Suzlon Energy Ltd (NSE: SUZLON) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Jayarama Prasad Chalasani — Group Chief Executive Officer
Himanshu Mody — Group Chief Financial Officer
Analysts:
Unidentified Participant
Sumit Kishore — Analyst
Mohit Kumar — Analyst
Suchrid Patil — Analyst
Amit Bhinde — Analyst
Nikhil Abhyankar — Analyst
Anuj Upadhya — Analyst
Manit Mahawar — Analyst
Aadesh Mehta — Analyst
Anupam Goswami — Analyst
Pratik Giri — Analyst
Presentation:
operator
IT SA SA IT. Foreign Ladies and gentlemen, you have been connected to Suzanne Energy Limited Q1FY26 earnings conference call. The conference will begin shortly. Ladies and gentlemen, you have been connected to Susna Energy Limited Q1FY26 earnings conference call. Please stay connected. The call will begin shortly. Sam. Ladies and Gentlemen, good day and welcome to the Suzanna Energy Limited Q1 FY26 earnings conference call. During this call, the company management may make certain statements that reflects their outlook for the future which could be constructed as forward looking statements. These statements are based on management’s current expectations and are associated with uncertainties and risks as detailed in the annual report. Actual results may differ so these statements could be reviewed in conjunction with the risk the company faces. 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 a touchtone phone. Please note that this call is being recorded. We will begin with opening remarks followed by a Q and a session. To be fair to others, we kindly request each participant to ask no more than two or three questions from the management. We have with us Mr. JP Chalasani Group CEO and Mr. Himanshu Modi Group CFO. Thank you and over to Mr. JP Chalasani sir.
Jayarama Prasad Chalasani — Group Chief Executive Officer
Thank you. Good evening everyone and thank you for joining us for Suzlon Quarter 1 FY26 earnings conference call. Especially considering that these are crowded days for results, this year is a momentous one for us as we celebrate 30 years of Switzerland. Over the past three decades we have consistently demonstrated resilience, innovation and future focused mindset that continues to shape our journey. Talking about the industry, the recent amendment to the wind ALMM procedure by MNRE marks significant policy shift, one that is expected to realign industry dynamics by providing a level playing field to all participants and strengthen supply chain resilience.
Switzerland is fully compliant and strategically aligned with the policy framework. On the commissioning front, the industry over 2 gigawatt is already commissioned in the past four months of FY26 signaling a positive shift in the execution pace. We expect the industry to do close to 6 gigawatts of wind installations in FY26. Coming to business Highlights we are delighted to report at another record breaking quarter with Cesulon setting a new benchmark in execution by delivering an unprecedented 444megawatt in Q1FY26 which is the highest ever first quarter in the last 30 years our order books are past 5.7 gigawatt marking 10 consecutive quarters of growth and reaffirming our leadership across psf and cn segments and utility segments.
Order book for the 144 model s144 model now exceeds 5 gigawatts, a testament to superior technology and strong customer confidence. We take pride in stating that S144 has the lowest carbon footprint across all the OEMs globally and complies with the latest MNRD regulations. On the manufacturing front, our capacity of 4.5 gigawatt is fully operational and ramped up. To meet the order book at Swazilon, we commissioned 117 megawatt in Q1 with an additional 547 megawatt of erected WTV currently in the pre commissioning stage bringing the total to over 664 megawatts with less than 25% of our order book comprising non EPC projects.
Where land acquisition lies outside our scope, client side delays have impacted commissioning timelines. To address this, we have prioritized the projects with partial land availability upfront. Looking ahead, projects which come with substantial land readiness are progressing well and offer greater commissioning visibility for FY26. Additionally, Switzerland is actively pursuing a long term strategy to mitigate land related delays by developing an active project pipeline. Our OMS business continues to do well with more than 15 gigawatts of capacity in India. With machine availability ensured above 95%, Renam continues its sites for customer fleet acquisition. With AEM crossing 3 gigawatts, our forging and foundry business started showing upticks in the last three quarters and we expect to continue this trend in FY26.
Our top priority remains the timely execution of our robust order book while maintaining the highest standards of Quality and ESG. We remain committed to achieving our FY26 guidance of 60% year on year growth across all key performance parameters. I would now like to invite Himanshu to take you through our financial performance.
Himanshu Mody — Group Chief Financial Officer
Thank you JP sir and good evening ladies and gentlemen. As always for this discussion I shall be Referring to slide numbers 19 to 26 of our investor presentation which has now been uploaded on our website taking you through the Q1FY26 numbers. In Q1FY26, Suzlon continued its exponential growth trajectory delivering 444 megawatts in revenue recognition which is recording 62% growth on a year on year basis with all financial parameters showing a strong uptrend. Suzlon reported consolidated revenue of 3117 crores in Q1FY26 with EBITDA reaching 599 crores, a robust 62% year on year growth. The EBITDA margin improved by 86 basis points to 19.2% up from 18.4% in the same quarter.
Last year we achieved the PBT of 459 crores posting a year on year growth of 52% over Q1FY25. We are pleased to report on our balance sheet as of June 25. It reflects a position of exceptional strength with a consolidated net worth of 6542 crores and our net cash position stands at the 1620 crores further enhancing our financial flexibility and resilience. Adequate banking limits have been tied up of approximately 7000 crores for execution of current order book towards working capital requirement. I would also like to reiterate that our end to end wind energy model supported by a fully integrated supply chain, proven execution capability and best in class service delivers a competitive edge that is both distinct and difficult to replicate.
With this I would now like to hand over the call back to JPC.
Jayarama Prasad Chalasani — Group Chief Executive Officer
Chelsani sir, thank you. Before we start discussing the results with all of you I thought it’s good for us to up front the brief view on the issue of the development today. As you all know that which we reported first Himanshu has decided to step down and he would be sitting as a CFO as on 31st of August this year. Himanshu joined us four years back. I still remember I that point of time I was advising Mr. Tulsi Tanti on key managerial persons hiring. We had at least two or three calls at that point of time for him to take this plunge and come to Sudan the stage where we are in and it was good that I was able to convince him.
He came on board and he had all of you know that he had a phenomenal performance for the last four years. The results are shown with all that performance as a cfo. Obviously the next question is the growth in a company in the financial position that he can’t be beyond the group cfo. Therefore a few months back we started discussion and said that Himanshu should move to business for his growth purpose and in fact that point of time. In fact we started search for the success of a CFO about a couple of months back and we’ve been discussing various growth opportunities for him within the business in the company.
Obviously while we went through a number of discussions pros, cons and also he had an opportunity in the financial sector. I know that having spent hours and hours together as friends, as mentors, as a group CEO versus group cfo, we went through various pros and cons of continuing here in the business role versus financial sector. At the end of it of all that debate, he finally decided that at this juncture, the age we were in, where he is in an ambition what he has and the definitive interest what he has, he decided to take up the financial sector job.
So that was a hard decision for him. But having known that what he went through in taking the decision, we all said we respect the decision and we will support him fully. As he mentioned in his obviously is available to us at any point of time we need to drop on and I clearly told him that I take that blank check completely to NCASH and if we would, I would personally and as a company would keep dragging him into all critical issues for support moving ahead. This has been, I know personally it has been a tough call for Himanshu to decide because his heart remains villain.
But you know the mind always says that what to do next. So I think that’s the reason he took this call and we fully support and we wish him the best of luck. Of course he’s available to us till 31st of August and thereafter the blank check is fully available. So I thought I should let you know and also wanted to say that because we were moving into business, we started a search for the group CFO sometime back and we are in the advance days of appointing the successor to Himanshu. I thought it’s better I know we owe you this explanation upfront rather than somebody asking us.
You want to add anything?
Himanshu Mody — Group Chief Financial Officer
Yeah, thanks a lot JP sir, it’s, you know, no words can do justice to my four years that I’ve had here. So it’s been a privilege to serve as the group CFO at Suzlon over the last four years. When I look back at this journey, it’s been nothing short of mesmerizing. One that will always remain close to my heart and will cherish. From navigating the challenges of a debt laden organization to now witnessing Suzlon as a cash surplus resilient enterprise, I feel a deep sense of fulfillment. The dream of reviving Suzlon was ambitious journey that we embarked upon and today I can proudly say that the ship has not only weathered this storm but is now firmly anchored with the organization now on a strong footing.
I believe this is the right time to explore new professional horizons for me personally as explained outlined by you. And you know I echo the thought that it was a very, very tough decision and a well thought through one. After which I have decided to look for opportunities outside Suzlon and whilst I will be there till 31st August this year. But as I’ve also put in my resignation letter and as echoed by JP Sir, I will be available at the end of a phone, you know, should the company, the management or the board or the Tanti family need me at any point in time, you know.
With this I want to express my heartfelt gratitude to Suzlon family, my colleagues, the leadership team, every individual, all of you who are on this call. You know, several of you have interacted on several occasions, one on one and I’m sure I will continue to do so in one shape or form. So I really want to thank all of you investors and analyst community for the support that you’ve shown in us as the management during the Suzlon’s transformation journey. With that I’d like to conclude my presentation and we can open the floor to discuss any performance related Q1 related questions that the callers may have.
Thank you.
operator
Thank you very much.
Jayarama Prasad Chalasani — Group Chief Executive Officer
Go ahead, open it for the Q and A.
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. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Sumit Kishore from Axis Capital. Please go ahead.
Sumit Kishore
Good evening, thanks for the opportunity. My first question is in relation to the Q1 PNL. The Q1 interest cost seems to be up quarter on quarter even though the company is net cash. Is there any specific reason? And also if you could comment on the tax rate, we started with about 29% tax rate in Q1. What is a sustainable tax rate we should be working with going forward on an annual basis.
Himanshu Mody
So Hi Sumit, so far as the interest cost is concerned there are certain one time processing fees which we’ve paid out to institutions for working capital optimization that you will see in place over the next few quarters. So as you know a lot of a large part of our working capital is or has been dependent on letter of comforts issued by REC based on which we take exposure from the bank. So it’s a double ongoing commission that we are paying now with our improved results and with an improved FY25 performance, there are you know quite a few banks where we have tied up direct working capital limits.
Now as a result there is onetime processing fees that we’ve paid during the quarter to these institutions. But as we move along in the journey quarter on quarter basis, this will only help us optimize our bank guarantee and LC charges. So whilst you see the interest cost at about 70 crores this quarter but directionally we maintain that, you know close to about 200 crores per annum should be the net interest cost going forward for the year. So far as the tax rate is concerned, you know you should stabilize at about 25% through the year. As you know for this year it will just be a P and L charge which is a charge off of the DTA that was created in FY25.
There is no cash outlay on account of tax. You know depending on how this year pans out, we may have cash outlay going forward but you should be working with about 25%.
Sumit Kishore
And so what was the one off impact in interest for the quarter?
Himanshu Mody
Sumit don’t have the numbers handy but you know as I said directionally assume about 200 crores of net interest cost for the year.
Sumit Kishore
Okay. The second question you know is in relation to the phase out of WTG deliveries for the fiscal. So you’ve done about 444 megawatt in Q1. I mean typically you had a 4060H1 H2 mix on a full fiscal basis. Is this year going to be somewhat different if at all?
Jayarama Prasad Chalasani
We expect MIC to be same and then we also just said in my opening comments they expect that Chicago 60% growth compared to last week to be there.
Himanshu Mody
Yes but the phase out will be similar to earlier years.
Sumit Kishore
Okay and finally after ALM when what are the early indications for the upcoming tenders or upcoming bids or orders in terms of competition especially from the Chinese place.
Jayarama Prasad Chalasani
As I said Sumit the what the ALM does of course there are three components for R D and cyber security which we will not talk right now on the supply sourcing. If you look at it, what it does is creates a level playing field because everybody has to source from list of wind turbine components listed in the ALM wind components which anybody wants to list there. There’s an inspection process, quality checks before it gets listed. So I think whatever the disadvantage we had till now with respect to the Chinese and other one it goes away.
All of us are on the same level playing field. So even with the disadvantage we had significant amount of order book and moving ahead I Feel it’s. It’s good for us coming and we are fully compliant and all three aspects. Whether it is sourcing or it is R D or it is the cybersecurity.
Sumit Kishore
Thank you so much. Those are my questions and wish Himanshu all the best. Thank you.
Himanshu Mody
Thanks Sumit. And to answer your question, out of the 70 crores, 14 crores is the one time processing fees for this quarter.
Sumit Kishore
Thank you.
Himanshu Mody
Thank you.
operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yeah, good evening sir and thanks for the opportunity. My first question, order inflow. How is the order inflow opportunity looking like given some concerns on the slowing down of signing up of power purchase agreements and concerns related to land acquisitions.
Jayarama Prasad Chalasani
Mohit, first of all, I think henceforth I’m not going to ask my people for business plan. I will look at your analyst report. You seem to be.on and everything.
Mohit Kumar
Okay.
Jayarama Prasad Chalasani
That’S confident to you. But on the, on the order book wise, the. If you look at the breakup is that the 54% of order book is C and I not connect with bidding and about 2020, I think 21% is PSU and 25% is coming to the bid.
operator
Sir, please go ahead with your question. Hello. As there is no response from the participant, we will move to the next participant. The next question comes from the line of Amit from Morgan Stanley. Please go ahead. Mr. Amit, please go ahead with your questions.
Amit Bhinde
Continued increase in your other expense and employee cost where we were expecting that we’ll have some operational leverage once the volumes pick up. So can you show some light on it? Because on contribution margin level things are good. But O and M and employee cost increases and on the other hand your OM business margins are declining. So is there some linkage that we can derive over here on cost controls?
Himanshu Mody
Amit, before I answer your question, firstly just want to make sure. Are we audible?
Amit Bhinde
Yes sir, I can hear you.
operator
Yes sir, you’re audible.
Himanshu Mody
Yeah. So Mohit, we apologize, I think you know, something got interrupted and JPC sir was answering Mohit’s question earlier. But we’ll come back to Mohit’s question. Amit, we’ll answer your question now since you’re in the queue. So you know, from a manpower cost perspective, you know, as we’ve maintained that, you know, I mean of course OMS will continue to deliver close to 40% EBITDA margin. You know, that has always been our guidance and we are very close to that. So you know, quarter to quarter, it may differ based on certain onetime income or onetime charges.
So the range may vary from a tight range of 39% to 41% depending on quarter to quarter. But going forward on the overall breakeven analysis for the WTG division as we maintain that about 700 to 750 megawatts, so long as we do we would be breakeven at the EBITDA level and we will ensure that the manpower costs or other operational costs are kept under control with that. Another feature that we’ve started adding from Q1 this year is that the annual PLI provisioning, you know which historically was done to the extent of 80% because you know company was always falling short of its targets or you know for obvious reasons we know of but now we started provisioning the PLI to the extent of 100% which means that we are of course confident of meeting our own internal budgets and targets which are in line with the guidance that we offer to the street.
operator
Sir, the line for the participant has been disconnected so we’ll move to the next participant. The next question comes from the line of Suchrid D. Patil from Eyesight Fin Trade Private Limited Please go ahead.
Suchrid Patil
Hi, this is Sukrut Patil here. My question is to Mr. JP as Suzlong grows in the wind energy and maybe looks at new markets or tech, how are you planning to keep the growth steady if demand slows or there are some policy changes and if some plans say don’t work out do you have a backup to protect the margins and keep moving ahead?
Jayarama Prasad Chalasani
Yes sir, yeah obviously if you see that today our the order book is 5.7 gigawatts as on today as we speak and then there are many more orders which are under the discussion so there are sufficient order book for the this year, next year and the other one as I mentioned some time back our order book is predominantly for C and A segment and the PSU segment which is not going to stall because the CNS needs this switch over to renewable energy for the tariff arbitrage as well as for the green energy coming into their for their products and PSA would continue to be there if at all we can speak about is that will there the PPA sign and and the bidding route can be slightly slowed down but I don’t see that overall impact to that extent.
We are very much on target to reach that if not hundred as we always mentioned that we will definitely touch 8590 gigawatts by 2030. We will reach there even today as we speak about 17 gigawatts of wind is under construction and we already crossed about 53 gigawatts or so. And I really don’t see that as an issue. And as we mentioned sometime back that the to ensure that anybody backing out we are always consciously booking compared to what we can supply in a quarter or in a year.
Suchrid Patil
Just curious in case the competition picks up. So are you thinking of going into JVS or into partnership with any firm and if possible can you, can you discuss with whom would you be partnering up in the future?
Jayarama Prasad Chalasani
We don’t need to partner with anybody. In India we are the leading mini manufacturer and the competition has been there, competition will be there. Only the competition would keep changing. At one point of time we’re competing with European players and today we’re competing with Chinese players. Competition would always be there and we always remind the market we, we bring our models because we have an in house R and D. We bring our models which are more competitive. The. And then today the. Even after the ALM has come, new ALM regulations have come in which I mentioned some time back also removes our disadvantage and we are on the same level playing field with everybody.
So therefore that competition of cheaper imports is not there anymore moving ahead. So therefore I don’t. It’s not out of sensors again but I think logically if you see that won’t be an issue. But having said that we always need to keep working towards the reduction of cost per kilowatt hour of our turbines which would happen from the point of reducing the cost of procurement cogs as well as improving the efficiency of each of the turbines. And as in the next few months you will see that, you know, newer and newer versions coming in in terms of the same platform with improved efficiencies for autopilot.
Suchrid Patil
Great, thank you very much for your guidance.
Jayarama Prasad Chalasani
Thank you.
operator
Thank you. The next question comes from the line of Siddhartha, an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Jayarama Prasad Chalasani
Yeah, you are. Please go ahead.
Unidentified Participant
On a great set of numbers. Sir, two questions I wanted to ask. One on the new product development journey that you just talked about, could you please throw some light on what kind of product development journey we have? I understand the S144 is one of the highest performing products in the market today, but are you looking to launch, you know, products beyond the 3.15 megawatt, say somewhere around 4 megawatt turbines?
Jayarama Prasad Chalasani
Let me not put a number to it but as you know that you know we are the only Indian OEM who has, you know, R and D We keep developing models from time to time. So the what we do is that because we studied, I mentioned this in earlier calls as well because we study the wind data across the country from time to time every year we keep studying wind sites. We know what type of a wind sites will come in two years, three years down the line and what type of a turbine model is required there so that cost per flow tower doesn’t go up.
So once one model is out, even before that is out, next model is always on the design for us. So I can assure you that the next set of models would come in time. And also let’s understand the fact that the megawatt size doesn’t make any sense in India especially what is important is what comes as cost per pill or whatever. In fact the Director general of Nivea was on record in the open meeting with the chairman with the minister saying that India is best suited for anywhere between 3 to 4 megawatt because of our low wind speed and we are not suitable for irsing.
And second thing is also logistics is an issue. So therefore it takes some time before large turbines can be transported to the site. But to answer your question, yes, we will bring out the next model as and when we think it’s necessary.
Unidentified Participant
Yeah. Thank you sir. And the second question on the industry dynamics, as you rightly pointed out, the LCOE is the North Star metric that a customer basically looks at with battery prices decreasing further now we see that there is some indication that prices may go up. But are you seeing that a Solar plus best sort of a system would displace wind? Except for the FDRE projects
Jayarama Prasad Chalasani
we discussed. Earlier, wind tariff is let’s say anywhere between 3.6 to 3.9 depending upon which state what it is. Okay. And this, the most of it comes during the peak hours, evening peak hours. If you’re putting solar plus the battery solar tariff is let’s say 2.5, 2.6 today with LMM requirements. So if I take out the 2 point, unless the battery cost is less than 1.2 per kilowatt hour, the solar plus battery can never ever replace wind. Therefore what would actually happen is nothing to do one replacing the other. The different combinations of Solar plus storage, Wind plus storage, Solar plus Wind plus storage would come in depending upon the load profile of different states for different requirements.
I don’t think one is going to replace other ones which won’t happen. And also from the grid stability point of view, it can’t happen.
Unidentified Participant
So thank you so much sir.
operator
Thank you. The next Question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yeah, I’ll repeat my question sir, because.
Himanshu Mody
We went to other questions. We forgot your question.
Mohit Kumar
Yeah, no issues. The question was how is the order inflow opportunity looking like given concerns on slowing down of power purchase agreements and the concerns related to land acquisitions. That was the question, sir.
Jayarama Prasad Chalasani
We at least if you look at last 10 quarters, nine to 10 consecutive quarters, Mohit, that the. Our closing order book has been higher than the opening order book in spite of the fact that the deliveries each quarter has been increasing. Okay. So therefore order inflow has been very steady for the last nine quarters. This itself shows sustainable growth. Having said that, looking at the order pipeline, what currently we’re discussing. One is we have a 5.7 gigawatts and second thing, looking at the order pipeline, what’s we have, we’re discussing. I. I don’t foresee. I’m not saying for the sake of saying it.
I don’t foresee order which I mentioned earlier. Order is an issue for at least next couple of years. I don’t think that’s any issue. Respect to the next two to three years we will have enough order book flowing in from C and A plus. Also the see our advantage is also that slowly we will move ahead with the epc. Epc nobody offers with land. Then please our oms, this alm, all this put together. I really feel pretty confident that order book would not be issued.
Mohit Kumar
Understood. The second question so what are the aspirations for us for AC force for next three to four years?
Jayarama Prasad Chalasani
See, it started first of all we wanted actually to put it on the growth trajectory on a consistent basis. So if you see the last three to four quarters we are consistently seeing the growth. So we can always have a debate about this growth rate is sufficient more but at least consistent growth rate. In fact, if you see the quarter one it has been one of the best quarters for seforge now with various. One is that we are now expanding into non wind in a big way and then considering an exports as well. So therefore we.
I don’t want to put a number to what it is going to be but if we see a significant uptick I would actually would prefer to talk about the next two three years plan for SE post towards end of this year after establishing this year numbers thoroughly. And also the whatever is happening in terms of alm, in terms of bis, all these are going to help the sefors. In fact now with this restriction even the bearings can’t be imported. Not Imported, they don’t use the word of imported but basically bearings have to be domestically sourced.
So I think SE4s will stand in a good position. But exactly what I see as a clear path is that it’s good for us to talk first actually showing one year good numbers and which we are confident of showing this year.
Mohit Kumar
The last question of export potential. I think your slides mentioned the export potential. Do you think there is a significant near term opportunity in the neighborhood or maybe the Middle East? And any comment on export potentially helpful? Yeah.
Jayarama Prasad Chalasani
There is reasonably good export potential as I said, in the neighborhood in the Middle east even including the Europe where we can really compete right now. I’m not talking about us, that was one of the first countries we were targeting. But I don’t think neither you nor me can comment upon. I can import export years on at this place. But we are concentrating on the neighborhood Middle east and the Europe. We are now right now on the process of studying different countries, what models, what price ranges are there. And because most of these places other than the Middle east, most of the places we have been present and we’re talking about our program and getting the right kind of model ready.
So therefore, you know, let’s say can start some sort of an exports in a year from now gradually but we will start offering and taking the orders towards end of this year.
Mohit Kumar
Understood sir, thank you, that’s really helpful. Thank you.
operator
Thank you. The next question comes from the line of Amit from Morgan Stanley. Please go ahead.
Amit Bhinde
Hello sir, Sorry, the line dropped in the earlier question. So yeah, the second question that I had was on your contribution margin that’s been pretty good at 26% but do you see this like settling at this rate or would it go down back to 20 to 23%? And what has been the lever what changed that drove this jump from 23 to 46% in this quarter?
Jayarama Prasad Chalasani
Himanshu will explain. But my vision, it stays there. But my wish.
Himanshu Mody
Amit, you know, of course I think, you know firstly I think we maintain our guidance that it will be about 22 to 23%. This quarter has been high, you know, because of two or three reasons. There are certain high, you know, average sales price orders that have got delivered in this quarter. And also there has been a lower project activity due to the early onset of monsoon. Plus of course we’ve been able to maintain our cogs. Now the cogs maintaining would be an ongoing phenomena but the other two factors are very, very quarter to quarter dependent.
So when you sort of look at overall matrix on an annual basis I would say we maintain the guidance of 23%. So this is clearly an outlier performance for this quarter.
Amit Bhinde
Another thing just in continuing on this point is your realization actually are declining to around 55 million per megawatt now despite you saying that there were some high price orders in this quarter and etc is also not there. But still the trend goes down. So are we seeing price pressure despite the competition being tapping at the moment?
Himanshu Mody
It’s not pricing pressure, it’s a low per EPC activity and low EPC billing. I mean you know with the higher EEPC billing the 55 million would actually go close to 57, 58 million. So we’re maintaining. So there’s no pricing pressure that we’re seeing from customers or from competitors.
Amit Bhinde
All right, this is. Thanks. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Nikhil from UTI Mutual fund. Please go ahead.
Nikhil Abhyankar
Yeah, thank you. Sir, just one question from my side. So if you look at the last five quarters we have supplied 2 gigawatt and our actual commissioning is somewhere around 500 megawatts. So just want to understand as to. I mean how long will this go on start facing some kind of delivery pressures going ahead and rather have some kind of an impact on our 40 60% volume guidance.
Jayarama Prasad Chalasani
Very good question. This is what bothering everyone. See the obviously yes commissioning wise when you look at it that shows the difference. But there are number of turbines out there commission in fact beyond June what we announced Even in these 30, 40 days we commissioned another 55 megawatt and 166 megawatt. We pre commissioned it. These turbines are ready to get onto the grid but the client is not ready. With this 33 KVR evacuation system there’s another 400 megawatts have been erected. So therefore things are at different stages of the erection missing and hopefully the now this year onwards like you’re seeing the sector also is picking up.
If you look at quarter one last year was 700 megawatt. This year is 16 megawatt. Slowly the pickup is happening on the execution. So therefore I think before we reach the stage what you’re talking about, you know will it have an impact on turbine supply? I think we should be able to manage this. Yes, there was. There is a. In fact we would have supplied more than what we actually supplied in the quarter one if there was all that pressure of projects not being able to offtake. That’s already there. To what extent is impact is a question.
But the to specifically answer your question. On the guidance. No, we stand by that 60 with all these pressures we know what projects we’re doing it what projects were opening up. We don’t see that the, this is having any impact on the guidance for the game categorically.
Nikhil Abhyankar
Okay, thank you sir and all the.
Jayarama Prasad Chalasani
Thank you.
operator
Thank you. The next question comes from the line of Anuj Upadhya from Investec. Please go ahead.
Anuj Upadhya
Yeah sir, thanks for the opportunity. So my question relates to the ALWM. That is the localization push which definitely. Would lead to a self reliance but. Don’T you think so you know it. Would lead to a, a short term supply chain disruption because certain key elements like special bearing gearboxes, your machine turbine control, they all are imported from China. So won’t this have any kind of an inflationary impact on the cost per say? Because if you see the industry anyway, you know India has close to 1516 gigabyte of overall WTG capacity manufacturing capacity of which the utilization would be in the range of 1/3. Close to around 6 gigabyte is what we are executing on an annual basis. So underutilization pressure plus this cost inflation. I mean just want to get your sense on how would this turn up.
Jayarama Prasad Chalasani
To partially you answered yourself the question the underutilization goes up. Okay. Because the we are. Let’s say that some of the components supplier speed are at 25, 26% utilization. Even in tactical look at our SE for which is about 26% is the capacity utilization. As the capacity utilization goes up, the cost actually comes down. Doesn’t go up because your fixed cost remain the same. And the second as you the I don’t see any problem in terms of care box generators and everything. We collected the full data, IW team has collected the full data and presented to mnre there is sufficient capacity available in India.
And also with this upfront saying that for the projects which are going to get commissioned in the next three years where the bids are submitted or exempted plus next 18 months commissioning for other things. So there is enough stabilization period for us to meet that. So personally I don’t see any issue. In fact even before the notification came I have seen many of these foreign suppliers, you know, going around the country and trying to source their things and talking to various people designing their products, everybody on the job. I personally don’t see any issue with respect to the supply constraint as well as I don’t see any concern with respect to the cost because today we, even today we, our manufacturer, our supply is mostly domestic.
So still we are competitive in the market. So therefore both point of view and also there being a timeline. I don’t think there’s an issue. In fact if you ask me, two to three years down the line cost should actually start coming down because capacity relation significantly will go up in India.
Anuj Upadhya
Okay, that’s. That’s helpful sir. And just to veritate you mentioned that WTG market for the current year would be around 6 gigawatt, right sir? Yeah. Commissioning target and any. Got it, sir. And in terms of delivery, how much would that be?
Jayarama Prasad Chalasani
Delivery generally doesn’t nobody measures the delivery. We can only talk about our deliveries because we don’t know who delivered, how much, how much is sitting on the ground. Because except us. And one more, there is no listed company which announces what deliveries they made. That, that, that is not tracked by means. At least publicly it’s not tracked. Even ministry tracks only the commissioning target.
Anuj Upadhya
Fair point, sir, that’s helpful. Thank you.
operator
Thank you. The next question comes from the line of Manit Mahawar from UBS. Please go ahead.
Manit Mahawar
Hi sir. Congratulations on continuous growth journey. I just have one question on the orders that we’ve won in last two, three quarters. Are these different on the terms in terms of advances that we have, the execution timeline and particularly if you want to comment and connect this with the improving competitive edge Swiss loan has, whether you call it right which will plug a lot of gaps or some consolidation in the sector. So just wanted to connect these two and wanted to know your thoughts and particularly on the quality of orders and the terms also the timelines of the.
Thank you.
Jayarama Prasad Chalasani
The first thing is our aim is always not to increase the price even if you’re in a monopoly situation because price goes up, tariff goes up and marketing number of times. Our aim always is to keep reducing the cost. Any new model comes when it keeps our cogs keeps coming down and then we also keep offering some sort of a reduction to customers. So therefore I don’t see any that sort of a pressure. And also even the latest orders, what we took, we have our margin expectations and we don’t compromise on that. And everything is taken at that level only.
And obviously depending upon in some contracts there is, there is a different risk pattern. Obviously this can cost would go together. It depends upon the commercial terms, payment terms, your price might vary but otherwise base price would remain the same.
Manit Mahawar
Okay, fair. So sir, the same question. So broadly you’re confident that in case there is any possible, you know, minor inflation cost it is within the mechanics to see and manage that so that the LCU is Optimized for the client.
Jayarama Prasad Chalasani
I confirm that. Sure. Thank you and good luck.
operator
Thank you. The next question comes from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Unidentified Participant
Yeah. First question is on the. On the margin side. So given the. Given the increasing PSU orders and C and orders in our book, can we expect improvement in margin especially in the WTG segment? And second related question is will the part of this improvement in margins would be offset by let’s say increasing share of WTG in the overall revenue mix compared to let’s say higher margin O and M business.
Jayarama Prasad Chalasani
Financial answer. But before that, if you are tracking that, you know that we were giving a guidance of saying that we will be mid teens. Then we revised it to early team, late teens. Then we said that early 20s, 20, 22. We have been revising and improving our margins anyway. Our guidance as well from time to time.
Himanshu Mody
Yeah. So Mahesh, I think as I mentioned earlier we maintained that you know, at least the contribution margin we will continue at 23% on a longer term basis, at least for this financial year, this quarter. Numbers may be a one time outlier led by the three factors that I outlined earlier. So we maintained the 23%. I think the margin that we are guidance that we’re giving is based on the order book mix that we have currently. Now of course going forward, if that order book mix changes significantly then you know, we may come back and you know, correct on the margins.
But right now where we stand, we maintain that we will be at about 23%.
Unidentified Participant
Okay. And for this 60% guidance that you have given. So if we consider this on the. Solely on the WTG installation. So considering the, let’s say inflation and other factors, can the top line growth be higher than 60% or 60% is top line as well? That is the guide.
Himanshu Mody
We can’t pick the guidance. We said 60% on all the key parameters, which is what we stand by.
Unidentified Participant
Okay, sir. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Adish Mehta from Motilal Oswal amc. Please go ahead.
Aadesh Mehta
Hello sir, just wanted. Hello. So just wanted to understand versus Chinese competitors, what would be the pricing differential be. That’s my first question. And second question is with this requirement of, you know, domestic manufacturing of components, what does this do to Se Forge? You commented that you know, it will do better if you can just elaborate more on that. Thank you, sir.
Jayarama Prasad Chalasani
Yeah. See the, the on the Chinese, really I can’t say what would be the difference because the different phase are coming. Let’s assume that we normally feel that there is a difference about 5 to 6% between us and them. The cheaper till now that’s. That’s a range what it is. But the thing is that the. There is a great differentiation factor between us and them. It’s not just the price because of which people give it to us. One is reliability of the product or how people look at it. And the second is that we are here, the Indian company and we offer 25 years of YNUM service which is comprehensive.
Anything happens during the OMN service period, any component fields, we replace things. So I think that proven track record of 30 years and we being here, our product being strong and we also offer end to end starting from the land to the service business is what we get this order especially from the C and D segment. If you see that the reason we are strong in C and I and public sector these two areas. So 75% of order book coming from these two segments. That will continue. As far as your second question is concerned with ALM coming in.
So let’s see the fine print. What is coming up. Because we also make these castings to for all the gearboxes and we also make the bearing rings. Okay. So therefore with with the significant uptick coming in terms of everything to be probably domestically sourced. Because it doesn’t talk about domestic sourcing but the intention is to domestic sourcing. The demand for the components from SE Forge will increase both in terms of bearing wings as well as castings. So both foundry unit as well as the posing unit, both will get benefited.
Aadesh Mehta
Thank you sir. Thank you.
operator
Thank you. The next question comes from the line of Anupam Goswami from Sud Life. Please go ahead.
Anupam Goswami
Hi, good evening sir. What I can estimate your order inflow was close to about 540 crores. And that run rate is lower than any of the quarters last year. Can you throw some light on this and how do you expect the order inflow to build up going forward?
Himanshu Mody
So from as JP sir mentioned earlier, we don’t see any slowdown in the order inflows. I mean you know right that during Q1 it may have been little less as compared to earlier quarters in terms of new order inflows. But that is not a barometer for the quarters going forward. I mean there is a very active pipeline that our team is in advanced stages of negotiation. And as per our policy now you know that any order which is over 100 megawatts and once we have received confirmed advance from the customer only at that stage is when we declare the order as a confirmed order.
So you know and you will hear about certain active orders that get translated fairly soon into confirmed order.
Anupam Goswami
Okay sir. And also in terms of slight PPS getting delayed and cancelled also are we seeing any slowdown in the next quarter or so and when you see the pickup may happen as I said that.
Himanshu Mody
Our order portfolio 75% comes from the C and I and the PXS segment. So Therefore the only 25% come from the bid segment. And every single order what we take in the bid segment which we mentioned earlier is only after the PPA sign. So the we don’t take any orders where the PPA is not. In fact the even the IPP would not be willing to give the order without the PPA signing. So the whatever orders employees happening are all after the PPS timing. So therefore there is no uncertainty once the order is booked.
Anupam Goswami
Got it sir. And grid order, that sort of bulk order will. Are we ready for that? I mean we have, we are qualified to take that, right? Power utilities order.
Himanshu Mody
Yeah, we, we again today the 2021% of order book is from PSUs and NTPC itself is. We have more than 1.5 gigawatt of water right now. NTPC is one of our the single largest client.
Anupam Goswami
Right. Thank you sir, I’ll join.
operator
Thank you. The next question comes from the line of Pratik Giri from Sublab Research. Please go ahead.
Pratik Giri
Hello. Am I audible?
Jayarama Prasad Chalasani
Yeah.
Pratik Giri
Greetings Mr. Chilthain. Great numbers. Congratulations Mr. Chilthani. I have my first question on Bess so I just wanted to get your sense, you know in case the Bess storage goes up to say six or 10 hours or any long duration storage comes, will the rule of wind still be relevant or wind relevance due to long storage may change, you know, if it comes. That’s the question number one, if you can help me understand.
Jayarama Prasad Chalasani
The longer the storage, higher the price of storage, okay because number of charges, what you need to do and things like that. I don’t think the. See there are two things. First of all storage is not generation. Okay. So the story is storing at the end of the day the and. And it has a huge amount of issues with respect to subsequently once the life is over and I’m not counting all that. But at the current day, even if the prices are coming down, Solar plus storage cannot replace on the tariff basis the wind. What would happen? As I said sometime back, one source will not replace other one.
There will be different combinations potentially. Now for example let’s Take this case of what CRC came up saying that the solar substation is connected during the non solar hours. They’re going to give connectivity for wind or storage and everything in those cases it automatically makes sense for the wind and storage. Daytime whatever is generated in the wind you put in the storage and the nighttime anyway wind change, we have the connectivity. So there’s so many things that are happening in the grid level. I really don’t see one replacing the other. The because our, our wind, our load profile country is different and peak demands are different.
So I think all three will coexist in my opinion. So the it won’t happen that one is going to replace other. One. Case I will give you is.
Himanshu Mody
That everybody talks about the storage prices being the cheapest in China. Okay. And which is a fact. But if you go back and look at the capacity addition, what is happening there? There is a significant addition of capacity of wind which is in fact they do whatever we’re doing in five years, they’re doing in one year. So if you, if the solar storage is the right case why should they add wind at all? Because they, in their case there is no question of battery not being available. So the system not being available because they have all the, all the paraffin here.
So from the great point of view it doesn’t work that way. It is not just a tariff alone.
Pratik Giri
Understood? No, Mr. Thank, this is, this is really helpful. I have my second question on a competitive intensity. So we saw the resolution of one of the European players in India recently probably six, eight months back. So are you seeing incremental competitive intensity in the new orders where we are bidding?
Jayarama Prasad Chalasani
The competition is going to be there and the competition number of players is increasing. Fine. So that’s, that’s which we can’t wish away. It was there earlier, it is there even today. And then there are more players today in the market than it was about let’s say a couple of years back. Including the new player whom we are talking about as long as we have our. The specific product. When I say specific product is that service what we provide the entire EPC plus the service business. And with our in house technology we do have a differentiation compared to the others.
Okay, how many of them will really stand by for the service business? They might say we will do service, but will they be there? The track record in the past was there is not even one single OEM domestic global host DF or service agent will continue to service with the only company we can do the service for entire 15 gigawatt and then doing for everything else, I think we will build those different stations while at the same time trying to reduce our cost through various means and compete in the market. But competition will always be there.
Got it?
Pratik Giri
Understood. One last one if I may.
Jayarama Prasad Chalasani
Yeah, yeah, yeah.
Pratik Giri
Thanks a lot. Thanks a lot. So Mr. You have you know highlighted this point a lot. But please allow me to ask this again, you know, with a little bit of change. So last quarter I remember you know you told us that the two Indian players in wind turbine generator segment are highly self reliant in terms of their supply chain in terms of their component sourcing. So is it fair to assume that you know this LLM issue which is being implemented recently is kept is done to keep the other folks in check who are basically non Indians.
Is that understanding correct? Mr. Chelsani, if you can experientially, if you can throw some light is and force. Is this understanding that correct? That the two Indian players are entirely self reliant?
Jayarama Prasad Chalasani
I don’t know where from two, I don’t remember that too. But we are completely, we as an Indian company will completely meet the requirements. What has come in. Let’s understand the ALM is not. ALM is not saying that you know, somebody from X country or the Y country is not alone. It is not the case. They are. What they’re saying is that boss, please design here, please manufacture here. You do whatever business you want to do. We have most welcome to do. That’s what A11 does. But then what they’re trying to say is that okay, we will set the standards for wind components.
Till now we have not done this. We have only were doing it for the turbine as a whole, as a type certificate. But all these five components now we need to get listed in the ALM wind turbine components list. And if you want to get listed we will come, we will inspect, we check the quality and everything then only get listed. And everybody has to procure only from the approved list of component suppliers. So this brings in in terms of level playing field.
operator
The line for the management has been disconnected. Please stay connected while we reconnect the line. The line for the management has been reconnected. Hand it over to you sir. Hello.
Pratik Giri
Hello. Yeah.
operator
Yes sir. Yes sir. You’re audible now. Please go ahead.
Jayarama Prasad Chalasani
Mr. Chelsani, you were at the point of a list of approved vendors under this new scheme. I was saying that everybody is on the same level playing field with respect to 15 on the same list of components. So therefore there is no advantage of cheaper imports to Others understood.
Pratik Giri
Very helpful. Congratulations once again, Mr. Chelsani. And congratulations to Himanshu again for the new stint. Thanks a lot.
Jayarama Prasad Chalasani
Thank you.
operator
Thank you. The next question comes from the line of Shiva from Prunatra Investment Advisors. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yes, sir, you’re audible. Please go ahead.
Jayarama Prasad Chalasani
Yeah, you are. You are.
Unidentified Participant
Yeah. Good evening. Thank you for taking our time. So my first question is with respect to the installations. Just wanted to understand. So you’re saying that the evacuation power that is the bottleneck of your. So if you could just explain. I mean, what can. I mean obviously this is the government that has to be done or can it be done in any other way? Like CNI or captive have their own way of transmitting or is it totally dependent on government for this to happen? And what gives us the confidence going ahead that the evacuation, I mean this aspect of that will improve going ahead? I mean is it a state, few states picking up pace or is the central taking the entire.
If you could just explain this entire. Yeah.
Jayarama Prasad Chalasani
Evacuation is two parts. One evacuation is within the wind farm particular system which takes from each turbine to the pulling substation. And the second one is you have to put the transmission line by the IPP from the pulling substation to the nearest central CTU substation and the CDU substation itself. These are three areas what I talked about. Whether it’s ROW or various issues creating problems. Land acquisition, row. You see, even the power grid faces the same issue in terms of ROW and land acquisition. Everybody is facing the same issue. But having said that, I think whatever delays have happened, happened till now at least.
ETU substations are now with all the delays are likely to come up our expectation. That’s why we said that. We said that this year we will do 6 gigawatts while we did only 4 gigawatts last year. Because these things are easing out. And then we should reach 77.6 gigawatt in FY27 and go to 8.9 thereafter. Things are easing out. I don’t say it’s gone away. We can’t wish them away. But there is a consciousness in the government in various areas this needs to be resolved. But problem is there but slowly getting resolved.
Unidentified Participant
Okay, so just understand the 4.2 gigawatts or the 1.6 gigawatt that we installed this quarter and four quarter last year. This is installed and giving power. Right. They’ve already been installed and giving time. Our proportionate is slightly lower. Right. Like 4.2 was installed at entire level like 3.3 in FY24, 3.3 was installed and we installed 882 megawatts. But FY25 and Q1 our installations ratio to the India’s is way low. So what is the mistake in here?
Jayarama Prasad Chalasani
That’s because the gradually our EPC where we have a full control component has come down. We are depending upon more on the client’s ability to acquire the land into the projects. In fact in our order book about 52% I think at least 78% is the non EPC in that again what 52 or 54% is pure equipment supply. We don’t even do erection things for that. So one reason the last couple of years the our share has come down. But we expect this year as we see the things it’s picking up and we would continue to have decent share compared like what we used to have earlier.
You know, we always used to be around 24, 25%, 26% sort of a shareholder. We should be able to reach that level.
Unidentified Participant
And any plans to move towards because the installations are delayed because we have lesser number of epc. Any plans to shift towards EPC slightly higher going ahead or you still feel it can be manageable?
Jayarama Prasad Chalasani
We want to move to epc. That’s the reason we last name. Also I mentioned that we are now acting on acquiring the land in advance in different states. But the result of that will come only in FY27.
Unidentified Participant
Understood. And one more thing regarding the ISTC charges. This ISTC charges which I think 25% can start kicking in. So any rough idea about what are the C and IR thing which are cross state in our advances or in our orders? Or does it have an impact in cross state? Or do you think it is too early? This 25% is too early.
Jayarama Prasad Chalasani
It will have an impact on them. But still 25% is much cheaper than 100%.
Unidentified Participant
Okay, so going ahead after once. So because lifelong your Commission here is.
Jayarama Prasad Chalasani
25% remains for the rest of the life of the project.
Unidentified Participant
So because in the case of sun it is throughout India. But in the case of wind it’s only eight states. But the C and I factories will be throughout India. So that boss state thing, do you think in the larger scheme once the.
Jayarama Prasad Chalasani
100% simplify it even after you account for all these transmission charges. Arbitrage for CNA is much better if you go for renewable energy.
Unidentified Participant
Okay, okay. And just one small correct understanding in the 4.2 gigawatts this is. This doesn’t include captive power. That’s got installed.
Jayarama Prasad Chalasani
Right. Sometimes they include something but it doesn’t make a much difference. But CNA I think gets included in that. So is included. But captive is not included. Active also should be included. Mostly because this is the connect. They take it from all OEMs how much they commission database got commissioned. I was just checking the data earlier. They were not including this. Whatever is connected to the grid, unless it’s the back of the meter is part of 4.2. Okay, so the power that Indian government as told that. Please, you know we can connect with you offline if there’s any call queries.
Unidentified Participant
Sure. Thank you. Thank you.
operator
Thank you. The last question comes from the line of Dilip, an individual investor. Please go ahead.
Unidentified Participant
Congratulation to the team for a good set of numbers. Okay, I have my the last question here. See this year or particularly this quarter you have installed about 444 megawatt of power. Installation would be there. That is my first question. The second question that inventory and other things are also proportionately increasing as the sales turnovers are going to. So is it something will keep on increasing as the revenue goes up or at some point of time it will be stabilized. These are my two limited questions.
Jayarama Prasad Chalasani
So inventory of course in overall terms rupee crore terms it will. It is bound to go up. You know what we monitor and we’ve been giving guidance is the networking capital and inventory forms a part of it. You know, currently we are give or take anywhere between 90 to 100 days, you know, which used to be about 120 days at one point in time. So directionally we said that we are looking at reducing that, you know and bring it down close to about 75 days. So the trajectory towards that is very much on. But of course you know, looking at inventory share in rupee crore terms on an absolute basis will of course increase.
But because of the order book and the inflows that we have.
Unidentified Participant
Just a small question at this point. Sorry, just to interrupt. Small question that you recognize the revenues the moment you components and everything out of the factory and you raise the bill or it is only recognized at the time of once the installation is commissioned and everything is complete.
Jayarama Prasad Chalasani
No. So when we say that you know revenue recognition we do at the time of the entire equipment being dispatched from our factory premises. So that’s when the revenue recognition of the equipment is done. What is linked to various milestones is payments. So you know, upon dispatch or from the factory upon the goods at the site, upon commissioning of the turbine. That is a linkage of the payment. What invoice is raised upon dispatch of the good.
Unidentified Participant
So that will come into receivables and inventory and all kind of receivables. It will come into receivables. Okay, fair enough. My last question was that this quarter. Yeah, yeah.
Jayarama Prasad Chalasani
I say that the quarter to quarter variation always be there. But as a year, we gave a guidance that 60% growth. We stand by that. Let’s look at the year. Because that if you look at each year, that quarter variation will always be there. Some quarter. Yeah. So let’s look at the year basis. Year basis. Yes, it will remain.
operator
Thank you, ladies and gentlemen, on behalf of Suzlon Energy Limited, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.
Jayarama Prasad Chalasani
Thank you. Thank you.