order book, how much is deliverable in next one year and how much would be next two years kind of? So out of the ten thirty four gigawatt order book, we should have about like five gigawatt that is delivered, five to 5.5 gigawatt that is delivered in the next twelve to fifteen months. Okay. And sir, if you can also say how big is the G2LR market right now?

46:36 And have we converted all our lines into G2LR or still we are doing M10 and there is an exception? So right now we have converted more than 50% of our capacity to G12R. The remaining, we have some orders in hand for to complete the antenna, after which we will convert everything. And you have seen the transition of conversion for us to from antenna to G12R is not a big deal because it is our lines are designed for running to the extent of G12, which is two twenty And so it is a quick transition for us. So any line can format G12. And the incremental demand this quarter and all our inflow, everything is coming in G12R or there is a mix of other things in DCR.

47:31 In non DCR, everything just come to G12R. In DCR, there is a mix of TCR G12R and TCR. Okay. And sir, when can this industry transition to G12? Would that take enough time? As of now, look like there will be a transition to G12, at least in the coming this thing near future. Because I think in the Indian market as well as pretty much globally outside China, you see that most of the market is still on G12R because it is a more comfortable way for installation and after installation also structure cost and everything.

48:16 So that is the thing. But there are other ways that efficiencies are increasing and other things that are going on, which we will also be announcing. Okay. And if you lastly can let me know what is the mix of DTR and non DTR in our product sales this time around? And how would that move over the two quarters? Mix in our sales. In our existing sales. Yes. I think we said there is more than about 50% of our sales was DCR. And so majority was DCR at this time. And next half also the DCI component would be higher in acquisition?

49:03 Yeah, it's going to continue this quarter. Okay. Thank you very much. Thank you. Thank you. Next question comes from the line of Mohit Kumar with ICIC Securities. Please go ahead. Hi. Good good afternoon. I hope I'm audible. My question is on the DCR on the DCR order book. How much is how much is DCR sales and how much in DCR model? Is it possible to break it separately? Sorry. I mean, we we are right now not giving the split, but I can... We can share that with you or, like, you know, we can share share it after the testing.

49:54 Understood. My second question is on the open access and C and I. Given that the deadline is now the number six, are you getting inquiries for an open access C and I? And are you seeing that inquiry increasing over the last three, four months? Yes. Absolutely. Like, we have seen the open access inquiries consistently go up. Of course, in the last three months, there has been inquiries, there has been no changes at all, especially because people have geared up to do DCR in their open access and Farooq is pretty much a compulsory. So we've also seen inquiries. We've also seen we've also having deliveries execution also that has gone up for Open Access, including DCR Open Access as well.

50:47 So is it possible to bifurcate your order inflow in CY in Q2 between Open Access? Can we get some share open access, how much we can open access in Q2? Yes. I think around 4540% to 45% should be from open access. Open access C and I. And that's only for market. That's okay. Understood. Understood. Thank you. You. Very helpful, and I wish you all the best. Thank you. Thank you. Next question comes from the line of with. Please go ahead. Hi, sir. Congratulations on a good set of numbers. Just a bookkeeping question from my side.

51:36 Can you please split your capacity into monopolar and topco, your current capacity? Yeah. We have zero monopods. We have within top con from the last two years. Alright. Thank you. Next question comes from the line of Alitra Banerjee with Nomura. Congrats on a decent set of numbers. Sir, my first question is regarding this implementation of ALMM-two. So do you see any possibility of being further deferred beyond the December 2326 time line, given that the cell capacity approved under ALMM is still not sufficient to meet the entire domestic demand? Or would you expect it to be implemented in December 26?

52:29 See, I mean, like the implementation of ALM-two has actually been very less to do with the capacity that is required for the overall capacity impact because it's not supposed to be looked at cell manufacturing capacity versus your module manufacturing capacity. There's some background noise. They're not able to hear properly. Hello,? Speak... Speakers, please go ahead.

53:21 Mister, please go ahead. Yes. So am I audible? Yeah. Yes. You're audible now. Yeah. So basically, I was asking, do you see any risk of the ALM-two implementation being deferred after December 2026? Sure. We got your question. So what I was saying is that ALM-two implementation after 2026 deferment looks extremely unlikely, especially that there is significant amount of time that is given for the industry to realign. And we have seen that work on the open access side has also already started. And the government is emphasizing on looking at implementation of ALM3 for ingots and wafers. So it looks right now extremely unlikely.

54:08 And I was addressing your point on the capacity that is required to this for the implementation. What I was trying to say is that capacity of module versus capacity of cell is not the right thing to look at. Rather, it is to look at that there's a phased implementation of this ALM that is going to happen, right? Because your utility of whatever was projects that were built under until August 2025, they still have some of the some time to like get into ALM, like get into tool. So in fact, in our order book, as we told you, there's 30% of non DCR orders that we have. Many of those projects are delivered during the next year. So that is something that means there is still demand for that. But I think it's very clear that we don't probably will not see that expense.

55:05 Understood, sir. So my second question is regarding your customer share. So given that more and more new cell capacity is coming online, so what will you say are your top two, three key differentiators which will enable you to defend your wallet share of the top customers versus the upcoming new entrants in the cell manufacturing space at least or DCS space overall? Sir, it's I think for us, it's extremely clear because we are the first of our cell manufacturers in the country. So our track record of manufacturing are like experience of manufacturing and the way our efficiencies are or the product quality that is there, it is a clear differentiator and it is something that the developer community usually recognizes extremely well as they have done for modules itself, right? Today, have seen in modules how MVR consistently differentiated amongst the new capacities as well as existing capacities amongst everyone. So there have always been a few players who have been able to differentiate themselves.

56:09 Similarly, you will see in cell that is going to be much more the case. Understood. And my last question is regarding the margins. So despite the increase in raw material prices of steel and aluminum, you're still being able to defend your margins, which is commendable. So just wanted to understand now that the raw material prices are kind of moderating, do you see any positive impact of the same on your overall margin profile? So just if you could provide some color on that. Sir, I mean, usually what happens, most of the pricing, what happens is either the raw materials that are the raw material pricing, efficiency of the modules or cells and the operational efficiencies, it's a function of that when it comes to pricing. So in case like we have seen when silver was increasing, we were able to reduce the consumption of silver, which offset that this thing. And similarly, we were able to increase the transition from antenna to G12, increasing efficiency as well as like increasing the efficiency naturally as well. So these are certain things that usually gets transferred to the customers, right? Like the eventually, we have seen that these things get transferred to the customer. This is how our margin per watt peak or our ROCs are protected on a long term basis.

57:38 So good. Thanks for answering my questions. All the best for the coming quarter, and happy Diwali sir in advance. Thank you very much, Seytul. Thank you. Next question comes from the line of Prasad Hassi with Spark Capital. Please go ahead. Yes. Thank you for taking my question. Am I audible, sir? Yes, yes. You're audible, Yes. So my first question was against our module production of nine fifty two megawatt this quarter. Cell production increased significantly nearly five thirteen megawatt. So if on a production basis, if we calculate the DCR mix stood nearly 54%, significantly higher than 47% in previous quarter.

58:24 So ideally, what we expected was basically it would aid the gross margins for this quarter. However, if you look at, there was a bit moderation sequentially in gross margins. So if you can highlight what has been I mean, what has led to this? No, I think that's good observation. But the gross margins is as I was explaining in the last question that the pricing is a function of many things. One is the operational efficiency, the other is the RM cost, then the third is the efficiencies of modules increasing itself. So when you look at it, as a first so as a function of that is the pricing that comes into. So if you see that the improvement in operational efficiencies are also a function of the enterprise that we gave. So if you look overall, this is how the EBITDA is justified, protected on the unit economic basis where EBITDA per what we usually look for.

59:32 Okay. Okay. Understood, sir. Sir, again, on the production side, so our production volume for modules were largely flat sequentially, and the utilization levels were 44%, which we have been for last two, three quarters. So just wanted to get some sense on if you can guidance how the utilization improvement journey would pan out over the next two, three quarters. Sir, that's what as I explained earlier, that utilization per model can go at, like, at a maximum average of about 60%, 60%. But the flexibility of utilizing it further is something that we usually retain based on the opportunistic scenario, right? So we are very conscious on the markets that we operate, quality that we operate and the emphasis of the production schedules and the flexibility of the configuration that happens. So with that, keeping in mind, our utilizations will be broadly in the range of 45% to 60%.

1:00:43 Okay. Okay. And sir, one question was on order book. So largely now our quarterly run rate have been 1.5 gigawatt. So actually, keeping in view the upcoming capacity of six gigawatt in module, actually, we anticipated some build out in orders from this quarter itself. So in next quarter, can we see some kind of quarterly uptake in the order inflows? Certainly, we are continuing to see a quarterly uptake, but I'd like to highlight here that the order book that we have consists of orders that are required for the upcoming six gigawatt expansion as well. As I mentioned that out of our 10.4 gigawatt of order book that we have about five to 5.5 gigawatt is delivered within the next twelve to like fifteen months.

1:01:40 And it is also important to recognize that 25% of revenue share that we are getting from the retail market, which consists of Suruga, Roshna, Khusum scheme as well as small EPCs that happen. These are done mostly on a spot and ongoing basis, which is which 25% is also a significant amount. Then and also like to highlight most of the C and I orders that we get are attributable within the like within a three month period, right? So these things are something that we'll ongoingly see. So our order book is at a very healthy level that is required for the next financial year. Okay. So currently, the 10.4 gigawatt is considering the capacity additions, which we are building in next quarter?

1:02:30 Yes, yes, absolutely. In fact, in the last quarter was also consistent. Quarter is further reinforced, and this will continue to reinforce. This will continue to grow. Okay. And sir, last question was on borrowing. So we have seen nearly INR 800 crores of borrowings on our books during first half. Our finance cost, however, was on similar levels on a sequential basis. So when will I mean, in third quarter, will we see increase in finance cost? No. I mean, yes. Yes. So finance cost, if you see, because right now, this is whatever the debt drawn on, we've taken INR $8.28 crores in last quarter. So it is basically for the new expansion project. So the entire interest cost right now is getting capitalized till we commission the tail end model. So this is not having any impact on the finance cost.

1:03:23 And in fact, the reduction in the finance cost, this is because of that optimum utilization of the working capital. And also in June quarter, we have repaid around INR 55 crores, 56 crores of the whole entire loan. So that is also getting reflected this quarter. So my finance cost is even lower and lower than last quarter. Okay. So since we are capitalizing, largely the quarterly run rate will remain at similar levels. Right? Yeah. It will be till December. And then then when we'll leaving module and commissions, some amount will come in March and full amount will be start coming from quarter one of next year. Okay. Okay. Understood, sir. Yes. That's it from my side. Thank you for taking. Thank you. That was the last question on behalf of Emmvee Photovoltaic Power Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.