Ganesh Green — Q2 FY26 earnings call

Call held 20 Nov 2025

Management summary

Ganesh Green reported an exceptional H1 FY26, with revenue and PAT growing by 145% and 151.62% respectively, driven by strong order execution and increased capacity utilization. The company is strategically shifting focus towards higher-margin EPC work and new ventures like BESS, while managing a robust INR 976 crore order book. Despite slight margin compression due to market dynamics, management is optimistic about H2 performance and future growth, though new manufacturing initiatives will demand substantial working capital.

Highlights

  • Revenue for H1 FY26 was INR 342 crores, marking a significant 145% year-on-year growth.

  • PAT for H1 FY26 reached INR 32.88 crores, an impressive 151.62% increase compared to H1 FY25.

  • EPS for H1 FY26 stood at INR 13.26, reflecting a 92.75% year-on-year growth.

  • The company's 1.1 gigawatt solar PV module plant is now operating at full capacity, with a target to improve utilization from 69% to 85-90% within the financial year.

  • A robust order book of INR 976 crores provides strong revenue visibility for the next two quarters, with 60-65% expected to be executed in H2 FY26.

Concerns

  • EBITDA margin for H1 FY26 was 14.61%, slightly lower than 16.27% in H1 FY25, attributed to competitive pricing in the EPC segment and temporary softness in module supply and prices.

  • Moving into cell manufacturing or battery storage systems will require a significant increase in working capital, with an estimated INR 100 crores needed for battery storage system working capital alone.

  • Rate fluctuations in raw materials, dollar exchange rates, and Chinese transportation costs pose a risk to margins and necessitate keeping a shorter order book of 6-7 months.

Key financials

  1. Revenue ₹342 Cr +145.5%YoY
  2. EBITDA ₹50.02 Cr +120.9%YoY
  3. EBITDA Margin 14.6%
  4. PAT ₹32.88 Cr +151.6%YoY
  5. PAT Margin 9.6%
  6. EPS ₹13.26 +92.7%YoY
  7. Operating Cash Flow ₹25.89 Cr

What they filed

Q4 FY26: revenue up 714.6%, net profit up 250.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue77 89 133 181 339 +340%725 +715%
EBITDA5 19 19 27 47 +840%62 +226%
Net profit2 12 13 17 33 +1550%42 +250%
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

  • Solar PV Module
    65% Revenue Contribution
  • EPC Solar Allied Services
    33% Revenue Contribution
  • Electric Services
    2% Revenue Contribution

Order book

high confidence

Total value

₹976 Cr

as of 2025-09-30 quantified

Execution

Order book provides visibility for the next two quarters, with 60-65% expected to be executed in H2 FY26.

Composition

  • Solar Module Supply (product)
  • Solar EPC Allied Services (service)

Pipeline

qualified rfp

Participated in tenders for BESS and other projects.

We keep an order book of 6, 7 months due to rate fluctuations and market volatility.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Module manufacturing capacity expansion from 450 MW to 750 MW, then to 1.1 GW.
    • Future BESS and cell manufacturing.
    So, we increased the capacity by 750-megawatt instead of 450-megawatt. When the IPO came, then every year we are doing turnover double and profit double in our business.
  • Liquidity Liquidity disclosed Operating cash flow for H1 '25 was strongly positive at INR 25.89 crores, supported by tight receivable management.
    I wish to report that our operating cash flow for H1 '25 strongly positive INR25.89 crores. This reflects the cash generating quality of our business and demonstrated our focus on working capital discipline and efficient execution. We improve our working capital through the tight receivable management.

Guidance & targets

Growth

  • Profit and Turnover Growth Growth · Every year · High confidence Double every year
    Our maximum focus is that every year whatever the target is, our target is to double the profit and turnover every year. Even before IPO, our target was to double the profit and turnover every year.

    — Ketan Patel

  • Turnover Growth Growth · Next year · High confidence Double
    Next year, the target is of a double turnover.

    — Ketan Patel

  • Potential Growth Growth · Next year · Medium confidence 80-100%
    So next year, as of now, we understand that there can be a potential growth of 80%-100%.

    — Ketan Patel

Capacity

  • Cell Manufacturing Start Capacity · by January 2028 · Medium confidence January 2028
    If the government promotes the Cell then if it supports local manufacturing, then we will start cell manufacturing by January 2028.

    — Ketan Patel

Utilization

  • 1.1 GW Module Plant Utilization Utilization · within this financial year · High confidence 85-90%

    Previously 69% → 85-90%

    We are targeting a significant improvement in utilization from the current 69% to the nearly 85% to 90% within this financial year.

    — Krunal Shah

Profitability

  • Margin with BESS Profitability · Next year · Medium confidence 9-11%
    If we add BESS, our margin will increase a little. Next year, we are coming in BESS. We have started participating in tenders. So, our margin can increase a little next year. It is not that much, but it will remain from 9% to 11%. It will affect slightly.

    — Ketan Patel

  • Water Supply Project Margin Profitability · High confidence 15%
    Its margin is around 15%.

    — Krunal Shah

  • BESS/Cell Manufacturing EBITDA Margin Profitability · Medium confidence 12-15%
    Broadly. As of now, there is a lot of error, but we can normalize it. If it becomes normal, then there is money for technology. Still, it will be around 15% to 12%.

    — Ketan Patel

Revenue

  • BESS Revenue Revenue · Next year · Medium confidence INR 500-600 crores
    According to the roadmap for BESS. We are targeting around INR500 to INR600 revenue next year from BESS.

    — Ketan Patel

Order Book Execution

  • Order Book Execution in H2 FY26 Order Book Execution · H2 FY26 · High confidence 60-65%
    So, out of the INR976 crores order book, 60-65% of the order book will be executed in our second half.

    — Krunal Shah

What to watch in Q3 FY26

1.1 GW Module Plant Utilization

within this financial year
Current 69%
Target 85-90%

Why it matters

Increased utilization is expected to significantly boost operational performance and overall profitability.

We are targeting a significant improvement in utilization from the current 69% to the nearly 85% to 90% within this financial year.

Risks & concerns

  • Margin pressure from competitive pricing and market softness

    medium

    EBITDA margin slightly lower in H1 FY26 due to competitive pricing in EPC and temporary softness in module supply and prices.

    Management acknowledged

  • Volatility in raw material prices, dollar exchange rates, and transportation costs

    medium

    Rate fluctuations impact order book planning and margins, leading to shorter order book cycles (6-7 months).

    Management acknowledged

  • High working capital requirement for new manufacturing ventures

    medium

    Future cell and battery manufacturing will require substantial working capital, e.g., INR 100 crores for battery storage system working capital.

    Management acknowledged

Q&A highlights

7 direct
Capacity Expansion vs. Utilization Strategy Direct
The current capacity is 750 megawatt. We have increased it to 1.1 gigawatt. So, normally what happens is that the utilization is more than the capacity expansion... So, we thought that if we utilize this line as much as possible, then the capacity of the line that we have increased now, we have increased it to 350 megawatts. It has become 1.1 gigawatt. So, we will take the line from 85% to 90% utilization first.

Clarifies the company's immediate focus on optimizing existing capacity utilization (85-90%) rather than solely expanding nameplate capacity, indicating a pragmatic approach to growth.

Asked by Soham Shah

Order Book Management and Margin Impact Direct
In the order book, we don't plan much in advance. Because the rate goes up and down at any time. So, there is an effect on the margin. So, normally, we keep an order book of 6, 7 months.

Explains the rationale behind maintaining a shorter order book (6-7 months) due to market volatility, raw material price fluctuations, and currency movements, which directly impact project margins.

Asked by Soham Shah

BESS Business Entry Strategy Direct
We have started participating in tenders... We will not go into manufacturing now. Because if we talk today, it will be wrong. The rate of China, we bring BESS from there. If we do manufacturing here, it will be costly. So, we are going into EPC now. We will go into EPC. Government will put duty today or tomorrow.

Details the phased entry into the BESS segment, prioritizing EPC work first due to cost advantages of importing BESS from China and awaiting potential government support for local manufacturing.

Asked by Soham Shah

Working Capital Needs for New Manufacturing Direct
Yes, we need working capital in the battery also. If we put a line in the battery storage system, then it will be around INR20 crores. But in that, we need INR100 crores of working capital.

Highlights the significant working capital requirements (INR 100 crores for battery storage) that will be necessary for future manufacturing expansions in new business areas like BESS and cell production.

Asked by Paras Chheda

Shift in Business Focus to EPC Direct
Now, we will increase the work in EPC. Earlier we were increasing our capacity of the model. With that, we will focus more on EPC because it gets a good margin ratio. And if you take your own model, then you can easily complete the site on time. So, we will focus more on EPC... So, this is the try. 50% should be kept and 50% should be sold in the market.

Indicates a strategic pivot towards increasing EPC work due to better margin ratios and execution control, aiming for a more balanced revenue mix between EPC and module sales.

Asked by Maitri Shah

Margins in Water Supply and T&D Projects Direct
Now, we get a margin of 15% for the water supply, from 12% to 15%. In the last two years of Bihar, we had a margin of 16-17%. Now, the rate has increased. So, there is a little competition as well. So, we will get a margin of 12-15%.

Provides specific margin expectations for the water supply segment (12-15%), noting a slight decline from previous years due to increased competition.

Asked by Maitri Shah

H2 FY26 Order Book Execution Plan Direct
Yes. As we told, we have executed only 35% of the order. According to our run rate, our turnover is 35% in H1. So, out of the INR976 crores order book, 60-65% of the order book will be executed in our second half.

Confirms the company's plan to execute a significant portion (60-65%) of its current INR 976 crore order book in H2 FY26, providing clarity on revenue conversion.

Asked by Darshan Gala

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

Ganesh Green reported an exceptional H1 FY26, with revenue growing 145% year-on-year to INR 342 crores, driven by strong order execution in module supply and rising demand in solar EPC. PAT surged 151.62% year-on-year to INR 32.88 crores, resulting in an EPS of INR 13.26, nearly doubling from H1 FY25. The company also achieved a positive operating cash flow of INR 25.89 crores, reflecting robust working capital management and efficient execution.

Capacity Expansion and Utilization Focus

The company successfully expanded its module manufacturing capacity from 750 MW to 1.1 GW. Management's immediate focus is on optimizing the utilization of this 1.1 GW plant, targeting an improvement from the current 69% to 85-90% within the current financial year. This strategy aims to maximize operational performance and profitability from existing assets before further capacity additions, despite the theoretical maximum capacity being 2.2 GW.

Strategic Shift Towards EPC and New Ventures

Ganesh Green is strategically increasing its emphasis on EPC work, including water supply, transmission lines, and substations, aiming for a 50% contribution to its business due to better margin ratios and control over project timelines. The company is also venturing into the Battery Energy Storage System (BESS) segment, starting with EPC work and targeting INR 500-600 crores in BESS revenue next year. Future plans include cell manufacturing by January 2028, contingent on government support for local production.

Robust Order Book and Execution Outlook

The company holds a robust order book of INR 976 crores, providing strong revenue visibility for the next 6-7 months. Management expects to execute 60-65% of this order book in H2 FY26, aligning with the 35% execution rate observed in H1. Ganesh Green is actively participating in new tenders worth INR 1500-2000 crores, including a significant INR 200 crore water supply project in Bihar, which is awaiting finalization.

Margin Dynamics and Working Capital Considerations

While the EBITDA margin for H1 FY26 was 14.61%, a slight decrease from 16.27% in H1 FY25, this was attributed to competitive pricing in the EPC segment and temporary softness in module supply and prices. Management anticipates margins to stabilize between 9-11% and potentially improve with the integration of BESS. However, future manufacturing expansions, particularly in cell and battery production, will necessitate substantial working capital, with an estimated INR 100 crores required for battery storage system working capital.

H2 FY26 Outlook and Ambitious Growth Targets

Management anticipates H2 FY26 to be significantly stronger, historically contributing 1.5x to 2x the H1 performance, driven by robust demand and improved operational efficiency. The company maintains an ambitious long-term target of doubling both turnover and profit annually. For the next year, a potential growth of 80-100% is projected, reflecting confidence in the company's strategic initiatives and market position.

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