Advait Infratech Ltd (BSE: 543230) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Krishna Patel — Investor Relations
Shalin Sheth — Managing Director
Priyank Shah — Head of Finance and Accounting, Investor Relationship, Corporate Affairs
Analysts:
Raj — Analyst
Suruchi Parmar — Analyst
Devang — Analyst
Priyanshi Gangane — Analyst
Kushal Kasliwal — Analyst
Unidentified Participant
Amitabh Vatsya — Analyst
Chinmay Dhyani — Analyst
Gautam — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Quarter 3 FY25 conference call of Advait Energy Transitions Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference call is being recorded. I now hand the conference over to Ms. Krishna Patel. Thank you. And over to you.
Krishna Patel — Investor Relations
Thank you Yashashvi and good evening everyone. On behalf of the management, I’m pleased to welcome you all to Advait Energy Transition Limited’s earnings call to discuss the Q3FY25 financial results. Today from management side we have with us Mr. Shalin Sheth who is the Managing Director Ms. Rutvi Sheth, she’s the Head of HR and Strategic Communication. Mr. Priyam Shah is the Head of FNA IR and Corporate Affairs.
Please note a copy of disclosure is available on the investor section of the website as well as on the Stock Exchange. Anything said 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 now. With this I shall hand over the call to Shailen sir for his opening remarks.
Over to you sir. Thank you.
Shalin Sheth — Managing Director
Thank you Krishna. Good evening to everyone. We welcome you all to the first earning conference call of Ajwait Energy Transition Limited to discuss the company’s business and financial performance during the quarter and the nine months. We concluded our board meeting on 12th of February and please note that the company’s investor presentation has been uploaded on Stock Exchange for a kind per user.
This is the first call in larger interest of all Let me begin by providing a brief introduction about the company. I began my journey as an Entrepreneur in year 2010. I was initially by bringing my experience and know how of power transmission, substation systems, power generations while working with companies like Adani Power, Kalpatalu Power, working closely with India and global biggest power consultants.
From the first day of our operations we focused on working professionally and we started our company by providing products and solutions into niche fields especially focusing on bringing products and services from global market to Indian market. For the first three to four years we were a consulting and trading company and from year 2014 onwards we put our focus in manufacturing and EPC operations. Since then our motto of the company has always been to develop import substitution in terms of manufacturing and focus on bringing capacity in a suitable size and then nurturing EPC business of the same products.
With this focus we have created our Power transmission solution division. This division is taking care of various products which are now mature with four to six year of operations. Particularly we particularly every two years we are coming up with a new product in this segment as an import substitution and overall our products have very limited competition.
If I explain about the power transmission solution division, our products are manufacturing of stringing tools, emergency restoration systems, optical fiber ground wire that we call obgw, optical fiber cables and aluminum clad steel wires. We are still having two or three new products under pipeline to put them into manufacturing in coming years. We provide EPC solutions as a liveline installation of OBW for which today Adjoed is among the top three companies in India.
We also provide EPC services into RDSS solutions that is Revamped distribution systems. We are also into providing solutions for stif conductors reconducting jobs. Eventually the entire segment that we are operating is robust attributed to the boom of power transmission line equipment due to increase in power demand.
To support this demand, a lot of transmission systems and substation systems are the world start to build in coming five years which is expected to provide impetus to provide segment that we operate in. We foresee a growth momentum continue for the next five to 10 years. We have developed make in India product emergency restaurant system and successfully supply to power grid recently with objective to foray into energy transition space in the year 2023.
We forayed into new and renewable energy and aristics. With the support of government policy, a favorable global environment and participation in sustainability projects. We have started looking forward for enhancing our expertise into this domain.
Initially we started with Tanki Solutions of Green Hydrogen project for which we have already finished the first project in February 2024. We are among the very few companies to complete this small microgreen hydrogen project and accordingly we will also awarded a new project for 1 megawatt green hydrogen grid development and we hope to complete this project by 2025. We also awarded a new project of providing 50 megawatts of green hydrogen EPC network.
With this our GX2 EPC division is working full fledged and we expect it to take a big leap in coming years. Similarly, our another division in NRE business is providing solutions in solar EPC and battery storage space. We are focused on developing at least 100 megawatts worth of credential on EPC basis of which we are about to complete 30 megawatts within this month.
We are discussing more than 200 megawatts of solar EPC projects which are in pipeline now. At the same time we work on securing more B3 energy storage systems project. And we have chosen GVN Gujarat because this project offering very limited equity participation while getting the maximum benefit of the market.
So we have secured the first project of 50 megawatt on annuity basis of 12 years. At the same time our company is focused on manufacturing green hydrogen equipment. We have successfully won the PLI through SEKI for manufacturing of electrolyzers which we have received in the two different types.
The first is 100 megawatt and second is 200 megawatt. At present we are constructing a plant for manufacturing electrolyzers capacity for 300 megawatts per year. With our focus on energy transition segment, we have tied up for a technology with one of the advanced fuel cell developed by one of the Norwegian companies.
The manufacturing of advanced fuel cell system will be likely to commence by year 2026 27. Initially it will be through assembly routes which will help manual assembly production and then gradually it will move to automatic line. We are looking forward a heavy duty commercial vehicle segment along with marine segment for supplying the fuel cell solutions.
We look forward in in becoming one of the renowned company in NRE segment in India and at global scale. To help you understand the division wise breakup Advait’s each division comprises of about 90% of the revenue. As of looking forward, we believe that we’ll be working at a similar pace in terms of growth numbers of power transmission division.
At the same time we believe that in coming future our new diesel NRE division will take over the numbers. It will surpass the power transmission numbers. With this I would like to put the growth outlook which is from bottom of my heart.
To summarize, we are a company that is highly focused in journey of energy transition. We continue to offer innovative product solutions in our transmission segment with a focus on import substitution and expanding and enriching our market share by providing EPC solutions across country. And we are continuously exploring trying with the global technology partners and doing manufacturing of those niche segment product in India under NRA division.
With this I hand over the call to Priyan Bhai to brief about financial of this company. Thank you.
Priyank Shah — Head of Finance and Accounting, Investor Relationship, Corporate Affairs
Thank you Salim sir. And very good evening to everyone. A warm welcome on Advait’s REJ conference call. I shall summarize the standalone financial highlights for third quarter and nine months ending 12-31-2024.
During the quarter the total revenue was rupees 94 crore. A growth of 30% from rupees 73 crore in Q3FY24. During the quarter EBITDA was at rupees 15 crore a growth of 24% from rupees 12 crore in Q3FY24. EBITDA margin was at 16% as compared to 16.8% in Q3FY24. During The Quarter PAT was at rupees 10 crore a growth of 34% from 8 crore in Q3FY24.
During nine months of FY25 the company recorded a robust ever total revenue of rupees 200 crore, a growth of 35% from rupees 148 crore in nine months of FY24. During the nine month of FY24 the company recorded a robust average beta of rupees 33 crore a growth of 38% from rupees 24 crore in nine months of FY24. EBITDA margin was at 16.4% as compared to 16.1% in nine months and unexecuted order book as on December 24 stood total of rupees 476 crore out of which our PTS division is rupees 273 crore to be unexecuted and which will be likely to execute over the period of nine months. Further NRE division is of rupees 203 crore and the execution of this order will be likely to get executed over the period of next 12 months in December 24th.
Pre sale a renowned rating agency has also upgraded our long term credit rating to pre seal BBB from during the first nine months we have secured total preferential issuance including convertible wallet of rupees 107.44 crore out of which rupees 88.58 crore has been received and started deploying towards the business expansion.
Our debt equity ratio improved at 0.29 times as on December 24 versus 0.48 as of March 24. Current ratio also improved to 1.73 for nine months of FY25 versus 1.41 of financial year 24. The company has comfortable net cash position at Rupees 30 crore as of December 24. And that concludes my update on the financial highlights of the company. I shall now request the moderator to open the floor for the question and answer session.
Thank you very much. We will now begin the question and answer session.
Questions and Answers:
Operator
Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from the line of Raj, an individual investor. Please go ahead.
Raj
Sir, am I audible? Hello.
Operator
Yes please.
Raj
Am I audible? Yeah. So my first question is regarding solar business. Your voice was breaking earlier. I wanted to know the solar EPC order book. Solar order book and bifurcation. How much of it is in IPC and how much is in epc?
Shalin Sheth
Hello.
Raj
Hello. Yes sir.
Krishna Patel
Are unable to hear. Just allow us a minute and we will revert back.
Operator
You unable to hear us. Ladies and gentlemen, please stay connected while we check the connection. Ladies and gentlemen, we have the management team back on the call. So you want Raj to repeat his question?
Shalin Sheth
Yes.
Operator
Okay. Raj, can you please repeat your question?
Raj
Yes. Yes. So my question is regarding solar business. Can you repeat the order book of solar business and bifurcation between how much of it is in IPP and how much is the epc?
Shalin Sheth
Good evening gentlemen. At the moment we are executing our first solar project of 30 megawatt which will be completed in the month of February. And then we are looking forward for the pipeline of 200 megawatt of solar projects. We are not taking solar projects on IPP basis. We have been taking on EPC basis with a clear focus that we want to develop the first credentials for the 100 megawatt of EPC which will help us for our future foray into battery and green hydrogen business. Thank you.
Raj
Okay, good to hear sir, that you are in only epc. So my second question is the order regarding the order from KPI Green have a realization of only 2 crore per megawatt. Which is very less if I compare to market scenario. So is it because order is B2B or. And in future what will be the realization?
Shalin Sheth
It will be. It will be in the similar lines or it can go further ahead. If you’re asking about the relation of the revenue.
So Normally the solar EPC projects is giving the revenue recognization of about 3 to 3.5 crores per megawatt. And we expect by end of the project.
By end of the month even our first project will also have the realization to these numbers. In future for the EPC side we may choose some of the project that is without the solar panels. In that case the numbers may be different in terms of realization. Thank you.
Raj
Okay, so actually there’s a confusion because in KPI green you have mentioned you have 30 megawatts. 30 megawatt of order for 60 crores. It is around 2 crore per megawatt realization.
Shalin Sheth
This project is yet not completed. The numbers will be coming in next part this quarter.
Raj
Okay, next question is regarding GH2EPC business. Currently we have one order of GS2EPC. Can you share what is the bidding pipeline or what is the current order book in terms of megawatts.
Shalin Sheth
For green hydrogen, Our order book is of 1 megawatt which is having the revenue recognition about 10 to 12 crores. And the another project on which we have worked out is in a finalization stage in terms of project financing by our customer. As soon as the project finance is covered, we’ll take up the project.
Raj
Okay. And what is the capacity utilization of OPGW and what is your future outlook regarding it? Thank you.
Shalin Sheth
At the moment we are using we about 30 to 35% of the OPW manufacturing capacity. Because it is just a second year of the operation. We look forward that this market within India and globally we keep growing at the CAGR at the rate of about 15 to 20%. Government is looking forward to replace all existing OPW from 24 fibers to maybe 48 fibers and 96 fibers. It is also discussed that all the 66kV transmission line will also be having the optical fiber ground wire. And moreover there is a huge number of new transmission lines are also under construction. So we believe that we’ll be having very interesting numbers time ahead. Thank you.
Raj
Good. Good to hear that. Sir, regarding our RDSS project revenue has increased significantly. So what is the future outlook? Or you can give any order book regarding it.
Shalin Sheth
We hope to have the order book about 200 to 300 crores for this division. Very soon we’ll be choosing the projects very carefully. Because we are not looking forward to have the revenue only from the rdss. We have this technology skill. We have the skill set. So we’ve been choosing mainly the revenue payment terms of the end customer and the segment where we can complete the projects in time. So we hope to continue growth in this segment as we achieve the growth in last two quarters.
Raj
Okay sir, my last question is regarding our Carbon credit. So currently we have 1.4 million inventory of Carbon credit and it is going to increase substantially. So what is the process of monetizing it or how are we going to monetize it?
Shalin Sheth
See, at present we’ve been building this division. Our motto is to build as much as carbon credit with minimum cost. So we will consider this is an additional revenue when the time will come. And companies able to take Care of this carbon credits from our allied business which we have been taking from battery, green, hydrogen, solar. So I believe that by end of the next year this number should be increased by 10 times at very minimal cost.
Raj
Okay. Thank you, sir. I’ll be back in the queue.
Shalin Sheth
Thank you so much for your questions. Thank you.
Operator
Thank you. We’ll take our next question from the line of Suruchi Parmar from NX Wealth Management. Please go ahead.
Suruchi Parmar
Hello.
Operator
Yes, please go ahead.
Suruchi Parmar
Yeah. Thank you for taking my questions. Sir, should I get to know about the bifurcation revenue bifurcation between your power transmission Services and the NRE New Division and FY26 and further in percentage. In percentage. If you can just tell.
Shalin Sheth
Suruchi. Good evening. I understand your question is that you like to know the division that the numbers for the power transmission and solution division and NRA division from 2026 onwards. Is that right?
Suruchi Parmar
Yes. Yes.
Shalin Sheth
Yes. See as I explained that our energy division is working with the battery and solar as a one part. Green hydrogen equipment manufacturing in the second part and the carbon and battery solutions in the third part. So each division for the last year we’re in a nascent state. So we hope to have the very significant growth for the next two to three years. So broadly I can say that this year we have the mix of 90 to 92% with the PTS and 8% of the NRE every year. With while achieving the growth, we will be able to have the NRE divisions numbers taking more and more share of the total business of the company. Broadly we can talk that it will grow by 5% in terms of product mix per year.
Suruchi Parmar
Okay. Okay. And can you. Can you highlight about the margins in the NRE division like it is better than the PTS and what you think going ahead NRE will shape into the margin side as a strategy of the company.
Shalin Sheth
We are very clear that we always work with the very niche products and niche markets. So we have got many opportunities in NRE segment to take the order. We will take only those order with the lower margins where we are looking forward for the specific and strategic qualifications. Otherwise we are looking forward for a healthy EBITDA margin for this division.
Our company has been able to achieve the EBITDA always more than 15 to 17% in past eight quarters. We would like to continue with the step.
Suruchi Parmar
Okay. Can you specify about the PLI you are going to receive in which years? From. From which year you are going to receive an estimated amount of tli?
Shalin Sheth
Yes, madam. Our PLA scheme will be commenced for us from year 2026, 27. It will continue for the five year. And we are supposed to get the PLI at the rate of 300 megawatts per year for the next five years. Okay. So total PLI incentive available to us is about four hundred and forty crores.
Suruchi Parmar
Okay. For next three, three to five years.
Shalin Sheth
Correct. Next. Next. Besides the total five years but major portion should come in three to four years.
Suruchi Parmar
Okay. Okay. Thank you.
Shalin Sheth
Thank you madam.
Operator
Thank you. We’ll take our next question from the line of Devang from NB India. Please go ahead.
Devang
Hello, Is my voice audible?
Operator
Yes, please go ahead.
Devang
Yeah. Firstly congratulations for a very great set of numbers. Just I have one question as a long term investment perspective that what are the top 10 and bottom line estimates we are having for FY 26, 27 and 28?
Shalin Sheth
Thank you Divanji. Our expectation for the top line and bottom line for the next two years should be to continue with the same numbers what you achieved. Okay. Means so in terms of growth. I am talking about in terms of growth. Okay. So if I see them last three years we have been growing sales at 50% and almost the same profit also at 50% CAGR. So are we looking to repeat the same top line, bottom line growth rate of 50% 50 at the moment we are eyeing for those kind of business.
Devang
Yes. Okay. And do we see any challenges for like having a deviation from 50%?
Shalin Sheth
That’s what precisely I was trying to cover in my presentation. And if you can just look at the PPT which we have uploaded on our website. We have mentioned in chairman’s message that our complete focus is towards developing the products and development of the services which enable us into the extreme the greater elevation by getting the qualification. So better the qualification, better the capability we’ll be able to achieve the margins. So that is the only limitation which any business faces. But we have been able to mitigate and get successful since last three years as what are we planned for next six to seven years of vision? So I think first three years we have overachieved and we hope that will continue the same.
Devang
Okay. And for solar like what I am observing is that this December and January month we are seeing very less tenders from the government. So is my understanding correct or this is a misconception? We are seeing the growth in the solar tenders.
Shalin Sheth
See if I talk about the broader outlook for the solar. Yes, precisely. The new projects of the solar have reduced in last one quarter. But that is in terms of gigawatts. My company is looking forward for the project in terms of megawatts, that is 200 to 250 megawatts. And if you look at the Gujarat, we have enough potential in Gujarat and Rajasthan for the solar project. So we do not find any difficulty with these numbers. And secondly, what is happening that solar projects are getting delayed or not coming with the as predicted. That is because of the energy transition phase.
Because solar projects are equally required to be contributed with the battery project and other energy transition phases. So that’s what precisely we are also working to work on other aspect of the transition energy. And we will go side by side with the market. But at the end we have to achieve 500 gigawatt of energy transition.
Devang
Okay. And one last question sir. When we are expecting to commence the green hydrogen project, that electrocell product project.
Shalin Sheth
Our manufacturing phase for the first 300 megawatts should be completed by year 2026. And we’ll be able to supply the same by end of 2026 and the first year of 2027.
Devang
Okay sir, thank you so much. And again congratulations for great set of numbers.
Shalin Sheth
Thank you.
Operator
Thank you. We’ll take our next question from the line of Priyanshi Kankane from Brighttermind Equity Advisors. Please go ahead.
Priyanshi Gangane
Am I audible?
Shalin Sheth
Yes, you’re audible.
Priyanshi Gangane
Thank you for the opportunity. I have a few questions from the JB which you recently did with Psycho. So sir, I want to know what’s your capital commitment in this jv?
Shalin Sheth
Priyanshi, good evening. If you don’t mind, can you please repeat the questions? Maybe I am not able to heard it well.
Priyanshi Gangane
Yeah sir I want to know the. Sir, the JV which you did with tech or recently. So sir I want to know what the capital commitment in the JV.
Shalin Sheth
See in this JV our commitment is investment of $2 million into the main company of the vehicle. And in that respect we will from our JV side the Indian JV will be getting the licensing agreement to manufacture the the fuel cell.
Priyanshi Gangane
Okay sir. And the second question I want to ask that what is the current scenario of technology in India like? What’s our view on green hydrogen fuel technology? How much time India will take adopt this technology and how much of revenue do you expect to generate from this?
Shalin Sheth
Madam, at the current scenario we believe that India is already going to face a very interesting and very opportunistic stage in next two to three years. For all of us who are into this green hydrogen related equipment and services field.
Because India is definitely a fossil fuel deficit country. We at the moment we are finding that there are many interesting Applications where fuel cell itself will be able to compete the current cost of power. For an example, there are many applications in India where the cost of power is more than rupees 2530 per kilowatt.
And I think we’ll be able to offer those kind of solutions soon. Once the green hydrogen or the gray hydrogen will be available in enough quantity, I think more and more projects which are having the feasibility will come up and that will be precisely into the shipping, heavy, heavy duty transportation and also as a replacement of the diesel generator.
Priyanshi Gangane
Okay, thank you so much and good luck.
Shalin Sheth
Thank you so much, madam. Thank you.
Operator
Thank you. We take our next question from the line of Kushal Kaslival from Invad Research. Please go ahead.
Kushal Kasliwal
Yeah, thanks for the opportunity, sir. Just wanted to understand the competition in the green hydrogen space. I know this is a new vertical and we’ve not just, you know, not started clocking revenues in this sector, but just wanted your overall sense of the competition. Because there are many large companies who have put up and one large PLI similar to yours, you know, to name a few, like Warrior lines. And has the actual electrolyzers started getting manufacturing in India now?
Shalin Sheth
Good, gentlemen. See. Yes, you’re right. There are large players also who will go to PLI and who are also putting up their plant. But looking to the overall requirement of the littorizers and green hydrogen equipment in India, looking to the requirements, what we are going to produce will be less than 1% or 1.5%. Number two, facing the competition, the big companies, maybe Reliance or Adani, they will be precisely working for their own consumption for production of the hydrogen.
Their core business will be to supply the hydrogen. So rather we think that we’ll be able to have more and more opportunity with those players also. And third, if you just look at the green hydrogen equipment manufacturing space, it is going to offer enough space for all the quality manufacturers.
Who has got the technology type available and who has got the know how. Yes, the tenders for the green hydrogen has already started. All the oil refining company are putting very serious effort by replacing their gray hydrogen to the green hydrogen.
And I think there are at the moment there are five tenders are already owned which are needing the electrolysis with a total requirement of more than 220 megawatts. So currently, you know the electrolyzer manufacturing is on. You are saying in these 510 Currently India is producing electrolyzers.
See, previously the electrolyzers were supplied to produce the hydrogen at the laboratory requirement, at the lab scale. If it concerns to the green hydrogen from last one year or 1.5 years. Yes, India has started to supply the electorizers. But I will not say that to manufacture because still a lot of components are imported precisely the core component that we call as a stack of the electrolyzer. So I believe in next one year we’ll be able to have developed ecosystems.
Overall it will take at least three years to have the complete ecosystem. And we have been working to produce at least of 85% of the electrolyzers component in house in domestic basis. The PLI also mentioned certain kind of indigenization of these electrolyzers.
So when you say 85%, you mean 85% indigenization means that components will also be acquired from India and studies in India. So there are two parts. I can reply a question in two parts.
One, to meet the PLI limitations that pla. So if you just look at the pli, we need to ensure that we have been supplying more than 70% for the year one maybe 80% and 90% in next three, four years. So yes, PLI is also up asking to have the domestic component second to compete a to excel.
We also have the our own program to develop more than initially more than 60% then 70 and 80% domestic supply and that to in house or developing our OEM partners so that we can supply more than 85% domestic.
Kushal Kasliwal
Yes, understood sir, understood. And so my next question was on the green hydrogen EPC business which we have in the NRE segment. Sir, in this division, what we are doing exactly Are we giving EPC services to other players to install electrolyzers at that their place and produce green hydrogen?
Shalin Sheth
Sir, I would like to answer you like this. You know, like we are not the companies like the biggest name you mentioned. So we would like to first enter, learn, perform, stabilize the revenue while stabilizing the revenue.
We also work how to be a successful manufacturer and then how to provide the integrated solutions. That is the journey which we want to take up. We have done the same journey in our PTS division and that is working on our own, on its own to get more and more projects.
Similarly for the hydrogen, we plan that we’ll be doing initially the EPC projects. So we finished the one project. We’ll be doing two, three more in this year or next year.
While doing that, we have decided to develop the equipment so that we are putting up the factory for the green electrolyzers and then fuel cell. We believe that this product mix in the next two to three years will be ready to fly.
Kushal Kasliwal
Understood, sir. Thank you so much for. For answering patiently.
Shalin Sheth
Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question please press star and one on your phone. Now we’ll take our next question from the line of Pushkar Jain from Millie aif. Please go ahead.
Unidentified Participant
I miss. Can you again. Sorry, am I audible now?
Shalin Sheth
Yes, you’re audible now.
Unidentified Participant
Yeah. Yeah. So. So I just wanted to know the breakup of order book like 476 crores is divided in what ratio?
Shalin Sheth
If you just look at the order book ratio of the dividend wise. Ratio.
Unidentified Participant
No, no. Just like 476 crores order book. Right. And what. What is the breakup of the order book?
Shalin Sheth
You want to have the breakup order wise. I just give this question to Priyank. We’ll be having a detailed number. Priyank, please answer the question.
Priyank Shah
Hi. So I would like to address your question. So. Order book from PTS division currently as on 12-31-24 outstanding is close to 273 crore. Out of which the major order bookies pertain to the EPC from Discom segment which is 165.5 crore. Close to 35 crore orders books is outstanding pertain to BGW and another supply orders worth rupees 49 crore is pertained to the manufacturing of tools ers related and around 15 crore is pertained to the. Some of the services now pertain to the NRE segment. So yes from NRE segment we have order book of 209203 crore out of which from battery segment we have orders of around 130 crore. And GH2 EPC is around 14 crore. And balance is from the solar EPC.
Unidentified Participant
Thank you. That answers my question. Thank you. And you said on the call that most of the orders are going to get executed in nine months or 12 months. So a 476 crore order book so we can expect like 120 crore stop line per quarter. So I have mentioned whatever orders are outstanding from PTS division in various segments will be likely to get complete over the period of nine months. And whatever orders currently stood order in NRE segment will likely to complete over the period of next 12 months. Yes sir. So that is what I’m saying. Just extrapolating the numbers 100 crores to 125 crores minimum. Top line can we expect for the coming quarters.
Priyank Shah
So some orders are completing in some quarters. Some orders are completing in some quarters. So to compress the things the last order which is sending in the current order book is likely to complete in nine months. From today.
Unidentified Participant
Okay, thank you. So that answers the question.
Operator
Thank you. We’ll take our next question from the line of Amitabh Vatsya from Sadhan. Please go ahead.
Amitabh Vatsya
Hello. Am I audible?
Operator
Yes, please.
Shalin Sheth
Yes please.
Amitabh Vatsya
Yeah, thanks for the opportunity. I have two questions. One is with respect to the battery part, the battery do you want to play as a EPC or as a kind of IPP or a developer mode you want to go with and what is the business model and how are things are evolving for you?
Shalin Sheth
Amitabhji, Good evening. Yes. See if you look at the battery as a IPP or epc it fundamentally, you know, it differs that about infusion of the equity.
So if I put my money over there, if you are my investor, you’ll be asking, you are investing and you’re getting what kind of IRR and what kind of return you are going to get. So we are open for both. We are looking forward only the projects where we’ll be able to get this significant or specific kind of IRR or the investment on our return on our equity.
Then we are immediately choosing the IPP business. Otherwise we’ll be looking forward for EPC business till the time we will look at our balance sheet. And while managing our balance sheet we will proceed for next three to four years because the opportunity is huge.
At the same time we would like to encase only the right opportunity for the company.
Amitabh Vatsya
Okay, so I have a question with respect to green hydrogen business. In terms of electrolyzer manufacturing. You have a, you are building a capacity of which is used like 300 megawatt per year. And right now the user said that 220 megawatt is currently on the tender basis right now in the whole country. So if I sum it up with all the PLI candidates of capacity is going to be used if at least if I multiply it your 306, at least a 2,000 megawatt kind of electrolyte capability you might be having in 2027.
So do you see the profitability curve for your green hydrogen business? Because right now the orders are not there. And when you see it’s coming.
Shalin Sheth
See if we know precisely the total requirements which has been prepared by the various firms is more than about 8 to 9 gigawatt. That’s what kind of requirement is going to come in next two to three years, maybe next one year. And of that some tenders have started to float up. So we also will take about 1 1.5 years to be ready to take up that opportunity.
So that the reason we have chosen that part that whenever the system is ready, when the system is asking, I should be ready to take on the plunge. Number one, by the time we already have a very fast moving and fast growing current business in our NRA division, we know the path for the next five years. So while maintaining that path, we do not find any problem in terms of revenue or margin for the kind of business that we are looking forward to take.
So do we have any list of potential clients in front of us? Because. Because right now there is one use case you spoke about is oil and gas. So we have any other potential list of clients which will be requiring electrolyzer from them.
We have been working with some of the companies who are discussing to provide the green ammonia. So these kind of companies who are putting up their plan under the PLI scheme of the ammonia, those will be our potential plant for the ammonia. We are also discussing with two of the steel companies.
So those will also be our client. We are also working with one Delhi based company into the distribution. They are going to supply about 5% of the green hydrogen into this distribution network. So they are also a potential customer. And we are. We are going to. We already received the line of confirmation of supply with them same time. Oil and gas is going to be the significant segment for next one or two years overall. Maybe in two to three years it will also be expanded into the industries, into the segments like chemical.
Amitabh Vatsya
Okay, Can I squeeze in one more question with respect to green hydrogen?
Shalin Sheth
Yes.
Amitabh Vatsya
So in terms of the indigenization of fuel cell which. Which you are. Which we are trying to have through techo. So where we are going to put it up in a manufacturing state and how is the manufacturing setup looking like as we speak on the green hydrogen fuel cell as well as the electrolyzer manufacturing facility in terms of the hard assets or land, if you can give us some color.
Shalin Sheth
Thank you for the question. I think we are putting up the plant about 30 km away from Ahmedabad. The total land requirement will be about 55,000 meters for the electrolyzers and fuel cell. Both our facility for both the units will be separate and our electrical plant will be appended up to 1 gigawatt in next to three years.
So we are looking forward for the 1 gigawatt of electron equipment manufacturing capacity. And for the fuel cell side we will be putting up the first plant as a manual capacity wherein we will just manufacture the stack and the balance will integrate. That is 50 megawatt for the first or one or two years.
And then we have tied up with The Tyson Group to provide our complete automated line to scale up the capacity up to 400 megawatt a year. So that is a fuel cell to be looking forward.
Amitabh Vatsya
Can you repeat the name of a company that is helping you with the fuel cell?
Shalin Sheth
Our technology developer, Teco Group. They have worked very closely with the one of the giant company in Europe, avl. They are the technology developer company. So avl, Teco and Tyson Group of Germany they have discussed and they worked out the assembly line. In fact, Tyson Group is also providing similar assembly line to other fuel cell manufacturers of Europe.
Amitabh Vatsya
Okay, so is this fuel cell
Operator
Join by the queue please as we have other participants waiting. Thank you. We’ll take our next question from the line of Chinmay Diani. Please go ahead.
Chinmay Dhyani
Hi sir, good evening. So I wanted to understand our carbon markets and IREC services what you have put on the presentation. So the business model over here and the financial say model also over here. So some some thoughts on this.
Shalin Sheth
Chinmay, just to sum up your questions you want to ask the business model for the carbon business?
Chinmay Dhyani
Yes, Carbon, Carbon credit, some business and financial and financial also like whether you are taking it on the books, how you are procuring, etc.
Shalin Sheth
Thank you for your question. Precisely we are getting two kind of revenues from this carbon business. One is a consultancy that we have been helping to get our customers to get the carbon credit in their books. Second, we are also giving consultancy for the green hydrogen and the battery kind of developers that how they can get the carbon credit into their books. So we have been getting the consultancy here in the second part. Third we are also helping some of the fortune finder companies for advising them on their ECG policies.
So that is giving the consultancy part of the carbon. Second part that we are also taking some part of their carbon credit which eventually we get on our books. But we have got a very clear management policy that whenever we are going to we will start getting this karma credit on our books.
Our revenue will come only at the time of selling and for us the karma business is a supporting business for our NRE division because we have been giving our big foray into green hydrogen again for the battery and solar. So we hope that this is going to help and add the overall value of the company.
Chinmay Dhyani
So sir, what is the maximum amount what you intend to deploy in procuring carbon credits?
Shalin Sheth
Sir, we are not looking forward to buy so that we need to deploy the amount in buying the carbon credit. We will deploy the amount to generate the carbon credit for our customers and that is in form of salaries and some tools.
Chinmay Dhyani
So you will be not buying carbon credits from the open market, right?
Shalin Sheth
No.
Chinmay Dhyani
From any other. Any other company?
Shalin Sheth
No, no, no.
Chinmay Dhyani
Okay. And. And what kind of revenue do you foresee from this business? Like what percentage of the revenue over next say one year or say 18 months.
Shalin Sheth
See at the moment we are focusing on getting revenue to start with maybe 2 years, 2 crores for the consultancy part and 2.5 crores on the carbon credit selling part from this next year onwards.
But looking to the current scenario this may be multifold in next four to five years. But no capital will be deployed from the balance sheet on this for this business. And our existing balance sheet is able to take care of the same. And we. We don’t need to deploy any capital for the same.
Chinmay Dhyani
Okay. Thank you sir.
Shalin Sheth
Thank you.
Operator
Thank you. We’ll take our next question from the line of Gautam a snaker and individual investor. Please go ahead. Gautam, please check if your line is on mute since there is no response from the current participant. We’ll take our next question from the line of Raj and individual investor. Please go ahead.
Raj
Thank you for the follow up. So we are going to spend around 350 crore for 300 megawatt electronics electrolyzer facility. So how much of that is spent till now
Shalin Sheth
Raj, your question is that. That we. We are going to spend 3,30 crores for the electrolyzer and how much we spend for the same. Am I right?
Raj
Yeah, yeah. Correct.
Shalin Sheth
So first of all we have not mentioned that we’ll be spending 330 crores for the electoralizers. We will keep on discussing about this budget capex for the advisors. At the moment we have done the technology tie up. So we have spent some of the amount for the technology type for electron business. We have given some advances for the land and we have worked out some licensing agreement and some of the software. This is the amount we have spent at the moment.
We believe that our major spending will come in the year 202627 for this plat.
Raj
Okay. So sir, I want to know that for a 300 megawatt capacity of electrolyzer how much is the capex requirement? If not 330, 350.
Shalin Sheth
I would suggest that these numbers are too specific to be given now. But what I can tell that our numbers will be most comprehensive and those will be most economical numbers that my company has worked out so that we can get the maximum roi. But I cannot tell the exit numbers at the moment. Of course we can discuss whenever you are along with our team in future.
Raj
Okay, sir. Secondly, you mentioned your best order book is around 130 crore. So is my understanding correct that it is distributed over 10 to 12 years?
Shalin Sheth
130 crores. For which business?
Raj
A battery energy storage system. Best business.
Shalin Sheth
So this is the business which we received on annuity. So this is distributed in the year. We can say that this is for the distributor for the next 12 years.
Raj
Okay, sir. And secondly, regarding our consultancy business, we have 20 projects of 300 plus megawatts. So can you tell me what is the revenue potential of it?
Shalin Sheth
Can you please repeat your question? I could not understand the question.
Raj
So sir, for consultant consultancy business we have around 20 projects of 300 plus megawatt. Can you tell me what is the revenue potential of it? So I think you have been discussing about the consultancy projects for the carbon consultancy. Am I right?
Shalin Sheth
Yeah. Carbon consultancy. Okay. So as I have given the numbers to you that we are looking forward for the carbon consultancy of 2 crores for the next year. And then we have the significant numbers in terms of carbon credits to be received from them. And total revenue we are looking forward is 13 crores. 3. 0. 30 crores. This 13 crores is traded between 3 to 5 years.
Raj
Okay. Okay. Thank you.
Shalin Sheth
And I think you asked the question about these 130 crores. And I said it is an annuity of 12 years. But presently year wise our revenue will be 16 crores per year for the battery business.
Raj
Okay. Okay. Thank you.
Shalin Sheth
Thank you.
Operator
Thank you. We’ll take our next question from the line of Gautam, an individual investor. Please go ahead.
Gautam
Yeah. Am I audible now?
Operator
Yes. Please go ahead.
Gautam
Yeah. Good evening, sir. And congratulations for your fantastic tutorial. I just wanted to understand if you could throw some light on your ERS segment. I think that’s. That’s been a niche area also where you are working on and how we are placed against the competition and how you foresee.
Shalin Sheth
Yeah. You are asking about our emergency restoration system business.
Gautam
Right? Right.
Shalin Sheth
Yeah. So here we are. We have already developed this product with more than 95% indigenization. That is a local content. We are further developing two or three new model with the latest kind of channel. We already build up the team and our factory is set further this year. We are also going to deploy the automatic welding machine to take care of the proficiency of the channel. And we look forward that we being among the very few manufacturers in the world and maybe one or two manufacturer is India at the moment. We take a position so that we can take the maximum market share for next five years. And this year is going to happen.
Gautam
Okay. Thanks a lot. And one more, sir. If. If as a retail investor if I would like to, you know. Visit our company. How. How would. I mean can it be arranged or how is it?
Shalin Sheth
Definitely. I’ll just ask Priyan bhai and our company secretary sitting here. They can definitely arrange a meeting with you. And they’ll be happy to meet with you. Please arrange.
Gautam
That would be fantastic. Hello and thanks a lot. Hello.
Priyank Shah
Thank you. Thank you.
Gautam
Yeah. Thanks a lot sir. And all the best for.
Priyank Shah
Thank you.
Operator
Thank you. Ladies and gentlemen. We’ll take that as the last question for today.
I now hand the conference over to Mr. Charlene Shade for closing comments. Over to you sir.
Shalin Sheth
Madam, thank you very much for the excellent coordination with this. With a special thanks to all the investor community who were here to listen and answer questions. I would like to thank you all for joining us on our earnings conference call today.
Thank you for your support and trust in us. We hope that we have been able to address most of your queries. In case of further queries you may reach out to our investor relationship advisor Eny and they will connect you with you offline. Thank you so much.
Operator
Thank you sir. On behalf of Advait Energy Transitions Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.