Sterling and Wilson Solar Ltd (NSE: SWSOLAR) Q4 2025 Earnings Call dated Apr. 25, 2025
Corporate Participants:
Sandeep Mathew — Head of Investor Relations
Chandra Kishore Thakur — Global Chief Executive Officer
Ajit Pratap Singh — Chief Financial Officer
Analysts:
Rohit Natarajan — Analyst
Ganeshram Rajagopalan — Analyst
Kunal Shah — Analyst
Puneet Gulati — Analyst
Nirav Vasa — Analyst
Purva Jhaveri — Analyst
Subhash V Thakrar — Analyst
Mohit Kumar — Analyst
Rishikesh Oza — Analyst
Bhavik Shah — Analyst
Faisal Hawa — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Sterling and Wilson Renewable Energy Limited Q4 and FY ’25 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 the conference call, please signal an operator by pressing the star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Sandeep Thomas Matthew, Head IR, for his opening remarks. Thank you, and over to you, sir.
Sandeep Mathew — Head of Investor Relations
Good morning, everyone, and welcome to our Q4 FY ’25 earnings call. We have with us today Mr CK Thakur, our Global CEO; Mr Ajit Pratap Singh, our CFO; and SGA, who are our Investor Relations Advisors. We will start today’s call with the key operational highlights for the quarter and the fiscal year and industry outlook by Mr, followed by the financial highlights from, post which we will open the floor for Q&A.
Thank you, and over to you, CK.
Chandra Kishore Thakur — Global Chief Executive Officer
Good morning, everyone. Thanks, Sandeep, and a warm welcome to all the participants on this call. We are very happy to welcome our new CFO, Mr Ajit Singh, to our team. Ajit’s illustrious Carrier spans 29 plus years with the most recent being at France Lighting Limited, wherein he served as its CFO and was instrumental in getting the company listed in India through a successful IPO. Earlier, he handled leadership roles at OPG, wherein he served as a Group CFO and Executive Directors, along with leadership roles at large industries like JSW, Bedantha, JP and Lohia Group. We wish him a bright and successful feature with us.
Let me begin with a quick update on our business operational outlook. Beginning with our order book position, we closed the full-year with a total order inflow of INR7,051 crore. Of the total order inflows, the domestic market contributed nearly INR5,900 crores or approximately 84% of the total order inflow in FY ’25. With the risk coming from the international market comprising the two South African projects we won earlier during the fiscal year. The domestic order inflow represents a healthy year-on-year growth of nearly 21% this fiscal year compared to the fiscal year ’24.
In terms of order value, private IPPs contributed nearly 55% of the total domestic order inflow, while PSU contributed nearly 45%. Apart from our growing domestic solar EPC business, FY ’25 also marked our entry into two new important growth market, battery energy storage Solutions and the wind DPC. With more-and-more projects in the renewable space moving towards the hybrid model, we believe a well-rounded offering like we currently provide to our customers is crucial to tap into the growth.
We backed three new projects in the domestic EPC market in the 4th-quarter. We received our first order for wind EPC from the private IPP for a hybrid project in Rajasthan. The scope of work includes engineering, procurement and constructions of a 69.3 megawatt wind balance of the plant and 55 megawatt AC, 75 megawatt DC solar BOS along with 132 — 132 KV OBLIC 33 KV pooling substation. Our entry into winds helps us provide holistic EPC solution for hybrid projects and opens up a new exciting statement for us. The company achieved L1 status for a turnkey solar project of 200 megawatt AC, 260 megawatt DC PV plant in Gujarat, India from a leading PSU developer. The company has also received a letter of award for a PB project in Rajasthan, India for it from a domestic IPP.
Looking ahead, our India order pipeline continues to remain very strong and we expect nearly 22 23 gigawatt of orders to be bid-out during this calendar year alone or in the next six to nine months. Over and above, the solar EPC pipeline, we will continue to target this project and select wind projects as well. In the international market, our efforts are becoming more focused on select projects in select geographies, including MENA and Europe and our pipeline has also therefore become smaller to devote our resources accordingly, which has resulted in a small decline in our overall pipeline compared to December.
Our unexecuted order value now stands at over INR9,096 crores and continues to provide good P&L visibility for the forthcoming quarters. Over 84% of this order book comprises domestic Indian projects, while the international URB comprises primarily two projects each in Europe and South Africa. In terms of execution, our scale-up plans continue to remain on-track and the improved top-line of Q4 is a sign of our efforts and we are committed to address challenges of increasing based limits and achieving better open credits terms with the key suppliers. Thanks to our associates, partners, vendors and subcontractors and our internal team members for relentlessly working to achieve the Q4 top-line. We continue to judiciously evaluate projects in India and overseas and are mindful of having to remain patient in order to target profitable orders.
Moving to the Nigeria project, we are still awaiting final order signing and closure. Also, as has been mentioned in earlier calls, post order signing, we expect the project to take six to nine months-to achieve financial closure. We’d like to reiterate that the lumpiness in order inflow is to be expected with EPC companies like ours and timelines for achieving projects closure could vary depending on host of factors, including finalization of contractual terms, financial closures, etc.
Our O&M portfolio outlook remains strong and our portfolio stands at 8.7 gigawatt as of March 2025. As stated in the previous call, our large stream of EPC projects, which are nearing completion in the next couple of quarters will also feed a good pipeline of new projects for O&M, which should aid a meaningful pickup in revenues in these segments from second-half of financial year ’26.
Moving to industry outlook, the Indian renewables story continues to make strong progress and India will continue to be our single largest focus market. According to MNRE, the country’s installed solar capacity reached 1.5.6 gigawatt as of financial year ’25, just 35% of 300 gigawatt targets sit for 2030. Financial year ’25 witnessed a record-breaking additions of nearly 24 gigawatt in solar capacity, sharply up from 15 gigawatt in financial year 2024. This surge was largely driven by utility-scale projects, which contributed nearly 17 gigawatt and is our core focus market. Despite the record achievement, the pace still fall sort of annual run-rate near to mid 2030 target.
On the regulatory front, the greenhouse gases Emission Intensity Target Rules sets a specific emissions intensity threshold across industries, reinforcing India’s ambition to achieve net zero by 2070. There is a substantial financial and strategic incentive for industries, especially in steel, cement and aluminum to transition to renewable-based electrification, which in our view can continue to drive the private IPP market and C&I space.
As India integrates higher shares of intermittent solar and wind power, the importance of grid stability has grown exponentially. Battery energy storage systems are now pivotal to balancing supply-and-demand and ensuring a resilient grid. In a decessive move, the Ministry of Power has mandated that all upcoming solar projects include co-located solar storage systems with at least two hours storage capacity equating to 10% of the installed solar capacity. This initiative aims to improve grid reliability and will be essential to integrate the anticipated 500 gigawatt renewables capacity by 2030.
The SARP decline has been — the sharp decline in cost of lithium and battery bolstered by advances in technology and expanded manufacturing capacity has also made this projects more viable. Central Electricity Authority’s National Electricity Plan outlines India’s scale of storage ambitions with the market expected to grow exponentially in the next five years.
India’s wind energy sector is also seeing a revival. A noticeable shift is underway in the structure of wind tenders. Increasingly, new capacity is being awarded through foam and dispatchable renewable energy projects, which combines solar and wind components and is a market we are in increasing — increasingly looking to target.
While there are several positives, it challenges remain. Competition in domestic EPC sectors has been pretty strong this fiscal, but we have continued to hold our own with patience and disciplines. Domestic manufacturing of solar modules and sales have been trailing demand and the DCR content requirement of sales poses a risk of pricing and availability. Proposed US tariff has added another layer of complexities, especially for our suppliers and we are closely monitoring and working with our suppliers to mitigate pricing risk to the extent possible. It’s a fast-growing domestic market, a strong balance sheet, we believe we are positioned to tap the growth.
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, CKT. Thanks a lot. We are very pleased to report that the company achieved its highest quarterly revenue since listing. That’s big achievement and our revenue has grown by around 114% year-on-year. That’s more than doubled basically from last year and down 37% quarter-on-quarter to INR2519 crore, primarily added by higher-education in domestic EPC projects and the new international EPC projects. For the full-year also, we have seen substantial growth and our revenue has grown more than double by 108% year-on-year to INR6302 crore.
In respect of our gross margin, our consolidated Q4 gross margin was approximately 10.4%, while our full-year gross margin was 10.1%. Looking at the segment-wise result, our full-year domestic EPC gross margin has trended back to our target range of 10%, while our international EPC gross margin was approximately 8% because of certain legacy projects. Our O&M margin for the full-year, if you see that was approximately 21% and there was a write-off of around INR4 crores in the last quarter.
Our operational EBITDA, that is operating revenue less recurring overheads was INR158 crore this quarter that’s around 6.3% EBITDA margin compared to approximately INR90 crore in-quarter three and that is reflective of the operational leverage achievable through improving execution pace in the company. For the full-year, we have achieved an operational EBITDA of INR291 crore vis-a-vis a loss of INR13 crore in the last year.
Reported Q4 EBITDA was INR116 crore, that is 4.6% EBITDA margin and that also got impacted by certain ForEx loss in the month of March 2025. For full-year reported EBITDA was INR276 crore, that is a growth of impressive 411% compared to the last fiscal. Quarter-four profit before-tax was INR87 crore and that’s a growth of around 112% sequentially. And for full-year, our EBITDA was INR163 crore vis-a-vis a loss of INR172 crore in the last year.
Reported quarter-four PAT was INR55 crore and that’s significantly high if you see compared to the last year. There was non-cash deferred tax asset charge of INR18 crore in this quarter. We have been incurring this charge since quarter-four FY ’24 due to standalone profitability. The remaining deferred tax asset on the books is approximately INR23 crore and we reported full-year PAT of INR86 crores compared to loss of INR211 crore in the previous fiscal. As CKT alluded to in his opening remarks, we have continued to make positive strides in our execution scale-up as seen in Q4 results and we’ll continue to do the same.
Now coming to balance sheet, our net-debt has seen a marginal increase of INR3 crore compared to last quarter and was at INR178 crore at 31st March 2025. Gross debt, however, has increased. We have taken a fresh term-loan from a bank for INR200 crore and the disbursement was done towards end of March ’25. And that has also led to higher cash balance because that loan was disbursed and was — we were keeping in our books and we have not utilized as on 31st of March 2025.
With this, now we can open up the floor for questions-and-answers. Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. We will wait for a moment while the question queue assembles. Thank you. The first question is from the line of Rohit Natrajan from Aditya Birla Sun Life. Please go-ahead.
Rohit Natarajan
Thank you for this opportunity. My first question has more to do with the — a lot of projects of almost like 40 gigawatt of renewable energy is pending for PPA. So will this impact the order inflow for FY ’26 as such?
Chandra Kishore Thakur
So the pipeline that you have indicated in my initial remarks. So the projects close to, 22 23 gigawatts are slated to be without in Q1, Q2 that are not impacted because of the any other issues, PPS signing and other issues. I mean, the next quarters onwards it may, but in Q1, Q2, this does not have any impact on our order inflow.
Rohit Natarajan
If I look at the historical market-share as such, would it be fair enough to say maybe we can clock out of this 22 gigawatt total serviceable market, maybe 30% market-share, 6 gigawatt kind of inflow should be possible.
Chandra Kishore Thakur
It’s difficult to guide you at this stage because historically, if you see the Q1, Q1 has been — I mean, witnessing the closure of the projects, which has spilled over from the Q4, right? So there if you look at, so I mean, out of 22 gigawatt, no new project seems to be tendered out, only those projects are there in the market. And looking at our hit ratios, we are hopeful of getting better shares out of — I mean, out-of-the projects that have been bidded out.
Rohit Natarajan
Got it. On the international front, the Nigeria order, we’ve been something about there are some import restrictions, local content policies, financial and currency challenges within Nigeria. And obviously this has led to a prolonged delay and all put all the renewable energy projects in slow track in that country as such. And there don’t seem to be like a near-term fix for that. Is that a cause for concern or do you see that probably we should expect further delays in this region to get further order inflows as such?
Chandra Kishore Thakur
Yeah. I appreciate your concerns. So there has been delays. I mean in the country like African regions, the things move slowly, but there is no negative news as such, even after the Trump tariff policy announcements, that is supposed getting delayed. That’s it. So I can’t say at this stage that the project is, I mean has any negative news. Should not be a concern going-forward.
Ajit Pratap Singh
So US committed to the project. This is being funded by US and they are still committed for the project. So there are delays, but there is no major concern we believe.
Rohit Natarajan
I was reading somewhere like the Nigerian government is trying to promote the local manufacturing. So if you don’t have the module and panels in there locally made, things can possibly get further delayed. Plus obviously, you have had the Nigerian idiosyncratic issues like the currency issues, fiscal incentives not adequate enough. So is that being — I’m talking about the country-specific issues, that’s the thing been lingering for a while.
Chandra Kishore Thakur
No. So I mean, mean since this is funded project, right, and the — the supplies have to come from US and other markets, right? And therefore, any local regulations on the supplies, I don’t foresee that it will be deviating from the original terms and condition of the contracts, right, that we have been discussing with this.
Rohit Natarajan
Got it. And sir, my final question is more to do with the financial results part on the non-recurring overheads, currency fluctuations part. I understand some 15% of the order backlog we still have international exposure. If you could give us some guidance or some color on how these non-recurring overheads will pan-out in FY ’26, plus also the DTA impairment, how much further it is to be impaired in FY ’26? How will it will we get back to the normalized tax-rate as such?
Ajit Pratap Singh
Yeah. Sure. So in terms of non-recurring over rates, majority of the portion is a one-time write-off of bad debts and certain ECL provisions we have taken in the current quarter. In terms of ForEx losses, this is because the currency was very volatile in March. And these are primarily mark-to-mark translation losses. These are not the transaction loss because of our exposure to our other subsidiaries in Dubai. So this is basically a little bit book entry, not the transaction loss. And what was your second issue, sorry,
Rohit Natarajan
The deferred tax assets impairment.
Ajit Pratap Singh
Yeah. And deferred tax, as of now we have — basically this is due to the difference of the expenses, which are not allowed in tax, primarily as of now, these are like provision for bad debts, leave in cash mean, graduity provision for and provision for bonus. And as of now, we have outstanding amount of around INR20 crores INR23 crore that is expected to be utilized in next year or next one or two years. Sure. That’s it from my side. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participants. The next question is from the line of Ganish Ram Rajagopalan from Unifi Capital. Please go-ahead. Go-ahead.
Ganeshram Rajagopalan
Thank you for taking my question. I have two. This is just a follow-up to what Rohit had asked. The first one is on the foreign-exchange loss. Could you please detail that a bit more for us because my understanding is that there are some hedges on the projects that you undertake and there is some amount that you give to loans in terms of loans or subsidiaries that you do not hedge. But how come there is this 20 — I mean this foreign-exchange loss that you’ve incurred this quarter? And is this a cash loss or is this something that eventually if the currency stabilizes will be written back? That’s the first part. The second is on the deferred tax asset, could you please help us understand in a more simpler terms as to exactly what this charge is? And maybe if I think ahead next year, what could be the extent of this charge? Just these two questions, please.
Ajit Pratap Singh
Sure. So in terms of ForEx a translation loss. Sorry, can you be in mute if somebody is not speaking?
Operator
Yes, I have muted. You can go-ahead.
Ajit Pratap Singh
Yeah. So the ForEx loss, this is only translation loss. It is not the transaction loss and it is not related to our operations. Basically, it is the exposure of what we have as a standalone entity to our subsidiaries in Dubai. So the loans and branses given to them that has been translated as on 31st March and it’s only a book entry. The moment this currency will get stabilized, this will get squared off and will come back. And on your second question on deferred tax, this is — this has been created out-of-the expenses, which are allowed as per company’s debt, but not allowed as per taxation. And these are primarily the provisions which has been created for cash and bonus. Certain carryforward losses are also there and this outstanding amount as of now is around INR23 crore, which will be utilized in next one to two years.
Ganeshram Rajagopalan
Understood. So essentially you’re saying another INR23 crores that will be, I mean, and extended over the year. So next year, if I look at FY ’26, maybe INR12 crores or something like that. That’s what you’re saying.
Ajit Pratap Singh
Yeah. Profitability how it is, but yeah, we have INR23 crore available to be utilized in future years.
Ganeshram Rajagopalan
Understood. And maybe if you could just tell us the non-fund limits, right? Have you draw the limits and sanction limits changed?
Ajit Pratap Singh
Yeah. So as of now, we have a total limit of — non-fund base limit of around INR4,500 crore as against the appraised limit of that’s very-high, around INR10,000 crore. And we are also — because now business is improving and margins are better. We are in constant touch with our lenders as well as some new banks to get sanction of some additional non-fund-based limits to help the operations.
Ganeshram Rajagopalan
Is there a time to when that would be realized?
Ajit Pratap Singh
So it will be gradual. We expect something to materialize in this month itself, basically in May. And in first-quarter, some more limits might come.
Ganeshram Rajagopalan
We are also — that comes with this INR2,000 — if that happens, will you be able to execute around INR2,500 crores a quarter sustainably this month this month.
Ajit Pratap Singh
But a factor will — education will be through non-fund-based limits as well as the open credit which we get from the vendors. So depending on the execution speed and other factors, we can do the execution. So non-fund-based limits is one of the factors. That will also help in getting new contracts. Basically, our non-fund based limit is generally interchangeable between LC and bank guarantee. So we can use judiciously wherever it is required to get new projects and offer the bank guarantee for them or to give LC to our vendors and get more supplies.
Ganeshram Rajagopalan
Maybe let me — I’m sorry, I know it’s a follow-up, but maybe let’s — let me just ask this another way, right? So assuming we get the non-fund limits through, does this mean in Q1, Q2 you can exceed your Q4 run-rate or will it be muted compared to that.
Ajit Pratap Singh
So last quarter, if you see, we executed more than INR2,500 crore, it means we can execute even with the current timid INR2,500 crore if other factors are favorable to the company.
Ganeshram Rajagopalan
Okay, sir. Thank you you.
Operator
Thank you. The next question is from the line of Kunal Shah from DAM Capital. Please go-ahead.
Kunal Shah
Yeah, hi, sir. So couple of questions. Now first bit, as the base has been like reset for the company for F ’25. How are we expecting the order inflow and revenues for F ’26 in a base-case scenario? Any revision or changes to the previous guidance
Chandra Kishore Thakur
Yeah, so as you are aware that the renewable industries depends on a host of factors. And while the quarter one, quarter two pipeline seems to be visible. The clear visibility for Q and Q3 and Q4, project-by projects is still to be worked out. While you can clearly see from the national growth plan perspective, I mean, the overall opportunities in FY ’25, ’26 will be better than the last fiscal. And therefore, I mean, based on our trend abilities and we now expanding into the wind and the solars, we clearly can foresee that, I mean, our order book positions will be better than this fiscal.
Kunal Shah
Okay. Understood, sir. Just thinking it a bit differently, let’s say we close with the INR9,000 crore order book. Now out of this INR9,000 crores, how much will get reflected in the F ’26 as revenues based on the timelines?
Chandra Kishore Thakur
We can overall say that we’ll be exceeding this year’s revenue target by 15% 20% from the UAV that we have on April and the new orders will be coming. But this is primarily because of many factors that is impacting the project commissioning and other things. But the growth perspect seems to be definitely better than this year’s and say the growth would be something better than, I mean in the range of 15% to 20%.
Ajit Pratap Singh
Yeah.
Kunal Shah
The F ’26 over ’25 should be 15% to 20% revenue growth essentially?
Chandra Kishore Thakur
Yeah.
Kunal Shah
Okay. Now secondly, you mentioned on the fund and non-fund-based limits, like now just when we start the year with this INR4,500 crores non-fund based limits, what is the revenue potential basis that and some assumptions with respect to the open credit, et-cetera? And secondly, for this 15% to 20% growth in terms of revenues, what are we factoring in terms of our limits going up basically during the first-half of FY ’26, if any.
Ajit Pratap Singh
So as of now, the limit is sufficient to meet our target. However, the moment we’ll get additional limits, our open credit might — we will reduce that because that’s more expensive. Non-fund based limits come at a better cost and we expect some additional limits to come in first-quarter itself before June and then maybe some more limits will be tied-up in Q2. So we are speaking to the banks, existing lenders as well as the new lenders and we expect a good progress in terms of getting new non-fund-based limits. Fund-based limits we don’t require. In fact, we don’t get drying power also because we are negative working capital. So we’ll require only for non-fund based limits for our business growth.
Kunal Shah
Understood. And is there any assumption of the open credit business that we’ll be doing for F ’26? And what was it during FY ’25, if you could just help with that?
Ajit Pratap Singh
It’s a mix of both basically. Sometimes like LCs, sometimes we give for three years but get — we’ll get it paid-in one month. So we keep a judicial mix of both open credit as well as the limits available. There is not a specific percentage that this much will be open credit, this much will be under non-fund-based limits. It depends on the availability basically. And non-fund based limits also because it is interchangeable with bank guarantee and LC. So we use wherever is required most for the growth. If we require more towards new business, we give bank guarantee instead of LC using LC to vendors and we get support from vendors to get the open credit.
Chandra Kishore Thakur
And that also depends on the project timeline, et-cetera, right?
Kunal Shah
Got it. And just lastly, there appears to be this constant volatility in the O&M gross margin business. Like until last quarter, we thought we are nearing that 25% odd steady-state, but now there’s some bit of debt this quarter again. Is there a one-off over here?
Ajit Pratap Singh
This is one-off for the quarter, but this O&M business, you have to see holistically for full-year. For full-year, we can safely assume — this year we have done around 20% gross margin in O&M business. Safely, we can presume that we’ll be in 20% to 25% range in terms of O&M margin. This year, there were certain one-off expenses which we booked in last quarter. That’s why quarterly margin is low, but full-year it is 20%.
Kunal Shah
Understood. Thanks. That’s it from my side.
Operator
Thank you. The next question is from the line of Sagar from Oneup Financial Consultants. Please go-ahead. Hello, Mr Sagar, your line has been unmuted. Please go-ahead with your question. As there is no response, we’ll move on to the next question. It’s from the line of Puneet from HSBC. Please go-ahead.
Puneet Gulati
Yeah, thank you so much. Just a follow-up on this, if you can elaborate on what kind of one-off expenses do you have to book in the O&M, which led to the fall in margins here.
Ajit Pratap Singh
Yeah. So there are certain provisions and one-off LD in one of the projects. Yeah., certain provisions in terms — in our receivables, that’s what we booked in FY ’24 — in Q4 and there were some LDRC which was good in-quarter four. That has resulted in reduced margin for R&DMO.
Puneet Gulati
Okay. Okay, so that’s all right. So, but you’re saying ’22 is to 25% is the normalized margins one should run within O&M part of the portfolio.
Ajit Pratap Singh
Correct.
Puneet Gulati
Secondly, if you can also talk a bit about any additional work that you’re seeing from Reliance Industries.
Chandra Kishore Thakur
Yeah. So I mean, last-time also we discussed and all of you are aware that we are doing their pilot project. So for the portion of the project that were allotted to us that is almost completed under commissioning. A few of them have been commissioned. New parcel of land has been given to us for, say, around 9 gigawatt — 9 megawatt, I’m sorry, 9 megawatt, which is under-construction now. So that’s basically the pilot project. On the bigger side utility-scale projects, we have submitted our offers and they are under different stage of the plannings and trying to understate that when the project can be launched and all. But from our side, we have already submitted the offers. So this is in the progress you can say.
Puneet Gulati
Yeah. Okay. And is there an understanding that the project will come to you or can it go to the other vendors as well?
Chandra Kishore Thakur
Okay. Last-time also I told you, this can go to other vendors, this can come to us because the kind of pipeline they are discussing about. So I mean, no such vendors in the country has that kind of capacity to I mean claim that he will be the only sole vendors. It’s not possible. So they can — they can decide based on the merit and we believe that we are very strong on our merit and therefore we will get the major portion of the orders should be coming to us. That’s what I can tell you at this stage.
Ajit Pratap Singh
And just to add what CK said, the revenue guidance what we have given or we are giving, it is excluding relax and Nigeria. Correct. Without these two.
Puneet Gulati
And lastly on the battery front, there have been lot of new battery bids coming in at very low tariffs. Are you seeing the benefit of — of that both in terms of newer orders and also lower-cost on the battery prices for projects which you are executing?
Chandra Kishore Thakur
Okay. So basically, the development of the projects that have been bidded out, right, around 9 gigawatt kind of projects have been allocated, right, in the — to the various agities. But only few of them have taken off. It is true that the battery lithium-ion battery prices have gone really historically down and that’s the reason that the government of India and the other in fact in the other globes also. People are trying to move from intermittency to the fixed power kind of thing.
So either through the solar battery or through only base as your obligation in the existing solar plant or the other establishments or through maybe the solar, wind and battery. So market tractions will happen in this — I mean through these segments, that is for sure. And if you see the tariff — the fixed tariff on the basically around-the-clock power tariff, if I say. So that is comparable to the — I mean better than the fossil plant, that’s how the people are claiming. So market traction definitely will be seen in this segments.
Puneet Gulati
So what I’m trying to understand is you have — other than the BES projects at JSW, which is in the limbo currently, do you have anything else which you’re executing on the best side?
Chandra Kishore Thakur
So we have executed few smaller projects for Reliance. We have executed a few projects outside India. So currently, other than GSW, no. But frankly speaking, now there are few tenders which are in the bidding stage. And having — I mean, it got the very sound experience for the best projects internal — domestically or internationally, we believe that you should be getting, right?
Puneet Gulati
And can you give the size of this opportunity here currently, which is available for tendering?
Chandra Kishore Thakur
Currently the — and currently the bids which are out on the process, they are around 100 megawatt-hour to 300 megawatt-hour kind of things, few projects. But I mean like NTPC is talking about 10 gigawatt hour of the pipeline in next few years. So everybody is trying to understand that how is going to impact the market, what kind of the pricing would be there, so all those things. But since this obligation of 10% storage has come along with the solar plant, the market will definitely see the traction.
Puneet Gulati
Understood. And lastly, one clarification, the JSW order is a part of your order book or is it still an MOU order?
Chandra Kishore Thakur
It’s a part of our order it’s part of our part.
Puneet Gulati
Okay. And what is the value of that?
Chandra Kishore Thakur
It is around, I think INR234 crores. Around INR250 crores. I don’t remember the exact number, but it is, I mean, around INR250 crores.
Puneet Gulati
Understood. That’s very helpful. Thank you so much and all the best.
Ajit Pratap Singh
Thank you.
Operator
Thank you. I would request all the investors to please limit your questions to two per participant as there are several people waiting for their turn. The next question is from the line of Nira Vasa from ASK Investment Managers. Please go-ahead.
Nirav Vasa
Hello and good morning, sir. Sir, my question pertains to the non-signing of PPA. The — the quantity of projects for which the PPAs have not been signed is quite huge. So wanted to understand your perspective according to your understanding, why are the PPAs not being signed? And other — the second part of my question is like, how strong is the transmission — transmission and evacuation capacity in the country, the pace at which we are increasing renewable capacity, is the transmission — transmission and evacuation capacity is working in the — with the same length? These are the two questions that I have. Thank you.
Chandra Kishore Thakur
So basically, this question does not pertain to EPC company, right, because EPC business comes only when the projects are basically in the market. So you are right. So — but as your overall business macro-level, if you analyze, then signing of PPA, which is tariff adoption and the connectivity issues. So those are two areas, which have been — I mean primarily from last couple of quarters, if you see, those who have been impacting the expeditious development of the project.
So why it is happening is maybe basically because of — I mean, it’s not our — I mean the area to answer this question, but I mean just for the macro perspective, I can answer you. That’s basically the tariff adoption takes place in the state government, right? So it is for them to adopt the tariff. And some of the, they feel that I mean the — because of the — I mean declining price and all, it’s becoming difficult for them to adopt that. So they’re taking little — I mean longer time. But the government of India has been harping on every state government to expeditiously sign and adopt all the tariffs, right? So that is one area.
On the development of the transmission systems, so there is a committee set-up with — I mean, normal committee and all. So they are trying to see that the — to ensure the green stabilities, how the green corridors can be maintained and I mean, huge investments are there, all those — the pipelines, the projects are under the advanced-stage of construction and all. It will take some times. But temporarily, I mean, you are right that there is a jerk on the development of the PPAs that could have — that are stuck-up because of the either the or some of the projects because of the transmission line.
But otherwise, I mean the target that we have been — I mean if you see that this year target, I mean, the target was little more than what as a country-level the people have achieved. Otherwise, I mean, the solar capacity of — could have easily gone beyond 24 gigawatt that has been achieved this year. So those are the micro things that are impacting the business development, but it’s okay. I mean, other than that also, there are enough the business pipeline that is being seen.
Nirav Vasa
Sure. But on one-side, around 40 gigawatt of capacity doesn’t have PPA, 26 gigawatt is what we add per year. Maximum 30 35 gigawatt of solar capacity can be added in a year as per my assessment. So effectively, we have practically one year’s capacity which is — for which PPA has not been signed. So Akoy, in the light of this scenario, what are the chances that the impact of this can come on the entire ecosystem, including EPC contractors, any delays in projects, any changes in terms, how do you see that?
Chandra Kishore Thakur
So on the, the number of projects that we have in-hand, they are not impacted, right, the UOV. The number of the projects that we are targeting in this financial years, they are also very clear. I mean either they are — I mean our share, if you see there from IPPs and from C&I sectors, the C&I sectors are not impacted, the open access projects are obviously impacted, but then there are enough number of PPA and connectivity all this time like NTPC and all. So they are on the solar park. So they are all, I mean through. So government tenders are not impacted because of that.
So basically, I mean at the minor level, if you say, yes, there is jerk, the people are worried about, I mean for sure, but then for — if you — on the broader levels, then companies do not have any options. We have to meet the target of — I mean 300 megawatt by 2030. That calls for around 50 gigawatt of bidding every year and execution of, say, 35 to 40 gigawatt, right? So even if there is a shortfall, there would be enough space for us to play, right? So that’s the basically point. Thank you very much. And if there is — there will be shortfall, but then we have enough space to play.
Nirav Vasa
Thank you very much. Thank you.
Operator
Thank you. The next question is from the line of Purva Javiri from One-up Financial Consultant. Please go-ahead.
Purva Jhaveri
Hello. Hello.
Operator
Yes.
Purva Jhaveri
Yeah. Hello. I’m audible, right? So I wanted to ask how much of the order book is in Kawla and what is the risk to the project execution if there is India-Pakistan war?
Chandra Kishore Thakur
Pakistan is a very highly speculative, very, very interesting question in fact. I think I mean it’s not — I mean proper logical to discuss this question in this call, right? I think I’ll skip this question. I’m sorry. Yeah.
Purva Jhaveri
But at least can you say how much is the order concentration in the order book concentration?
Chandra Kishore Thakur
Order book is around four-plus gigawatt in and they are at different stage of the project. Yeah, mostly completed, correct.
Ajit Pratap Singh
Our project is mostly completed in, so we are in advanced-stage of execution.
Purva Jhaveri
All right, thank you.
Operator
Thank you. Participants are requested to limit your questions to one per participants. The next question is from the line of Subhaj B from Value Investments. Please go-ahead.
Subhash V Thakrar
Hello, am I audible?
Chandra Kishore Thakur
Yeah. I can hear you, please word.
Subhash V Thakrar
Okay. So my first question was about the wind EPC order that you have got the hybrid order. So I think 3/4 ago, I attended your con-call and I asked you a question whether you would be interested in wind EPC sector as well, but you clearly said that you are concentrating only on solar EPC and not on wind DPC. So what changed this decision for you to take the hybrid order? And also, I think the wind EPC has lesser margins than solar, right? So do you still stick with the same margin guidance of 10% or the little bit about if you win more wind APC?
Chandra Kishore Thakur
No. So if you can recall if our — I mean if you have — would have discussed this point. So risk in the wind is basically from winter wine side, right? So land-related risk access risk and the performance of the winter. Our strategy for wind business is very clear. We are not going for procurement of the winter wine or doing the land access or the land these things, right? And this is only BOS that we are, I mean, concentrating on. And this order is also for the BOS. So this is ample space, even if the wind business overall growth is seen, I mean, a huge traction. The BOS part, which could be around, 30% 40% is also a good space for us. So there is no-risk out as such. So that gives our USP to basically provide a holistic solution to our customers.
Subhash V Thakrar
So are the margins similar to the RPC or does it change there? Does it?
Chandra Kishore Thakur
Margin in the is always the similar job? No, so solar BOS or the wind, I mean equipment remaining same, the business remaining same, the margin remaining same
Subhash V Thakrar
Okay. Thank you.
Operator
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Hi, good morning, sir, and thanks for the opportunity. My question is on the — how — what is the progress on NTPC execution? And how much is the orders still to be executed? And have we commissioned the 1.3 gigawatt — 3 gigawatt in this quarter?
Chandra Kishore Thakur
Yeah, this quarter means you said before June, right?
Mohit Kumar
Before June are expecting to commission in this particular Q1 FY ’26.
Chandra Kishore Thakur
No. So out-of-the total 3 gigawatt, yes, you are right, so slightly over 3 gigawatt. So around 2 gigawatt for sure it will be commissioned and another 1.2 gigawatt, they are at various stage, but then we are still expecting modules to be supplied by them, right? So if they are able to supply the modules in next couple of weeks, this can be seen, right, the commissioning is possible before in June, otherwise this may spill-over
Mohit Kumar
What is the —
Chandra Kishore Thakur
Not because of — it’s not basically because of our side. Our side, we are almost, we can say we are in advanced-stage of installation of other things. Some of the interrelated work, which can happen only after module is installed, that is only left up like some cable connections and all those stuff kind of things. So we are expecting the to be supplied soon so that we can finish the product. But from our side, all civil works, everything is to that exchange is complete.
Mohit Kumar
Just to clarify, talking about 1.2 gigawatt commissioning in Q1 FY ’26 and the balance later. Is that right?
Chandra Kishore Thakur
Yeah. So I say that over 2 gigawatt will be commissioned before June in June and 1.2 can spillover.
Mohit Kumar
Understood, sir. My second question if I may ask, how is the opportunity looking in the Middle-East, of course, given that we understand that the opportunity is very-high. Do we have the appetite to participate in the region again or can you just please throw some light?
Chandra Kishore Thakur
Yeah. We are just evaluating this Middle-East market. So I mean, no doubt there is a huge opportunity. The project size is also huge project size there coming up, particularly in Saudi and the Middle-East, right, Abu Dhabi and Dubai and all those such places. Two reasons that we are now keeping up away from this market is that the lot of the Tier-1 EPC players have — got into this market and they are at the — they are operating at a very lower-margin. That is not our appetite. Number-one. Number two, the terms and condition of the contracts, they are not conducive.
So it’s basically lenders driven — lenders driven market, right? So very stringent terms and condition in terms of penalties, acceptance or in terms of the BG requirement and all. Therefore, we are just watching that market to get corrections. And then as far as experience is concerned, we are reach experienced. We were the first to get the largest side of project in Sohan. You are aware around over 1,000 megawatt capacity. So we have the office, we have our team, but right now, we are not bullish in this Middle-East market.
Mohit Kumar
Understood, sir. Thank you and all the best, sir. Thank you.
Operator
The next question is from the line of Rishikesh from RoboCapital. Please go-ahead.
Rishikesh Oza
Hello, am I audible?
Chandra Kishore Thakur
Yes, we can hear you.
Rishikesh Oza
Yeah. Thank you for the opportunity. Sir, my first question is, if you could guide what should be our interest expense for FY ’26 and going.
Ajit Pratap Singh
So if you see current year, this has range between 1.2% to 1.7% of revenue and we believe that will be in the same range for next quarter — next year also the interest expense is what you see in the balance sheet is not exactly only on the debt. There are certain other interest also, which includes interest on advances, interest on healthy discounting and some bank charges, vendor financing, so all those interests are there. So interest cost, you cannot persist linked with the debt outstanding. Interest has lot of other components also, as I mentioned and overall guidance will be same range 1.2% to 1.7%.
Rishikesh Oza
Okay. Secondly on Nigeria, could you update exactly what is the status there? And by when can we see the agreement to happen?
Chandra Kishore Thakur
Just explained sometime before I’m not sure whether you are there. I mean it’s a very I mean clearly spelt out that I mean this things are getting delayed procedurally and it may take some time, right, but the project is on.
Rishikesh Oza
You that
Chandra Kishore Thakur
When to sign-up the contracts and — but I mean it will take six to nine months after signing the contract for the financial closure and then to get the NTP.
Operator
Thank you. Sorry to interrupt. I would request please come back-in the queue for further questions. The next question is from the line of Bhavik Shah from Emkay Ventures. Please go-ahead
Bhavik Shah
Audible.
Chandra Kishore Thakur
Yes. Can you hear you.
Bhavik Shah
So I have few questions. Sir, first, what will be your order in FY ’26 ex of Reliance and sir, how much time does it take for an order like Reliance to achieve financial closure once we get the order? And the third is, sir, what is the repeat of indemnity we are aiming in FY ’26? And my last question is, why is the other income negative?
Chandra Kishore Thakur
I’ll answer for the first question first and then Ajit will take-up for the another two questions. So financial closure is not something which pertains to me. So it’s basically reliance once the project is concluded, the EPC order that we will go for. And I don’t think that’s the basically hindrance for reliance projects to come up, right?
Bhavik Shah
So we can immediately start with the thing.
Chandra Kishore Thakur
Come back again, please.
Bhavik Shah
So you’ll be able to start with the projects immediately as we get the project?
Chandra Kishore Thakur
For us, yes. The moment the project is awarded to us, we are within the — as per the project timelines, we can start doing the work.
Bhavik Shah
Okay. Yes..
Chandra Kishore Thakur
The two questions for you.
Ajit Pratap Singh
Sorry, can you repeat, if you remind?
Bhavik Shah
Yeah. So what will be your order inflow for FY ’26 excluding Reliance? How much receipt of indemnity you will get-in FY ’23? And what will — why is the other income negative?
Ajit Pratap Singh
So as we indicated, FY ’26, we are looking for a growth of around 15% 20% in terms of overall order intake.
Bhavik Shah
So I think that was for revenue, that was for revenue, not for order income my
Ajit Pratap Singh
Order intake are the same growth we are looking at, okay, around 15% in terms of indemnity, nothing has been crystallised,
Bhavik Shah
Okay
Ajit Pratap Singh
Yeah, so indemnity is not there, but around INR850 crores we can expect to receive that has been intimated to the promoters and that should be due in September.
Bhavik Shah
No.
Chandra Kishore Thakur
So that will be — I mean they are — I mean the outflow from the project.
Ajit Pratap Singh
So the current outflow
Chandra Kishore Thakur
Basically, so I mean the number that you see that INR850 crores is the outflow from the project, which is at the various levels of the litigations, understanding and all those. Once crystallized. So if — I mean our expectation from the client is INR850 crores. So if out of INR850 crores, if something is falling sort of that will go to indemnity. And once it is — the order comes in our favor, it will go to the project company.
Bhavik Shah
Understood. And sir, why is there a negative
Operator
I’m sorry to interrupt. MR. Bhavik, please come back-in the queue for further questions. The next question is from the line of Ashal Hawa from Hawa; Company. Please go-ahead.
Ajit Pratap Singh
And one more question was on the other income is negative because of the ForEx loss that got its configured over there. So ForEx loss has been adjusted against other income, that’s why it came negative. For the quarter, not for the full-year. For the quarter, it is negative. For the full-year, if you see it’s positive INR39.6 crore the income positive hello, please go-ahead. Yeah, is it clear?
Operator
Yes, Mr Fazal, please go-ahead with your question.
Faisal Hawa
Sir, what is the kind of reduction we are expecting from our fixed costs like our central office expenses in lieu of so much competition coming on from other players in EPC, is there any chance that these expenses could be cut-down so that we are much more competitive for newer orders?
Ajit Pratap Singh
Yeah. We will work on that, but as of now we’ll not indicate any reduction. We’ll continue with the same trend what we had in the last year.
Faisal Hawa
And sir, are there any international orders that we are bidding for also and what is the size of those orders that we are — we have already bid and have you budgeted for any wins there?
Chandra Kishore Thakur
Yes. So as I have told you that, I mean, our focus is more into domestic market. International market, we are very select in a very select geography and order — only those orders we are targeting which are very conducive to our requirement, right? So good terms and conditions, better terms, not much risk. So having burnt our finger in past, so we are very careful. So if you see the last year, the order inflow, it was over INR1,000 crores. Before that also it was over INR1,000 crores. So we are targeting in the range of INR1,000 crore to INR2,000 crores orders if it keeps on coming from Africa and European market. European market means we say that the Iberia, Balkans, regions where not many players are there and then you can still command some better margins. So only those regions we are targeting.
Faisal Hawa
And are we after appointing the new CFO, are we also trying to plug-in positions from people who have resigned a lot from in the last six to seven months or we will let those posts be making mostly or just promote from the organization upwards?
Ajit Pratap Singh
So I’m reviewing the entire chart and there would be some new recruitments answer in certain key positions and whatever we can manage with the additional resource, we’ll continue to manage.
Faisal Hawa
And is there a chance that rely on
Chandra Kishore Thakur
Just to supplement Mr answer. So basically the organization is not a starved off. So few people leaving us here and there does not impact the business due to day-to-day business, right? But always as you grow in the business size, there would be always requirement to see that if the fresh blood is required or source something like this. But there has not been a mass kind of situation and that’s not really alarming us, very frankly speaking, yeah.
Faisal Hawa
And is there a chance that we could get some large orders from Reliance in the first-half itself because we have done the first pilot for them.
Chandra Kishore Thakur
No, so we’ve done the first five years, a few projects are under bidding stage. It’s difficult for us to assess at this stage that it will come in first-quarter or second-quarter. But yes, the team is working from their side, from our side. We are engaged again fully and we are working on this.
Faisal Hawa
Thanks for answering my questions so well, sir.
Operator
Thank you. Ladies and gentlemen, that was the last question for today’s conference call. With that, 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 and you may now disconnect your lines. Thank you