Inox Green Energy Services Ltd (NSE: INOXGREEN) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
S K Mathusudhana — CEO, INOX Green Energy Services Limited
Akhil Jindal — Group Chief Financial Officer
Analysts:
Anuj Upadhyay — Analyst
Shweta Dikshit — Analyst
Deepak Sharma — Analyst
Pritesh Chheda — Analyst
Nitin Gandhi — Analyst
Akilesh — Analyst
Bhavik Shah — Analyst
Tarun Advani — Analyst
Pradyumna Choudhary — Analyst
Manish Khemani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to INOX Green Energy Services Limited Q3 and FY ’25 Earnings Conference Call, hosted by Investec Capital Services India Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Anuj from Investec Capital Services. Thank you, and over to you, Anuj, sir.
Anuj Upadhyay — Analyst
Yeah, thank you. Good evening, everyone, and welcome to the Q3 FY ’25 earnings call of Green Energy Services Limited. For today’s call, we have with us Mr Rakil Zindar, Mr Group CFO, Anox GFL Group; Mr, Group CEO, Annox Wind Limited; Mr SK, who is the CEO of Anox Green Energy Services Limited and other senior members of the management.
I would now hand over to the management for their initial remarks, after which we will open the floor for Q&A. Thank you, and over to you.
S K Mathusudhana — CEO, INOX Green Energy Services Limited
Thanks, Anuj. Good evening, everyone. A very warm welcome to all to the Q3 FY ’25 earnings call of INOC Green Energy Services Limited. The company announced the results at its Board meeting held today, Friday 31st January 2025. The results along with the earnings presentation are available on the stock exchanges as well as on our website. Before we move ahead, let me quickly take you through the financials. For the quarter, on consol basis, INOF Green has reported revenue of INR74 crores in Q3 FY ’25 versus INR61 crores in Q3 FY ’24, up by 22% year-on-year basis. EBITDA of INR29 crores in Q3 FY ’25 versus INR24 crores in Q3 FY ’24, up by 23% on year-on-year basis. Cash PAT of INR23 crores in Q3 FY ’25 versus INR13 crores in Q3 FY ’24, up by 76% year-on-year basis. Now I will briefly provide an update on our business operations and outlook before we open the floor for Q&A.
At the end-of-the quarter, Green’s wind O&M portfolio stood around 3.5 gigawatt. Mission availability for the entire portfolio for Q3 FY ’25 was at 96.2 percentage and the figure for nine months FY ’25 was 96.3 percentage, which is a significant improvement over the past years and a result of our continuous efforts on our services. We continue to provide several value-added services and refurbishment services, which is also contributing to our growth. We are constantly improving our technical capabilities. Recently, we have successfully deployed drone technology for our inspection of substations, 33KV and EHV lines for early defect identifications, rectifications and improving the reliability of the system. We have also deployed drones for cleaning of turbine blades. This has improved our efficiency, turning — reducing the turnaround time for the cleaning process and cutting down the unsafe manpower working conditions.
Our portfolio growth outlook through both organic and inorganic growth continues to be very strong. We remain on-track to achieve our target of 10 gigawatt in the next three to four years. We are also entering into new business areas, which include solar and hybrid project O&DM, supported by our group company INOX Solar’s Venture into solar manufacturing and project execution. We anticipate incremental portfolio growth and revenues over and above our current targets. The wind sector in India is on the cup of massive growth in the next decade, which provides a very strong outlook for the companies, providing technically superior services such as INOF Green. We have technologically upgraded ourselves meeting global benchmarks. I’m confident of delivering on growth targets.
With this, I would now like to hand over to Mr Akhil Jindal, our Group CFO, for his remarks on some of the strategic actions which we are taking at INOX Green.
Akhil Jindal — Group Chief Financial Officer
Yeah, good evening, everyone. While Matthu has mentioned about the continuous growth and the excellence that has been created in the company over the last few years, we also want to grow inorganically and obviously, we are continuously evaluating multiple opportunities for acquisitions of such businesses, either through NCLT route or the direct acquisition and also the portfolio of the existing ISPs. The financial position of the company, as you would have noticed, has improved significantly. It has, you know in terms of the higher cash PAT, in terms of the EBITDA, which is a true profitability reflection of the screen business. As you would know, at this juncture, the Resco demerger has not taken place, it’s in the process. There is a significant amount of depreciation charges that is being reflected in our current numbers, which would be transferred to as the assets get transferred.
So practically, whatever number you are seeing, you should look at our EBITDA numbers as a benchmark for our PET numbers because in absence of depreciation, everything will flow-back to the profitability to the bottom-line and that’s where I guess I guess the cash PAT is a very important number for you to analyze as our company and said that our cash is roughly, you know, is INR23 crores on a quarter-to-quarter basis and that is growing significantly as we are acquiring new businesses. The scheme for the demerger is also under process the RESCO which my colleague mentioned in my previous call also. So we are awaiting the regulatory approvals. The BSC, NSC approvals are likely to be available to us in the — say, in the first week to 15 days of February. Once the regulatory approval comes in, the demerger will be done through NCLT and that would take, say, another six to nine months as the case may be.
We are hopeful that within this calendar year, we will have the demerger of the of the business. And to that extent, the RESCO will also be merged. So it will be listed. So when we are looking into the next year’s balance sheet of one-off screen, it would be an asset-light balance sheet and it would also have no depreciation charges as a continued item. What it means is that the profitability will be far more stronger. Post the demerger, the shareholders of INOF Green will also receive the shares of Resco, which is renamed as Renewal Solutions Limited and where the — so as a shareholder, they would also be a partner in the growth of the business, which is also getting merged through the same scheme.
I would just reflect on the inorganic growth initiative of the company, as I mentioned in the beginning, we are looking at number of possibilities in this sector. There are many companies which are — which have — which are going through the bankruptcy route and we are evaluating many of them. And as you would know, the NCLT process, the bankruptcy route is something that takes time. It is a little lengthy process. But then also the advantage is that we get the company clean without any hidden liabilities, without any contingent liabilities. So to that extent, while the process may be a little lengthy, but it is in the best interest of the company to get the company clean and absolutely the core business would be available to us rather than so many non-core businesses that otherwise come in a state acquisition.
As you are aware, we have recently — we have recently participated in one of the — one of the large company in India, you know, and that company also will be folded in our fleet as and when the NCLT process gets complete. Today, today the COC is directly controlled by us. So in that sense, there is a fair amount of comfort that we have in the field of this company as being part of our own fleet as we as we go along. We are also looking at other opportunities while we speak. And to that extent, there is a fair amount of work going on, you know in the growth. So the inorganic growth is going to be an important element of the growth in this business because naturally while we are growing organically every quarter based on the — based on the work that has been done by our Inox win and those O&Ms being done by our Inox Green. But inorganic is a fair amount of possibility in this business. And to that extent, we are looking at more-and-more and more opportunities as we go along. That will also increase our asset portfolio, our financials.
And to that extent, as and when the right opportunity is coming at the right time at the right multiple I think the right multiple is an important element that you cannot ignore because naturally we want to pay the right price for the right asset, not just acquire anything and everything you know at a very rich valuation. I don’t want to name the company, but there are few companies which are — which are doing that, but that’s not our strategy. We are — we are very, very, very, very value-conscious. And to that extent, whatever fits into our overall scheme of things is something that we are going to do in a very calibrated manner. And obviously, if it takes a little longer to get the assets clean under the NCLT, we will — we will do so.
I think with this, I open the floor for Q&A. The entire team is here to answer any of your questions. Feel free-to ask any question that comes in your mind. So we reply to the best of our abilities. In case any question remain unanswered, our IR team is available to you for any — any clarification at — after this call get finished. Thank you, everyone.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets only while asking a question. I repeat, you may press star and one to ask question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. I would like to remind the participants you may press star and one to ask a question.
The first question is from the line of Shwetha Dixit from Systematix. Please go-ahead.
Shweta Dikshit
Hi, good evening. Thank you so much. A couple of questions on the margin side, despite a significant increase in other income, our margin has tend to drop to around 46%, which is a decline sequentially. Could you just help me understand what brings this margin decline? As I can see, there is an increase in other expenses and employee expenses as well as EPC and O&M costs.
S K Mathusudhana
See, so we’ve always been maintaining that you have to look at the margins in this business on a full-year basis. And for that, we’ve maintained the guidance of 50%. Now there may be quarterly variations, for example, in Q3 and Q4, we do the scheduled maintenance for us to get ready for the next wind season, which is Q1 and Q2 specifically. So there are additional costs which we incur and book. So that just varies the margin on a quarterly basis. But on a full-year basis, the 50% guidance remains.
Shweta Dikshit
Understood. Thank you. Another I think I just needed some clarity on Sir’s opening remarks that when we mentioned the addition of a new large company in our fleet, are we talking about an inorganic expansion that we are — I mean, in the process of closing or is this — I mean, I think I missed what exactly the point sir, was saying.
Akhil Jindal
I think the point that you are saying is that the money has been invested in buying the debt of the company. And to that extent the COC is which is a committee of creditor, it’s something that we have a — we have a fair amount of comfort and a control over that COC. And as and when the process gets complete because the company is in NCLT and as I mentioned to you, the NCLT process for — for a company which has been there for such a long-time is always, I would say, a bit long and a bit lengthy and we are — we are finishing all that. Hopefully in the matter of six to nine months, we can see this company being directly under the fold of wine of screen. And to that extent, the numbers would be consolidated. So today, the numbers presented to you does not include any financial from that company, but it’s a large fleet. It’s a large initiative. And to that extent, I guess the numbers will show for itself as and when the acquisition gets complete.
Shweta Dikshit
Okay. Any indication of the portfolio size?
S K Mathusudhana
We wouldn’t like to give you at this point of time. At an appropriate time, we’ll let you know.
Shweta Dikshit
Okay. Okay. One last question on the other income side. Is there any clarity on whether — how are we supposed to look at this number going-forward? As I am talking from the perspective that if we have to build our forecast that way, how do we look at this other income number going-forward?
S K Mathusudhana
As per the — as per the business target, which I already mentioned in my opening remarks, in a couple of years, our target is to double to 6 gigawatt. And within three to four years, we need to achieve a portfolio of 10 gigawatt. So that’s the guidance which we always maintain and we are very hopeful to achieve that.
Shweta Dikshit
Okay, sir. Thank you.
Operator
Thank you. We have our next question from the line of Deepak Sharma, an Individual Investor. Please go-ahead.
Deepak Sharma
Hello, sir. Thanks for the opportunity. Am I audible?
Operator
There is a lot of background noise.
Deepak Sharma
Hello. Is it clear now?
S K Mathusudhana
We can’t hear you.
Deepak Sharma
Yes, sir, it’s clear now.
Operator
Yeah.
Deepak Sharma
Sir, as an individual investor, I just want to know what is the revenue model means if we are doing the 1 gigawatt in one year, then how much revenue you will collect and the EBITDA margin, as you said, a 50% margin, right?
S K Mathusudhana
Yeah. So broadly, whatever the commissioning would be, you can — whatever the commissioning would be and what will be the commissioning number, you can multiply with INR8 lakh per megawatt and our EBITDA guidance is around 50%. So considering 1 gigawatt of commissioning, you can consider around INR80 crores top-line with INR40 crore of EBITDA.
Deepak Sharma
Okay. And then my second question is how the demerger will help the company in terms of revenue and EBITDA going ahead.
S K Mathusudhana
So in terms of the Resco demerger, obviously, yeah. The demerger of substation business and merger with the Resco Global, I know Green shareholder will be benefit by in a two-ways. One, they will get the shares of the — of Resco — Resco. You know broadly 10% broadly 20% of the Resco would be owned by the Green shareholders. That is one. Secondly, after this merger demerger will get completed, the complete depreciation will be go away from the — from the financial numbers. And our EBITDA would be the — as Mr has said would be particular — will translate to PAT and PBT.
Deepak Sharma
Okay. Okay. My another question is if you see the revenue numbers is not consistent from the last eight to 10 quarters. So suppose if you do the 800 megawatt this year in INOX wind, then the revenue will start coming in the INOF.
Akhil Jindal
Yeah, that’s right. That said after commissioning, naturally because I know screen will be doing the O&M, so the revenue will be reflected in the INOV screen numbers, yes.
Deepak Sharma
Okay. What is the time gap means — suppose if I do the project of wind today, then the commissioning that means the gap between the commissioning and the installation?
Akhil Jindal
No, after the commissioning has been done, then the O&M cycle starts. Commissioning means the completion of the plant and the OEM cycle starts.
S K Mathusudhana
So the gap between the supplies and commissioning you can take anywhere between six to 12.
Akhil Jindal
Yeah, maximum.
Deepak Sharma
Okay. Okay. Okay, sir. Thank you. Thank you.
Operator
Thank you. We have our next question from the line of Pritesh Chheda from Lucky Investments. Please go-ahead.
Pritesh Chheda
Sir, this 3.5 megawatt which you have today and a INR60 crore quarterly run-rate, you know that doesn’t match. So is it that when you take that 8 lakhs, so can you just help us reconcile? So that’s the first question. Second question is between 3.5 megawatt and your journey to 6 mega gigawatt or 6 megawatt — 6,000 megawatt and 10,000 megawatt, can you help us in the next three years or let’s say next two years between now 3,500 megawatt to your targeted whatever number it is in FY ’27, what will be the organic addition?
S K Mathusudhana
Yeah. I think what you’re looking at is the quarterly numbers. My request is to have a look at the nine months number, which is INR167 crores. Annualized basis, it would be close to INR240 crore. So when my bank does that 8 lakhs per megawatt, that was the annual number. So if we are at a 3 gigawatt plus kind of a maintenance, we would have that kind of a top-line.
Pritesh Chheda
No, sir. So just a sir. So if I take 3.5 crore into 8 crores, it’s about INR280 crore.
S K Mathusudhana
Yeah. So looking at the nine months number, which is 167, we are looking at that level. And obviously, this 3.3 gigawatt that we have done has — many of them has come during this year also. So obviously, they are not a true reflection of the full-year of operation.
Pritesh Chheda
Sir, you’re not clear. Does the December number of INR61 crores, does it reflect the 3.5 gigawatt of corresponding 3.5 gigawatt of billing or it doesn’t include the 3.5 if it doesn’t include then how much do you have you built? You build 3 megawatt — 3,000 megawatt?
S K Mathusudhana
So Pritesh, just to answer your question, as in-quarter — in this quarter, we have reported INR60 crore — INR60 crores of revenue. If you analyze it, that would be coming somewhere around INR240 odd crore of revenue of top-line. In terms of a 3.5 gigawatt of portfolio, which we are showing, if you multiply it by 8, that comes somewhere around INR280 odd crore which you are mentioning. So the gap of INR40 crore which you are seeing is as we have — as we have clarified in the past call as well, out of 3.5 gigawatt of the portfolio, there are 13 comprehensive O&M contract and some are non-comprehensive O&M contract. Though the EBITDA margin will remain same in terms of the per megawatt basis, but the revenue per revenue realization on a non-comprehensive O&M and non-comprehensive O&M contract would be somewhere around 3 to 3 lakh to INR3.5 lakh, which translated to this difference.
Pritesh Chheda
Okay. Okay. Okay. And can you help us the bridge in the next three years, next two years, until FY ’27, how much of organic will we add to this 3.500 megawatts?
S K Mathusudhana
So as we are at 3.5 gigawatt by December, number we will commission near to about 300 crore, INR400 crore megawatt in-quarter four. So broadly by FY ’25 and we will be 4 gigawatt portfolio plus-minus 100, 200 megawatt here and there. Then we will get commissioned 1,200 megawatt in subsequent year and then 2 gigawatts. So organically, our portfolio will increase to somewhere around 7.2 gigawatt. Inorganically, as Mr Akhil has mentioned that we have already acquired — we are in advanced stages of acquisition. We are — we are planning to acquire one company in NCLT. We are evaluating the other proposals as well. So you know, putting together, we are very hopeful that around to three gigawatt will be acquired in next 12 to 18 months in the company.
Akhil Jindal
I think to simplify your understanding, if you have a target of reaching 10 gigawatt in three to four years time, from here and a half currently what we are today, we’ll reach up to 7 organically and the balance 3 gigawatt we are hoping to acquire inorganically. That is the — that is the ultimate plan.
Pritesh Chheda
Okay. This 1,200 megawatt addition in ’26 and the 2,000 megawatt addition in ’27, this will be year-one and year-one and year two of these assets, right? So they would be — they would be revenue-generating but not cash-flow generating, right?
S K Mathusudhana
That’s right, Pratesh, your understanding is right, but we have around 3 gigawatt of the old turbines as well before which we are recognizing the revenue. So as we have discussed in the past call as well, there are certain additional cash-flow in terms of the — in terms of these turbines which are flowing. So the difference in the cash-flow is also very municipal in terms of the revenue recognition and the cash-flow which we are — which is coming.
Pritesh Chheda
Sorry, you have 3,000 megawatt already in this 3.500 megawatt. So you have any sorry.
S K Mathusudhana
So Pritesh, we can you know discuss in more detail this question offline because you know that required little bit of a calculation and I can explain it to you.
Pritesh Chheda
Thank you.
Operator
Thank you. We have our next question from the line of Nitin Gandhi from Inoquest Advisors. Please go-ahead hello.
Nitin Gandhi
Is it clear?
Akhil Jindal
Yeah. Please go-ahead.
Nitin Gandhi
Yeah. The question was same like out of this just continuation of previous question where how much is from NCLT asset which we are targeting out of this acquisition.
S K Mathusudhana
Yeah, the same thing that we mentioned, you know, the 3 gigawatt is our target to add over next two to three years. Mostly it would be a — from a stat situation because that is where I guess we can determine the best of the valuation. Otherwise, buying it from an operating asset from an operating company could be very expensive. And our endeavor would be to preserve the shareholders’ value in that and do everything which is value-accretive rather than very destructive as some other people might be thinking of doing.
Nitin Gandhi
And what could be the challenges to get this kind of assets under management?
S K Mathusudhana
Sorry, can you please repeat the question?
Nitin Gandhi
What could be the challenges to get these acquisitions done?
S K Mathusudhana
I think it’s a patient game. Number-one, you have to understand the legality of each and every asset. So to that extent, there is a fair amount of hard work-in the — I would say the court process that one has to endure. As a management, we believe that you know we have a — we have got a bandwidth to do so. We have a understanding of these assets. And to that extent I guess you know but for the patient and a little bit of a perseverance, they all can be done, easily done.
Nitin Gandhi
Can you share what is the size and the NCLT put together in this point of time for such assets.
S K Mathusudhana
Well, there are a number of companies at different stages. I won’t be able to give you the exact number, but we are looking at some targets where there is a fair amount of — fair amount of assets under management.
Nitin Gandhi
It could at 10 gigawatts?
Akhil Jindal
Yeah. Just adding to that, if you can refer to our presentation, so what we’ve outlined is that there was a study done sometime back, which identified 10 gigawatts of stretched assets which are available to be acquired. Out of this, some has been already done. But broadly you can take that — consider that number for your reference.
Nitin Gandhi
Okay. Thank you and all the best. Thank you.
Operator
Thank you. We have our next question from the line of Akilesh, a shareholder. Please go-ahead.
Akilesh
Yeah, good evening. Am I audible?
Akhil Jindal
Yes, you are. Please go-ahead.
Akilesh
Yeah. I had a few questions. So first question is this solar O&M potential, will it show-up in FY ’26 revenues? What is the plan on the solar side of the business?
S K Mathusudhana
Basically, basically the execution on solar is expected in the next FY. So as soon as with the timeline of eight to nine months, the project commissioning, so it will be taken over by Inox Green. So the financial will be reflecting post that.
Akilesh
Yeah. And what kind of margin profile will O&M in solar have? Is it similar to our existing profile or will it change the profile of the company?
S K Mathusudhana
The goodness is since we share a lot of synergies between wind O&M and solar, right? So we intend to put a common resources so that our margin we will stick on to maintain the similar levels. If you are doing us a standalone solar, the margin normally is too low, but we want to keep it in a synergetic manner.
Akilesh
So is it fair to say that with solar also the EBITDA margin profile of our company will be in the 50% range.
S K Mathusudhana
It might not be if you are doing so much of solar, but looking into the capacity addition, we will prefer more in wind. We will look for more hybridization project that will make us better — better EBITDA margins.
Akilesh
Okay. And cash flow-wise, is that solar O&M similar to wind? I just want to understand the impact once solar O&M starts on our company, whether it changes the cash-flow profile of the company or.
Akhil Jindal
As far as Mr Matthu has said that in terms of — in terms of the solar margins, since we are providing a hybridization solutions, so our solar O&M revenue — EBITDA margins will be little higher as compared to the industry. That is one. But that would not be surely 50% because there are when there is a kind of a unique play in which the EBITDA margins are a bit higher that is complex. Solar is relatively simpler process. But due to the hybridization, we have the advantage. So accordingly, our EBITDA margins in the solar would be higher. That is one. Second, in terms of the cash-flow profile, that is more or less same as far as the wind O&Ms — wind O&M is as far as-is concerned, that is similar to wind O&M. So there have been no difference as far as cash flows are concerned.
Akilesh
Okay. And the next one or two years, wind will still be the majority of the green portfolio over.
Akhil Jindal
Yes, the build will be the majority. The solar we will start adding from the next year onwards, but that would be gradually will be added. So broadly in the next two, three years time-frame, the build will be the majority.
Akilesh
Okay. And the second question is on this demerger of the substation from INOX Green. So while it will take-away depreciation from our books, will it also take-away any of the tax losses that we have accumulated?
Akhil Jindal
No. So the tax losses would be on a company — company-level, not on an asset-level. So the tax losses will remain in this company.
Akilesh
Okay. And what is the current accumulated tax loss?
Operator
Please request you to rejoin the queue?
Akilesh
Yeah, this one is taken on, sir. The current accumulated tax.
Akhil Jindal
INR100 odd crore is the tax losses which the company carries.
Akilesh
Okay. Thank you.
Operator
Thank you, sir. We have our next question from the line of Bhavik Shah from Envixa Capital. Please go-ahead.
Bhavik Shah
Yeah, hello, sir. Sir, my first question is when we say the deposition will not come in our books, our assets will go to the other entity, but we will…
Akhil Jindal
Not able to hear you.
Bhavik Shah
Hello, is it audible?
Akhil Jindal
Yes.
Bhavik Shah
Yeah. So when we say depreciation will go off our books, the assets will go to the other entity, but we’ll require those assets for our O&M, right? So in a way, our depreciation will become our OpEx and will reduce our EBITDA margins, right?
Akhil Jindal
So as far as the power evacuation and the common infrastructure we have developed is not required for O&M services per se that is required for the providing the turnkey solution to the customers. So it should — it is — in a broader sense, it is always a part of the EPC game. But as we have clarified in the last call as well, due to the — we have transferred the EPC business earlier from this Green to Resco Global, but unfortunately, at that time, we are unable to get — transfer this common infrastructure. And now since we — with the NCLT route, we are transferring the same. So that is all not required to be here in O&M company as such.
Bhavik Shah
Okay. And sir, just to understand, sir, 50% EBITDA margins are like too good to be true. So what is the factor here that other players are not entering this industry and we are enjoying this — we will basically enjoy this 50% EBITDA margin because if it’s 50% and I don’t have any working capital or inventory, then everything flows down. So everyone would like to enter this business. And second is, sir, in solar O&M, our peers are not even making 25% gross margins. So how will we select projects there?
S K Mathusudhana
So first of all, we understand that — everybody understands that wind is a very complex business that everybody cannot get into that, number-one.
Bhavik Shah
Number two, what is that complexity we have, we have technical labor skills or like what do we require? What is the complex element here?
S K Mathusudhana
I’m coming to that. First of all, first of all, we are an Indian OEM with a strong presence and we own the substation, we develop the substation land connectivity and we also install the wind turbines, right? As the INOX Green, we are operating substations, lines, connectivity — sorry, the EHV lines and turbines, okay. So customers are only owning the WTGs and they are kind of married to us for a long period of time, like more than 25 years till the life of the WTGs. Unlike other new entrants who do not own anything on the land or substation or anything. So they are only selling the WTGs. So any manpower contract, technical skill contract can do the services, we cannot achieve EBITDA margin of 50%, okay. They will be like a — they will be — they will be a very simple service contract with maybe 20% 25% margin unlike in the several cases like you know, several ISPs are there in the market, correct? They will not — they cannot match the EBITDA margins of an OEM. So that is one on the wind answer.
Second, on the solar, as solar, as you said, gross margin is possibly 25% for the regular solar business. But when you couple the wind professionals or the technical expertise needed to manage a solar is much more superior than a solar themselves. So we intend to use the similar technical forces and the resources to manage the similar technology. Everything is same. Only it’s a rotary part and it’s a non-moving parts. So we intend to synergize the resources to make the margins higher than what the industry can give.
Bhavik Shah
Okay. And sir, do we have any guidance on the solar, how much gigawatt do we want to be there next scale-up?
Akhil Jindal
So at this point of time, we are not giving any guidance on addition of solar into our portfolio, we’ll give it at an appropriate time.
Bhavik Shah
Okay, sir. Thank you so much and all the best.
Operator
Thank you. We have our have our next question from the line of Adwani from an Individual Investor. Please go-ahead.
Tarun Advani
Yeah, hi. Good evening, sir. So if you can please throw some light on the fundraise that we recently did, the amount that we still have and what the utilization has been, if we have already spent something and if not, then what the proposed utilization is?
Akhil Jindal
Yeah, as I mentioned in the opening remark, so we have utilized close to INR300 crores as on-date. We intend to utilize another 2002 over the period of next two to three months. And accordingly, as we are looking at into other targets, the fund will be best utilized. We have also deleveraged the balance sheet of this company, as you would know, you know partly through this fund. And to that extent, all the funds that has been raised are — they are well deployed and they are creating more EPS to for the company.
Tarun Advani
As sir, and the NCLT opportunity that you spoke about, so that would form the part of the first INR300 that we spent, is it?
Akhil Jindal
That is right. That is.
Tarun Advani
Understood. Thank you.
Akhil Jindal
Thank you.
Operator
Thank you. The next question is from the line of Nitin Gandhi from Advisors. Please go-ahead.
Nitin Gandhi
Can you share what’s likely billing per megawatt for solar and hybrid? Of course, I understand too complexity, it could differ in hybrid. But just ballpark numbers maybe 5%, 10% here and there, that’s okay. But just to understand.
Akhil Jindal
No, actually, it’s a bit early for us to comment on that let things develop and we’ll come back to you on this in the subsequent quarters.
Nitin Gandhi
Thank you.
S K Mathusudhana
See, this is a new business that we are getting into, as we’ve mentioned in our presentation as well as in the opening remarks. So things will develop over the next few quarters and we’ll give you more clarity as and when we come back to you in three months’ time. Thanks.
Nitin Gandhi
No, I thought like since you raised the funds and you have some business plan, obviously, when you are entering, there’ll be some number crunching we must-have done. So I was just trying to look at those other things.
S K Mathusudhana
For inorganic acquisitions, the question. I think you had asked…
Nitin Gandhi
I understand, but like next phase, you will be obviously doing that also, right? Yeah. Okay. Anyway, let’s hold-on.
S K Mathusudhana
Organic growth rather than inorganic at this point of time, we are thinking on that line.
Akhil Jindal
Yeah, but having said so, we are looking at opportunity. Let’s not close any door in terms of the opportunity. So if a — if any solar maintenance company is up for acquisition at the right price, we may consider that.
Nitin Gandhi
Okay. Thanks.
Operator
Thank you. We have our next question from the line of Chaudhary from JM Financials. Please go-ahead.
Pradyumna Choudhary
Yeah, hi. Pardon me if I heard it wrong, but did you did you mention that INOX shareholders would get 20% of the INOX renewables that is verstwhile Resco Global or was it 10%?
Akhil Jindal
Okay. So the minority shareholder of Green will get 10% in the consolidated entity. So currently, 50% is owned by the minority shareholders in Green. So if we multi you take a mass accordingly, then the 20% of shares of that will be owned by the Isle of Green shareholders, 10% by the minority and 10% by the promoters accordingly.
Pradyumna Choudhary
All right. Fine. Thank you.
Operator
Thank you. We have our next question from the line of Manish from Middleton Capital. Please go-ahead.
Manish Khemani
Sir, how do — how does this available like we’ve got the 96.2% availability affect the revenues or how do we correlate with the revenues? Does it affect the revenues by any chance?
Akhil Jindal
See, this is a — this is a key performance index for a performance number. This is nothing to do with the revenue. So this is basically industry benchmark for the entire project availability. Basically it is — it includes the availability of WTG turbines. Also it includes the availability of the 33KV line substation and the ESV lines. So put together, our overall plant availability or the project availability is 96.2 percentage. So if you hear from the market who only operates the wind turbine, their availability is at 97%, which is not comparable with this number because this is a total project availability number end-to-end.
Manish Khemani
Okay. Thank you. Thank you. We have a follow-up question from the line of Shwetha Dixit from Systematix Group. Please go-ahead.
Shweta Dikshit
Hi, thanks again. And one question on the solar O&M side, is there any indication of what kind of realization and is there like there is INR8 lakhs per megawatt for wind ONM? Is there a similar number for solar O&M?
S K Mathusudhana
Again, I’ll repeat what I said in the previous questions that it’s a bit too early for us to comment on the numbers and also on the realization front, but what I can give you an indication is that it will be lower than what we are currently billing in the wind business. So that’s — I’ll cut myself on that and probably we’ll come out with more details in the subsequent quarters.
Akhil Jindal
And just to add — just to give a more idea, we don’t want to give any numbers on that, but you should know that for a small project of solar, the cost per megawatt is high. For a large project like 500 megawatt, 400 megawatt, the cost per megawatt is low. So there is no specific for solar in the case. It depends on the scale and the size of the project. So once the project is getting commissioned and getting loaded, we will be very spot-on the prices and the margin we can do. Thank you.
Shweta Dikshit
All right. Thank you. One last question, what was the size of the total proceeds of the fundraise? That we’ve utilized. Hello.
Akhil Jindal
I think the total was INR1050 crore, as you would remember. And that obviously we have received. Manish, correct me for wrong? INR550 crores. INR550 odd crore already in the company. The balance are callable money and as and when required, it would — it could all be infused. Out of 560 as I mentioned to you, approximately INR300 is being used for the acquisition, another INR70 crore 80 crores for the — for the debt reduction. So almost INR370 crore INR80 crores are being — they have been used for till now. So we are — we still have, say, INR200 crore of the previous funding in our system. And as and when we — the acquisition size based on this, we can call-in more money, which is balanced to from the previous round.
Shweta Dikshit
Understood. That is helpful. Thank you. Thank you.
Operator
Thank you. And we have our next question from the line of Anuj from Investec Capital. Please go-ahead.
Anuj Upadhyay
Yeah, hi, sir. Just one clarification on the — how much of grains are expected to be operationalized in the next quarter. And also you mentioned that the transformer capacity would be operational. So what capacity would begin, say, Q4? And I do understand that the is targeted to be demerged from the annox Green and this capacity, my understanding is would come under, but would it still have any kind of a margin impact or annox Green for FY ’26 numbers?
S K Mathusudhana
So on your first question on the grains, obviously, it is unrelated to wind related to INOX wind because Resco is a subsidiary of INOX wind. But still two cranes will become operational. We are starting with that and then additional cranes will come in the subsequent months. And there will be no impact on the transfer of the business — the substation business from INOG screen in terms of the EBITDA margins, we don’t see any feel that there’ll be any impact.
Anuj Upadhyay
That’s helpful, sir. And on the transformer side, what capacity, again, I believe it’s part of only, but any clarity.
S K Mathusudhana
We can discuss that offline because we’ll let other participants if there are to discuss on INOX screen specifically here.
Anuj Upadhyay
Sure. Thank you, sir.
S K Mathusudhana
Okay. Thanks.
Operator
Thank you. Ladies and gentlemen, that would be the last question for today. Sir, do you want to give any closing remarks?
S K Mathusudhana
So thank you everyone for joining today’s call. I hope you have a great weekend here. Thanks once again.
Operator
Thank you. On behalf of Investec Capital Services, that concludes this conference. Thank you for joining us and you may now disconnect your lines.