Sterling and Wilson Renewable Energy Limited (NSE: SWSOLAR) Q1 2026 Earnings Call dated Jul. 18, 2025
Corporate Participants:
Sandeep Thomas Mathew — Head Of Investor Relations
Chandra Kishore Thakur — Global Chief Executive Officer
Ajit Pratap Singh — Chief Financial Officer
Analysts:
Kunal Shah — Analyst
Akshay Mane — Analyst
Puneet Garg — Analyst
Anuj Jain — Analyst
Faisal Hawa — Analyst
Mayank Chaturvedi — Analyst
Nitin Gosar — Analyst
Himanshu Dugar — Analyst
Aejas Lakhani — Analyst
Gaurav Shah — Analyst
Chirag Shah — Analyst
Subhash — Analyst
Vedant Sarda — Analyst
Darshika Khemka — Analyst
Mohit — Analyst
Presentation:
Operator
Ladies and gentlemen, good morning, and welcome to the Sterling and Wilson Renewable Energy Limited Q1 FY ’26 Earnings Conference Call. Please note, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on-date of this call. These statements are not the guarantee of future performance of the company and it may involve risks and uncertainties that are difficult to predict. 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 the 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 Sandeep Thomas Matthew, Head of IR for opening remarks. Thank you, and over to you.
Sandeep Thomas Mathew — Head Of Investor Relations
Yeah, a very good morning to all, and welcome to our Q1 FY ’26 earnings call. We have with us today Mr C. Takur, our Global CEO; Mr Singh, our CFO; and SGA, who are IR partners. We will start today’s call with key operational highlights for the quarter and the industry outlook, followed by the financial highlights, post which we will open for Q&A. Thank you, and over to you now seekit.
Chandra Kishore Thakur — Global Chief Executive Officer
Thanks, Sandeep, and a very good morning to all the participants on this call. I shall begin with a quick update on our business operations and outlook. FY ’26 is shaping up to be a very good year for the domestic solar EPC market from the strong bid pipeline that we are seeing build-up. Awarding activities from both PSU and private IPPs is expected to begin to gain strong traction soon compared to the relatively quite first-quarter that we have seen for us and the market as a whole since bidding activities got pushed out due to various reasons, including escalating border conflict among others.
This to South has resulted in our bid pipeline growing significantly and now exceeds 30 gigawatt, including over 26 gigawatt pipeline for India alone. We expect the majority of this domestic pipeline to be awarded before December ’25. Over and above, the smaller EPC pipeline will continue to target best projects and select hybrid wind EPC projects. Our international pipeline also appears very promising and we have been focusing on select PV and best projects in Africa and Europe.
We started this fiscal year-by bagging our first turnkey orders when we were declared L1 for 290 megawatt projects in Gujarat worth approximately INR813 crores from the leading PSU. On the edge executional side, our teams have been making good progress and commissioned over 1 gigawatt of projects in Q1 alone. In terms of execution, our scale-up plans continue to remain on-track and the improved top-line of Q1, which has grown 93% year-on-year is reflective of the same. Ajit will also update you on some of the positive results of our efforts to increase units during this quarter.
Our unexited order book was approximately INR8,348 Indian rupees, 8,348 crores Indian increase as of June 2025 and is expected to improve going-forward with a pickup in domestic and international order inflows. Over 88% of this order book comprises domestic Indian projects, while the international UOV comprises primarily two projects each in Europe and South Africa.
I’d like to reiterate that we continue to judiciously evaluate projects in India and overseas and are mindful of having to remain patient in order to target profitable orders. Our EPC business is lumpy in terms of order inflow and timelines for achieving project closures could vary depending on a host of factors, including finalizations of contractual terms, land and processing availability related issues. Our O&M portfolio outlook remains strong and continues to steadily increase. Our current portfolio stands at 9.3 gigawatts as of June 2025.
As we commission our large stream of EPC projects, which are nearing completion, it will feed our O&M portfolio and should aid a meaningful pickup in revenues this in these segments from second-half of FY ’26. In addition to our organic O&M portfolio growth, we are also targeting strategic third-party O&M contracts, which can be accretive to our existing portfolio both in India and overseas.
Now moving to industry outlook. India’s clean-energy journey has been nothing sort of thus far. Over the past decades, the country has recorded a remarkable surge in solar energy capacity, expanding from just 2.8 gigawatt in 2014 to 105 gigawatt by financial year ’25. We have also witnessed a soft decline in solar tariff, which have plummeted by nearly 80% from Indian 10.95 per unit into 1011 to just 2.25 per unit today.
This unprecedented cost-reduction has made solar even when coupled with the battery storage to provide around-the-clock solution more affordable than thermal power, fundamentally reshaping the country’s power economics. Reflecting this momentum, renewable continues to command an overwhelming share of all power sectors investments. India has also emerged as the world’s top destination for clean-energy financing and clean-energy investments have been growing rapidly, which is a testament to the new industry’s confidence in India’s green energy futures.
Given India’s renewable energy ambitions, it is clear that the pace of new capacity additions will continue to remain strong for the India to achieve 300 gigawatt target by 2030. We are also seeing firsthand the ambitious plans of some of our clients driving this growth. For example, the Government of India has laid out an ambitious roadmap to significantly scale-up in the NTPC’s green energy portfolio, aiming to expand its current renewable capacity from 6 gigawatt to 26 gigawatt in the near-term with a gold target of reaching 60 gigawatt by 2030. In a major policy boost just a ago, the Cabinet Committee on Economic Affairs approved enhanced investment threshold for both NTPC and NLC India, signaling a strong intent to accelerate the clean-energy transition.
On one-hand, while the integration of renewable energy is gaining strong momentum, the challenge of grid stability is going to become increasingly pronounced. The 2025 blackout in Spain stands as a cautionary tail. It underscores the vulnerability of power systems heavily reliant on renewables without corresponding investments in grid forming technologies and robust energy storage solutions. This incident serves as a reminder that the clean-energy transitions must be underpinned by parallel advancements in both retail and storage system to ensure long-term reliability and resilience.
In this context, battery storage are emerging as a vital enabler for renewable energy integration. The Government of India is actively advancing policies around this while also promoting circularity in solar and wind component lifecycles and exploring green hydrogen potentials. This plays a crucial role in grid stabilizations, power optimizations and ensuring round-the-clock electricity supply, particularly as renewables Penetrations increases. Increasing — encouragingly, the cost of battery storage has come down dramatically from 10 lakh to around 2.5 lakh per megawatt per month, making it more viable than ever before. Despite the progress, India installed-base capacity modest at just 205 megawatt. However, a significant pipeline is building up. 3.3 gigawatt of projects are already lined-up and another 12.5 gigawatt is currently under various stages of tendering processes. The country has set an ambitious target of achieving 74 gigawatt of this capacities by, which will be instrumentals in balancing the of renewable power generation. Ministry of Power recently launched the second tranche of Gas Funding scheme aimed at catalyzing the development of 30 gigawatt hour of this project backed by a budgetary allocation of Indian INR5,400 crores. Of this 25 gigawatt hour will be distributed across 15 states tailored to their individual storage requirements, while 5 gigawatt hour has been earmarked for NTPC alone. These projects are expected to be commissioned within 18 months from the signing of the battery energy storage purchase agreement or power purchase argument reflecting the urgency and seriousness with which India is approaching storage deployment. Beyond that is, the government is also inaugurating pumped hydro storage. It aims to add around 3,000 megawatt of hydro pump storage capacity in the near-term with a broader objective to scale total pump storage capacity to 50 gigawatt over the next five to six years. These developments signaled a comprehensive strategy to strengthen India’s greenfrastructures and make the power sector future-ready for high renewables landscape. On the international EPC side, we are increasingly seeing attractive opportunities opening up primarily in Africa and Europe. We are also seeing a good number of European projects to complement the renewables spot seen in the market. Our current progress in ongoing projects has also been very positive. And with this, I’ll ask Ajit to take you through the consolidated financial highlights. Thank you very much.
Ajit Pratap Singh — Chief Financial Officer
Thank you,. We are very pleased to report a very strong first-quarter performance with our top-line growing around 93% year-on-year to INR1762 crore. The sequential decline in revenues are attributable to seasonality impact since Q1 is usually slower than Q4. We also wish to thank our employees, suppliers, contractors, other stakeholders. They put their most efforts to achieve this strong revenue growth in this quarter, despite the disruption in various projects caused by cross-border conflict, our majority of the projects were in Rajthan and Gujarat and those were disrupted for around 40, 45 days. Despite that challenge, you could achieve this revenue growth. Our three segments, domestic EPC, international EPC and O&M contributed with a strong performance in-quarter one.
With respect to our gross margins, our consol Q1 gross margin was approximately 11.7%, while our full-year ’25 — FY ’25 gross margin was 10.1%. So this has moved from 10.1% to 11.7% first-quarter. Softening of some key input costs helped at gross margin positively during the current quarter. Looking at it segment-wise, our domestic EPC gross margin was 10.8% and that’s above our target range of 10%, while our international EPC gross margin was approximately 12.3% and more reflective of the steady-state margin profile of that segment. Our margin trended back to now 23%, which is again reflective of recurring margin profile of that segment.
Our operational EBITDA, which is operating revenue, less recurring overheads amounted to INR123 crore this quarter and that 7% operational EBITDA margin compared to approximately INR125 crores we have seen in-quarter one FY ’25. And for full-year — for Q4 FY ’25, it was INR158 crores. Our recurring overhead has been steady at INR83 crores in Q1 compared to INR77 crores in Q1 FY ’25 and INR105 crore last quarter.
Reported Q1 EBITDA was INR102 crore at a 5.8% EBITDA margin and up 175% year-on-year compared to INR37 crores in Q1 FY ’25 and is very close to INR116 crores reported in Q4. Reported Q1 PAT was INR39 crores compared to INR5 crore for same-period last year and INR55 crore in the prior quarter. The tax expense has been higher during the current quarter due to higher standalone profitability in SWREL as well as in South Africa and Spain projects. Now coming to balance sheet.
Our gross borrowing have declined during the quarter due to start of repayment of our loan. Our net-debt has increased by around INR205 crore during the current quarter, because last quarter we’ve taken a disbursement from Bank of for INR200 crores and that amount was utilized in the first-quarter. A key development that I would like to highlight is a rating upgrade to BBB-plus that we have received for our working capital facilities and term-loan. We have also made progress on our banking limits front and have obtained fresh sanctions from three new banks for around INR900 crore-plus share bonds of around INR200 crores we have got.
We have also received favorable indication from our existing consortium banks as well as few new other banks for a request for additional credit lines. Our improved credit rating has also helped us in getting our charges reduced going-forward and we have made significant progress in that direction with some of the consortium members.
With this, we can now open the floor to questions-and-answers.
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 2. 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 Kunal Shah from DAM Capital Advisors Limited. Please go-ahead.
Kunal Shah
Yeah, hi. So just a couple of things. So one on the muted order inflow bit. Now could you just help — I mean, you did touch upon it, but was it more to do with the overall tendering activity being soft or we are still letting go of orders due to aggressive competitive intensity. And related to that, how do you see now for the full-year order inflow shaping up? Like do we maintain the previous guidance?
Chandra Kishore Thakur
Yeah. Hi, good morning, everyone. Yes, so primarily the order has been pushed from last few quarters to-Q1 to maybe Q2 also, mainly because of few reasons. One prominently could be the LLM2 requirements for the sale and industry is just watching to see that how the domestic solar modules could be produced and what price and all. So we have all of the developers who have applied for the relief on the timelines for the projects. That is one of the reasons.
The other reasons for the projects being pushed to the quarter one and quarter two is basically some of the — I mean, connectivities issues. So connectivities, which were all planned by March 2025 have been pushed towards 25 26, particularly in and then on the Gujarat, some of the last of. So from our side, however, I mean, although the Q1 has been a little lumpy, but we are sure that with all these push to quarter two and quarter three, I mean there would be large opportunities and we are well-placed to follow the guidance that you have given to the investors.
Kunal Shah
Understood. This is very helpful. Just wanted to confirm, you mentioned about a relaxation on ALCM timeline, right, what you are sort of trying to?
Chandra Kishore Thakur
So deadline for the LLM now LLMP on the cell has been decided by ministries as 1st June 2026, right? And I mean you see the total capacities in the countries, I mean they are not basically as of now, the manufacturing capability and other things are not up to scale to that level that can Meet the requirement of the country’s — I mean the development plan. So therefore, I mean, people have been approaching to extend the timelines. Now if that happens, then there is a confusion on the pricing on the model side, whether the pricing that could be considered is the international models or international sale with the domestic colleen or maybe the purely domestic. So that’s the reason basically, I mean, all of them have been just waiting, watching, right? So this is the reason basically mostly that these development projects have been shifted. In fact, from last quarter one to quarter one, maybe few of them will go to quarter two, but quarter two the pipeline seems to be very, very strong.
Kunal Shah
Understood. This is very helpful. Second, on the cross-border tensions, could you just highlight on the quantum of revenue impact here? I mean, because you mentioned about like I think 15 to 20 days of impact. I missed that number, but could you just highlight on the revenue impact here?.
Chandra Kishore Thakur
Yeah, so you could have done better than what we have been showing now from the last week of April to the May almost full, the entire projects bordering Pakistan’s — I mean like Gujarat and Rajasthan projects were evacuated and again this was remobilized. So we lost the productivity for, let’s say, for 40 45 days and that has, I mean, definitely impacted our revenue generation for this one this year. Going-forward, because of monsoon, some impact could be there, but primarily, we feel we are very strong and we could be, I mean some adjustment because of monsoon and all, but nearly we should be on our target.
Kunal Shah
Understood. And one last thing on the banking limits, like over the last 12-odd months, there has been like a slew of ratings upgrade consistently, but the commensurate increase in limits, actual available limits from the banks has been like very slow, you know. So how do think of LCs opening up over the next three to four months? Like could you just help with the current positioning and how do you see the non-fund based limits opening up?
Chandra Kishore Thakur
So this year we have seen quite good progress. This quarter, rating got upgraded now to BBB-plus and that has helped us in achieving huge actions for around INR900 crores from new banks who we are going to add-in our consortium. Over and above, we are actually speaking to our existing consortium members as there are few new ones and we are hopeful to get additional around 15,000 crore 1,500 crores lines this quarter.
Kunal Shah
So yes, INR900 plus INR1,500 is the total number that we are looking at?
Chandra Kishore Thakur
Right. Over in the book, we also got surety bonds from insurance companies. So three insurance companies we have inducted and are using surety bond also for the replacement of our EMD and performance requirement.
Kunal Shah
Understood. And just one last bit on the bookkeeping, like you mentioned about softening of input costs in your presentation for the reason for improvement in gross margin. Now could you just touch upon your like what are these costs, I mean in that sense?
Chandra Kishore Thakur
Yeah. So what had mentioned about the input cost is basically a few of the orders that we had was with the turnkey solutions, right, including the models and all. So because of the tariff war and all those things, the US, I mean importing and others. So there was a — I mean a good amount of the models, I mean available in the market, right? So because of the overall the requirements, I mean demand issues, so the model prices have gone down. And some of the models that — I mean the portions of models that we supplied during these quarters that have given us advantage.
So on our normal way, if you see then we could have achieved probably what was the stated margin on the project, but the softening of some of these raw materials cost like prices and all that has supported us to increase our — the margin on the projects.
Kunal Shah
No, sir, just — sorry for one of this follow-up, but it should not benefit or the margin should not be upwards or downwards, right, because of the back-to-back billing. So could you just help here because irrespective module pricing going up or down, because we are doing back-to-back billing to hedge ourselves, why should it even be advantages?
Chandra Kishore Thakur
So basically, when you have got the project, it was a price of model suppose, right? And we have seen that we have some cushion in the project schedule. And going-forward, then we renegotiated the price of the models and the price that was fixed and have gone under change to take advantage of the existing market price. That was our business strategy and that has supported us to increase the bottom-line.
Kunal Shah
Yeah. But sir, this strategy can work the other way around as well, right, in case if there is any inflationary bit on the module. So just wanted to understand
Chandra Kishore Thakur
What order was — order was not stopped, order was already, I mean placed. So you are in any case protect protected.
Kunal Shah
Okay. Understood. Thank you. That’s it from my side. This is good.
Chandra Kishore Thakur
Yeah. So we have around one to two months time between the order placement and all these kind of understanding also that has supported us to renew better and get the pricing.
Kunal Shah
Yeah. Understood.
Chandra Kishore Thakur
Between we get-in the order and pacing the order for modules that also help us in better negotiation terms.
Kunal Shah
Okay, got it. This is very helpful, sir. Thanks a lot.
Operator
Thank you. The next question comes from the line of Akshay Mane from Nuvama Wealth Management Limited. Please go-ahead.
Akshay Mane
Hi, good morning. Thank you for giving me the opportunity. So just wanted to understand just a follow-up question from the point-of-view where the order inflows were lower in this quarter. I mean going ahead, I mean, we’ve always maintained that order inflows of around INR6,000 crores INR8,000 crore for full-year. Can we expect a similar — similar guidance for this year as well?
Chandra Kishore Thakur
Yeah. So last call, if you can recall. So we are giving guidance to the market that we will be growing at 15% to 20% of our on year-on-year basis. So for sure, I mean, what was achieved during last financial years will be being better than the last ones at the rate of, say, 20% growth in the order booking.
Akshay Mane
Okay, okay. And another thing see there was this news regarding the ISTS we were getting, I mean, expired or now, is there any — any further update on extension of the same or if there is any clarity on that policy, which will actually bidding or any of that stuff.
Chandra Kishore Thakur
Firstly also, I think this is one of the reasons apart from the LLM2 that I spoke. So connectivities is also is an issues. So one that the infrastructure’s is getting delayed, other is that the ISTS people are seeking approval for extension, which has not been given as of now. But then the industries, particularly in C&I sectors, they are expecting that this to come, right, so that they can get the — I mean the advantage onto the tariff that they have committed in terms of pricing and all. So yes, you are right. So the weather of course, not announced as of now, but this is impacting the overall growth of the industries?
Akshay Mane
Okay. And lastly, our other expenses were slightly on the higher side. Do we have any other exceptional item in the other expense this quarter?
Chandra Kishore Thakur
We have we have impaired some of the receivables on a conservative basis around INR21 crore for one of our international project. That’s why other expenses were little high. So if we remove that, then we are in-line and consistent in terms of recurring overheads
Akshay Mane
Okay. And just lastly, any update on the couple of projects? I mean, I think there was an NTPC project where we were facing delays because of module supplies. So I believe that would been sorted currently.
Chandra Kishore Thakur
So basically, out of two projects one project one has almost be sorted hardly a 100 megawatt models supply we still pending. But 2 is not sorted because we thought of the projects getting commissioned by June, July, but the model supply has been delayed and around 200 megawatt kind of models have been supplied and this is underway. The monsoon is Still impacting. So the project would be further going-forward. But then because of all such delays, we have given very strong notice for time extensions and the claim to NTPC. So in any case on our project finances because of delays on account of the customer input is not going to impact us.
Akshay Mane
Okay, okay. That was really helpful. Thank you so much.
Operator
Thank you. Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. Thank you. We take the next question from the line of Puneet from HSBC. Please go-ahead.
Puneet Garg
Yeah, thank you so much. My first question is in your overall order book, what percentage of value is the projects with modules.
Chandra Kishore Thakur
Percentage-wise see two things: one that until last financial years, some of the orders which were placed to that had been canceled those year with the models and that have come up now for the final license. So on — and out of that, we have gone — I mean the first one that we have owned, right, we — in the first-quarter models. So for the last financial years, if you see percentage-wise or could be around 25% to 30%, right, this year the trend could be reversed because of the LLM requirement, the — most of the tenders are expected with the BOS schemes.
Puneet Garg
Understood. So then the responsibility will be with the developers to bring module, not yours, right? Or will that module start come in later?
Chandra Kishore Thakur
No, so I mean, it will be the responsibility of the developers. So they will take the model in their scope and give us the three issue items. So that’s the basically trend we are expecting because of the uncertainties on the LLM2 and all.
Puneet Garg
And secondly, if you can also comment a bit more on the color of your order inflow for this quarter, were there any battery projects and who are the key of customers for you in this quarter?
Chandra Kishore Thakur
I mean, train these reversings, now people are going under FDRE schemes or to remove the intermittency of the renewable synergy nature and people are going for more for the hybrid. So that’s the trend we’ve seen. Of course, as of today, if you see in the country, we have only 205 megawatt battery capacity will be added. But in the pipeline seems to be, as I’ve told in my opening speech also. So around 3 gigawatt clarity has come up, right? So various auctions and other things.
For us, I mean, for sure, we are discussing with few private clients, which are of the large-size of the hygrid orders that will include the modules that will — I mean the solar that will include the wind and the battery storage. I don’t want to name those clients at sustain, but then, yes, there are few large-sized orders which are expected.
Puneet Garg
But in Q1, none of those are there. It’s fair to assume that?
Chandra Kishore Thakur
No, Q1 no, Q1, I told that we have only one orders which is from NTPC and that is the termitty EPC solutions with modules, but not with the and other.
Puneet Garg
Okay, okay. Understood. And lastly, any updates on Reliance side on when they want to scale-up for you?
Chandra Kishore Thakur
Yeah. So basically, all of you are aware that you are doing one pilot project for them and that this is the combination of various technologies and all the project is doing well. Other than this project then they are still planning for the cut seasons in other areas. So I mean, frankly speaking, the opportunities are not reflected in the market. But and when it comes, then all of you will come to know that.
Puneet Garg
Okay, great. Thank you so much. All the best.
Operator
Thank you. We take the next question from the line of Anuj Jain from Globe Capital. Please go-ahead.
Anuj Jain
Hello. Am I audible?
Chandra Kishore Thakur
Yes. Yeah.
Anuj Jain
Sir, just want to understand like projects which we are doing from the solar side and the order book, how much is allocated towards this battery energy storage system? And what is the share of this BESS in the order book?
Chandra Kishore Thakur
If you see the total of the — I mean the plan for the financial year two in this company financial in the next nine months. With 3 gigawatts out-of-the total 26 gigawatt opportunity in India, 3 gigawatt battery storage visibility is there. So I mean, out of 26 gigawatt kind of batteries, so I understand this year-around what percentage, around 15%, right? But as I have told in the previous, I mean, answer that the trend we were seeing now under the schemes and the average project installation systems and all. So going-forward, the sales has to improve to avoid the intermittencies of the renewables, solar renewables and the others. So the share will increase.
As of now, for us, are better placed because we are doing one of the largest projects for one of the client in the solar, so we are better placed in terms of integration, in terms of understanding, in terms of everything.
Anuj Jain
So what is the revenue percentage contribution from this from the space as of now?
Chandra Kishore Thakur
As of now, I mean, let’s say in 3 gigawatt, if you are able to grab around the 400, 500 megawatt of hours, that would be the combination of our total battery space in this financial year going-forward. Last year’s there was hardly anything. One of the project which we were doing, unfortunately, it has gone under the deals with the and all. So that project is not stalled basically. So — but going-forward, in this particular financial years, I mean, could we percentage wide differ to say at this or could we municipal. I mean, let’s say, 500 megawatt-hour kind of thing.
Anuj Jain
Okay. Okay. So going-forward, I mean from probably next financial year onwards, we can expect some meaningful revenue from this better energy segment, if I’m like.
Chandra Kishore Thakur
Absolutely, absolutely. For sure.
Anuj Jain
And second question, sir, I mean like we have been —
Chandra Kishore Thakur
So what I say the interesting point here is that under the new scheme of the Government of India, now for all the new tenders, 20% capacity of the solar plants have to be supported with the battery, right? But this traction has started slowing just now. So under this scheme, every single tender which will come out, that will be I mean demanding the also 20%. So let’s say if we have INR100 revenue, so for sure, then the battery cost of the solar plants and this — I mean more or less being comparative — comparable, slightly higher from the solar and all.
So with this, you can expect that now on-going onwards, 20% revenue streams would be throughout the country, the industrial scenario would be like this. But I mean this traction is to be seen. This is the policy, right? And then tenders have not started coming out, but I’m expecting that the quarter two, quarter three, most of the tenders will come on this scheme. And therefore, I mean, it will be reasonable to assume that at least 10% revenue streams to be — would be coming from the battery and the other storage solutions.
Anuj Jain
Got it, sir. Got it. And my second question is like we have increased gross margin in this particular quarter and our EBITDA margins are hovering in the range of 5-odd percent. So from the perspective of next two to three years or four years, what is the — I mean guidance which you can give for the EBITDA margins and gross margins? I mean, definitely it should be a range, kind of range where we want to be. I mean, what are the expected levels of EBITDA margin where we want to do?
Ajit Pratap Singh
Yes. So our operational EBITDA, if you see, it’s around 7% for the quarter and overall EBITDA was around 5.8% and we expect to maintain the same range going-forward.
Anuj Jain
Okay. Okay. So this is a comfortable range. Okay, sir. That’s it from my side. Thank you, sir.
Operator
Thank you. Thank you. We take the next question from the line of Faisal Hawa from H.G. Hawa and Company. Please go-ahead. Faisal, if you can please unmute your line and ask your question. Hello.
Faisal Hawa
Hello. Yes, Faisal. Please go-ahead. So my question is that, sir, what is the kind of order book that we can expect from overseas now in this current year — financial year?
And second is, sir, what is the involvement now of the promoters of Shapur and with this company? Is it now — are they more now more involved or is the environment come down?
Chandra Kishore Thakur
No, so you know the management, I mean you know we This year holding patterns is on the public domain, right? Right and Mr is well involved into the company is Chairman of the company so as far as the management controls and other things are there, it is with the professionals with under the guidance of Chairman, Mrs on the order guidelines that you have asked for, so I have already told that I mean you should be expecting, let’s say, 20% over and above the last financial year, right? So you are well-placed.
Faisal Hawa
So sir, one more question is that with the overseas orders now coming down and a large part of the central office expenses were coming from legal expenses, do you feel that these expenses now could go down a lot because that is what is causing our EBITDA margin to go down because of this legal expenses? And also do we expect any kind of large write-offs in this year-on the debtor fronts?
Ajit Pratap Singh
Yeah. So in terms of order book, we are expecting new orders from international locations also, we are bidding in some of the geographies and are in active discussions. So that will come. In terms of legal expenses, because still most of the legal cases are continuing, the legal expenses also will continue at least for some time period.
Faisal Hawa
So for two more financial years?
Chandra Kishore Thakur
Yeah, at least 1.5 years, two years.
Faisal Hawa
And what — would that — would the quantum of these legal expenses be around INR40 crores a year or more than that?
Chandra Kishore Thakur
Yeah, it is around INR40 crores for the year.
Faisal Hawa
So in two years from today, maybe these expenses will come down to zero.
Chandra Kishore Thakur
Right. And we don’t expect any substantial write-off in terms of receivables because most of the receivables are indemnified with the SE1 and current receivables, these are all good.
Faisal Hawa
So and sir, do you have any idea of what the NTPC pipeline will be for this financial year?
Chandra Kishore Thakur
And come back again please NTPC,
Faisal Hawa
Big is a big pipeline.
Chandra Kishore Thakur
Yeah. Yeah. So if you see the NTPC plan, so they want to become 60 gigawatt renewable company by 202 they have now the operating asset of around 60 gigawatt, right. And the government of India, as you have told in my opening speech also, so now they have allowed them to invest around INR20,000 crores in their renewables, I think this year and the next year.
So revenues, I mean, touching up to 60 gigawatt, what by, 3 gigawatt they are target to around 16 gigawatt.
Faisal Hawa
Okay. And sir, is the competitive intensity in the EPC players going down or is it still very-high.
Chandra Kishore Thakur
Yes. No. So the competitive is pretty of course is going high sometimes, I can say. Quarters you have seen a spot of lot of infrastructures coming for the solar BTC and all. But I’m not sure how long and how best they can be continuing on, but then yes, it is cyclic. So sometimes you see that I mean, there are only few, but certainly you find so many people coming in, they take one or two projects, not able to have again, they will exit. So this kind of situation is there. But yes, people are looking for these are very attractive market. So this competition is to be — in my opinion, will be there for some time.
Faisal Hawa
I appreciate you answering my questions,, sir.
Operator
Thank you. We take the next question from the line of Mayank from HSBC Mutual Fund. Please go-ahead.
Mayank Chaturvedi
Yeah, hi, good morning, sir. Just one question from my end. On — in your order book of about INR8,000 crores order, how much of that will be dependent on DCR integration in the EPC projects.
Chandra Kishore Thakur
So that’s what I was just speaking. So as of now, the deadline for the DCR is around either — is June 2026, right? And I mean now in nine months’ times, out-of-the 26 27 gigawatt opportunity that you have seen in the market, right? I mean people are just — I mean waiting. I mean 2,700 megawatts have to be added. I mean there has to be extension of the timelines. So that is one particular point. And otherwise, I mean you can say in nine months times if everybody decides to go for the international. But Robert, the best part is that in our existing order book as of now, we don’t have anything which is EDCR components. Everything is basically the international sale and the model side. So we don’t have the — in the EAV and the orders that you are getting, it is not affected because of this.
Mayank Chaturvedi
Okay. All right. Thank you, sir.
Operator
Thank you. We take the next question from the line of Nitin Gosar from BOI Mutual Fund. Please go-ahead.
Nitin Gosar
Sir, just one clarification. If you can quantify in terms of rupee crore, you talked about 3 gigawatt worth of battery order, which will float into the system this financial year. And would it be fair to multiply this number with 2.5 lakh per gigawatt per megawatt battery price? How should one quantify this overall opportunity?
Chandra Kishore Thakur
The battery price is constantly evolving, but the EPC cost on this, you should be expecting between INR3.5 to INR4, I mean crores per megawatt.
Nitin Gosar
Okay. And there is pure EPC or this will also include the component. I mean the battery itself.
Chandra Kishore Thakur
We will do only US in battery projects. So basically trend is that the battery is being supplied by them. So outside India, basically battery comes with the battery supply, so we have to tie-up. So we did few small projects in Mali, Nigeria, which were along with the battery and all. So easy both basically. So I mean in domestic market, it’s mostly the US, but outside, I mean it could be with battery. Now even if it is battery, we will carefully evaluate and you can go with the transition. So that’s fine.
Nitin Gosar
Yeah got it, sir. Thank you.
Operator
Thank you. We take the next question from the line of Himanshu from Stylus Holdings. Please go-ahead.
Himanshu Dugar
Yeah, hi. Thanks for the opportunity. My first query was on — it’s a follow-up on the previous — previously management commenting that there has been some write-off of receivables. I think last, I think five to six quarters we have seen this kind of happening on and off. Is there any approximate number around this, what could be a potential risk category in the overall receivables that we have today.
Chandra Kishore Thakur
So this write-off which I spoke, that INR21 crores that we have taken on conservative basis, there is no actually writer. We are impaired considering that we might have to put some expense in future in a particular project in international location and otherwise the receivables are good and there is no provisions need to be made.
Himanshu Dugar
Currently what is the more than six months let’s receivables outstanding. I will get that to you earlier.
Ajit Pratap Singh
Retention, I’ll give you the number in some time.
Operator
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to one question per participant. We take the next question from the line of Aejas Lakhani from Unifi AMC. Please go-ahead.
Aejas Lakhani
Yeah, hi., sir, could you just call-out that the three gigs of BESS, is that more private sector or more public sector? And also, sir, I’m trying to get a slightly more nuanced textured view that so let’s say that there is an existing asset which is in-place and then somebody wants to add the BESS component over and above on-top of that. What are the operational nuances or challenges? And you know-how easy or difficult is it to do it? Is there like — does that mean that the flow of current has to stop for a period of time until you integrate it. What are the challenges with regards to it? And who is making these transitions today? Is it the private sector guys who are early in this trend or is it PSU packed?
Chandra Kishore Thakur
Yeah. So thanks, if you see the overall the battery schemes basically one that I have just informed the group that basically as per the policy, now 20%, let’s say, the obligation for the battery to remove the intermittencies. So that would be the requirement going forwards. Now if I mean this 20% would be detrimental for everybody, whether PSU or IPTs. And that is important, important to ensure degree stability and security and other things.
So I mean, any — going-forward, whatever bids will be coming, that would be both the PSU and I see. As of now, as of now, The large-size few orders which are seeing getting traction in the market is basically coming from the ITPs, which is visible. But for PSU side, if you see, I mean NTPC and all, they are, I mean discussing on the long-term basis because they have to I mean, go-forward with massive scaling up of the battery and storage and all. But no such one tender was there for the small that has also been canceled because of some reasons. But the traction will happen in both the sector, say, PSU and IPPs. Coming to your another questions of how difficult it would be to integrate in the existing facilities, it all depends on the land and level. So not necessarily that in the existing only Europe the — I mean install. Now maybe I mean the overall schemes you have to see that you can choose any locations and all. But preferably if you have to install into the same locations, as far as the integration is concerned, we don’t have any nuances. You can do that. And solar plan may not be a stopped end or during the commissioning. So I think I don’t find any challenge.
Aejas Lakhani
Yeah, okay. And so just a follow-up on that is, let’s say that you know, know NTPC has an existing parcel loan say Gujarat, Rajasthan and now they have decided that for an existing running asset, they want to put up a VESS. So is that going to be like a project-specific order or again for the same, there has to be a tender that has to be issued and the same process has to be followed.
Chandra Kishore Thakur
No, obviously they have to make through the tendering process and the project code, project name, everything would be the question could be but the project number will be different. So we have to go through the tender process only.
Operator
MR. Lakani, please rejoin the question queue. You. We move on to the next question from the line of Gaurav from Gandhi Securities. Please go-ahead.
Gaurav Shah
Thanks a lot for the opportunity. Sir, I’m referring to note number and 7C of our consolidated new-store counts. Sir, there are a couple of customer claims total amounting to approximately INR800 crores, which according to us are not tenable. So just I just wanted to encore, so if the ultimate outcome doesn’t come in our favor and do these claims are part of the inventory agreement with the promoters?Referring to road number seven a and seven C?
Ajit Pratap Singh
It’s not subject to indemnity both the claims. If the is not favo, then it’s a major impact on right some small portion is indemnified and some portion is not indemnified in these claims. Portion is indemnified.
Gaurav Shah
Because the reason for asking if we use the case, then it can have major impact on our operation, right, because the claims are in running IN 100 crores.
Ajit Pratap Singh
Yeah. But based on the feedback we got from our lawyers and that has been agreed-upon by the auditors also that’s why there is no impairment or any provision made-for such expenses.
Gaurav Shah
Okay, thanks.
Operator
Thank you. The next question comes from the line of Chirag Shah from ICICI Securities. Please go-ahead. Chirag, please unmute your line and ask your question.
Chirag Shah
Am I audible?
Operator
Yes. Please go-ahead.
Chirag Shah
Thank you for the opportunity. Sir, I just wanted to understand how the ESS project would be different in terms of execution time and margins as against standalone whole art projects can you hear me?
Chandra Kishore Thakur
Yes the margin would be same as the solar projects and in terms of timelines it will be lesser than the solar projects because the complexity involved here is less civil works requirement is this. So you can say, I mean 15% to 20% and same margin.
Operator
Thank you. We take the next question from the line of Subhash from Value Investment. Please go-ahead.
Subhash
Hi, my question is more towards the guidance that you had given. So last year, it was INR7,000 crore, but we ended-up doing INR6,300 crores. But now looking at the Q1, the revenue is more than 90% of last year Q1. So will — and also considering that 45 days was affected in some regions due to the ball detentions, as you mentioned, will Q2 be better than Q1? And also, I mean, for the FY ’26 full-year will — can we do almost more than INR8,000 crore revenue?
And along with this, I just have one question you can answer along with this. So what is the per megawatt our revenue conversion in battery energy products.
Chandra Kishore Thakur
Per megawatt-hour, right?
Subhash
Yeah, correct.
Chandra Kishore Thakur
So first, I’ll answer your first question. So on the revenue guidance, I mean, as I’ve always told that I mean 20% growth year-on-year. So from last year to this year, it will be around 20%. On the order booking side also in the same reasons. For the next quarter’s revenue, I mean, we could be expecting — we should be expecting — I mean, could have been expecting similar or little better, but because of the productivity loss during the monsoon season and all, so it would be slightly, I mean cyclic. Right.
And on the second question is basically, on the BOS side, so let’s say the BOS revenue could be around INR30 lakh to INR40 lakhs per megawatt-hour kind of things, right? So that’s what our pricing is. So depending upon the size of the battery that you are, what the revenue will be coming in this range.
Operator
Thank you. The next question comes from the line of Vedan Sarda from Nirmal Bang Securities Private Limited. Please go-ahead.
Vedant Sarda
So am I audible, sir?
Chandra Kishore Thakur
Yes, you are.
Vedant Sarda
Only the thing that we are following input method or output method for the contracts percentage-of-completion. Yeah, like on the of 10% cost we have incurred, 10% revenue. Basis.
Chandra Kishore Thakur
Your voice is cracking. Yeah,
Vedant Sarda
Okay. So sir, quarter-on-quarter, we have we should not see in the revenue?
Ajit Pratap Singh
Cost-plus margin. That gives us the revenue.
Operator
Thank you. The next question comes from the line of Darshika from AV Fincorp. Please go-ahead.
Darshika Khemka
Hi, thank you for the opportunity. My question is mainly around the international orders, particularly the Nigeria order, some clarity on that in terms of what the progress currently stands at. And even if we get the order this year, firstly, what is the probability of getting the order considering the entire scenario that is going on in terms of the geopolitical thing? And even if we get the order, I’m sure the revenues are not going to come in this year and we are also seeing some sort of write-off that we have on the international orders revenue. So I just want to get some more clarity on the international order book and what’s the scenario like, what is the probability like of getting more order interest in the cash space?
Ajit Pratap Singh
Yeah. So in our business models, if you see for this year financial years, our target is to get around $250 million to $300 million orders, primarily in Europeans and the African markets split between these two. On the Nigeria side, I mean it’s a procedural delay. I mean, unfortunately it is taking longer time but yes, the project is on and as you have all rightly told that even if it comes, it will take some time, right, financing holders and the NPP and also the revenue for this year will not come from this project.. So these two points you asked me. That’s okay.
Chandra Kishore Thakur
Yeah, would like to respond earlier questions also one was on the receivables more than six months. It’s around INR330 Crores out of total receivables of around INR1,500 crores. And in terms of 7A and INR7 B to load to the accounts that claim is under which is not indemnifiable, although there won’t be any impact because the cash is already out. So in terms of cash-flow, there won’t be any impact. However, if the order goes against us, there could be impact in PM, but not in cash-flow. Because we are all the cash-out in that.
Operator
Thank you. We take the next question from the line of Mohit from HEM Securities Limited. Please go-ahead. Your line is open.
Mohit
Thanks for the opportunity. Sir, I have three given question. So sir, one where our subsidiaries are making constant losses. Why companies not making and which all subsidiaries are making losses.
Chandra Kishore Thakur
So in international, we — whatever projects we are doing, those all are in profits in South Africa, Spain and Italy, all are metal profits. The losses are from those subsidiaries, there is this new project, but there are certain overheads like US, Australia, Dubai.
Mohit
So it means that all the legacy orders are now complete in the subsidiary as well and we will not see any lesses coming in the future.
Chandra Kishore Thakur
Yeah at least see projects they have losses because of primarily because of the legal expenses and certain overheads we have in those projects, like, as I said, in Dubai, Australia, US.
Operator
Thank you. Ladies and gentlemen, with that, we conclude the question-and-answer session. And also we conclude today’s conference call. On behalf of Sterling and Wilson Renewable Energy Limited, that concludes this conference. We thank you for joining us. You may now disconnect your lines