GK Energy (NSE:GKENERGY) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to GK Energy Limited Q1 and FY 'twenty seven earning conference call hosted by Churchgate Advisory Private Limited. As a reminder, all participant line will be in the listen only mode, and there will be an opportunity for you to ask question after the presentation conclude. I now hand the conference over to Mr. Gopal Kabra, chairman, MD, and CEO of GK Energy Limited India. Thank you, and over to you, sir. Thank you very much, and very warm good afternoon to everyone. I, Gopal Kaza, chairman managing director of GK Energy, welcomes you, everyone.

0:47 I'm very glad that all of you have joined us today for our investor call. Along with me, Mr. Sunil Malu, our CFO, is also present. We hope you all had chance to go through our investor presentation uploaded on the stock exchange. We will share our key operating and financial highlights for the quarter ended 06/30/2026. We have started FR2027 on a positive note, delivering our highest ever quarterly revenue. Stand alone revenue from our operation increased by 71.1% year on year to rupees $50.05 crores compared to Rs. $2.95 crore in quarter one of FY twenty twenty six.

1:39 EBITDA increased by 47.7% to Rs. 86.1 crore with an EBITDA margin of 17.05%. PAT profit after tax increased by 61.6% to Rs. 59.7 crore compared to 36.9 crores in the same quarter last year. Our order book as on June 2026, including order received post June, was rupees $5.41 crores, providing visibility for execution over coming quarter. On the operational front, we installed 24,118 systems during quarter one FY twenty seven, more than double the 10,827 systems installed in the quarter one last year, with commissioning of 109 megawatts of renewable energy capacity during the quarter.

2:43 With this, our cumulative installation base has crossed one lakh 64,500 systems and seven twenty six megawatt of renewable energy capacity in decentralized way. Today, our network cover more than 7,500 villages and supported by workforce of over 1,500 people and our own logistic fleet of 40 plus vehicles. Our growth strategy continues to build around technology defined low CapEx model supported by our OEM ODM manufacturing ecosystem. We control critical raw material and work with multiple manufacturing partners, allowing us to maintain quality, supply availability, and cost efficiency while keeping fixed capital requirement relatively low.

3:36 Our decentralized warehousing, logistics, and field execution network further enable us to scale across geography without requiring proportionate investment in fixed infrastructure. From the market developing perspective, we continue to depend on our presence across existing state while building the GK Energy brand across rural and residential market, village, block level, tier two, and tier three cities. Our presence across more than 7,500 village built over eighteen year provided us with a direct access to communities where renewable energy adoption is increasing day by day.

4:24 We are also leveraging our network, our established ruler present to expand our offering across solar pump, rooftop solar, and other solutions. Our immediate focus remain on trending our solar agriculture pumping business and scaling up rooftop with the similar pace to achieve the better market share. Our long term vision is to enter into the... Across the other available opportunities like BEST and hybrid energy solution. Looking ahead, our objective is to build GK Energy into one of the India's most trusted renewable energy brand.

5:13 We intend to deep... Deepen our presence in existing market, enter new geographies in coming future as and when required, while maintaining execution discipline and following our low CapEx approach. Our long term vision, as we have shared, is to reach 1,000,000 houses with our system placed with them as well as the 1,000,000,000 enterprise in decentralized renewable energy. With this, I would like to thank everyone for joining us today. Now I request the coordinator to open the floor for the question and answer. Thank you. Thank you so much, sir. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch tone telephone.

6:04 If you wish to remove yourself from the question queue, you may press 2. Participants are request to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question comes from the line of Bhagwat with Prosperity Wealth Management. Congratulations on the strong quarter results. My question is on the order book. The current individual order book of around $5.41 crores seems relatively modest compared to the company's growth aspirations. Do you share your expectations for the order inflow over the remaining quarters of FY 'twenty seven? And based on the order pipeline, are we confident of achieving our growth guidance of doubling revenue in FY seven?

6:55 Thank you, Bhagwaji. So this order book is as on today, right? So we are in just first week of the August, and we are very confident. If you see what we have told, we have delivered, and we are trying to deliver more better way. Looking towards the current market scenario with the securing of this order book, and we will be expecting some more order in coming time. Phase six of has been just got submitted, and we are expecting some order there as well. And for the phase seven of is also there in the pipeline. So this will enable us to achieve what we have said. In h one as... And h two, we are expecting from the PMGosu two point o as well as the rooftop systems.

7:43 Okay. So we... So the growth guidance will be in touch of 2527 of w. Right? We are definitely on that track only. Okay. Okay. So my second question is if you could comment on the reason for the slight margin completion in Q1 and what EBITDA margin range should we expect for the full year FY one? And is the historical EBITDA of 19% to 40% margin still sustainable? See, as I have given the guidance when we had a last phone call also, we said that we... Our path will be remaining two digit, and that is that. And I have already given the indication that we may expect little bit down in the last phone call. So whatever we have said is getting maintained.

8:38 Okay. And we do expect to maintain something like that. Yeah. Yeah. We are expecting profit to remain in the same line what is been achieved in the quarter one. Okay. Okay. Thank you for that. And if I may ask one more last question. So with EMP 2.0 expected to rise in each case of Solar Farm resolutions, could you please update the current status of this scheme? And when do you expect the patient must to be released? See, as I've already mentioned last call also, quarter three is what I have indicated, and I'm very much clear that it will come by quarter three. As of now, with what the fact and figure I know, if any update is there, we will update, you know, as and when it will come to us.

9:28 Okay. Is this further starting in 15% getting replaced? So despite that, are we confident of doubling this revenue from the other streams? No. We have considered in q three only. In my last call also, I said that, you know, PM Kusum two point o will come in q three, not before. Yes. So it is Yes. Well planned, and it is going as per that. Okay. That's right. But I'm just trying to be in this scenario where it get delayed as for our expectations. Get delayed from Q3. Still, are we... This are confident that some other things we can cover up the guidance? See, it's not, like, only about the GK Energy's business. The PM Kusum two point o is required for the nation, and it's required for everyone. So I'm not thinking that it won't come. As a businessman, we always remain very positive.

10:25 But if it... In case what you are saying, yes, there would be slight impact. But in that position, we will accelerate our rooftop business to mitigate the gap. Okay. Okay. Thank you for your answer. It's clarifying questions, and the other is for the... For this purpose. Thank you. Our next question comes from the line of Ashish Ogdenlauer with Invest Investment. Please go ahead. Yeah. Hi, Gupalji. Just wanted to check on PM Gusum again. There were certain comments from the minister in the in the assembly that the money basically has been in several departments of the government now.

11:22 So I think there was a press release also to that effect that it's being distributed to different ministries and through that it will come. So what is the exact status? Because you just said that Q3, you are expecting Qsum three to be released by the government that way. Ashish, if you look towards that press release, it is a answer to some of the question has been raised in the legislative assembly. It wasn't related to directly on the premium Kusum or the thing. So that question has been answered by that press release. So I don't consider that press release have the... Any direct relation with PM Qusum two point o. So if you just see the press release once again, you will understand what I'm trying to say.

12:09 That... This is... That press release came in the answer of the one of the legislative assembly question reply. So... But as of that mentioned key, the amount has been disbursed to various industries, and through that, it it will come on. But it was not clear as to how this is going to entirely take shape. So you are still saying that whatever is the plan, maybe next two year, three year, five year plan that is going to come, that will be announced in... By q three as such by the government, some form of shape that will take. See, that overall what was, you know, clarification came, it was all scheme to get the ruler development. So there was various scheme has been discussing how the oral ruler energy development can take place. So we are really very positive, very much clear. Yes. We are going to have the same business line for the coming decade even, I would say, because this is the area PM Kusum two point o and the PM Kusum two, which has been very well clear that only solar pump is successful model.

13:17 Remaining model are still underperforming. The performing model with the proven fact is going to help. Right. But, sir, any indications as to what the quantum or whatever? I mean, you've been close to the Maharashtra government as well as the center. Any any sense on how is it going to be, or should we wait only? That is the only option that is best. Because there are a lot of Oh, I think we have slow for every every company depends on that, and we are seeing lackluster performance by few of the companies in the sector because of the delays, basically. Yeah. Maybe you being in Maharashtra, probably, that will help, but otherwise, it's not been as great for other companies. Ashish, first of all, the country's 70% solar pump business done in the Maharashtra, and so it is fact for everyone.

14:12 And second point, the representation from the industry and the SMS has been already given, and every state have one maximum quantum to be taken under PM two point o. So we are expecting the much more bigger volume multiplied numbers than PM two point o. Means... I'm gonna say one point o shall be the multi application number in two point o. Great. Sure, sir. Hopefully, things fall in place again on the... For the sector on the base. Thank you. Thank you. Our next question comes from the line of Aro with, Tynam Capital. Please go ahead.

15:00 Yes. So firstly, congratulations on the successful quarter. I just wanted to highlight the management recently said that they are targeting approximately 3,000 crores in revenue. Compared to the quarter, it is just, I think, $515. So how do you plan out to achieve that number in the next three quarters? See, if you see the growth trajectory in last couple of years, you will see that quarter one always remain 15% to 20% of our annual volume. And looking towards that growth trajectory, we are on track because quarter one is always lowest in term of the business, and the maximum business come in the h two, and more specifically, '4.

15:52 So quarter four goes around 35 to 40% of the business in some of the years. So this is what the scenario will continue. So we are expecting and able to reach to the given set targets. So, sir, for the remaining quarters, are you expecting the same year on year growth? Like, this quarter, it was 70%. So are you expecting the same quarter quarter growth? It will... So ideally, plus minus would be there, but, yes, we are expecting a good growth. Okay. Thank you so much for answering the question. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1.

16:40 Our next question comes from the line of from Sapphire Capital. Please go ahead. Yeah. Hello, ma'am.. Hello? Yes. Yes. Hello, ma'am., your voice is very low. Is this clear now? Yes. It's clear. Yeah. Hello. Sorry for the interruption. Just one question. So you mentioned that our prompt volume grew close to double this quarter, while the revenues have grown close to 55%. Any sort of discrepancies we're seeing in the realizations being lower due to increased competition? Just some color on that. Yeah.

17:29 See, number wise growth is there as you have already corrected. Yes. Realization has been low per pump, but the overall volume is growing up. My three So going for... Yeah. Hello. Yeah. Going forward, we see these realizations to be still muted with the new schemes coming in or since the demand is gonna see a rise again. We see the realization kind of landing back up. How how are you picturing the growth for this year in terms of volume and in terms of realization?, can you repeat your question, please? Yeah. Hello. Is this better? Hello? Yes. Please go ahead. Yeah. So ahead. Now now with the new teams kind of coming in the p n custom, we are expecting the two point o.

18:20 The design would probably see a much bigger hike going forward. So are are we expecting the realizations to also inch up, or we are expecting them to stay stable or maybe even go lower because of the increased competition? See, as a businessman, yes, we want that the realization shall go up. And with the practical approach, I feel the realization will remain the same what it is Mhmm. Unless... Until something happened drastically. So that is unknown thing, so we can't answer it right now. And looking towards market scenario, yes, realization shall remain the same. This is what my expectation. Yes.

19:06 Okay. So the majority of the growth push will come from us increasing the volume going forward? Yes. Increasing the volume as well as the price variation may come if specification get changed in PM two point o. So it's Got it. Got relatively depend how the specification get differ. Got it. Okay. Yeah. That is it from my side. Thank you. Thank you. Next question comes from the line of Harshil Solanki with Equity Capital. Please go ahead. Hi, sir. Good afternoon. Sorry. Three questions. First is you said, Kutum two, the work should start by q three.

19:51 So I was assuming that there will be a two two, three month lag before the work starts and the scheme is announced. So should we assume that the announcement is pretty soon if the work has to start by q three, if you can throw some light on this part. Harshal, the... Kusum to... As I've said, quarter three. So, definitely, I'm expecting the end of the quarter three should start. As of now, I'm having that, you know, understanding. These are, would say, right now for that. And it has to get started because if it is get delayed, then overall scheme will get impact. So I don't think so it will get further delay. It will be going to start in quarter three.

20:41 Okay. So the announcement may come by September and the world starts by end of the quarter? Yes. I'm expecting that only. Okay. And the second is if you can help me with the, like, the... Of the revenue in terms of solar pumps and rooftop and the volumes also of that 24,000 systems, it includes both. Right? Rooftop and pumps. I wanted the breakup of the two. Rooftop has just started for us. So it is around 5% is rooftop and the 95% pump. But when I'm comparing my order book, so I have a 20% order book from the rooftop and 80% from the pump. So it's clear indication that, yes, the rooftop is also getting picked up and generating revenue... Going to generate a revenue for the company.

21:36 Okay. Got it. And and the phase six, are you seeing any implemented realizations or the things are continuing to remain the same? As an earlier answer, I expect that... My wish is the realization shall increase more. Price shall increase more. But practically, shall remain the same, I think so. Still, the price is... Has been has been not open, so I cannot comment on that what will be there. Okay. Understood. Yeah. Thank you so much for answering your question. Thank you so much. Next question comes from the line of Bhagwat. A follow-up question from Bhagwat with Prosperity Wealth Management. Please go ahead.

22:22 Thank you for the follow-up opportunity. So my question is regarding our vision of reaching $1,000,000,000 revenue by 2013. So how do you expect the business model to evolve? Will the company continue with the asset life strategy? Or we expect backward integration to manufacturing to support this year? See, backward integration, I'm not very clear that we would like to have the much more backward integration thing because the product, what we are having, there are lots of manufacture already established there in the market. They have been the huge CapEx, and we are leveraging the available ideal capacity in the country. So that is giving us why we are able to build our margin very strongly. So that would be the part on the backward integration of the answer... Question what you have said. And definitely, are looking towards a certain future opportunities that is in pipeline.

23:17 So I think we will be able to give the... You know, to the... You all, you people, my shareholder, everyone, when the right time will come. So it is under consideration and the thinking right now. So we will be able to give the certain clarity in coming time. How the overall planning is... Will be there with the add on the products. Okay. And do you expect would be the go to achieve this target or in August since that you expect to do the major consideration? Bagoji, definitely PM PM Kusum is going to be the one of the driving factor, but we are not targeting only one driving factor. So we are having the multiple boxes.

24:04 These all things will have the driving force to become a $1,000,000,000 enterprise. So we are not going to rely only on one product and one fee. So we are going to have the mark... You know, product mix to achieve set target. So in case if one of the products won't perform by two zero three zero, so other pro... Other product will definitely deliver to become a $1,000,000,000 enterprise. Okay. Okay. Thank you so much for that, sir. Thank you. Our next question comes from the line of Smith Gala with RSPN Venture. Please go ahead. Yeah. Thank you for the question. Just one question from my side. We have seen a drastic reduction in the interest expense.

24:51 So how has the interest expense reduced from 11 crore in March twenty sixth quarter to 5 crore now? So first of all, we were having the surplus received cash available with the company because we have the very good receivables done in the financial year ending in the March. That's the one point. And we are right now raise the fund to the IPO for the working capital. So that is also supporting us for the not having the bank debt. We have utilized the fundraise by the IPO to support our working capital. So this will stay in this range or it will reduce even further going forward?

25:42 It shall stay in this range. Okay. Thank you. Thank you. Reminder to all the participant, if you wish to ask a question, you may press star and 1. Thank you so much, ladies and gentlemen. As there are no further questions from the participant, I now hand the conference over to Mr. Gopal Kabruch, Chairman, MD and CEO of GK Energy Limited for the closing remarks. Thank you and over to you, sir.

26:29 Thank you. I would like to thank everyone for joining on the call. I hope we have been able to respond to you all of the question adequately. For any further information, we request you to please get in touch with our investor relations team, or you can directly contact the company's team as mentioned in the presentation. I wish everyone shall stay safe, stay healthy. Thank you. Thank you, everyone, one second to join Thank you so much, sir. Ladies and gentlemen, on behalf of Builder New Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.