Australian Prem — Q1 FY26 earnings call

For solar cell. So, solar cell the capacity as you said, 800-900 crore. Out of it, say, for example, I mean the capacity is INR 900 crores, out of which 30%, that is around INR 250-300 crore would be funded by the promoter, APS, and some fund raising too and the rest will come from that.

Clarifies the significant capital expenditure and funding strategy for the new 1 GW solar cell plant, which is a key vertical integration move.

Asked by Pranav Jain

So once our own right now, we have got more demand for the DCR panels. But since the supply is short, I mean, we are not being able to cater to that demand. So once we will have our own manufacturing of solar cell, we will be able to supply to APS for its own project as well as to the other people as well. So when it is supplying to our own APS, then, obviously, we are going to they will have some cost benefit, and that will improve our margin. ... It may increase the margin by probably another percent or so. I mean, probably from a 100-basis point to 200 basis point. It will add to the EPS margin.

Explains the strategic rationale for solar cell manufacturing, highlighting expected margin improvement of 100-200 bps and ability to meet DCR panel demand.

Asked by Pranav Jain

So, we have the 600-megawatt line, 400 megawatt Monopark line, 200-megawatt poly line, but now from last, this quarter, we have isolated that 200-megawatt line. So, currently, 400 means last three to four months, 400 megawatt Monopark line is up and running, which is we are utilizing almost 80 to 85% of this line. The new top line will be up and running from the next month. So, overall, I mean, from 600, it will be one, but 200 will be isolated, which is already isolated now. So, we can say currently we have 400-megawatt line, 400, which will be phase one for Topcon, and then it will be 400 again. So, it will be 1.2-gigawatt total.

Provides a detailed breakdown of current and planned module manufacturing capacity, including utilization rates and the transition to Topcon technology.

Asked by Raman KV

So as you may already heard before, there are two types of modules available in a market. One is DCR content. DCR means which we must have to utilize the solar cell, which are manufactured in India. The non-DCR means the manufacturing overseas solar cell we can utilize. There is almost 10 to 11 rupees difference. So, if the non-DCR is currently 1250 to 1350 up to 14, then the DCR is INR 24 to 25 rupees per watt. So, one megawatt is 2.4 to 2.5 crores per DCR. If it is a non-DCR, it's 1.3, 1.2 to 1, means 1.25 to 1.4 crores.

Crucial insight into pricing and profitability differences between domestically sourced (DCR) and imported (non-DCR) solar cells, impacting revenue and margins.

Asked by Raman KV

Only that we have is a term loan term loan of about right now at the end of the June, it will be about 20 crores because we are buying machinery, that CapEx for the machinery that new coming and the old one. ... By end of the year, probably, we are looking for because we are growing exponentially. We are looking to have some fund-based limit just to get the approval so that we are not in shortage of fund. Like INR 25 crores, probably, it will be there at the end of the year, but I'm not too sure that we are not going to use most of them.

Clarifies the company's low debt position (₹20 crores term loan) and plans to secure additional fund-based limits (₹25 crores) for future growth, emphasizing a conservative approach to debt.

Asked by Saumil Shah

The cash flow, just because I would like to add here, if you see the last year cash flow, it is actually positive. And just this quarter, it has been negative. And Nikunj bhai just said that we had to pay a handsome amount of deposit for us securing this contract of hundred and fifty megawatt from Jupiter. We paid about 10 crores of deposit. Plus, we had to do our CapEx for our building, plus thirty percent contribution that we had to pay for machinery. So that is why our cash flow is negative. ... Now our cash flow should be positive probably in coming quarters.

Explains the reasons for negative cash flow in Q1 (large deposit and CapEx) and provides an outlook for positive cash flow in subsequent quarters.

Asked by Jenil

So usually like in solar cycle, H1 is always on the slower side, usually and H2 is always better than the first H1 because in during this h one is a monsoon and everything is there. So installation and everything is not possible, transportation is a problem because as if we are doing 30-40% of our turnover from solar pump, which is agriculture filled in the rural area. So the roads are not that good. That kind of problem arises. So that is why H1 is that is always on the slow side.

Provides context on the seasonal nature of the solar business, particularly impacting the pump segment due to monsoons and logistical challenges in rural areas.

Asked by Jenil

See, China currently, still, there's nothing wrong to say if China holds the market, it can affect in near future to India. But take, our government long term future, say, like, if we say from 1st June 2026, they want to bring the ALMC program as well. That means everybody must have to use the Indian made solar cell. That means we will come across in, in solar cell and then maybe they are thinking for wafer and then polysilicon as well down the track. So, from now onwards, next three years, it will take, maybe up to three years for India to be totally independent in solar.

Addresses the strategic risk of dependence on China for solar components and outlines the government's long-term plan for India to achieve self-sufficiency in solar manufacturing within three years.

Asked by Krunal