Waaree Energies Ltd (WAAREEENER) Q4 2026 Earnings Call Transcript

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.

Waaree Energies Ltd (NSE: WAAREEENER) Q4 2026 Earnings Call dated Apr. 30, 2026

Corporate Participants:

Amit Paithankar — Whole-Time Director and Chief Executive Officer

Abhishek Pareek — Chief Financial Officer

Analysts:

Nikunj Jain — Analyst

Unidentified Participant

Aritra Banerjee — Analyst

Prakhar Porwal — Analyst

Unidentified Participant

Unidentified Participant

Unidentified Participant

Unidentified Participant

Unidentified Participant

Sarang Joglekar — Analyst

Unidentified Participant

Unidentified Participant

Unidentified Participant

Akshay Gattani — Analyst

Unidentified Participant

Unidentified Participant

Donatella — Analyst

Unidentified Participant

Unidentified Participant

Unidentified Participant

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Vari Energies Limited conference call hosted by MUFG In Time India Private Limited. As a reminder, all power spin lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. I now hand the conference over to Mr. Nikunsh Jain from MUFG In Time India Private Limited.

Thank you. And over to you Mr. Jain.

Nikunj Jain — Analyst

Thank you, Michelle. Good afternoon ladies and gentlemen. I welcome you to the Q4 and FY26 earnings conference call of Vadi Energies Ltd. To discuss this quarter and full year’s performance. We have from the management, Mr. Dignesh Radhore, Whole Time Director and CEO Mr. Abhishek Pardik, Chief Financial Officer, Mr. Varun Goenka, President Growth and Strategy and Mr. Neeraj Vinayak, Vice President Investor Relations. Before we proceed with the call, I would like to mention that some of the statements made in today’s call may be forward looking in nature and may involve risk and uncertainty.

For more detailed disclaimer, kindly refer to the investor presentation and other filings that can be found on company’s website and stock exchanges. Without further ado, I would like to hand over the call to the management for their opening remarks and then we will open the floor for Q and A. Thank you. And over to you sir.

Amit Paithankar — Whole-Time Director and Chief Executive Officer

Thank you, Nikosh. Good afternoon ladies and gentlemen. This is Jignesh. Thank you for joining us for the Q4 and full year financial year 26 earnings call of Vari Energies Limited. I shall be referring to the investor presentation that has been uploaded yesterday on Stock exchange. If you have the presentation handy, it will be great to follow the conversation. Let’s start with the slide number three. I’m delighted to share the Vahri Energies Limited has delivered yet another year of record breaking performance.

This time across the full fiscal year. Revenue from operations in this year has recorded a growth of approximately 84% year on year reaching 26,537 crores. Operating EBITDA grew 117% to 509,09 crores with an operating EBITDA margin of 22.27% and our path for the year doubled, growing over 101% to 3884 crores. I want to highlight that our reported total EBITDA of 667 crores 17 crores has surpassed our guidance range which has given earlier 5500 to 6000 crores for the financial year 26 which reflects the strength and consistency of our execution.

Moving to slide number four which highlights our capacity, leadership and the scale we have achieved. Our total module manufacturing capacity now stands at approximately 26 gigawatt making Wari the largest non Chinese module manufacturer in the world. Our cell manufacturing capacity continues to be fully operational at 5.4 gigawatt, the largest cell manufacturing facility in India. Our order book continue to remain robust to approximately 53,000 crores. We have planned a capex of approximately 30,000 crores across verticals to fuel the next phase of our growth and I’m pleased to share that we continue to maintain a very healthy ROCE and ROE for 32.4% and 29% respectively.

On slide number five we show the strong production ramp up that has powered our results. Our module manufacturing for the year full year has reached to record 12.6 gigawatt. It’s approximately 2 crores module that is 56,000 modules every single day we have produced. This is the growth of 77% over the financial year 25. We sold approximately 12 gigawatt of modules during the year. Our revenue mix remains healthy and well diversified. Utility IPP C and I contributed 34.7% overseas at 33%, retail at 20.8% and EPC at 11.6%.

I want to particularly call out our retail segment which delivered revenue of 5515 crores in financial at 26 a growth of 84% year on year. The traction in our B2C business continues to be very strong and this is a segment we are very excited going forward. On slide number six we look at the Q4 more closely. Module production stood at 4.2 gigawatt 104% increase year on year. Cell production for the quarter was 0.7 gigawatt and we sold 4.1 gigawatt of modules in this quarter. Our order book as I mentioned stands at approximately 53,000 crores up from 47,000 crores at the end of Q4 Financial at 25.

The current order book does not reflect the retail portion which is nearly represents approximately 20% of our revenue contribution. Our record pipeline remains robust at 100 plus gigawatts. Moving to slide number seven I’m pleased to walk you through some of the key strategic initiatives we have undertaken during the quarter. On the growth and investment front, we completed the acquisition of a strategic stake in United Polysilicon Oman based company securing a long term fully traceable non Chinese supply of Polysilicon.

This is very important step for us from a supply chain de risking standpoint. Our subsidiary WRTL has announced the acquisition of approximately 55% stake in Associated Power Structures Limited for approximately 1225 crore. This marks our entry into the transmission and distribution segment which is natural adjacency for us. Our board has approved a capex of 3,900 crores PV glass manufacturing for capacity of 2,500 tpd glass accounts approximately 23% of module cost and 75% of module weight. So this backward integration will significantly strengthen our cost competitiveness and supply chain independence.

On the capacity side we have commenced construction of our 10 gigawatt ingot wafer facility at Nagpur which is with a capex of 6200 crores. We have commissioned an additional 3 gigawatt module manufacturing capacity Samakhiali Kutch A large part of our module manufacturing capacity has now moved to G12 and G12R technology. Of course it’s Topcon which is the latest generation of the cell and module formats and all our plant capacity expansion in batteries, solar cell ingot wafers, inverters and green hydrogen electrolyzers are progressing as per schedule.

We are very much on track on all the projects. On slide number eight we talk about what makes VARI different. The winning gauge. Our integrated business model provides full stack vertical integration starting right from polysilicon to ingot wafer cell module and all the way to EPC and O and M. We are also pursuing horizontal integration across energy storage inverters, transformers, green hydrogen electrolyzers and many more. Our speed of execution remains a key differentiator. We’ve expanded our module manufacturing capacity multifold to 25.8 gigawatt within seven years.

We built 1.6 gigawatt greenfield model manufacturing capacity in US in just 12 months, amongst the fastest of its kind. We are also on track to expand our US manufacturing capacity to 4.2 gigawatt over next six months ensuring local supplies in US. Our financial discipline is well established. We have maintained a debt to equity ratio of less than 1 despite heavy capex cycles for nearly a decade. Our capital allocation follows a simple principle, book and build, which means every rupee we deploy is backed by confirmed demand and a clear path to returns.

That’s our commitment. Growth with discipline we continue to de risk our business by ensuring no single customer market or segment define us. Today our retail service and overhead segments contribute 60 to 70% of revenue, a testament to this approach and we are taking it further throughout online sales, market expansion and strategic technology tie ups, continuously broadening our revenue base and reducing concentration risk. If you see slide number 10, that is where I want to spend a moment to talk about a bigger picture of where WORRY is heading.

We are emerging as India’s only fully integrated energy transition player. We call it this our journey from Worry 1.0 to Worry 2.0. With approximately 3.5 billion of committed CAPEX, we are building our capabilities across the entire energy value chain. Post completion of all the committed CAPEX, Vadi 2.0 will have approximately 28 gigawatt of module, 15.4 gigawatt cell, 10 gigawatt ingot wafer, 20 gigawatt hour of battery which is include the cell bag containers, 4 gigawatt of inverters, 1 gigawatt of green hydrogen electrolyzer, 20,000 MV of transformers, 2500 TPD glass plus smart meters and DND capabilities.

Our integration across the entire energy value chain along with structural demand is expected to expand total addressable market by four times from approximately $1 trillion today to approximately $4 trillion by 2035. Our end to end integration, unmatched scale and ability to deepen client wallet share position us uniquely to lead India’s Green Revolution and serve as a comprehensive solution provider to our customers globally. All in all, last year has been landmark year for vadi. The results are exceptional.

Our execution is on track across all the projects and runaway ahead of us continues to expand. We look forward to a very exciting financial 27 all beyond. With that I would like to hand over our CFO Mr. Abhishek for his remarks.

Abhishek Pareek — Chief Financial Officer

Thank you Jagesh Sir. Good afternoon everyone on the call. I will now take you through the next set of slides which cover our adjacent businesses, Demand, Outlook, Quality, Credentials and Retail Engine. All of which together are building the foundation of Vadi 2.0. Let me begin with slide number 10 which our CEO has briefly introduced. This slide captures the full picture of our transition today. HUARI is not just a solar model company. We are systematically building out every critical component of the new energy value chain.

From entire solar value chain to Bess, electrolyzers, inverters, transformers, solar glass, smart meters and D and D. We are constructing an energy transition ecosystem that no other company in India offers. Today we are deploying $3.5 billion of capex over the next two years to scale core capacity expand into adjacent value pools. This positions us to capture a TAM that is expected to expand roughly four times from approximately a trillion dollar today to $4 trillion by 2035. A decade long journey with a clear translating into a multi year end way of compounding revenue growth.

The strategic logic is very simple. Every new capability we add deepens our wallet share with existing customers and also opens up new customer segments. Let me now walk you through each of these adjacencies in detail. Slide number 11 which covers our inverter business. Inverters are the brain of any solar installation. They control power flows, capture critical user data and are increasingly becoming central to energy management. The global solar inverter market is currently approximately $16 billion annually and is expected to grow at roughly 11% CAGR over the next decade reaching approximately $46 billion by 2035.

In India, this market stands at approximately a dollar bill $1 billion today and expected to reach $1.6 billion by 2035. What is important to note here is that India is emerging as a reliable alternate to China for US and EU buyers. Driven by geopolitical stability and free market compliance. Energy security and data localization are becoming key drivers and under the Digital Personal Data Protection act, having India hosted data built significantly stronger customer trust. Our positioning in this segment is strong.

We have planned capacity of 4 gigawatts at our Sarudi facility in Gujarat with a CAPEX outlay of approximately 180 odd crores. Phase one of three gigawatt has already commissioned. Remaining one gigawatt shall be operational in current financial year. What makes this particularly exciting for us is that we are capitalizing on our existing retail outreach to provide a one stop solution. Modules, inverters and certainly going head storage all under one brand. There’s no incremental go to market build required for this.

The channel is already in place. Moving to slide number 12, we talk about transformers. Transformers are backbone of grid expansion and with the massive build out of renewable energy capacity, the demand for transformers is only going to accelerate. The global transform market is currently approximately $68 billion annually, growing at roughly 7% Chr. Expected to reach around $130 billion by 2035. In India the market is approximately $3 billion today and projected to reach $6.5 billion annually by 2035.

Under the revamped distribution sector scheme alone, the total outlay is approximately $33 billion. There’s a huge gap supply supply gap approximately 5.9 lakh. Distribution transformers have been sanctioned versus only 1.7 lakh installed which tells us the scale of this opportunity. At VARI we are current transformer capacity of around 4,000 MVA and we are adding up another 16,000 MVA of capacity taking total to 20,000 MVA in current financial year with a CAPEX outlay of around 192 crores at our Alwar facility in Rajasthan.

We are expanding the product portfolio to include distribution transformers, inverter duty transformers, extra high voltage transformers all under one roof. We continue to build out order book in this segment and have already secured orders from global MNCs which validates our quality benchmarks and global aspirations. Slide number 13 it covers what I believe is one of the most important growth segments for US Battery energy storage system. BEST is emerging as core enabler of grid stability and renewable integration and the numbers that are here are truly compelling.

Global Annual BASS Edition is expected to reach approx 1 terawatt hour by 2035. Right now the number is 247 gigawatt in 2025 almost 4x growth. India’s best installed capacity is expected to increase from around a gigawatt in 25 to 236 gigawatts by FY32. That means India is expected to add around 80 gigawatt hours annually between 27 to 35. This is primarily driven by BESS and the EV segment. Grid stability concerns and containment issues are accelerating this demand. With the mandatory requirement of minimum two hours by the Government of India for PV tenders, this policy framework is now firmly in place to support large scale adoption.

Our best capabilities are being built out with a plant capacity of 20 GWh. Out of that phase one, 3.5 gigawatt is expected in the current financial year and phase two of 16.5 gigawatt by next financial year. The total CAPEX outlay is approximately 10,000 crores. This facility will emerge as India’s largest integrated advanced cell chemistry, cell and pack manufacturing hubs. Our offering will include LFP cells, battery packs and containers and we are also pursuing further back on integration to indigenize a large part of their value chain.

We are targeting data centers, utilities, CNI customers and the residential segments altogether. Moving on to slide number 14, Middle east crisis have only highlighted the importance of energy securities by alternate means with hydrogen blending offering a de risked infrastructure, infra light entry into the green molecule economy with predictable demand, visibility and government backed incentives. All of this positions early moves in electrolyzers, blending station and hydrogen ready turbines and pipeline retrofits to Capture the outside returns and as energy transitions shift from voluntary to existential.

At VADI we are targeting a capacity of a gigawatt by Dumri facility in Gujarat in current financial year and a plant capex of 676odd crores. The security electrolyzer PLI for 444crores and hydrogen PLI for approx 510crores. Our strategy is very clear. We are starting with electrolyzer manufacturing, moving to build on operate projects and then transition to green derivatives. Our target segments include refineries, fertilizers, chemicals, steel plants, specialty chemicals and mobility. On slide number 15 we are playing out our part to solve land and connectivity related issues that at times slow down the renewable power adoption in the country.

In last 12 to 15 months of time we have signed TPS World 713 megawatts with credible utilities and global CNI customers. We also secured connectivity for developing approx. 8 gigawatt of projects comprising solar, wind and bus across central and state transmission networks. Our total commitment in this segment stands at 3250 odd crores and we are building a TV value driven IoT portfolio for our marquee clients which creates long term order visibility across all the manufacturing segments within the group.

Moving to slide 16 we talk about PV glass. This is again exciting story. Glass accounts approximately 20% plus of our module cost and one of the most critical components in stressing the module quality, efficiency, durability and yes duct cost. India’s PV glass supply has gap of approximately 5500 ton TPD as of now and over next 5 years this is going to increase. Edwari our board has approved 2500 tpd capacity which is enough to produce approximately 1617 gigawatts of modules per annum at a planned CAPEX of 3900 crores captive demand for FUC compliant PV glass.

It secures uptake from day one because of our US presence and US facility and at target yields our landed cost undercut side Chinese supply building a structural margin cushion into the current pricing. We are converting a dependency into a pricing power and that is opportunity which we are excited about. Slide 17 we got our EPC business which is fully integrated already from concept to commissioning to long term O and M all under one roof. The model is already proven to the ground. We have executed more than 5 gigawatt worth of projects and under execution around 3 gigawatts and currently our acquisition of APSL is ongoing with which we will be extending the same discipline into transmission and distribution APC as well.

This gives us nearly 3x revenue visibility ahead of us in a market that generally lacks reliable large scale EBC partners. Now moving to slide 18. This is where our long term confidence truly stems from the Demand Outlook Globally solar capacity reached approximately 2 1/2 terawatts in 2025 and expected to reach 8 terawatt hours by 2035, making solar the single largest contributor to the renewable power growth. Globally, solar additions are expected to grow from around 700 gigawatt in 2025 to 860 gigawatt in 2030 and around a terawatt by 2035.

Again a large opportunity. Domestic front India adds 44.6 gigawatt of solar capacity in FY26 taking cumulative solar capacity to around 150 odd gigawatts. India’s solar additions are expected to grow from 38 gigawatts in 2544 gigawatt in 26 to around 72 gigawatts by 2030 and our estimate is to grow 100 gigawatt annual capacity deployment in 2035. The evolving geopolitical landscape has only strengthened the energy transition imperative and WORRY is at the center of it. Moving to slide number 19.

At worry, solar is the core and from that core we are building the entire energy value chain. Upstream we are integrating all the way back to polysilicon and on downstream we are extending into storage, electrolyzer, inverter, transformation transformers, tnb et cetera. One integrated platform owned end to end built to capture value wherever the transition flows. On slide 20 we talk about something that is not always visible in the financial numbers but absolutely critical for sustained competitiveness.

Our quality and bankability leadership. These are not just one time certifications but reflect a continuous multi year journey of product performance, process optimization, field validation and financial strength. With over 50 plus global and domestic certifications we have built entry barriers that are hard for others to replicate. Moving to slide number 21 again something that I’m really proud of. India’s deepest solar retail engine. We have built a scalable unified distribution engine that covers today 27 states, 200 districts and more than 600 franchise over 2,500 authorized service partners.

Huge number. We have deep presence across solar demand clusters in India. Our strong last mile access through our installers and franchise network gives us the ability to influence customer decisions at the point of sale and the channel leverage is enormous. The same distribution engine that sells modules today can enable rapid rollout of kids, best inverters and future products with no incremental go to market build out every additional product. We push through this channel it reduces our customer acquisition cost further.

This is why I feel that we are building something large. And finally, on slide number 22 the result speaks for themselves. Vahri is India’s number one solar retail plant with highest national share in calendar year 2025. Around one in every six installations in the country carries worry. Name our persistent actions in brand building from regional advertising to partnership with cricket teams on ground awareness and digital marketing that are translating direct entry into the market, penetration and brand visibility.

The engine has been built and moat is establishing now. I will quickly brief upon financial numbers. For the full year our consolidated revenue from Operations stood at 26,536 crores reflecting a healthy growth of 83.7% year on year. Operating EBITDA came in at 5998 crores registering a growth of 117% with margins improving to 22.27% versus 18.84% in the previous financial year. Profit after tax was 3884 crores growing by 101% compared to last year. ROE for the year was 29% while ROCE was 32%. Turning to Q4, we closed the quarter with revenue from operations of 8480 odd crores marking year on year increase of 111%.

Operating EBITDA for the quarter stood at 1576 crores up by 70% margins. Profit after tax for the quarter was 1126 crores compared to 644 crores in Q4. FY25. I now hand over call back to our CEO.

Amit Paithankar — Whole-Time Director and Chief Executive Officer

Thank you Abhishek. Looking ahead, our priorities are very clear. Continuous scaling, capacity in line with the demand, deeper integration to improve the cost competitiveness, expand across markets and keep investing in technology and innovation. To Sum up financial year 26 has been a year of strong progress. We have delivered on growth, strengthened our position and built a solid platform for future. With strong industry tailwinds and a clear strategy, we remain focused on consistent execution and long term value creation.

We continue to remain upbeat on our growth prospect and guiding for operating EBITDA of 7000 to 7700 crores for financial at 27. Thank you for your continued trust and for being with us on this journey. With that, I would now like to request the operator to open the floor for questions.

Questions and Answers:

Operator

Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press start and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use only 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 Arun Kailasan from Jyojit Investments Ltd.

Please go ahead.

Unidentified Participant

Yeah. Hi. Thank you for allowing me to ask these questions and you know, congratulations on the numbers management. So I just wanted to know like why there was a very steep decline in the operating EBITDA margins in this quarter versus you know, the previous quarter. And that would have been my first question. And if you could also give us a color on like the realizations of the the current run rate of realizations for the DCR non DCR modules as well. Thank you.

Abhishek Pareek

Thank you for the question, Mr. Arun. So your question about the margins this quarter compared to last quarter over last quarter we have seen two things which one has envisaged the war in the Middle east and the crisis of commodity prices. Over last quarter the biggest impact which has taken up was the impact of silver pricing and copper pricing. It has in a way turned up taken some bit of our margins. Also more important to note here because last quarter there was also some impact on logistics cost.

The vast limited movement of ships inbound as well as outbound. Out of that the cost of freight has gone to the roofs like never before. And the mix of the sales again adds up to this. If you look at our mix of sales of last quarter compared to a quarter quarter previous to that you will realize that our revenue from the overall overseas operations operations has come down compared to Q3. So three put together has impacted the margin. But one thing I would like to add here. Since market normalized already now we have started factoring customers have started factoring the increased price in the new commodity levels already.

So we could we really foresee the implication that price have adjusted for the higher commodity prices already as we speak the another question of DCR non DCR market. Like currently if you look at the non DCR market for us there are two segments in non dcr. One is utility and another is our retail segment. Utility segment of prices ranges between 15 to 16 rupees with the I would say addition of the higher commodity price. And now the retail prices go within now incremental rupees per what we meant to us the DCR pricing ranges in the range basis the monoparker topcoin between 21 rupees to 22 rupees.

Hope that answers.

Unidentified Participant

Okay. Also I just wanted to know like Granted that, you know, worry is considerably shielded from the impact of any of the anti dumping duties per se in the US market. But do you think that, you know, I mean, do you see any sort of, any panic negotiation with regard to it, like you know, changes in pricing or, you know, even different deliveries in that particular market as a result?

Abhishek Pareek

So thankfully ahead of time, you know, we have, we were able to start our production in US itself. The 1.6 gigawatt facility started last year has already ramped up and another 2.6 gigawatt worth of new facilities are going to go live over next six months of time. So we will have approximately 4.2 gigawatt of US local capacity for distributing in the local US markets. So that insulates us from the impact of import duties on balance, at the same point in time. If you look at the export market also from India, since we have already established our supply chains ahead of time to alternate markets, including the market from Africa and Europe where we are sourcing ourselves from.

That again insulates us from the duty on solar cells originating from India. So that’s how we have been able to sail through the entire duty scenario. And I think we are in best position today with local 4.2 gigawatt capacity within next six months of time.

Aritra Banerjee

Okay. I was.

Operator

Sir, I would request you to kindly rejoin the queue. We have a long queue today.

Unidentified Participant

Okay. Okay. Thank you.

Operator

Thank you sir. Thank you. Ladies and gentlemen, 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 only one per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Abhishek Nigam from Motilal Oswal. Please go ahead.

Prakhar Porwal

Yeah, hi. I want to check on the G12R transition which you’re doing in the last quarter. So my understanding is there was a bit of a shutdown on some of the lines in the last quarter. So is that complete or there could be some spillover in the, in the first quarter as well.

Amit Paithankar

Yeah. So we have converted three lines to G12R. So currently 811 lines are working. Three lines are mono perk. Three lines we have converted to G12R. It is in ramp up phase and five lines is continue running into the M10R Topcon.

Prakhar Porwal

Okay, so these five will probably get converted in the first quarter, right?

Amit Paithankar

Yes, yes. Phase manner. Once the three lines will get stabilized runs fully slowly, we are ramping.

Prakhar Porwal

So I mean it could be one Q, it could be two Q depending on when this. This goes through.

Amit Paithankar

Yeah. Yes. One quarter.

Prakhar Porwal

Abhishek.

Abhishek Pareek

For. For you to take a note of one thing which is very important here is we are expecting to go back to the CEO of that you achieved in the month of Jan. 330 mega. 330 megabyte of monthly number in next two years in two months time. In fact, since we are shifting to G12R now, we will have the upset of higher efficiency and higher realizable value from the same set of cell. So you can expect in terms of megawatt and in terms of realization the higher number by 10 to 12% out of the current transition which has happened.

Hope that clarifies.

Prakhar Porwal

Okay, that works. Thanks. I’ll come back in the queue.

Operator

Thank you. The next question is from the line of Ravi Dharamshi from Valuequest. Please go ahead.

Unidentified Participant

Yeah. Hi. Thanks for taking my question. Just want to understand why was the export mix so low in this particular quarter and would that still be the case going forward? And also on the a little bit on the outlook for order book accretion on the exports front.

Abhishek Pareek

Hi Raviji. So the question of export being lower this quarter. So last quarter between Jan to Feb, you know we have seen a lot of impact on the logistics delays all across. So ships are getting delayed. These tags to load material on ships are also getting lower because of the congestion of these large ships in the Middle east markets. So because of that what has happened is lot of lots which have been manufactured and prepared for the exports market could not be shipped. If you look at our balance sheets also, you will realize that the inventory overall has gone up largely because of the logistics issues.

The same is going to get converted within current quarter. So that has not allowed us to do as much exports as we generally do every quarter and change our revenue mix as well. In terms of the order book question, like we have mentioned that we have got 53,000 crore worth of total order book already in terms of the order book detailing how much is export. So for us it is not export export, it is overseas revenue. Because we have around 1.6 gigawatt capacity in US which will be 4.2 gigawatt in six months of time.

Wherein we are delivering and manufacturing delivering both in US Some bit will continue as exports from India. In the total order book of 53,000 crore, around 65 to 70% is from the overseas long range order book to be delivered over next three to four years of time. And what is not accounted in this 53,000 crore of order book is the retail business. Which is approx. 20% of our total revenues.

Unidentified Participant

Thank you. Just one follow up question. What is the fundraise purpose of the fundraise?

Abhishek Pareek

So we have taken the enabling resolution to raise up to 10,000 odd crores. We will soon also be laying out the request for approval from the shareholders for raising this capital up to 10,000 odd crores. That request will also cover up all the objectives of the fundraiser.

Unidentified Participant

Thank you.

Unidentified Participant

Yes, hi Ravi, this is Varun here. I just want to clarify on this fundraiser. I think the Wadi 2.0 transition that Abhishek and Jamish Bhai spoke about essentially means a much bigger opportunity both in terms of the core module and the adjacencies that is opening up both in terms of India demand and global demand. Now for us to both in terms of increase the customer wallet share de risk, our supply chain, localize our bom, our entire materials and the support of government in terms of policies. For example, the glass manufacturing is essentially an outcome of the duty protection now that the government has introduced that you would be aware of.

So the margins earlier were much lower but now the margins are very high and ROCs are very healthy which essentially has encouraged us to take that capex. So this fundraise is to deepen our entire platform journey both horizontal and vertical and also to embark on the entire materials backward integration. This will lengthen our growth curve, protect our margins in rock over much longer period. Thank you.

Operator

Thank you sir. We’ll take the next question from the line of Aritra Banerjee from Nomura. Please go ahead.

Aritra Banerjee

Yeah, I hope I’m audible.

Operator

Yes, please proceed.

Aritra Banerjee

Yeah, so thank you for taking my question. My first question is on the, you know, large manufacturing side we just wanted to understand like you know, what benefits you can expect from the glass manufacturing bed in terms of, you know, manufacturing cost and will it help in any sort of boost on the margin front?

Abhishek Pareek

Thanks for the question Mr. Banerjee. I think before I jump off on the commercial benefit the more important element here is first is that for the entire supplies in the States market we require FUC compliant material. This glass manufacturing will ensure that we have continuous supply under control environment from India which will enable the user’s glass feed in for the factory. Secondly, for our India factory also since we have PLI benefits from the government, the localization of glass is going to ensure that we start getting our PLIs soon.

And thirdly, the current ROCs and ROEs in glass because of the cost curves and local manufacturing benefits including the protection by the government through duties of long term is making a lot of sense. Glass is around 20% plus of the total cost that we have. And if you are able to in house the glass and ensure that we apart from cell also control the cost curve of the second biggest component in the bill of material, it will ensure that we are completely independent of these moments. The glass.

Like in recent example last quarter glass was one of the case wherein prices rise sharply because of some problem or some trouble in the Middle east in China. So that way we are going to leverage on our capabilities to consume the entire glass that we manufacture. In fact the capacities announced are much lower are lower than what we will be requiring for our own feed in stock. So we will continue to even buy out from markets and also have in house sourcing of of glass on the self production. Hope that helps.

Aritra Banerjee

Yeah, understood sir. So I have just two more questions regarding the best business.

Operator

I’m sorry to interrupt you sir. I would request you to kindly rejoin the queue. There is a long queue who are waiting to ask questions. I would request you to kindly rejoin the queue for follow ups please. Thank you. We’ll take the next question from the line of Shweta Jain from Anandrati Shares and Stock Brokers Ltd. Please go ahead.

Unidentified Participant

So just wanted to understand two things. One is how would the cost matrix change if you’re importing sales from Ethiopia or any other African market versus Indonesia? Hello.

Amit Paithankar

Yeah, so on the day of announcement of duties by US government my chairman has addressed this question although I’m repeating here so it depends on the US duties onto the each countries. So in US the solar module is based on the solar cells where it produces, where the junction has been produced that country can be will be considered as a origin of that solar modules. So Ethiopia cells will have a 10% duty on us wherein Indonesia is having 34 plus 10 like 44%.

Abhishek Pareek

For you to understand in a way Aswath, I think I’ll try to make a little easier for you. For example if you’re importing from Ethiopia versus let’s say from Indonesia, we will end up paying duty on the entire product if we if we consume the product that sells from Indonesia. Similar is the case currently with Indian cells. Also we can use Indian cell for manufacturing in US or either export from Indian market. We will have to pay up the recent announced duty of 123% on India while Ethiopian cell will not have those duties.

Unidentified Participant

What I’m asking this question is in the recent add order the anti dumping duty apart from the CBD that came in earlier the Add SPE specifically mentions India and Indonesia. So with that into perspective this cost dynamics would have really changed. You know the last I think what we call is the selling ports we did was majorly from Ethiopia and then Indonesia. So are we looking at new markets Considering this cost cap would have increased was like 10% or 40% but Indonesia is now more than 100 with ads at least

Amit Paithankar

Indonesian sales we are not using for modules shipping to USA that we are using for India.

Unidentified Participant

Okay, understood.

Abhishek Pareek

In fact Shweta, to add up to the context if you look at the current build outs of capacity you will see that there are some bit of capacities which are building out in the Middle east also wherein there’ll be new cell capacities. For example in Oman we acquired the polysilicon company stake right strategically therein also in Oman also we see some capacities are coming up for sale. So there are cells available from Oman being code in India, manufactured module and export to us. The duty will be applicable is what duty would have been applicable from oman which is 10%.

So that way as we go on deeper in the supply chain we keep on diversifying our source of sales for the exports in US or Metak chain. We keep ensuring that our supply chain pocket is expanding and we have been doing this all through day and night.

Unidentified Participant

Thank you. I’ll come back in the question queue. Thank you so much.

Operator

Thank you. The next question is from the line of Sabri Hazarika from MK Global Financial Services. Yeah.

Unidentified Participant

Yeah. Good afternoon. So. So just to get wanted to get some more color on the guidance that you have given 7,000 to 7,700 crore or so looking at what you mentioned that the cell will take probably one or two quarter to convert fully to G12R and I think module capacity also we are like close to 26 gigawatt which will probably go up by another 2 gigawatt. So how does. I mean how does. How does we. How do we achieve this 2030% growth breakup between how the revenue would be, how the production volume should be, what kind of margin, some color on that.

Thanks.

Abhishek Pareek

So hi Sabri, thanks for the question. I think for someone to understand how it works is like FY26 our operating EBITDA was 5,908 crores. The guidance is 7,000 to 7,700 crore. So a range of around 20 to 25% of growth on the absolute level of EBITDA in terms of the cell production. The current as our CEO just mentioned over call that in a quarter’s time the cell production will not just Normalize to what it was a quarterback. It will actually have an effect of upside of 10 15% as well. Additionally, in H2 our 10 gigawatt cell is also going live which means in second half of this year our capacity which will be giving himself for our own model Production is not 5.4 anymore.

It is 15 and a half gigawatts more than sufficient for every module that we manufacture and sell in this country. So which means the impact of margin expansion because of the regulatory and DCR reasons will start coming in big way. In H2H1 we will see a transition from 5 gigawatt to 15 gigawatt and that’s how the number will also play out.

Unidentified Participant

Okay, so you’re expecting cell to be adding and ingot wafer would be in FY28, right?

Abhishek Pareek

Yeah, ingot differ will be in FY28. Also to further clarify here since we are giving you the consolidated guidance of ebitda, this number also factor in the pre startup cost of many of the projects which are under construction and going live this financial year. For example we are starting a 3 1/2 gigawatt battery energy solution plant which includes the cell manufacturing, pack manufacturing and container in Gujarat this year we have, we have deployed majority of manpower, white collar as well as blue already in the shop floor.

So the manpower which is not on the construction side, largely on the business development side is already on the go and is a cost to us. Similarly the case is there for all other businesses which are going to go live. So currently the existing revenue is also taking care of the businesses wherein the assets are going to Sweat starting from H2 this financial year and hence you will really start seeing the worries worry 2.2 results from H2 this year and going to a different level in FY28 when every asset is ready, is functional, is delivering result and going at full throttle.

Hope that clarifies.

Unidentified Participant

Got it. Thank you so much and all the best.

Unidentified Participant

Abhishek is saying what essentially what we’re saying is the core solar module stack which is module manufacturing and cell the entire capex will get completed in the FY27 financial year. The ingot wafer and part of battery will get completed in FY28. So this 27 and 28 will complete large part of the CAPEX and 29 you will actually see the entire Wari 2.0. The benefits of all operating businesses now getting seeded starting to reflect in the financials.

Unidentified Participant

Got it. Thank you so much. Yeah, thanks. Thanks a lot.

Operator

Thank you. The next question is from the line of Prakhar Podwal from Ambit Capital. Please go ahead.

Prakhar Porwal

Just one question on margins I wanted to understand. Like you mentioned, 4.1 gigawatt of modules sold. I understand exports mix have gone down to 21% from last quarter at 32%. If the margin moderation also a reason, another reason maybe that your DCR mix has gone down in India because your cell production if I see which is 700 megawatts. So largely is it safe to assume that that would be your DCR mix or would you also be buying a lot of cells from outside to cater to that segment from basically other cell manufacturers in India?

Abhishek Pareek

I think you have hit the needle right at the center. The understanding is very clear. But at the higher model production level, the cell, BCR cell or local cell production has not gone up. And hence there is some moderation because of this mix as well. Yes, there are customers for which we have even to buy out sales from the local markets just to ensure that we are delivering to our customers on time. But when you do that, you are putting, giving, putting the money on the table to the other side where you are procuring the sales from.

Sarang Joglekar

Understood. Okay, thank you.

Operator

Thank you. The next question is from the line of Deep Sanghvi from Belal and Doja Stockbroking Private Limited. Please go ahead.

Unidentified Participant

Hello.

Operator

Yes sir, Please proceed.

Unidentified Participant

So first of all, thank you for the opportunity and congratulations on a great set of numbers for the quarter as well as the year. So my first question was regarding this gap between the EBITDA and the cash flow from operations. With the CFO reconnoissance declining I think around 100 plus percentage to about 27.5. I guess around that number. So could you help me understand the key factors behind this diversion?

Abhishek Pareek

Sure. So if you look at our cash flow statement also you pointed out very right that you know the cash flow operations percentage has significantly come down. As I mentioned in my earlier reply as well that because the inventory build out has happened in Q4 largely because of lot of material has kept on the shores could not be shipped out because of the logistics issue. Had that been the case, we would have been realized, we could have realized the cash into our balance sheet that would have changed the number altogether.

The inventory levels in the balance sheet also reflects the same. If you keep the levels of inventory at normalized levels, the same number will go back. So there are normalized level of 70% to 100% conversion of cash from current 27%.

Aritra Banerjee

I’m just going to follow up so could you explain the cash conversion? The cash conversion cycle. Please

Operator

Rejoin the queue for follow ups because we have a long participants are waiting for that. Thank you sir. We’ll take the next question from the line of Kunal Shah from DAM Capital. Please go ahead.

Prakhar Porwal

Yeah. Hi sir. So just could you give some color on this entity? Vari semicon and how are we thinking of this business and what would be the status of this entity in terms of let’s say talent acquisition, government, pli capex timing and also the rationale to get into this segment. Thank you.

Abhishek Pareek

I think I would really want take this opportunity to clarify to all the company that you saw yesterday. Valisemicon is a company which is going to only manufacture to start with the components which we are consuming in the inverter manufacturing at our facility in Gujarat. So we are manufacturing inverters at a facility and we are getting the complete lockdown and we are building the inverters in a factory. We required diode for the same. This company is going to build out diodes and get the localization of diodes within the umbrella of RE Power.

And hence the corporate structure has been kept in a way that this company is a wholly owned subsidy of MARI Power Private limited which is the electronic manufacturing arm of MARI Energies.

Prakhar Porwal

Sorry just to clarify but there would be like an OSAT business in this entity, right?

Abhishek Pareek

This is a recently incorporated incorporated entity with the tie ups which have. Which are. Which are underway already. We believe that it is most critical for the. For the electronic manufacturing arm to have this business or this backward integration under its own corporate structure. And hence this decision.

Aritra Banerjee

Thank you.

Operator

Thank you sir. We’ll take the next question from the line of Praveen Sahai from PL Capital. Please go ahead.

Aritra Banerjee

Yeah. Thank you for opportunity. My question is related to the order book sequentially. If I look at There is a 7,000 crore of order decline. So can you give some color is that some order domestically because of the challenges related to the procurement or as you had highlighted you had domestically also sell procure. There is some depletion in the order book domestically.

Abhishek Pareek

So if you look at the order book around 53,000 odd crores we have delivered more than 8,400 crore of revenue already. So on a quarter, on quarter basis there’s the net, there is intake of orders. But in the ship out of order is much higher than the build out. So last quarter largely because of the disruption in the Middle east the new order from the overseas market have deferred from maybe a CO for 2/4 time. Similarly there’s lot of dispatches which are happening in the local market and in the local market if you see there is 112 which is coming up.

So many decisions in the CNI sector largely are held up because of the few people are fighting that maybe there could be some extension etc. So decisions are getting deferred. I think government has clarified a day before that at which point in time they will be able to use the earlier shipped out panel under element one category to the site so that they can actually use even after that date. I think that clarification is already under progress by the government. So because of that many decisions pushed out to next quarter and hence the net offtake from the from the local market also was slowed down.

Aritra Banerjee

Thank you, thank you for a clarification.

Operator

Thank you. The next question is from the line of Nidhi Shah from ICICI Securities. Please go ahead.

Unidentified Participant

Yeah, thank you so much for taking my question. So my question mainly pertains to our supply in the US So we already know that because of because of the restriction on Chinese cells we cannot use that in the U.S. But my question mainly remains on other components of the solar module as well, which is the solar glass, the junction box, the wafer and any other components. In order to satisfy the the US LPA guidelines, do we have to also procure those from non Ghana sources

Amit Paithankar

Except cells? No need.

Unidentified Participant

Okay. Do you think that this could come in the future?

Amit Paithankar

No, we don’t think so. But as a matter of principle and policy we are not using Chinese policy link on wafers for USA and this is all from India to US wherein US US manufacturing we have to procure all the material from the non FEOC countries.

Abhishek Pareek

So, so what that means for you? It is that if you are going to supply components to US market let’s say for manufacturing in US also be it glass cell is already restricted. So apart from the glass engine box Eva everything and anything it has to come from a non fac source starting this April 26th. So which ensures that our build out of let’s say Glass will have its market from day one as non FUC country. This non FUC clause if I would take one minute just to clarify further is an enabling factor for non Chinese players to to build out capacity outside of China and Russia and create the entire value chain for shipment to US either for distribution in US or manufacture in India and then ship to us.

Both the ways are open but FEOC is ensuring that non Chinese supply chain get a great traction in us starting this April 2026 that’s how you also see a lot of new orders coming in US from US to US because of the FAC requirements as well. And this is bound to increase only.

Unidentified Participant

All right, thank you so much.

Unidentified Participant

So while there is no way for us to quantify the Ex China market which is very very large today but it’s safe to say that it’s growing at a very high growth. US has already become local sourcing or FEOC compliant. Domestic market in India is already becoming completely dependent on local manufacturing. But even Europe has announced its intent to become an ex China sourcing market. So needless to say it’s difficult to quantify. But the Ex China market is a very high growth trajectory for several years now.

Operator

Thank you sir. The next question is from the line of Akshay Ghatani from ubs. Please go ahead.

Akshay Gattani

Hi sir. Thank you for the opportunity. So a question is related to wafers and ingots. There has been some revision both in revision to the cost of Capex and timelines. Also like Capex has been moved up to 62 billion versus 51 billion earlier and timelines are now FY28 versus FY27. So why there’s a changes like some technology related change or there’s any other region to this change in both Capex and timelines.

Abhishek Pareek

So if you look at the plan now we were originally putting up 6 gigawatt worth of facility versus now setting up 10 gigawatt of facility. Because of that and other reasons we also shifted local shifted our locations as well from earlier mentioned locations in Odisha to now Gujarat and Nagpur. So. So that’s how some delay in overall timeline. But this device campaign is for the 10 gigawatt facility altogether including the earliest gallon and additional 4 gigawatts. Hope that helps.

Akshay Gattani

Got it. Thank you sir. And what will be your timeline for glass manufacturing plant?

Abhishek Pareek

So we have mentioned in our disclosure also that we are expecting the the glass production over next 24 months of time.

Akshay Gattani

Got it. Thank you sir.

Operator

Thank you. The next question is from the line of Amitosh from 361 Capital. Please go ahead.

Unidentified Participant

Yes, thank you sir for taking my question and few questions. First on the copper and commodity pricing. I think the silver and copper pricing has been on an upward trend since the past since the past year. But the margin impact has been very severe this quarter. 590bps decline. So is there any other factor? Now of course you mentioned that we have been also procuring DC ourselves from other third parties domestically to cater to our DCR order book. So that could be the main reason for our EBITDA margin decline.

Or is this more structural and we should see EBITDA margins at 20% levels compared to 25% seen in the previous quarters.

Abhishek Pareek

So as we have said one thing, you already covered that since the overall cell production or the cell dispatch to be precise has been in line with last quarter. But overall production of modules was way higher hence the percentage wise DCR number was lower. And in fact in that as well, since we had to procure some sales and supply to our customers that also diluted the number. This is in over and above the addition of the impact of commodity price. At the same time I mentioned in my earlier reply as well that the change in overall sales mix from the overseas revenue to more of utility also had impact and some dilution in the margin overall.

Unidentified Participant

Okay, thank you. So should we see this as a structured trend or the margins are expected to bounce back from Q1 onwards. Any soft ideas as

Abhishek Pareek

I mentioned like H2 onwards since our 10 gigawatt cell is going to go live, our full throttle cell execution, 15.4 gigawatt production and the special shell start. So that will lead to a point wherein our entire requirement of cell be for the Indian market we manufactured and sourced in house. And that will give a fillip to the overall margin profile that we have today.

Unidentified Participant

Okay, thank you. And just have one last bookkeeping question. I’m sorry, so I’m

Operator

Sorry to interrupt you.

Unidentified Participant

Thank you. Thanks.

Operator

Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead.

Aritra Banerjee

Hello sir, can you hear me?

Operator

Yes sir. Please proceed.

Aritra Banerjee

Yeah, so I just have two questions. One is more or less like a clarification with respect to the margins you have guided the EBITDA level to be around 7,000 to 7,700 for the financial year at 527. So can you, can you just if possible can you just let us know whether are you sticking to the your initial guidance of maintaining the ebitda margin of 20%? 1 of that and a follow up on that as due to the increase in commodity prices, have you taken any price hike during this quarter or are you planning

Sarang Joglekar

To take any price hike in the future quarters?

Abhishek Pareek

I think I’ll again reemphasize on our earlier calls also and as mentioned by you that we’ve been guiding overall that on a long range basis if you really wish to see what is there in for the next five to ten odd years, the safest assumption there will be assume 19, 20% margin consistent for a decade long at least. Secondly, because of the effect of sales in H2 and more sales coming up in the quarter beyond that the margin profile compared to this quarter could be different because there’ll be more sales manufactured and sourced in house.

So that completely uplifts the overall margin profiles. So certainly there could be quarters wherein the margin could be much higher because of the change in mix of DCR non DCR same point in time. Relevant play also comes from the export group and export revenue in a particular quarter. If the overall overseas revenues are higher that also gives a belief to the overall margin profile of the quarter. So two to three APIs to monitor will be how much TCR manufacture and shipped out in house. Second, how much overseas revenue is there in the quarter?

Thirdly how much revenue are we also generating from our retail arm because these three put together takes care of 70 75% market and if you also look at the EPC business which is doing phenomenally well that also help us to to work out on our overall margin profile.

Aritra Banerjee

Understood? Understood sir. So and my last question is.

Operator

I’m sorry. So I would request you to kindly rejoin the queue for follow up or new questions. Thank you sir. Will take the next question from the line of Divya Patni from NVS Brokerage. Please go ahead.

Unidentified Participant

Hello. So firstly congratulations on the great set of numbers. Could you explain the current margins in your module and sell business and how we expect them going forward? And also there are concerns about the overcapacity in the module segment. So how do you see the demand versus supply shaping up and other government policies like ALM and PLI supporting in demand and pricing. That’s it.

Abhishek Pareek

Let me take up the second question first to answer the definition of supplies in the country is changing with LMM2 coming in place. The real available supply for the sector asking for DCR is not let’s say 160 gigawatt of LMO1 approved module. It is rather elevum to approved solar cell capacities integrated with module capacity. So even relevant capacity to note is 30 gigawatt today for new regulations kicking in from June 26 while the demand like in last financial year you’ve seen 5055 gigawatt of module were consumed to install 44.6 gigawatt worth of AC side of solar installations going ahead as well there’s another regulation 113 which is kicking in from 2028 which will which means that the cell manufacturers will have to integrate further with backward ingot and vapor manufacturing over next two years.

Three Years of timelines. So that point in time the again definition of supply will change over of integrated ingot, wafer cell and module capacity as a total capacity. So we really don’t foresee any scenario anytime next 5, 10 years of time will be the supply is going to be much higher than demand. Yet we foresee a balance between supply and demand. Anything that you export will be over and above but but the demand and supply largely equates with the regulations coming in at right point in time aligning with the capex by the serious players in industry.

Unidentified Participant

Okay, let me

Unidentified Participant

Some interpretation to this capacity number. There are multiple numbers out there with respect to module capacity. It could be 160 gigawatt, it could be 200 gigawatt. There is no way to ascertain clearly But I’ll just offer my bit. One is capacity which is nameplate but one has to adjust for the wafer input adjustment. So there is a 17% adjustment factor there. The other is utilization. Not the theoretical utilization could be for everybody different but the industry operates from the smaller players are much lower utilization.

The more efficient players are at 75, 80% utilization. So there is that utilization factor. The other is the efficiency factor which is the cell efficiency. So what Abhishek is trying to say is say for utilities who are looking for high efficiency modules which have to perform for 25, 30 years, the supply is not in excess, right? There could be oversupply in the lower efficiency modules but that’s not where Bari plays, right? Another interpretation of the EBITDA margin and I think a lot of you have these questions around EBITDA margin.

One EBITDA margin is a function of the proportion of module and sell and every company will have different proportions. So Bari’s module volume and value is much larger being an industry leader and that’s why module by design is higher value and and margins look lower. To give you an example, a company with no module sales and only sell will seem very high margins but the value of sale will be much lower. Right? What we emphasize from H2 the entire cell manufacturing will also be complete and operational.

Then Wadi will have the right proportion of module to sell and that’s why margins are poised to rise. There is a transition period. So please be aware of these two factors. One with respect to industry capacity and the other is the module to sell mix. Margins are an outcome. Just one more last point on EBITDA per what peak is the right way to look at it rather than percentage EBITDA margin And maybe Abhishek, you Can explain one bit on that why percentage margins actually change. So

Abhishek Pareek

I would further take this on from where Varun just lived. If you look at the pricing so there are different pricing for different markets. Let’s say if you’re shipping out export product the pricing in range of let’s say 2526 cents per Warpeak FOB basis while a domestic fertility product will be around 1617 cents. So there’s a price delta in the exports. Let’s say if you are earning around 4 to 5 cents per VOD pic your margin will be in range of around 80 90% in domestic utility, even if you are earning 2 and a half centimeter, you are still good to earn 15 16% margin.

While the EBITDA pervit profile is completely different from same panel which is manufactured. So more important to follow is how well is your sales mix coming out? Is it only going to one particular market which takes care of the overall revenue and margin mix or is it segregated to various pockets where you can really play out on the margin and also de risk your customer segments? If there’s a disruption in loan market you have alternates to deal with and supply with. Hope that helps.

Operator

Thank you sir. Thank you for answering those questions. We’ll move on to the next question which is from the line of part Shah, an individual investor. Please go ahead.

Aritra Banerjee

Hi, I wanted to know what are the timeline of fundraise and what are your plans for Indusola?

Abhishek Pareek

So as we mentioned that we are. We are going to come out with the. With the objects also in the. In the notice for the shareholder. Same point in time. You would also want to clarify on the timelines. However right now we are taking the enabling resolution to do this fundraise for next couple of months. We’ll be soon coming out with the clarification on the amount etc. Second question on the Indosolar I want to clarify since this is a call for Vari Energies Ltd. I think we can take up Indoorslab questions separately through the IR channel.

Aritra Banerjee

Okay, thank you.

Operator

The next question is from the line of Donatella VT from VT Energy please go ahead.

Donatella

Good morning to the management team and thank you for taking our question. I’m talking on behalf of Mr. Volpe. We are speaking as an early investor who has believed in worry since 2009. First of all, congratulations to Mr. Rites Dosis and the entire board on closing a phenomenal financial year achieving nearly 6,000 crore in EBITDA and reaching almost 26 gigawatt of capacities and evidence of your execution power. But Today our primary reason for speaking is to give a very warm and Official welcome to Mr.

Jygnes Rathod in his new role as a CEO. Having known Jiknish since his days leading the production division, we know as long term shareholders who first of all his technical brilliance and his dedication to this company. The Transition from Phase 1.0 to worry 2.0 couldn’t be in better or more capable hands. We see the market reaction today. But as partners since 2009, we look at the fundamentals. The vertical integration into glass and the TND acquisition are the right strategic moves according to us.

So congratulations again Mr. Doshi and Misajnas Rafud. We remain proudly by your side for this next chapter of growth. And now the question is. As you may know, the Italian government is trying to limit the usage of PV modules made in China. In Italy, 11 gigawatt of photovoltaic projects have been approved to be built with known Chinese photovoltaic modules and known Chinese cells. These projects could use WORRY modules made in India which would certainly lead to an increase in worry’s order book.

Have you considered the Italian and European markets in your development plans? Thank you.

Prakhar Porwal

Hi Ms. Donatella. Good afternoon. Nice to hear you after a long time. Give

Amit Paithankar

My regards to Mr. Walter and all family.

Donatella

He’s online. He’s online as well.

Amit Paithankar

Okay, great. Yes, Italy is always close to Mr. Doshi’s heart and entire body from where we have started. Our first line is from Italy with the capacity of 30 megawatt way back in 2007 and we love Italy. So. Yes, it is in our growth plan. We have built export team dedicated to Italy with three people and two more are joining. We are addressing our supply chain from Southeast Asia and India for Italian market. And we are very much ready to restart the Italian market which has been stopped since 2015 onwards.

We are absolutely ready for entire Europe as well.

Donatella

Okay, thank you.

Operator

Thank you.

Donatella

The next

Operator

Question is from the line of Pallavi from Samiksha. Please go ahead.

Unidentified Participant

Yes, thank you for taking my question. To know what would be the efficiency of the G12R line right now and what is expected in second half when we. When we are full? 15.25.4%

Amit Paithankar

Is the normal efficiency with phone offer cells.

Unidentified Participant

Right? And you mentioned about the savings, right? 10 to 12% savings. Is that the primary right now? This coming from the efficiency, the savings?

Amit Paithankar

No, it is from Z12R. We can make 615 watt modules. M10R was 580 watt modules. So increase of the wattage resulting into the saving the realization of the socket.

Unidentified Participant

Right. Thank you sir.

Operator

Thank you. The next question is from the line of seven. Gupta from Acmiil, please go ahead.

Sarang Joglekar

Yeah, hi, this is Karan Gupta from assets in ETA Investments. My question is the revenue mix. Just wanted to understand what is the revenue mix geographically. And the question is related to how much we have export exported to US and Europe countries. And then something if I had to BCR cell production. While the BCL cell production is so low as compared to the peers which is something close to double the. You know, basically the production of cell. So these two things are coal interrelated. So first is your geographical mix in terms of revenue and the sales production.

Abhishek Pareek

So in terms of the geographical mix in the overall overseas revenue. Since we have manufacturing in US itself and we’re also exporting from India as well. So our overall revenue from overseas more than 90% shall be from US markets alone. The remaining is from markets when we have started to explore and also started to ship out materials. However, over next few months we see a great amount of opportunity coming in from European market and African market as well. In fact, in the Middle east market also we have started to receive the enquiries for build out of large farms over there for Indians.

So that means not just yours, there are three markets which have US equivalent potential to consume overall renewables. Be it Africa together, European markets or Middle East. So we really foresee a very diversified overseas market as well. Going ahead, answer to your question number two. Around lower production on dcr. As you have explained in the earlier questions as well that since we have been Transitioning now from M10 to G12R size of cells. Hence there have been some lag in the production of cell.

But this will have benefit starting from a quarter down the line wherein we will see 10, 12% of production from the same lines resulting into higher realizations for the. For the long term.

Sarang Joglekar

Okay. Okay. Utility, retail, ipc, all are domestic.

Abhishek Pareek

Sorry, you couldn’t get that question.

Sarang Joglekar

Utility, retail, epc. All our domestic revenue mix.

Abhishek Pareek

Yes, yes, yes. In the. In the revenue mix. Yes, you’re right.

Sarang Joglekar

Okay. Okay. Thanks. Thank you. Thank

Operator

You. Thank you. Sir, we’ll take the next question from the line of abhishek negam from motilalos1.

Prakhar Porwal

Yeah, hi. Thank you so much for the opportunity. Again, just. I know this, this question was. I think you know, it came up a little earlier in the call. But just on the cash conversion cycle and the working capital days. If I look at numbers in the last year, FY25 overall working capital cycle was around 45 odd days, which is now closer to 90 odd. So is this what we should sort of, you know, build in? Go ahead. And do you think that, you know, it’s a sign that there is more sort of capacity in the industry and so the working capital is, you know, getting a little favorable in terms of the customers or how should we think about it now?

Abhishek Pareek

So there are two areas to look at to understand this better. First is the effect of inventory, higher inventory, which I also explained in my earlier reply that in the March ending quarters the overall inventory has gone to the roof because of lower shipments for the overseas market. Number two, the advance from customers has remained steady and strong. Even the levels are also similar. But because the overall run rate of production has almost doubled in a year’s time while the absolute number of advances were same.

Hence the effect on the working capital cycle. So despite the high advance from customers even today, but because of higher sales numbers, the dilution in terms of working capital days, I hope these two put together explains the effect of cash conversion in the cash flow.

Prakhar Porwal

So just just one clarification on that. So the percentage of advance, let’s just say assume you were asking for say a 5% advance earlier, is it still 5% or has it say gone down to say two and a half or something?

Abhishek Pareek

In fact not 5%. We have seen when we have been getting advances to the tune of 10% to 20% also in few cases and other few cases 5% also

Aritra Banerjee

The

Abhishek Pareek

Trend. However because of geopolitical reasons the tendency to be higher upfront advances for long term contracts. The same set of customers has moved towards more advance at the time when you start the production or start the raw material procurement. So you won’t get that much of higher advance on the day one of signing off. But certainly we continue to receive advances before we start the dispatch or the production also. So our overall cash remains in the same environment of no credit policy.

But yes, this will have an effect in the number of days of advance from customers.

Prakhar Porwal

Okay, I think that

Unidentified Participant

Abhishek, just to add to while you’re right on asking about the working capital, but we shouldn’t take our eyes off the main true north roc and despite the rise in working capital, our ROC remains truly top quartile.

Operator

Thank you sir. The next question is from the line of Mitesh Mehta from Long Term Investment Group. Please go ahead.

Unidentified Participant

Good evening and congratulations for great set of number. Most of my question questions have been taken up but I am keen to know how companies planning for non US and non Indian market.

Amit Paithankar

That’s what we said. Europe is our next big destination. Africa and Middle East.

Unidentified Participant

Okay, copy

Amit Paithankar

Everything.

Unidentified Participant

Okay. So we can expect say some 15, 20% revenue three years down the line from non US and non Indian market.

Amit Paithankar

3% down the line. Yes, but it is down the

Unidentified Participant

Line. Yeah.

Operator

Thank you. Sir, the next question is from the line of Aritra Banerjee from Nomura. Please go ahead.

Aritra Banerjee

Yeah, thank you for picking up my question again. So just wanted to understand you know regarding the BS’s business. So what are the kind of unit economics and margins that we can expect and what will the contribution from FY29 of that Bass business to worry structural revenue and EBITDA

Abhishek Pareek

For someone to understand best business? I think I’ll fall short of time if I start trying explaining what the economics. But what I can do for you is make it little easier on the best business. The basic conversion plus the raw material that we will require for manufacturing of cell plus the viewers cost are rocs and roe are falling in the current range of delivered rocs and roes over the historical numbers. To explain it further you expect the business to generate around 18 to 20% margins without any support from the policy perspective or any mode of regulatory inculcated if at all.

There are. There are policies which are more conducive for global manufacturing which we are certainly hopeful as we keep hearing from the government as well that they are going to support make in India for the entire value chain. I think the numbers could change. But the basic business economics considering the ample demand coming from states market and now from Middle east market also wherein customers are asking for alternate supply solution for energy storage. I think this is the time to do the manufacturing deployment so that we have enough of capacity available.

Aritra Banerjee

Yes, understood. And any sort of revenue color for FY29 or any timeline that is happening have in mind for revenue contribution from bss.

Abhishek Pareek

I think it is too early to comment on any guidance around the revenue in FY29 for this. But if you wish to calculate anything you can take up the total capacity that we are setting up 20 GWh. You can also take an assumption from market around the average price per megawatt R. For the best In India and US the average would come around 110 to 120 odd dollars. I think you’ll get some sense of the numbers that can come out from this business. But right now too early to comment.

Aritra Banerjee

Understood sir. Thank you. Thank you.

Unidentified Participant

I think we’ll all agree that Bess is One of the biggest enablers of the entire energy transition. It is the most critical component for even solar to accelerate during the non solar hour. Because whatever surplus energy that gets created during solar hours can now be stored and that gives new wings to solar manufacturing. With respect to revenues and all, obviously we can’t put a number but the industry number is that India would need anywhere close to 60 to 80 gigawatt hour of Bess annually. And the cumulative number that is put out by Niti Aayog in Mnre is that India needs to get to 300 gigawatt hours of Bess over the next five to seven years.

Vadi’s 20 gigawatt hour is just a beginning. I think the Runway of growth and capacity is multi decade in this segment. So let’s. Let’s be patient about how best segment plays out that has the potential to create a new bari in itself. It would take a few years to get there.

Operator

Thank you sir. The next question is from the line of Sushil Choksi from Indus Equity. Please go ahead

Unidentified Participant

Sir. Congratulations for very stable numbers. When do you what do you forecast as your cell production in second half for the year and next year on establish capacity which you highlighted.

Abhishek Pareek

So if you wish to get a sense of cell difficult to give exact number but I can give you some range like on the existing cell capacity of 5.4 gigawatts you can expect in the H2 because there are six months. I’ll cut down the capacity from 5.4 to 2.7. Effectively you expect at least 90, 95%, 95% of production in second half itself for the new build out 10 gigawatt capacity in H2. Since the ramp up will happen over three to six months of time, we can expect some bit of number from that capacity as well.

Unidentified Participant

Can you just give an indicator number for. Let’s assume for FY28. Forget 27. And second thing, what is the total production increase you are estimating from existing capacity line which you are converting?

Abhishek Pareek

All right, so FY28, you know we have entire 15.4 gigawatt cell capacity available for complete gel ordnance. The safe assumption could be to assume 85 to 80, 85% utilization on the full year scale for FY28 on the cell capacity,

Unidentified Participant

How much will you use for DCR and scheme like Cosome and Surya out of that

Abhishek Pareek

Cell that we are going to manufacture largely is right now planned for the domestic markets only. So that means not majority. In fact almost 1995% or maybe 98% shall be used for the local DC market unless there’s a. Unless there are, there are like we are. We keep hearing now from Italy market, from French markets that the requirement of non Chinese supply chains are coming a big way if at all that also opens up we may use something in those markets but too early to comment.

Unidentified Participant

Entire Europe market is open for replacement which has implemented between 2005-10. So is Europe market likely to fetch you a better price or domestic bcr? And second thing the top one price and monopoly. What is the price differential as on today?

Abhishek Pareek

So for us to see a comparison between European market and DCI market right now the pricing and DCR market are fairly priced in the European market. The orders are even coming for the full stack solution, not just the panel. So good news for us, a player like us wherein we not just supply the panel, we give the entire EPC solution, transformers, TND services. The number is very exciting. Let’s say if we are constructing a solar farm in India with DND if the cost is coming around 3 and a half to 4 crore per megawatt same price, same set of plant in Europe would cost around 20 to 30% higher.

So for us the realizable value for same set of megawatts on an overall system basis is very high when we go outside of India be it US markets or be it European markets. That’s why Wari 2.0 is very essential for us if we really wish to take out larger pie of the cake which is there for next decade. And hence all these segments which are going to set their assets starting H2 this year and big way in FY28 we will really see numbers moving basis those capacities and setting of those capacities. Can

Unidentified Participant

I assume that in FY28 first half will be lower number at 50 60% of the new capacity and second half would be at 8090 on a blended basis it would be at 80.

Abhishek Pareek

So I think difficult to comment exact percentage but you can reasonably expect that 15 gigawatt cell capacity will be used reasonably the next financial FY28 28 gigawatt of model capacity global capacity including 4.2 in US and another 24 gigawatt in Indian markets will be used at full throttle. Some bit of base capacity which is coming this year 3.5 gigawatt will be can will be used for entire next financial year. 20,000 MBA worth of transformer capacity will be consumed throughout next financial year.

Electrolyzer capacity of 1 GW yes available for entire year 4 GW worth of inverter capacity. Yes available for entire year. In fact on top of it the EPC company with an acquisition of transmission and distribution arm is APSL will be also available to capture a good amount of share in the market of EPC in India and overseas as well. So answer to you will be next year FY28 Warrior 2.0 will start showing its results. The compounding of assets that we are trying to create over years and the and the impact of large scale deep integration and penetration all working together to build a new worry.

Unidentified Participant

The current year which went by.

Unidentified Participant

Sorry to interrupt Mr. Choksee. Maybe request you to return to the question queues that are participants waiting for the attorney. Thank you. The next question is on the line of Abhishek Kansara from Axi Asset Management Private Limited. Please go ahead.

Sarang Joglekar

Hi, good afternoon. Thank you for taking my question. So my question was how much would be the production from our US arm and how much will be the IR rebate that we have received this quarter. Whether this IRR rebate is included in the revenue number or our other income.

Abhishek Pareek

So for in the US markets the the overall revenue in last financial year was 1 gigawatt plus

Aritra Banerjee

Wherein

Abhishek Pareek

Around 85 to 90% was manufactured locally. From our own flag fee we have been getting IRA for $0.07 per watt peak against per wattpick of panels sold. There are some cost to incur when you convert that into cash. So we factor around 87 88% only of the eligible IRA. So last financial year roughly around $40 million was our community benefit from IRA. However this year when we start another 2.6 gigawatt facility in US and the earlier line also runs at full throttle, the overall effect in IRA will be multifold naturally.

Sarang Joglekar

Thank you sir.

Unidentified Participant

Thank you. Thank

Abhishek Pareek

You.

Unidentified Participant

The next question is on the line of Rahul Rohit from Ambit Wealth. Please go ahead.

Prakhar Porwal

Hi, thanks for the opportunity. So it would be really helpful if you could throw some light on ALM2. There’s a lot of ambiguity in terms of when will the alm2 demand actually kick in in India. So you know if you could give some on ground reality on this would be really good.

Amit Paithankar

Very difficult to answer which government also not able to answer so far speculations are

Unidentified Participant

Going on but I think within a week we will have a clarity from government. I think the intent is absolutely clear that the government wants to transition to as much local manufacturing of cell eventually ingood wafer, power electronics, everything. The question is about three months here and there and the timeline if you see ALM1ALM1 now is successfully and fully implemented adopted by the industry. So cell manufacturing related ALM2 is just about, you know almost formalization. The 1st of June it comes into effect.

Operator

Thank

Unidentified Participant

You. The next question is on the line from Anandrati Shares and Stock Brokers Ltd. Please go ahead.

Unidentified Participant

Thank you for taking the question again Just wanted to understand in our swell comments you’ve mentioned that the higher commodity prices have now been started reflecting in our realizations as well. Wanted to know the current order book obviously is at the last quarter numbers or reflecting the price hike that we’ve taken to factor in these commodity prices.

Abhishek Pareek

Thanks for asking this question Shweta. I think I’ve tried to clarify in my earlier answer as well that the effect has started to see on the ground in terms of pricing conversion however there were not many intake of orders because of decisions on policy and clarity. Also in the overseas market because of the global tension the intake was comparatively lower. So yes, we can rightly assume that now all the existing pipeline, all the current order which are going to intake are going to factor in the price Naturally

Unidentified Participant

That would be reflected.

Unidentified Participant

May we request that you return to the question. There are participants waiting for their turn.

Unidentified Participant

Shweta, just to acknowledge the report that you released had very good industry insights Especially clarifying on the over capacity issue nuancing this high efficiency and you know areas. I think that was very well covered in your industry report.

Unidentified Participant

Thank you Phil. The next question is on the line of Rajesh Kapadia from Raj Investments. Please go ahead.

Unidentified Participant

Hello.

Unidentified Participant

Yes Rajesh please.

Unidentified Participant

Yes sir. Thank you for taking my question and congratulations on good set of numbers. Sir, this is question regarding our subsidiary Indo Solar. Will you answer that question?

Aritra Banerjee

No,

Abhishek Pareek

So I’ll. So we would request that we can get that question right into the IR team of Indus a lot. We shall get back to you over there.

Aritra Banerjee

Okay. Okay, thank you.

Unidentified Participant

Thank you. The next question is on the line of Harshit Jain from. From pojc. Please go ahead.

Aritra Banerjee

Hello. Yes sir. Sir, I’m audible.

Prakhar Porwal

Yes,

Aritra Banerjee

Yes sir that currently with the large Capex announcement we have done across the new verticals are these business expected to deliver high ROC and ROE with the current level or should we expect some dilution at the company level as they scale up?

Abhishek Pareek

In fact in the earlier calls in our presentations we have tried to communicate this that the decision making for allocating capital by the board is largely driven by the division of return on the capital which is a very essential method for us. So historically we have seen the projects of ROCs and ROE to the tune of 20 to 25% have been approved. Same is the case with current projects also so you can reasonably expect to get delivery of similar set of return on capital from the investments that we are making.

Aritra Banerjee

Mr.

Unidentified Participant

Jain, maybe request that you return to the question queue there are participants waiting. Sure

Aritra Banerjee

Ma’. Am. Thank

Unidentified Participant

You sir. The next question is in the line of Sarang Joglaker from Vimana Capital. Please go ahead.

Sarang Joglekar

Yeah hi. Thanks for the opportunity. I just want to understand demand supply scenario in the non DCR market. I mean you addressed this before but just a clarification because now that ALCN is also there some speculations on that getting deferred do you see any pressure in this non DCR market? Now

Abhishek Pareek

As covered in the earlier question that yes, because of some speculations some decisions especially on the CNI and MID markets are being deferred facing the assumption that there could be some change over in the timelines But I think we should wait on and see wait for the. For the developments, regulatory developments.

Sarang Joglekar

Understood but do you see any supply pressure because of that any pricing competition?

Unidentified Participant

So I think we’re not clear about your question but the mood premises that the entire market will move to DCR as soon as AM2 is is is instituted Right. And with respect to supply cell supply do you mean about that that there’s a shortage of.

Sarang Joglekar

No, I mean that if that is ALCN is deferred and there’s already a lot of modules supply do you see a scenario where the smaller module players would be much more aggressive in pricing to you know take advantage of that deferred period.

Abhishek Pareek

So you may expect some cases wherein the players who are in the race or mode of survival may even get down to any point of price that can’t be ignored but fact here is the buyers, the cni, the utilities, anyone are looking for suppliers who are able to demonstrate warranty servicing over next 30 years so someone struggling for survival supplying at the cheapest majority of CNIs are always take this precaution. In fact the banking institution also now has started to acknowledge the fact that they are funding those projects wherein the visibility of the OEM to continue catering the warranties for next 25 and 30 years is reasonably well going ahead the majority of financial markets the banking fraternity acknowledging more for large scale quality suppliers who have ground performance, track record, bare minimum certifications all in a line of what has happened in the western market is something that we are waiting to watch for and this is.

I think this is going to reward those players who are continuing to perform supply and are also now able to do backward integration in line with the government’s expectations of element 2, 3 and maybe many more to come.

Prakhar Porwal

Got it. Thank

Unidentified Participant

You. The next question is from the line of Akash Sherwat, an individual investor. Please go ahead

Prakhar Porwal

Before the opportunity. Sir, actually I want to know your view regarding green Advisor. Sir, just want to know that whether when green hydrogen can become commercially viable on a large scale and what scope do you see for the green hydrogen and its derivatives such as green ammonia and green methanol in coming years?

Abhishek Pareek

Thank you for asking this very relevant question in current context where in the entire Middle east market and the markets dependent for gas supplies on this particular chunk are waiting to see an alternate problem. The Indian market has started to see traction towards green hydrogen and ammonia and other derivatives out of it. Already we are in discussion with many clients and customers who are asking us to commit supply of long term contracts for hydrogen for their manufacturing capacities. Those who are in the chemical sector, those who are in the steel plant manufacturing and many more players.

Similarly there are discussion within the blending of hydrogen could be allowed in the Indigas system as well. So once the decisions by the regulators come in for blending of hydrogen and other localization of green ammonia in the urea etc. I think there will be a gold rush towards getting hydrogen and green ammonia in house in the country.

Prakhar Porwal

Sir, one more question. Sorry

Unidentified Participant

To interrupt Mr. Shirwat. That was the last question. We could take

Prakhar Porwal

The last question if.

Unidentified Participant

Thank you ladies and gentlemen, as there are no further questions from the participants I now hand the conference over to Mr. Jignesh Rathod for his closing comments.

Unidentified Participant

One point that Vari has pivoted to multiple areas of growth consistently over the years. It was primarily a domestic company four or five years back or before. And then came the exports opportunity. And today we’re talking about retail being such a large part of revenue and being a new additional growth lever. We’re talking about global manufacturing out of us being additional growth lever. We’re talking about new business segments emerging. So I think given the challenges which could be geopolitical, which could be supply chain, which could be domestic regulations.

Bari has always found its way to scaling and finding new areas of growth. I think what Abhishek and Jignesh Bhai alluded right in the beginning, no single channel, no single market, no single customer or business segment will dominate. And over time it will de risk both horizontally and vertically.

Amit Paithankar

Thank you. Thank you all ladies and gentlemen for your time. Your patient hearing and your continuous trust in wadi. It has been a pleasure to share with you yet another robust performance, and we remain confident in the growth opportunities that light up ahead. We’re also excited to invite you to our Investor Day, an exclusive event where our leadership team will showcase our strategy in action across multiple business segments. The event is intended to provide deeper insight into our strategic priorities and the next phase of our growth journey.

You can get in touch with our investor relations team for registration process. Thank you once again. We look forward to speaking with you again next quarter. Thank you.

Unidentified Participant

Thank you members of the management team. Ladies and gentlemen, on behalf of Wari Energies Ltd. That concludes this conference call. We thank you for joining us and you may now disconnect your lines. Thank you.