Alpex Solar Ltd (NSE: ALPEXSOLAR) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Unidentified Speaker
Ashwani Sehgal — President and Managing Director
L K Dhamija — Vice President, Finance
Vipin Sehgal — Executive Director
Udaya Sehgal — Chief Financial Officer
Sakshi Tomar — Company Secretary
Analysts:
Unidentified Participant
Yash Jhurani — Analyst
Abhi Sehgal — Analyst
Maitri Shah — Analyst
Bhavya Shah — Analyst
Dhananjay Mishra — Analyst
Ishima Bansal — Analyst
Presentation:
operator
Good evening ladies and gentlemen and welcome to the earnings conference call for Q3 and nine month FY26 for Alpec Solar Ltd. That is ASL let us now begin with the introduction of the management team we have with us today Mr. Ashwini Sehgal, Managing Director Mr. Vipin Sehgal, Director Mr. Adita Sehgal, CEO Ms. Udaya Sehgal, CFO Mr. L.K. damija, VP Finance and Ms. Sakshi Tomar, Company Secretary Mr. Ashwini SehGal, Managing Director a mechanical engineer from Punjab University has been a stalwart and pioneer in the field of solar manufacturing and currently serves as the General Secretary of the Indian Solar Manufacturers association that is ESMA which consists Adani, Tata Reliance as its members among others where he has also served as the president for 12 years and played a pivotal role in advocating for favorable government policies that benefit solar manufacturers like almm, ALCM and alwm.
His impeccable reputation within the solar manufacturing industry has solidified his position as a respected industry leader and driving force for the solar manufacturing industry in India. Also joining us today is Mr. Aditya Sehgal, CEO Mr. Aditya SehGal has a Bachelor’s Degree in Science with a focus on Electrical Engineering from the prestigious University of California as the CEO of Alpec Solar Mr. Aditya Sehgal has been driving the global export opportunity and is focused on developing newer markets I would now invite Mr. Ashwini Sehgal, Managing Director to give his opening remarks thank you and over to you.
Mr. Sehgal. Please unmute yourself.
Ashwani Sehgal — President and Managing Director
Thank you very much so first of all I thank each one of you who have joined this Investors Call and those who have joined it maybe second or third or fourth time. So I welcome all of you to this Investors Call and wherein we are passing through some really interesting and exciting times for the industry as you might have seen the industry is rapidly growing and we at Alpex are enjoying this growth with the minimum expenditure I would say and we are reaping the benefits of this expansion in the industry and we are significantly contributing towards the Atom Network mission of Government of India and as you might be aware Alpex in the last after getting listed within not even two years we have grown at a very very rapid pace so when we got listed we had just one location of manufacturing and now we are almost completing six locations of manufacturing wherein our module capacity will touch 3.6 gigawatt solar cell the most beautiful project for Alex and the industry and for the Government of India also we have Taken strides and gone for backward integration and putting up 2.2 gigawatt of Topcon G12R cells which is also completing the likely to be completed very soon and the production will start very soon.
Similarly we were the pioneers to start the aluminum frame project and that is also giving good results to Alpex. So I have the industries industry is growing rapidly with the government’s intent that this industry needs to grow vertically and backward also and we have to manufacture the complete value chain within India. So with that mission the government of India has made the policies which are very conducive to the manufacturing and not only Alpex, other people are also having diversifying backward integration or forward integration. So all companies are taking these steps. So without taking much of your time, more, more time.
I would like to now ask Mr. Damija to share our results and our presentation and what is the like future for all of us. Thank you.
operator
Thank you sir. I would now invite Mr. Damija, Vice President Finance to give orientation about financials of Q3 and nine months ending on 31st December 2025. Over to you sir.
L K Dhamija — Vice President, Finance
Thank you very much sir. Good evening ladies and gentlemen. I would like to draw the attention this slide number three. I’m happy to share that ALPEC Solar is becoming a big conglomerate with massive expansion plans undergoing execution which are spread over 1 million square feet area. The company is becoming integrated players engage in entire value chain of solar power industry and by the end of this next financial year that’s 2627 we will have 3.6 gigawatt capacity of solar module manufacturing, 2.2 gigawatts solar cell capacity, 12,000 tons of aluminum freemium capacity, 115 megawatt of EPC business and 100 megawatt of independent power plants within the company.
And I’m happy to share mention that when last conference was held we had six functional units. Now we have. Sorry, we had six units. Now we’ll have seven units because we have added one more unit in OC GL for aluminum frame. So out of the six units are functional. Next slide. Now let me share the power pack performance of the company which achieved in the quarter three. Quarter three has been a record quarter for the company with highest ever turnover, highest ever EBITDA and high highest ever PAT. Company achieved a revenue of 648 crores for the quarter EBITDA of 91 crores and profit after tax of 54 crores in quarter three which which is 14 point EBIT which shows the EBITA margin of 14.03% and net margin of 8.37%.
There’s a small decline in the mar net margin, this margin, ETA margin and net margin which we’ll discuss in the on later slides. Now would like to you would have seen our published results for this quarter which were published today only. First let me cover the quarter to quarter comparison for the current quarter 3 versus quarter 3 of last year company has achieved a turnover of 648 crores against 187 crores over the quarter 3 last year which is 3.45 times. Similarly on the EBITDA we have achieved 91 crores of EBITDA which was 37 crores in Kautri last year which shows it 2.5 2.45 times as growth and net profit for the quarter is 54 crores which was 23 crores in the same quarter last year which is 2.3 2.32 times.
3.2 2.34 times. Next slide coming to the performance consistent performance quarter on quarter if you see the this full year in all three quarters we have grown consistently Q1 our turnover was 380 crores which has grown to 523 crores in quarter two and 648 crores in quarter three. Similarly at profit after tax also net profit was 42 crores in Q1 which grew to 51 crores in quarter two and now in quarter three it has gone to 54 crores. Next section. Now coming to the full nine month result the company has achieved a turnover of 1551 crore for nine months against 452 crores the same period last year which is 3.43X. EBITDA for the nine months period is 234 crores against 73 crores in the corresponding period last year. Similarly profit after taxes 148crores against 48crores in the same period last year. All these figures are more than three times. If we compare the same period of last financial year next lot is happening in the solar industry which our chairman and Managing Director Mr. Ashni Sehgal will be discussing.
But before that I would like to mention one more thing then the last four years the company that is from 2223 onwards and going up to 2526. This first nine months the company has grown manifold. If we compare the figures of 2223 with the annualized figures of current financial year our turnover has increased more than 10 times. EBITDA has increased more than 24 times and profit after tax has increased more than 52 times during these four years Now I will request Mr. Sehgal to take it forward.
operator
Thank you. I would now invite Mr. Vipin Sehgal, Director for updates on upcoming GR12 Topcon Solar Cell Facility over to you sir.
Vipin Sehgal — Executive Director
Thank you. Welcome everyone. Regarding the Solar Cell Project (Foreign Language) Thank you.
Questions and Answers:
operator
Should we begin the question and answer session? Thank you Ladies and gentlemen, we will now begin the question and answer session. To ask a question please click on the QA tab on the panel and click on raise hand button. The operator will announce your name. When it is your turn to ask a question, please accept the prompt on your screen and unmute your microphone while proceeding with your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from Shashank Jha from SB Capital. Please go ahead.
Unidentified Participant
Yes sir, my question is regarding.
operator
Shashank. I’m sorry, we couldn’t hear you. Shashank, can you please repeat your question?
Unidentified Participant
Hello.
operator
Yes, we can hear
Unidentified Participant
audible.
operator
Please go ahead. Yes, please go ahead.
Unidentified Participant
Yes, I. My question is regarding the capacity. So by FY28, that is that planned 3.2 gigawatt module capacity will be most likely be utilized the rate at which we are growing. So any plan after that? Sir.
Ashwani Sehgal
Very good question. We have stated in the past that we are a conservative company which decides as and when the situation arises. Yes, we are growing at a rapid pace and there is a good chance that our 3.6 gigawatt capacity will become not sufficient for us. So with our kind of experience, so if required maybe 2.4 gigawatt of additional capacity for modules can be installed at the same new factory which is under construction at oc. So we will announce this once we have a very clear visibility further. So this is our ip. Thank you.
Unidentified Participant
Okay.
Any plan on export
Ashwani Sehgal
export opportunity? Yes, if you recall in my previous similar discussions. So we were one of the pioneers of export to Germany, Italy and Australia in the. In olden times. But now we are not exporting. But with the the issue of reciprocal tariffs gone. So we hope that the America Market will open up. And if it opens up and we. Since we. We have our own cell, our own aluminium and at the same time we. In our. In. In our group we are expanding into silver based business also. So we will have a lot of.
Almost 80% of module will be manufactured by Alpex. So we will have a clear edge. And we will enter the export market if it is profitable. And the policy is conducive from USA side.
Unidentified Participant
Okay. Great. Sir, one question is regarding the order book. When I see Premier I don’t want to take the company name. But I have to take it because of my question. So like if I see Premium energy and Warri Energy their order book provide me visibility of two years next two years, one year at least. So how is our order book nature?
Ashwani Sehgal
Our order book is sufficient to expand our business.
Our guidance for the next year is 2x of 2x is our general guidance for this business. So our next year guidance will be around 3,000 crore which we have more than that orders. And moreover with our cell line commissioning very soon the order book will become more and more strengthened and it will get filled up. I mean I don’t want to declare anything as of now. So orders is not going to be any problem. And moreover our orders are repetitive from the similar customers. And we have stated that 1800 CR is the order book as of now.
But it is getting expanded every day. Order is not a problem.
Unidentified Participant
Okay sir, one last question. I just said DCR Indian government 2300 crore (Foreign Language) This may be a silly question for you all but it is an important question for me.
Ashwani Sehgal
So DCI market is governed by the cell. Okay. It is not governed by the module makers. So since we have our own cell we will continue to have this kind of pricing which you mentioned. And at the same time the cell market, cell capacity expansion is not coming at that kind of a pace.
So the pricing is going to be maintained. A government cannot tell us that reduce the price. Yes, the competition can dictate lower prices. But. So this is the situation.
Unidentified Participant
If one more last question regarding. Last question sir.
Ashwani Sehgal
Okay. Okay.
Unidentified Participant
Like a better margins analysis. We can easily exceed 30% of. We will have aluminum frame then cells. We can easily exceed it. So can you give some commentary on that? I have seen.
Ashwani Sehgal
Yeah. So currently our contributor in the IVIDA is a module, EPC and aluminum. The cell is yet to add to the ebitda. So once cell comes into picture so the EBITDA margins are going to rapidly expand. And so this way our EBITDA margins will be insulated and moreover not only insulated, but will be expanded very rapidly.
Unidentified Participant
Yeah, thank you sir. Thank you.
operator
Thank you. Next question is from Somil Shah from Paris Investments. Please go ahead. Yes, yes, please go ahead.
Unidentified Participant
Yeah, so my question was similar to the previous participants that once we start this cell manufacturing, what kind of EBITDA margins and PET margins can we, I mean achieve at company level?
Ashwani Sehgal
Okay. I will comment on the EBITDA which our industry colleagues are enjoying. And so they are enjoying a bad margin of around 25, 26% on cell manufacturing. And as our other director, Mr. Vipan Sehgal explained that we are coming up with one of the most efficient cell manufacturing and efficient means that to manufacture one gigawatt of cells in that plant is the most cost efficient.
And at the same time we are coming up with the most efficient cell size also which is the industry, which has become the industry standard. So we anticipate better margins than our, in the, in the industry because some people are shifting to this G12R so but we are directly starting from G12R so we will have some, some extra points on, on this.
Unidentified Participant
Okay. Okay. So on a base case scenario we can expect 25% PET margin at least for next year.
Ashwani Sehgal
Yeah, it should happen like that. Why not?
Unidentified Participant
Okay. Okay.
Ashwani Sehgal
Yeah. But again it is the industry.
Unidentified Participant
Understood. And by Q1 of Next Financial year we are starting this cell manufacturing or it may be delayed.
Ashwani Sehgal
We are likely to start.
Unidentified Participant
And once we start, I mean by, by when we can have a full utilization of that capacity,
Ashwani Sehgal
We are being aided by one of the most efficient and professional teams and the capacity utilization we hope that we should be able to get once we start the line. So within 45 days we should be able to achieve 90 to 95% of the capacity utilization. This is our, based on our industry consultants and colleagues who are helping us set up this line.
So, so this is this way we think that within once we start, so another 45 days will take us and we will have the capacity utilization at a reasonably good level.
Unidentified Participant
Okay. And that will be for our own user, right? Right.
Ashwani Sehgal
Yes. We have not because we don’t intend to sell the cells, but there is a, some kind we need to plan a little bit because all the orders are, we may have some monoper orders pending with us. So we may buy a monoper cells from other DCR manufacturers and sell our G12R in a small quantity to other buyers of this year.
Unidentified Participant
Okay.
Ashwani Sehgal
But as of now we don’t, we don’t foresee any problem in consuming each and every single cell which we manufacture.
Unidentified Participant
Okay. Okay. And so my final question. Do we see any impact of silver prices, I mean on our margins going forward?
Ashwani Sehgal
Yeah, silver prices are affecting the whole industry and but our as Mr.
Vipan Sahgal explained our technology is slightly different and it is one of the most efficient and most I would say the latest technology we’re adopting wherein the consumption of silver will be relatively lesser than the competitors and at the same time as we can explain to you so the new we have a silver based company already established with the technology from USA and Taiwan and this is the jv it is in the group, in Alpex group, not in the Alpex company. So that is going to help a lot to this cell manufacturing. Cell manufacturing also.
So we are adopting one of the most most recent technology advances. So so, so as we can explained so copper will be substituted in in some form and that will add to the profitability of Alpex holder. Thank you.
Unidentified Participant
But so I mean on an average, I mean what is the usage of the silver in our raw material?
Ashwani Sehgal
Currently we are not using any silver because we are not directly consuming silver. Silver goes into the manufacturing of solar cells. So once we start manufacturing cells then we will use these silver. So as of now we are indirectly buying silver through the cell routing.
Unidentified Participant
Okay. Okay, that’s it from my side. Thank you and all the best.
Ashwani Sehgal
Thank you.
operator
Thank you. Take our next question from Yash Jurani from QOD Advisors. Please go ahead.
Yash Jhurani
Audible hello.
operator
Yes, you’re audible. Yes, please go ahead.
Yash Jhurani
So basically there were two things that I wanted to know. One was in the November con call you said that we had a blended realization of around 17 to 17.5 INR per watt peak. So what’s our current realization say in DCR and non dcr? And what’s a blended realization for the company?
Ashwani Sehgal
It’s still in the similar region. So now the prices are strengthening once again and we hope and it is in going in that direction that the blended per watt price realization will reach around 18 0.5 or maybe 90 rupees. Also 88 is 0.5. Yeah.
Yash Jhurani
And generally in the industry currently if I’m not wrong, non DCR is at around 14 to 18 rupees per annr. What week what peak? And DCR is at around 22 to 24. So are we within that range in terms of the DCR and non DCR split or are we above that?
Ashwani Sehgal
We are in the similar region and the non DCR module prices are Strengthened further because they were quite, they were competing with Chinese products but now because of the silver and other things and a lot of developments are taking place in China and so the prices are strengthening at a rapid pace.
So we feel that the non TCR segment will cross 16 rupees very soon.
Yash Jhurani
And the last one is. So we know that ALPEC say generally paid a relatively high NCD rate versus the peer which was at around 13 to 14%. So like can you explain us why the cost was this high?
Ashwani Sehgal
What is the question? Sorry, I missed data.
Yash Jhurani
So we paid at least I think around 13 to 14% while we were raising our non convertible debentures. So why was this cost so high when we compared to the other players who are raising debt in the current market?
Ashwani Sehgal
So I would say it is the main reason was the timing and so you would have seen from our presentation and from our results that our banking limits are very, very epsimal and the banks take their own sweet time and they are unable to cope up with the expansion which is happening at Alpex level.
So our top line and bottom line both are rapidly growing but banks they are quite conservative and slow in giving that kind of limits. So because we are also at the same time investing lot of money in our cell and extra capacities which are coming up so we raised this 125 crore of non DCR sorry the debentures and yes these are slightly expensive but the time because of a sense in timing so we went in for that but so that is it.
Yash Jhurani
Thank you so much.
Ashwani Sehgal
Thank you.
operator
Thank you. Next question is from Chitresh Lunavat from Nine Venture. Please go ahead.
Unidentified Participant
For the amazing set of numbers. So sir, I just wanted to understand the impact of silver like so normally it is around 25% of the cell cost is the silver cost. Right. So in our new technology like how, how much are we expecting to you know cut down that and use of copper. So if we pin. Sir, if you can answer that,
Ashwani Sehgal
can you answer this question
Vipin Sehgal
because. Yes, thank you. Because of the silver price going up the silver cost in the cell is already probably it’s at 40% but as we already I have informed you that we will be using the latest technology where the silver usage will be.
We will be saving at least 15 20% on the silver cost because of this and then we will be again migrating to the copper paste. So there again we will save some, some more. So as of now it’s around 40, 45% is the silver. Is the silver cost is there in the Cell. I hope I have answered your question.
Unidentified Participant
It’s yes sir. And sir, why are we having this company out outside of Alpex Co. Like the space company?
Ashwani Sehgal
Okay, I’ll answer this question. So this is a high technology area wherein the technology lies with the two gentlemen who are PhDs and they are American citizens and they have investments in this technology and they own the patents also.
So they wanted and this kind of structure. So that’s why we have kept it outside the Apex Solar. So not as a subsidiary but it is in the group. So Alpex Solar will definitely reap rich benefits of this development.
Unidentified Participant
Okay? Okay. Okay sir. Thanks.
Ashwani Sehgal
And and one more thing is this still this space company when it starts the business so it will not only supply to helpex but it will supply to other cell manufacturers also.
Unidentified Participant
Sure, sure sir. And secondly, what is a DC and non DC order books like?
Ashwani Sehgal
So as I explained to you we have almost 1,900 crores of orders, order book and exact bifurcation.
I may not be knowing at immediately but you can send an email to us and Sakshi will reply to you on that.
Unidentified Participant
Sure. That is it. From my solutions.
Ashwani Sehgal
Thank you. Thank you.
operator
Thank you. Next question is from Apurva Bandi from Whitestone pms. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thanks for the opportunity. So my question is on the. As you mentioned the order book is of around 1900 crores. Right? So what is the execution timeline for this? I think it’s less than. You’re right.
Ashwani Sehgal
Yeah, yeah, yeah. As I told you that we are growing at a more than 2x and Mr. Damija explained to you in one of the slides that this year our growth is much more than that. So even if we grow with 2x kind of guidance which we gave so we will be doing around 3000 more than 3000 crores. But this question, I’ve already answered that that with the. We have a lot of orders coming flowing in and we don’t see any problem of orders. So. Yeah.
Unidentified Participant
And so.
Ashwani Sehgal
So 19004 will be not more than. They will not last more than 67 months.
Unidentified Participant
Got it.
Unidentified Speaker
We have also announced time period of completion of all the project on our stoke exchange announcement also. Okay, so this all will be completed by FY26.
Unidentified Participant
Also sir. Rick, what is the capex amount which. We are doing for the 2.2 gigawatt Topcon and the revenue potential format.
Ashwani Sehgal
So revenue potential because the majority of the sales will be to help us only within the group. So we have not quantified separate this thing because all the cells will be consumed within lpx but from otherwise you can make a an internal calculation so it will be. Okay. I can give you that estimate on an average 1 GW of solar cell which we will manufacture. So we will be generating a turnover of around 1,200 crore.
Unidentified Participant
Got it?
Ashwani Sehgal
Yeah.
Unidentified Participant
And so the capex amount which we are which put on is for the cell manufacturing.
Ashwani Sehgal
I’m sorry
Unidentified Participant
the how much amount like we have put in for the CapEx of 2.2 gigawatt.
Ashwani Sehgal
So it’s almost in the public domain. Mr. Damija, how much is in the public domain? This thing we are 800 and something.
L K Dhamija
Yes. Including the soft cost which is that IDC and everything put together and working for margin total cost is 825 crores. As a project cost the otherwise hard cost will be at least 750 crores.
Unidentified Participant
Got it? Got it. Last question is on that like, like we are hearing there is over capacity in India especially in the module side, right? So what is the impact of that. On a modules realization and demand?
Ashwani Sehgal
Yes, module capacity is growing rapidly and it is rather in fact it has grown much at a much faster level. But the India market is also growing at the rapid pace so there will be some kind of mismatch between demand and supply. But module manufacturing which is in a some kind of different genre that the name plate capacity and the realistic deliveries are in the region of 55 to 60%. So you would have seen our industry colleagues if you, I mean look at their top line and try to convert into the the capacity which is being utilized you will see that it will be around 50 to 55% or maybe at times it is lesser than that.
So we feel that large module capacity is not gonna hurt a lot but. And moreover now with the ALCM in picture from 1st of June the capacities will be dependent on solar cells. So we at ALPEX are slated to reap good benefits of this timely expansion and timely implementation of our cell business. Thank you. And moreover one more thing. Lot of module capacity is going offline also because monoper module capacity will be gone because in another six to nine months nobody will buy those panels.
Unidentified Participant
And so just my last question is that like as you mentioned that we would be using copper in our in a.
Right. So. So won’t it be impacting the efficiency of this?
Ashwani Sehgal
Okay, no, no, no. This is, these are the developments, this is the industry trend you would see if you check it internationally. All global leaders, they are trying to minimize the usage of silver and substitute it with copper. Or copper, some kind of. I would not like to name those technologies. So they are substituting which is. Which is the right way to cut down the cost and without compromising the quality of the solar cell. So we are also doing the similar kind of a business. I am myself not an.
I’m an engineer by education but still I do not understand this high tech solar based business. So maybe in the next meeting or something like this we will ask our colleagues from the Silver Face company to answer a few of your queries. Thank you.
Unidentified Participant
Sure. Thank you sir. And all the best. Thank you.
operator
Thank you. Next question is from ABHI Sehgal from Singularity. Please go ahead.
Abhi Sehgal
Good evening sir. Congratulations on a great set of numbers. So wanted to understand one thing more, a little bit more on the aluminum free business. Sir,
operator
sorry, your voice is sounding muffled.
Abhi Sehgal
Can you hear me now, sir?
operator
So you’re able to hear him, right?
Ashwani Sehgal
You’re better? Yeah. No, better,
operator
yeah. Please go ahead.
Ashwani Sehgal
So wanted to understand you all were one of the first entrants to get into this aluminum frame business. Wanted to understand what kind of. What is the benefit on a cost per what peak you expect to get from this because would it make sense to put the rather the additional CapEx into the modular cell line versus on the aluminum trim. So just wanted to understand your thoughts on that from a capital allocation decision.
Ashwani Sehgal
Okay. You are one Sagal brother.
Abhi Sehgal
Yeah.
Ashwani Sehgal
So I’m very proud you asked me this question. So what’s your full name? Okay, the thing is like this.
I answered this question when we are we were getting listed so we were the first ones to come up with the aluminium project aluminum frame production because at that time we felt that aluminum frame will create bottlenecks for manufacturers like us because the government is quite clear that everything has to be manufactured in India. And I’m very proud to share with you that that our decision at the time was quite correct and it was before time I would say so after our frame manufacturing. So companies like Premier and even worry everybody is setting up aluminum frame lines.
So and regarding the CapEx which you mentioned that if we spend the same CapEx on module or cell. Yes we can do that. But aluminium manufacturing, aluminum frame manufacturing imparts lot of freedom to module manufacturer because some frames are. Many frames are custom made. So and the apex former frame manufacturing is not very high and it is a smart move with the small capex you can generate handsome margins and generate lot of freedom which is given to our module line. I hope I have answered your question
Abhi Sehgal
to understand the cost because most of the frame today is bought from China.
There’s no issue on that. India has kept a minimum duty on it. So just wanted to understand how expensive more expensive RV versus the Chinese today.
Ashwani Sehgal
Oh I am not exact. I may not. I mean I per what peak how much money we will be saving. But I have a rough estimate that on our expanded capacity which we will be generating an additional profit of around 60 odd crore from the aluminium business in the next year. So which is not a small. Profit. And it can be converted into per watt peak also in this way. And one more thing the most important aspect is the government is already put in non tariff barrier on aluminum frames. And the manufacturers who do not have frame manufacturing they will they are likely to suffer a little bit on that count because we already have. So we are so some of our industry colleagues ask us please give us some frames etc. So this is a good and smart move. Thanks.
Abhi Sehgal
And so what would be the utilization of the aluminum frame line? Like so how you said module is 50 to 55.
What would it be for the aluminum frame?
Ashwani Sehgal
(Foreign Language)We are going to expand. Capacity utilization is almost as of now we are doing more than 75 80% which is a quite high.
Abhi Sehgal
Okay, so I’ll ask one more question Is that last one was that we see the bigger players expanding into modules like the bigger capacities. How do you see smaller players? Because there are a lot of new players who are also coming in with 2 gigawatt, 3 gigawatt 4 gigawatt 5 and then you have Vari Vikram and all at the 15 gigawatt. How are you seeing competition play out in the actual market? Because we understand price is also dropping to 12 to 13 rupees a watt peak also given in the recent times.
What I’ve understood in the market recently. So what did your thoughts on him
Ashwani Sehgal
abhi? Yes, there are a lot of new announcements and a lot of expansion is happening. And Mark, at the same time I answered in in directly this question that we not only this kind of expansion but new markets are also getting into the industry in India market is also expanding. So the CNA C and I segment is also opening up. And so market demand will keep on expanding also. Yes, the supply also catching up. And plain vanilla manufacturers like small manufacturers the market will dry up for them.
The people who have integration backward and forward integration. So they stand to gain a lot visa vis plain vanilla 1 GW to 1.2 GW of module. Hope I have answered your question.
Abhi Sehgal
Yes sir. Thank you. As a last question sir, by 15 or 20. How much can you pass on to this or to the module players? How does that work? Sir, just to understand if tomorrow
Ashwani Sehgal
I’m unable to understand your question now the voice is not good.
Abhi Sehgal
I was just asking how if aluminum price goes up, can you pass the difference to the cell player? Is it possible? Does the cell.
Ashwani Sehgal
Yeah, aluminum, yeah, yeah. Aluminum frame prices do affect the end module price. So aluminum as of now is around 13 to 15% of the cost of panel. So if it goes up we will have to increase the price. But we are insulated because we have our own manpad.
Abhi Sehgal
Yes,
operator
thank you. We’ll take our next question from Maitre S from Sapphire Capital. Please go ahead. Maitri, please unmute your microphone. Yes, please go ahead.
Maitri Shah
Yeah. Hello, good evening. Just a few questions. Firstly on the getting into the cells currently and you mentioned that these are going to be operationally much more efficient and also efficient on the cost side. What sort of benefits are we going to pass on? So you like the DCR cell modules will be much competitively priced to the current DCR value.
Ashwani Sehgal
Oh yeah. What’s your name?
Maitri Shah
Maitri. Maitri.
Ashwani Sehgal
Maitri, yes. If we will produce something at the least cost then our profitability will be increased, number one. Our competitive readiness also improves. So this way we will be benefited in both the ways. And it is always better to have a more efficient running factory than some factory which is not efficient. So it’s a very basic, basic thing and we will reap the benefits of this kind of technology and processes which we are adopting in this cell business.
Maitri Shah
And this cell, these cells are not going to be copper based. This is still going to be in the silver based. The next phase will be adding the corpus.
Ashwani Sehgal
Yeah, no, no, no, no. The. As Vipen, my other director informed. So we are going to substitute silver with copper. Not 100%. There will be few percentages of level and then the technology will recheck, recalibrate and then come back and like that maybe I do not know exactly when and how much percentage of silver will be substituted with this copper composite kind of a thing. It’s a evolving story and evolving technology I would say. And this will happen and. But it is difficult to comment as of now how much percentage can be substituted.
Vipin Sehgal
But just the starting will be.
It will be 100% silver. I mean the. It will be the standard procedure but again efficient.
Maitri Shah
Okay, and are we going to hedge the silver? Is, is there, is that going to be included as well going forward? Because now we’re going again going into cell manufacturing.
Ashwani Sehgal
I’m Sorry, what was the question?
Maitri Shah
Are we hedging the silver once we start with cell manufacturing?
Ashwani Sehgal
Hedging? We have not booked silver as of now and we will be starting this process very soon. And we do not know it is a good idea to hedge the silver at this moment. But we will take a call very soon. We are rather scratching our heads how to go about it at this moment.
Maitri Shah
Okay. Also you mentioned that the module prices are now strengthening. So is this, this, this the lag that breathing increase in silver prices now are now transferred to the cells as well. Is that the reason why the modular module prices are increasing? Or this is also more of a structure like the demand is increasing hence the price is also going up?
Ashwani Sehgal
Yeah. So there is a couple of reasons. Our demand is also increasing. Then the silver prices are increasing. Then copper prices are increasing. Then all 11 aluminium prices are increasing. And then there is a China story. Also the China is changing its basic structure of export benefits. They are withdrawing export benefits to these industries. So a couple all things added. So the prices are shrinking. Thank you.
Maitri Shah
Last lastly, this is much more of a future question. So now that we are into cells, do we see see ourselves getting into wafer ingots? Because a lot of the solar manufacturing companies are also getting into those manufacturing capacities. Maybe two, three years down the line. Is that in the plan?
Ashwani Sehgal
Correct. You are very right. This will be our plan. As of now, the policy for wafer manufacturing and in good manufacturing is not favorable to manufacturing. People are putting in place some kind of plan. But this plan is dependent on the government of India. So as the director of ISMA beginning, they introduced me as the General Secretary of isma. But now my position is Director in isma. And so ISMA is interacting with the government of India etc. So the government is coming up with a policy to strengthen the manufacturing of ingots and wafers. Once this announcement is placed in a public domain by the government, then definitely ALPEX will take a call on that.
So we are open. We are not saying that we cannot do it. In fact this interests me a lot the paper manufacturing. And we will take a decision depending on the clear policy initiative from the government.
Maitri Shah
Okay, that’s great. Also you mentioned that FY27 we are still guiding for a double growth or 2x growth. So are we targeting close to 4000, 4500 crores by 27?
Ashwani Sehgal
No, no, no no. Don’t get me wrong. We would like to do 4,000. But our original guidance was when our last year’s turnover was 750. So from 750 we gave a 2x that was 1500 incidentally. We have done 1500 within nine months. So more than 1500 in nine months. Now the, the, the markets will think that okay, we will do 2000 or something like that. And from 2x is from 2000. So we would like to maintain in the public domain that our 2x is from our 750crore and if we are outperforming then we should be given a pat on the back rather than putting us in a bigger firearm.
But we would, we feel that it’s a doable kind of thing.
Maitri Shah
Okay. And 4Q is it in line with how the 3Q has performed? Because we had a very good growth in quarter three. So do we expect similar, I would say similar avenues coming in fourth Q as well?
Ashwani Sehgal
We are doing very well in fact. And we will come back to you on that. We would not comment but we are growing reasonably.
Maitri Shah
Yeah. Thank you so much for answering all the questions.
Ashwani Sehgal
Thank you.
operator
Next question is from Bhavya Shah from 3A Financial Services. Please go ahead.
Bhavya Shah
Good. Good afternoon sir. Congratulations for the great set of results. So my question is what is our current realization per megawatt and after commissioning cell and aluminium frame what could be the expectation for realization per megawatt?
Ashwani Sehgal
I think I have answered your, I mean this question in other questions. So our realization as I explained will be around 18.5 or something like that and based. But once we have sell the price realization will not increase but the margin will increase because we are going to consume the cells within.
Bhavya Shah
Okay, got it.
Ashwani Sehgal
Thank you.
Bhavya Shah
And sir, all the capex that we are doing, module and cells all will be fresh line or used line from China.
Ashwani Sehgal
It’s a fresh line, brand new line and we will be inaugurating, we will be putting up into the public domain and I would like to welcome all of you to come and see for yourself. This is a brand new life. This is not a new.
Bhavya Shah
Thank you so much sir. For, for that
Ashwani Sehgal
I’m happy you asked me this question. Yeah.
Bhavya Shah
But my question is when we look at other peers, other companies, they are doing in 600cr they are commissioning 1gwh of cells in 825cr. LPEX is commissioning 2.2gwh of cell line that 2 latest G12R. So what could be secret or what could.
How. How we are doing this?
Ashwani Sehgal
Yeah. Ripon is answering this question. (Foreign Language) Yeah. Thank you.
Bhavya Shah
Okay. Okay. Thank you so much.
operator
Thank you. Next question is from Dhananjay Mishra from Sunidi Securities. Please go ahead.
Dhananjay Mishra
Sir, what is your arrangement? Am I audible?
operator
Yes, please go.
Dhananjay Mishra
So what is your arrangement with the. This solar cell supplier? Is it at fixed cost for certain, certain amount of inventory or if silver price increases we have to pay higher to them and that is why the margin is getting affected.
Ashwani Sehgal
If I’m correct I. I kind of missed a part of your question but you, you. You wanted to ask. Can you repeat the question?
Dhananjay Mishra
So how is, how is the arrangement with the. The cell supplier to us? Because we have order book of 1900 crore. So I guess in terms of megawatt that could be around 1600 megawatt or 1700 megawatts.
So how. How do we arrange the supply with the suppliers? And at is it at fixed price as on today or how do we book this cell capacity?
Ashwani Sehgal
A good question from you. The thing is we have orders from DCR and non dcr. So non. Non DCR is price sensitive which is dependent on the silver. But DCR market is a little different because the cell manufacturers are enjoying a lot of EBITDA margins. So over there we do not anticipate any increase in the price. And at the same time we are sitting on a reasonable good stock level of sales.
So we are in a way quite insulated. And some of our supplies are renegotiable which has a pass through kind of pass through mechanism is there. So if the prices increase we will increase the price or if the prices decrease we will decrease the prices. Thank you.
Dhananjay Mishra
So out of total order book of 1900 crore how much is the. I mean there is a pass through mechanism. If, if we are getting sale at higher price.
Ashwani Sehgal
As I told you there are three different components. Okay, so we have vcr, we have non dcr. Then we are sitting on some stock also and.
And there then the fourth is the pass through. So I may not be knowing the exact how much is the pass through but we. Sakshi, we can reply to them on email a little later.
operator
Sakshi, you’re on mute.
Ashwani Sehgal
But
Sakshi Tomar
definitely sir, we can report on the mail.
Ashwani Sehgal
One more thing, this question is you trying to assess that how much margin we might lose on that counter. Is that the reason?
Dhananjay Mishra
Yeah, till. Till the time we start our own. Because Q4 of this, this financial year and Q1 of the next financial year because July onwards we will start. We will start producing the cell and that will be also kind of 1200 megawatt or maybe lower capacity. But we will still have to buy. Buy from the market, right? No, no. So how the margin will look like for next two quarter. This quarter we did.
Ashwani Sehgal
Yeah, yeah we, we, we, we are somewhat insulated and we are covered I would say and we don’t foresee that it will be problematic but I would like to emphasize over here we are better prepared than most of our competitors.
Dhananjay Mishra
So this 14% margin can be is sustainable for next two two quarter at least
Ashwani Sehgal
you can form your opinion. I will not be able to answer that question.
Dhananjay Mishra
Okay, okay. In terms of order or. Yeah in terms of order inflow I mean how do you look for next six to nine months and whatever order we are getting is kind of 200300 crore order.
So can we get higher size of order once we have this our own sale capacity?
Ashwani Sehgal
We do not want to take very very large orders. Okay say let us say the order size is one typical order is a 800 crores. So that creates lot of issues with respect to the pricing and because if it is a 800 crore order so that means the supply time will be five to six months, maybe seven months also so many things change in five to seven months. So we are happy doing smaller orders of 200 to 300 crores and with the pass through mechanism.
And so this is our strategy on large orders and we feel that this is the better strategy than going in for a very large order and then getting boggled down by some unforeseen circumstances. Thank you.
Dhananjay Mishra
And lastly on the CAPEX side So for this 750 crore total capex you said on our own. So we raised money through preferential issue of shares and ncd. So how much more money we we may require to complete the CAPEX for this cell phase two as well as this module. So do we need to raise or it will, it will happen through internal accrual?
Ashwani Sehgal
Yeah, most of it is coming through internal accruals and we don’t have any plans to go to the capital markets again and whatever maybe there might be some shortfall.
We have already plugged in that and we don’t foresee any. I mean we will not going to the going, going back to the market.
Dhananjay Mishra
Okay so whatever if we need 100, 150 crore more we will do date. Right.
Ashwani Sehgal
Our E levels are very healthy. You can see it from our this nine month results which we have produced. So from internal accruals and if there is let us say small short one then we can raise a small debt from our bankers. (Foreign Language)
L K Dhamija
Yes sir. In fact this entire project cost for solar cell I mentioned including the soft cost that is capital margin and IDC is 825 crores. So out of 825 crores you have plan of raising term loan as debt portion of 400 only and balance 425 is coming from internal resources.
Ashwani Sehgal
Thank you. I think most of the questions.
Dhananjay Mishra
Okay, all the best. Thank you.
Ashwani Sehgal
Thank you. Thank you.
operator
Thank you. Take our next question from Ishima Bansal from Alpha aif. Please go ahead.
Ishima Bansal
Hello everyone. First of all congratulations for results for the quarter three. We have actually outpaced our quarter two numbers. Just wanted to understand why there has been a slight decline in the fat margins as compared to our previous quarter.
Ashwani Sehgal
I forgot I didn’t get your name. So the results are in line with the industry trends you would have seen. Our industry colleagues are also the margins have gone down a little bit on account of higher input costs and realization being stagnant at that time. So now the realization is getting better and we hope that we can go back to the margins but otherwise industry volumes we are increasing and we are compensating the addition to our EBITDA from extra volume. So we will continue to do so. So I hope I’ve answered the question.
Ishima Bansal
So as you mentioned that the margins there is has been a slight squeeze in the margins because of increase in the input prices. So if you can shed some more light that perspective. So which enterprises have increased?
Ashwani Sehgal
So the. There are two things have happened. So realization in some segments have also gone down and the buying price of solar cells they have increased. The dollar was also very. It all almost touched 92.5 or something like that. So these things and in. In our case, in the case of Alpex because we are expanding at a rapid pace and we are putting up so large capacities we incurred some capital expenditures where which have been. I mean paid from our this e only.
Ishima Bansal
Got it. Thank you.
Ashwani Sehgal
Thank you.
Ishima Bansal
What was average utilization in quarter 3? FY26 for the existing module capacity and expected.
Ashwani Sehgal
We are almost. Yeah we are almost doing more than 80, 75 to 80%.
operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I would now like to hand the conference over to Mr. Ashwini Sahal, managing director for closing comments. Over to you sir.
Ashwani Sehgal
I think I’ll ask Udaya Sahal to give the parting comments. Oh there over to you.
Udaya Sehgal
Hi everyone. Thank you for being here. We’re very proud and very excited. We’ve shared our results with you all and I think the journey is going strong, stronger than ever. And we hope to continue this momentum and keep publishing great results. And thank you for all the support, support, all the wonderful questions that you ask because they always help us think harder, guide us in a lot of ways. So thank you for always, always asking so many questions. It’s lovely to have you all join in every call and I think looking forward to the year end results now.
So all the best to all of us and thank you for joining in. Good evening.
operator
Thank you everyone.
Unidentified Speaker
Thank you everyone. Thank you.
operator
Ladies and gentlemen, on behalf of Alpec Solar Ltd. That concludes today’s session. Thank you for your participation. You may now exit the meeting. Thank you.