Premier Energies Ltd (NSE: PREMIERENE) Q1 2026 Earnings Call dated Jul. 28, 2025
Corporate Participants:
Unidentified Speaker
Chiranjeev Singh Saluja — Managing Director
Vinay Rustagi — Chief Business Officer
Analysts:
Unidentified Participant
Mohit Kumar — Analyst
Subramanyam Yadav — Analyst
Rehan Syed — Analyst
Shivam Patel — Analyst
Deepak Krishnan — Analyst
Nidhi Shah — Analyst
Sujit Jain — Analyst
Bala Murali Krishna — Analyst
Anupam Goswami — Analyst
Aman Jain — Analyst
Mayur Patel — Analyst
Nitin Arora — Analyst
Sarang Joglekar — Analyst
Nikhil Somani — Analyst
Balasubramanian — Analyst
Apoorva — Analyst
Amit Mahawar — Analyst
Kunal Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Premier Energies Limited Q1 FY26 earnings conference call hosted by ICICI Securities 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 and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities Limited. Please. Please go ahead sir.
Mohit Kumar — Analyst
Good morning. On behalf of ICICI Securities, I welcome you all to the Q1 FY26 earnings call of primary today. We have with us from the management, Mr. Chiranjeev Singh Sarhuja, Managing Director, Mr. Nand Kishore Khandelwal, Chief Financial Officer and Mr. Binay Rustagi, Chief Business Officer. We’ll begin with the opening remarks from the management which will be followed by Q and A. Thank you. And over to you sir.
Chiranjeev Singh Saluja — Managing Director
Thank you. Mohit, I’m audible to you?
operator
Yes sir. Yes you are.
Chiranjeev Singh Saluja — Managing Director
So good morning everyone and thank you for joining us today for our quarter one FY26 earnings call. Pleased to report a strong start to the financial year with our best ever performance in terms of revenue and profit in the long history of the company. In quarter one, our total revenue stood at 18,695 million marking a 12% year on year growth. More importantly, we delivered a robust profitability with EBITDA at 5009, 71 million up 61% year on year and a profit after tax at 3078 million. A 55% increase over the same quarter last year. What makes this performance even more noteworthy is that it comes despite planned annual maintenance on our cell lines during this quarter.
Thanks to strong execution on the ground, we were able to maintain high uptime and strong production volumes across the board. A key milestone this quarter was the successful commissioning of our 1.4 gigawatt module line and time bound commissioning of our 1.2 gigawatt Topcon cell manufacturing line. This marks a significant step forward in our growth journey and sets the stage for our next phase of expansion. We remain firmly on track to deliver on our mission 2028. Our ambitious roadmap to build an integrated 10 gigawatt invert to module manufacturing ecosystem. 12 gigawatt hours of battery energy storage systems, 3 gigawatt of inverter capacity by the end of FY28.
I’m happy to report that all projects are progressing well both on timelines and within budget. Reflecting our disciplined execution and long term vision, the macro environment continues to be highly supportive. We are seeing strong and broad based demand across all our focus segments. The solar industry is witnessing record capacity additions and we expect this momentum to continue on battery energy storage system. It’s poised to take off in a big way with about 19 gigawatt hours of capacity already awarded and more activity expected through hybrid and FDRE tenders. Meanwhile, the residential rooftop solar is gaining strong traction driven by initiatives like the Prime Minister Suryagar Mufbidi Yojana.
We believe that this will be a long term structural trend. On the policy front, we are encouraged by the government’s sustained push for domestic manufacturing and we expect further initiatives to promote upstream capacity and advanced future based technology development. Given the strong demand and outlook, we have accelerated our plans for both BEF and inverter manufacturing. We aim to have both verticals begin contributing to our top line from the beginning of FY27. Regarding our proposed cell manufacturing plant in the US we have decided to continue keeping those plans on hold for now pending greater clarity on the US Policy and tariffs.
That said, it’s important to note that our business model is deeply anchored in the Indian market. Less than 1% of our total order book currently comes from the United States. Looking ahead, we continue to evaluate new opportunities that align with our core strengths and offer scale and strategic fit. We remain agile and open to meaningful growth avenues that can complement and enhance our platform. As we approach our first anniversary as a listed company, I want to thank all our investors and stakeholders for your trust and support. We remain committed to building long term value and delivering sustainable, profitable growth.
FY27 will be a pivotal year for Premier Energies. We’ll be more than doubling our cell and module capacities and unlocking new revenues across different streams like Bess, inverters, ingot and wafer. We believe we are well positioned to lead India’s clean energy transition and create meaningful value for all our stakeholders. Thank you once again. With that we are happy to take your questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question group assembles. The first question is from the line of Subramanyam Yadav from SBS Life Insurance. Please go ahead.
Subramanyam Yadav
Thank you sir. I just wanted to Understand the order inflow numbers. We are at about 2000 crore inflow this quarter. But when you look at the breakup of that the cell mix has been increased to 39% versus 27% in the last quarter. So what is our strategy going ahead in terms. Because we have already commissioned our model for the MITI so how do we look at it? Whether it would be internally used or we are going to sell it to third party?
Vinay Rustagi
Yeah. Subdheem hi, good morning. This is Abhina here. So I think you know what has happened there is that you know there is a big demand for sales in the domestic market particularly you know, going beyond even FY26 and we’ve had a closure on a few of those sell orders And I think it is just the result in the share of sales in the order book is simply a reflection on that. I would also. That not too much. Should be read into them. For the. Business mix and modules. We have huge capacities coming up as you know.
operator
Sorry to interrupt sir, but your voice seems distance. Can you come closer?
Vinay Rustagi
Yeah. So far.
operator
Sir, it was a little bit distant.
Vinay Rustagi
Okay, so I was just saying that. We had going into FY27 the ratio of sales in the order book has gone up. Having said that we should not read too much into that as a specific company strategy. We have lots of capacity coming up for both sales and modules and we continue to evaluate the market environment in terms of demand and pricing and will fix a strategy on an ongoing basis accordingly.
Subramanyam Yadav
Okay. And sir, have you seen any pricing pressure? Because though we have improved in realization on cell and module but in last six to eight months there has been a couple of facilities come up so incrementally for next six months. Are you seeing any pressure in the guidance?
Vinay Rustagi
No. So the answer to that is as of now we don’t see any pricing pressure as you can see in the results for the quarter as well as what we have in our order book. I think there is a lot of volatility in the market in terms of pricing of some of the raw materials. But we don’t on the whole we are able to protect our margins and we don’t see that impacting our profitability.
Subramanyam Yadav
And for TCF annual maintenance, how much time the plant was shut down for this?
Chiranjeev Singh Saluja
I can take this for annual maintenance. So generally for annual maintenance we allocate about three days Mr. Subramano but then it could add another day or two for them coming back into the right efficiency numbers. So anything between.
Subramanyam Yadav
Thank you sir. Thank you very much.
Chiranjeev Singh Saluja
Thank you.
operator
Thank You. The next question is from the line of Mr. Mohit Kumar. Please go ahead.
Mohit Kumar
Yeah, hi, good morning. Congratulations on another good quarter. My first question is, sir, on the, on the order book, is it possible to help us see directionally the order book composition at the end of Q1 25 versus Q1 FY26, especially between DCR and non DCR, has the composition changed materially?
Chiranjeev Singh Saluja
So, Mohit, the composition has not changed materially. Of course there is an uptake in the DCR demand when you compare between Q1FY25 and Q1FY26. But then as our production lines also have come up, so I don’t see there’s a material change, but the demand for DCR is increasing. Starting June 26, as you’re aware, it will become totally ALCM, which is 100% DCR for the Indian market. Yeah.
Mohit Kumar
And the second question. So what is the progress on the approved list of sales? Has the application been submitted and when do you think the list will be made public or notified?
Chiranjeev Singh Saluja
So in our case the application has been submitted, fees paid, inspections done, and I think a couple of other manufacturers also have facilities which have been inspected and I think it’s now sitting with the National Institute of Solar Energy for them to compile and come up with the list shortly.
Mohit Kumar
My last question, sir, how is seeing the demand of the sale from us? Are you receiving more inquiries? Andrew? Fair to expect to see some booking in this, in this fiscal year for supplying sale to the US market.
Chiranjeev Singh Saluja
So on a short term or medium term outlook, there is a big demand from the U.S. but then we don’t have enough capacities. Our priority has always been to cater to the Indian market and we work very closely with the programs which are, you know, being monitored by the ministry. And the demand in India is so strong that we have no capacity for the us.
Mohit Kumar
Understood, sir, thank you. And best of. Thank you.
operator
Thank you. Ladies and gentlemen, I request you to limit two questions per participants and rejoin the queue for the follow up questions. The next question is from the line of Rehan Syed from Trinetra Asset Managers. Please go ahead.
Rehan Syed
Yes, good morning, sir, and thank you. For giving me the opportunity. Sir, I have two questions on the PLL side. So first of all, the company has achieved a 15.5% PAT margin this quarter. How sustainable do you believe this margin profile is?
Vinay Rustagi
Yeah, right now I, I’m audible now.
Chiranjeev Singh Saluja
Yeah, just move a little away from the phone and you can talk, please.
Rehan Syed
Okay, okay, okay. Now the company has achieved a 16.5% PET margin. This quarter. How sustainable do you believe this margin profile is given the rising depreciation crop? So you see, you can maintain this going forward.
Vinay Rustagi
See, I think Rehan, thank you for the question. You know, in terms of profitability, you know, when you look at the PAT number there are too many levers in terms of, you know, EBITDA obviously and then depreciation, interest and tax rate. And you know, on an ongoing basis there are a number of adjustments in all these parameters. So you know, for example, if you see even this quarter, the depreciation has come down, interest has come down, tax has come down and there are very good reasons for that and they will keep on, these changes will keep on happening on a quarter on quarter basis.
So I think the key metric for us that we look at is the EBITDA margin, which is how kind of we evaluate our order book and all the discussion pipeline discussions with the clients. So there I’m happy to say that our EBITDA margin that we have in our order book is pretty visible and attractive along the lines of what you see currently in terms of the PAT margin itself, there’ll be minor tweaks going forward because the depreciation rate for example, as we go forward there’ll be more drawdown on debt because of expansion of a new cell in module capacities.
And as the debt gets drawn down there will be more debt cost and that will kind of take away something from the PAT margin. So similarly the tax rate is dependent on the mix between our manufacturing business, the projects business, inventory valuation, etc. So I think because of that there will be some minor tweaks in the PAT rate. But overall the EBITDA margin is very stable and attractive.
Rehan Syed
Okay. Okay. So just clarifying that you asked for telling that we have focused on the EBITDA margin comparing the pat mar. That’s correct. Okay. Okay. And then second question around the order books that they have mentioned. That order book stands at 6000 but with 100% B exposure. So given the almost all address are India proposed. So how, how are you planning to re enter or scale exports especially with the growing, growing global demand rate? Is there any.
Chiranjeev Singh Saluja
Sorry, you’re not audible.
Rehan Syed
Okay, am I audible now? Yeah, yeah. I’m asking regarding the order book. 86,000 million right now exposures. Given that almost all orders are India profile. So how are you planning to reenter on scale exports especially with growing global demands? Is there any plan the internal team to focus on the export side also? No. What did you say? How are we going to. Scale in export Market, Is there any demand on that side?
Chiranjeev Singh Saluja
Yes, as we just answered the last question. We do not have capacities to sell into the export market. Our capacities are all sold out for the Indian market.
Vinay Rustagi
Okay, I’m clarifying that. Is there any demand that we have focusing for export for going forward? That’s what I’m. Yeah, there is a strong demand from the export market, but we don’t have capacities as of now.
Rehan Syed
Okay. Okay. And the last booking question, sir. What can you please tell me what is the CAPEX plan in this quarter and for FY26?
Vinay Rustagi
So on the CAPEX plan, I think we have been very clear in our presentation that, you know, we will, we have accelerated our BSS and inverter lines which will now come in Q1 of FY27 and our wafer manufacturing, our 4.8 gigawatt cell and module. All that is available in the presentation. Most of them are coming up in Q1, FY27 and I think something in Q2. FY27. Correct.
Rehan Syed
Okay. Okay. Thank you for answering the question. Thank you.
Chiranjeev Singh Saluja
Thank you.
operator
Thank you. The next question is from the line of Shivam Patel from PL Capital. Please go ahead.
Shivam Patel
Yeah, thank you for the opportunity. Just a clarification on revenue mix by business which was said in the ppt, it has changed for the past quarter. So how can we read those updated numbers? Yeah, the only question I have.
Chiranjeev Singh Saluja
Sorry, could you repeat that? Revenue mix. The revenue mix by business which was shared in the ppt, it has changed for past quarters. So how can we read those updated numbers? Yeah, so you see there is an increase in the module sales and that is because our 1.4 gigawatt of module line got commissioned on 16th of May. So. So there is a certain amount of production of module which has got added to our production line. And you see a 1% drop in the cell revenue which is also because of annual maintenance of the lines in the start of the quarter.
Okay. Okay.
Shivam Patel
Thank you sir. And all the best.
Chiranjeev Singh Saluja
Thank you.
operator
Thank you. Thank you. The next question is from the line of Deepakrishnan from Kotak Institutional Equities. Please go ahead.
Deepak Krishnan
Hi Cherry. Am I audible?
Chiranjeev Singh Saluja
Hi, yes, you’re audible.
Deepak Krishnan
Just more of a strategic question. Just wanted to get your take on, you know, building versus make. How do you kind of see this? You know, there are lines available at depreciated cost globally. Is there a chance that, you know, Premier would do that to accelerate its capacity additions and you know, what are their views? Because we’ve also seen some players, you know, commission At a shorter period of time versus you know, our initial lines were two years plus. Now it’s 1821 months for the remaining cell lines. So how do you see this in terms of, you know, Premier positioning itself for this?
Chiranjeev Singh Saluja
Yeah, so a Premier as a company we would always invest in advanced technologies and the latest equipment. So we would never look at depreciated or second hand lines. If you meant in Southeast Asia or in China, we would not want to foray into such an idea because these are equipments which are getting new upgrades every quarter. So we need to time it in such a way that we are not investing in an old technology. And the majority of the lines which are available in Southeast Asia China are monopurc lines are which. Which is again a technology which is phasing out and getting in monopol clients and upgrading them is not the best way to get the high efficiency or be a leadership have a leadership position on the efficiency front.
The other aspect of this is it’s not the equipment which takes time for the cell lines to set up. The equipments are available within six to eight months. The problem is when you have to start from the ground, the building, the utilities which have to be made in India and it’s impossible to get utilities from these depreciated lines in Southeast Asia or in China because those utilities have been built to suit those local requirements. So I think we as a company would not look at this aspect at all. We would want to build high class, state of the art lines and build lines which will give the highest efficiency in terms of value to the customer.
Deepak Krishnan
Sure. And maybe just wanted to understand like we look at this particular quarter, you know, the incremental sales have happened at, you know, very low margins. If I look at the incremental EBITDA jump, is that all a function of, you know, incremental sales have been ALM and non DCR sales because we are capacity constrained and that mix should ideally improve in coming quarters. And maybe just a follow up on the question the previous participant asked. Basically your sell and revenue percentages for the previous quarters have been restated in the presentation. Any particular factor that is driving that? So the Q4 number that was there in the Q4 presentation and this presentation do not match similarly for some of the other quarters.
So any factor that is driving that and you know, just in mix of it looks like all the incremental sales have been at, you know, 10% margin. So looks everything has to be alm that should sort of rectify as we sort of add the Cell capacity. And what stage are we in terms of stabilizing the. The 1.2 gigawatt line? Is it like in full production already this quarter?
Chiranjeev Singh Saluja
So line is not in full production. We have commissioned the line and started the stabilization process. We expect to achieve 25% and above efficiency sometime in the end of August or first week of September. So there would be a contribution coming in from cell line starting end of August or first week of September. And once lines stabilize, then, you know, looking at the deep knowledge we have on running these lines, they generally work consistently. In terms of the EBITDA and PAC margins, you’re talking the EBITDA margin went down, you know, mostly because of depreciation. We had upgraded some of our module lines in the last quarter.
And also the. You want to take this?
Vinay Rustagi
I will take this. Deepak, I presume you’re looking at slide number 25, is that right?
Deepak Krishnan
Yes.
Vinay Rustagi
Yeah. So I think what you see is that the operating EBITDA margin over the last two quarters has gone from 32.6 to 30.1%. And I think here what has happened is that the underlying the core EBITDA on the sales of the business has actually remained static at the same old levels. However, during this quarter there was a very sharp reduction in prices for sales and wafers in China. And because we maintain a large inventory of these products with us, we had to mark down the prices at which this inventory was held because our inventory pricing policy is cost price or current price, the lower of the two.
So it is only because of reduction in the inventory valuation which basically went through to the cost of goods sold line, which resulted in a reduction in the EBITDA margin that you see on the slide.
Deepak Krishnan
Sure, Vinay. And just Maybe on slide 27 itself, the Q4 number, you know, the percentages for sale is different in this versus the previous call. No, just a follow up on just on what he was asked. So slide 27, if I just. If I look at it, you know, the cell percentage this quarter for Q3 is 33 versus the presentation at that time. Sorry, 35. Since that time it was 33. And similarly, you know, Q4 number has been restated similar to what the previous participant asked. The percentage of cell and module, you know, on a quarterly basis.
The historical numbers are getting changed. Any reason how should we sort of read that?
Vinay Rustagi
See, just to clarify, Deepak, you’re looking at slide number 26, right?
Deepak Krishnan
The revenue by mixed business. The. The right bar chart, if I look at last quarter was. No, no. If I Look at the Q4, if I look at Q4 number, it is 70, 24 and 6, you know, versus the previous present, the same presentation last quarter was 74, 23 and 3. So any. And similarly the 32 number has also been restated.
Vinay Rustagi
Okay, so basically your question is about the restatement of the historic numbers.
Deepak Krishnan
Yes. Of cell and module and epc. The, the mix is, you know, being changed.
Vinay Rustagi
Deepak, just give me a minute. I’m just checking it.
Deepak Krishnan
No worries, you can go on to the next participant. I’ll join back on the queue so.
Chiranjeev Singh Saluja
That you can come back.
Vinay Rustagi
Sure, we’ll come back to you.
Deepak Krishnan
Thanks.
operator
Thank you. The next question is from the line of NIDISHA from ICICI securities. Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my question. So my first question is on the utilizations that we have given in slide number 24. So when we take the cell and module utilization, on what, on what capacity are we taking this utilization for Q1 for cells and modules? Like are we doing it on the effective capacity, the name grid capacity and what would be that number?
Chiranjeev Singh Saluja
It is on effective capacity and generally the number is, you know, the, the nameplate capacity less 10% is the effective capacity. And this is on that effective capacity.
Nidhi Shah
All right, thank you. And so another thing that I wanted to know is that how are you seeing the trend in the price in the pricing of the modules? Are you seeing that there is, there is a drop in drop in realizations not only for Q1 but also for the upcoming year? Where do you see the prices moving?
Chiranjeev Singh Saluja
So as of now, if you’re looking at the ALM non DCR market there we are seeing prices to be going up because the polysilicon prices, ingot vapor cell prices in China have gone up. So we are seeing an increase in the, in the sale prices. And if you’re talking about the margins, generally it’s a pass through cost for us. So we don’t have any.
Nidhi Shah
Lastly, on the Kusum scheme, what is your outlook on the Kusum scheme, especially the component B and the component C, are you seeing that installations are rising in the upcoming quarters? Are there any hindrances in those projects that are affecting installations?
Vinay Rustagi
No. So I think in terms of the Kusum tenders, the big volumes are expected to come in the next year, particularly for these ground mounted projects. As you can see from the data that we have shown in our presentation, the number of pumps installation, which is basically shown as upgrade ON slide number 13 has actually come down. And that is because bulk of the focus in Terms of the scheme is now on grid connected ground mounted projects and those tenders and auction awards happened over the last one year or so and hence we expect a major pickup in execution because of next one year.
Nidhi Shah
All right, thank you so much. Those were my questions.
operator
Thank you. The next question is from the line of.
Chiranjeev Singh Saluja
Can we just answer Deepak’s question on the slide number 23.
Vinay Rustagi
So Deepak, hi. So what has happened in terms of slide 26 is that the historically the data that we had given was only for the domestic market. So actually apologies, it was not complete but now we have adjusted that data for the domestic plus export reflecting our total business mix and hence there has been a re reporting of all the historic numbers.
Chiranjeev Singh Saluja
Deepak, are there?
operator
No sir, he’s not. Okay sir, the next question is from the line of Sujith Jain from Balic. Please go ahead.
Sujit Jain
Yeah, I hope I’m audible. So in terms of the.
operator
Yes sir.
Sujit Jain
Okay, great. In terms of the BSS that you’ve put out on your presentation A who are the suppliers currently in India? When do you start bidding and which are the technical partners that you are talking to? And do you see this deadline of June 26th? You will be able to come up with your facilities.
Chiranjeev Singh Saluja
So June 26th Sujith has got nothing to do with BSS. That is for the solar cell mandatory use of Indian made cells. To answer your question on bss, we are investing in a cell to pack in a containerized solution line. We have onboarded an experienced team and the line should be commissioned by Q1FY27. We are talking to various technology suppliers on the cell side, that is the battery cell which we’re going to import from China. So we have not concluded on the technology partner as we speak today. And in terms of customers whom we’re going to sell this to is mostly the developers who have bid and run projects in the IPP space.
Who’s our target customer to supply the Bess containerized solutions?
Vinay Rustagi
Does that answer your question?
Sujit Jain
In terms of the timeline, I’m not clear. June 26th is what your presentation says, 6 gigawatt hours.
Vinay Rustagi
Yes. Yes, that’s correct. So that is what chiranteep just said. Quarter one of FY27 is when we expect this capacity to come online and start selling.
Sujit Jain
Yeah. And in terms of the order book or booking of the order, in terms of timelines, when do you actually get into that process?
Vinay Rustagi
As we said we’ve just hired a experienced team and we’re adding to the sales team also over there we have simultaneously begun discussions with our IPP customers who are winning many of these hybrid or solar plus storage projects. So given that the first product is not expected to come out for another eight to nine months, we would expect order conversion somewhere towards the end of the year.
Sujit Jain
Sure. And who are the suppliers currently and what capacities in India currently other players would be having? That’s my last question. Thank you.
Vinay Rustagi
Yeah, sure. So I think at this point in time, the capacity in India is very, very small. Most customers are looking to import completely packaged solutions from other countries. But over a period of time, particularly given the government’s focus on indigenization, this entire value chain is expected to shift to India.
Sujit Jain
Thanks.
operator
Thank you. The next question is from the line of Bala Murali Krishna from Omen Investment Advisors. Please go ahead.
Bala Murali Krishna
So do we have any incremental revenue. From the resources to capacity additions in this quarter?
Chiranjeev Singh Saluja
Could you be a little louder?
Bala Murali Krishna
Yeah, just a minute.
Vinay Rustagi
Yeah.
Sujit Jain
In this current.
Sujit Jain
Yeah, yeah, I got your question.
Vinay Rustagi
So basically our module line got commissioned in May and we had part of the production coming through reflected in our numbers. And to that end, yes, there are some incremental revenues in the business. On the sell line, the commercial production has just begun, so that is not shown in the quarter at all.
Bala Murali Krishna
So going forward in this next quarter or third quarter. So how much incremental revenue we can expect from these two additions? And I think there is no further coming in this year.
Vinay Rustagi
I think it is very simple maths, Bala. I mean the total capacity that is coming online is 1.4 gigawatt modules and 1.2 gigawatt cell. Effectively, if you take it at about 75% capacity utilization and the prices that are currently in the market, they will give you the expected uptick in the revenue numbers. What I will say though is that while the module line is now currently nearly operating at full capacity, the cell line will take some time to ramp up and get the right efficiency, which we expect to happen over the course of this quarter.
So I think this quarter you will still see only part of the uptick coming through with the balance coming in the next quarter.
Bala Murali Krishna
Okay. And gross margin side is.
operator
Sorry to interrupt, but I request you to join the queue for the follow up question. Thank you. The next question is from the line of Anupam Goswami from SUD Live. Please go ahead.
Anupam Goswami
Sir, can you give us a hint on the. What’s our DCR content this time and how are we going to ramp up or where do we see the mix going forward? And also sir, on the capacity that is coming on the cells in the industry and our long term strategy to say right now we are enjoying a high DCR prices. Now when the capacity comes, what’s our view and strategy on that?
Vinay Rustagi
Anupam, Sorry can you repeat the first part of the question about. You said something about DCR content.
Anupam Goswami
Yes. So DCR mix this time where are we at? How much mix and going forward where do you see that ramping up and how fast ramping up.
Vinay Rustagi
So you know, in terms of the DCR versus the non DCR mix in our business, you know we don’t reveal these numbers. Now in terms of the demand, you know the DCR demand is obviously given, is going up steadily. Given the shift given the introduction of ALM2. Our estimate is that the current run rate of demand for DCR modules is about 15 gigawatt per annum. That is basically the Suryagarh Yojana, the Kasumsk scheme and the PSU scheme. But from early next year onwards we will see the open access demand coming through because projects commissioned by June 2026 will have to procure cells and modules made in India.
And so there on early 26th onwards we expect the demand run rate to increase to about 25 gigawatts. And then somewhere towards the end of the year, early 2027 the entire market, which is about 40 to 45 gigawatts will shift towards DCR. And our sales mix will basically largely reflect the changing mix of the market.
Chiranjeev Singh Saluja
And just to answer your question on the capacity, so you know, I mean we are closely monitoring the situation and our view remains that the market is expected to remain favorable with a strong demand. It’s worth quoting that recent report of BNEF projects. Annual deployment in India to go up from present 40 gigawatt to 125 gigawatt per annum in the next 10 years. And we feel it’s a difficult business for new entrants. New capacity usually takes much longer than expected to come online and ramp up. And moreover the IPP clients, the developers in India are very selective with the preference for integrated supplies offering scale, advanced technology, proven track record and bankability.
So we believe that we enjoy a strong competitive position on all these parameters.
Anupam Goswami
Just one, if I can squeeze sir, a little on the long term. When we see this DCI pricing coming down with the sales or the demand also subsiding, then what’s our strategy to diversify out of India or in the product lines?
Chiranjeev Singh Saluja
So I don’t think that the demand is looking to be coming down. What we are seeing is the demand is going to go up consistently, as I just mentioned, to about 125 gigawatt per annum in the next 10 years. So even if you look at 125 gigawatt demand, which means that the capacity of manufacturing should be at least about 17075 gigawatts in India over the next 10 years. So we don’t see that the demand is coming down.
Vinay Rustagi
But equally at the same time, you know, in parallel to that you already know what is our expansion and you know, vertical integration strategy. So we are going backwards into ingots and wafers and entering new businesses like batteries, inverters and even making ancillary products like aluminum frames. So while the module business will continue to grow, as Chiranjeev said, there’ll be additional revenue streams coming from all these new businesses and that will provide us with the growth that is expected in the business.
Sujit Jain
Great sir, thank you so much. I’ll join back in with you.
operator
Thank you. The next question is from the line of Aman Jain from Bernstein. Please go ahead.
Aman Jain
Hi Cyan Audible.
Vinay Rustagi
Yes Aman, you are.
Aman Jain
Hello. Yeah, hi. Thank you for taking my question. Yeah, just one question. If you look at depreciation number it. Has declined Q and Q even when we are adding new assets. So I just wanted to check with you guys that.
Vinay Rustagi
Yeah, so I think I had answered this question sometime back is that last quarter we had an increased depreciation because we upgraded our solar module line stringers from the old technology to the latest technology and hence the depreciation was slightly higher in the last quarter compared to this quarter.
Aman Jain
All right, all right, got it. Thank you.
operator
Thank you. The next question is from the line of mayur patel from 361AMC. Please go ahead.
Mayur Patel
Congratulations Chiranjeev and the team for robust setups. Just give us some idea about the current pricing in the market on both module and the DCR cell side.
Chiranjeev Singh Saluja
So pricing Mayur is fairly constant. It would actually see a slight increase due to prices in China going up. On the non DCR side we would see an increase because solar cell prices in China in the last couple of weeks have gone up by almost 30% and this is almost close to a cent which is incremental price in the. In the sale price from China and it doesn’t affect our orders with our customers because. Yeah, so our contracts are generally passed through with variable prices. So prices in the market are fairly stable. And our order book is going into almost 12 to 15 months which our contracts are signed.
So we don’t see any Significant change in margins. Okay, so it’s around $0.16.
Mayur Patel
The sales for the DCR market. Currently.
Chiranjeev Singh Saluja
DCR market sell prices range between $0.14 to $0.16. So an average of about 15, I would say.
Mayur Patel
Got it. And Chandev, any color on the pipeline. Of new order booking. Is it possible to share anything? It would be helpful.
Chiranjeev Singh Saluja
So as we speak today we have signed significantly large orders post 30 June. And generally we are very, very clear on our internal policy on the order book. It has to be a fully secured signed order book. What we disclose in terms of pipeline, we have a very strong pipeline going into FY27. The number is fairly large. But we generally refrain from giving numbers as a future guidance. But if you align with the capacities that which we are putting up which are coming up in June 26, the pipeline is significantly larger, you know, compared to the volumes that we are the factories that we are setting up.
Got it.
Mayur Patel
Thanks. All the best.
Chiranjeev Singh Saluja
Thank you.
operator
Thank you. The next question is from the line of Nitin Arora from Axis Mutual Fund. Please go ahead.
Nitin Arora
Hi sir. Thanks for taking my question. Hi sir. So just you also said that there has been volatility in the sell prices. We saw that in the last two months. But now we are seeing even wafer prices. Sell prices going very up. Very sharp move. What we have seen in the last two, three months. Can you throw some light how the. Indian IPP thinking about this in terms of clocking prices now? Because I think the previous question you said you’re seeing very large pipeline. So is it like the ipps now are going ahead and closing the orders? If you can throw some light because you deal with them. So just if you can throw some light on that aspect.
Chiranjeev Singh Saluja
I think you’re spot on on this Nitin. It is a general tendency when prices are going up, you want to quickly lock up the deals and then they’re dropping. You expect that they’ll drop further and you keep waiting. So I think you’re right on that. You’re seeing a strong uptake of IPP is wanting to close quickly now and this will of course show up in. Our next quarterly results.
Nitin Arora
Okay. All right. Got your point, sir. Thank you.
operator
Thank you. The next question is from the line of Sarang Zuglekar from Vimana Capital. Please go ahead.
Sarang Joglekar
Yeah, hi. Thanks for the opportunity. I’m looking at slide 14 where you. Have given the whole demand scenario. Just can you break it up into various sources like how much is coming from each source annually, say the main. Tendering agencies, NTPC and All the state. Discoms, corporate rooftop and. The household rooftop. So and maybe how much demand is. Coming if you could.
Vinay Rustagi
Sure. Sarang. Just to clarify, you’re looking at the slide number 14 with the title Strong Demand with for DCR.
Sarang Joglekar
Yeah, but I just wanted understanding on the entire. Not just DCR, non DCR as well.
Vinay Rustagi
Sure. So I think Slide 14 is kind of self explanatory in a way. The Suryagar Yojana demand is obviously ultimately coming in from the households wherein the demand is aggregated by the distributors and the local installers and hence our customer continue is typically these entities in the PN Kusum Yojana. Again you know that Kusum scheme has multiple components comprising both solar pumps as well as ground mounted projects. Solar pumps. Obviously you have these large companies, you know who are all the customers and then for the ground mounted projects it is the same IPP customers that we see in the normal utility scale business.
CPSU scheme is basically all PSU companies like ntpc, nhpc, SECI et cetera. These are mostly tender driven procurements and we have historically had a low share in this market. The corporate market is a mix of the captive consumers themselves. So for example the steel companies, IT companies, et cetera and the ipps who are setting up these projects for the end customers. And finally the utility scale solar is the large, is basically all the large private as well as the public sector ipp. So that is basically the typical, you know, customer profile in each of these markets.
I would say from our business point of view, we have historically had a much larger presence in the private IPP business. We’ve done some public sector business in the past, although that business is much smaller share of our business mix right now. Now the one change that we are making going forward is that we want to scale up our presence in the rooftop solar market, particularly with the demand growing exceptionally in the residential segment. So there we are making a lot of effort to enlarge our distribution base and spend more on marketing and branding efforts targeted at the end consumer.
Sarang Joglekar
Got it. So follow up question. Sure. You said that annual demand would be around 4045 gigawatt modules. Right.
Vinay Rustagi
And if you see ALM list the capacity enlisted is already at about 90 gigawatt and you still are maintaining margin.
Sarang Joglekar
So just trying to understand like if. The capacity is already there, why isn’t. There still pressure on pricing?
Chiranjeev Singh Saluja
Yeah, so I think we have, we have answered this earlier also that you know, the ALM format is such that even players who have, you know, 300, 500 megawatts of annual capacity which are supposed to operate 24 by 7. The capacity is on the basis of 24 x 7 operations and many of these lines do not operate 24 by 7. The other thing is that if you look at the capacity utilization we have, you know, large capacities but the utilization is quite low. So we as a company have always thought of growing with the integration of cells and ingot vapor.
So you see higher capacity utilizations in our case and the 90 gigawatt what you see on the ALM is not what is all operational, not what is all automated. Many of the lines are semi automated. An IPP developer would not buy from such lines. So I think that should answer your question.
Sarang Joglekar
So in your estimate how much is the actual.
operator
Sorry to interrupt but I request you to join rejoin the queue for the follow up question.
Sarang Joglekar
That was the last one.
operator
Thank you. The next question is from the line of Nikhil Somani from Nexa Investment Advisors. Please go ahead.
Nikhil Somani
Hi. So just taking a cue from the previous participant, right Try to understand the demand supply especially on the module side. So from what we understand on the. Module side, against a demand of 40 gigawatt the industry is expected to go to let’s say 160 to 170 gigawatt nameplate capacity in the next couple of years as against 9200 gigawatt currently, which the previous participant alluded to. Now on 160 to 170 gigawatt even at a 60 to 70% utilization, we get 200 to 120 gigawatt of available supply against let’s say two year down the line a demand of 50 gigawatt. So optically it still looks like we will end up in a high oversupply situation in the next two to three years. So how do you look at this?
Chiranjeev Singh Saluja
Yeah. Now let me explain this to you. I think we are missing the biggest point here that starting June 26th even though you have 100 gigawatt of module capacity, you would not be able to sell those modules with cell capacity because you have to use Indian made cells. So the limitation factor is not the module but it is the cell. Today’s cell capacity in India is around 2025 gigawatts and this has to grow to about 150 gigawatts as the demand increases. So we foresee that the demand supply situation would continue to be as it is for at least two to three years.
We don’t see that there will be an overcapacity over the next two to three years.
Nikhil Somani
So effectively sir, what you’re saying is for an integrated player like us, you know, probably given the fact we have a sizable cell capacity, it shouldn’t impact. But for a fringe player or a player who’s just into module right now and not even integrated to the cell level, things could be worse.
Chiranjeev Singh Saluja
They would, they would, they would be impacted big time if they don’t have cells.
Nikhil Somani
Understood, Understood. Or if they didn’t buy up with cell manufacturer who could supply themselves. Got it. And on the capacity utilization for the module line which has steadily been rising for us from 69% six to nine months back to 77% right now. I think you earlier mentioned that the nameplate capacity is 10% less and the effective capacity is let’s say 90% of the nameplate capacity. And right now we are operating at 77% of effective capacity which is essentially 70% of the nameplate capacity. Would it be fair to assume that we are operating at fairly advanced capacity utilizations and not much scope of improving the utilizations there?
Chiranjeev Singh Saluja
Yes, you’re right. Because in module line you’re making different kind of modules of different wattages for customers. We would be making 580 watt modules for a customer A&A 615-620 watt for a customer B. But that’s not the case in a cell line. You just make one single product continuously. So in modules we don’t expect utilization capacity to go beyond around 80% of the effective.
Nikhil Somani
80% of the effect. Got it? Got it. Okay, thank you.
operator
Thank you. The next question is from the line of Bala Subramanian from Arihant Capital.
Balasubramanian
Please go ahead. Good morning sir. Good morning sir. Thank you so much for the opportunities. Sir, my first question regarding the industry, I share the monopole capacities. It’s anywhere between 30 gigawatt right now and right now the industry itself transitioning to Topcon. I just want to happen existing capacities, whether the real demand is there for motor and if you could share that split between monopoly Topcon and Haiti in the industry in India and how these Chinese transition happening Because I shared some of the players are importing secondhand top one machines they they installed in India.
How this transition happening on the technology side? Because if you look at in 2000, 2002, 2015 polycrystalline technologies are there. It’s almost 15 years from 2015 to 2025, 26, almost 1011 years like the people are talking about post 2030 the HT will be in the place whether how this transition happening and the timeline is also reducing. If you could Share some details about the industry and how this transitioning happening.
Chiranjeev Singh Saluja
Yeah. So let’s start with China. In China, majority of the technology share is with topcon and we are seeing that the HJT is not growing in China, it’s topcon. And the roadmap from Topcon to topcon back on that. And Tandem is all very clearly visible with majority of the players working on Topcon technology. If you talk about India, we have about 20 to 25 gigawatt of capacity today. Out of that I would say about 70% is monopoly. Could be Topcon and thin film. Right. But any new line coming up would be topcon. And to answer your question on getting secondhand Topcon like China is something we do not think is the right decision because most of these lines would be two to three years old and the efficiency you would get from these lines would be almost a percent lower than.
The latest technology lines.
Chiranjeev Singh Saluja
So we as a company do not believe in, you know, investing into two to three years.
operator
Sorry to interrupt, but your voice is breaking.
Chiranjeev Singh Saluja
All right, am I, am I clear now?
operator
Yes, sir.
Chiranjeev Singh Saluja
Yeah, so I was telling that we as a company would not recommend or would want to old technology line from China because the efficiency you would get out of them would not be really up to the mark.
Balasubramanian
What is today? Okay, sir, so quick question about the recycling. Are we planning any recycling plant for like solar modes and all that we can able to reuse it?
Vinay Rustagi
Yeah. Hi Bala. This has been ahead. So in terms of recycling, you know, we’re very, very keen to ensure that we have access to a high technology, completely environmentally compliant recycling source. So to that end, you know, we are in the process of identifying some partners and entering into strategic tie ups with them. We don’t see it as a core activity for ourselves. So you know, we are not going to invest and develop these plants ourselves.
Balasubramanian
Got it sir. Thank you.
operator
Thank you. The next question is from the line of apurva from IIFL Capital. Please go ahead.
Apoorva
Hi, thank you so much for the opportunity. Sir, wanted to. Hi, I wanted to know your thoughts on this US anti dumping duty. There was some news flow around it. How do you see that panning out in case it gets implemented? Do you see it having an impact on the Indian market demand supply dynamics as well given that it will essentially close the US export markets?
Vinay Rustagi
Yeah. So I think investigation has just begun and you know, there is a pretty long period for these investigations to get completed and any duty to get effective. In general, I would say, you know, the two main grounds for any such Duty are one, you know, the producers selling goods at below cost, which we know is definitely not the case in India. The second main ground is often the company is getting subsidies from the government. So you know, we believe the case for this is kind of not very sure. And definitely the Indian companies are not selling any products below their cost levels.
In general, I think the timeline for this investigation is incomplete and it is very hard for us to assess, you know, what is the viability of exports to the US market. We also have to remember that there are a couple of other issues in relation to the US market, mainly the outcome of the pending U. S. India Trade Treaty as well as the other levies that the US government is proposing against BRIC nations or other countries buying Russian crime crude, etc. So I think in general there is quite a lot of unknowns in relation to the US market and hence for the time being at least, because of that uncertainty, we are not placing much value on the potential of the US market.
Until all these issues become clearer.
Apoorva
This company is getting subsidy from government, sort of leave them open for a potential duty action from us. Is my understanding correct?
Chiranjeev Singh Saluja
See, I think if you look at. These subsidies, they are mostly at the cell level. Now on the cell level you could argue that there is no case for the US companies to support any duty because the US cell capacity is actually very, very limited in relation to the domestic demand. The cell capacity today is only about 5 odd gigawatts in the US and all those cell manufacturers are actually sold out in the US So for them to claim injury because of any cheap or subsidized imports from India is not actually a legitimate argument. So I think that is why I say that we don’t believe that there’s any kind of solid ground for this investigation.
But of course we have to wait until the outcome is known. Exports are very understood and I think.
Vinay Rustagi
Sorry, go ahead. Point is that, you know, our reliance on the export market is next to nil and hence, you know, we are protected irrespective of the outcome of this investigation.
Apoorva
Yeah, understood.
Vinay Rustagi
I think.
Apoorva
Fair enough. Another question I think, and I would love to have some color from you.
operator
Sorry to interrupt.
Apoorva
This is my second question. You’re allowed to. For participants.
Chiranjeev Singh Saluja
Sorry.
Apoorva
Thanks. Yeah, so just. Just wanted to get some color from you. On. On. How is the Indian market discovering pricing for cells and modules? Is it based or still based on the Chinese pricing? Or is the Indian market now deep enough to have its own price discovery?
Chiranjeev Singh Saluja
I think we always had our own price discovery. It was Never related to the Chinese prices. And if you see Chinese have been dumping and losing money quarter on quarter and that is the reason why, you know, the association reached out to the government for support and they have increased prices by about 30% at cell level and substantial increase in vapor and polysilicon. So we never had any comparison to prices in China because prices in China were varying by over 70, 80% over a year. You know, so it’s very difficult to compare with China. True.
Apoorva
Yeah, I understand that. From a, from a floor pricing perspective, yes, that was the case. But now given that the Chinese have such increasing pricing, do you think it will percolate to the pricing of Indian cells and modules as well irrespective of the input cost? So can the prices go more than the input cost increase?
Chiranjeev Singh Saluja
No, I think it’s. We have a variable contract. So whatever increase for non DCI model gets passed on for a DCR module. Whatever increasing the wafer gets passed on. See Apurva.
Apoorva
Okay.
Vinay Rustagi
The Indian market ecosystem is actually developing and maturing rapidly as you can see with the rising capacity both for cells and modules. Second, over the next one to two years, one, one and a half years, we will see a complete transition to India made products because of almm. So because of that there is really no connection between what is happening in China and what is happening in India. The Indian market as you I think were trying to say, there is a completely independent price discovery in the Indian market depending on local demand, particularly given for DCR cells and modules and local supply.
Apoorva
Understood. Thank you so much.
operator
Thank you. The next question is from the line of Manit Mahavar from UBS. Please go.
Amit Mahawar
Sorry, I have just two quick questions. First is our decision. If you see the business mix and business model we definitely skew towards the utility and CNI in domestic market exports and retail rooftop to some extent you answered the question about exports. But still both these segments on a five year basis are going to be an important share of the total TAM for you. So any thoughts about these two directionally for us? And second question is more. Starting next year if things are on track, we will see a potential shortage in local cell capacities. Where do you think on a three year basis say on FY25 to 28 the cell demand supply will move.
Thank you sir.
Chiranjeev Singh Saluja
So on export side answered on retail we are focused. We have a channel sales distribution network and we are supplying I would say almost 60 to 70% of our DCR manufacturing into the rooftop segment and about 35 to 40 to the kusum. So There is a very clear focus from the ministry and from the company to supply as much as we can to the rooftop segment. To answer your question on when do we estimate that cell capacity would be enough? My take would be at least about three years where you have enough cell capacity to get to the local demand.
But then it’s subjective as to how the demand would shape up. If the demand shapes up much faster then of course this could go even longer. And given the fact that it’s not easy to set up cell lines, this would take about three years.
Vinay Rustagi
Correct.
Amit Mahawar
Thank you.
Vinay Rustagi
Does that answer your question, Amit?
Amit Mahawar
Yes, sir. Thank you.
operator
Thank you. The next question is from the line of Subramanyam Yadav from SPI Life Insurance. Please go ahead.
Subramanyam Yadav
Thank you sir for taking the sharing. Thank you. Second thing I just wanted to ask is on the inventory front, what is the write off? We have taken this quarter and incrementally as I understand that in the order book we won’t have any impact because we have passed through. But the new orders, what we are going to take from the utility. Are we able to pass on that incremental increase in the Vaser or sell prices?
Chiranjeev Singh Saluja
Yes, for the wafer and sell we do pass on. And for the provision what we have made, as Vinay had said, as a policy, we value our raw material stock at either the cost or the net realizable value. So in the last quarter prices had gone down. And because of which as prudent governance practice we had, yeah, accounting standards, we had created this provision. But then this keeps changing quarter on quarter. If prices go up then we would go back to our, you know, purchase cost. It would not be then as per market prices.
Subramanyam Yadav
Okay, and what about it is subliminium.
Vinay Rustagi
High key thing there is that it is not a loss for the business. It is just an accounting entry. And ultimately these inventory is held on account of the customer and any price increase or decrease is passed on to them. So to that end our position in terms of margins and profits is completely protected.
Subramanyam Yadav
Yeah, understood sir. And what about the incremental thing? Because 30% increase in the raw material cost are the utilities agreed to such increasing prices in the in the future orders?
Chiranjeev Singh Saluja
They have no choice because if they have to buy, sell and they are dependent on China and if prices go up they have to pay the cost of the sell what China is selling. And this is the reason why we need to be having a very strong ecosystem of manufacturing in India where a developer who bids for projects gets a fairly stable supply chain security rather than Face these volatility. So this is passed on to the customer. That’s.
Subramanyam Yadav
Okay. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Kunal Shah from Dam Capital. Please go ahead.
Kunal Shah
Yeah, hi sir. Am I audible?
Chiranjeev Singh Saluja
Yes.
Kunal Shah
Yeah. So thanks for taking my questions to from my side. Now recently one of the leading solar EPC companies mentioned about a bit of slowdown in the tendering activity because of confusion around the ALCM timelines as one of the reasons and that there is less confidence on India becoming self sufficient on cell by June 26th. Now could you just throw some light here and do you see slippage of timelines here in terms of implementation?
Chiranjeev Singh Saluja
No. So Kunal, when you say slowdown in tender activity, you’re talking about tender issuance, I presume you’re right. There is a definite slowdown there. But bear in mind that we have more than 130 gigawatts of solar projects which have been tendered and auctioned and are currently in the pipeline. And there’s a small share of that where the PPA capacities have still not been tied up with the ultimate DISCOM customers. So I think this is a very conscious move by the government to basically completely tie up the old auctions in terms of PPAs and then move on to new auctions.
So I think we typically see this kind of cyclical pattern in the sector where we see a lot of auctions which take where the market takes time to absorb, followed by a slight slowdown in new tenders and followed by uptick in tenders again. So I think it is all very kind of natural and normal activity. But the good news there is that I think three, four months ago we were talking about more than 40 gigawatts of projects being held up with PPAs not being signed up. But a lot of those PPAs are now, particularly for renewable and hybrid projects are being tied up and the backlog is being cleared up.
So we should shortly see an uptick in the tendering activity I think from next quarter onwards.
Vinay Rustagi
Sure. And just to add the June 26 deadline would not affect the projects which have been tendered recently because they have 18 months of timeline to complete these projects. So we feel that the demand from the present levels going up over the next two to three years is going to be quite stable and in sync with the capacities which are available. We don’t see over capacity. What will happen from June 26 is the CMI segment will have to switch over to the ALM List 2 compliant but the tenders which have been bid, they have 18 months and they would look at buying modules at least 12 months post the tendering date or post the PPA signing date.
Kunal Shah
Understood. This is very helpful. Second, on the CAPEX towards your ingred wafer project, right? I mean, and given it’s a large capex now, could you just help? Because on the understanding bit, would we need some sort of policy tailwind here in terms of DCR benefits etc. And are we seeing any developments there? And also I don’t know if you have clarified this on the previous calls, but could you just help the cost of production of wafers and how competitive we would be versus, let’s say Chinese imports.
Vinay Rustagi
Yeah, sure Kunal. So I think, you know, in terms of the policy. So the good news there is that, you know, we are in active discussions with the government which is trying to assess the market landscape and is considering a very comprehensive policy combining incentives, duties and kind of measures. So it is in anticipation of that policy that we have announced for the time being, only a 2 gigawatt wafer plant and most of the development of the remaining 8 or 10 gigawatts of capacity is going to be back ended towards end of FY27, FY28. So you know, that will be after we have more clarity on the policy front in terms of the cost of manufacturing ingots and vapors.
I think it’s kind of too early to say because the local ecosystem is not really developed. But based on all the discussions we are having, once we have scale and we can develop domestic vendors for some of these products, we believe that we can reduce any cost delta over the true cost of Chinese manufacturing to very, very manageable levels.
Kunal Shah
Understood. This is extremely helpful. Thanks a lot, sir.
operator
Thank you very much. Ladies and gentlemen. We’ll take this as the last question for today. I would now like to hand the conference over to management for closing comments.
Vinay Rustagi
Thank you. So I think overall, you know, there is, you know, a little bit of volatility in the market in relation to, for example, supply of raw materials and prices in China, the US duty structure, etc. From our point of view, we have been very, very focused one, on making sure that our profitability remains intact. Second, that execution of a new project which are going to more than double our capacity and have a good impact on revenues and profits to make sure that the execution remains on track and on cost. And that is where we are focusing on.
So as Chiranjeev said, our main objective here is to be one of the leading players in the entire clean tech manufacturing space with scale, vertical integration and latest technologies. And we believe that given the initiatives that we are undertaking, we are well poised to remain at the forefront of the sector. With growing demand and a growing business, I think we can expect very good results from the company in the coming years.
Chiranjeev Singh Saluja
Thank you.
Vinay Rustagi
Thank you.
operator
Thank you very much on behalf of ICICI Securities Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.