Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
GK Energy Ltd (NSE: GKENERGY) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Gopal Kabra — Chairman Managing Director and CEO
Analysts:
Tanmay Javeri — Analyst
Vishwender Singh — Analyst
Jeet Zaveri — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to GK Energy Limited Q4 and financial year 2026 earnings conference call from the management team we have with us Mr. Gopal Khabra, Chairman Managing Veteran CEO and Mr. Sunil Malu, Chief Financial Officer. 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 this conference call please signal an operator by pressing Star then zero on your touchdown phone.
Please note that this conference is being recorded. And now in the conference both Mr. Gopal Kabrah thank you. And over to you sir.
Gopal Kabra — Chairman Managing Director and CEO
Thank you very much. Very good afternoon to everyone. I Gopal Kabra, CMD of GK Energy. Welcome everyone. I’m very glad that you are here for the investor call along with me Mr. Sunil Malu, our CFO. He’s also present. Now coming to the subject more precisely on the as we have today declared our result. So I would like to bring quick overview on the past performance in FY26 our standalone revenue from the operation is 1532.54 crore business. It represents 40% growth yoy last year 1094 crore rupees business.
If I talk about the EBITDA level then in standalone EBITDA for the year is 313 crore rupees with 53.49% growth comparatively 204 crore in last year this is having the margin expanding to 20.44% compared to 18.64% in FY25. Now for what everyone is working like PAT after tax paid money. If we talk about. Right. So this is the first time the history GK Energy has caused the revenue of the 200 crore. We have profit side. Sorry so profit we have 201 crore rupees. It is a 51% YY growth comparatively 133 crore last year.
So if I talk about the pad side then we have improved from 12% to 13% the comparison and if I talk about the consolidate level all together the we morely concentrate on the standalone only. In consolidate level we have done the business of 1715 crore rupees with EBITDA of 318 crore rupees with the PAT of 204.3 crore rupees. So we have done the 199 crore rupees business into the our wholly owned subsidy for the DCR cell securing because we secured our raw material and for that we have this our subsidy to do this work now more precisely coming on the quarter four.
So revenue side from the solar system installation of decentralized system it came to 418.57 crore road with YoY last year it came 352 crore rupees. With the good growth EBITDA side also we have the good growth we stood 85.96 crore rupees compared to 67.43 crore last year. YoY growth is also quite good there as well. It is almost 27.5% pad side. If we are talking about then current close quarter is 59.05 crore rupees is PAT where which is almost 25% growth I would say where with the last year it was 47.26 crore in Q4 25.
Now when we talk about the number of system installations and we have installed 17,018 system during last quarter of FY26 which is 15% growth over to 14,797 system in quarter four of 25. So if you talk about the working capital because we are the basically asset light model where working capital is much more important. So our net working Capital stood at 112 in standalone in console level of FY26 compared to 90 days in FY20. 180 days if you are comparing 180 days was 183 days was in H126. This momentum of working capital was primarily driven by the revenue growth and hereby recovery from the certain large state utility companies in the second half of the year net we have been net surplus cash at the same time we ended FY26 with the net surplus cash and cash equivalent is 240 crore rupees compared to net debt position of 155 crore rupees in FY25 which it’s a very good positive acceleration growth symptom for us to go ahead operationally.
We have installed 61,000 plus system in FY26 that is 34% increase over the last year. Last year we installed 45,500 systems. So this ability to scale rapidly while maintaining the quality service reliability and technology defined and it’s a satellite business model supposed to extensive tie up with the OEM ODM manufacturer ecosystem decentralized logistic infrastructure one of the sectors we are one of the sector’s largest field execution network. The growth was primarily particularly strong tailwinds in the Maharashtra and MP supported by the demand.
What we have received in spite of the PM Kusum has been slowed down but we have the business of the Margaret and the MP both side. If I talk about the although we do install 3 kilo or 4 kilowatt 5 kilot kind of the system but in last year we have cumulatively is whole year When I club the all the system what we have installed it is 276 megawatt we have installed in a single year. It is to be noted that by 3 kilo 4 kilo we have done this 276 megawatt. If I talk about the overall then we have all closed.
We have already installed 617 megawatt of the renewable energy across the India in the our journey as of now. And it’s like unlike traditional manufacturing led renewable energy business, the company operates through a scalable execution focus architecture that combines supply chain integration, decentralized warehousing, logistic infrastructure, field deployment capability and long standing ruler market penetration. This enabled rapid scale availability with relatively lower fixed capital intensity while maintaining operational flexibility across the multiple renewable energy category.
The company today is operate across more than 7,500 village. So this is one of the milestone I can say we have reached to 7500 village with having the manpower of 1300 plus people with us. So my distribution network and my decentralized manpower are the very strong support pillar I can say for the our business and that is giving us the good strong holding in the business. If I talk about as on date order book times 710crore rupees. This is what the order book we have right now. And if the rooftop side also we have started expanding.
We have already installed quite good number of these rooftop system and we are expecting some good order book in coming future under the smart scheme which is driven by the state of Maharasha. So this is very conclusively I would like to say right now and I would like to request coordinator to open for the Q and A. Thank you.
Operator
Thank you very much. We’ll now begin with the question and answer session. Anyone who wishes to ask a question may the star and one on the custom 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. Participants, you may press star N1 to ask a question. The first question is from lion of Tanmay Javeri from Winfresh Capital.
Please go ahead.
Questions and Answers:
Tanmay Javeri
Hi sir. Congratulations to you and your entire team for delivering good set of numbers. So before I begin with my question, I would like to make a small request to our management team. We would appreciate if our company becomes slightly more active in engaging with investors and analysts during the quarter because as a stakeholder it gets it helps us with better clarity and transparency regarding the business development. We had highlighted this similar concerns in Q2 control as well because I feel that there is some communication gap between the management and the stakeholders.
We didn’t even do a control post Q3 results and whenever we tried to reaching out to our CS and CFO to facilitate a management interaction, either the management was unavailable or the team was occupied. So just a humble request from our side to improve our investor communication.
Gopal Kabra
Definitely point is noted and we will, you know make it show whatever the best we can do it. So H1 we did it and finally we are doing it. So we will take this opinion into the consideration and we’ll take appropriate call on it.
Tanmay Javeri
I would like to
Gopal Kabra
Listen your question
Tanmay Javeri
For in Q4 we had installed around 17,000 pumps and around 19,000 were installed in Q3 so that’s roughly 36,000 pumps and we were targeting around 50,000 pumps in next to so I just wanted to understand whether the demand was slowed down across the sector or was there any execution related challenges.
Gopal Kabra
See demand is still there. Demand is not at all a question. It was slightly delayed due to the some raw material delay but we able to cope up I believe so that you can see with the number it’s not like that we have been slow down. It is sometime it happened which is beyond your control. But we took the control very well. On the complete supply ecosystem we have made some certain changes and we are able to get the good number in the future.
Tanmay Javeri
Right sir, execution was top notch. I see our margins are also in debt whereas our peers who came out with the results they had a margin clip as well. So heads up for that. So my second question was how do we look at FY27 growth perspective? Because PM Kusum is getting delayed for some time now. Initially it was expected in first week of April and now it’s been pushed towards June. And so how are we looking at the root trajectory revenue visibility for FY27?
Gopal Kabra
So now on the PM Kusum side I would like to say that definitely delayed but it’s getting delayed with the very good preparation the best of knowledge I have. So we are expecting a you know, superb number allocation countrywide. If you listen the how the you know leaders of the country is emphasizing towards the renewable energy and the solar pump. So we are expecting that it will be good and Talking about the numbers I see, you know we would like to close to the double number of what we have done this year.
This is what the we are targeting right now. And we see that much growth potential available in the market. And being in the leadership position where you know it’s a market mode scenario. It’s not like that we directly get the order from the anywhere. It’s like the farmer who selects us. So when we are able to grow, we understood that we have created a brand value. And that brand value has push us up us to enter into the very close aligned sector which is called the rooftop. Right. So we started with the rooftop.
Once we even we have to start the rooftop because of the pressure of my customer from the solar pumping side. Okay. So we are expecting rather than expecting I would say that whole management would try to double the number what we have delivered on the revenue side. This will be our target.
Tanmay Javeri
That. That’s fantastic sir. So one last question before I join back with you. So which new states apart from Maharashtra and Madhya Pradesh have we entered this year or we are expecting an order?
Gopal Kabra
See, this year I am not expecting to expand a new state. We are already expanded or have the presence from the up, Haryana, Rajasthan, mp, Maharashtra, Chattisgarh. These six states are sufficient as of now for the pumping side. Because this pumping business is connected with the farmers and majority of the farmer or the required farmer base is enough for us right now if we get certain opportunity we are open for the business. But as of now being management, we are not looking to expand to the other state.
We would like to have the major business in the same area again.
Tanmay Javeri
Right? Right. Because there was one tender by Karnata government in month of Jan. So as we didn’t receive any order from that side so we didn’t participate in those tenders.
Gopal Kabra
See, we have not participated. Being management, we are very clear. We understand what is the capability, what is the material availability. What is the bandwidth we have just for the sake of it Going and taking order is not the concept of the GK energy. Unless until we are not pretty sure we don’t enter. I just want to be very much sure that. Okay. Money is also available. State have the money. Central government is giving the money. Farmer is having the requirement. Then it makes sense for me to enter.
So I believe I find a good better opportunity. The state where we have made I have already mentioned to work.
Tanmay Javeri
Perfect. Thank you so much. So that’s it from my side. Wish you all the best and hope to see you in person.
Operator
Thank you. Next question. Is from Nano Vishwender Singh from Prudent Equity. Please go ahead.
Vishwender Singh
Yeah, hi sir, am I audible?
Gopal Kabra
Yes, you are audible. Please go ahead.
Vishwender Singh
Congratulations on a good set of numbers. I just wanted a clarification on the exhibition part. So we had guided for somewhere around 70 to 75,000 of homes to be installed but we did somewhere around of 61,000. So are we facing any execution delays or something?
Gopal Kabra
See it was in the last two quarters we got some, you know scenario rainfall was there in the sudden rainfall was there in the Maharashtra if you remember in the last quarter plus we got some hit back from the material supply in the last 3, 4 week of the march but we reached reached to the 60,000 plus number where we were guiding 70,000 and this I believe this is what the best we delivered but we would like to double up the number this year. This is what we are intending now.
Vishwender Singh
Okay, we have reached to the
Gopal Kabra
15,000 plus monthly installation capacity right now. I have developed that much bandwidth for us and again it’s a completely asset light mechanism. We are not going for any capex. It’s like that. We got the very fantastic OEM ODM suppliers with us. We have come with the long term agreement with them. Agreement in the sense it’s like designing aspect understanding Sometime it’s mou sometimes it’s a clear understanding for the long term. So this kind all kind of the thing will give us the good support to achieve the you know, double side what we are targeting.
Vishwender Singh
Got it. And another question on the input, raw material input. Right. So most of the peers are facing, you know, increase in raw material prices. So what other steps are we taking to mitigate this volatility risk in margins.
Gopal Kabra
See fortunately I would say you know for in the case of GK Energy that only I can answer. We have some forward agreement, we understand this scenario, we understand the supply chain and being a satellite we always get the opportunity to make the very good friend in the industry of the one for one product. I have two to three good suppliers in the sectors and we occupy the 3040 to 50% of manufacturing capacity. And due to the long term agreement with the vision for the freezing the price. My vision is always remain that, you know, whenever I take the order I get clarity.
Okay, this margin I will have. So I go and I freeze the price on the day one for my three months, six months supply side. I don’t rely on that. Okay, we will take it with the price up down. No, we are Asset Light Company. We are, we are happy to have 1% less profit. But we want to be very clear what we are going to earn it. So we didn’t got any kind of the music due to the you know price increasement or whatever you are saying. Plus the as the volume is going up even I am getting the benefit of the volume also.
So ultimately for the getting the margin it’s like procurement, it’s like execution, it’s like supply chain management. These all efficiencies are required. And as we are not engaged into the manufacturing stuff that give us the immense time to understand each separate category. So for the model supplier we have some good tie up. So he give us the. You know in our brand for the pump motor we have some good supplier who gives in our brand for the controller same thing is there. So our team is not occupied into the that side.
We are purely focused on the EPC side. So that’s why we will be able to deliver it.
Vishwender Singh
So we can expect similar range of margins going ahead.
Gopal Kabra
See even last call also I said two digit margin right now also I would say that two digit margin would like to keep it. We believe into that saying that. So rather than just saying that you know we will do it. I would say that we will try to intact two digit margin. If you remember my last con call because earlier gentleman was there in the last con call I said that we will try to keep or we will keep the intact margin. So we have delivered more than what we have said. So with the same formulation right now I’m saying that we will be in the try to be in double digit margin.
Let’s see what best we can deliver.
Vishwender Singh
Okay, got it. Just last confirmation you recently got a 350 crore order. So our order book as of now is 700 odd crore. So does that include this order also?
Gopal Kabra
Yes it include that order also the same thing is mentioned in the presentation also IR presentation is given where we have very clearly mentioned order book as on 31st March and include order received post April 2026 totality 710 it you can find in the investment presentation as well. Investor presentation.
Vishwender Singh
Okay, got it. That will be all. Thank you sir.
Operator
Thank you. I request to all the participants kindly limit yourself to two questions per participant and rejoin the queue for a follow up. Next question is from line of Ashish from InvestQ PMS. Please go ahead.
Vishwender Singh
Hi Gopalji and team some pretty good numbers. So just wanted to understand what is happening with the tendering activity overall and is there competitive intensity? Because what we hear is that realizations and margins probably can be under pressure going ahead. So let’s wanted to understand your point on your. Your views on basically what kind of ordering intensity for the industry and for GK you would be expecting in the next year and from which states or maybe since you’re Maharashtra dependent.
Basically I understand that part. But across what is the scenario? Because we are seeing different things happening in different states as far as intensity is concerned. So your view would be influenza.
Gopal Kabra
Okay. So now coming on the tender side. Definitely we have seen the price is not having the different range. But this different range is coming with the heavy volumes. So when you are into the business, when earlier we were selling hundred pumps in a year versus when we are selling the you know 60,000, 70,000. So definitely price cannot remain the same. And I believe this competitive age is going to bring us the more business. So personally being GK Energy management we are not worried on that side.
You know, because of this thing we should be worried. I believe it’s a sensible players are there in the market. Those who bid. And it is having a good profit margin to have if you know how to control each and every component of your kitty. So that is one thing I would say. And second was on the realization. Am I right? Your second question was on realization.
Vishwender Singh
Yeah. So just wanted to understand because you said that you you would be aiming to double your turnover. So it is pretty clear that you are seeing a decent order book which will be there for you as a company. But in general because PM Kusum kind of delayed or maybe so we are seeing that the orders have been a bit lumpy, right. I mean so if you could just give us a picture of how you are seeing the sector from consumed from different states. What is happening.
Gopal Kabra
So see right now 700 plus crore rupees order we are having. That’s point number one. Magal Tala phase five yet to just open. Again we are expecting because in phase four itself we got 350crore rupees order. Right. So phase five it’s under evolution that is supposed to get open. So we are expecting order from there. Then we have applied for the already smart scheme where the 1 kilowatt system supposed to be get installed there we have. We are expecting a sizable number there also we are expecting 300400 crore rupees business.
So 700 crore rupees business already in hand. Plus this both together 700 we are expecting. So 1400 crore rupees order should be there for the before the quarter one get ends is expected. And out of that water we will execute it that’s the point number one. Now looking towards the PM custom. It’s got delayed but it’s. I want it to delay. It’s like the technical specification to everything is getting change over there. So that is a good thing is going to take place. Because we want to deliver the maximum utilization of the asset getting deployed into the field.
It’s okay. It got certain delay. That’s okay. But it will come up till that we are working with the Margaret rooftop system. We are having it right now. Now talking about the state wise. If you talk about definitely right now for the coming till H1 or quarter 3, Maharashtra will be concentrated base. Because whole country’s volume for this pumping is coming from Maharashtra. It’s not like GK Energy. Everyone has to be from here. Only if he’s not from here then there can’t be such a great volume.
So up to quarter three will be concentrated on Maharashtra and parallel we will once Kusum will start with the PM Kusum name or whatsoever it will come that will be there rooftop. We have already started there also. We are having the clear projection of the good order book. So with this all we will be able to reach what we are targeting.
Vishwender Singh
Okay, so you said doubling of turnover. But what I mean will it be large portion of rooftop also in that or will it be primarily the pumps?
Gopal Kabra
Definitely there it will be having part of the rooftop a sizable number from rooftop. And we are slowly going towards an EPC of the megawatt scale as well. So we might have some megawatt scale epc. It’s not confirmed right now because I don’t have the confirm order in my hand. But we are eyeing on that. But majority will be from the rooftop and the pump both together.
Vishwender Singh
Got it. And so finally if I can ask one more question. What are the feelers that you get from the government in terms of Kusum? I mean what we have been hearing from different quarters is that given the. Given the implementation of the earlier scheme, government is basically the first. Let’s complete the initial allocations with the earlier scheme and then we’ll move to the side or something like that. I mean is that the case or is it something else on the government that utilizing things
Gopal Kabra
See that really government side what is their real thought from overall Kusum prospect is different because it have the component A B C. There are three component. Okay.
Vishwender Singh
Yeah.
Gopal Kabra
Now talking about the component B where we did the major business for the company. So it is the most sensitive successful component of the PM custom. If you just go to PM Kusum Website you can see that the highest installation or highest target is achieved under PM custom component B only not by A, not by C1 so might be it is due to that arc it’s. It is saying that and we here as a composite PM question when we talk about purely component B so it is a successful business model.
Vishwender Singh
So for your voice it seems pretty optimistic but when we talk to peer it’s like things are not in control as of now. So two divergent views we are getting actually
Gopal Kabra
See what happened. You know I’m not capital intent so my worries is not in that mode. If tomorrow component B in place of component B where we have the off grid pump let’s assume tomorrow grid connected pump come. Okay,
Vishwender Singh
So for
Gopal Kabra
Me there is no difference. So I have not made any 300, 400, 500 crore rupees invest in Capex mode.
Vishwender Singh
What
Gopal Kabra
We are doing we are utilizing their ideal manufacturing capacity because in the country I believe when we have the sufficient manufacturing base let’s utilize that base where it become a win win situation. I get the best price for the manufacturer sometimes what are the price I buy my product I understand from the market for the small manufacturer it is more than their manufacturing cost.
Vishwender Singh
Yes.
Gopal Kabra
So you know that is the volume we are getting it and you know when I understand there is ample manufacturing things are available that’s why we have dropped the solar model manufacturing. I don’t want to become a, you know, let’s apply the, you know best and whenever we will go into manufacturing it will be the new tech thing not into the commodity business. We are not interested.
Vishwender Singh
Okay. Anil sir, one more thing. I mean would you say that the margins will be maybe upwards of say 16, 17% for the next year or you are seeing any change in the overall margin trajectory for the company. So
Gopal Kabra
You are talking about the PAT or ebitda? EBITDA. Right now also we have good.
Vishwender Singh
I think it’s a 20% right now
Gopal Kabra
We have a 10 to 15% variation that may take place. It is very early to say considering the geopolitical situation but fortunately our majority of the component is made in India so we don’t have the direct impact. So let’s see. We would like to do more positively what are the best you know, profit we can bring into the company?
Vishwender Singh
Sure. Okay. Thank you so much. All the best.
Operator
Thank you. Next question is from the line of Samir Shah from Valuequest Investment Advisors. Please go ahead.
Vishwender Singh
Hello.
Gopal Kabra
Yes please.
Vishwender Singh
Yeah, hi. Congratulations on the good numbers on the margin or competitive intensity or whatever the were. So Many players in the pump market, etc. So one is on the competitive intensity, if you can say how the situation is and second on the working capital going forward. What is the new normal?
Gopal Kabra
Okay, so competence intensity for the manufacturing of the solar pump. So let me tell you, I have every 15 days one good company at my doorstep to sell his pump. So that much it’s a competitive, it’s a commodity now. So what we do it, we take the best supplier, we find the best supplier who is ready to give the qc, who is ready to do the production as per our standard. We finalize that. So intensity wise, yes, commodity is there. So that is a highly competitive thing now as a solar pump. Because solar pump is not a pump.
Basically solar pump is the module structure, pump, motor control, Many things are there. If you talk about the EPC side, solar pumping, then I won’t see a huge competition there. I see that for the right people there is a fantastic opportunities available because it’s a brand calling business driven model is there. So you’re the farmer who selects you. So your brand has to have the recall from the, you know, various area. That’s a one thing I think I have answered. If not, I will answer with your question again.
Now working capital side, if you are talking about so definitely working capital, it seems to be little bit more. But if you Compare with the H1, it has been come in very practical mode and it shall remain into this range only. This is what we are eyeing on it now.
Vishwender Singh
So whatever is this March working capital that will be, that will be the working apple going forward, which is what? 140, 150 days.
Gopal Kabra
Yes, you’re right.
Vishwender Singh
Right. And just you know, a little double click on this here FY20 if say Kusum 2 because the way they have given an extension to companies to install, you know, by end of the year. I think March 27th is now the revised deadline. What gives us confidence? I mean on FY27 Kusum 2 will come and it will come better. But what is this thought process of extending it to March 27 and will will that impact our numbers for this year?
Gopal Kabra
So they have increased up to December and March. That is right. For the component, other component where the installation has to take place. My confidence is coming with the Magil tala right now. Because in Magil Tala we have very clear order book and it’s up to phase four now. Further three, four phases are yet to come. So that is very clear business visibility apart from PM Kusum. Second, we have already started rooftop there Also we see very good business in pipeline. So that is also good visibility.
And PM Kusum 2. Anyhow as I said I’m eyeing that PM Kusum business from quarter three onwards only. So for H1 we are very clear. And for P2 H2 also we are very clear. Because it has to get implemented. Now the looking towards the diesel and all scarcity, what is taking place? It is the solution which is available for the market.
Vishwender Singh
Right. So in terms of numbers then what are we. I mean what are we penciling in for this doubling Again if you can,
Gopal Kabra
We are eyeing around 1 lakh 20,000 to 1 lakh 40,000 palm. With that we are looking through around 2200 to 2400 crore business. If you talk about the numbers and from the rooftop we are eyeing around 600 to 1000 crore rupees in range between. So like with all together we are eyeing around 3000 crore rupees plus this much. So that’s why rather than I would say number I’m saying doubling the number. Because flexibility has to be there into the pump and the rooftop. But all together it will arrive
Vishwender Singh
Perfect. Thank you and all the best. Thanks.
Operator
Thank you. Next question is from the line of Neera Vasa from GC Holdings. Please go ahead.
Vishwender Singh
Yeah sir, just wanted to understand how if you want, if you are targeting a revenue of close to 3000 crores what can be the working capital requirement and how do we intend to fund that requirement?
Jeet Zaveri
So
Gopal Kabra
Working capital. See we just. If you see we have achieved 1500 crore rupees business where we got the majority of the equity in the month of October. Okay. So now if I talk about the totally with the equity what we have raised plus what are the profits we have plus credit line what we are getting. And we have reduced our inventory days as well. If you look towards the number, my inventory days has been gone up to. Gone down to 21 days which is we would like to reduce more. We are approaching just in time.
And the working capital side which is we are Talking about the 140150 days which is the ideally very high. Ideally we would be trying to reduce that. When we do the all calculation of reducing the inventory days and having the good credit limit possibility if required whenever with our vendors already raise equity surplus reserves. What we have gained this all together is sufficient to reach the given target.
Vishwender Singh
You can elaborate a bit more. 888 crores is our net worth and FY26. Right. And 3,000 crores is the targeted revenue. And if I. Even if. If around 30 is the working capital intensity. Which means we need 1000 crores of working capital requirement. Am I right? No,
Gopal Kabra
You. You have to repeat your question please sir.
Vishwender Singh
Our net worth and FY26 was 888crore rupees.
Gopal Kabra
Right? Right.
Vishwender Singh
If we are targeting a revenue of 3000 crores our working capital requirement will be close to 1000 crores. Is that right?
Gopal Kabra
Right.
Vishwender Singh
So that is what I’m trying to understand from how do you intend what can be the BG or LC limits which can come in and how do you intend to fund that? You can be a bit more granular. It would be really very helpful. And what can the approximate cost of this 1000 crores of working capital.
Gopal Kabra
So see if you’re talking about with the available. What are the money I have with that plus bank debt. So bank debt also we have. We have certain limit limits which is already assigned. Although we were sitting with the 240 crore rupees surplus cash. That’s a different scenario. But we have not closed the bank limits. So we have the CC and BG limits and that will get enhanced as and when required.
Vishwender Singh
I will touch base with the CFO later on this. Thank you very much. Yeah,
Gopal Kabra
Thank you.
Operator
Thank you. Next question is from man of Jeet Zaveri from Via Financial. Please go ahead.
Jeet Zaveri
Good evening sir. Congratulations to you and your entire GK team for the great set of numbers. If possible can you please provide a bit more clear guidance for EBITDA margins even if it’s not exactly precise. Your guidance of two digit margin seems to be a very broad classification to us. It would be great if you could also provide a guidance for EPC business and solar set trading business separately.
Gopal Kabra
Okay, we will work on. Because right now it is not work and kept it ready. So we will work on this and we will try to give you.
Jeet Zaveri
Thank you, sir. And my second question was on Q4 specifically our revenue was down about 6 to 7% from Q3. Can you help us understand the slowdown in this specific quarter?
Gopal Kabra
We could not do the installation. What we were eyeing that time because of the rainfall and the war started in the month of February. And so there was sudden impact on the some raw material availability which occurred into the last two, three week of the March. So. And the rainfall. These were the two reason why we could not do it. And although from 70,000 which we were guiding 70,000 plus so we came to 60,000 plus. And there is a gap that I have in the beginning of the call also I have said that so.
But Coming your current financial year, we are going to recover that all because we are sitting with the orders. So order is already with us.
Jeet Zaveri
Okay, thank you sir. Be in touch with your team for guidances on EBITDA margins for the two businesses separately. Thank you.
Operator
Thank you. Next question is from the line of from Walford pms. Please go ahead.
Vishwender Singh
Thank you for the opportunity and congratulations for good set of numbers. Sir, I just wanted to understand that in Magil Tela there has been comments that the realizations have went down overall and with many companies being in Maharashtra what competitive bidding is. Could you just comment on the competitive bidding? Are the prices really going on? Are we also bidding lower and lower?
Gopal Kabra
See
Vishwender Singh
Energy,
Gopal Kabra
Whenever it bid, it bid with the appropriate required margin only. So we never bid lower which is appropriate for the market. And as I said that you know price differentiation is arriving but the volume is also going fantastically up. So when earlier a single, you know person was doing four installation in a week, now he has to the four installation in a day. So I believe that when the volume goes up that time you can definitely renegotiate discuss with your vendors. For the price discovery you have to recall the price you have, you know expenses goes down because your volume goes up.
So ultimately it’s the art of the doing the business to keep your margin intact. And definitely when the sometime the price variation come positively on this side so your volume also go up because the implementation will go more numbers. So ultimately is what you are gaining is matter. So whether by doing 100 number or whether by doing 110 number. So I believe 110 what’s wrong in that?
Jeet Zaveri
Correct, correct. And in terms of the order book, what part of your order book is from Magal Dala Currently
Gopal Kabra
Mostly is from Margaret majority I would say. And the MP also we have, we have rooftop also. It’s a mix.
Jeet Zaveri
Could you just give a rough idea about the rooftop part
Vishwender Singh
In terms of numbers?
Gopal Kabra
Rooftop part in the terms of number. We have already installed more than 5 megawatt right now and we are having many orders in the pipeline as well as the smart scheme. If you are aware of the master. Because I think when you are talking about Miguel Tela you must be aware of the smart scheme which is a 1kW solar rooftop system. There also we got the impanelement there also we are looking the very fantastic huge number of the volume definitely there. Our intent Is to reach 1 lakh household in that area.
Although margin may be little bit less. But we want to do it because see ultimately our Intent is to reach GK as a brand into the ruler semi urban urban households. So we are getting fantastic opportunity that will get utilized for getting it. And that when I’m talking with you, the retail number has been not considered into this Retail would be the icing on the cake.
Vishwender Singh
Okay. Okay. And in terms of our balance sheet sir, we have added about a 100 odd crores of fixed assets. Can you. Can you just. What. What things have we added in our company?
Gopal Kabra
It’s our corporate office.
Vishwender Singh
Okay. And on a per month basis sir, what capacity you know what run rate can we expect going forward in terms of you know, pump installations, Solar pump.
Gopal Kabra
See my team is equipped, get ready training and everything has been. Because you know I cannot do it double in a immediate basis. So we have been planning since couple of months in past. So my current capacity is around 15,000 system to be get installed in the remote location.
Vishwender Singh
Okay, that’s it from my side and all the best for the future.
Operator
Thank you. Next question is from Lionel Smith Gala from RSP and Ventures. Please go ahead.
Vishwender Singh
Yeah, thank you for the opportunity. So just doubling down on the pm. Yes, it might be delayed a bit but it’ll come. So if we consider the combined central state and farmer contribution, the total program outlay could be in the range of 1.5 lakh crores. Within this what proportion of the opportunity does GK Energy realistically expect to capture? Additionally as an EPC player under this scheme does GK undertake end to end procurement including pumps, controllers and related components? Or is the scope largely limited to implementation?
And in case of procurement is a part of our scope, do we earn margin on that as well?
Gopal Kabra
Okay, so I will go reverse procurement is in our scope.
Vishwender Singh
We do that not only end to end buying, we do this control on the quality side at the place of manufacturing.
Gopal Kabra
So although we are asset light but.
Jeet Zaveri
Can you please mute your line from your side. Yeah.
Gopal Kabra
Okay. So procurement side we do end to not only end to end, we do control on the quality aspect. At the time of manufacturing itself. My dedicated team sits into the our supplier OEM ODM places and they do control. Now this is what we do on the controlling side for the and the procurement side it’s an end to end in the GK Energy brand itself. It’s not like of anyone’s else brand. And your another question was related to farmer contribution, right?
Vishwender Singh
No, no. My question was regarding
Jeet Zaveri
That
Vishwender Singh
We.
Jeet Zaveri
I assume
Vishwender Singh
The total outlay of PM Kisum 2.0 to be around 1.5. And
Gopal Kabra
What is of GK Energy share is going to be. So rather than saying that, you know, because the steam itself is going multifold. If you take the past number of the GK Energy’s contribution in the whole business of the PM Kusum which is got installed 10 lakh plus palm that itself you can see it is close to 2 digit around 9% is what the countryside we have contribution. It doesn’t include the Magil Tala Mageltala scheme. We have the contribution more than 15%. So there are two different schemes. So when you have what are the number you have said which is Pan India and if you just consider 9% of that.
So I think the answer is itself is available there.
Vishwender Singh
Okay, okay, that was helpful. Next question is beyond the PM Kusum driven opportunity which will last over the five to seven years coming forward. What does the steady state business look like for GK Energy in terms of addressable market core service offerings and the growth drivers. How are we positioning our company to sustain growth once this policy led tailwind normalizes?
Gopal Kabra
See point number one. PM Kusum six years, seven year or maybe 10, 20 years. Let’s see. I believe it will go up. But we are purely you know end to end company who don’t do the manufacturing of specific components. So we have freedom of flexibility to shift the our area of the working. We have the expanded very vast ruler network. When we will reach to the 1 million household by the time when what you are talking about. Because company have the set target that by 2030 we should be reaching to 1 million household.
So definitely that time we can have the whichever whatever the required product will be there. We are having the rooftop also which will go ahead. Now we are eyeing towards the in long term best is also we are looking which is going to support us. And right now I can project for the five years. Definitely might be two years onwards we will think what area we have to begin. So I can able to answer that your question what will be down to seven year probably after two, three years. Because more than five years projection is very difficult.
Because right now the geopolitical scenario if you see that on the lighter mode even we are not aware about that what will happen into the another six months.
Vishwender Singh
Okay, okay. That was. That was helpful. Thank you.
Operator
Thank you. Thank you. Next question is from. From Pinpoint X Capital. Please go ahead.
Unidentified Participant
Hi. Thanks for the opportunity. So in the rooftop solar business is that the strategy same of being asset light? And if not so what kind of products that we are thinking to backward integrate ourselves into? And structurally sir, what are the ebitda margins in the business that you are looking at
Gopal Kabra
It definitely is going to remain as an asset light. But this my asset light model is work differently. Okay. So if I talk about my asset light model in this we define the manufacturing process. Our standards, our qc, everything is with us only. So we have created ecosystem which is as equal as like having your own manufacturing setup. But you don’t have the asset light. So if very simplified said so my you know, decentralized energy network, it’s for the, you know, asset light model through OEM ODM based manufacturing ecosystem.
So you utilize their ideal capacity for our product to get manufacturing. That’s a point number one being asset light. So backward integration. Yes, it is an indirect backward integration. Very well controlled. If I talk about I have the solar module supply from the four different state. So my transportation cost to everything goes very down. I’m not dependent. Okay. I have to get my product travel 900km. Just because I’m having manufacturing. I don’t have that thing. I have one supplier sitting in the Chhattisgarh.
One is in the Gujarat, another is sitting into the up. So one is having then Kerala. So wherever I go I can take that product and that gives my immense margin control thing. So this is what on the margin EBITDA margin. As already said that we will try to keep what are the best we can do it with the pad side. We would like to be at the double digit. Double digit
Vishwender Singh
In the solar rooftop business as well.
Gopal Kabra
Primarily yes we would go on to it. But might be little bit less in the rooftop system. Specifically Smart team where we are implementing 1kW might be less. We let’s see what are the best we can do it.
Tanmay Javeri
Understood. Thanks sir. In the PM square Yoda, you must require dcsl. So have we have some long term contracts or how are we looking at sourcing cells?
Gopal Kabra
We have long term contract already we have signed for the current financial is 875megawatt with the one of the prominent supply in supplier in the country. We have signed this agreement last year itself. That’s why we are pretty sure what we are going to do in coming year.
Vishwender Singh
Okay. And so lastly you said on the doubling of the business rooftop solar will also be a meaningful part. Is there a quant? Can you quantify that up to us an extent
Gopal Kabra
Right now it will be. You know, it will be a mix of that majority business will remain into the pump and the rooftop both together.
Vishwender Singh
Okay. Understood sir. Thank you so much and all the best.
Operator
Thank you. Next question is from the line Of Kaura Bhagarwal from VA Capital. Please go ahead.
Vishwender Singh
Good evening sir.
Gopal Kabra
Good evening.
Vishwender Singh
So my question was expected revenue which we have for FY27. Out of that we are expecting 1400 orders between H1 in which I think we will execute thousand to 200 crores of revenue in H1. And suppose we are depending on PM system for the H2. And in case if it does not come to we still expect 1500 crores revenue in second half. Or will it be downgraded?
Gopal Kabra
See, I don’t think so. PM Kusum will get cancelled if such kind of the decisions are taken. So that might be having the 1/4 impact. As we have already moved into the solar rooftop. The same manpower, same infrastructure, same warehouse is required for the solar rooftop. Fortunately we are not eyeing in the urban area where the majority of the rooftop business competition is there. My complete network, my warehouses, my team, my manpower technicians are into the village area. There we don’t see much more bigger competition for the rooftop business.
If we don’t see the possibility of PM Kosum 2.0 coming we have the another area of the business that is solar rooftop. We will clearly focus on that and we will definitely try to bring the number what we are talking.
Vishwender Singh
Okay, so worst case we are Talking about the 2500 crores revenue and the best case can be 3000 crores revenue. 2.0 is not delayed.
Gopal Kabra
And more important it’s not about the this is the scheme is not like you know government scheme where the other just there, you know giving the you know freebies. This is a win win situation. If you look towards the any state discom those who have implemented their grid losses has been reduced. They are turning into the profit. That is what the happening with solar pump. So it is a win win situation. That’s why it is pretty sure to come. And acceptance of the farmer is also took place. So we are getting the private orders also.
So may not have that huge volume of 1000 crore rupees business but definitely it is going to be there.
Vishwender Singh
Okay. And are you planning to export solar pumps as well in the future?
Gopal Kabra
Right now I’m let me serve my country, my nation first. After that if I have a bandwidth in the early in the my call when I started I said you know we go to the any state or anywhere when we are pretty sure have a clear manpower. I have the financial resources. The state where I’m working their complete ecosystem is pro for the business. Then only I go. So right now in India already we have so many areas where we are not able to serve although they are very pro for the business. So first I will target to finish in the country’s expansion.
Then if my bandwidth team and everything allow, we will expand into the foreign business as well.
Vishwender Singh
Okay. And on the receivable side, so I heard that the achievement has improved from Maharashtra. And I can see in your balance sheet as well that the receivables has come down. So can we see further improvement in the receivables?
Gopal Kabra
See we would say that this receivable cycle will continue. This is what the assumption we want to keep it in the mind and go ahead. We will try to reduce whatever the best we can get it done.
Vishwender Singh
Okay, last question. So as half the almost half the half the quarter is done of Q1FY27. How has this quarter been? Can we expect 500 to 600 revenue in this quarter?
Gopal Kabra
I think I can’t talk on the specific number on this. I can talk on the annual basis only.
Vishwender Singh
Can I talk on this
Gopal Kabra
Subject? No, we won’t be sorry sir, this is. I can’t talk on this specifically but soon the just one and a half month to two months we are having the result also. But it will be
Vishwender Singh
Definitely good.
Gopal Kabra
I can say it will be good.
Vishwender Singh
Okay. Okay. So that’s it from my s. Thank you.
Operator
Thank you. Next question is from the line of Jnam Vora from Saltra Investment Advisors. Please go ahead.
Vishwender Singh
Congratulations on a good set of numbers. Couple of things that what I wanted to understand. First of all the advantage that you have as a decentralized player who’s not manufacturing is that the margins that are there, probably the commodity prices and all those that increase. Typically given that solar pumps is a commodity, the hit is taken by the manufacturer. Is that a correct way to look at your business? That’s one of the advantages that you have. So that the margins that are there, the raw material prices that would increase the hit is not to that extent.
That would be the case for the other peers. Is that a fair conclusion?
Gopal Kabra
No, I would say it’s not a fair conclusion. It’s like that your planning has to be there. Okay. So whenever we go so we freeze the coming six month procurement, we give the required advance, we give very clear planning. Okay. This is what required. So now it is my supplier partner’s responsibility to make it sure that he do the supply and he do the future planning for his procurement. So fortunately my vendors, my OEM partners, when I have given them a projection six months back, they made it sure that planning with me itself.
So I Believe they also didn’t got the certain hit what you are talking about. But definitely there is slight margin. Things has been there but volume also gone up. So one side plus because of the volume gone up. My EPC side, my you know installation side also cost has been gone down.
Vishwender Singh
So it’s a mix of
Gopal Kabra
All. So a margin cannot be derived from one particular thing. And I don’t believe in giving the hit to my partner. He has been standing with me. We do the work into the synergy. So we plan such a way that both should get the money. If he’s happy, I’m happy.
Vishwender Singh
Plan
Gopal Kabra
For the 875 Mega DCR already for the future planning. So I’m not worried that you know down to six months when LCM will get mandate in the coming two months. And the other people are going to rush for just for the dcr. So I want DCR model. DCR model. Why to do it when you know that the government has a policy. Why don’t you go and secure. So we did it. We did it last year itself.
Vishwender Singh
Understood? Understood. My second question is regarding the working capital that is required for smart scheme and Suryagarh. So first of all what are your plans? Smart scheme is a great way to start with solar rooftop. But are you also planning to get into PM Surya there? And what is the working capital intensity of solar rooftop? Visibly let’s say PM Kusum Magal Diana.
Gopal Kabra
See we have already started for the PM Suryagarh. We have been forced to start few months back when we started. So working capital is quite low there requirement. Because it’s like PM Suryagar is almost cash and carry business kind of thing. So we get it
Tanmay Javeri
For
Gopal Kabra
The smart. Definitely there would be some investment required. And that is going under the ULA model. So in ULA model we get the money from the government of India directly to us. It doesn’t go with the you’re not a beneficiary and the beneficiary make the payment. No, it’s directly come to us.
Vishwender Singh
Got it. So. So. So it would be significantly lower compared to what we are seeing in PM Kusum Smart scheme. Also like how many days receivables could we sort of expect when it comes to smart scheme.
Gopal Kabra
See it will be comparatively quite low. What you have said is right. But precisely right now what we are saying is that we want to give the message that okay, let’s consider 140 days only.
Vishwender Singh
Let’s
Gopal Kabra
Talk 140. What are the less I can deliver. You will be happy in the Next call. Just like for the pat also last time I said 12% we delivered 13%. So I believe everyone is happy at least on the pad side. So let’s talk 140. What are the best we can do it. We will do it.
Vishwender Singh
Understood. So carrying on the same mindset in the worst case scenario like in FY26 as well we were expecting PM Kusum to scale up in a significant way. But that didn’t work out. And fortunately we had Mangalp in FY27. In the worst case scenario if things don’t work out, what is the top line and the margins that you can expect? And other than Magal Tiala do we have any other state that can meaningfully weightlift our order book and sales in FY27?
Gopal Kabra
See we are not only in Magil Tala we are doing the business in MP also. We got the handsome order book in NP also.
Vishwender Singh
So what? What order? If you could share some light. What is? See
Gopal Kabra
The orders come in the P says but it is 2000 plus pump order we have it was in pieces. So MP also started. That is also there. And assumption. If you say as worse worst worse assumption. If that is also not there then rooftop definitely. As I was mentioning to earlier gentlemen that we have the ruler network. Ruler manpower available. Trained technician is there. Warehouse is their logistic is there. So this all thing is going to give me the help to expand very fast into the rooftop business. And again beauty that every company want to every person want to do the business in urban area.
And very few want to do the business in the ruler and master into the ruler area. Because my presence itself is there.
Vishwender Singh
And Suryagar
Gopal Kabra
Have the 1 crore installation to be done out of that Maharashtra want to do 20 lakh out of 20 like just for a 5 lakh pump. Sorry 4 or 5 lakh system has been done. The Maharasha itself have the 15 lakh plus potential plus country wide. If I’m talking about it the 70 lakh system potential is there with the total scheme outlay with the 75000 crore rupees. So definitely 27, 28 29. I don’t see any problem. We will be doing the good business.
Vishwender Singh
So
Gopal Kabra
Asset light
Vishwender Singh
Plus
Gopal Kabra
Flexibility of the shifting of the trend of the business. As I was mentioning off grid pump to the grid connected pump rooftop to the if tomorrow bass is coming. So we will be doing EPC for that as well.
Vishwender Singh
So I don’t have any capex
Gopal Kabra
To be done. I’m not binded to sell. Okay. I Will sell this product. Only I can sell the product what is required in the market.
Vishwender Singh
Understood. Understood. So. So to conclude a 2500 crore top line with 250 crores that worst case scenario is possible. Even if PN question 2.0 doesn’t happen in FY transition is that if I conclude
Gopal Kabra
Sir, conclusion is. You can definitely arrive with the discussion. And as I was mentioning we will try to give what are the best we can give in that number. What you are talking about?
Vishwender Singh
Perfect. Congratulations.
Operator
Thank you. Next question is from the line of Jaitra Joshi from Ebisu Investment Advisors. Please go ahead.
Vishwender Singh
Hello. Yes, all my questions have been answered. Thank you.
Operator
Thank you. Next question is a form plan of accurate from active investor. Please go ahead.
Unidentified Participant
Hello sir. Personally congratulation on great set of number. Sorry your audience not. Yeah. I need clarification on the margins. I the double digit margins guided is it operating margins or net margin? Sir,
Gopal Kabra
Definitely it shall be net margin Only
Unidentified Participant
The current order book of 700 crores. What is the timeline to execute this?
Gopal Kabra
Out of that most of the work is. You know more rather than most of the good work is already done. And remaining shall done within timeline. And even we want to execute till h one more order also. So it will get over and we will be having the few more business to be done.
Unidentified Participant
Okay. And sir, what is the size of PM customs are put on 27. How much of that we can we can capture? I mean how many solar pumps government is planning to install in 2027 under PM Kusum and how many pumps we can get it as per your
Gopal Kabra
See, it is going to be the very big scheme which is what has been announced in the multiple places by the certain authorities. Right. And talking about the My market share is 8 to 9% countrywide which I have mentioned. And if I talk about specifically Maharashtra where the majority business is going on Right now we have 15% plus market share. So that shall get continued.
Unidentified Participant
I mean do we have any idea like how many pumps government is planning to install in PM system for 2027.
Gopal Kabra
Precise number I cannot give. But they have said that you know there are multiple places that it is going to be the bigger or the. You know few times bigger than what it was. So we are assuming two times to three. Two times at least the scheme. What earlier it was a 14 like it should be two times.
Unidentified Participant
Okay. Thank you sir.
Operator
Thank you. A reminder to all the participants. You know Press R&1 to ask a question. Next question is from the line of Harshal Solanki from Equity Free Capital Please go ahead.
Vishwender Singh
Good afternoon. I have just one question. What was the amount that is spent on the corporate office?
Gopal Kabra
It is. I have to. It was answering respect of the question came for the fixer side. So I have to just check precise number. Because you have asked the precise question. So if. Just a minute.
Vishwender Singh
So my main question is whether we have spent 90 crores on a corporate office that seems very large. And a company which is following a satellite model has bought a 90 crore corporate office is not adding up. So I wanted to check from that angle. No,
Gopal Kabra
You. What you are saying is right. For the getting the bank limits. We have fixed deposits to be given. That fixed deposit has been transferred into the asset. So fixed deposit is better to have the asset. This is what the model we have taken up.
Vishwender Singh
We have bought property to be given as a guarantee to get limits. Is that understanding? Right.
Gopal Kabra
Right.
Vishwender Singh
Okay. Understood. Thank you.
Operator
Thank you. Next follow up question is from the line of Jainambora from Salsar Investment Advisors. Please go ahead.
Vishwender Singh
Bhopalji had one more question on the IPO of MSBECL which is coming up. So which is this Maharashtra State Utility. I just wanted to get an idea. What is the thought process? If you could explain a couple of minutes since you are on the ground. What is the vision of Maharashtra? What is the rationale behind this IPO and what does it mean for us that especially in the light of time. Because it will be one of the very few profitable state utilities. So if you could give us some perspective that would be helpful.
Gopal Kabra
See, it is like a ocean. And I’m very small. You’re not selling the small ship into that ocean. So best I’m actually your question is perfectly right. But I’m not right person for this question. This is what I can say right now.
Vishwender Singh
Okay. No issues. Thank you so much.
Operator
Thank you. A final reminder to all the participants. You may press RN1 to ask a question. As there are no further questions. I’ll now hand the conference over to Mr. Gopal Sabra for closing comments.
Gopal Kabra
I sincerely thank you everyone. With the lots of patience you have listened and it is very nice to have the interaction. There are certain suggestion has been given. Management would like to review that suggestion. If we find suitable, we will implement that. Thank you. Thank you very much for everyone to spend the time with us on the GK Energy earning call. Thank you.
Operator
Thank you very much on behalf of GK Energy limited that concludes this conference. Thank you for joining us. And you may now disconnect your line. Thank you.