Ganesh Green — Q4 FY25 earnings call

Call held 11 Jun 2025

Management summary

Ganesh Green reported FY25 revenue of INR 317 crores and PAT of INR 30.42 crores, driven by a robust order book of INR 1140 crores. The company is on track to operationalize its 1.1 gigawatt capacity by August 2025, with a target PAT margin of 9-12%. While facing competition and raw material volatility, management is focused on technology upgrades and maintaining profitability, though concerns remain about ALCM compliance and execution delays.

Highlights

  • Revenue for FY25 reached INR 317 crores, demonstrating growth.

  • Bottom line (PAT) for FY25 was INR 30.42 crores, indicating profitability.

  • Strong order book of INR 1140 crores provides revenue visibility for the next year.

  • Planned capacity expansion to 1.1 gigawatt by August 2025 will significantly boost production capabilities.

  • Focus on latest TOPCon technology and multi-busbar supported lines positions the company competitively.

Concerns

  • Delay in 1GW capacity machine due to design changes and integration of spare machines.

  • Potential pressure on operating profit margins due to increasing competition and raw material price volatility.

  • Uncertainty regarding ALCM (Approved List of Models and Manufacturers) compliance by June 2026 and its impact on PSU project participation.

Key financials

  1. Revenue ₹317 Cr
  2. PAT ₹30.42 Cr
  3. PAT Margin 9.6%

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.

Order book

high confidence

Total value

₹1,140 Cr

as of 2025-03-31 quantified

Execution

maximum of 1 year

Composition

Mix 2 contract types
  • EPC 30%
  • Module Supply 70%

Share of order book by contract type

Pipeline

other

Management did not disclose the value of EPC bids, only that they are participating in many tenders.

The company has a strong order book of INR 1140 crores, with a significant portion from module supply and 25-30% from EPC. Orders are expected to be completed within a maximum of one year.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Capacity expansion to 1.1 gigawatt
    • Land acquisition and building preparation for future expansion
    we are planning to expand our capacity to 1.1 gigawatt in August 2025. That's it from my side.

Guidance & targets

Capacity

  • Operational Capacity Capacity · August 2025 · High confidence 1.1 gigawatt
    we are planning to expand our capacity to 1.1 gigawatt in August 2025.

    — Krunal Shah

Capacity Utilization

  • 1.1 GW Capacity Utilization Capacity Utilization · FY26 · High confidence 70%-75%
    Our plan right now, the 1.1 gigawatt line that is coming, we will keep it at 70% to75% utilization.

    — Krunal Shah

Profitability

  • PAT Margin Profitability · Future · High confidence 9%-12%
    Our target is that there should be a PAT margin from 9% to 11%-12%.

    — Ketan Patel

  • PAT Margin Stability Profitability · Future · High confidence stable from 9.50%
    Yes. We will keep it stable. We will keep it stable from 9.50%. We are trying to take any order, we will manage it.

    — Ketan Patel

Order Book Execution

  • Order Book Completion Order Book Execution · Next 1 year · High confidence within 1 year
    all the orders will be completed within a year.

    — Krunal Shah

Module Selling Price

  • Average Selling Price per Megawatt Module Selling Price · Current Market · Medium confidence INR 1.35-1.4 crores
    You can get an average of 1.35 crores to 1.4 crores.

    — Krunal Shah

What to watch in Q1 FY26

1.1 GW Capacity Operationalization

August 2025
Current Under construction/installation
Target Operational by August 2025

Why it matters

Successful and timely operationalization of the expanded capacity is crucial for meeting future revenue targets and market demand.

Not 99%, it will be 110% in August. We are on the track. So, we can say that it will be done in August.

Risks & concerns

  • ALCM (Approved List of Models and Manufacturers) compliance for PSU projects

    high

    The government's ALCM rule requiring manufacturing in India by June 2026 poses a risk to participating in PSU projects if the company does not have a clear plan, though management believes the deadline might be extended or they will adapt.

    Analyst acknowledged

  • Competition and margin pressure in solar market

    medium

    Increasing competition from other companies entering the solar industry and raw material price volatility (copper, steel, aluminum) could put pressure on operating profit margins.

    Analyst acknowledged

  • Execution delays for capacity expansion

    medium

    The 1.1 GW capacity expansion faced delays due to design changes to incorporate spare machines for continuous production, impacting the timeline for operationalization.

    Management acknowledged

Q&A highlights

7 direct
Future growth plans beyond 1.1 GW capacity and sustainability of module EBITDA margins Direct
So two questions. Let's say it is mainly in the module. Does this 14%-15% margin seem sustainable to you for 2-3 years at least?

Analyst questioned the long-term sustainability of module margins and the company's growth strategy beyond the immediate capacity expansion, which are critical for future profitability and market positioning.

Asked by Paras Chheda

Delay in 1GW capacity machine operationalization Direct
Sir, the reason for the delay is that we have done like machinery. Normally, the requirement for modules is high in India. There are many requirements outside as well. Earlier, when we were increasing the capacity of the line, it was just that we were increasing the capacity of the line. If we have 7.5 megawatts, then we were doing 1.1 gigawatts.

This question addressed a critical operational delay, revealing management's strategy to incorporate spare machines and design changes for higher reliability and continuous production, impacting timelines but aiming for better output.

Asked by Ashish Rawat

Pressure on operating profit margin in the Indian solar market Direct
Because of this, there will be pressure on our operating profit margin in the coming time, whether it is EPC or panel manufacturing. I wanted to know this. Can we increase or stabilize our operating profit margin?

This question directly addressed a key risk in the capital goods sector – margin pressure due to competition and raw material volatility, and management's response clarified their strategy to maintain margins through quality and technology.

Asked by Ashish Rawat

Solar self-manufacturing and future investment strategy Direct
You said that we will go to solar self-manufacturing. Okay, we will collect money for that. There was also a part in that that the value of our share will also increase and we will get some benefit from that too.

This question probed into the company's long-term strategic shift towards self-manufacturing of solar components, indicating potential future capex and vertical integration plans.

Asked by Ashish Rawat

Fulfillment of large order book within 6 months given current capacity Direct
My only question was that the big order that we got from (voice break) it is written in the document that the order is to be fulfilled within 6 months. So, we don't have the capacity to fulfill it within 6 months. So, how will we do it?

This question highlighted a potential execution challenge, with management explaining their strategy of leveraging job work and current capacity to meet timelines, which is crucial for revenue recognition.

Asked by Shaleen Danna

Impact of ALCM rule by June 2026 on PSU project participation Direct
A few days ago, the government came up with a rule for ALCM that till June 2026, we have to manufacture in India, but we don't have a plan for that yet. So we won't be able to participate in PSU projects because the majority of our order book is from there. So what is our vision for that?

This question addressed a significant regulatory risk that could impact the company's ability to secure government orders, a major part of their business, and management's response outlined their adaptive strategy.

Asked by Shaleen Danna

Updates on lithium batteries for backup systems and B2C market entry Direct
So sir I have two question. In the last concall in other products within the solar sector, apart from solar cell you also talked about lithium batteries for backup systems. That the government is interested in the solution of 2-hour backup system generation. So I wanted to know the update on that. And secondly you also said that you will enter B2C markets household applications. So that your revenue generation is fast. So I wanted to know the updates on these two things?

This question sought updates on diversification into new product lines (lithium batteries) and market segments (B2C), indicating potential new growth avenues and strategic shifts.

Asked by Tejas Dubey

2 min read 6 chapters

Detailed narrative

Financial Performance and Order Book

Ganesh Green Bharat Limited reported a revenue of INR 317 crores and a PAT of INR 30.42 crores for the current year (FY25), translating to a PAT margin of approximately 9.6%. The company holds a robust order book of INR 1140 crores, providing strong revenue visibility. Management indicated that this order book is expected to be completed within a maximum of one year, with some orders like a INR 500 crore project to be completed within 6 months.

Capacity Expansion and Utilization

The company is actively expanding its manufacturing capacity, with plans to reach 1.1 gigawatt by August 2025. This expanded capacity is projected to operate at a utilization rate of 70-75% in FY26. While there was a delay in the 1GW machine due to design changes for incorporating spare machines and ensuring continuous production, management confirmed they are on track for the August 2025 operationalization.

Technological Advancement and Product Focus

Ganesh Green is focused on advanced solar technology, having transitioned from mono to TOPCon modules. Their TOPCon module is the first BIS-certified in India and features a multi-busbar supported line, allowing flexibility for future technologies. The company is also working on DCR (Domestic Content Requirement) modules and exploring lithium batteries for backup systems, aligning with government guidelines and market demand.

Market Strategy and Customer Base

The company primarily serves PSU clients such as SJVNL, NTPC, Power Grid Corporation, and Indian Oil, along with multinational companies like KSB and Kirloskar. This customer base emphasizes quality, which Ganesh Green aims to provide, thereby maintaining its margins. They are also aggressively pursuing B2C market entry with a dedicated sales and marketing team, leveraging exhibitions and branding efforts.

Margin Outlook and Industry Dynamics

Management aims to maintain a stable PAT margin of 9.50% to 12%, despite potential pressures from increasing competition and raw material price volatility. They believe their focus on quality and technology helps differentiate them. The Indian solar market, with a requirement of 50-60 gigawatts, offers significant growth opportunities, and the company is confident in its ability to secure orders and maintain profitability.

Regulatory Landscape and Future Investments

A key regulatory concern is the ALCM rule, requiring manufacturing in India by June 2026, which could impact participation in PSU projects. Management is monitoring this and believes the deadline might be extended or they will adapt. The company is also preparing for future growth by acquiring land and preparing building infrastructure, indicating readiness for further capacity additions beyond the current 1.1 GW expansion.

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

More Capital Goods earnings calls