Saatvik Green Energy Ltd (NSE: SAATVIKGL) Q1 2026 Earnings Call dated Oct. 10, 2025
Corporate Participants:
Abhishek Nigam — Analyst
Neelesh Garg — Chairman and Managing Director
Abani Kant Jha — Chief Financial Officer
Prashant Mathur — Chief Executive Officer
Analysts:
Harsh — Individual Investor
Surinder Singh — Individual Investor
Kunal Shah — Analyst
Deepak Poddar — Analyst
Kartik Sharma — Analyst
Sarang Joglekar — Analyst
Chirag Jain — Analyst
Jainam Vora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the SASBIC Green Energy Limited Q1FY26 earnings conference call hosted by Modilal Oswal Financial Services Limited. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Abhishek Nikkar from Motilalo’s Financial Services Limited for opening remarks.
Thank you. And over to you Abhishek.
Abhishek Nigam — Analyst
Yeah. Thank you Ryan. Hi everyone. Good morning. Thank you for joining Q1FY26 earnings conference call for Satvik Green Energy Limited from Satvik Green Management. We have with us today Mr. Nilesh Garg, Chairman and MD Mr. Manik Garg Managing Director, Mr. Prashant Madhur, CEO and Mr. Abri Jha, CFO. And now without any further delay, I will hand over to Mr. Nilesh Garg for opening remarks. Over to you sir.
Neelesh Garg — Chairman and Managing Director
Good morning everyone. It is a real pleasure to welcome you all to. Satsik Green Energy Ltd. Made an earnings call after our listing on the stock exchanges. On behalf of the entire Satvik team, I would like to thank our shareholders, investors and partners for the trust and confidence that you have placed in us. I hope you have had a chance to Review Our Quarter 1 FY26 results and investor presentation which are available on the exchanges and our website.
Joining me today on the call are Mr. Manigar, our managing director. Mr. Prashant Mathur, our chief executive officer and Mr. Abni Khan Jha, our who is our Chief Financial Officer. Before I move ahead, I’d like to take a moment to talk about our recent IPO. A significant milestone in Sati Green and OG’s journey.
Our Rs. 900 crore initial public offering received an encouraging response from the market with overall subscription of 6.93 times. We are truly grateful to all our investors and stakeholders for the trust they have placed in our vision and growth story. The proceeds from the IPO will primarily be used to fund our upcoming greenfield manufacturing project in Odisha.
A portion of the funds will also be utilized to repay debt in one of our subsidiaries. Further strengthening our balance sheet and enhancing financial flexibility. To share a brief overview of our company, Satri Dien Energy today is among India’s leading solar portable type module manufacturing. We began operations back in 2016 with a modest 125 megawatt capacity and since then have grown rapidly to reach about 3.8 gigawatt of installed capacity as of June 2020. We have added 1 gigawatt of capacity in quarter 2 FY26. Over this period we have supplied more than 2.5 gigawatt of high efficiency modules, a strong validation of our quality, execution and customer trust. We operate across the renewable energy value chain combining module manufacturing, EPC and O and M services which gives us a clear competitive advantage and helps us deliver end to end solar solutions coming to our products.
Our diverse portfolio includes advanced monoperc and N topcon modules available in both monofacial and bifacial configurations. These modules are designed for higher efficiency and are suited for residential, commercial and large scale utility projects. Talking about our manufacturing footprint, we currently operate three state of the art model manufacturing facilities in Ambala, Haryana. Spread over 7 24,000 square feet.
This is one of the largest single location setups in the country equipped with fully automated production lines that ensure precision and consistency across all stages. To meet growing demand, we have added another 1 GW capacity at Ambala which should be operational henceforth, taking our total capacity to 4.8 gigawatt.
Beyond this we are expanding our capabilities further with a fully integrated cell and module manufacturing facility, no visa, 4.8 gigawatt for sales and 4 gigawatt for modules expected to be commissioned by quarter 3 FY27 and FY26 respectively. With our expanding manufacturing base, proven execution, track record and integrated business models, Satwik Green Energy is well placed to capture these opportunities and play a meaningful role in advancing India’s renewable energy transition.
With this I would like to request Mr. Abni Jha, CFO SAPigree to take us through our financial highlights for the quarter
Abani Kant Jha — Chief Financial Officer
And good morning everyone, I hope I am you are able to hear my voice. I’ll take take you through the key financial highlights for the quarter in this June 32nd to FY25 our first set of results as a listed company, Kathleen Green delivered a strong performance during the quarter with growth across revenue, profitability and return ratios.
Some of the numbers which I would like to mention here is revenue from operation is due that 916 crores approximately registering the 272% year on year growth. EBITDA came in INR181 crores up 346% year on year translating into an EBITDA margin of 19.8% compared to 16.5% in Q1 FY25. Profit after tax increased sharply to INR119 crores of 459% growth year on year with pat margin in Improving to 13% versus 8.6% in Q1FY25. During the quarter we had high capacity utilization of 81.47% and a strong production of 685 megawatt. On the balance sheet front return on equity is 2 at 26% and return on capital employed at 24% non annualized indicating efficient capital utilization.
Debt equity ratio we have improved to 1.28% from 1.36% in FY25. Now I would like to hand over the call to Mr. Prasanth Matu. Sorry. Sorry. So now I would like to hand over the call to Mr. Nileshkar for his remarks.
Neelesh Garg — Chairman and Managing Director
Thank you. Thank you Mr. Jha. Overall the company continues to maintain a solid financial foundation while investing in future growth opportunities in module manufacturing and etc. We aim to further enhance our brand positioning by embedding sustainability and operational excellence at the core of our business strategy.
Thank you and we can now open the floor for questions. The management team and I will be happy to address any questions that you may have.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen. 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 remove yourself from the question queue you may press star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
We take the first question from the line of Harsh who is an individual investor. Please go ahead.
Harsh
Conversations on the listing and spectacular human number. My first question is regarding the order book visibility as he continues to expand capacity. So how we are anticipating the demand from the industry and what will be the space of order improve and execution going forward?
Neelesh Garg
I will request Mr. Prithhan Madhu, the CEO of the company to respond on this.
Prashant Mathur
Thank you Mr. Jha and thank you for the question. So our order book as on June 30 stands at over 4 gigawatt and the order book generally comprises of medium and long term orders. Apart from that there are spot orders as well as retail distributor orders which you receive and these are in small quantities but large number of these orders are there every month and these get executed. So which is also about 25 to 30% of our monthly sales. And so that is not there in the order book. But since our capacity was 3.8 gigawatt, we are adding one more gigawatt because of high demand. And that is the reason why we have the order book today is over 4 gigawatt. As we are adding more capacities, we will be adding more orders.
But normally these orders are on a running basis of 9 to 12 months supplies. So every month these orders also get executed and new orders are booked based on how much capacities are available to sell. We have fantastic visibility going forward.
Harsh
Okay. And my second question was could you please share some growth outlook like any margin outlook in targeting in FY26 and FY27?
Prashant Mathur
So if you see last two years consistently we have logged EBITDA of over 16%. Last year was over 16.5% which and this year first quarter the EBITDA has been is 19.8% in the first quarter.
Going forward, it’s difficult to really give a number of what EBITDA margin, but we feel that it will be a decent numbers quite similar to what we have seen in the past. That is the kind of visibility.
Harsh
Okay, like we can sustain the data margin which we have in Q1 FY26. Right. If I understand correct.
Neelesh Garg
No comments on that.
Operator
Thank you. We take the next question from the line of Surinder Singh, who is an individual investor. Please go ahead.
Surinder Singh
Good morning and congratulations on this excellent orders for excellent results. My question is that do you have any revenue guidance for FY26?
Prashant Mathur
Thank you Mr. Singh for the question. For the revenue guidelines we cannot really give the guidance. But what we can say is that we have continuously focused on high capacity utilization which is also reflecting in our results in the past as well as in the current year as well. And our capacity utilization has been over 80% consistently. And that means we have capacity utilization helps us to have better cost because then your overheads are distributed well in your costs. Capacity utilization also means that we have a strong order book and we have been good at executing our orders. So with the kind of capacity utilization which we have been targeting for and matching for last two years and we feel that we should be able to have a high capacity utilization in this year as well. And that should reflect in our numbers.
So if you see, last year our capacity available was about 1.7 gigawatt. This year our capacity available will be close to about 3.6 3.7 gigawatts. That is. That is the best we can give the guidance.
Surinder Singh
Thank you for the explanation. That makes sense. My second question would be that as you have planned for your capacities, do you also have plans to have the order books by financial year 26? If yes, then what is the number? And also if you can share what is the current auto book at the end of month of September,
Prashant Mathur
We can give the order book at the end of June, which is old gigawatt plus. And as I said in my remarks earlier also that our order book does not comprise of the export orders and distributor orders because these orders also are significant. But they come and go on a, you know, rather not even monthly, weekly basis you have those orders coming and going.
So our order book reflects the capacities which we have as we are adding capacities. So as along with the capacities, our order book will also we will be filling that as we come close to commissioning of our Odisha plant as well.
Surinder Singh
Okay. See my concern is do you anticipate that demand will slow down in one year’s time because of overcapacity?
Prashant Mathur
So over capacity. On the face of it, it may look like an over capacity, but what we know is that lot of the capacity. Firstly, if you see industry standard, the capacity utilization is not even 40%. So capacity on ALMM may look high, but actual capacity utilization is very low. That is one point. The other point is that there has been tectonic technology change that has happened in the last one year and many old technologies like multi mono and mono perc will become obsolete in the next one year or mono and multi would you know they are. They might be in ALM because ALMM is for three years. They may become obsolete or they are already obsolete but they are visible there. So considering that lot of old technologies will become offline, we don’t see a major or we don’t see over capacity kind of situation in, in the coming at least few years.
Along with that, the green hydrogen and green ammonia play will also start. Because their execution timeline was three years and already one year and so has passed. So their commissioning timelines are also getting closer. So we feel that that also will be powered from solar and that additional volume will also start adding up in the coming period.
So we feel that the demand should keep rising and because you have alternate demand also adding up to the already prevalent demand and along with that battery storage is also adding up to that demand. So all that is adding the backward demand is ultimately coming to solar only I think.
Surinder Singh
Thank you very much. Very comprehensive answer. My best wishes. Thank you.
Operator
Thank you. We take the next question from the line of Kunal Shah from Dam Capital Advisors Ltd. Please go ahead.
Kunal Shah
Yeah. Hi sir. Congratulations on a good set of numbers. So firstly wanted to understand the status of our solar cell line expansion in terms of exact timelines and capacity therein. And what would be the status for the equipment ordering etc over there?
Prashant Mathur
What was the second question?
Kunal Shah
Sorry, status for equipment ordering.
Prashant Mathur
Okay. Okay. So our Odisha project is well on time. So the civil construction work is already going on. We should start our CEB erection very soon, probably by end of this month. And module and cell capacities should come around the same time. But module takes little less time to optimize and commercialize. So that should start giving revenue from April of 2026. But installation should happen in the last quarter of this financial year. But it takes three, four months to really stabilize and get this fully commercialized. So that’s why we are saying April 26 is when it should start producing and full production should take another three months. So second quarter onwards we will get full production of that 4 gigawatt model.
Along with this cell production, cell capacities are also coming. But cell takes little more time to optimize because this is more complex process and gases and chemicals and lot of efficiencies are a big. And that stability stabilization takes little more time. So we are targeting end of second quarter for our 2.4 gigawatt cell.
The equipment ordering has already been done and we are well on track on that.
Kunal Shah
So just to clarify, are you saying that the cell line would be stabilized by the end of the second quarter or would be commissioned by the end of the second quarter?
Prashant Mathur
Stabilized by the end of second quarter.
Kunal Shah
Understood. So sir, any guidance on the utilization then for the second half of F27 basically from a cell production perspective?
Prashant Mathur
So out of this 2.4 gigawatt we. We feel that for the entire year 1 gigawatt will be available. Because the second half of the year only we will be able to get the revenue out of it. And cell is a continuous process. So around 800 megawatt to 1 gigawatt is the kind of output we are expecting for the financial year.
Kunal Shah
Understood. So this is very helpful. So secondly, wanted to understand the thought process of the promoters on sideways integration, let’s say in terms of entering into manufacturing of inverters or base. So like how from a three or five year perspective, how should one expect this company to evolve? From a longer term perspective, that would be helpful.
Prashant Mathur
So what we are building is we are building a integrated renewable energy manufacturing as well as a service providing company. So we are backward integrating into cell manufacturing. We also have plans to to get into wafer and ingot value chain. So entire value chain from ingot to module is what we are targeting.
We are already doing epc. We are doing solar pumps. Solar pumps also last year we have incubated it and we did about 100 pumps last year. This year we should do about 4 to 5,000 firms. So the kind of growth which will we see from less than 2 crore revenue last year to about 50 crore revenue this year. And that is also a division which, which has a potential of becoming a separate business unit. So that is, that is also happening.
We’re also getting into ancillaries. Yesterday we have launched our inverters. So we have, we have made for it into our inverter business with residential as well as small commercial industrial inverters. So and also ancillaries as I said, we are looking at getting into encapsulate manufacturing and also into other. So all in all we are building, we are also doing best projects and ultimately the target is to get into battery storage products also.
So all in all we are building entire integrated forward, backward and sideways energy company. Renewable energy company especially.
Kunal Shah
Understood. This is extremely helpful sir. I’ll fall back in that way. Thanks a lot.
Prashant Mathur
Thank you.
Operator
Thank you. Thank you. We take the next question from the line of Deepak Poddar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah, I’m audible sir.
Prashant Mathur
Yes, please go ahead.
Deepak Poddar
Yeah. Thank you very much sir for this opportunity and many congratulations for a great set of numbers. So just wanted to understand first up on, on the recently Ambala 1 gigawatt, what was the capex involved there?
Abani Kant Jha
So see I. I’m the CFO of the company. So I can, I can. What I can tell you is that the average cost of commissioning a gigawatt plant in module will cost around 75, 200 crores of rupees depending on the land cost. That that much I can tell you. I would be. So our capital expenditure will also be in the range.
Deepak Poddar
Okay, so 1 gigawatt would be around 7500 crores. So what about the Orissa one? I mean we have got their module as well as cell, right? So what’s the total capex involved there?
Abani Kant Jha
So we are investing about 1850 crores which includes 4 gigawatt of module and 2.4 gigawatt of cell. So our objective as we have put in our various offer documents to the regulators that we will be building 4.8 gigawatt of cell capacity. The first phase will have 2.4 gigawatts. Another phase we will have another 2.4 gigawatt. So for the first phase of 4 gigawatt of module and 2.4 gigabyte of cell the total capacity is 1850 crores.
Deepak Poddar
Okay so so this 1850 excludes 2.4 gigawatt of solar cell. Second phase of the CAPEX and individually the module would be costing around 4 gigawatt would be some 300, 400 crores. Right. As per your what
Abani Kant Jha
There it will be 550 crores. It will take kind of what I have given you earlier number is because we already have the base there. So it’s kind of brownfield expansion here in this location in Odisha we said greenfield expansion. So the CAPEX is bit more because you have to create the infrastructure.
Deepak Poddar
Understood. So so 550 crores would be module and 1300 crores would be 2.4 gigawatt solar cell. Right?
Abani Kant Jha
Correct, Correct.
Deepak Poddar
Okay, okay that’s pretty clear. And in terms of realization, I mean I was reading your press release. So you mentioned that the module prices has bottomed out and it kind of you expect it to stabilize going forward. So what sort of realization we are seeing right now per megawatt. The realization per megawatt is around 2 rupees. 2 rupees per watt on what peak? Yeah. So per megawatt if you can share that would be very helpful.
Abani Kant Jha
Per megawatt will be 2. 2 lakh.
Deepak Poddar
Okay. Per megawatt would be 2 lakh.
Abani Kant Jha
20 lakh.
Prashant Mathur
You know 20 lakh. 20 lakh for, for solar panels I think the realization in terms of revenue would be about 1.5 crore, 1.4 to 1 point crore rupees per megawatt.
Deepak Poddar
Ah so, so it includes. Yeah, yeah. So it includes all your solar cell and etc.
Prashant Mathur
Yeah, yeah, yeah.
Deepak Poddar
Okay. Okay, okay. Understood. And you mentioned right now about BS BSS plan. Can you elaborate more on what sort of capacity and CAPEX that is involved there? And, and and by when we are coming through with those BSS project
Prashant Mathur
What I meant was we are doing EPC project which is a best standalone project. So we have taken a project in Bihar and we are also bidding for other epsilon. We have plans to get into manufacturing also for batteries but that is still on the whiteboard stage. So we don’t have a number to give on that.
Deepak Poddar
Okay, okay, okay. So, so, so, so that is on whiteboard. Okay, I got it. And just finally a couple of things from my side. Now this solar cell capacity will be, everything will be internally utilized. I mean would that be a fair understanding because you will have 8.8 gigawatt of model capacity.
Prashant Mathur
Yes, that would depend on the market dynamics depending on where we get the best value and the best demand. But in a hypothetical situation, obviously this will be internally digested but it would depend on what kind of orders we are booked with. And we can sell also some of the cells depending on the market situation and what sort of margin benefit it can bring.
Deepak Poddar
I mean what sort of differential it would have versus, I mean externally sourcing versus internally manufacturing.
Prashant Mathur
The domestic cell tenders and demand is totally different where the prices also are very different. And that is so what we are, we are expecting additional for that kind of capacity. Additional 4 to 5% EBITDA would, would come for the cell part.
Deepak Poddar
4 to 5% EBITDA benefit will come because of cell manufacturing at the company level, right?
Prashant Mathur
Yes.
Deepak Poddar
Okay. Okay, that’s very helpful sir. I mean that would be from my side also. Thank you.
Prashant Mathur
Thank you.
Operator
Thank you. We take the next question from the line of Kartik Sharma from Anand Rathi Financial Services Ltd. Please go ahead.
Kartik Sharma
Yeah, I just wanted to understand whether they, whether the CUFs differ from a brownfield project and from a greenfield project.
Prashant Mathur
No, the CUF does not really differ but what happens is like our brownfield project, what we had additional space available in our shed, and we were able to quickly up and run the additional module capacity. So the additional benefit is that you don’t have much capex requirement because there’s no land required, there’s no building required, you have the infrastructure, utilities, all available, and it is faster also because you can start commercialized production from it in maybe in two, three months.
In two months and then you kind of optimize it and in a total five to six months you can run it. At full at least 80% capacity in a greenfield project, in a ground, in a green field project, you have a land, you have to do all the approvals, you have utilities, you have to have the civil work, your foundation shed everything and then your. It’s a longer gestation cycle but everything brownfield is at one point of time greenfield.
Deepak Poddar
So. Got it. Answer one more last question from my head. When you say you had plans for ingot wafer till module, so an entire integrated facility. So are there any capacities that you are focusing for the in grid wafer and where that might be?
Prashant Mathur
So it’s. It’s also under consideration right now. So there are two directions which we are thinking of. One is setting up backward integration of the ingot wafer matching our cell capacities in Odisha. And additionally we have taken land in Madhya Pradesh also there is a solar manufacturing park which is being built in Natmadhapuram in near Bhopal where we have initially have got 51 acre land. But we are trying to increase it to at least 200 acres. 300 acres is what we asked. But even if we get 200 acres, we will be able to build a 8 gigawatt of integrated ingred vapor cell module kind of a facility there.
Deepak Poddar
Got it sir. Thank you so much.
Operator
Thank you. The next question comes from the line of Saran Kogleka from Vimana Capital Management. Please go ahead.
Sarang Joglekar
Yeah, can you please repeat your name if you can. My name is. Yes, from the demand side. Just wanted to understand. You said that the older technologies are getting actually so the demand for monoport and monocrystalline is already. It has already gone. There are still segments where there is demand for these.
Prashant Mathur
Sorry, your voice is not clear but I kind of understand your question. You are saying that. Yeah, so. So what happens is it’s. It’s like you have the iPhone 17, let’s launch and then Iphone16 firstly the demand also goes down and then the price also kind of is down because of the lower demand. The same is happening for monopoly as well as for the older technologies. So you we still have projects which demand for five 540550 watt panels. But the kind of margins you see in topcon versus the kind of margins you see in Monoper. Because ultimately even if the developer compromises on the wattage of the panel, they want compensate to compensate for entire system cost. Because when you have 625 watt panel versus a 550 watt panel, you have higher system call because the structure, inverter, cable, Everything is additional 10, 10 to 15%. You have higher land requirement with a lesser wattage. So the margins are really tight. And so that is there on mono perk. But also in top one also you have generations like M10, M10R today G12R. So in, in a year or so, the Monopol or the Mono Mono is already obsolete. Monopol, the margins become very less, it shrinks and it does not really become sustainable to. To hold on to those kind of margins because the customer ultimately wants a higher efficient product. So that is what I mean.
Sarang Joglekar
Understood. So whatever the new demand is coming, it is all coming mostly for top code, is that right?
Prashant Mathur
Yes. And also it is shifting towards G12 volt. So you in this, so G12R is in the same size module instead of 590, 595, you can get 625 volt. So the customer is so sensitive that they also want the highest efficiency even in top one. Also
Sarang Joglekar
Understood. Also on the FY27, now that ALCM is also coming in, you said that your facility cell capacity will come from September. And most of the players have faced delays in stabilization because of the complex process. So if there is maybe you know, one or two month delay, let’s say it goes to November. So is it the case that you lose the business between June and October, those four or five months, because there is a very limited cell capacity.
Prashant Mathur
So ALM was expected to come in 2019. Eventually it came in 2024. Because the government has to do a balancing act of not sacrificing the. The what you call the energy demand shifting from renewable to non renewable. So they would want the installations to keep happening for the solar projects and also in Eddie in parallel want the ecosystem also getting built. So the balancing act is being done wherein every quarter they ask us for the kind of module capacities we have, what is the utilization of our capacities, how much cell capacities we are putting in, what is the timeline. And based on that, the demand for domestic cell tenders are getting built up. So the government has shown a commitment to create the entire manufacturing ecosystem in India by way of alcm. But there are not enough cell capacities which have really got commissioned because there was a technology change also happening from monocub to top on. So now like us, others are also setting up cell manufacturing. And so until There is a 40, 50 gigawatt type of cell up and running, it is difficult to do the entire shift towards domestic cell. So we feel that there will be some extension into those timelines. Apart from that there is. It takes about 18 to 20 rather 30 months to commission a project from awarding till the end. So you. Even if the Demand starts from 2026, it takes about two years to commission and then there are about 7200 gigawatt of pent up demand also that is tendered and it’s going to get installed in the coming period. So there is enough demand to continue and shift towards domestic cell. That will happen somewhere around 2027, 28. The other thing is also wafer ingot. So government has also given a draft policy. So they have shown their interest to get wafer inlet manufacturing also build the initial draft says 2028. So. So that people like us can also plan for the backward integrating into INGA and Wave. So that is how the situation
Sarang Joglekar
Understood. And so my last question is on the capacity, the ALM capacity, when you see it’s more than 100 gigawatt. So do you have any estimate of how much of that is top cor? And secondly you said 40% is the industry capacity utilization and yours is I think 80. You said so what exactly are you doing? Because when I speak with the listed peers, everyone gives a number around 60%. So like what is it that you are doing differently?
Prashant Mathur
So industry capacity utilization is low because there are some players who are. Because ALM is a three year. So you list in ALM and then you are there for three years. So not every manufacturer is similar. So a manufacturer may have issues with cash flow, order booking, they may be running only last quarter of the year. They may not be focused. So there are various. They don’t have the bank limits available, they don’t have the team available. They might not be industry focused. And there could be many factors why a manufacturer may not be utilizing their capacities fully. But overall average, if you see somebody would be at 0% also some might be at 10%. Then you would have people like us at 80%. Now comparing us with the others who have 60%. The way we are doing it differently is firstly, we consider ourselves as a sales driven organization. We ensure that that our order book is always full and we have our set of customers in every different segment, be it utilities, cni, retail, you have open access pumps, so we have our foothold. We are also doing epc, we are doing our own pumps also. So kind of equations also if there is a demand up and down in a year, in a month. So we have been focused on our diversification in terms of our customer base, be it regional, be it in segment wise. And that gives us on the demand side, on the supply side, we have. Since we have strong purchasing power now, so we have better supplier base, we have good working capital limits. So we have executed for last 10 years we have been in business so we have a good kind of performance credentials also in the market. That is what differentiates us because ultimately if you are at 50 60% versus 85% capacity utilization, your overhead automatically your overhead is 10 to 20% higher if you are at a lower capacity utilization. So that is what differentiates us.
Sarang Joglekar
On the topcoin capacity, how much is that of the ALM total alm?
Prashant Mathur
Yeah, so ALMM does not clearly mention but our estimate is that currently the top the mono perk or the lower efficiency would be about 35 gigawatt. In that also there are some equipments who would have upgraded from Mono perk to top one with a 10 bus bar or a 16 bus bar type of kind of stringer capacities that might be visible in top one but they might be lower efficient or they May also once 10 bus bar cells also stop. So that might. So my estimate is around 40 gigawatt would be obsolete technology very soon.
Sarang Joglekar
Understood, Understood. Thanks for the clarifications. I’ll call that in the queue. Thank you.
Operator
Thank you. The next question comes from the line of Chirag Jain from Spark Capital. Please go ahead.
Chirag Jain
Hello, Am I audible?
Operator
Yes Chirag, please go ahead.
Chirag Jain
So morning sir and congrats on good quality performance. My first question was. So I was trying to understand effective install capacity of our total install capacity. So based on disclosures it appears that our effective operational capacity is currently below 50% of total install capacity. So was trying to understand what is the gap like, is it related to any operating hours or technical limitations? And additionally if what do we expect? Like do we expect to maintain this same effective utilization capacity going forward? Because then it would cap the top line growth and also elongate our execution timeline.
Prashant Mathur
Okay, so our capacities have gone by 2 gigawatt and one was in January and the other was in March. So it takes few months to kind of optimize and get to a full optimum utilization level. So this year our available capacity effectively will be about 3.6 to 3.7 gigawatt. Our 1 gigawatt has recently got installed. We should start getting revenue for that in October. October. November,
Neelesh Garg
Yeah,
Prashant Mathur
In the Q3. So our effective available capacity will end up being about 3.8 gigawatt. So we should be able to clock around 3.5 gigawatt kind of output in this year.
Chirag Jain
Okay, understood. So there is no anything like operating loss or any technical limitation. Yeah. So my next question was on like the 4 gigawatt plant for cell manufacturing that we are planning which would lead to outlook 1300 crores. So how do we plan to fund that? Like I have read somewhere that management was planning to like fund it through internal approvals only. But I can see the working capital is like not managed properly. Like it’s increasing year on year. So anything on that?
Abani Kant Jha
So your first question was related to how we are going to fund the 2.4 gigawatt capacity of cell, right? So see if you. So we are going to invest about 1300 crores in. In two different financial layers in FY26 and FY27. In the ratio maybe 60% this year and 40% next year. So to fund that 60% we have secured the debt from the leading government bank which will fund us 75% of the project cost. 75 and 25% of the project will be funded through equity and we have enough equity capital equity available in our balance sheet and we are also generating profit. So those internal accruals will be more than sufficient to fund our sell product option sales effects.
Chirag Jain
Okay, understood. And sir, about working capital, like how do we plan to manage it forward?
Abani Kant Jha
So see working capital has grown in the same proportion. In the same proportion or of the growth in the business. However we, we are putting a lot of focus on effective making it more effective utilization and more effective availability of working capital through the better treasury management. And this is the kind of normally every company does on a routine basis and we will follow the same.
Chirag Jain
Okay, thank you so much.
Operator
Thank you. The next question comes from the line of Jenna from Saltoro Investment. Please go ahead.
Jainam Vora
Congratulations on getting listed. I wanted to ask. My first question is on building up on the previous participant. So you said 75% of the project cost would be through debt. So I’m assuming it would be from Merida. What would be the debt rate? That’s my first question.
Abani Kant Jha
Sorry, I missed your question.
Jainam Vora
What would be the rate of debt for that 75% of CapEx that you’re looking at of that 1350 crores of for the 2.4 gigawatt cell plant?
Abani Kant Jha
So, so, so these interest rates are generally dependent on the index price. So the it is linked to the MCLR rate with some margin.
Jainam Vora
So roughly what would it be?
Abani Kant Jha
It will be 8.929.
Jainam Vora
Okay. And what is the peak level of debt that the company wants to that the company is comfortable at? Currently I think it’s 1.28 times. Right. So after this capex that we are going to do and I’m assuming going forward as well for vapors maybe that’s a little out. But what’s that comfortable level of debt that you want to ensure that beyond that the company doesn’t grow?
Abani Kant Jha
No. So we will maintain the debt equity ratio in our current level only. So it will be about even including the debt we are going to take on the CapEx. We will maintain the debt equity ratio between 1.2 to 1.3.
Jainam Vora
Okay. I also wanted to understand that in terms of your customers, if you could give a better idea who are your customers, what would be your concentration and in terms of mix as you said that itp, CNI and there would be also probably some system integrators within pmc Consumer and PNC river that you would be supplying to. So if you could give that mix, that would be great.
Abani Kant Jha
So see we have all the leading names in the, in the, in the, in the. As our customer. But I can tell you. So it will be, it won’t be possible because I have, we have about more than 500 customers. But I can tell you that we are selling in all across categories in utilities, retail, cni, EPC and export. So export we have very, very minimum percentage. But in utility, utility is the largest chunk of our sale.
Jainam Vora
And so what would that be roughly when you mean largest, would it be 70%? Would it be 40%
Abani Kant Jha
In the current quarter? It will be 80% to be precise.
Jainam Vora
Okay. Okay.
Abani Kant Jha
So that is a large area and the retail retains about 10, CNI is about 8% and the remaining one is EPC and export. So that is the application we give at this point of time.
Jainam Vora
Got it. And yeah, so. So you also mentioned about PM Kusum as solar pumps being a big opportunity and as a part of your sideward integration as well, you’ve launched the solar inverters. So if you first could talk about how big is the PM consumer opportunity and what gives you the confidence to scale up the business as a separate vertical and what is the vision of the company when it comes to solar pumps? Where do you want to reach if you could touch upon that?
Abani Kant Jha
Yeah, so there are two segments in PM Kusum. One is the segment and the other is the Kusum C and Kusum A which is also kind of a utility or you can call it a small C and I kind of A projects.
Jainam Vora
Yeah,
Prashant Mathur
So we are, we are, we have a very decent market share in the Kusum component C as well as Kusum A and especially in Rajasthan, Maharashtra and B we have, we have significant market share in Rajasthan especially. And then you have PM Kusum B segment which is solarcoms where also we are firstly we are selling modules to project developers here and the other is we are also doing our own PM Kusum projects. PM Kusum B. So last year we incubated this as I said earlier also and initially we got a very small order of about 150 pumps. And last year we did only 2 crore kind of a business here less than 2. Actually this and then we executed this in. In the first month or second month of this, this year. And then we have got another, we have done another Maharashtra. Now we have got 1500 pumps. We also got from Meda, we have got it from Odisha. We have gone or from Madhya Pradesh. So this year we are. We are targeting to do go close to 4,000, 5,000 pumps which will be around 50 to 80 crore kind of a revenue. But what happens is it’s like epc. You have to build your credentials one after another. So initially will get small, then you will get little bigger. And then in three, four years then you become a large. That becomes a large chunk of your business also.
Jainam Vora
So you are fairly confident about the opportunity over there. Probably in three, four years you can scale it up. Is that a fair conclusion?
Prashant Mathur
This year we have a target is to do about four 5,000. But next year our target is to do about 15,000 pumps and then scale upon that. So that is the kind of scalability we see in that business as well.
Jainam Vora
Yeah. And in Suryagarh what is the strategy with inverters? And are we also one of the players participating in PM Surya there? And between the two which, which one do you find to be a bigger and better opportunity? Suryavar and Kusum
Prashant Mathur
Both are our very, very close to our heart. Both the schemes. So I can’t. The potential which we see. I think PM Kusum potential is already understood and is being done. I think it has much bigger scale also because still India has about 50, 60% of our economy is agricultural. And it was always a stretch between the farmers not paying the electricity bill and all state governments trying to subsidize it. I think this PM Kusum scheme takes care of it wherein they have a solar pump installed. Because they were not paying the bill, the grid was not giving them electricity. Ultimately their agriculture output was getting affected. So now that has been addressed by PM Kusum scheme wherein you have a pump which does not require electricity, solar does it for them. So that same goes with the PM Suryagra Yojana. Initially it was for 1 crore homes. What I understand is over 303 crores application have come. We feel the potential is much higher the portal. But since the cell availability is very low. Both schemes are getting affected now but as more cell capacities get built up these schemes will actually have a huge kind of potential upside potential in these.
Jainam Vora
Understood. Now on your silk plant what I want to understand is are you tying up with a Chinese vendor or a European vendor and is it something that is turnkey? If you could throw some light upon that and even you know how cell plant is complex as you said. So what is the timeline? I know you are on track but if you could give typically what is the timeline in general and are there any challenges that in your journey you face at all while setting up the self ramp? Because also in Odisha I’ve seen a couple of companies like probably for example VARI had its brands in Odisha but I think it shifted its plan from Odisha to probably now Maharashtra and Gujarat. So any kind of challenges whether it comes to sell land and the vendor that you are facing and who is the vendor.
Prashant Mathur
So firstly on the vendor side let me talk about that. Yes, there are, there were two options. One is a European option which Chinese make. Another is the Chinese option which Chinese make. So the only difference is that the technology is either European or European with Chinese. So ultimately all equipments currently are getting made in China only and even we had an option with central thermo also. But ultimately China is only the one who is making equipment. Otherwise it’s difficult to even compete. So we are getting our technology from SC China and SC China has done similar projects for our peers also. So they have the learning curve and for us the speed of execution of the project is very important. So we have gone in with the partners who have delivered like SC China has done it for our peers, large peers and also Membrane India who has done it for DI etp, ZLD for them. So we have gone in with people who have done it in Indian conditions. The other thing is Odisha per se did not pose any problem. But what happened is what we have done is instead of taking a government land, we have taken a Tata Steel SCZ land in Gopalpur, Odisha and the benefit is maybe we paid a little higher on the land price but it is firstly it is very close to the Gopalpur port. So which is being taken by Adani and they are developing it as a, as a future deep sea port. It is also very close to the Isaac as well as Paradip port within 200 kilometer distance. So we get access to the, to the port in Tata Steel scz. It’s a developed scz. We get a land there on the main spine road. We get electricity, water which is very important. And future CETP access will also be given. There’s a multi utility corridor also that is being built. We are on Calcutta Chennai highway and the Stata is still as you said. So we. What happens is when you take a large chunk of land like worried about 600 acres it takes took in Daikanal. The government gave them land and promises. But ultimately we are delivering, you know, the electricity, water. And there was challenges because such a large chunk of land was in a very remote area and they struggled to get the things done. So we learned lessons from that and we took it in the sez. So that is, that is how we have addressed a potential delay in our project.
Operator
Thank you ladies and gentlemen. Due to time constraint we take that as the last question and we conclude the question and answer session. I now hand the conference over to the management for their closing comments.
Abani Kant Jha
Yes, I would request Mr. Prihan Madhu CEO to give the closing remarks. Thank you sir.
Prashant Mathur
Thank you Vaniji. Thank you everyone. Q1FY26 has been a very strong year. Strong start for the year reflecting Satwik’s continued momentum in scaling operations and strengthening our profitability. Our focus remains on expanding capacity, driving operational excellence and deepening our presence. We see sustained demand for high efficiency solar modules supported by India’s clean energy goals and global transition to renewables. With our integrated model and committed team, we are confident of delivering consistent growth and value to all our stakeholders. So thank you for your continuous trust and support.
Operator
Thank you on behalf of Motilal Oswald Financial Services Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.