Waaree Energies Ltd (NSE: WAAREEENER) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Swami Pooja — Senior Associate, Investors Relations
Amit Paithankar — Chief Executive Officer
Sonal Shrivastava — Chief Financial Officer
Abhishek Pareek — Head of Finance
Analysts:
Unidentified Participant
Akshay Lalwani — Analyst
Sahil Sheth — Analyst
Akshay Mane — Analyst
Aman Jain — Analyst
Nitin Arora — Analyst
Sarang Joglekar — Analyst
Vikram Sharma — Analyst
Bhaskar Chakraborty — Analyst
Chirag Khasgiwala — Analyst
Aashish Upganlawar — Analyst
Karan Sanwal — Analyst
Donatella — Analyst
Akshay Lalwani — Analyst
Deekshant Boolchandani — Analyst
Jagdish Sharma — Analyst
Mitesh Jain — Analyst
Sarang Joglekar — Analyst
Presentation:
operator
Ram Sam. It. It. It. It. Understanding the. Ladies and gentlemen, good day and welcome to the Wari Energies Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Pooja Swami from MUFG in Time India Private Limited. Thank you. And over to you ma’. Am.
Swami Pooja — Senior Associate, Investors Relations
Thank you. Huda. Good evening everyone and welcome to the Q1FY26 earnings call of Wari Energies Limited. From the management today we have with us Mr. Amit Paithankar full time Director and CEO Ms. Sonar Srivastava, Chief Financial Officer. Mr. Abhishek Pari Group Head Finance, Mr. Neeraj Vilayak, Vice President Investor Relations and Mr. Rohit Vade, General Manager, Investor Relations. Before we proceed with this call I would like to give a small disclaimer that this conference call may contain a certain forward looking statement which are based on beliefs, opinions and expectations of the company as as of date.
A detailed disclaimer has also been given on the company’s investor presentation which has been uploaded on the stock exchanges. I hope all you all had a chance to go through the same. Now I would like to hand over the call to Mr. Amit Paithankar for his opening remarks. Over to you sir.
Amit Paithankar — Chief Executive Officer
Thank you very much Pooja. Good evening ladies and gentlemen. Thank you for giving us your valuable time and joining the Q1 FY26 earnings call of Vari Energies Limited. I will be referring to the presentation that has been uploaded on the stock exchanges. If you have the presentation handy it will be helpful to follow along with the call today. Let me start by speaking about our integrated giga facility that that you are seeing on the COVID page of our presentation. This is the largest solar giga complex in the country. We currently have 10 gigawatts of modern module manufacturing capacity here and 5.4 gigawatts of solar cell capacity in close vicinity of this gigafactory.
We are setting up four new facilities. The first a 10 gigawatt solar cell. Second 300 megawatt hydrogen electrolyzer. Third 3.5 gigawatt hour battery energy storage systems and fourth 3 gigawatt inverters. The work on all of these facilities is progressing as per schedule on slide 3. I am pleased to state that we have reported yet another stellar quarter with A revenue growth of 31% year on year and an EBITDA growth of 83% year on year. A PAT growth of 93% year on year. All of these numbers are record breaking. On slide 4. A standout highlight of this quarter is 64% increase in production reaching 2.3 gigawatts, our highest ever quarterly output.
Our order pipeline remains extremely robust. Our order book stands at 25 gigawatts which is equivalent to 49,000 crores of confirmed orders and our pipeline exceeds 100 gigawatts. As we look ahead, our endeavor is to consistently maintain a healthy order book providing a clear pathway of growth for the coming quarters and years. From a geography perspective, the mix remains stable with roughly 41% of our order book from India and the balance from overseas markets. Revenue split this quarter is 1/3 International and 2/3 Domestic. Moving on to slide 6, the domestic growth remains strong backed by a favorable policy environment.
In Q1 alone, India added 10.6 GW of solar capacity as compared to a total of 24 GW for the whole of last year. This clearly demonstrates the accelerating momentum in India. The ALMM policy on solar cells is now notified with the deadline of June 1, 2026. This policy clarity will further drive domestic manufacturing job creation and technology development in the U.S. the momentum continues with Vadi securing 2.23 gigawatts of new orders during the last quarter. Growth here is driven by three fundamental drivers. The first, the expansion of AI related data centers. Second, reshoring of manufacturing into the US demanding more power and third, rapid electrification transportation.
The 45x tax credits continue to be applicable. We are closely monitoring the developments around anti dumping investigation initiated by the US authorities. Our strong US manufacturing footprint is a key strategic asset. It allows us to navigate any policy shifts effectively. We believe the demand outlook both in India and in the US remains secular and long term in nature. This, ladies and gentlemen is a multi decadal opportunity. Within wari, we have made some strategic realignments. We are now setting up a 6 gigawatt module and cell facility in Gujarat and Ingadwether facility in Maharashtra. All these facilities will be operational by FY27.
By the end of this calendar year, 6 gigawatt module plant in Gujarat will be ready. We are also happy to share that our board has approved additional outlay of 2754crore rupees for expansion of cell ingot wafer capacity by 4 gigawatts each at their respective locations. Thus the new capacity for cell as well as ingots and wafers will sum up to 10 gigawatts each. On slide 8 let us move to something I find especially important. How are we evolving body energies to a broader energy transition company? We have about 40 to 45% wallet share in our core solar business right now.
By expanding into adjacencies like power infrastructure, hydrogen electrolyzers, inverters and battery energy storage systems we will be able to offer a full stack energy solution to our customers. We aim to be one stop solution for our clients energy transition needs. Moving on to Slide 9 let me sum up our overall capacity by FY27. By then we will have module capacity of 26 gigawatts, cell capacity of 16 gigawatts and ingots and wafers capacity of 10 gigawatts. Moving on to Slide 10 to the other verticals that we have Battery energy storage system 3.5 GWh capacities coming online in FY27 the facility is under construction at Rohla near Chikri Giga campus in Gujarat Inverters.
We are setting up 3 gigawatt per annum manufacturing facility which is going to be operational within this fiscal. Hydrogen electrolyzers. A 300 megawatt plant is under construction and will be operational in FY27. Renewable power infrastructure. Our discussions with Enel Green Power are ongoing. The board has approved equity outlay of rupees 650 crores and we have signed PPAs worth 170 megawatts. We are also pursuing connectivity of the order of 5 gigawatts with this. Ladies and gentlemen, I now hand over the call to Sonal, our CFO for her remarks.
Sonal Shrivastava — Chief Financial Officer
Thank you Amit and a very good evening to everyone and welcome to the earnings call. Of course it gives me great pleasure and as you can see the company has reported another stellar quarter of strong performance which is a strong reflection of our team’s commitment, resilience and strategic focus. And we also remain committed to long term value unlocking across every segment that we have just spoken about which Amit. Has just briefed about. Let me walk you again through the consolidated performance for the quarter we have reported revenues of Rupees 4,597 crores for the quarter reflecting a robust year on year growth of 31.5%. EBITDA for Q1. FY26 came in at Rupees 11.69crores reflecting again a strong growth of 82.83percent compared to the same quarter previous year. Our EBITDA margin for the quarter stood at 25.4% and which also has an expansion of over 700 basis points. Profit after tax stood at 773 crores in Q1FY26 compared to rupees 400 crores thereabouts in last year. Of course again registering an impressive growth of about 93%.
Thank you. Now I hand it back to Amit.
Amit Paithankar — Chief Executive Officer
Thank you very much. Sonal. Moving on to the slide 14. I would like to wrap up this stellar quarter for all of us. It’s been record breaking in many ways. Highest ever production of 2.3 gigawatts. Highest ever revenue of rupees 4597 crores. Highest ever EBITDA of rupees 1169 crores. And highest ever PAT of rupees 773 crores. I need to take a deep breath. Strong order book giving us visibility and confidence to meet our guidance. All of our key projects, modules, cells, ingots and wafers, hydrogen, electrolyzers, battery energy storage systems and inverters are on track. In six months time we will reach 25 gigawatts of model manufacturing capacity.
And we are most solidly on track to deliver rupees 5,500 to rupees 6,000 crore of our EBITDA guidance that we gave at the beginning of this fiscal. Ladies and gentlemen, thank you very much for the patient listening. I will now hand it over to Pooja to coordinate the question and answer session.
Swami Pooja — Senior Associate, Investors Relations
Thank you sir for your remarks. Huda, I would request you to open the session for question and answers now.
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 attached tone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akshay from Pinakal Wealth Management. Please go ahead.
Akshay Lalwani
Congratulations to VARI team for the great set of numbers. My question is regarding the contribution from Indosolar, the company that you. That you picked up from ibc. So I’m looking for what is the path ahead for the subsidiary in terms of guidance or capacity expansion? And where do you see this company going forward?
Amit Paithankar
So Akshay, I will talk a little bit broadly about Indosolar and our plans. Indosolar fits squarely in our broader expansion plans. The primary purpose we use it for is module Manufacturing it is located on in the greater Noida area. And that really helps us reaching fast to our customers which are located in the north. From the capacity perspective. I will request Sonal to fill in.
Sonal Shrivastava
Yes. As you know, Indosolar has a total capacity of about 1.3 gigawatts. And it actually commenced operations in Q2 of FY25. And since then we have been ramping up very well. And this quarter in the results also you have seen we came in at about 195 crores of revenue and EBITDA was about roughly 54 crores. So we continue our ramp up there and the efficiency also will continue as we go forward. We are looking at some good orders coming into Indo Solar Solar. So all in all a good set of projections going forward. Capacity expansion as and when we go to the board, we will update you on that.
Akshay Lalwani
Okay. And any guidance for the quarter for the year?
Amit Paithankar
Sir, Combined guidance. I’m sorry, It’s a combined guidance for Wadi Energies Ltd. Which is 5,500 to 6,000 crores of EBITDA as we talked about.
Akshay Lalwani
Okay, thank you.
operator
Thank you. The next question is from the line of Sahil Seth from Anandrati Institutional Equities. Please go ahead.
Sahil Sheth
Am I audible?
Sonal Shrivastava
Yes, please.
operator
Yes.
Sahil Sheth
Yeah. Congratulations on the great set of numbers. I just had two quick questions. What is our current mix of our manufacturing capacities with topcon and Monopurk? That is one. And how do you see that going forward in the next two years? And with the input prices increase in China, how is that going to impact India? If you could throw some light on this.
Amit Paithankar
Great. Well thank you very much Sahil for a very, very good question. So our current mix continues to veer more and more towards topcon as more and more customers want to have topcon panels. So over a period of time we see topcon being dominant. In the next, I would say maybe three to seven months time we will actually see monoperque actually reducing. We will have a certain amount of our older orders where we will need to give monoper. But clearly we will. But that will be in minority from the perspective of input costs from China.
Over a period of time we have actually seen continuous movement. Of course it’s been one way downward most of the times. But we are now seeing an upward trend that will over a period of time have an impact on our numbers. And we will have to have revision of our prices on the basis of that. But when it comes to that we will come back to it and we’ll talk about it. And I Would request Sonal to add on to that.
Sonal Shrivastava
So I think I’ve also mentioned this in my previous calls. The endeavor really at our level here is to manage the gross margins. We manage the gross margins, which is the input costs and how it kind of marries in with the prices. So we both look at both in tandem and that’s what we are looking at. So because prices we’ve seen goes up or goes down, input cost of material also goes up or goes down. But it’s the gross margins that we manage, which is essentially how we manage contracts as well as how we sort of back up our purchases against the fixed contracts.
Sahil Sheth
Got it, got it. Thank you. Is there a way to quantify how much is topcon and how much is monopoc in our current capacity?
Amit Paithankar
We do not have the exact numbers. We will not have the exact numbers at our beck and call right now, but we could send those out to you.
Sahil Sheth
Okay, thank you so much. One last follow up question, if I may. Is there any DCR requirement mandate for any specific technology going forward? With the ALM2 coming in from June.
Amit Paithankar
26, so to my understanding, there is no technology requirement for dcr. There will be a push towards topcon simply because it’s going to be more efficient.
Sahil Sheth
Okay, what kind of apex do we see if we have to shift from Monopoly to topcon? If you could throw some light on that.
Amit Paithankar
So this is an incremental capex. Because most of Monopol capacity is already used, I would say depending on different types of configurations that various folks would have taken, there was an incremental anywhere between 15 to 20% of CapEx that one would need to put in. Okay.
Sahil Sheth
Okay, got it. I’ll come back in the queue for more questions. Thank you so much.
operator
Thank you. The next question is from the line of Akshay Mane from Nuama Wealth Management. Please go ahead.
Akshay Mane
Hi. Congratulations for a good set of numbers. I have a couple of questions. So first one is we have commissioned our solar cell facility. Right. So I mean, how is the progress, I mean in terms of ramp up stabilization, how is it going so far and has it started commercial production as of now? This is my first question.
Amit Paithankar
Yeah. So Akshay, thank you very much for your comments. Solar cell facility 5.4 gigawatts which was inaugurated almost a quarter ago is very much operational. In fact, we are using the BCR cells produced in this facility for various projects which include, you know, retail for PM Suryagarh, also for PM Kusum, as well as several of the orders that we have which demand DCR sales.
Akshay Mane
Okay, and so what would be the current capacity utilization that we must have ramped up as of now?
Amit Paithankar
So the plant is at this point in time ramping up line after line. You know, the lines which we have started earlier on, they are at almost 80%. And the lines which are coming up on, you know, around now, we will be in the region of anywhere between 40 and 50%.
Akshay Mane
Okay, okay, fair enough. And my second question was. So a couple of days back and then I came out with a clarification regarding the ALM list for sales. So what would be the potential implication of this clarification? Because I believe there is no change in terms of timeline for implementation of alcl. But they mentioned about the cutoff. Right. So when the List 2 comes out, so you have one month’s time to get those projects on board. So I mean, just wanted to understand what is the potential implications of that clarification that MLR came out with a couple of days ago.
Amit Paithankar
I think one of the most important aspects of the clarification is the date by which the ALM for sales will be applicable. And that’s 1st of June 2026. It’s unchanged. There are some technicalities which have changed and those technicalities are essentially some of the projects which were grandfathered till 9th of December 2024, that date will now be extended to perhaps the end of August or middle of September. That’s one month after the ALM list is published by the ministry. So the implication of that essentially would be maybe a few more projects would potentially be grandfathered.
However, given the type of ramp up that various players in the industry are seeing, and also looking at the number of projects which were grandfathered earlier, I think there will be some impact on the industry, but it’s not something that the industry cannot absorb.
Akshay Mane
Potentially what could be the size of those projects? I mean, in totality.
Amit Paithankar
We are calculating that the earlier list was in the region of about 110 odd gigawatts and what would potentially get added would be maybe another 10 gigawatts or so.
Akshay Mane
Okay, okay, so, so, so here, now what, I mean, nothing changes in terms of your timelines, but with our cell capacity, that 5.4 gigawatt and module capacity, maybe in the next six months you mentioned, it will touch the 25 gigawatt. So there’s a huge gap in terms of DCR module production.
Amit Paithankar
Right.
Akshay Mane
So how are we looking at, I mean, see a lot of projects will move from current AMM market to maybe DCR market. Right. I mean, so how Are we going to fulfill those orders going ahead? If our cell capacity probably for FY26 will be limited to 5.4 gigawatts.
Amit Paithankar
So our cell factory is actually being built at a record pace. We already have the experience of building one cell factory and drawing upon that experience, the next factory is being built and it should be ready in the next fiscal and therefore we should be in a position to actually supply DCR cells, cells and modules next year also.
Akshay Mane
Okay, any broad indication of what would be the mix between DCR and non DCR order orders in our order book currently?
Sonal Shrivastava
So basically the DCR orders are mainly coming in from the retail segment and some CNI segment which is the very current order order. You know it’s kind of a cash in cash. So it’s a very small part of my order book. My order book is very long term orders. So it’s a pretty healthy one. As you can see as we are ramping up our sell capacity, it’s all about penetrating the market this year and that’s what we hope to do.
Amit Paithankar
And just to complement what Sonal says, our shop floor is actually flush with orders for the next one to one and a half years and with different kinds of orders. Right. And so those are clearly will be in the quote unquote grandfathered category. So we are in a good stead for the next one to one and a half years time.
Akshay Mane
Okay. Okay. Thank you so much. That is all from my side. Thanks.
Amit Paithankar
Thank you.
operator
Thank you. The next question is from the line of Aman Jain from Bernstein. Please go ahead.
Aman Jain
Hello, I’m audible.
Amit Paithankar
Yes Aman, you are very much.
Aman Jain
Yeah, yeah. Hi. Thank you for taking my questions. Actually I have a couple of questions. My first question is regarding the 6 gigawatt integrated facility which is being shifted from Odisha to Gujarat and Maharashtra like you mentioned. And it is great to hear. The execution is on track but want.
Amit Paithankar
You know, need to obtain all fresh.
Aman Jain
Clearances, permissions and require land, you know again before starting the construction. Can all that realistically be done in the next 12 to 18 months? I mean would appreciate some color on that.
Amit Paithankar
Aman, thank you very much for the question. We actually have the land with us. So let me take you through each one of these aspects. Right. First of all 6 gigawatts we have actually with the approval from the board we have increased it from 6 gigawatts to 10 gigawatts. So it’s 10 gigawatts of cells and 10 gigawatts of ingots and vapors and 6 gigawatts of modules. So for the modules we have actually we are going to use a fully done up facility. We need to just retrofit it for module manufacturing. And so that activity is going on as we speak.
And within the next six months those 6 gigawatts of modules will actually be up and running. And so we got the benefit of actually getting hold of a facility which was almost ready made as far as sales is concerned. It is being constructed in a place called ul, not very far from our current gigafactory in Chikli. The land is already in our possession. In fact the construction work is in full swing. Most of the permitting that is needed is also there with us. And for Ingam wafers, the facility is going to be in Sootiburi, which is a suburb of Nagpur and Maharashtra.
And that land is also in our possession. Midc. It’s an MIDC land which we have taken possession of. And there also, you know, the engineering work is complete. Preliminary work with respect to the preparation of land is already ongoing. And so therefore we have a fairly high confidence on the timelines.
Aman Jain
You’re confident that the commissioning can start by FY27 latest?
Amit Paithankar
That’s correct. That is correct.
Aman Jain
Okay, that, that’s great. That’s great to hear. My second question is regarding the non FEOC ruling that one beautiful Bill Act. I mean the extent to which non FEOC rule apply is unclear to me. I mean like whether it is limited just to the company ownership or it extends across the entire value chain. I mean if you can throw some color on that, great.
Amit Paithankar
How is it going to realize FEOC rules are quite exacting from that perspective. It extends to ownership, it extends to value chain, it extends to where you buy your raw materials from. So it’s a fairly broad based requirement which by the way Aman is a good news for Indian manufacturers like us who have a footprint both in the US and in India because that gives us a leg up in actually making sure that we are fully compliant with FEOC from the perspective of both ownership as well as supply chain and then serve the American market.
Aman Jain
Right. I mean, but if we are importing wafer from China, policy from China and then making wafer and themselves wouldn’t be an issue for us as well.
Amit Paithankar
So Aman, when we supply to the United States, we ensure that there is no FEOC mentioned countries inputs in that.
Aman Jain
In the entire value chain from.
Amit Paithankar
All the way from polysilicon through ingots and wafers cells, everything.
Aman Jain
All right. All right, thank you. That clears it. Thank you so much for your answers.
operator
Thank you. The next question is from the line of Nitin Arora from Access Mutual Funds. Please go ahead.
Nitin Arora
Thanks for taking my question. Just on this AMM delay of nine months. So what are you will correct me on this the rooftop they have not touched the question years now they have not passed. Rather what is your view on the CNI segment? Because that’s a bigger segment of solar in country which now cannot go abroad to take the cell because they have not been given extension. Everyone was thinking on the CNI part. So don’t you think that market will open up for Indian cell players and module players because that’s a very decent sized market of 1415.
These are what that is my first question and second you said about grandfathering of certain projects. So when we look at in December 2024 there were about 808 gigawatt worth of orders got signed the PPA they were only about 560 gigawatt which eventually will fall in and change in law. But when we look at our private IPP market today which is 15 gigawatt which will eventually also grow. So by the time FY28 comes that market will become also pretty big. So just on those two aspects about. The CNI you know how you’re looking because they can’t now go abroad they have not got the extension as per the circular how you see that opportunity by increasing for the solar cell and especially cell. I want to know more as well. So just on these two aspects if you can throw some light.
Amit Paithankar
Nitin, great question. You know both the earlier circular on by mnre, the latest edition clearly underscore the general direction that the nation is marching forward towards which is Atman Nirvar Bharat or self reliant India and clearly wants to ensure that the value chain for renewable energy in this case solar is actually built in India. We create and factories in India, we create manufacturing jobs in India. We give opportunity to the entire sector in India itself and be self reliant. And from that perspective like you rightly said 1415 gigawatts of CNI sector really is available for local players which is absolutely you know from our perspective the right move forward and like you can see and imagine for a player like worry like several of our industry peers as well is going to be extremely beneficial.
You quoted the exact number 108 gigawatts which could potentially be grandfathered. That was the earlier number. Maybe another 5 to 6 gigawatts may come in change in law as you rightly said. So that will be the extent of impact that it will have on the manufacturers. Most of the manufacturers, including Vadi, at this stage, you know, whatever order books we have, it’s comprised of these grandfather. So in the short run, it is not going to be a problem. It is in fact going to be an opportunity. In the long run, the cell facilities will become even more important.
It will be extremely important to ensure that we manufacture our cell in the, in the country itself and then, and then feed that into the ALM for sales market.
Nitin Arora
Because this segment was absent. So this will become a larger opportunity for the cell players in India rather than being, you know, opportunity going away. And FY28 will be, I think the IPT will also expand so that also they have to come back to you guys or any other person putting cell here in India. So. Yeah, I got it.
Amit Paithankar
No, absolutely, Nathan, I totally agree with you.
Nitin Arora
Yeah, thank you very much and all the best.
operator
Thank you. The next question is from the line of Sarang Joglekar from Vimana Capital. Please go ahead.
Sarang Joglekar
Yeah, hi. Thanks for the opportunity. So first question is on the cell. Line, is it stabilized and how much is the capacity utilization for the quarter?
Amit Paithankar
Yeah, so I think Aman also asked a similar question. Akshay also asked that question. So cell, you know, one after the other airlines are coming online. The ones which we have been able to get online about two to three months ago are stabilized. Now they are working at capacity of roughly 80%, 85%. The ones which are now coming online are in the region of 50, 40% and on a combined basis it is 60%. We will probably take another couple of months to stabilize the entire facility.
Sarang Joglekar
Got it. My second question is on the module production. Your PPT states that it is up 64% year over year. But when I see your result. The. Release, it says the revenue from modules is up 21%. So like, why is that? If you would throw some light on that.
Amit Paithankar
Yeah, sure. So I will tell you the quote, unquote theoretical reason, and I will let Sonor talk about the numbers. But the simple thing is production is essentially based on an overall order book and the revenue is based on the recognition. Right. And this quarter has been a quarter where we have actually shipped a lot of our orders overseas and that revenue is not recognized. So there is a difference between therefore, the production and the revenue which is recognized.
Sonal Shrivastava
Yeah, I mean, this quarter we have produced and shipped a significant quantity of export orders. And so that quantity, like Amit says, doesn’t show up as sales this quarter. But will be delivered when it’s delivered, it will show up as sales when it’s delivered and that’s going to come in the next quarter. So you will see a divergence in sales and volume. Normally it has been pretty stable what we report in terms of production and sales, but this time it has diverged because we have a substantial figure in the git and you will see this flow through next month.
Sarang Joglekar
Got it. And my last question is on the bess. I see you are making significant investments in that segment and the demand is also coming up. But I think currently the Chinese batteries and cells are also being imported. So how is the domestic market and you worry particularly competitive against the Chinese imports and are there any ALM like regulations in that segment as well?
Amit Paithankar
So in the history of solar, for instance, when solar started it was almost 10 times as expensive as what it was right now. In fact, around 2010, 2011 time it was almost felt as if why do you get into solar business? Because it’s so much more expensive than the conventional sources of energy. And in 10, 12 years time, of course things change. Battery is actually going through a very similar curve. In fact, we are having a situation where lithium prices have gone down, the prices of cells are coming down, the prices of packs are also coming down, and all of that taken together, we will actually see a substantial reduction in the price point in terms of government regulations and how would the trajectories be? You know, we would anticipate something like that.
But that’s a question I guess better asked to the government authorities. I mean if I were to answer the question, I would say yes, why not? But I think the question really has to be directed towards the government authorities. But currently there is no such policy in place. Sorry, currently there is no such policy in place. Currently there is no such policy. There is no such policy in place. I think there are two. We were talking about exports also and I think Aman had asked a question around apoc. I think similar thoughts and ideas are existing even in the US market and therefore what happens is, you know, exports also is a very strong opportunity that is there in front of us also for the battery segment.
Sarang Joglekar
Got it. And my final question is on the demand side, how much is the tendering happening on the central agencies and state level?
Amit Paithankar
So tendering, I guess it goes through cycles. So like we said in the last six, seven months, it’s roughly speaking around 10 gigawatts. But if you really see the capacity that has been added from a solar perspective in the last quarter itself, we have deployed as a nation 10.6 gigawatts as against 24 gigawatts which was deployed in the whole of last year. So there is a substantial momentum. I think tendering process will pick up.
Sarang Joglekar
Got it. All right. Yeah that’s it from my side. Thank you.
operator
Thank you. The next question is from the line of Vikram Sharma from Niveshe. Please go ahead.
Vikram Sharma
Congratulations on these numbers. So I wanted to understand regarding what is our IPP plans. So even I wanted to understand the.
Amit Paithankar
Structure for the IPP business.
Vikram Sharma
So like we are generating good cash flow in vari renewable technologies also and we are adding our IPP capacity throughout the acquisition Also overall as a group I wanted to understand what is our long term plan on IPP side.
Amit Paithankar
Thank you very much Vikram. I am requesting Abhishek here to address this question on policy.
Abhishek Pareek
Thank you. Thanks Vikramji for asking this question on this segment particularly we have mentioned in our announcements also in the quarter when board has given us an approval to build this infrastructure for the group wherein we are getting a pipeline of connectivity as well as lan. So even in the presentation also Amitris mentioned that our objectives for worry is to keep increasing our wallet share with our clients. So when we were selling modules the wallet share was around 45 to 50%. Now when we do along with modules, PPC, batteries, inverters and going ahead connectivity is a land as well.
Our wallet safer can enhance somewhere around 80 by 90%. That’s the bigger objective. And secondly when we have land and connectivity it also increases our chance and our ability to participate in all sorts of tenders and projects wherein there is a requirement of supplying connectivity land along with the turnkey projects. So this gives us an additional pipeline for the group in addition to our existing camp exports and retail markets that we cater to.
Vikram Sharma
Okay like what is the status of battery storage cell plant and what is our future plan with this? Like what capacity are we planning for this capex?
Amit Paithankar
So like I talked about in my in my earlier commentary for cells by 2027 we will be having a capacity of 16 gigawatts for modules we will be having a capacity of 26 gigawatts and for ingots and wafers we’ll be having a capacity of 10 gigawatts. For batteries we are going to have a capacity of three and a half gigawatt hours and for inverters we are going to have a capacity of 3 gigawatts. And on the battery side like for this capex we have any plan like how we are planning on the battery storage side. Yeah. So like I said, there is a place called Rola in Gujarat which is where we are building the battery energy storage system factory. There is an investment of around 2000 crores which will be made for the same.
Vikram Sharma
Okay. Okay, thank you.
Amit Paithankar
Thank you very much, Vikram.
operator
Thank you. The next question is from the line of Bhaskar Chakravarti from Jefferies. Please go ahead.
Bhaskar Chakraborty
Thank you very much. You had earlier indicated that overseas revenues are going to contribute roughly about 20% of the total this fiscal. But in the first quarter about 32% of your revenues have come from overseas. And you are also indicating that in the second quarter that number could even increase because of all the shipments which reached. So is there a impact on your. Orders because of the OBD in us? Is there a front loading that you are seeing or this is just part of the business and things have changed.
Amit Paithankar
So, you know, like I always say, Bhaskar again, by the way, a very good question. There will be typically variations from quarter to quarter in business, business as usual. There has been demand for increased module requirement from the US in the last quarter and actually we are seeing that for this quarter as well. So we might be in a situation where the revenues from overseas might be higher in proportion to what it was, say, for instance, Q4 of last year, or even Q3 of last year. So those changes will keep happening over a period of time.
I mean directionally they will be in the zone of, I would say 20, 80 or maybe 70, 30 in that zone on a long term basis.
Bhaskar Chakraborty
Okay, thank you. And also just your thought process on taking overall capacity to 25 gigawatts which seems like a very big number in the context of where Indian demand will be in FY27. So could you give us some color on, you know, how you’re looking at this capacity in terms of export versus domestic, etc. And why you are setting up such a large cell capacity.
Amit Paithankar
So Bhaskar, you know, I think 13%.
Bhaskar Chakraborty
Of India’s market is with you, right? Currently.
Amit Paithankar
Sorry, can you come again on the last part?
Bhaskar Chakraborty
I mean, based on your rough idea of your module sales vis India’s annual installations, I think you have roughly about 12, 13, 14% kind of market share in India. So in that context I just wanted to understand, are you seeing a much larger market share for you a couple of years out?
Amit Paithankar
So the first most important part to understand here is of course us is an extremely important part of the equation from our context. And so when we talk about the capacity, it’s a global capacity which will be distributed all across the world, which includes United States and, you know, the 25 gigawatts. With that, we should be in a position to serve our customers in India as well as our customers in the US and so as we move forward, we have talked about the secular nature of the demand, whether it’s in the US or whether it’s in India.
In India, we are actually just at the cusp of increasing the amount of energy that we consume. There is a huge amount of urbanization that is going on as we speak. The agricultural demand of power itself is on the rise. So all sectors taken, urban, rural, there’s a big, big spike in power demand expected. And time and again we have proven that renewable power and solar being a big component of it, is the cheapest form of energy available to us. And that of course frees up India of valuable foreign exchange. From a US perspective, we actually have a huge amount of demand coming up with three fundamental drivers that are again talked about in my commentary.
The first is AI and associated data centers that are being put up. Just to put it in perspective, at this point in time, across the US about 2.2% of overall power consumed is used for data centers associated with artificial intelligence. By 2030, that number is set to grow to 7.5 to 8%, which is a big shift. And so the voracious power appetite is a very big deal from an AI perspective. The second part is the large amount of manufacturing base which is moving back to the US and that requires a lot of power. And transportation in the US is also getting electrified.
So again, a huge demand there, you know, and therefore we are actually quite confident that the capacity that we have, and by the way, the capacity that we have built is based on orders that we are looking at and the pipeline of orders that we are staring at, which is 100 kilowatts as we speak. So it’s because of all of that that we are building up this capacity.
Bhaskar Chakraborty
Okay, so when we are looking at some of your peers, they are also very aggressively adding capacity and backward integrating. So that’s not worrisome that in the next couple of years, the kind of capacities we are looking at are probably going to be 3 to 4x in sales and probably 2x to 2 and a half x modules.
Amit Paithankar
So the capacities, what we need to look at is how much is the integrated capacity. And that’s going to be actually extremely important. From the context of India, we talked about alm, that’s the direction and going forward a very Similar kind of a situation would be imposed on perhaps in the downward parts of the value chain as well in the US as well. We talked about FEOC and we talked about the fact that the whole value chain needs to be free of the FEOC constraints. So all of that would mean that we need to have manufacturing of cells, we need to have manufacturing of ingots and wafers.
And that is also adding to the piece of the puzzle as we look at the overall demand dynamics. And when we put all of that together, honestly, the requirement, I would say there is room for us to grow in India in terms of shell capacity and there is even more room for us to grow as far as ingus and wafers are concerned. So we are just beginning in my opinion.
Bhaskar Chakraborty
Sure. Thank you very much.
operator
Thank you. The next question is from the line of Chirag Kazgiwala from NEO Asset Management. Please go ahead.
Chirag Khasgiwala
Yeah, hi. So this is regarding the entity dumping duty investigation initiated in US a few few days back. So what you understand is let’s say the entity duty is placed on the solar cell as well. Then how will your the profitability of the Texas plan?
Aman Jain
Great question. So let’s, I mean first of all, I think the investigation has just begun and so we will have to see how does it proceed. There are several other countries in the ambit as well. Now the important part here is like I said, we have a global footprint. And so the best way of actually managing through these different types of policy changes, investigations is that you have a footprint which is local and a footprint by which you can actually supply from outside as well.
So that’s one and that’s the strength that we have with us. The second is we are answerable to all of you folks who are asking me questions and that’s why we are answering questions to you. We are listed on Indian stock exchanges, Our books of accounts are audited, they are extremely transparent and that is true of most of the players in India as well. And so there is really no question of any predatory pricing policies that Bari undertakes. And therefore I think we are in a position of strength when we are going to talk to the US authorities as far as ADD investigations are concerned.
So let’s see how does this evolve. But I would say we should be in a position because of our global footprint and because of the fact that we are a publicly listed company, we will be in a position to defend our case well, with minimal impact. And secondly, regarding your battery energy storage system plant, so can it show some more light on the revenue and ebitda potential for this plant once it becomes operational. So these are initial days for these. You know, it’s in an embryonic state at this point in time. As the production starts, we will be in a position to actually talk a little more in details about that.
Chirag Khasgiwala
Okay.
Amit Paithankar
And just coming back to that anti dumping part. So let’s say if at all solar cell has been stopped, duties imposed on India, then we will be able to maintain the margins which are generating currently on an overall company level or will it get somewhat impacted because you have to produce cell or procure cell from us itself which could be at a higher cost. So the primary way in which we manage worry is as Sonal said a few questions ago, is gross margin. And we make sure that we are at the right point from a gross margin and EBITDA perspective and that we keep delivering that those numbers for our investors.
Chirag Khasgiwala
Okay, thank you.
operator
Thank you. The next question is from the line of Ashish from InvestQ PMS. Please go ahead.
Aashish Upganlawar
Yeah, thank you for this. So continuing from the last question, maybe a pinpointed decline in terms of what happens if to the current order book. Which is more than half of it is from the US if 25% duty put on India in the coming days. So does it impact in any way our contracts that are already contracted or those contracts are flexible enough to take. Into account initial duty to pass on. And secondly, how does the business move ahead in terms of incremental business from the US is it possible to pass on this 25% given the demand supply matrix in US? So basically wanted to understand the disturbance, oblique disruption that would happen to our major business where the profitability is highest. Your comments would be helpful on that.
Amit Paithankar
Yeah, Ashish, you wanted me to be pinpointed? I will be pinpointed. The important part for us to realize is that the ADD investigation has just begun. And so I would not want to get ahead of myself and say this is the way it is going to. These investigations typically takes at the minimum six months, optimally one year and sometimes even more than a year. All of the contracts that we have at this point in time, you know, we would actually be by them, have fulfilled quite a few of them. And in most of our contracts there are features in which we can draw back and make sure that our profitability is maintained.
My question was regarding the Trump tariff that is expected to come the 25% which would be kind of consistent and kind of ongoing. So is that there are possibilities. So how are the market dynamics overall? Will it affect in any way Our realizations of profitability on the current order book and the incremental business that we would get from here. That’s what I was not the part. Oh, okay, okay, Ashish, sorry, I misunderstood. So Trump tariffs. I. I did not listen to that important keyword in that sentence there. So it’s a basket of different kinds of terms and conditions.
We have in many cases there is a potential of actually going back to the customer with change orders and so on and so forth. And in some cases it is not. So it is going to be a mixed bag. But net net, like I said, we will always make sure that we are driving towards a gross margin which leads to an EBITDA that we have committed to our investment.
Aashish Upganlawar
Any impact of the big beautiful bill that you see.
Amit Paithankar
So, you know, big beautiful bill, you know, the one way to interpret it is that there is a lot of negative around but on the ground there are some very interesting things that are going on. Number one, 45x has been retained for manufacturing and so therefore that helps us. I mean it has been advanced by a year but that has been retained. So that kind of helps us. Number two, FEOC regulations have been clearly elucidated and they are actually beneficial to us because we will be in a position to comply to all of these APOC regulations being completely owned by India and Indian entities and by ensuring that the entire supply chain is free of apioc.
So in fact Ashish is going to be helpful to us is what I would say. We have actually seen a slew of orders coming in because of some of the constructs of the big beautiful business. Okay, so lastly there was a promoter holding transfer within a family entity. So what was the need for that? Because that gave us a surprise. So what is the reason behind all this? So Ashish, thank you very much for the question. I think shareholding patterns I and the promoters wish on how would they want to do it is perhaps limited to what the promoters want to do.
And I think these are out of the ambit of our present discussion. But that is a bit important because why would such a need arise? What is the logic behind doing this? As a shareholder, I think you are. A bit concerned what’s happening, what looks. So this is, this is a broader thought process that the promoters have in overall group structuring. How would they want to hold, you know, various assets? It’s really dependent on how the promoters would like to look at this.
Aashish Upganlawar
Sure.
Amit Paithankar
Thank you so much. Thank you Ashish.
operator
Thank you. The next question is from the line of Karan Sanwal from NI Vishai, please go ahead.
Karan Sanwal
Hello. Yes. Correct very much. Yeah. So sir, congratulations for the good set of number. I wanted to clarify something related to what you already touched upon. You, you asked, you said about the input cost rising from, from us, from China which will be, you know, we’ll be trying to maintain the gross margin. Just wanted to clarify whether this also includes the scenario for solar glass where you know the output has been cut by 30% in China while there is also add on glass inputs to India. So would we be impacted on the supply chain of those solar glasses coming to us? Because that would still be a good portion of our raw material for us if you could.
Amit Paithankar
Yeah. So again I mean the basic principles current do not change. We will be solving the equation for gross margin.
Karan Sanwal
Okay. So supply will be a problem. Right? Apart from the cost, maybe the supply of the solar glass wouldn’t be a problem for us is what I’m trying to understand here.
Amit Paithankar
So, so there is actually a lot of capacity being built in India as well and other countries also. So there will be a balancing out of supply chain and I think it’s a very healthy trend from that perspective.
Karan Sanwal
Thanks for the clarification. And one question on the US manufacturing that you already talked about, I wanted to understand in greater detail like how has been the you know, utilization at the 1.6 gigawatt factory or taxes and and also when is the capacity expected? We also plan for additional capacity. So I wanted to understand when is that capacity expected to go live? If you could you know, highlight on the newest manufacturing part.
Amit Paithankar
So currently are fully booked for 1.6 gigawatts. In fact we are bursting through our scenes and that’s the reason why we are actually going for the next edition taking the overall capacity to 3.2. In fact those lines even before they have come into existence are already fully booked which is a good problem to have, but a problem nevertheless. And so that we are trying to work at a fairly fast pace to get the capacity ramped up. I would say here in the next six to nine months time we will have that new addition also fully ramped up.
Karan Sanwal
Great, that’s good to hear. And also you also touched upon the, you know the, the supply chain being being nothing from China, you are you know importing to supply to us. So if you could highlight the country that we are you know dealing with for our uh, our uh, dependent for the policy. If you could you know shed the light on. Because most of the capacity is from China.
Amit Paithankar
Right.
Karan Sanwal
So wanted to understand on that part.
Amit Paithankar
So actually, I mean, obviously there are some things which we would like to keep it to ourselves. But I. Let me answer that question in a very general manner. There is polysilicon manufacturing outside of China. There is ingots and wafers manufacturing outside of China. And so is the case itself. And of course those capacities are growing in India itself. Right? We are having ingots and vehicles manufacturing coming in India. There is cell manufacturing increasing multifold in India. And so enough to say that there is enough capacity outside of China all the way from polysilicon to cells for us to take cells into US and manufacture them in.
In a. Convert them into modules in the US or convert them as modules in India and then export them into the United States.
Karan Sanwal
Understood. Thank you very much for your detailed answer. All the very best.
Amit Paithankar
Thank you very much, sir. Really appreciate it.
operator
Thank you. The next question is from the line of Donatella from VT Energy srl. Please go ahead.
Donatella
Hello, good evening, Evola. But no problem, Donatella. This is not a good result. This is a fantastic result. So congratulations everybody. So the question the team. The order book I see is around. The top line is around 1100 gigawatt. So you have the production for five years. 100 gigawatt. The production is 60 gigawatts. So how long time you think to supply this module? The second is the pipeline is only for to sell the module or also activity like PC like the news I see for Vietnam, 50 megawatt or 100 megawatt. And the last question is you talk about 50% domestic market and 50% around is export market, including USA.
You have also the approach or intention to approach the market with good incentive. Because we talked before. Good question for the investor. I see before, for example, in Europe many, many incentives from government in many countries for there is the incentive. So the Germany now coming in Italy before many people go in Germany. So you have intention also to follow the European market. Thank you very much and congratulations all team people over 18.
Amit Paithankar
Thank you very much for the question. And thank you very much for taking the time to attend the call. I don’t know what time is it in the country that you are attending the call from, but we really appreciate it. Let me clarify the first point that.
Abhishek Pareek
You have where you talked about.
Amit Paithankar
Order books. Our order book is actually 25 gigawatts which is equivalent to 49,000 crore INR. Which is equal to what? Roughly 4 billion 5. Yeah, about $6 billion roughly of order book. It is not 100 gigawatt, it is a 25 gigawatt of order book roughly translating to about five and a half billion dollars roughly. And so that’s the first clarification I wanted to give you. Your question around that was for how many years will we be in a position to serve that order book? So typically the order book comprises of, like I said, some component from the U.S.
and typically the projects in the U.S. are a little longer gestation, about anywhere between two years to two and a half years. And that’s the sort of, I would say median the project. Large utility scale projects in India have a slightly lower gestation period, somewhere around eight months to around 1.2 years, 1.21 year, two months or so. And so that’s the kind of longevity that we will see for these projects. Your second question was around the structure of the order book, which is five and a half, $6 billion. Is it from modules alone, is it for EPC? Taken together, it’s actually for Wari Energies Ltd.
At the consolidated level, which includes EPC, which includes other parts of the business that we have within the overall Wadi Energy limited holding company. Your next question was around the fact that from an export perspective, the primary market we are looking at is, is the US and will be diversified and in particular will we look at the European Union. So we are actually extremely keen to expand our base beyond India and the United States. Wherever Indian government goes and signs trade agreement, we see that as an opportunity. Being a country based out of our headquartered in India, we are closely observing the geographies where overall as a country India is making its moves.
And so we’ll definitely try to follow that, you know, those cues sent by the government as far as EU is concerned, you know, we are constantly studying incentives which are available in various geographies which includes Germany, Italy and other parts of European Union. And as and when the opportunity presents itself, we will honestly jump onto it. From an EPC perspective, we have actually seen Middle east and Africa offering us substantial potentialities to grow. So in a nutshell, to answer your question, are we looking out for growth beyond India and the U.S. the answer is an absolute yes.
Donatella
Okay, thank you. Thank you very much. It’s clear.
operator
Thank you. I request each participants to ask two questions. The next question is from the line of Bhavya Shah from 3A Financial Services. Please go ahead.
Unidentified Participant
Good afternoon, sir. Am I audible?
Amit Paithankar
Yes, Bhavya, very much yes.
Unidentified Participant
So my first question is, is there something in industry? I got some insight that we can’t import Topcon technology from China. There is restriction on it. So how, how we are, we are getting technology from Vietnam or how is it working?
Amit Paithankar
So Bhavya, we are actually very much importing equipment. If you’re talking about equipment, there is really no restriction to get the topcorn manufacturing equipment from China or from any other country. And we very much go ahead and do that on a fairly routine basis.
Unidentified Participant
And my second question is what is the if I want to install 1 GW fresh capacity in India of cell capacity, what, what is the capex needed?
Amit Paithankar
So I’ll have Sonal RCFO talk about that 1 gigawatt of cell, how much will it so 1 gigawatt.
Sonal Shrivastava
Anywhere between 750 crores to 800 crores per year.
Unidentified Participant
Okay, thank you so much.
operator
Thank you. The next question is from the line of Akshay from Pinnacle Wealth Management. Please go ahead.
Akshay Lalwani
Yeah. Hi Amit. So I was just, I’m just joining for my second question here. So I wanted to understand on this operating margins. So on a year, on year basis we expanded our operating margins from say about 15% to 23%. So can you help me explain the margin difference between module and cells and how bot is profitable to us just generally?
Amit Paithankar
Yeah. So basically when we look at module, you know, margins, what we have said is in the long term we should look at around 18% kind of margins on the EBITDA side and 70 to 80% and with the sell we expect it to go up by 300 to 400 basis points because we have our own in house integrated facilities. That’s what we’re looking at. Of course in the last quarters we have done very well and we hope to maintain these margins going forward and keep it steady. Of course we’ve had some orders which have been good.
We’ve managed some procurement which has been excellent. Changing supply chains wherever necessary. So I would say that would be continue to be our endeavor as we go forward.
Akshay Lalwani
And Sonal, any reasons why we bought indosolar into the group structure?
Sonal Shrivastava
It was, I mean it was actually a very good opportunity to bring it into the group structure. It has been done, what, two, two and a half years ago. It’s not new. It was a good deal to NCIT and that’s how it was taken over.
Akshay Lalwani
Thank you.
Amit Paithankar
It’s a strategic fit for us. It’s in the northern region. We can serve our customers in the north from there. So there’s a big strategic element to that as well. I was wondering about the tax credits. That we have and unobserved depreciation. So is that also a major advantage to Us. Yes, of course. So we will get the benefit, we are looking at it and that is reflected going forward. But we also hope on a standalone basis also, you know, the profit will ramp up for indoor owner and we’ll be able to absorb whatever tax credits that we have.
Akshay Lalwani
Okay, thank you so much.
operator
Thank you. The next question is from the line of Deekshant from DB Wealth. Please go ahead.
Deekshant Boolchandani
Hello management. Congratulations on great numbers here. So we have already given an outlook for the current financial year FY26 or 5500 to 6000. But could you give us some sort of an understanding what would be the percentage of Indo Solar out of this?
Amit Paithankar
No, I mean just have a look at the Indo Solar results for the quarter and the consolidated result of the quarter and you know the gas is quite. But and of course we keep ramping up. So both we will be ramping up Indo Solar as well as VARI energy capacity. So. For us is an extremely important component in the whole scheme of things as additional module capacity. That is the primary strategic objective of having.
operator
We can’t hear you properly.
Sonal Shrivastava
Okay. Am I audible better right now?
operator
It’s better now.
Deekshant Boolchandani
Yeah. So the idea being that what kind of ramp up can we expect from Endosolar?
Sonal Shrivastava
So the ramp up is basically for the capacity. So if you see we’ll be reporting that in the solar results as we near our 1.3 gigawatt capacity. That’s the capacity as of now. So we will try to get as close as possible to that company.
Deekshant Boolchandani
Sure. And if you’re looking at a larger term perspective, sir, as you have mentioned that the opportunity has never been bigger, the pricing has never been more competitive and we have never been at a much more, you know, like edge of the market. We have the edge from a management perspective and from an opportunity size. What is that? We are looking at some sort of rough guidance for maybe 27 and beyond.
Amit Paithankar
I need to quickly go fetch a crystal ball and then tell you unfortunately I don’t have the crystal ball at this point in time. That will be way too out into the future I think let’s first get our ducks in a row make sure that we deliver the 5500 to 6000 crores we talked about. And I can assure you beginning of 2027 we will tell you what is the guidance for 2027.
Deekshant Boolchandani
Can you at least. I understand we don’t have crystal balls here and that’s not what we are looking for sir, but can you at least if directionally will we be accelerating from the current guidance or will we be somewhere in the same range? That’s it.
Amit Paithankar
Again a great question. I don’t have a crystal ball but 2027, beginning when the new parameters all arise, when my new capacities all come online, I think I’ll be in a much better position to talk about that number. And believe me, we will tell you that number.
Deekshant Boolchandani
So thank you so much sir. Congratulations again.
operator
Thank you. The next question is from the line of Sachin from MC Research. Please go ahead.
Unidentified Participant
Yeah, hi. Congrats on a stellar set. My question is with respect to the big beautiful field in the U.S. so how do you see the demand playing on maybe for the next 12 months? So in this quarter itself we had a jump in the revenue with respect.
Amit Paithankar
To what we witnessed in like the past couple of quarters.
Unidentified Participant
So how do you see that trending out maybe for the next 12 months.
Amit Paithankar
And once the, the credits expire, beyond that as well? No, I think the demand, like I said, it’s a very secular demand. And I talked about the three demand drivers to an earlier question as well. That is actually a multi decadal opportunity. It is not for this year. Two years, three years. This is going to be a multi decade opportunity. And so the demand will continue unabated and will only grow because solar energy is one of the cheapest form of energy.
Unidentified Participant
But there could be some front loading of the demand maybe for the next 12 months or so and then it could have.
Amit Paithankar
Quite possible, quite possible, quite possible. Okay, absolutely. Quite possible.
Unidentified Participant
And second question is with respect to the, the cell capacity. So how much of it is already been operationalized to understand that 1 gigabyte is already operationalized. So how is the total capacity operation as of now and out of the pipeline?
Amit Paithankar
Like I said, overall we are in the zone of around 30, 40% capacity utilization on the cell factory and we’ll take another couple of months for it to be completely operational.
Unidentified Participant
Okay, so maybe by the end of.
Amit Paithankar
This quarter we’ll have the full capacity up and running. Oh yes, definitely. When we meet next time this, for the next earnings quarter we should be. Yes, we should be in a much better position to talk about exact numbers there.
Unidentified Participant
Okay, sure. Yes, thank you.
operator
Thank you. The next question is from the line of Jagdish Sharma who is an individual investor. Please go ahead.
Jagdish Sharma
Hi sir. Congratulations on the good set of number as usual. I just have one broad question. We have a lot of things going.
Amit Paithankar
On the global level, right? Like anti dumping duties, price reductions, tariffs, etc. Which is going on there.
Jagdish Sharma
My one, my question is like when you are doing an MOU with any client, do we include anything saying that we will pass on the rate or we will. We will have any threshold in terms of margin.
Amit Paithankar
So yes, you know those are matters of negotiations and we our every attempt is to have those clauses in the overall contract that we have with customers including change of law clauses.
Jagdish Sharma
So it means that we are protecting our margins.
Amit Paithankar
Right. Our endeavor. Our endeavor Jagdish as I keep saying is to solve for gross margin.
Jagdish Sharma
My second question is like what is our like we have been seeing a lot of attractions in terms of this.
Amit Paithankar
The battery energy storage system in our.
Jagdish Sharma
Country and we have even started our.
Amit Paithankar
3.5 gigawatts of factory and it is. Coming online by next year. Right.
Jagdish Sharma
So my question is like are you entirely manufacturing like making India kind of things that are. You are importing some. Some things from outside and assembling and all the things. What is your take on that?
Amit Paithankar
So we will be actually reverse integrating all the way to the level of cells. So like you have in modules, in modules you have the module itself and then you have cell in batteries. You have got a pack, it’s called a pack and then one step back is a cell. So we will be reverse integrating to the extent of cell which is a very substantial.
Jagdish Sharma
Understand what is our total debt after all our capex? Sir, I’m sorry what will be our total debt or after all of the.
Amit Paithankar
Capex Ongoing Capex after three, two, three years.
Jagdish Sharma
What is our plan on that?
Sonal Shrivastava
So if you see what we have announced is that our total capex including everything, you know the recent expansion of 4 gigawatt smellinger including our 6 gigawatt integrated facility and the other adjacent businesses like battery and all the total capex is about 15,000 crores which is going to be spread over the next two years. That’s for point number one. Point number two is we already have on our balance sheet cash on an upward of 7,500 crores. So a very strong balance sheet and zero debt. And the way we look at funding mix in the next two years is part of this money which is lying second is going forward I have two years of internal accruals which will come in and also we also had a tie up with banks on facilities which we will draw down as the case may be.
And so far we have been conservative on our debt equity ratio. We feel very comfortable on this.
Jagdish Sharma
So partly or things will be a. Debt free company, right? That’s what you are seeing based on your history.
Sonal Shrivastava
Yeah, we are debt free right now. And we have taken on debt as we in the past and we will, we see as we have requirements we will take on based on that. Like I said, it’s a strong balance sheet.
Jagdish Sharma
Thank you so much ma’. Am. Thank you so much sir.
Amit Paithankar
All the very best for the coming quarters and yeah, thank you. Thank you very much. Really appreciate it.
Jagdish Sharma
Thank you.
operator
The next question is from the line of Mitesh Jain who was an individual investor. Please go ahead.
Mitesh Jain
Thank you madam. I want to ask you as Warrig what will be the role of Indus Olam?
Amit Paithankar
So Indosolar again like I said, it’s an extremely important strategic fit for us. Like I said in our last question, similar questions on IndoSolar. IndoSolar is a company which is manufacturing modules very much like our subsidiary in the United States is manufacturing modules. It has got a geographical advantage. It is in Greater Noida. So we actually take care of customers in the north. And so it will continue on its own growth trajectory as a part of the overall Re Energies limited Family.
Mitesh Jain
Yeah. Okay.
operator
Thank you sir. Thank you. The next question is from the line of Mehul from 4040 cents. Please go ahead.
Unidentified Participant
Hello sir. Thank you so much for the opportunity and congratulations on a stellar quarter. Sir, I just want to know, I am not aware about Indus Solar. Why is it not trading right now? So if you can throw some light on that. I’m not sure.
Amit Paithankar
Hi. Yeah, Abhishek here is going to answer that question. So if you see the Indus here it is already trading on the exchanges.
Abhishek Pareek
Now we got a permission, we did some upper port deal also it is already a tradable stock.
Unidentified Participant
No, right now as I see, as I speak right now it is trading is restricted.
Amit Paithankar
So I don’t understand what does it mean? So under the procedural guidelines of an.
Abhishek Pareek
Overbase of this size and this scale. So you will have to keep the window to open. But this is a tradable stocks now.
Unidentified Participant
Okay so any timelines or when it will be available for again for trading?
Amit Paithankar
Honestly, very difficult for us to comment on anything onto this and I think.
Abhishek Pareek
But all weekend days you can keep waiting for that.
Amit Paithankar
And yeah, and actually just to be sure it’s primarily procedural and so and the procedure is actually part of the procedure is actually outside of our ambit. And that’s the reason why we cannot tell you exactly the time in which this can be done.
Unidentified Participant
Okay sir, no problem. Sir. My second question is about your slide number six. You have mentioned about the ALM applicable for behind the Meter government projects from first June 2026. So actually I’m new to this company, so can you just throw some light. On what does it signify? What does it signify?
Amit Paithankar
So behind the meter is projects which are actually not going to export power onto the grid. And those are the ones which are all which historically were not a part of LM and now they have been made a part of lm.
Unidentified Participant
Okay. Answer. How also can you throw some light on the DCR segment in relation to this context?
Amit Paithankar
Yeah, DCR segment is a DCR stands for cells which are manufactured in domestic content. And so the cells which are manufactured in India are required for some specific types of projects that we have in the country. Like PM Suryagarh for instance necessarily requires DCR cells. Domestically manufactured PM Kusum requires DCR cells. Many of the large utility contracts by government players like NPPC also require DCR cells. And so, you know, those are the ones at this point in time. But eventually as the LMM becomes applicable for all types of project, they’ll be applicable for for every project in India.
Unidentified Participant
Right. Okay. Thank you so much, sir. It’s always a pleasure to hear your. Commentary and the call. Thank you so much.
Amit Paithankar
Much appreciated. Thank you very much.
operator
Thank you. The next question is from the line of Mitesh Mehta from Long Term Investors Group. Please go ahead.
Mitesh Jain
Congratulations for a great set of numbers. I have one question regarding our future plans ex us. So are we looking at, we discussed for European markets like you are looking.
Amit Paithankar
For, but what about the Middle Eastern Gulf markets and any further plan to set up manufacturing plant or export hub in Middle East? So Middle east is an extremely again interesting market for us. We are really evaluating it very closely for our EPC segment of the business. We will be looking at other areas where we can conduct business in Middle east as well and not just restricted to Middle east only via we are looking at other parts of the Pacific region which includes Australia and several other countries which include EU countries as well.
Mitesh Jain
Okay. Okay. And my second question is like pipeline for EPC business. So what is the kind of pipeline we have for EPC business and what is the growth we expect specifically for EPC business?
Amit Paithankar
Hi Miteshi. I think we have in the call of our EPC Aahari Renewable Technologies that the pipeline for our EEPC business is 25 gigawatt plus and we are pursuing this pipeline which entails domestic as well as overseas orders.
Mitesh Jain
Okay. Okay. Thank you. Thank you. And that’s it from my side. Good luck.
Amit Paithankar
Thank you very much.
operator
The next question is on the line of Sarang Jogalekar from VIMANA Capital. Please go ahead.
Sarang Joglekar
Yeah, hi, thanks again. So just under group structure, wanted to understand when I look at your standalone numbers, what is the capacity that it relates to how much is the capacity under standalone Wari Energy and how much is and subsidiaries.
Sonal Shrivastava
Yes. So basically the capacity for vari is 12 gigawatts and 1.3 gigawatt is within the solar so that’s 13.3 gigawatts and an additional 1.6 is in the US so that’s what we say 14.9 or 15 gigawatts which was our exit capacity for FY29. Sorry 25.
Sarang Joglekar
Got it. I’m on the cell.
Sonal Shrivastava
On the cell. 5.4 gigawatt is presently on in body. Okay. Later, whatever the extension is planned that. Will fully come under worry or. Yes, it is going to come under the subsidiary of Bari which is Sangam Solar 1 which was part of our IPO perspectives. You will see the 6 gigawatt integrated facilities coming up there in Sangamsolar which is 100% subsidiary and even the expansion that we have announced, the additional 4 gigawatt of cell and 4 gigawatt of ingot wafer that is also going to come in some of.
operator
Thank you. We will take that as our last question for today. I now hand the conference over to Mr. Amit Pethankar for closing comments.
Amit Paithankar
Well, first of all, thank you very much. It’s been a long what, almost two hours now or one and a half hours. But thank you very much for the patience and thank you very much for listening to our thoughts, ideas, strategies and numbers and we are eager to talk to you the next time. Till then we are busy trying to make the next coming quarter even bigger than the quarter that we are in at this point in time. Thank you very much.
operator
Thank you for joining us. And you may now disconnect your lines.