Australian Prem — Q4 FY25 earnings call

Call held 21 May 2025

Management summary

Australian Premium Solar reported a strong FY25, nearly tripling its turnover to INR 438.87 crores, with H2 PAT growing 170%. The company is aggressively expanding capacity with a new 400 MW Topcon line expected by August 2025 and significant CapEx planned for FY26 and FY27. While targeting 75% CAGR for the next two years, the retail segment's growth was intentionally limited in H2 FY25 due to DCR solar cell supply constraints.

Highlights

  • FY25 Turnover of INR 438.87 crores, almost tripled from FY24's INR 149 crores.

  • H2 FY25 PAT of INR 26.71 crores, representing 170% growth from H2 FY24.

  • New 400 MW Topcon line (expandable to 800 MW) expected to be operational by August 2025.

  • Long-term growth target of 75% CAGR for the next two years.

  • Expected revenue of INR 800 crores with 20-30% EBITDA from planned 2GW utility and 1GW machinery.

Concerns

  • Retail segment growth was intentionally stagnant in H2 FY25 due to limitations in Domestic Content Requirement (DCR) solar cell supply.

  • Management avoids taking long-term orders for solar panels due to high price volatility and variable costs.

  • Supply chain issues noted for DCR solar cells and components like glass/frame, though managed through existing relationships.

Key financials

3 periods

H2

  • FY25 Turnover
    ₹275 Cr
  • FY25 PBT
    ₹36.13 Cr
  • FY25 PAT
    ₹26.71 Cr
    YoY +170%

FY24

  • Turnover
    ₹149 Cr

FY25

  • Turnover
    ₹438.87 Cr

What they filed

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

₹ Cr · quarterly
Line itemQ4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q4 FY26
Revenue75 82 164 121 275 +267%152 +85%302 +84%405 +235%
EBITDA5 10 19 16 38 +660%21 +110%43 +126%52 +225%
Net profit6 7 13 11 27 +350%14 +100%29 +123%29 +164%
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

  • Distribution
    50% Share of Business
  • Pump Segment
    35% Share of Turnover₹300 Cr Turnover
  • Wholesale
    ₹400 Cr Turnover
  • Retail & C&I
    10% Share of Turnover

Order book

high confidence

Total value

₹300 Cr

as of 2025-05-21 quantified

Execution

Usually, 12 to 15 months, and that's the tender guidelines as well.

Composition

  • Pump Segment (product) ₹300 Cr
Management avoids taking future long-term orders for solar panels due to high price volatility and variable costs, focusing on monthly orders for distribution and daily orders for retail.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹150 Cr Equity fundraising, bank loans, internal accruals, and other government agency bank loans.
    • Panel facilities and cell facilities
    Okay. So the first year will be INR 150 cr until this for FY 2026. And then from FY '26 to '27, there will be another INR 850 cr.
  • Debt Debt disclosed Cost 10%
    • New borrowing Loan application for INR 25-30 crores in process, expected to be below 10% interest. ₹25 Cr
    It's like bank like HDFC and BOB, so it should be below 10%.
  • Liquidity Liquidity disclosed 60-70% of the business is cash and carry, with no short-term liquidity issues currently.
    So our 60% to 70% business is cash and carry, and only a few % of the business is holding some money. So currently, in short term, I don't see any liquidity issue currently.

Guidance & targets

Revenue Growth

  • CAGR Revenue Growth · next two years · High confidence 75%
    In long term growth for next two years, we are looking up to 75%, CAGR.

    — Nikunj Patel

EBITDA Margin

  • EBITDA Margin EBITDA Margin · from new 2GW utility and 1GW machinery revenue · High confidence 20-30%
    expected revenue will be up to INR 800 crores with EBITDA of 20% to 30%.

    — Nikunj Patel

Capacity Expansion

  • Topcon line operational Capacity Expansion · by August 2025 · High confidence August 2025
    procurement from 400-megawatt Topcon line is already done. We are expecting that up and running by month of August, which is further expandable up to 800-megawatt Topcon machinery.

    — Nikunj Patel

Production Volume

  • Solar panel production Production Volume · this year · High confidence 900,000 panels
    But our planning to produce around 900,000 solar panel for this year with the existing machinery and new machinery.

    — Nikunj Patel

Capacity Utilization

  • New 400MW capacity utilization Capacity Utilization · Oct-Dec 2025 · High confidence 50%
    So 400-megawatt new capacity, which will be up and running from, say example, September, October, so means from October, November, December, that capacity utilization first maybe 50% and the next quarter, it will be 70%.

    — Nikunj Patel

  • New 400MW capacity utilization Capacity Utilization · next quarter (after Oct-Dec 2025) · High confidence 70%

    — Nikunj Patel

Solar Cell Plant

  • Commercial production start Solar Cell Plant · by end of FY27 · High confidence end of FY27
    It will be end of March 2027 probably because it takes at least 18 to 24 months. So we expect it to be by end of FY '27.

    — Kalpesh Vakharia

Debt

  • Debt status Debt · FY27 and FY28 · Medium confidence debt free
    But our goal for '27 and '28 will be we come out of debt.

    — Nikunj Patel

Capex

  • Capex for FY26 Capex · FY26 · High confidence INR 150 cr
    Okay. So the first year will be INR 150 cr until this for FY 2026. And then from FY '26 to '27, there will be another INR 850 cr.

    — Nikunj Patel

  • Capex for FY27 Capex · FY27 · High confidence INR 850 cr

    — Nikunj Patel

What to watch in Q1 FY26

New Topcon line commissioning and utilization

next quarter / H2 FY26
Current Expected to be up and running by August 2025
Target Operational with 50% utilization in Oct-Dec 2025, 70% in the following quarter

Why it matters

Successful commissioning and ramp-up of the new Topcon line is crucial for achieving capacity expansion and revenue growth targets.

procurement from 400-megawatt Topcon line is already done. We are expecting that up and running by month of August, which is further expandable up to 800-megawatt Topcon machinery. ... So 400-megawatt new capacity, which will be up and running from, say example, September, October, so means from October, November, December, that capacity utilization first maybe 50% and the next quarter, it will be 70%.

Risks & concerns

  • Price volatility in solar panels

    medium

    Management avoids long-term orders due to variable costs and factors in the solar panel market, impacting order book strategy.

    Management acknowledged

  • Supply chain for DCR solar cells

    medium

    Domestic Content Requirement (DCR) solar cell supply was a challenge, but managed through long-term contracts with suppliers like Jupiter.

    Management managed

  • Supply chain for glass and frame

    medium

    Recent duty changes on glass and frame caused short supply, but managed through good relationships with overseas and local suppliers.

    Management managed

  • High CapEx requirement for future expansion

    medium

    Significant CapEx of INR 150 cr for FY26 and INR 850 cr for FY27 is planned, requiring careful funding management through equity, debt, and internal accruals.

    Management acknowledged

Q&A highlights

4 direct
Request for Quarterly Financial Reporting Partial
I don't have quarterly for the first two quarters, but I have got for the first half year that 163.75 was there for the first 6 months, okay? And quarter ending December, INR 163.75 crores. That was for September 2024. Then December 2024, it was INR 121 crore.

Analyst requested more frequent reporting (quarterly) to track progress, indicating a desire for greater transparency and detailed operational updates.

Asked by Agastya Dave

FY25 Solar Panel Production Volume Direct
It will be exactly 320,000. It's 320,000.

Provides a key operational metric (panel volume) for the full fiscal year, allowing for better understanding of capacity utilization and growth.

Asked by Agastya Dave

CapEx Split for FY26 and FY27 Direct
Okay. So the first year will be INR 150 cr until this for FY 2026. And then from FY '26 to '27, there will be another INR 850 cr.

Clarifies the significant capital expenditure plans for the next two fiscal years, crucial for assessing future growth and funding requirements.

Asked by Agastya Dave

Order Book at March 31, 2025 Partial
So as per Kalpesh, currently, we have around INR 300 crores for pump retail. ... We don't take future long term orders because there are so many factors in solar panel and the cost and everything is very, very variable.

Highlights the company's strategy of not maintaining a large, long-term order book for solar panels due to market volatility, focusing instead on shorter-term, higher-margin orders, particularly in the pump segment.

Asked by Pranav Goel

Timelines for Initiating Exports Partial
So I think until it will be when we will start seeing some extra gap or we see, okay, maybe three months, six months later, we will have some extra gap. But that time, we will start because it only takes three months for us to set up the export... I don't think so in near future, we require to sell it in overseas, at least 5 to 15 months.

Indicates that exports are not an immediate priority due to strong domestic demand and full capacity utilization, suggesting a focus on the Indian market for the near to medium term.

Asked by Amit Agicha

Reasons for PAT Margin Expansion Direct
One is our turnover itself say, we've gone from 150 crores to 430 plus. So and earlier year, because we were planning to expand, we had, say example, more staff, even we had the bigger infrastructure and everything. And that's why most of our profit was going to as expenses. But this year, because of those expenses we have done last year, we could achieve better result this year.

Explains that margin expansion was primarily driven by significant turnover growth and better absorption of fixed costs after previous investments in infrastructure and staffing.

Asked by Jayaraj Jai

Retail Business Decline in H2 FY25 Direct
Because retail, we haven't focused to expand in last six months, because the DCR requirement are limited. And all the retail business where we are, we must have to use the domestic content solar cell. So we just make that segment intentionally stagnant because the DCR, as we were discussing DCR solar cell, it was the same supply, it was limited by supply.

Reveals a strategic decision to limit retail growth due to DCR solar cell supply constraints, indicating a proactive management of segment focus based on resource availability.

Asked by Yogesh Zambare

Institutional Investor Interest Partial
Not at the moment, Haru. But maybe once the time will come, we will definitely let the people know as well. But maybe not in next, at least four to not 8 to 12 weeks at least, but maybe after that, we will review our applications and our requirement, and then we will go ahead.

Suggests potential future engagement with institutional investors, which could be significant for funding large CapEx plans and enhancing market visibility, though not in the immediate short term.

Asked by Haru Punjabi

2 min read 5 chapters

Detailed narrative

Strong Financial Performance and Growth Trajectory

Australian Premium Solar reported a robust financial performance for FY25, with turnover reaching INR 438.87 crores, nearly tripling from INR 149 crores in FY24. The second half of FY25 saw a turnover of INR 275 crores, with Profit Before Tax (PBT) at INR 36.13 crores and Profit After Tax (PAT) at INR 26.71 crores, marking a 170% growth in PAT from H2 FY24. Management attributes this significant growth to turnover expansion and better absorption of fixed costs, leading to improved margins.

Aggressive Capacity Expansion Plans

The company is undertaking aggressive capacity expansion, with a new 400 MW Topcon line expected to be operational by August 2025, further expandable to 800 MW. Groundwork for a 4-gigawatt land acquisition for solar cell manufacturing is nearly complete, with plans for 2GW utility and 1GW machinery. This expansion is projected to generate INR 800 crores in revenue with an EBITDA margin of 20-30%. The solar cell plant is expected to commence commercial production by the end of FY27, following an 18-24 month development timeline.

Strategic Capital Expenditure and Funding

Total CapEx for FY26 is projected at INR 150 crores, followed by INR 850 crores for FY27, covering both panel and cell manufacturing facilities, including working capital. The company is funding these expansions through a mix of equity fundraising (INR 18 crores already raised), bank loans (INR 25-30 crores in final stages of approval with interest rates below 10%), and internal accruals. The long-term goal is to become debt-free by FY27-28, despite the significant CapEx.

Segmental Focus and Market Strategy

Australian Premium Solar's business is diversified across three main segments: distribution (50% of business), pump (35-40% of turnover, with an order book of INR 300 crores), and retail/C&I (10-15% of turnover). The retail segment's growth was intentionally slowed in H2 FY25 due to Domestic Content Requirement (DCR) solar cell supply limitations. However, the company plans to expand its C&I segment from the current quarter. Management emphasizes a strategy of not taking long-term orders for solar panels due to price volatility, preferring monthly orders for distribution and daily orders for retail.

Government Support and Export Outlook

The company benefits from favorable government policies, including INR 1 crore+ rooftop incentives for the retail segment over the next three years and clear policies for the pump segment until 2030. While the Indian market offers strong opportunities, exports are not an immediate focus due to full domestic capacity utilization. The company will consider exports when additional capacity becomes available, likely within 5-15 months, after obtaining necessary IEC certifications.

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