Concall AI

Australian Prem — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Australian Premium Solar (India) Ltd. delivered a robust H1 FY26 performance, marked by significant revenue and profit growth, driven by strong demand and operational efficiencies. The company expanded its manufacturing capacity to 800 MW with the commissioning of a new 400 MW TopCon line and plans further backward integration into solar cell manufacturing. Despite facing industry-wide margin pressures and short-term execution challenges, APS maintains a healthy balance sheet and is strategically positioned for continued growth through diversified segments and capacity expansion.

Highlights

Total income for H1 FY26 stood at INR 302.93 crore, a strong growth of 84.5% year-on-year compared to INR 164.24 crore in H1 FY25.
EBITDA increased by 121.9% to INR 43.28 crore, with the EBITDA margin improving to 14.29% from 11.88% in the prior year.
PAT grew 118.7% to INR 28.60 crore, and PAT margin expanded by 148 basis points to 9.44%.
The company successfully commissioned a new 400 megawatt TopCon line in October, bringing total capacity to 800 megawatts.
Maintained a healthy financial position with a net debt-to-equity ratio of just 0.05 as of September 2025.

Concerns

Experienced 'GST regulation challenges for three weeks' and 'better monsoon' which impacted project execution.
Anticipates 'pressure on the margin for upcoming years' in the industry, though expects to offset this with top-line revenue and vertical integration.
Wholesale segment margins might slightly decrease due to competition, potentially from 10.50-10.74% down to 10% max.

Key financials

01 Total Income ₹302.93 Cr +84.5%YoY
02 EBITDA ₹43.28 Cr +121.9%YoY
03 EBITDA Margin 14.3% +20.3%YoY
04 PAT ₹28.6 Cr +118.7%YoY
05 PAT Margin 9.4% +18.6%YoY
06 EPS ₹14.19 +114%YoY

What they filed

Q4 FY26: revenue up 234.7%, net profit up 163.6% against the same quarter last year.

₹ Cr · quarterly

Line item	Q4 FY24	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q4 FY26
Revenue	75	82	164	121	275 +267%	152 +85%	302 +84%	405 +235%
Expenses	70	72	145	105	238	131	260	354
EBITDA	5	10	19	16	38 +660%	21 +110%	43 +126%	52 +225%
Margin	6%	12%	12%	13%	14%	14%	14%	13%
Other income	3	0	0	0	2	0	0	0
Interest	0	0	0	1	1	0	2	3
Depreciation	1	1	2	1	2	1	4	6
Profit before tax	7	9	17	15	36 +414%	20 +122%	38 +124%	43 +187%
Tax rate	15%	25%	25%	25%	25%	26%	25%	32%
Net profit	6	7	13	11	27 +350%	14 +100%	29 +123%	29 +164%
EPS	3.12	3.32	6.63	5.75	13.68	7.19	14.19	14.51

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Turnover

₹301.89 Cr Total

Wholesale Distribution ₹165 Cr 54.7%
Solar Pump ₹102.89 Cr 34.1%
Retail (EPC, Rooftop, C&I) ₹34 Cr 11.3%

Order book

medium confidence

Execution

Solar pump order book executable over the next four to six months.

Composition

Solar Pump (segment) ₹310 Cr

The company only quantified the order book for its solar pump segment, which stands at INR 310 crores. No overall company-wide order book figure was provided.

Source: Q&A

Capital allocation

high confidence

Capex ₹900 Cr 30% equity and 70% debt
- One gigawatt solar cell manufacturing facility (first phase) ₹900 Cr
First phase will be one gigawatt machinery, which requires 900 to 950 crores CapEx. ... we are expecting, uh, to invest, uh, 30%, uh, in a business and 70% will come pro- by debt.
Debt Debt disclosed

On the balance sheet front, the company continues to maintain a healthy financial position with a net debt- debt to equity ratio of just 0.05 as of September 2025... our debt levels are, uh, very, very low. Almost nil, I think.
Liquidity Liquidity disclosed The company reported strong cash generation.

reflecting our prudent capital management and stro- strong cash generation.

Guidance & targets

Capacity

Total Manufacturing Capacity Capacity · Q1 FY27 · High confidence 1.2 gigawatts

The overall, first quarter of the next financial year, our total capacity will be 800 plus 400, 1.2 gigawatt.

— Nikunj Patel
400 MW TopCon Line Output Capacity · November 2025 · High confidence 30% output

So this month we are expecting 30% output

— Nikunj Patel
400 MW TopCon Line Output Capacity · December 2025 · High confidence 60-62% output

the next month we are expecting 60, 62, uh, si- uh, 50 to 60%

— Nikunj Patel
400 MW TopCon Line Output Capacity · January 2026 · High confidence Full capacity

and month after we are expecting, uh, full capacity because we need some ramp-up time.

— Nikunj Patel
1 GW Solar Cell Manufacturing Facility Operational Capacity · June 2027 · High confidence Operational

Now,the cell manufacturing takes 18 to 20 months just to start. So it will up and running on a 26, 27th, after June 27th.

— Nikunj Patel

Revenue

CAGR Revenue · Current and Coming Year · Medium confidence 75% plus

overall, we are expecting 75% plus CAGR for this year and coming year.

— Nikunj Patel
Solar Pump Segment Revenue Contribution Revenue · FY26 · High confidence 35 to 40%

the solar pump segment is showing the continuous momentum and we are expecting 35 to 40% revenue from this segment, um, for this financial year

— Nikunj Patel
EPC Division (C&I) Growth Revenue · Ongoing · High confidence 15 to 20%

Our EPC division also growing their C&I segment, not only in Gujarat, but also in Maharashtra and Rajasthan and we are expecting 15 to 20% growth from our EPC division.

— Nikunj Patel
Wholesale Distribution Revenue Contribution Revenue · FY26 · High confidence 50%

We are expecting 50% revenue from this division for this financial year.

— Nikunj Patel
1 GW Solar Panel Manufacturing Turnover Revenue · Full 12 months (post-commissioning) · High confidence 1,200 crores

But one gigawatt solar panel, we can expect a, 1,200 crores turnover from the solar panel manufacturing

— Nikunj Patel
Overall Turnover (with 1 GW facility) Revenue · Full 12 months (post-commissioning) · High confidence 1,500 to 1,800 crores

So overall, once we, we as a APS have a one gigawatt facility and, uh, up and running, um, at full 12 months, we can expect above, uh, 1,500 to 1,800 crores turnover.

— Nikunj Patel

Margin

Pump Division Margin Margin · Ongoing · High confidence 12 to 15%

the prom- pump division is 12 to 15%.

— Nikunj Patel
Wholesale Division Margin Margin · Ongoing · High confidence 10 to 11%

Uh, for wholesale, we are expecting 10 to 11%

— Nikunj Patel
Retail Division Margin Margin · Ongoing · High confidence 15 to 18%

for retail we are expecting 15 to 18%.

— Nikunj Patel
Overall Margin Performance Margin · Ongoing · Medium confidence Better than last year

Um, we, we will maintain, and we are pushing for the little bit better performance than the last year.

— Nikunj Patel

What to watch in Q3 FY26

Ramp-up of 400 MW TopCon Capacity

next 2 months

Current 30% output in November 2025

Target 60-62% output in December 2025, full capacity by January 2026

Why it matters

Successful ramp-up is crucial for realizing revenue and margin benefits from the newly commissioned capacity.

So this month we are expecting 30% output, the next month we are expecting 60, 62, uh, si- uh, 50 to 60%, and month after we are expecting, uh, full capacity because we need some ramp-up time.

Risks & concerns

Industry-wide margin pressure
medium

Anticipated pressure on margins in the upcoming years, but management expects to offset this through top-line revenue growth and vertical integration.

Management acknowledged
Potential overcapacity in indigenous solar module manufacturing
medium

Analyst raised concerns about overcapacity by FY27; management countered by emphasizing India's rapidly growing energy demand and APS's diversified portfolio.

Analyst downplayed
Execution challenges due to external factors
low

GST regulation challenges for three weeks and better monsoon conditions created challenges in project execution.

Management acknowledged
Increased competition in wholesale segment
low

Wholesale margins might see a slight decrease due to competition, potentially dropping to 10% max from current 10.50-10.74%.

Management acknowledged

Q&A highlights

7 direct

Current Order Book and Execution Timeline Direct

So for solar pump our order book is INR 310 crores at the moment. ... For four to six months and then other division is we just do as it comes.

Provides specific quantification and timeline for a key segment's order book, indicating near-term revenue visibility.

Asked by Raman

Capacity Transition and Disposal of Poly Capacity Direct

Um, the, in, uh, month of March, we, when we had a 600, we had a 400 monocrystalline and 200 megawatt poly capacity. Okay. So the poly capacity now we already sold means those machinery, so now we have 400 megawatt monocrystalline and 400 megawatt TOPCon facility because for poly panels, there is no demand overall. ... it's at metal price, means that, uh, scrap price but I can check and let you know. It won't be much. Okay. Maybe less than INR 50 lakhs.

Clarifies the company's strategic shift from poly to TopCon technology due to market demand, including the financial impact of selling old machinery.

Asked by Raman

Segmental Margin Profile Direct

Uh, for wholesale, we are expecting 10 to 11%, for retail we are expecting 15 to 18%.

Provides crucial insight into the profitability of different business segments, aiding in valuation and understanding revenue mix impact.

Asked by Archit Agarwal

Solar Cell Manufacturing Timeline and Funding Direct

Now,the cell manufacturing takes 18 to 20 months just to start. So it will up and running on a 26, 27th, after June 27th. ... we are expecting, uh, to invest, uh, 30%, uh, in a business and 70% will come pro- by debt.

Details the timeline and funding structure for a major backward integration project, which is critical for future growth and margin expansion.

Asked by Archit Agarwal

Overcapacity Concerns in Indigenous Solar Module Market Partial

If we see the China overall energy demand before 20 years, it was 400 gigawatt active power station requirement and currently India is also on 400 gigawatt active power requirement. ... So e- of course India have 20 to 30%, um, uh, there will be 20 to 30%, uh, additional capacity but each and every month there is not a symmetrical demand, like 6 to 9 months India need say like, If we need a 50, 48 gigawatt requirement every year it's not like 4 gigawatt requirement coming every year, some month it come in six gigawatt.

Addresses a key industry-wide concern, with management providing a perspective on India's growing demand and the company's diversified portfolio as a buffer.

Asked by Achut Prabhak

Sustainability of Margins Direct

Um, margin, of course, the ma- there will be... There should be some, uh, pressure on the margin for upcoming years, but, uh, it will be adjusted by the, uh, uh, top-line revenue. And as long as we are entering in the vertical integration, the margin will also, um, uh, will be increased also. So for next, uh, uh, I believe from now up to five years, um, uh, uh, Indian renewable energy margin will be sustainable.

Clarifies management's view on future margin trends, acknowledging potential pressure but outlining strategies (vertical integration, top-line growth) to maintain sustainability.

Asked by Achut Prabhak

KUSUM Scheme Working and Market Share in Solar Pumps Direct

In solar pump, it, it's by tender and it's by qualification criteria. So until now, uh, solar pump tenders, say, uh, hardly 15, 20 or maximum 30 players can be qualified for a solar pump pay tenders and they usually, they need like a 1,000, 2,000, 5,000, 10,000 solar pump experience. So, um, maybe the new players, it's not very easy entry for solar pump segment.

Explains the competitive landscape and entry barriers in the solar pump segment, highlighting APS's established position through experience and qualification criteria.

Asked by Nimit Mehta

Social Media Marketing Strategy Direct

Um, I have three suggestions. Uh, this strategy is okay, but you need to be more proactive. For example, when I look in the, on the social media, I find your presence is hardly there. ... I will put some additional pressure on, uh, our team, and we will make that achieve.

Highlights a potential area for improvement in marketing and brand visibility, with management acknowledging and committing to address it.

Asked by Sandeep Kapoor

2 min read 5 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

Australian Premium Solar reported robust financial results for H1 FY26, with total income surging 84.5% year-on-year to INR 302.93 crore, up from INR 164.24 crore in H1 FY25. EBITDA saw an even higher growth of 121.9% to INR 43.28 crore, leading to an EBITDA margin expansion to 14.29% from 11.88%. Net Profit After Tax (PAT) also increased significantly by 118.7% to INR 28.60 crore, with PAT margin expanding by 148 basis points to 9.44%. EPS for the period was INR 14.19, up from INR 6.63 in the previous year.

Strategic Capacity Expansion and Ramp-up

The company successfully commissioned a new 400 megawatt TopCon line in October, bringing its total manufacturing capacity to 800 megawatts (400 MW monocrystalline + 400 MW TopCon). This new line is expected to ramp up to 30% output in November, 60-62% in December, and full capacity by January 2026. An additional 400 megawatt facility is planned to commence operations in Q1 FY27 (April-June 2026), which will further boost total capacity to 1.2 gigawatts.

Diversified Segmental Performance and Outlook

APS operates across three key segments: solar pump, wholesale distribution, and retail/EPC. For the April-September quarter, the solar pump segment generated INR 102.89 crore in turnover with a 15% margin, while wholesale distribution contributed INR 165 crore with a 10.25% margin. The retail/EPC business (rooftop, C&I) recorded INR 34 crore in turnover with 15-18% margins. The company is expanding its retail/EPC presence to Rajasthan and Maharashtra, and wholesale distribution to Madhya Pradesh, Chhattisgarh, Haryana, and South India, aiming for a 75% plus CAGR for the current and coming year.

Backward Integration into Solar Cell Manufacturing

To enhance profitability and secure long-term supply, APS is pursuing backward integration by establishing a 1 gigawatt solar cell manufacturing facility. This project, requiring a CapEx of INR 900-950 crores, is expected to be operational by June 2027, taking 18-20 months from approval. The CapEx will be funded 30% by equity and 70% by debt. Management anticipates this facility to generate INR 1,200-1,800 crores in turnover annually once fully operational.

Financial Discipline and Market Dynamics

The company maintains a healthy financial position with a net debt-to-equity ratio of just 0.05 and strong cash generation, reflecting prudent capital management. Despite industry-wide margin pressures and execution challenges from GST changes and monsoon, management believes its diversified portfolio and vertical integration strategy will sustain margins. They also highlighted India's robust and growing solar energy demand, expecting 40-50 GW solar annually, which mitigates concerns about potential overcapacity in the indigenous solar module market.

This is an AI-generated summary of a publicly available earnings call transcript.

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