Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Vikram Solar Ltd (NSE: VIKRAMSOLR) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Sheetal Khanduja — Investor Relations
Gyanesh Chaudhary — Chairman and Managing Director
Ranjan Jindal — Chief Financial Officer
Sameer Nagpal — Chief Executive Officer
Analysts:
Sahil Sheth — Analyst
Ankur Gulati — Analyst
Unidentified Participant
Anuj Kapil — Analyst
Kaushik Doshi — Analyst
Akshay — Analyst
Praveen Sahai — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Nidhi Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome you all to the Q4 and FY26 earnings conference call of Vikram Solar Limited hosted by GoIndia Advisors. Please note that today’s conference call is being recorded. The audio and content of this earnings call constitute proprietary corporate material of Wicklim Solar Ltd. May not be reproduced, redistributed or quoted in any public forum or media communication without the company’s prior written approval. I now hand the conference over to Ms. Sheetal Khanduja from Goindia Advisors.
Thank you. And over to you Ms. Sheetal.
Sheetal Khanduja — Investor Relations
Thank you Iqra. Good morning everyone and welcome to Vikram Solar’s earnings call to discuss Q4 and FY26 results. We have the senior management team with us and joining us on the call today is Mr. Gyanesh Chaudhary, Chairman and Managing Director, Mr. Sameer Nagpal, Chief Executive Officer, Mr. Ranjan Jindal, Chief Financial Officer and Ms. Reenal Shah, General Manager, Corporate Finance. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risk that the company faces.
May I now request Mr. Chaudhary to take us through the company’s business outlook and financial highlights subsequent to which we can open the floor for Q and A. Thank you. And over to you sir.
Gyanesh Chaudhary — Chairman and Managing Director
Thank you Sheetal. I hope I’m audible. Good morning everyone and a very warm welcome to Vikram Solar’s fourth quarter and full year FY26 earnings conference call. On behalf of the entire Vikram Solar management team, I would like to thank our investors, analysts and stakeholders for your continued confidence and support. FY26 has been a year of great significance for us and I will walk you through three things. How the operating environment has shifted, what we have built and where we are headed.
My remarks will follow by a detailed operational and financial walkthrough from our management team. Now the geopolitical disruptions for the past two years, most recently in West Asia have reinforced one reality for import led economies like India, energy dependence is now a structural risk, not a price cycle risk. Disruption in oil, gas and freight routes are no longer temporary shocks. They are permanent feature of the global system. Solar uniquely sits outside all of it. The result is fundamental shift.
Solar is no longer being pulled by incentives. It is being pushed by policy, by supply chain realignment and by energy security. Security, economics and policy are now aligned. And Solar sits at the very center of this energy transition, not at its edge. This is the world Vikram Solar was built for just weeks ago. Mr. Amitabh Kant, former CEO of Niti Aayog and India’s G20 Sherpa, described India’s import dependence as a national security crisis, not merely energy issue. He called for non fossil fuel capacity to be scaled from 500 gigawatts to 1,500 gigawatts by 2030 alongside large scale storage and critical mineral processing at home.
His framing Energy independence is sovereignty captures exactly the moment we are operating in. India is currently the world’s third largest solar market by annual additions. Industry assessments project us moving to second within the calendar year. This is huge. We are not changing a cycle we are building for the coming decade as we scale into more integrated execution focused organizations. I am pleased to welcome Sameer Sameer Nagpal as our Chief Executive Officer. Sameer brings over 35 years of leadership experience across a diverse set of sectors with a proven record of architecting turnarounds, building high performance teams and driving profitability.
Please do join me in welcoming him. His mandate is also very clear, driving operational discipline across the platform, strengthening execution rigor and aligning the business for the next phase of growth. I now turn to what I believe is the most consequential strategic decision we have taken. Our backward integration roadmap. India today imports nearly all of its wafer and ingot from China, creating supply chain vulnerability for every domestic manufacturer. Vikram Solar will capture that value chain upstream and convert India’s solar surge into enduring non transient profitability.
Our integration strategy moves into three deliberate stages. Modules first then sell, then wafer and in cut. Each stage adds depth, reduces exposure and brings more for the value chain under our control. By the end of this roadmap, Vikram Solar will be fully integrated from INGUT 2 module. Let me now turn to battery energy storage. What I view as the next major growth frontier for Vikram Solar battery energy storage is policy anchored, margin, accretive and the piece that converts intermittent solar into dispatchable power.
As India’s grid deepens and as data center and AI LED load grows, storage is no longer optional infrastructure, it is non negotiable. Our target is 15 gigawatt of best capacity by FY30, positioning Vikram Solar as one of the leading largest integrated solar platforms and aligned with the national pathway I was referencing earlier. This completes our energy platform and it takes us from a product company to a complete energy solution provider delivering solar plus storage as dispatchable power. Vikram Solar is positioned to be the partner of choice for this transition.
In summary, FY26 has been a record year for the Indian solar sector and Vikram Solar has delivered alongside it. More importantly, FY26 is the year in which we make the decisions that will define our next decade on manufacturing, on integration, on leadership and on storage. The direction is clear, the team is in place. We remain fully focused on delivering for our customers, our partners and our dear shareholders. With that I now hand over to our CEO
Ranjan Jindal — Chief Financial Officer
Sameer. Over to you.
Gyanesh Chaudhary — Chairman and Managing Director
Thank you GC. Good morning everyone and thank you for joining us. FY26 has been a blockbuster year for Vikram Solar and Q4 is the clearest expression of the momentum we are carrying into FY27. We delivered our highest ever quarterly production of approximately 1 gigawatt, secured our highest ever order booking of approximately 1.9 gigawatts and recorded our highest ever quarterly revenue of over 1,450 crores. Each of this is a record in its own right. Together they tell a single story. Demand for our modules is accelerating, our execution is keeping pace and the operating leverage of the platform we have built is starting to show through in the numbers.
These results are not occurring in isolation. We are landing into a sector that is itself entering its strongest phase of structural growth and Vikram Solar is positioned by capacity, by technology and by provenance to capture a disproportionate share of it. What we are seeing this quarter is the early innings of a multi year trajectory of strong growth for this company. I will use my remarks to do three things. Lay out how we read the sector at this point of time in the cycle, walk you through where Vikram Solar stands within it and give you a concrete update on the projects and the technology choices that will define the next three years for this company.
Let me walk you through our view on the sector. FY26 is a watershed year, as I said, for the Indian solar manufacturing and I want to be specific about why. India added 45 gigawatt of solar in FY26, nearly double the 24 gigawatt target and roughly 87% higher than FY25. Cumulative installations now stand at 150 gigawatt or 53% of India’s 283 gigawatt non fossil base. The CAS National Grid Action Plan projects India’s peak demand rising from 289 gigawatt today to 459 gigawatt by FY36. Installed solar bays must scale from 150 gigawatt to 509 gigawatts, roughly three and a half times of today’s base battery energy storage, currently below 1 GWh must reach 320 GWh by FY35.
We have reached a pivotal maturity phase in the industry where policy certainty is aligning for vigorous push for backward integration. ALM and BCG continue to provide the necessary guardrails for domestic growth. The cell level mandate effective June 2026 is a critical milestone. It forces a shift from assembly to true manufacturing. Together with the wafer INGUT mandate, it forms a coherent industrial framework, one that rewards operational depth. The discussion around the headline module capacity announcements will be addressed by the imminent backward integration.
Given the barriers of capital access, technology execution capability and customer intimacy, and a regulatory framework that requires integration, only a few will sustain. Our working assumption is that the sector will stabilize around 80 to 100 gigawatt of nameplate fully integrated sustainable capacity held by a small group of serious full stack players and the total addressable market is heading towards a similar number. The three factors that matter most to an industrial company’s long term competitiveness are converging in our favor simultaneously growing domestic demand, local manufacturing depth, making integration a competitive mode rather than a cost.
And at the center of the opportunity sits a company that has built the hard things. 9.5 gigawatt of module manufacturing at scale and soon going to be ramping up to 15.5 gigawatt a technology platform which has transitioned well to N type, a well established customer base and a clear integration roadmap. Let me now give an update on our project execution. Our execution capability is best illustrated by Wallam, which is in our view one of the fastest greenfield module manufacturing builds of this scale in India.
We took the 5 gigawatt facility from ideation to commissioning in under nine months beyond the timeline the project delivered measurable operating gains, lower manpower intensity, faster line throughput, reduced effect rates from day one. Having set a nine month benchmark and delivered on it, we are now replicating the same playbook at Gangai Tonal at gangai total the 6 gigawatt module facility is in the final stage of completion with the first module out on track for June 2026 on the 9 gigawatt Topcom cell facility.
Civil and PEB works are well in advanced stage and on track for completion by September 2026 with clean room and MEP completion in October. Equipment installation is sequenced across October and November. The power infrastructure which Siemens is executing for us is scheduled for commissioning in November. Utilities build out following December. We anticipate the first sellout in December, early January, followed by a sequential commissioning through March 2027 and a subsequent production ramp up during Q2 FY28.
What separates Vikram Solar in this cycle is a deliberate technology first capital allocation philosophy. 20 years of execution through every meaningful technology pivot the industry has been through from multi crystalline to monopoly to entire top has taught us that the cost of choosing the wrong vintage of equipment is paid for the entire operating life of the asset. We have made our peace with that lesson and build our capex strategy around it. Concretely, we have placed orders for the CEN equipment all belonging to the latest top one plus generation with efficiency enablers built in from the outside to deliver a meaningful markup over the industry baseline.
And they translate directly into a higher watt peak per cell, more consistent module performance and better realizations over time. Our next 3 gigawatt of cell capacity will be of a superior technology with incremental efficiency in the subsequent year. In the closing I would like to give my outlook on where we will be in the next three years. Fast forward three years and the picture for me is straightforward. Vikram Solar will be operating its 6 gigawatt wafer in the facility which will scale up to 12 gigawatt by FY30.
It will be operating its 12 gigawatt cell facility, 15.5 gigawatt module capacity, fully integrated technology, current and one of a small handful of serious full stack manufacturers in India. Against this we have an industry that will have rationalized to roughly 80 to 100 gigawatts of sustaining capacity and a similar demand envelope. That is the company we are building and the records we have set this quarter are the first visible markers of that trajectory. You will see it take shape quarter by quarter as we go forward.
Thank you. And with this I will hand this over to Ranjan for a financial walkthrough. Ranjan. Thank
Ranjan Jindal — Chief Financial Officer
You Sameer and good morning
Gyanesh Chaudhary — Chairman and Managing Director
And thank you everyone for joining us. I’m accompanied by Reinal Shah from our investor relations team along with our Advisors GoIndia. Our Q4 and full year 26 earnings presentation has been uploaded on the exchanges. FY26 has been a strong year for Wickham Solar with a solid Q4 closing out a record full year. Every key metric be it revenue volumes. EBITDA has reached an all time high. During the year the company delivered record revenue of 4800 crores up by 40% year on year. This was supported by sales volume of 3.3 gigawatt, a 76% increase from 1.9 gigawatt the previous year.
Crossing the 3 gigawatt shipment mark in a single year is the first for Thecom Solar which places us among the leading Indian solar manufacturers. EBITDA for the year recorded at 917 crores with margins expanding to 19%, a 500 basis points increase over 14% in FY25. This reflects the operating leverage we have spoken about as our expanded capacity has come on. Still now profit after tax for the year was at 470 crores, a 10% fat margin. It is a meaningful milestone and one we can expect the platform to build on consistently from here.
Q4 was a strong quarter and a fitting close to the year. As Sandeep mentioned the we touched a 1 GW quarterly run rate for the first time providing a useful operating baseline going into FY27. Revenues for the quarter were at 1450 crores, up by 31% sequentially with EBITDA at 235 crores at a 16% margin and PAT at 110 crores. Our balance sheet is in a very strong position. The net working capital cycle has compressed from additive days in FY 25 to 44 days in FY 2 digits reflecting tighter receivable management, more disciplined inventory deployment and timely cash generation of the scale platform.
Importantly, the company carries no long term debt working capital. Net debt at just rupees 64 crores and a net to debt equity ratio of 0.03 paves the way for the next phase of our capex cycle. From a position of financial strength flexibility during the year we crossed a 10 gigawatt cumulative global model deployment. This represents over 25 million modules supplied supporting power generation for more than 5 million homes in India. We have scaled from 5 gigawatt to 10 gigawatt in just two years reflecting steady execution in such policy supportive environment.
Our order book stands at 8.2 gigawatt Eisenhower Smart 26 providing revenue visibility for the next fiscal. The mix is anchored by IPPS at 69%, CII at 13%, government and EPC at 18%. This balanced composition gives us good visibility, quality counterparties and the flexibility to direct production towards the most attractive segments as the cycle evolves. Through it all our business model held up exactly as designed long standing relationships that do not move on every price tick and that allowed us to hold blended realization steady.
Approximately 80% of our order book carries sell price pass through clauses insulating the PL from any input volatility and as volume scaled per watt overhead came down 16% on a full year basis. The result? Stable margins, a more diversified mix, a stronger operating leverage and a clear demonstration that we will build to grow through cycles not just in the benign months. In short, FY26 has delivered record growth, record profitability and a healthy balance sheet. A solid platform to engage with what is unfolding in the broader market.
Let me place these results in the context of the industry backdrop. FY26 has been by multiple measures the most consequential year in India’s solar industry and a defining year for Vikram Solar as well. The demand numbers tell their own story. Utility scale projects led the charge with a record 34 gigawatt of additions in FY26, the highest ever in a single year, while rooftop solar crossed a milestone of its own at 8.5 gigawatt powered by the rapid uptake of the PM Surya Kar Yujra together with the broader distributed segment under PM Kusum, India’s overall capacity built for the year reached unprecedented levels.
This is no longer an incremental growth, it is a structural reset of India’s energy architecture and is happening in reality now. FY26 spared the strongest demand environment India solar industry has ever seen with a few cyclical supply side visits, the kind of a cycle scaled integrated manufacture is built to absorb. We navigated it from a position of strength. Sell cost moved up during the year on higher silver prices and the removal of China’s export VAT rebate and the domestic manufacturing ecosystem continued to scale naturally bringing more competitive pricing dynamics.
These are familiar features of an industry in rapid expansion, the ones we have managed through Multiple cycles for FY27. From a market standpoint, demand continues to be anchored in non DCR in the near term while gradually transitioning towards dcr. Vikram Solar strategy is to participate meaningfully across both the segments going forward supported by a favorable multi year demand outlook. While our production will continue to be predominantly aligned to the non digital market in the current year, we have also proactively positioned ourselves for the emerging DCR opportunities including through a 2 gigawatt procurement agreement.
We see strong structural tailwinds going forward over 80 gigawatt of grandfather non DCR demand over the next two years along with approximately 28 gigawatts of live utility scale DCR tenders providing a robust Runway for the core utility segment and around 25 gigawatts of inherent DCR driven by C and I Kosum and rooftop segments. Put simply, the demand environment is the strongest and most durable we have seen. The policy framework is moving decisively in favor of integrated domestic manufacturers and Vikram Solar enters this phase with the order book, the customer franchise and the balance sheet to capture more than our fair share of it.
The natural question then is how we convert this once in a cycle opportunity into long term defensible market leadership. That is the lens through which our CAPEX strategy has been built and how our thinking has evolved over the last year. Let me lay out our integrated capacity roadmap on the module front. We are at 9.5 gigawatt today scaling to 15.5 once Gangaikundan 6 gigawatt module plant commissions. Our 9 gigawatt Topcon cell plant is on track for phased commissioning to Q for FY27 with the first cell rolling out in December 26th taking us to roughly 70% of backward integration.
A further three gauge cell is planned in upper 28 completing the cell stack and taking us to a full cell level integration. Moving on to the next phase of our integration journey of the 12 gigawatt Wafer and Ingal facility, we plan to add the first phase of 6 gigawatt at the existing site at Dengai Kondan, the investment of which was approved at the board meeting yesterday. With an expected outlay of approximately 3700 crores and commissioning in FY29. This addition turns Gangaikondan into a single integrated Solar Manufacturing Campus Ringod 2 module with zero transport cost between fabs, zero transit damages and mill inventory buffers between stages of the value chain.
The structural cost and quality advantage is significant. The journey for the 15 gigawatt tower best capacity has also kick started wherein a 5 GWh cell to pack facility is scheduled to commission by March 27 followed by the first phase of 7.5 GWh of battery cell manufacturing to commission in February 29 and the second phase in FY30. The aforesaid CapEx programs shall be met with a disciplined mix of debt and equity capital. Prudence is non negotiable. We are committed to operate within farm guardrails through the entire investment cycle maintaining interest and debt service coverage ratios above 2.5 and the net debt to equity below 1.5 even at the point of peak debt drawdown.
The phasing of capex, the sequencing of debt tranches and the buildup of internal materials have all been calibrated to stay comfortably within this limit. Growth ambition will not come at the cost of balance sheet receipt. To summarize, as we close out what has been historic year for the company and for the Indian solar industry, I want to leave you with four tier and durable takeaways from today’s call. The earnings base is real record revenue, record margins, double digit pack And a strong balance sheet with no long term debt.
The platform has already proved it can generate the cash to fund what comes next. Order book strength, repeat customer debt demand, visibility across segments and a consistent track record of operational execution is the foundation on which our cash flow projections rest. Secondly, in this environment, scale alone is no longer sufficient. Integration, technology alignment and execution and customer confidence are becoming the defining factors for long term competitiveness. VIPAM Solar focuses on all these pillars to ensure sustainable growth.
Thirdly, capex is financed through well structured diversified mix. The facing of actual spends and the sequencing of financing. Tranches are designed so that no single source, including internal accruals, bears a disproportionate burden in any given year. And fourthly, VIP Consoner is building the platform for long term market leadership from 12 megawatt in 2009 to 15.5 gigawatt of modules in Q1. 27. From a private company to a public listed company with an A grade profile. This is a company that has consistently turned ambitions into execution.
The investment we are making today is the foundation for a competitive position that will be defensible for the decade ahead. With that, we would be happy to take your questions. Thank you.
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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Please note, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow up question, please rejoin the queue.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sahil Seth from Ananth Ratty Institutional Equities. Please go ahead.
Sahil Sheth
Hi. Thank you for taking my question. So my first question would be on our 2 gigawatt domestic skill. We are procuring from international.
Operator
I’m sorry to interrupt. Sahil, your voice is muffled. Can you use your handset mode please?
Sahil Sheth
Am I audible now?
Operator
Yeah, please proceed. Thank you.
Sahil Sheth
My first question would be on the 2 gigawatt domestic cell. We are procuring from Jupiter International. From when can we start to see the DCR module starting roll out from our manufacturing facilities?
Gyanesh Chaudhary
The recommendation with Jupiter has been faced in such a manner that. I’m sorry to interrupt
Operator
Sir, so can you please repeat, you are not audible. Hello?
Gyanesh Chaudhary
Okay, am I audible now?
Operator
Yeah please. Thank you sir.
Gyanesh Chaudhary
Thank you. So the agreement we are signed for the procurement of cell has been faced in the manner to take care of the DCR demand which will kick in post the June 26 deadline and within FY27 the entire optic with the balloon offtake in the H2 is going to pan out.
Sahil Sheth
Okay, got it. And so my second question would be on the CAPEX front. Now that we have for a 9 gigawatt cell facility we are now procuring machinery direct from China versus our previous plan to import it from Thailand. What would be the CAPEX differential between those plants? And if you can pan out the apex schedule for FY27 and FY28.
Gyanesh Chaudhary
So there was a change in the plan as we discussed it was a 10% cost increase. So the overall cell capex for the 9 gigawatt would be at 5,400 crores. Of which as you know that since the commissioning is being done between December 26 to March 27, the deployment for the CAPEX will almost go in fully in the current year barring the last 10% installment which will switch on to FY28.
Sahil Sheth
Okay. And sir, for the best component, when would the CAPEX start?
Gyanesh Chaudhary
So the assembly for the 5 gigawatt tower would cost about 150 crores which will be spent majorly in the current year. On the cell manufacturing. We expect to start the construction somewhere in October 26th with the 24 months of construction period. So this financial year will majorly see the amount towards land and initial expenses which we don’t see more than 200 crores.
Sahil Sheth
Okay, got it sir. And sir, on the wafer ingot capex
Gyanesh Chaudhary
Again wafering in the commissioning of the first phase of 6 gigawatt which is planned to commission in March 28. The construction also is expected to start in June Q3. The same concept applies here. But here since we already have the land in place at gk, the initial spending for few advances to the supplier within 100 crores. Okay,
Sahil Sheth
And so what about the balance 6 gigawatts of the invert wafer? Would that incur a similar amount of capex?
Gyanesh Chaudhary
Yeah, so the thumb rule of about 600 crores per gigawatt applies there as well. We intend to take the board approval for that in the subsequent financial year.
Sahil Sheth
Okay, that was quite helpful. Thank you and all the best.
Operator
Thank you. Next question is from the line of Ankur Gulati from January Capital. Please go ahead. Ankur, your line is unmuted.
Ankur Gulati
Hello.
Operator
You are audible. Please proceed.
Ankur Gulati
All right, thanks. Quick Question, sir, some of your peers have been expanding across vertically or horizontally. So any thoughts on more forward integration or horizontal integration?
Gyanesh Chaudhary
Let me take that question. At this point of time, we are completely focused on backward integration on the module and expanding into bess. At this point of time, we are not thinking anything beyond that
Ankur Gulati
Answer. If you can double click on your best expansion plans please.
Gyanesh Chaudhary
As Ranjan mentioned, we are beginning with the best assembly and then we are going to backward integrate into cell manufacturing. He has already answered the question.
Unidentified Participant
All right. Okay. Thanks. All the best.
Operator
Thank you. Next question is from the line of Anuj Kapil from Taurus Mutual Fund. Please go ahead.
Anuj Kapil
Hello. Am I audible?
Operator
You are audible.
Anuj Kapil
Yeah. Thank you for the opportunity. So my question is, what was the sequential movement in key raw material cost during quarter four, especially for the cells, glass, EVA backsheet and aluminum frames? And second question is, what is the current inventory holding period for the critical raw materials?
Gyanesh Chaudhary
So Anuj, right?
Anuj Kapil
Yes.
Gyanesh Chaudhary
Yeah. We experienced some increase in the crude oil which impacted the EVA cost. The aluminum frame cost have also gone up with the aluminum cost per ton going from 3,100 to per ton to 3,600. But that was partly compensated with the corresponding fall in sale prices. So the current quarter does not see much impact of this increase. On the second part with the Vallam facility coming in. Yes. We have increased the inventory levels. As a company, we do maintain an inventory of 30 days at the plant level with about 60 days at the windows and on water level.
So that is what the overall cycle we follow. And I also mentioned in my speech that on the overall working capital cycle, we have brought it down to 44 days which is net of the credits available from the payments. Okay.
Anuj Kapil
Thank you sir.
Operator
Thank you. Next question is from the line of Kaushik Doshi from ICICI Securities. Please go ahead.
Kaushik Doshi
Yeah. My first question is, does the 1.9 gigawatt ordering flow include the distribution part?
Gyanesh Chaudhary
The order inflow does not include distribution. We have taken that out of order booking format.
Kaushik Doshi
Okay, answer. Why were the distribution orders removed from the order book?
Gyanesh Chaudhary
See, most of our distribution was in non DCR segment and we were running a recurring order book with them. That was our in meant with the distributors. Now since it is moving to BCR and we are currently this year we are going to operate on our outsourced cell supplies. So we have changed the format to, you know, spot buying by distributors instead of a rendering order book.
Kaushik Doshi
Okay, so got it. And so my next question is 6 gigawatt capacity addition is not done. Yet if you could highlight the reason behind that.
Gyanesh Chaudhary
Sorry, we could not get you. Can you please repeat
Kaushik Doshi
My question was 6 gigawatt capacity. Addition is not done yet. If you could highlight the reason behind that.
Gyanesh Chaudhary
Yeah, it’s intact. So it continues to commission within June and the schedule is intact.
Kaushik Doshi
Okay, sir. Got it. I will get the tool line. Thank you.
Operator
Thank you. Next question is from the line of Akshay from ubs. Please go ahead.
Akshay
Hi sir. Thank you for the question and congratulations on strong ramp up in production order book and healthy cash translation through the year. My question is related to bass. In presentation you have highlighted DCI mandate for bass targeting 60% localization. So in your view how would policy will target this? And how much the cell cost for BSS bom. And how much localization can be achieved just through assembly including containers, electronics, PDS etc. That’s the question, sir.
Sameer Nagpal
Akshay, we are extremely optimistic on the policy mandate or best Considering it is going to be an integral part of their grid stability mandate. With solar becoming as large as an installed base as it is today. These are indicated numbers given by CEA and the Ministry of Heavy Industries. We are. In addition to the localization mandate we are also looking at and anticipating a similar policy. On approved list of battery manufacturers there is already an advanced chemistry PLI. On the demand side the government has done enough.
Laid out an outlay of about 80,000 crores on the viability gap. Funding through which we already have a pipeline of best tenders to the extent of about 100 GWh already in various RFP as well as submission stage. So the next two to three years we will see an extremely positive policy movement and the economics of the cell and upstream components will pan out according to.
Akshay
Got it. Thank you. Yeah, that’s all. Thank you.
Operator
Thank you. Next question is from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahai
Yeah, thank you for opportunity and many congratulations on a very good set of numbers on Topline. My question first is on the gross margin and there, you know there is a contraction. We had a scene and also we are seeing that the model realization has declined around 13% in the IMF terms. So can you please give some more color. Like how much is the realization contraction and the RM inflation how to segregate in the gross margin contraction and secondly, where you will see this realization to be in the coming year.
Gyanesh Chaudhary
So Sameer, let me first give you a comparison as to what Q3 and Q4 on a PER wattpic basis appeared to be in fact the relations have actually gone up in Q4 by about 60 pesos. Whereas the cost, as I told in my previous question, by virtue of the the impact of the war coming in, the cost actually went up by 80 paise. So that 20 paise additional incremental cost has dented the per unit EBITDA to that extent. And hence you could see a slight what is a percentage impact on the EBITDA margin level. But as we have already mentioned in our remarks earlier, this business we focus on a per EBITDA basis and we see some more rationalization to come in, in the quarters to come.
But with the scale coming in, the absolute numbers are expected to increase.
Praveen Sahai
Okay, second question is related to the 2 gigawatt procurement. Do you have any, you know, any, anything finalized on the pricing or the spread to be shared with the company?
Gyanesh Chaudhary
So this is something which it will be advised for us to share the commercials. But I can only assure you that the commercials have been arranged such that the EBITDA per what big expectation of the company is maintained.
Praveen Sahai
Okay. And on the order book side 1 GW on the distribution 1.5 on the CNI. And I understand because of this the non BCR to the maybe a VCR. So how you are you know the confident of gaining back these numbers. And also if you can give some clarification on point 6 gigawatt of the US order which so where we we can see these, these numbers to come in basically distribution in the cni.
Gyanesh Chaudhary
See as the mandate moves to DCR the large chunk of non dcr all of the non DCR distribution will move to DCR because of this policy shift. Same thing is or similar is happening in cni. So that is the reason why we have removed the rolling 1 gigawatt order book which we are carrying from distribution. On the CNH side there is a large order book which we have is switching to DCR and it has gone into renegotiation. So we want to optimize our margins on the DCR portfolio because of the limited supply we have.
And that is why we have taken them out of our current order book. Those are under renegotiations and if they fit our margin profile we will account them as fresh bookings. So that’s the approach we have taken.
Sameer Nagpal
And to add to that distribution a very stronghold and an area of focus for us. As you see we have expanded our distribution network to about 110 +/550 of dealers and system integrators who are exclusive to Vikram Solar. So Even with non BCR we did about 20% of our volumes last year through the distribution channel and that number is only going to multiply now that we have the procurement deal for the dcr. So it is just a way of reporting that has changed. As to your export question, that particular project in question was deemed unviable by the IPP because of some set of certain incentives in the US market for the IPP itself which is why we have removed it from the order book.
Praveen Sahai
Okay, last one clarification. Is there any DCR volume in this quarter?
Gyanesh Chaudhary
So hardly any volume. So the main occupancy has been on the DCR non DCR front FY27 as explained. We’ll see the DCR optic to come in.
Praveen Sahai
Thank you for giving me opportunity to ask question and all the best.
Operator
Thank you. Next question is from the line of Pala Muralikrishna from Oman Investments Advisor. Please go ahead.
Unidentified Participant
Hi, good morning. The question is regarding the debt level earlier. We have planned to have a 3,500 gross debt level by the end of FY27. I think by seeing the investor presentation we are only sticking to cell facility by even FY20. So. So by effect on date end also will be similar level debt level side.
Gyanesh Chaudhary
You’d like to repeat the question for us please?
Unidentified Participant
Yes, my question is regarding the debt levels earlier. We had a plan of 2,500 crore state levels by the end of FY27. So I think by the because the BESS and other budgets are postponed to FY29. So by end of FY28 it’s also will be at the similar level of debt level, right?
Gyanesh Chaudhary
Yeah. So when we spoke about a debt level of 3500 the plan was to have entire 12 gigahertz of cell in place which we are now placed into two of nine plus three. But as we also discussed FY27 will see some outflow for the best in the referring business which mainly will be from the internal accruals. So the closing date for 31st March 27th can therefore be considered to be 3200 crores
Unidentified Participant
By the end of FY28. What could be the figure?
Gyanesh Chaudhary
So the CAPEX phase for the wafering that will come in more importantly there and we expect that to remain at 6500. 6600.
Unidentified Participant
The question is because we are incurring around 150 crores of interest cost. So by 27 outflow would be 500 crores and by 2018 it could be 800 crores. So the question is the top line will grow for the next two years. So that’s will also grow accordingly. But the bottom line could be staggered around this finite course level. So because of this interest outflow, is it a right assumption?
Gyanesh Chaudhary
That would be a forward looking statement. But I can only guide you that in the capex period the interest for a project is capitalized and it’s not charged to the pl. So as you see the commissioning of paperinger to come in semi 29th and the sell on say March 27th, the PL will have the impact of the component for that date of an asset which is capitalized. Will I answer that?
Unidentified Participant
Yeah,
Gyanesh Chaudhary
Thanks.
Unidentified Participant
So on the order book, secondly on order books fund so we are negotiation of converting from non DCR to DCR. So how would this mix could be in FY27 by the end of FY27 and FY28?
Gyanesh Chaudhary
Can you say that again please?
Unidentified Participant
Yeah. Order book on the order book fund. So we are negotiating some non DCR orders to DCR. So how do you see this mix between DCR and non DCR? By FY27 and FY 2018
Gyanesh Chaudhary
The non DCR segment will operate in those grandfather projects of 87 gigawatt. So depending on how they get finished or get executed over next two years that will determine the non DCR order book rest everything will move to dcr.
Operator
Thank you. Next question is from the line of Deepak Perswani from Swan Investments. Please go ahead.
Ranjan Jindal
Hi, good morning and congratulations for good set of numbers to check it out since there has been a ramp up in terms of the capacity for the module to 9.5 and eventually moving to the 15.5 over the next 3, 4 months. If I were to look into the production front year as a whole, we should be in terms of the production we would be close to 7.5 or 8 gigawatt versus 3.2 gigawatt this year. Now in this context, if you can give us broader sense, what would be our sales strategy in this context? Because if I were to look into the current order book, currently we have a 8 gigawatt order book.
What would be the execution out of this in this year and what would be the incremental sales strategy we would be looking out.
Gyanesh Chaudhary
Okay, thanks Deepak. So I’ll just try to give us to what the overall plan for FY27 is and then we can see whether the question has been answered. FY27 collectively, with the 6 gigawatt module coming is expected to produce collectively for the company as a whole some 8 gigawatt of which as we discussed 2 gigawatt will be on the DCR front and the balance 6 on the non DCR. So we have an order book of 8.2 as on 31st March 26th of which 7.2 is domestic of which 6 goes out as we discussed which therefore leaves us with an order book of 1.2 with a whole year leftover part to take share of the 87 gigawatt grandfathered which Sami highlighted in the previous question to then build up for some volumes for FY28 as well.
Ranjan Jindal
Okay, thank you and wish you all the best.
Operator
Thank you. Next question is from the line of Bhavna Jain from Awagba Capital Advisors. Please go ahead.
Unidentified Participant
Am I audible?
Operator
Yes, you are.
Unidentified Participant
Yeah. Thank you for taking my question. First of all, congratulations for the good set of numbers. I have a question on the margin front just repeating what the previous question participant asked. What is the EBITDA per what we are making as of now where we don’t have any DCR module?
Gyanesh Chaudhary
So As I discussed quarter four experienced number of 2.35. With the with the PCR mandate getting stipulated strictly from say June 26, we are encountering some optimization on the EBITDA per watpic further. So we therefore believe that for the year as a whole, the non DCR volume should deliver an EBITDA for what we get 1.75 to 2 rupees float average on an average basis.
Unidentified Participant
Okay. And after the integration of cells, how much is our expectation it will go to?
Gyanesh Chaudhary
So we believe that 1.75 stroke 2 at least for FY28 should deliver about 5 rupees per watt pick which presently is at 6. So with more of capabilities coming in, we expect that to tilt down by one more rupee and F by 2028.
Unidentified Participant
Okay, by 28 we can expect that. I mean you’re expecting all that even after the industry over capacity or the insufficient cell capacity makes it up, including all that. Right. I mean I hope that all factors are considered or we expect something.
Gyanesh Chaudhary
Yeah. Sameer in his opening remarks highlighted that on a country level with full integration with the top 1520 players who are going to rule the game, what would be the country level supply and the demand? Post that on a stabilized basis we think that revenues net EBITDA per what we can continue.
Unidentified Participant
Okay, sure. Thanks for that answer. There is one question about the utilization level. So at least by FY27 after the module and the best or all those whatever we are completing by FY27 what is the utilization level we think we’ll achieve
Sameer Nagpal
On an average? For module we expect on a nameplate basis about 65% to 70% to be a standard utilization and for cell that number is higher between 70 to 75% on nameplate. I’m not talking about effective the clear on the nameplate.
Unidentified Participant
Okay, okay, thanks. Just one last question Just curious about this technology that we are using for the cell part I can Right now all the competitors that we see are applying the HJT technology for the manufacturing and we are adopting the XBC1 first question is, I mean do we see any profitability improvement by choosing this new platform? Second is do we expect higher capex for a new technology? Both of them
Sameer Nagpal
Correct. The industry dominant technology currently is NTOCON in both cells as well as module. AJT is the technology used by one of the larger peers with a limited capacity and this is true for global average as well. What we are setting up currently in our first phase of self plant of 9 gigawatt is also n Topcom but it’s a topcon class with incremental couple of processes which gives a leg up in efficiency over the industry baseline currently established at 25.2% so with the use of these processes what it does is takes the efficiency level up to say 25.4 or 25.5% which basically helps us create more wattage in modules and hence translates to better per watt realization.
Currently our capex cost is also very in line with the industry. The numbers happen public.
Unidentified Participant
Great. Just last question if I can squeeze in what is the company’s expected silver consumption reduction? The future roadmap, you know, because that’s certain an area of concern which most players have been talking about.
Sameer Nagpal
Right? So like I mentioned, the topcon plus cell setup that we are establishing uses a process called which anyway reduces the silver consumption because of the thinner silver finger going ahead on our roadmap. In our R and D and applied research we have projects which helps us replace or reduce silver consumption but it’s too soon to tell. There are various technologies being researched about at a global level in established labs that we have collaboration with but at a commercial scale these are the couple of processes that have helped us reduce the silver consumption for the industry as a whole.
Unidentified Participant
Great, thank you. Thank you so much for all the answers. Thank you,
Operator
Thank you. Next question is from the line of Dhruv Machal from HDFC amc. Please go ahead.
Unidentified Participant
Yes sir. Thank you so much. I just had a question that until the utility scale DCR norms, you know, practically start kicking, kicking in, which in my expectation probably sometime in FY28 or some early FY29 where your new cell capacity is well timed to, you know, probably commission. Until that time, just the CNI market, DCR and the rooftop DCR market probably. And versus the cell capacity production which is there available in India, it seems the market is relatively well balanced or to some degree oversupplied D cell market.
So in that context, given your brand power, given your scale and reach, I’m wondering, are you not able to optimize better on this relatively well balanced DCR cell market to use your modules and sell more? I’m just trying to understand how is this working out?
Sameer Nagpal
Sure. So with the enforcement in June 26, we see a very staggered buildup of DCR demand. Last year you saw about 10 gigawatt consumption DCR. This year with 5 to 6 gigawatt of crystal, 7 to 8 of CM spirit and another 7 to 8 for CNI. For the H2, we expect the TCR demand to be about 20 to 25 gigawatt. Now juxtapose that against the existing cell phase, that is a nameplate which is currently in a ramp up and stabilization phase and hence the output given by all of the large players is relatively lower than the nameplate number.
So even in fiscal 27 and fiscal 28, where you will have another set of utility execution demand coming up, that will have a much larger demand number versus what the supply could provide even at that point, even after newer capacities that will be set up through this year. So yes, we are well placed with this staggered demand setup.
Unidentified Participant
Okay. Yeah,
Gyanesh Chaudhary
We have not been participating in the Team Surya here because we did not have DCR so far. So the flip we are doing now is that our distribution channel is now very robust, very well established, we have well penetrated and it has expanded further this year. We will be able to use the availability of DCR cells for this segment, which also gives us better margins. And that is the reason you have seen some of the changes we have done.
Ankur Gulati
So
Gyanesh Chaudhary
We will be able to leverage our brand, which has been established very well over the years, to take a good share in that sector.
Unidentified Participant
Sure, sir, got it. This is helpful. Thank you so much and all the best.
Operator
Thank you. Next question is from the line of Niyati Dada from Eloy’s Financial Services. Please go ahead.
Unidentified Participant
Yes, can you hear me?
Operator
Yes, you are. Hello.
Unidentified Participant
Yeah, so I just wanted to know how is the company Planning to handle FY27 with reduced margins and no captive selling. So like, what are your views on that?
Sameer Nagpal
The execution Plan as the CFO mentioned would be 75% of non DCR which will yield about 1.75 to 2 rupees per watt. We already have a procurement deal with a large cell supplier and that segment of 25% of the execution plan is also going to yield us a little better between two to two and a half rupees per watt. And hence these steady numbers at the scale that people operate in will yield phenomenal growth over the previous fiscal.
Unidentified Participant
Okay, okay. I’m
Operator
Sorry to interrupt. You’re not audible, ma’. Am.
Unidentified Participant
Hello.
Operator
Yes, right now you’re audible. Proceed please.
Unidentified Participant
Yes, so I just wanted to know what differentiates Vikram Solar from other big peers in the sector.
Gyanesh Chaudhary
See, as you we were saying over the last 20 years we are one of the initial players in the segment and our deep understanding and deep knowledge of the industry we have translated into putting the right capacities and the right technologies into our products. So that is one differentiator. And I think our customer intimacy is very high. Our brand’s reliability and its quality perception is very high. So those differentiators along with all the backward integration we are doing, they will act as key enablers for us.
Unidentified Participant
Okay. And lastly, I wanted to know that even though we are doing a debt reduction, so why has been an increase in the interest expense sequentially?
Gyanesh Chaudhary
So the term loan debt has come down, the equity debt continues to remain almost at the same level. But the only increase in Q4 financial cost has come in because of the lease rental getting debited. With Vallam facility coming on track, which was on an equipment lease finance basis. And with Vallam coming in, the working capital deployment has been a bit increased on account of inventory. So that has led to have a partial increase in the finance cost as well.
Unidentified Participant
Okay. All right, thank you so much.
Operator
Thank you. Next question is from the line of Nadesha from ICICI securities. Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my question. So Initially we had 5 gigawatt more model capacity coming in, 2 gigawatt India and 3 gigawatt in US. My understanding would be that these capacities have been scrapped to focus on backward integration. But specifically on the US Is there anything long term in the environment that has deterred you from putting capacity there?
Sameer Nagpal
Yeah, nitin, for the U.S. Like we mentioned in the earlier call as well, we’ve done the groundwork with cp. The domestic environment and the ongoing high requirement of feasible supply down to the court level is so Stringent as well as the availability of skill power in US domestic front is a challenge. Which is why India as an opportunity looks infinitely more attractive. Which is why we are focusing all of the capital as well as management bandwidth on scaling our existing business in India and backward integrating.
Nidhi Shah
Also another question on the us Since November, India’s exports to the US be it cellular modules had completely zeroed out. We currently have about 1 gigawatt of orders from the US or exports in general. How secure are these orders? Can we expect these orders to be executed or is there a chance that these could be erased from the order book? And if you know execution is at play, then where are we procuring these cells from? What are the countries that we’re looking at procuring from?
Sameer Nagpal
You’re right, Nidhi. The exports from the Indian domain to the US have slimmed to almost negligible level. The current export order book that we carry is with reputed IPV that we’ve worked in the past. These are long term conversations and we still believe we will be able to execute them. We are working on getting a traceable compliant supply chain which does not have any prohibitive tariffs or duties applied to it. So the countries that we’re looking at are in North Africa which currently have some cell capacity that does not attract too much of tariff.
Nidhi Shah
And are we looking at any other countries to export?
Sameer Nagpal
Yes, absolutely. We are exploring EU as a market. There are some non Chinese supply tenders for a couple of countries that are ongoing. We are also focusing on Australia and Middle East. The conversations are very encouraging.
Nidhi Shah
All right, thank you. And lastly. I’m sorry to interrupt.
Operator
Nidhi, please rejoin the queue. We are other participants waiting for that. Yeah, thank you. Ladies and gentlemen, kindly restrict yourselves to one question only. We will take our next question from the line of dhawal from Ariza Strategies. Please go ahead.
Unidentified Participant
Hello. Hi, good morning. So I have one question.
Operator
Yes, you are. Hello.
Unidentified Participant
So I had one question. With the. With this level of growth, can we see the margin at the growing rate or the same?
Operator
Ladies and gentlemen, the line from management has been disconnected. Please hold while we get them back. Ladies and gentlemen, the line from management has been connected again. Over to you, sir.
Unidentified Participant
Hello. Hi. I’m audible.
Operator
Yes, you are audible.
Unidentified Participant
I have one question. Like with this level of growth, can we. What’s the growth guidance that you will give it to the investors?
Gyanesh Chaudhary
So Nagan, as we saw that FY26 delivered an 84% jump on the EBITDA. With the new facility coming in, we plan to deliver approximately 7.5 to 8 gigawatts in FY27 to deliver an EBITDA about 74% more than what we have delivered in FY26. Which therefore works out to a range of 1500 to 1600 cores.
Unidentified Participant
Okay. And so what’s up?
Operator
I’m sorry to interrupt. Dhaval, one question at a time please. Thank you. Next question is from the line of Shashank Jha, an individual investor. Please go ahead.
Kaushik Doshi
Hello, Shashank,
Operator
Your line is unmuted. Yeah. Please proceed. Thank you.
Kaushik Doshi
Yes sir, my question is regarding battery. So I have understood one thing that for 1 megawatt AC power you need 1.5 to 1.6kW solar module DCAP conversion. So this is going to happen with this battery also. So what will be the multiplication factor here if it is there?
Sameer Nagpal
The battery requirement depends on what setup it is. If you see the current tender requirement, storage ranges from two hours to six hours. For a CNI or a data center setup. It could when possibly be a round the clock requirement with higher storage built in. So it is very hard to put down a multiplier. But on an average this is the storage requirement Visa we. So I mean if I say 80 gigawatt of solar with storage about 320 gigawatt hours with 4 hours of storage will be the DC block of best utilized.
Operator
Thank you. Ladies and gentlemen, due to time constraint we will take our last question from the line of Vishad Kabda from Holani Venture Capital Fund. Please go ahead.
Kaushik Doshi
Good morning sir. First of all I would like to congratulate for the results. So my question is since silicon wafers and silver are key input for your business. How are rising raw material costs, especially silver impacting your overall cost structure and to what extent you are able to pass these increase on to customers.
Gyanesh Chaudhary
So that is too long a short as on date. As I believed that the MSAs we assigned with our customers to allow us to pass through the cost of sale and the dollar appreciation which is to the extent of 50% going forward with cell coming in. With wafering at coming in we will have to see as to how the overall market pans out. Obviously we cannot be setting the terms in isolation. So I can only give that much information as on date.
Operator
Thank you. That was the last question for today. I now hand the conference over to the management for closing comments.
Gyanesh Chaudhary
Okay, thank you everyone for joining us today and for your insightful questions. Hope we were able to address all of them comprehensively. We remain committed to keep you all informed. And as we execute against the milestones they outlined for any further queries, if they remain unanswered, please feel free to reach us. Thank you very much.
Operator
Thank you very much. On behalf of Go India Advisors, that concludes Vikram Solarus Conference. Thank you all for joining us today, and you may not disconnect your lines.