Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Sterling and Wilson Renewable Energy Limited (NSE: SWSOLAR) Q3 2026 Earnings Call dated Jan. 16, 2026
Corporate Participants:
Sandeep Thomas Mathew — Senior Vice President Investor Relations
Chandra Kishore Thakur — Global Chief Executive Officer
Ajit Pratap Singh — Chief Financial Officer
Analysts:
Sameer Dalal — Analyst
Puneet — Analyst
Bajrang Bafna — Analyst
Anuj Jain — Analyst
Danish Mistry — Analyst
Sagar Parikh — Analyst
Aniket Madhwani — Analyst
Shweta — Analyst
Bhavik Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Sterling and Wilson Renewable Energy Ltd. Q2FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Thomas Matthew, Senior Vice President Investor Relations for his opening remarks. Thank you. And over to you sir.
Sandeep Thomas Mathew — Senior Vice President Investor Relations
Yeah. Good morning and very welcome to our Q3FY26 earnings call. We have with us today Mr. C.K. Thakur, our global CEO Mr. Ajit Pratap Singh, our CFO and SGA who are our IR partners. We will start today’s call with the key operational highlights for the quarter and industry outlook by Mr. Thakur followed by the financial highlights by Ajit Post which we will open the floor for Q and A. Thank you. And over to you CKT sir.
Chandra Kishore Thakur — Global Chief Executive Officer
Thanks Sandeep and a very good morning to all of you. This investor serving call marks my first anniversary over as a global CEO of Sterling Vision. And I would like to thank all stakeholders for their continued support in this exciting journey. I’ll begin today call with a quick update on business operations and outlook. The third quarter has been an eventful and exciting time for our business with company achieving some important milestones which is expected to have a long term positive impact on the company’s future and operations.
We have been able to deliver on the key order inflows guidance which is a critical lead indicators of the company’s business health. While we had conservatively projected 15% growth in order inflows at the start of this fiscal year, we have already achieved 6929 crore of new orders this fiscal till date. Of this 3086 crores of new orders was backed in the third quarter through four new project wins. We are happy to announce that with the orders already achieved and a few more orders in advanced stage of closure, we are increasing our order inflow guidance to more than 11,000 crore in this fiscal which is more than 60% year on year growth in order inflows and we’ll mark this fiscal as one of the most successful ever in the terms of order bookings for the company.
We backed four new orders this quarter totaling Rupees 3,076 crores. The first was a gigawatt scale order from Adani Grain for a balance of system package for three solar power projects at one of the world’s largest RE projects at Khabra Renewable Synergy Park, Gujarat. This order is valued at approximately rupees 1381 crore. We also took a meaningful step towards deepening our engagements by entering into a multi year Strategic Partnership Framework agreement with Adani Green Energy Limited. This framework is intended to support future utility scale renewables deployments through our structured and enduring engagements model and reflects a growing industry preference for experienced EPC partners and that can deliver large repeatable project scopes with speed, consistency and rigorous risk management.
We view this partnership as a strong endorsement of our execution capabilities and operating disciplines as well as a recognition of our increasing relevance in India’s next phase of large format renewable energy development where scale, reliability and repeatability will be a critical differentiators. We are confident of delivering the projects within stipulated timelines which are also we hope will start to showcase our ability to deliver domestic gigawatt scale projects in a short 12 months time frame or lesser which we expect will increasingly become the norm for the project in Katsi regions where a huge 100 plus gigawatt scale TV project pipeline is building up.
On the domestic side There has been two more key project wins in the third quarter including a 210 megawatt project from a private IPP and the large 790 megawatt hour battery energy storage project from Serentica. After the JSW Best Order award last year, the Serentica project win establishes our disk credentials strongly in the market. In the international market we continue to make strong inroads in South Africa where we have packed our second order win this fiscal with a 240 megawatt projects with nearly 147 million US dollar.
This will be the fourth project we will be executing in South Africa and we have made strong progress with the first two projects in South Africa as well. At this point it may be worth reiterating that all our post Covid international projects have been moving along expected lines and profitability indicating that our strategy to only work as per our terms and risk appetite in the international market is bearing fruit. On the execution side we are continuing to scale up and deliver as per expectation.
This is evident from our top line which is up nearly 48% year on year and also well ahead of the Revenue guidance at the start of the year. Moving to our unexecuted order value, it currently stands at rupees 10,413 crore compared to rupees 9,096 crore as of March 26, sorry, March 25 and approximately rupees 9,287 crore as of last quarter. About 75% of our current order book comprises domestic Indian projects, while the International EoB comprises primarily two projects in Europe which are in advanced stages of completion and four projects in South Africa.
A large proportion of new wins is coming from clients with strong balance sheets projects with clearer and clearer land. Our operations and maintenance business continues to be a steady and growing annuity stream and has now touched the 10 gigawatt portfolio mark the O and M portfolio has crossed critical scale, supported both by third party contracts and the steady commissioning of our own EPC projects. As more large projects move from construction to operation, we expect this segment to contribute meaningfully to revenue stability and margin resilience over time.
Now coming to the industry outlook and how things are shaping up for us in quarter four and beyond, we have nearly 6.7Gigawatt of orders that are likely to be bid out this quarter in India alone and we are fairly confident of making further headway in some of these bids. We also have some interesting projects lining up in the international side. Whereas I mentioned earlier we are beginning to find work along with terms that we prefer and find equitable. I would like to reiterate that we continue to remain patient and carefully evaluate projects in India and overseas.
We stay focused in targeting profitable orders. We did some aggressive biddings in last two quarters on the PSU side, especially from smaller new EPC interns. Last but not least, our new order inflow guidance does not capture any potential order inflow from Reliance where we continue to remain in active dialogue on this last multi year multi gigawatt re rollout. Those will be over and above our current guidance for this fiscal for financial year 2027 we are already beginning to see our strong third party EPC pipeline continue to build and expect the market’s bids can surpass over 30 gigawatt.
What gives us greater confidence is the character of our order pipeline. We are increasingly engaging in projects that are part of multi year capacity rollouts. These programs will typically involve repeatable scopes, standardized engineering and tight integration with transmission and storage infrastructures, an environment where scale, experience and process maturity becomes decisive. Advantages over the past quarters we have seen a visible shift in how large developers engage with EPC partners moving away from purely transactional contracts towards longer horizon engagements framework and deeper operational coordination.
This evolution aligns well with our strategic intent to grow through repeatable executions rather than episodic wins. These developments are structurally significant for APC players like us, the broader outlook for India’s renewables energy sectors remains fundamentally constructive. Installed capacity continues to rise, costs are trending lower and ecosystem is deepening across multiple manufacturing, energy storage and emerging green sectors such as hydrogen and ammonia. As India accelerates its transitions towards renewables, the availability of reliable large scale battery storage systems is becoming essential for round the clock power.
Despite its strategic importance, India’s installed base capacities is at very nascent stage. As of June 2025, cumulative operational capacity is stood at roughly 0.5 gigawatt hours. CEA estimates India will need 34.7 gigawatt and above of this capacities by the end of financial year 2027. This widening gap between current capacity and future requirements is now driving a significant reallocation of capital across the power value chain where we hope to play an active role in the coming years. With this, I’ll ask Ajit to take you through the consolidated financial highlights.
Thank you very much. Thank you Secretary sir and good morning everyone.
Ajit Pratap Singh — Chief Financial Officer
Our quarterly
Chandra Kishore Thakur — Global Chief Executive Officer
Performance has continued to pick up pace. We achieved our highest year third quarter top line performance since listing with revenue stretching 2092 crores. For the nine month period our revenue has grown 48% year on year to 4 to 5602 crores. The strong top line performance is largely attributable to improved execution pace witnessed in our domestic EPC business added by improved availability of non fund based limits in recent quarters. Among other factors, our unexecuted order book of rupees 10,413 remains healthy and diversified providing revenue visibility for the future periods.
Importantly, the nature of the order continues to improve with commercial structures that minimize commodity price exposure, accelerate cash flows and are less demanding on our balance sheet. This reflects our conscious decision to prioritize quality of earnings over aggressive bidding, a principle that remains central to our operating philosophy as we prefer to chase margin rather than chasing only the top line growth. On the gross Margin front, our 9 month FY26 gross margin was 10% compared to FY25 gross margin of 10.1%.
Third quarter gross margin of 9.5% has shown improvement both sequentially where it was 8.9% in previous quarter and versus same period last year where it was about 9.4% in quarter 3. FY25 our operational EBITDA which is Operating revenues less recurring overheads amounted to rupees 105 crore this quarter compared to approx. Rupees 90 crore seen in quarter 2 FY25 last year and rupees 62 crore. Seen in prior quarter. On a nine month basis operational EBITDA is up 115% to rupees 289 crore from rupees 134 crore in same period last year.
The operational EBITDA is a key indicator of how operational leverage can favorably at bottom line at execution scale pickup. Our recurring overheads have remained flat in this quarter at around crore and at levels similar to seen in last quarter. Our non recurring overheads for this quarter was impacted by an additional charge on the Conte matter towards legal expenses of Conti as a result of the final order which we received in quarter three. That resulted in us having to provide for some additional cost thereby impacting our reported PBT and pat.
Now coming to the balance sheet numbers. Our debt levels have remained stable during the quarter with net debt decreasing by approximately 4 crore compared to last quarter and stands at rupees 738 crore. Our net working capital has shown improvement at negative 407 crore compared to negative 279 crore in previous quarter and we continue to operate in a negative working capital cycle. We have been able to retain our credit rating during the quarter and continue to make progress on finished limits on non fund as well as fund based requirement.
We have cumulative been able to raise fresh funds to the tune of around 2,500 crore since the start of this fiscal that includes both fund based as. Well as non fund based limits. With respect to indemnity proceeds, we have received the full amount from Mr. Kaushid Daruala while we are expecting Shapoorji group payment by January 31st. With this we can now open the floor to questions and answers.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Sameer Dalal from Natwerlal and sun stockbrokers. Please go ahead.
Sameer Dalal
Yeah. Hi. So two questions. The first is, you know we scaled. Up our operations very well which is congratulations on that. You’ve got 2000 crore revenue but obviously the gross margins have not come in very good. For the simple reason that if you look at your overall costs have not gone up but your operating margins overall have not gone up in fact have gone down quarter on quarter. So what was the reason for that? Lower in lower gross margins and how do we see gross margins moving going forward given that we are working on this kind of apron costing model, especially the one we’ve tied up with Adan to 30 crore.
Again we took an additional loss. I’m guessing now this is completely over. But going forward, do we, I mean are there any other known or unknown risks that lie in the balance sheet like the one we had? And if you can just elaborate a little bit on that.
Chandra Kishore Thakur
Sure, sure. Thank you. So in terms of gross margin, as we indicated earlier also we expect a gross margin in the range of 8% to 10% and the gross margin is changing based on the orders we execute, whether it is a turnkey order or it’s only bus. Because in general in percentage terms margins are better if the order is only bus if it is coupled with the model supply. In terms of margin percentage, the margins comes down a little bit. But on overall basis and absolute number terms, our margins improved.
So we continue to maintain the guidance of around 8 to 10% overall margin and I think we are in the same range. Coming to the second question on quantity matter, last time when we have given our investor presentation that time we have received the interim order under county matter and that interim order had a variable element which was legal fees of the county lawyers which was to be reimbursed on actual basis. And this 30 crore is towards that legal fees of county lawyers. We now receive the final order and with that we believe the county matter is over.
In terms of the impact in our financials going forward, most of the legal cases are covered under indemnity. We don’t. This, this was the largest case, county case or the largest case which was not covered indemnity. And we don’t foresee any large impact. In future. Like Container Financials.
Sameer Dalal
I understand that. My question is are there any small. You said this is the largest one. Are there any smaller ones that we need to look out for which could have smaller impacts? No doubt. You can just tell us if there is any possibility of anything coming up surprising because that is what has got the stock. People don’t like these sudden sudden losses, sudden exceptional losses coming up. So can you just tell us what exactly is there? Even if it’s small 10 crore site, whatever, what is the possibility of any loss which is not stopped by the swell promoters?
Chandra Kishore Thakur
There Is at this point in time there is no crystallized foreseeable loss which is not covered. Right. Now my
Sameer Dalal
Question is not the crystallized. I’m saying what is there in the books? Is there any contingent liability that we need to worry about and what is that?
Chandra Kishore Thakur
No, so same. So basically see that two things. One is that some kinds of, you know, the non recurring things coming out of, you know the court cases and the other part is that if you can foresee some of the losses through operations. Right. So if you, if you see the operational losses, I don’t see any such event eventualities coming in. Right. So when as of now we don’t have any claim from the client. There is no operational deficiencies. Absolutely not. Right. So I don’t foresee any such things to happen again on the court size cases.
Right. So we are pretty confident that whatever court cases are pending for the U. S matters once it is, I mean we are pretty confident about winning those cases. But the court case is a court case, you know that. Right. So but then our all experts opinions, legal experts opinions, I mean stay confident about winning these cases.
Sameer Dalal
Right. So what is the value for that for the sort. That’s the question.
Chandra Kishore Thakur
No, so I mean court cases are basically. All of you are aware that this is all basically the. I mean the encasement of the bank guarantee. Right. So those in against that, that’s fraudulent. In encasement of the bank guarantee we have moved to the court. That’s it. Otherwise there is nothing at the climb the client has basically. You know, I know in the process this goes. I mean client has some claims, we have some claim. But it’s all about basically against the bank guarantee and cashmere that we have moved to the court.
So our cash outcome at this point in time is around 750 crore towards legal cases which is covered under nanity.
Sameer Dalal
Okay. Okay, fine. Thank you. I’ll come back in queue. Thank you.
Operator
Thank you. The next question is from the line of Puneet from hsbc. Please go ahead.
Puneet
Yeah, thank you so much. Can you also talk in detail about what is the framework agreement that you have with Adani doesn’t lock in your margins any. Any volumes?
Chandra Kishore Thakur
Yeah. So yes. So this is five years or more. Framework arrangements and scope is defined. Contractual terms and conditions had been agreed between both the parties. And if you can successfully complete this project which is in hand, a basis that seems they have lot of ambitious plans in Khabra regions to go on. We are expecting that at the similar rate or even more than that, we could be Getting episodes year on year basis. Margins typically, if you see it is aligned with the, I mean the, the numbers that Ajit has just spoken.
It is around, you know, let’s say 10 lakhs or megawatt kind of things. Right. So which is, which comes to be around 10%, something like this. So this is all aligned at the market. But what is important is that it is all, you know, in the same regions without any risk of, you know, the models, price going up and down or transmission lines or the land issues. So we have a SEO business. Right. So with this kind of, you know, the business propositions, we feel that, you know, our stabilities towards the, you know, the margins and all would continue.
Puneet
Is there a quantum of how many gigawatts you will execute over period or each year?
Chandra Kishore Thakur
Yeah. So this year the first order that we are executing is over 1 GW and for the value of 1381 crore. And they have the huge capacity to add a dirt. Initially they were doing their internal epc. Now they have moved to the third party epc. So there are four or five parties. We and LNC are the major players there. So depending on our performance, which we are pretty sure about delivering good. We should be expecting if not more at least the same gigawatt level kind of, you know, the operations every year from them.
Puneet
So one gig out each year is broadly minimum.
Chandra Kishore Thakur
That’s what I mean, we awarded more. Right? Yeah.
Puneet
Okay. And any further clarity from when Reliance will start for you
Chandra Kishore Thakur
Also? I mean things are seen to be on the ground now so that develop infrastructure development activities are going on and we are expecting that some more traction will take in this quarter, end of this quarter.
Puneet
Okay. And we have bandwidth to do both Adani and Reliance at the same time. Or would you have to rely on any external help here?
Chandra Kishore Thakur
So I think it’s very interesting question. Today we are doing almost 10 gigawatt in the country. Right. And overseas. So. And every single segment is defined in a manner that that particular, I mean operational region is sufficient to deliver that kind of, you know, the goods. So while we are talking about Reliance, obviously we have to build up our capacity. That’s how the organization expands. So Reliance organize a separate systems that has already been defined. When you are moving to Reliance then Reliance setup will be different.
Everything would be different. So as far as capacity is concerns, no organizations can from the day one say that we are there to handle everything. But gradually you have to improve and you have to keep on building up so that exercise will continue doing. But we Are confident of delivering best. Yeah,
Puneet
Understood. And just lastly if you can elaborate why Conti was not covered in the indemnity.
Chandra Kishore Thakur
Yeah, most of the cases with customers, those were covered under indemnity when Reliance came as a new strategic investor in the company. Conti being a case with subcontractor that was not considered during due diligence and negotiation with Reliance when they joined as investor.
Puneet
Okay.
Chandra Kishore Thakur
So it was not before but. Yeah, yeah.
Puneet
Okay, okay, okay, understood. That’s helpful. Thank you so much.
Operator
Thank you. The next question is from the line of Bajrang Bafna from Sunidhi Securities. Please go ahead.
Bajrang Bafna
Just need to understand your gross margins during the quarter was above 9% but despite that our EBITDA margins on a console basis is around three or maybe slightly better than three. So can you cite is there any one off in the operational numbers on console basis also?
Chandra Kishore Thakur
So I think as we alluded during our discussion, one Conti matter came that we have shown and around 30 crore is the cost for that. And yeah, so that has impacted our EBITDA margin from our gross margin.
Bajrang Bafna
But that’s what you have shown as a, that you have shown as a exceptional item. So I’m not talking about that. That has been mentioned in the console numbers. But even, even after excluding that your EBITDA is somewhere around 65 or 67 odd crore. So on a console basis. So you know, normally, you know, you indicated that our recording cost is around 93 crore. So you know the numbers are not matching up because still the EBITDA looks little lower, you know, on percentage terms and also on absolute terms.
So any other one off in the numbers apart from this 30 crore,
Chandra Kishore Thakur
No normal business provision. One in one one of the case in Australia we have incurred certain expenses on defect liability of of the during O and M. So those costs have been accounted for. But those are normal business expenses basically although owner but normal business expense in. Terms of our random cost. So margin that’s why came down little bit during the quarter and that has impacted our ebitda.
Bajrang Bafna
Okay, got it. So sir, next year excluding let’s say Reliance is something that also you know we expect maybe sometime in the near future. That is also something which is expected. But barring Reliance, you know, in FY27 considering our order book is above 10,000 crore with Adan is also into 4A can we expect 9,000 crore sort of top line in FY27 with at least you know, 9 9.5% sort of GP margin and close to 5% EBITDA margin? Is that a right assumption?
Chandra Kishore Thakur
Yeah. So in terms of revenue growth we have guided for the current year around to 20% growth over last year. We we are on the same guidance. And for the next year also we can consider similar kind of growth 15 to 20% in the revenue with the gross margin. What I indicated during our discussion. So.
Bajrang Bafna
Got it. And just on the interest cost part, you know during the quarter also on the console which is interest costs have shot up to almost 45 or 47 crores. So any broader, you know reasons for that suit up and how do we see interest cost panning out into FY27? You know because our debt is more or less stable and we are almost a negative working capital company. So so just some highlights on that will be really helpful.
Chandra Kishore Thakur
So during, if you remember during last discussion we have disclosed that we have obtained a loan from Ireda that was. This was in September 2025 that was for 500 crore. So interest expense out of that loan for came during this quarter for full quarter and that has increased overall interest expense. Plus during the current quarter we have also taken another loan from an NBFC for 100 crore. So this put together basically 600 crore addition in our gross debt that has increased the interest expenses with the repayment of these loans majorly in the next year FY27 we expect the interest cost.
To come down sequentially.
Bajrang Bafna
Okay. So can we expect the run rate to be around 30, 30 odd crore per quarter basis on FY27.
Chandra Kishore Thakur
So it will change first quarter will be high and then gradually it will come down until fourth quarter. By Q4 interest cost would be highest because we’ll have find it crore impact of IRIDA loan plus 100 crore. What we’ve taken recently,
Bajrang Bafna
Q4
Chandra Kishore Thakur
Interest would be the highest one and then gradually it will come down. We can expect around 35, 40 crore. Per quarter on an average basis.
Bajrang Bafna
Okay, got it. Okay sir. And all the very best. Thank you very much.
Chandra Kishore Thakur
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Anuj Jain from Globe Capital. Please go ahead.
Anuj Jain
Good morning sir. Congratulations on the good set of numbers. My just simple question. I mean in terms of revenue visibility we are doing lot many things and it is shown in numbers. But again the same is not reflecting in the bottom line. You know that is the main concern over the last, I would say seven, eight quarters that we have a very lumpy kind of bottom line due to some event or the other. So when we can see you know stabilized number going, I mean by which quarter or which year we would be able to see the stabilized number that yeah, these are our gross margins and we have so much lumpiness in the EBITDA margins.
So any stability in kind of numbers as an investor because it’s pretty difficult in every quarter we don’t see any improvement on the bottom line side. So just want to understand what is the way forward.
Chandra Kishore Thakur
So one of the unforeseen issue was this quantity legal case which we were hopeful to win but ultimately we lost. And that has resulted in an exceptional loss during the last quarter as well. As this quarter for around 30 crore. This quarter we have got the impact with this. Looks like most of these exceptional and unforced things are resolved. And. Now in terms of cost also we are in the process of rationalizing the cost and overhead. So we expect in future the EBITDA margins to be in the range of 5% plus and gross margin as I.
Indicated, 8 to 10%. So that’s what we can get at. This point in time
Anuj Jain
By when we can see that stability. I mean from the Q4 from the next financial year.
Chandra Kishore Thakur
That’s right, yeah.
Anuj Jain
From Q4 you’re saying
Chandra Kishore Thakur
Onwards? Yeah.
Anuj Jain
Okay. Okay. And one more thing. Any, any color on this Nigeria project? I mean do we have any discussion going on or still now it is not there or.
Chandra Kishore Thakur
Yeah, so Nigeria is still on. I’ll not say. I mean now what has happened is that basically the Ministry of Finance has taken over the SPB operations. Right. So they say that now this project is to be done under spv. So the project is still on but their internal discussions it has moved from NHDP to Ministry of Finance. So at this stage I can only say that these two things are going on.
Anuj Jain
Okay, okay. And. And in your order, when you have one order win for the batty energy BSS thing. So can you quantify that that thing, I mean how big that order is and what kind of, you know, things are lined up in the battery energy storage system vertical.
Chandra Kishore Thakur
Yeah. So this, this order is for about 790 megawatt hour. Although the batteries, the battery supply is as a free issue item from the client but rest of the integration is with us. So on the you know, the risk part, if you say in a way this is better, right. Value is less but then at least the battery risk is not there. Recently you must have seen the battery prices are again going up and all. So after the, you know, the GSW orders last year, so this is the first large size best orders that we have got.
Anuj Jain
So what kind of margins we expect in this BSS margin. Margin?
Chandra Kishore Thakur
Yeah. So margin would be in the same range for all the EPC works. I say whether it is the BOS project or bus with, except for the bus with models, the margin slightly goes down. But for all such best projects and all the margin remains same 8 to 10%. So here also it is more than 10% only.
Anuj Jain
And so value wise, what you see. What did you say? I mean in terms of value wise BSS project, I missed it. So
Chandra Kishore Thakur
This value is around 170 crores. 170 crores? Yeah.
Anuj Jain
God is blessed from my side and wish you all the very best.
Chandra Kishore Thakur
Thank you.
Operator
Thank you. The next question is from the line of Danish Mistry from Investor First Advisors. Please go ahead.
Danish Mistry
Hi, good morning. First of all, congratulations on a good set of numbers and revenue going pretty well. I had two questions. One actually you had alluded to a previous caller earlier where you spoke about the
Sagar Parikh
UNM margins.
Danish Mistry
But if you could give us a sense on when do you think these would kind of come back to where they were. So if I were to see in December 24th your margins were close to 25% and today you’re at approximately 3%. I understand there are one offs that are there but do you at any point of time see these margins coming back or will they be lower? That’s question number one. Question number two. Sir, you also spoke about the Adani orders at roughly 1 gigawatt year. What would that translate in value terms and any indication or color on what would be the order booking next year?
Sir, that’s it for my. Thank you.
Chandra Kishore Thakur
Okay, so I’ll take second question first. Right. So on the Alani order size, the value of the orders for one gigawatt over one gigawatt is around 1381 crores. Right. So 1381 crores.
Danish Mistry
Got it.
Chandra Kishore Thakur
And this is pretty aligned with the normal market orders that we get from the various clients. So the PSU and then the ip. So as a better impact we’ll say and as I have told, I mean just now that this is a long term framework agreement. So based on our performance in this project, we’ll keep on getting this kind of, you know, the megawatt level orders or even more this, I think this is the how the India is progressing. So this has last year has been around 62 gigawatt of you know, the tendering more.
I mean part of them the contract sign is to have still has to happen between the implementing agencies and the developers. But with this, I mean this pace has to continue within the Other energy transition element, the hydrogens and the base and the. The other things coming up. So the requirement of solar for sure is going up only. So
Aniket Madhwani
What was
Chandra Kishore Thakur
The scene this year? Let’s say around 40 gigawatt plus you will be achieving. So I’m expecting the similar traction will happen in few years to come again. Right. So whatever order guidance that we have given now. Right. So I mean around this level orders for sure would be coming. That’s what I believe. Right? Yeah.
Anuj Jain
And M margin and you are right, we have consistently given 20 to 25% windm margin and that’s
Chandra Kishore Thakur
What we delivered Also in the past during this quarter our own margin were around 18% and there is little bit deep in terms of earning margin because of one one off expense we have incurred in a defect liability in. In one of the international location. So that has reduced our own margin for the quarter a little bit. But otherwise we continue to maintain the. Guidance of 20 to 24 25% in. The times to come. Got it
Danish Mistry
Sir. Because. Because if you could see for even last quarter September quarter I’m just seeing your consolidated numbers. The segment your om top line was about 63 crores and your on EBIT was about 9 and a half crores. So you know, so that’s. So that’s about 15%. So I’m just trying to understand sir, if we you know if. If 1m. If it remains at about 60 odd crore is the top line, will your margin come back to the 1012 crore number or. Or is the new normal about 8, 9 crore?
Chandra Kishore Thakur
No. So basically see, I mean our business model remains same with some kind of risk that we are taking for one project which is operational risk. That means we have to maintain the performance ratio. We have to maintain the availability, right? That is. That comes in scope. We maintain sufficient inventory of these players and the plant operation and maintenance practices are strictly followed with our SOPs and all now in this particular quarters one of the Australian projects basically. So the panel which normally doesn’t fail, right.
Normally such equipments are never supposed to fail. We have. I mean rarely will fail but somehow these panels, I mean I don’t know because of what reasons but then still under these due diligence. But then the. This panel failed. Although we took a lot of actions to air freight the panels to ensure that the downtime becomes less and all. But despite all the actions there were unavailability for few days, right? For a few days. So. So the generation loss during that day because of vulnerability of one of the panels has really caused the, I mean penalty to be incurred and that’s the reason that these quarters has gone down.
Otherwise, if you see over the several quarters or I mean historically our margin environment remains same. So this one one kind of event does not mean that it is cyclic. And then again in the next quarter. So we were going to get a hit or so. No. So the margin will continue in the range that we have been getting from the UNM business.
Danish Mistry
Okay, sir. Thank you sir. Thank you so much sir.
Chandra Kishore Thakur
Thank you. Thanks.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from the all from all the participants in the conference, please limit your questions to two per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Sagar Parikh from Renaissance Assort Managers, please go ahead.
Sagar Parikh
Yeah, hi, good morning sir and thank you for taking my question. So first question is this recent export rebate which was taken off by China on the module prices. So do you see that impacting any of our projects especially on the turnkey where the module we have to supply. So I’m assuming the prices of modules. Will go up because of this.
Chandra Kishore Thakur
It’s a very good question. So fortunately see it has happened in the past also several times that the, because of the shell price, the models prices have fluctuated one or two times and industry has suffered because of this. Unfortunately for us, the orders that we have with modules, all the orders have been, you know, tied up and one project that where we are alone, you can discuss. I mean so the order is yet to come and this will get, this will give us some time, some time for, you know, for us to take a decision.
And by that time I’m expecting that the market would be again stabilized. So of course, yeah, so apprehension is right. I mean maybe there will be some slowdown onto the development parts but I think again it will recoup and it will happen because RK’s force is such a big force that I mean nobody can afford to basically slow down to the extent that we are expecting. So and then particularly for Indian market on the DCR components. So even if the buffers from, for, for some more time will be coming from China, but then domestic market is gearing up.
So in next few months of times I’m expecting that all the domestic market, Indian market will be immune from that kind of fluctuations in my opinion. Right. So but then, yeah, yeah, so this is the dynamics, but we have to keep watching and all. But then we are not affected. We are not affected for any of our orders?
Sagar Parikh
No. Right. So India anyways we are doing BOS largely except I think one. But so there anyways there is less in kind of impact. But in all these South African orders and all in the past also we had tied up all these modules and then the module prices went up and they backtracked on their contract. So that is the apprehension that I’m coming at.
Chandra Kishore Thakur
No. So basically you are right. So earlier used to take the module risk from the date of submission of the bids and all. Now the caution that we have taken is that the model price is to the customer’s account till the date the NDP is given to us. Right. And and once the NTP is given that means any fluctuations in the model price is. Is to the client scopes. So after that there is hardly any risk. So once the NTP is given and that price is taken care of that means we are onto the current market level.
And I mean it does never happen that every single day the model price is going up. So we have three, four months time of window and during this time when we ensure that the model supplies are happening. So whatever we have suffered in the past from the, I mean from our experience, if you see for international projects they are all basically pretty nearly the price were agreed some years before and then during the course of execution the prices have gone up and then we have no contractual protection.
But now every single contract that we are signing the contract has protection that their client has to take responsibility till NTP data and
Sagar Parikh
Post. NTP generally tie up with the supplier without further delays. Noted. And in the. Sorry
Operator
To interrupt. Sagar, please rejoin the queue for more questions.
Sagar Parikh
Okay,
Operator
Thank you. The next question is from the line of Kartik Sharma from Anant Ratty Institutional Equities. Please go ahead.
Shweta
Good morning everyone. This is Shweta here. Sir, taking forward the industry question only number one is where are we in terms of let’s say future order inflows? Not next two years, three years. But if this MNRE order the 43 GW PPA signings which has been delayed what kind of impact can it have on us and EPC players in general?
Chandra Kishore Thakur
Also see our business model now is basically getting from 3, 4 verticals. One is the international orders that we’re talking about in domestic markets. We are now in a framework with Adani which can give you a better stability in terms of order inflow. Then we are expecting reliance to a start bits that will give us the better stability in terms of overall India level. If you can say then you are right. So out of the 60 gigawatt that was I mean tendered out around 40 gigawatt kind of, you know the contract yet to be signed.
So that that means the PPA adoption issue and some other issues the land depositions or maybe there are so many policy related issues. So But I’m sure that all those orders with a delay but then soon these are all going to be sorted out. It will, it will, it won’t be. I mean the pending for last otherwise the government of India programs for achievement of you know the 500 gigawatt would be under trouble. So industry is watching and historically if you see this is for the first time that such a large gigawatt level of PPS signing is pending and there has been even cry and the people are pushing trying to solve it as early as possible.
Shweta
So taking that module Kaizen question forward I really I did not clearly understand how does that module price changes in the module prices affect the international orders. Because even if we are transferring the module, even if we are making on a BOS basis the sale prices the rebate has been cancelled on sales and wafers too. Correct?
Chandra Kishore Thakur
Yes. So if you see in the value chain the wafer price is basically smaller than the sale price. Correct. And now the large manufacturers in India when after 1st September 2025 when the DCR components any bits which are going to out from after the 1st of September 25th. I mean necessarily you have to follow the LLMC which is you know the domestic models now under this scheme. So today we are at silk manufacturing capacity around 125 gigawatt. Right.
Bhavik Shah
It
Chandra Kishore Thakur
Is expected at the. I mean sorry the module manufacturing and the sale would be. And sale would be around 60 gigawatts something like this. Right. And in the value chain the VF is also coming up. So I am expecting that even at least for the large players like you know Adani Reliance, the Vari Vikrams with all those the domestic capacity would be sufficient to cut to the requirement of Indian market. Indian market is around 40 gigawatt a year and that much capacity is already demonstrated is now since it’s going out and all those kind of things.
But once the LLMC condition is imposed the domestic requirement is to be fulfilled first. So I don’t foresee any reasons that with all those things coming up and the new I mean the pricing mechanism would be evolved when everything would be on the DCR. So then it is part of the contract then maybe the tariff will also go high and up Kind of things until this year we are.
Shweta
Yeah.
Chandra Kishore Thakur
Do
Shweta
We expect l to eng in that case?
Operator
Sorry to interrupt. Sh. Please rejoin the queue for more questions. Thank you. The next question is from the line of Bhaviksha from nvaxa. Please go ahead.
Bhavik Shah
Yeah, hello sir.
Chandra Kishore Thakur
Yeah, hi. Your voice is not clear. If you can repeat the question please.
Ajit Pratap Singh
I think we are sorry we could not hear you properly.
Chandra Kishore Thakur
Am
Bhavik Shah
I audible? No,
Chandra Kishore Thakur
Slightly better. You can just. Yeah,
Bhavik Shah
Yeah. So my question is the bit pipeline stands at around 8 point versus the last quarter bit pattern of 25.4 gigawatts and we have received around orders of around 3000 crores in this. So what gives us this confidence like. This will be able to win. And. How much are in this inflow we. Have accounted for running also?
Chandra Kishore Thakur
Yeah, so I think it’s a good question. So basically we are already alone in one of the very important PSU for the large size project. Right. And then we are at advanced stage of closing few orders with the private ITPs also international. So with all those things we are pretty confident that we will be crossing or we will be achieving this 4000 crore mark.
Bhavik Shah
Can you just throw some light on the South Africa project? How are the margins there? Because we are again moving towards the international order book and shifting from the domestic focus which we had in the. Recent couple of years.
Chandra Kishore Thakur
No. So we are not shifting our focus from domestic to international as you have told that invite the investors speech also. So we are very carefully evaluating the project outside domestic market and those projects which are at better margin and the terms and conditions are conducive to our requirement. Those projections we were taking. Right. So we are not just for the sake of, you know, increasing our share. No. So this is all the contact is in$. No. So no forex fixed payment would be. For the next
Bajrang Bafna
Year.
Chandra Kishore Thakur
Well, I think with this rate only will keep on increasing. So see now two to, I mean three to four projects we are getting every year. So at least you can say this year we have two. Another years also we’ll target two, three. So we’ll go conservatively. We will not go for, I mean any number of projects that we want to pick up. We will go for the projects only those are good for us.
Ajit Pratap Singh
So all the ongoing projects internationally we are
Chandra Kishore Thakur
Just towards completion in only. So those four projects, two in South Africa, one in Spain and one in plain. These are likely to be completed next three, four months. So these two new orders will give us some momentum to continue business internationally and in terms of guidance can say around 15, 20% of our overall revenue or order book would be international. Otherwise our focus primarily would be domestic market.
Bhavik Shah
Sorry
Operator
To interrupt. Bhavik, please rejoin the queue for follow up questions.
Bhavik Shah
Sure.
Operator
Thank you. The next question is from the line of Amit Agicha from HG Hava and company. Please go ahead.
Ajit Pratap Singh
Yeah. Good morning, sir. Thank you for the opportunity. I’m audible
Chandra Kishore Thakur
Your advice also cracking. Not very clear. But yeah, you get a speed. Let’s say.
Ajit Pratap Singh
Am I clear? So now
Chandra Kishore Thakur
It’s better now.
Ajit Pratap Singh
Yeah. Yeah. So the recurring overheads are like a box 93 crore in this Q3. Like what is the steady state quarterly overall, the business scales. And what is operating leverage roadmap.
Chandra Kishore Thakur
So we are in the process rationalizing our cost though. But on a conservative basis. We can consider the similar kind of run rate to go ahead.
Ajit Pratap Singh
Approximately crore every quarter.
Chandra Kishore Thakur
Yeah. Around 90. Okay.
Ajit Pratap Singh
Thank you, sir.
Operator
Thank you. The next question is from the line of Rabindranath Nayak from Suniti Securities. Please go ahead.
Ajit Pratap Singh
Thank you for the opportunity. Sir, I have couple of questions. Regarding the consolidated segment performance. You can see that the operation margin has come down substantially in this quarter. Does it have something to do with the gross margin? Because if the gross margin has not improved substantially but the EPC margin improved. Does it have something to do with the gross margin? That is my question. First question. And regarding the interest cost and also the overhead cost. Interest cost. You mentioned that the interest cost has gone up due to the additional loans you have taken this quarter.
And also probably this quarter will be remain elevated. This cost and also the legal expenses. You are saying that lot of cases have been resolved. So do you see that we think the legal expenses will go down. And also we see the other expenses which is now 66 crore in this class consolidated level will go down, you know, in the coming quarters. That is my second question. And the last question about this. You know this. The. Tax is a text account is very low in this quarter. Probably the reason could be the.
You know you can highlight what are the reason for this. And the guidance of the extended expenses in the P and L. And what are the projects which are running the reserve cases which have come after the Reliance taken the stake in the company.
Chandra Kishore Thakur
Thank you. Sure. We’ll try to answer as many as possible. So in terms of O and M expenses or margin. As Mr. CK Thakur has also spoken. In one of the case in Australia we had to incur certain expenses. Because that project was under different liability period. And that has resulted in additional cost being booked under OM and that reduced our margin. So our gross margin in OINDOM for the quarter was around 18% as against our normal margin which remains in the range of 20 to 24%. That has ultimately resulted in our reduction in O and M margin.
That’s one. In terms of interest cost, as I mentioned, we have taken 500 crore loan in last quarter September end and this current quarter we have taken over 100 crore. So interest cost would remain elevated during this quarter as well. Q4 then it will start coming down from Q1 of FY27 onwards. In terms of tax expenses are low because we have booked exceptional expense during the last quarter as we lost case in context. And that has resulted in our pad being negative on console basis as well as on standalone basis.
And we got that benefit so that our standalone tax profit has come down. Basically it is negative. And there won’t be any tax obligation on my standard balance sheet going forward for in this current quarter also. And some of the future quarters as. Well till the time we set off the entire losses. So that has resulted in our tax expenses getting reduced in the quarter.
Ajit Pratap Singh
Okay, so can you click the guidance. On this particular gross
Bajrang Bafna
Please? This is
Ajit Pratap Singh
Related to this. Related to that. So what is the guidance on this sales and gross margin for this year?
Chandra Kishore Thakur
For the current year we have given a guidance of 15 to 20% growth over last year. And we continue to maintain the same in terms of gross margin for the full year it would be in the range of 8 to 10%. And going forward also we continue to. Maintain the same guidance.
Ajit Pratap Singh
Okay, thank you.
Operator
Thank you. The next question is from the line of Aniket Madhwani from Step Trade Capital. Please go ahead.
Aniket Madhwani
Hello.
Chandra Kishore Thakur
Yeah, you are.
Aniket Madhwani
Yes. First of all, congratulations on the good set of numbers. And I just want the clarification you have mentioned. 15, 20% growth over the FY25 or the quarter. On quarter
Chandra Kishore Thakur
FY25 for the full year. 50 to 20% growth. Yeah.
Aniket Madhwani
Okay. And. And what is the current order book. In hand outstanding at this
Chandra Kishore Thakur
Point in time? 31 December was 10,000 crore plus order book plus another 4 and 4,000 crore orders are in the final stage of negotiations which we can expect during Q4.
Aniket Madhwani
All right. And you are expecting the. Sorry to interrupt. Aniket,
Operator
Please rejoin the queue for more questions.
Aniket Madhwani
Yes,
Operator
Thank you. The next question is from the line of Sarang Jogalekar from Vimana Capital. Please go ahead.
Aniket Madhwani
Yeah. Hi. Thank you, sir. So my question was more on the input. So do you see any decline in. The non DCR module prices.
Chandra Kishore Thakur
Decline in the non DCR module prices. So yes, we are expecting, if you see around six months before DCR model prices were quoted at around 18 rupees per megawatt peak 18 to 19. Then it came to 17. Suddenly this buffer prices, I mean sale prices had gone up slightly. So therefore some weapons will go up. So for one, two months I can see some turbulence. I’m not sure that how much it will impact. Right. But then some turbulence will be there for next couple of months. But going forward then if the Indian capacities, all the developers are reaching to that level of, you know, the capacity building up that they have promised.
I’m not sure, I’m sure that, I mean this will not impact the market at large then. Right,
Aniket Madhwani
Understood. So non dcr this is you’re talking about, right?
Chandra Kishore Thakur
No dcr I told about, I told for DCR you are asking for DCR only, right?
Aniket Madhwani
Non dcr, I’m talking about. Oh
Chandra Kishore Thakur
No, no non dcr. I mean yes for non dcr, sure. I mean the market is under fluctuations for couple of months and everybody is watching. Let’s see because of you know the subsidy that the Chinese government were giving to their manufacturers that have been withdrawn some. So with all those kind of things suddenly the market has gone up. So one and a half to two cents. I mean so this has to be stabilized. You have to keep watching.
Aniket Madhwani
Understood. Thank you.
Operator
Thank you. The next question is from the line of Saurabh Srivastava from Arista Consulting. Please go ahead.
Aniket Madhwani
Hello. Hello.
Chandra Kishore Thakur
Yes. Yeah, you are.
Aniket Madhwani
Congratulations on the good numbers. Hope for bottom line will follow soon. My first question is that you just mentioned that tax offsetting clause, something like that you have. You need not to pay that tax going forward for some quarter. Can you please explain it?
Chandra Kishore Thakur
Sure. So
Aniket Madhwani
Standing in profit
Chandra Kishore Thakur
Because of the Conti case which we lost, we took a hit. Or in terms of tax profit, we are tax negative. Basically we have accumulated tax losses which can be set up or some future periods of profit. So that’s why on our standalone financials now we are not getting any tax impact.
Aniket Madhwani
Okay, so can I presume that these losses which we have occurred will be. Taken care of in form of taxes going forward?
Chandra Kishore Thakur
Yeah, yeah. So we got the tax benefit because of the loss. You can say that.
Aniket Madhwani
And second thing, sir, what sort of margin can we expect from this Reliance New Energy project? Gross margin and net margin.
Chandra Kishore Thakur
Oh, I think this is too premature basically to talk about this. Yeah, but we will come up once I think. I mean soon distraction has to happen. So then we’ll give you the guidance on this.
Aniket Madhwani
Can, can we see something by quarter one in this regard?
Chandra Kishore Thakur
Yeah, for sure. So we are expecting that the things to start now, this quarter end or maybe quarter, first quarter. So the momentum has already gained. So once it is concluded, then we’ll come back to you.
Aniket Madhwani
Thank you, sir. All the best.
Chandra Kishore Thakur
Thank you.
Operator
Thank you. Ladies and gentlemen, we will take this as the last question for today. With that, we conclude today’s conference call on behalf of Sterling and Wilson Renewable Energy Ltd. That concludes this conference. We thank you for joining us. And you may now disconnect your lines.
Chandra Kishore Thakur
Thank you, everyone. Thank you. Thanks everyone. Thanks for the support.