Australian Prem — Q4 FY26 earnings call

Call held 27 May 2026

Management summary

Australian Premium Solar (India) Ltd. reported a strong FY26, with total income growing over 60% and PAT increasing by 44.3%, driven by robust demand in solar modules, EPC, and solar pumps. The company successfully commissioned a new 400MW Topcon line, expanding total capacity to 800MW, and plans further expansion. While facing some margin pressure from raw material costs and increased receivables from the solar pump segment, management expressed confidence in future growth, targeting 30-35% revenue growth for FY27 and strategically pivoting towards BESS opportunities over solar cell manufacturing.

Highlights

  • Total income for FY26 grew 60.70% YoY to ₹708.74 crore, reflecting strong demand.

  • EBITDA for FY26 increased 62.6% to ₹95.6 crore, with EBITDA margin improving marginally to 13.49% from 13.33% in FY25.

  • PAT for FY26 grew 44.3% to ₹57.87 crore, and EPS increased to ₹28.70 from ₹20.31 in FY25.

  • Successfully commissioned a 400-megawatt Topcon solar module manufacturing line, reaching 800 megawatts total capacity.

  • Strong traction in the solar pump business, expected to contribute 35-40% of revenue by FY27.

Concerns

  • Experienced approximately 2% margin pressure in the last 3-6 months due to raw material price increases (glass, aluminum).

  • Trade receivables significantly increased to ₹160 crore as of March 31, 2026, primarily from the solar pump segment with a longer collection cycle of 90-120 days.

Key financials

2 periods

H2 FY26

  • Total Income
    ₹405.8 Cr
    YoY +46.6%
  • EBITDA
    ₹52.32 Cr
  • PAT
    ₹29.26 Cr

FY26

  • Total Income
    ₹708.74 Cr
    YoY +60.7%
  • EBITDA
    ₹95.6 Cr
    YoY +62.6%
  • EBITDA Margin
    13.5%
  • PAT
    ₹57.87 Cr
    YoY +44.3%
  • EPS
    ₹28.7
  • Net Worth
    ₹164.28 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

Share of Turnover
₹405.47 Cr Total
  • Pump Segment (H2 FY26) ₹203.1 Cr 50.1%
  • Wholesale Segment (H2 FY26) ₹168.37 Cr 41.5%
  • Retail Segment (H2 FY26) ₹34 Cr 8.4%

Order book

high confidence

Total value

₹220 Cr

as of 2026-05-27 range

Execution

Wholesale distribution for next couple of months; pump segment cycle 90-120 days.

Composition

Mix 3 segments
  • Solar Pump 68%
  • Wholesale Distribution 23%
  • Retail Rooftop 9%

Share of order book by segment

The company maintains a conservative approach to order booking, focusing on short-term EPC projects (1-2 months) to manage raw material price volatility and avoid aggressive pricing in long-term tenders.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed Loan for machinery almost paid.
    • Commissioning of 400-megawatt Topcon solar module manufacturing line
    • Remaining 400-megawatt expansion for module manufacturing
    • BESS assembly line machinery (3 GWh capacity) ₹20 Cr
    The remaining 400-megawatt expansion is progressing and is planned and is expected to become operational by August 2026... 3 GWh BESS assembly line will cost in terms of machinery, it will cost up to 20 crores... I believe the loan is I think it's almost paid deposit and everything.
  • Debt Debt disclosed
    On the balance sheet side, the company continues to maintain a healthy position, almost debt-free position.

Guidance & targets

Revenue

  • Revenue growth Revenue · FY27 · High confidence 30-35%
    We are expecting 30 to 35% growth this year

    — Nikunj Patel

Profitability

  • Margin Profitability · Next financial year (FY27) · Medium confidence slightly better margin
    so we are expecting slightly better margin for next financial year than this year.

    — Nikunj Patel

Revenue Composition

  • Solar pump contribution to revenue Revenue Composition · FY27 · High confidence 35-40%
    expect solar pumps to contribute nearly 35 to 40% of revenue by financial year 2027.

    — Nikunj Patel

Net Asset Growth

  • Net asset increase Net Asset Growth · Next three years · High confidence Minimum 30%
    in mean terms, we do have expectation to increase minimum 30% of our net asset per year, you know.

    — Nikunj Patel

EBITDA Margin

  • EBITDA Margin for Pump segment EBITDA Margin · Next one year · High confidence 12-14%
    Pump might have the margin of about the 12 to 14%.

    — Kalpesh Vakharia

  • EBITDA Margin for Wholesale/Project Distribution EBITDA Margin · Next one year · High confidence 7-9%
    Wholesale that distribution side plus the project distribution of would be probably in the range of about 7 to 9%.

    — Kalpesh Vakharia

  • EBITDA Margin for Retail Rooftop/C&I EBITDA Margin · Next one year · High confidence 13-15%
    And retail rooftop and C&I sector would have a margin of about probably 13 to 15%.

    — Kalpesh Vakharia

BESS Capacity

  • Initial BESS assembly line capacity BESS Capacity · Medium confidence 1 GWh
    We are expecting 3 GWh utility again for space for BESS and we will start from 1 GWh in terms of assembly.

    — Nikunj Patel

BESS Timeline

  • Concrete news on BESS timeline BESS Timeline · Next quarter · High confidence Within a quarter
    maybe within a quarter we will have a more concrete news with the timeline.

    — Nikunj Patel

What to watch in Q1 FY27

BESS Project Timeline Update

Within a quarter
Current Searching for staff and location for BESS operations.
Target Concrete news on BESS timeline.

Why it matters

Progress on the BESS project timeline is crucial for assessing the execution of this new strategic direction and potential future revenue streams.

We'll we are in search of some staff and proper location for that and maybe within a quarter we will have a more concrete news with the timeline.

Risks & concerns

  • Raw Material Price Volatility

    medium

    Experienced ~2% margin pressure in H2 FY26 due to rising glass and aluminum prices, managed by short-term orders and price revisions.

    Management acknowledged

  • Increased Trade Receivables

    medium

    Trade receivables increased due to high growth in the solar pump segment, which has a longer payment cycle of 90-120 days, but collections are ongoing.

    Analyst acknowledged

  • Grid Instability for Ground-Mounting Projects

    low

    Grid instability is a short-term problem and affects only 2-3% of APS's turnover, primarily for >4MW ground-mounting projects.

    Analyst downplayed

Q&A highlights

8 direct
FY27 Growth Guidance and Margin Outlook Direct
We are expecting 30 to 35% growth this year and we are looking for a little bit better margin than this this last three or four to six months because we lose around 2% margin due to some due to war and other situation because some of our projects was already we received in month of December with certain prices and the glass price increase and then aluminum price increase.

Provides specific growth and margin expectations for the upcoming fiscal year, along with reasons for past margin pressure.

Asked by Krunal Patel

Impact of Solar Cell Policy and Backward Integration Direct
So, we are not just depend on our manufacturing business projects, 50% or sometime more than 50% of our profit comes from our EPC and our project businesses. We have a strong stakeholders who support who are supporting us from last 10 years and they are very capable supplying as per the upcoming policy for APS demand for upcoming years.

Clarifies the company's strategy regarding solar cell sourcing and its diversified business model, reducing dependence on module manufacturing alone.

Asked by Krunal Patel

Grid Instability and BESS Opportunities Direct
BESS upcoming BESS policy and requirement is based on the grid instability. First, means grid could be unstable the way we are growing. So, but that is not a long-term problem, that is just a short-term problem. In last 12 months in APS overall turnover maybe hardly 2 to 3% business we have achieved from the ground-mounting projects.

Addresses a key sector-wide concern (grid stability) and positions BESS as a strategic solution, while clarifying its limited impact on APS's current business.

Asked by Krunal Patel

Increase in Trade Receivables Direct
Our the trade receivable has increased basically because of our substantial investment in solar pump. If you see the solar pump in the last six months in the last six months to March 26 has done turnover of more than 200 CR. And it has got the pump segment has particularly got a cycle of 90 to 120 days.

Explains the reason for the significant increase in debtors, linking it to the high-growth solar pump segment and its longer payment cycles, providing context for a balance sheet concern.

Asked by Pankaj Sachdeva

Sustainable EBITDA Margins by Segment Direct
Pump might have the margin of about the 12 to 14%. Wholesale that distribution side plus the project distribution of would be probably in the range of about 7 to 9%. And retail rooftop and C&I sector would have a margin of about probably 13 to 15%.

Provides detailed margin guidance across key business segments, crucial for financial modeling and understanding profitability drivers.

Asked by Ishima Bansal

BESS Entry Strategy and Capex Direct
I will answer that. See, as I already said, like we will start say usually 3 GWh BESS assembly line will cost in terms of machinery, it will cost up to 20 crores. And to do the projects, it's depend on the size of the project, but currently we have to keep the good size you know tier-one quality, which is very important.

Outlines the company's initial BESS investment plan, including capex and strategic focus on smaller projects and quality.

Asked by Ishima Bansal

Shift from Solar Cell Manufacturing to BESS Direct
And we believe there is a no need for APS to enter in the solar cell business rather than that we better enter or invest our hard-earned money and investors' invested money in the business where we can manage our financial discipline and future growth... So, that means this BESS section which we are going to start in our company, so that is the better opportunity rather than solar cells. Is it right, sir? Nikunj Patel: In the so yes, that's what my personal view is.

Confirms a significant strategic pivot away from solar cell manufacturing towards BESS, explaining the rationale behind this capital allocation decision.

Asked by Sumit Sharma

Raw Material Sourcing Mix Direct
Yes, 60% domestic, 40% imported.

Provides insight into the company's supply chain and exposure to international raw material price fluctuations.

Asked by Rahul Sharma

3 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY26

Australian Premium Solar (India) Ltd. delivered robust financial results for FY26, with total income surging by 60.70% year-on-year to ₹708.74 crore, up from ₹441.14 crore in FY25. EBITDA also saw significant growth of 62.6%, reaching ₹95.6 crore compared to ₹58.81 crore in the previous fiscal year, with a marginal improvement in EBITDA margin to 13.49%. Net profit after tax (PAT) increased by 44.3% to ₹57.87 crore, and earnings per share (EPS) rose to ₹28.70 from ₹20.31 in FY25.

Capacity Expansion and Utilization

A key milestone for the year was the successful commissioning of a 400-megawatt Topcon solar module manufacturing line at the Prantij factory, elevating the company's total module manufacturing capacity to 800 megawatts. The remaining 400-megawatt expansion is on track and anticipated to become operational by August 2026. This additional capacity is expected to support future growth plans and meet increased demand across both domestic and export markets, with the company already having building utilities in place for the full 800MW.

Strategic Pivot to BESS and Diversified Business Model

The company is actively evaluating opportunities in Battery Energy Storage Systems (BESS) and captive power solutions, viewing BESS as a more promising avenue than further investment in solar cell manufacturing. Management plans to allocate 50% of future profits back into APS and the other 50% into new businesses like BESS, aiming for multi-fold growth. An initial 3 GWh BESS assembly line is planned, with machinery costing up to ₹20 crore, and concrete news on the timeline is expected within a quarter.

Solar Pump Business as a Key Growth Driver

The solar water pump business demonstrated strong traction, driven by government initiatives like PM-KUSUM and increasing rural adoption. This segment is projected to contribute significantly, with an expectation of 35% to 40% of total revenue by financial year 2027. For H2 FY26, the pump segment alone generated a turnover of ₹203.1 crore, highlighting its growing importance and good profit margins despite longer payment cycles.

Managing Raw Material Volatility and Trade Receivables

APS experienced approximately 2% margin pressure in the last three to six months due to rising raw material costs, including glass and aluminum, exacerbated by geopolitical events. However, the company manages this by taking short-term EPC projects (1-2 months) and revising selling prices monthly in line with raw material fluctuations. Trade receivables increased significantly to ₹160 crore as of March 31, 2026, primarily due to the high-growth solar pump segment, which has a longer payment cycle of 90-120 days, with approximately ₹50 crore already collected.

FY27 Outlook and Segmental Margins

For FY27, the company guides for a 30-35% revenue growth and anticipates slightly better margins compared to FY26, driven by improved pricing power. Segment-wise, EBITDA margins are expected to be 12-14% for the pump business, 7-9% for wholesale and project distribution, and 13-15% for retail rooftop and C&I sectors. The company also aims for a minimum 30% increase in net assets annually over the next three years, reflecting its focus on financial discipline and risk management.

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