Australian Prem

Australian Premium Solar is significantly expanding its Topcon solar panel manufacturing capacity by 800 megawatts. The first phase, comprising 400 megawatts, is slated to be operational by June 30, 2025, with the second phase expected within 12 months thereafter. This expansion is critical to meet the robust demand from various segments, including ground mounting projects, residential rooftop installations under government schemes, and solar pumps. The total cost for this 800 MW expansion is estimated at approximately $8 million (₹65-70 crores), which will be funded through a bank loan.

Management provided strong guidance, projecting a Compound Annual Growth Rate (CAGR) of 70-75% for revenue over the next two to three years. Concurrently, the operating margin is expected to be in the range of 11-14%. The company noted an increase in wholesale business profitability to 6% and distribution business profitability to 10%, attributing this to high demand that currently exceeds their fulfillment capacity. The existing 280 MW manufacturing capacity is capable of generating ₹450 crores in annual turnover, highlighting the significant revenue potential from the expanded capacity.

APS is strategically focused on expanding its domestic market presence. While previously concentrated in Gujarat, the company has now extended its operations to Rajasthan, Maharashtra, Himachal Pradesh, Jharkhand, MP, and Tripura. The immediate strategy prioritizes wholesale distribution, retail distribution, and solar pump tendering, followed by project supply, before considering exports. Management explicitly stated no short-term export plans for the next 9-12 months due to strong domestic demand and the ongoing capacity expansion.

The company maintains a disciplined approach to working capital, currently operating with very low debt and without utilizing cash credit or overdraft facilities. For its distribution model, APS generally offers zero credit, with residential rooftop sales having a 4-week cycle and solar pump sales (government-backed) taking 6-10 weeks. The working capital requirement for the expanded 800 MW capacity is estimated at ₹80 crores, calculated based on a projected ₹600 crores revenue from this capacity. Pricing for non-DCR modules ranges from ₹13.5-14.5 per watt, while DCR modules are priced higher at ₹22.5-23.75 per watt, with Topcon variants adding ₹1-2 per watt.

APS is exploring opportunities in battery storage solutions, noting the increasing demand for midsize batteries (1-2 MW) and emerging tenders in India. An investment of approximately $10 million would be required for such a venture. However, management indicated that this is a longer-term plan, with the immediate focus on stabilizing the 800 MW Topcon facility and awaiting clarity on government policies and secured business. The company also hinted at potential backward integration into solar cell manufacturing, stating it is 'the way to go' for APS, with more details to be revealed soon.