Emmvee Photovoltaic Power Ltd — Q4 FY26

Emmvee Photovoltaic Power Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=mA2aw7ahf0Q Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FY26 conference call of MV Photo World Tech Power Limited 0:09 9 seconds hosted by Radhi Capital. As a reminder, all participant lines will be in the listenon mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Please note that this conference is being recorded. 0:26 26 seconds Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. 0:33 33 seconds Please note that anything said on this call that reflects the outlook towards the future, which can be constituted as a forward-looking statement must be 0:41 41 seconds reviewed in conjunction with the risk that the company faces. A comp a copy of a disclosure is available on the investor relations section of the 0:50 50 seconds website as well as on the stock exchanges. Kindly also know that the audio of the earnings call is a corporate material of MV limited and 0:59 59 seconds cannot be copied, rebroadcasted or attributed in the PR media without specific and written consent of the 1:06 1 minute, 6 seconds company. To give you an indepth understanding of the company and answer all your queries, we have from the 1:13 1 minute, 13 seconds management side today Mr. Mangjinata DEB chairman and managing director. Mr. 1:20 1 minute, 20 seconds Suhas Danty Majunata, President and CEO and Mr. Pawan Kumar Jen, Chief Financial 1:27 1 minute, 27 seconds Officer. I now hand the conference over to Mr. Mangjunata sir for his opening remarks. Thank you and over to you sir. 1:39 1 minute, 39 seconds Good evening to all our investors, analyst partner, colleague and researchers dialing. Today I welcome you to the MB's financial year running call. 1:50 1 minute, 50 seconds FI26 was an important year for us. It was the year in which MV completed its transition into a publicly listed 1:59 1 minute, 59 seconds company and entered a new phase of institutional responsibility. 2:04 2 minutes, 4 seconds At the headline level FI26 was a strong year. We closed the financial financial year with revenue of 5,49 crores. 2:14 2 minutes, 14 seconds EIA of 1,734 crores that of 1,82 crores and on an 2:22 2 minutes, 22 seconds order book of 9.4 Gawatt. These numbers reflect the scale up of our operations, 2:29 2 minutes, 29 seconds the benefit of our integrated manufacturing model and the discipline with which our 2:35 2 minutes, 35 seconds team executed through the year. Over the past year, the global solar industry has 2:43 2 minutes, 43 seconds entered a new phase. Markets are becoming more selective. Supply chains are being reconfigured and the domestic 2:50 2 minutes, 50 seconds manufacturing capability is becoming increasingly important across regions. 2:56 2 minutes, 56 seconds In this environment, scale alone is no longer sufficient. integration, technology alignment and execution 3:04 3 minutes, 4 seconds reliability and becoming the defining factor for long-term competitiveness. 3:11 3 minutes, 11 seconds MB strategy has been built with this transition in mind. We are building on a 3:18 3 minutes, 18 seconds integrated technology lead and reliable solar manufacturing platform. Our focus remains on a model manufacturing, 3:26 3 minutes, 26 seconds self-manufacturing, backward integration, operating efficiency and customer trust. 3:32 3 minutes, 32 seconds During FI26, we expanded our model capacity, strengthened our cell manufacturing platform, commissioned new 3:40 3 minutes, 40 seconds capacity at Sulib and advanced our plans for integrated cell and model facility at Jani. We also continue to invest in 3:50 3 minutes, 50 seconds technology process improvement and quality systems. 3:54 3 minutes, 54 seconds India's policy direction remains supportive and more value chain focus. LLM1 4:03 4 minutes, 3 seconds uh created the foundation for approved model manufacturing. The next phase is more important for integrated manufacturers. LLM list 2 for cell is 4:13 4 minutes, 13 seconds expected to deepen domestic sales sourcing while LLM list 3 for wafers and inboards will gradually move framework further upstream from 2028. 4:24 4 minutes, 24 seconds For MB this direction is aligned with our strategy. We have already built selfmanufacturing capability and are 4:32 4 minutes, 32 seconds evaluating backward integration in a measured manner. We believe the long-term opportunity will not belong 4:39 4 minutes, 39 seconds only to companies with model manufacturing. It will belong to a companies that can participate deeper in 4:47 4 minutes, 47 seconds the value chain, maintain quality, improve traceability and reduce dependency on external supply chain. 4:56 4 minutes, 56 seconds Teams such as PM together, PM Kusum and other domestic content liquid program are also creating a more stable demand environment for Indian manufacturers. 5:07 5 minutes, 7 seconds These initiives support clean energy adoption while also encouraging domestic value addition. 5:14 5 minutes, 14 seconds That said, policy support alone cannot be the foundation of sustainable company. Our goal is to compete through 5:21 5 minutes, 21 seconds execution, technology, reliability, part discipline and governance. As a listed company, governance is remains central 5:30 5 minutes, 30 seconds to how we operate. We understand that public shareholders expect transparency, consistency, and character discipline. 5:38 5 minutes, 38 seconds We will continue to strengthen disclosure, internal control, board oversight, ESC practice and investor 5:45 5 minutes, 45 seconds communication. Solar manufacturing is a special uh and capital incentive. Growth 5:52 5 minutes, 52 seconds must therefore be measured against returns, leverage, execution, timelines and customer visibility. We will 6:00 6 minutes continue to invest where we see a clear strategic advantage while remaining discipline on balance sheet strength. 6:10 6 minutes, 10 seconds As we enter financial year 27ity remains large but the environment is also more complex. Competition will 6:18 6 minutes, 18 seconds increase technology will evolve. Freight rules will change. Logistic and commodity cycles may remain volatile. In 6:26 6 minutes, 26 seconds such an environment companies with a strong execution, integration, governance and customer relationship 6:32 6 minutes, 32 seconds will be better places. For MVP direction is clear. We will deepen integration, scale with discipline, improve 6:41 6 minutes, 41 seconds technology and efficiency, protect balance sheet sent and build resilience across the supply chain. FI26 was a 6:50 6 minutes, 50 seconds milestone year. FI27 will be the year of execution. We are grateful for the trust 6:56 6 minutes, 56 seconds placed in MB and we know that this trust must be earned every quarter. 7:03 7 minutes, 3 seconds With that I thank you uh of you for joining us today. I will now hand over to SA who will take you through the 7:12 7 minutes, 12 seconds financial and operational performance of FI26 and in more detail. Thank you. 7:20 7 minutes, 20 seconds Good afternoon everyone and thank you for joining MVIC power limited uh earning call for Q4 and full year 2026. 7:30 7 minutes, 30 seconds As the CMD just alluded, FI 2026 was a defining year for MB. 7:37 7 minutes, 37 seconds It was our first year as a listed company, a year in which we scaled capacity, improved operating performance, 7:46 7 minutes, 46 seconds strengthened our balance sheet, expanded our order book and took important steps towards building MB as a larger 7:53 7 minutes, 53 seconds integrated solar P manufacturing platform. Let me begin with the financial performance. For fi 2026, our 8:02 8 minutes, 2 seconds revenue for from operations stood at 5,049 crores, registering a growth of 8:10 8 minutes, 10 seconds 116% yearon year. This growth was driven by higher production volumes, improved cell utilization during the first full 8:19 8 minutes, 19 seconds year of cell operations and the expansion of our module manufacturing capacity. 8:25 8 minutes, 25 seconds EITA for the year stood at 1,734 cr compared to 722 cr in FI 2035 reflecting a growth of 140% yearon year. 8:38 8 minutes, 38 seconds AITA margin expanded to 34% compared to 31% in the previous year. This 8:45 8 minutes, 45 seconds improvement was supported by scale benefits, operating leverage, higher module production and better utilization of our cell manufacturing capa capacity. 8:56 8 minutes, 56 seconds Profit after tax for FI 2026 stood at 1,082 cr compared to 396 cr in FI 2025. 9:05 9 minutes, 5 seconds a growth of 193% year on year. Pat margin improved to 21% compared to 16% 9:13 9 minutes, 13 seconds in FI 2025. The improvement in profitability was supported by strong AITA growth and lower finance cost in 9:22 9 minutes, 22 seconds intensity after balance sheet relevation. 9:26 9 minutes, 26 seconds On the operating side, FI 2026 was equally important. Our installed solar module capacity increased to 10.3 gawatt 9:34 9 minutes, 34 seconds as of March 31st 2026. During the year we commissioned 2.5 GW module manufacturing line in May 2025 and 9:42 9 minutes, 42 seconds another 2.5 gawatt line in December 2025 mainly with this our module capacity expansion for the year was completed as planned. 9:53 9 minutes, 53 seconds Our solar cell installed capacity stood at 2.94 gawatt. 2026 was the first full 10:01 10 minutes, 1 second year of operations for our cell manu uh manufacturing business and this contributed meaningfully to both revenue and margin improvement. 10:11 10 minutes, 11 seconds In terms of production, solar PV module production increased to 2,999 10:17 10 minutes, 17 seconds megawatt in FI 2026 compared to 1482 megawatt in 2025. 10:25 10 minutes, 25 seconds Solar cell production increased to 1,520 megawatt in 2026 compared to 534 megawatt in 2025. 10:35 10 minutes, 35 seconds In simple terms, module production roughly doubled while cell production grew close to three times year on year. 10:44 10 minutes, 44 seconds Capacity utilization also improved meaningfully especially in cells. Solar cell capacity utilization increased from 10:50 10 minutes, 50 seconds 43.3% in FI25 to 69.9% in FI26. 10:59 10 minutes, 59 seconds In Q4 FI 2026, cell utilization reached 79%. Module utilization for FI 2026 11:07 11 minutes, 7 seconds stood at 43% which should be read in the context of unit five and six commissioned uh during the year and 11:14 11 minutes, 14 seconds therefore be available only for part of the year. We also make made progress on technology and product readiness. Our 11:22 11 minutes, 22 seconds aggregate module capacity now reflects a 100% transition to topcon technology. We now commenced 11:30 11 minutes, 30 seconds uh production of our G12 R format topcon modules enabling higher power density modules. 11:37 11 minutes, 37 seconds Let me now turn to the balance sheet. FI 2026 was a year of significant capital structure strengthening. We completed 11:46 11 minutes, 46 seconds our IPO and public listing in November 2025 raising 2,900 crores including 2,144 crores of fresh issue proceeds. 11:59 11 minutes, 59 seconds We used approximately 1,621 cr of IPO proceeds to prepay term loans. This has 12:07 12 minutes, 7 seconds materially reduced leverage and lowered our finance cost. As of March 31st, 2026, our net debt to equities to that 12:15 12 minutes, 15 seconds negative 0.06 times. Our current ratio improved to 2.1 times. Return ratios 12:24 12 minutes, 24 seconds also remained strong with ROC at 38% and ROE at 51% for FIR6. 12:31 12 minutes, 31 seconds Our credit profile also improved during the year. IKRA upgraded our rating from 12:38 12 minutes, 38 seconds triple B minus to uh triple E minus to A minus in uh August 2025 and further uh to A in August in January 2026. 12:52 12 minutes, 52 seconds These upgrades reflect improved scale, lower leverage and strong debt coverage. 12:59 12 minutes, 59 seconds Autobook momentum remained healthy. Our order book increased from 4.9 GW in FI25 to 9.4 GW in FI26. 13:09 13 minutes, 9 seconds For Q4 FI26, order inflow stood at 1.27 Gawatt. 13:17 13 minutes, 17 seconds We are also seeing an improvement in qual in the quality and scale of customer relationships. The average 13:23 13 minutes, 23 seconds order size among the customer among the top 10 customers increased to 221 megawatt in FI26 compared to 121 in 13:33 13 minutes, 33 seconds FI25. Our module order book remains diversified across customer categories with IP CNI customers and others contributing to demand. 13:44 13 minutes, 44 seconds Another important area of progression is our next phase of capacity expansion. We have initiated plans for our new 6 13:53 13 minutes, 53 seconds gawatt integrated cell and module manufacturing facility. Once completed, this will take our total installed 14:00 14 minutes capacity to 16.3 GB of modules at 8 9 G worth for sales by the end of FY 2027 financial year. 14:12 14 minutes, 12 seconds Erida has sanctioned our term loan for 3,36 crores for this facility. We have 14:19 14 minutes, 19 seconds also completed payment for land allotment at Dandi Bangaluru and the land is now in the company's possession. 14:27 14 minutes, 27 seconds Progress remains in line with our target commissioning schedule. This expansion is important for three reasons. First, 14:34 14 minutes, 34 seconds it deepens our integrated manufacturing position. Second, it improves our ability to serve the market with both 14:41 14 minutes, 41 seconds modules and cells. Third, it positions us better for DCR link demand and domestic manufacturing requirements as 14:48 14 minutes, 48 seconds Indian solar market continues to mo move towards greater localization. To 14:54 14 minutes, 54 seconds conclude, FI 2026 was a year in which MD delivered strong growth with improved profitability, expanded capacity, 15:02 15 minutes, 2 seconds strengthened the balance balance sheet, deepened its technologies uh platform and built a larger order book. Our 15:11 15 minutes, 11 seconds immediate focus remains clear. We will continue ramping up utilization across our existing capacity. We will execute 15:18 15 minutes, 18 seconds our order book with discipline. We will progress the 6 gawatt integrated expansion as planned. We will continue 15:25 15 minutes, 25 seconds to strengthen our top technology platform and we will remain focused on profitable growth, balance sheet discipline and long-term value creation. 15:34 15 minutes, 34 seconds With that, I would like to thank our customers, employees, partners, lenders, shareholders, and other stakeholders for 15:42 15 minutes, 42 seconds their continued trust in MD. Uh we can now open the floor for questions. 15:48 15 minutes, 48 seconds Thank you very much. We will now begin with the question and answer session. 15:53 15 minutes, 53 seconds Anyone who wishes to ask a question may press star and then one on their touchstone poll. If you wish to remove yourself from the question queue, you 16:02 16 minutes, 2 seconds may press star and two. Participants are requested to use hand fits while asking a question. 16:10 16 minutes, 10 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 16:22 16 minutes, 22 seconds Our first question comes from the line of Deepak Krishna from Kotak Institution Equities. Please go ahead. 16:31 16 minutes, 31 seconds Just maybe one particular thing just wanted to check on the CZ or integrated cell and mod capacity expansion. Uh we 16:38 16 minutes, 38 seconds understand we have the land and the loan sanction but you know what sort of the progress on ground and you know by when 16:45 16 minutes, 45 seconds do we see the module line coming through and when do we see the cell line kind of coming through. both timelines of that 16:52 16 minutes, 52 seconds and now that you know in wafer has been announced by you know for 2028 what is the quantum of capacity that we sort of 17:01 17 minutes, 1 second evaluating to put uh if you could sort of come and answer those questions I'll come back with a couple more 17:09 17 minutes, 9 seconds s uh thank you for the question sir uh so with respect to the current expansion plan of 6 integrated capacity uh we have 17:19 17 minutes, 19 seconds uh progressed where our uh construction has started and uh equipment of uh major major equipments orders have already 17:27 17 minutes, 27 seconds been placed. So it is in line with the planned progress of the line and we expect to see the module line getting commissioned by end of this calendar 17:35 17 minutes, 35 seconds year and cell line getting commissioned at the end of this financial year. 17:41 17 minutes, 41 seconds And uh with respect to the invert and wafer uh with the invert and wafer uh you know uh it's uh something that we 17:48 17 minutes, 48 seconds have always planned and our intention has been very clear with fully backward integrating and with that uh uh we we 17:58 17 minutes, 58 seconds intend to uh set up a waste facility of uh about 9 gawatt integrating fully in 18:05 18 minutes, 5 seconds phases and uh the uh you know we plan to set up our first facility in FI29. 18:14 18 minutes, 14 seconds So in the calendar year of 28. 18:21 18 minutes, 21 seconds Uh sure process you can sort of at least quantify phase one how much is the amount uh of that and second just wanted 18:28 18 minutes, 28 seconds to check on the working capital also. So we have seen that advances have gone down and inventory has inventory receivable has slightly gone up. So is 18:37 18 minutes, 37 seconds this the new normal like about 70 80 days as days of sales? with over advances. I just wanted your thought on both of this phase one of paper and as 18:46 18 minutes, 46 seconds well as uh the working capital cycle that sort of moved. 18:50 18 minutes, 50 seconds Sure. Uh so with the uh with the expansion we're looking at a 5 G expansion in phase one and uh a 4 G 18:58 18 minutes, 58 seconds expansion in phase two uh which is going to be a year after. So that is how uh we have planned the way for any expansion. 19:05 19 minutes, 5 seconds more plans when we'll be announcing also very soon uh with more plans. But uh and when it comes to the working capital uh 19:13 19 minutes, 13 seconds cycle uh we uh like you know we have uh experienced a phenomenal growth in our uh capacity as well as our uh execution 19:22 19 minutes, 22 seconds if you if you see in FI27 uh in FI26. So as we have uh doubled our uh module 19:29 19 minutes, 29 seconds manufacturing capacity doubled our uh revenue three times our profit. So in line we have uh grown the uh inventories 19:38 19 minutes, 38 seconds and uh with that uh both the inventory receivable cycle has moved in line with the uh business that we have got in Q4 19:46 19 minutes, 46 seconds 202 uh six. So I think this uh the number of days calculations should start 19:53 19 minutes, 53 seconds seeing normalized as we have not seen any as we don't have any uh for new expansion coming up in the coming quarters. 20:03 20 minutes, 3 seconds Yeah, maybe just one final question just wanted to check on the outlook for demand. Uh you know you have about 40% 20:10 20 minutes, 10 seconds exposure to ITP about 30% to CNITP we've heard Adani Green and we've heard some news about solar curtailment but 20:18 20 minutes, 18 seconds also on the other side you know CNI you know before first June they can do DTR and there tailwinds for Surya as well as 20:26 20 minutes, 26 seconds uh you know Kosam. So maybe just your outlook on all the four segments that you are seeing. You obviously know the government targets. So you know any 20:34 20 minutes, 34 seconds update on all the four segments especially you know IP if you could sort of add any more insights. 20:40 20 minutes, 40 seconds So you know uh the demand demand outlook for for for manufacturer like us has been strong. Uh you can see that our P4 20:48 20 minutes, 48 seconds inflow has been strong as well uh to the extent that we require. uh and uh CNI has always has been the fastest growing 20:57 20 minutes, 57 seconds sector uh in a long time. It's uh uh like you know which I uh which you can see is similarly grown in RPS as well 21:05 21 minutes, 5 seconds and uh with with uh ALM2 coming into effect that is only going to put a 21:12 21 minutes, 12 seconds company like MV with an existing cell capacity at a better position uh to uh leverage this situation and similarly 21:21 21 minutes, 21 seconds for the IP demand also where AMM is going to come into place uh you know expected to come into financial year of 21:29 21 minutes, 29 seconds 28 or uh late 27 uh we are well positioned to cater to that demand. 21:37 21 minutes, 37 seconds Sure. My questions are on the subject. 21:43 21 minutes, 43 seconds Thank you. Your next question comes from the line of Apura Bahhatu from IF Capital. Please go ahead. 21:51 21 minutes, 51 seconds Hi. Hi sir. Uh thank you for the opportunity. Uh wanted to ask you two questions. One was on uh the KFEX this 21:59 21 minutes, 59 seconds year. Uh we can see in the cash flow statement that I think you have spent uh almost 650 odd kores uh on KFEX. Uh if I 22:08 22 minutes, 8 seconds look at your gross block, I think it has increased uh by about a,000 Kisting for the government grant. Uh can you 22:16 22 minutes, 16 seconds bifurcate this u where has this effect been spent uh between module and other stuff? 22:26 22 minutes, 26 seconds During the year there was a the capex we have commissioned two uh module lines unit five in May and unit 6 in December. 22:34 22 minutes, 34 seconds So largely this is capturing the capex of these two uh the module production lines. So this is mostly capturing this 22:41 22 minutes, 41 seconds amount and rest land if you see we almost 311 crores for the land acquisition for uh the expansion project 22:50 22 minutes, 50 seconds and then there's a small amount of around 10 crores is a civic for the new expansion project but uh the other risk effects will be coming in the coming quarters. 23:00 23 minutes Okay. for the uh for N for the next for the cell plan that has been expenses 23:07 23 minutes, 7 seconds here. Uh understood. Uh also uh wanted to touch a little bit more on the working capital principles and especially on on the cash generation. Uh 23:16 23 minutes, 16 seconds we have seen your profit increase material. It's commendable. Uh the the profits I mean operating profit has 23:23 23 minutes, 23 seconds increased by uh uh from 750 odd kores to almost 1,800 crores. So it's more than 1,000 K jump. uh but when I see this uh 23:32 23 minutes, 32 seconds after existing for the working capital movement there is there has been a decline uh from 625 odd kores to 200 23:40 23 minutes, 40 seconds kores uh so uh I want to understand two things one is on the inventory front so 23:46 23 minutes, 46 seconds uh why is is it that the inventory has built up uh is it a timing issue uh and 23:53 23 minutes, 53 seconds by when do we expect this to be cleared out uh and secondly could we expect it to result in some 24:01 24 minutes, 1 second sort of a reduction in production going ahead or will it be managed uh at the current utilization rates. 24:10 24 minutes, 10 seconds So uh so if you look at the working capital uh uh requirements are largely as you have pointed it out correctly are 24:18 24 minutes, 18 seconds uh buildup has uh gone into inventory and the business operations. that when you uh when you look at the Q4 revenue 24:26 24 minutes, 26 seconds itself it is uh uh at 1,700 crores compared to Q1 where we did about 1,000 24:33 24 minutes, 33 seconds crores and uh if you look at uh and if you look at the previous your Q4 quarter it is even lesser. So when you look at 24:41 24 minutes, 41 seconds that kind of a growth that that is seen the working capital the inventories are inventory what is the level that is 24:48 24 minutes, 48 seconds there it is um it is at the level that is to serve serve as the current run rate of revenue and production that we 24:56 24 minutes, 56 seconds are doing for example if you look at the module production module production we have uh uh in this particular uh quarter 25:04 25 minutes, 4 seconds we have produced almost 1 gawatt module production compared to what uh you know uh and sales of of half half a gawatt 25:12 25 minutes, 12 seconds compared to 50% of what we used to do earlier. So this is the uh scale of ramp up. So uh naturally the both on the raw 25:20 25 minutes, 20 seconds material and finished good side it has increased to that extent because this has come with added cap uh capacity increase. 25:29 25 minutes, 29 seconds Okay. Okay. Uh and also in your CNL I see that this uh changes in inventories 25:35 25 minutes, 35 seconds of finished food uh it it has been a uh a negative number and uh in FY26 it was 25:42 25 minutes, 42 seconds quite material at 636 crores 25 it was I think 115 16 uh can you help us 25:49 25 minutes, 49 seconds understand why is this increasing and why is it such a large number what really cost 26:02 26 minutes, 2 seconds changes in in the changes in inventory basically uh 26:09 26 minutes, 9 seconds you know that uh this is reflect uh in this particular FIC6. 26:16 26 minutes, 16 seconds So basically uh it is uh we have used the inventory you know from the production uh uh to the state number. So 26:26 26 minutes, 26 seconds the total cost of you know material consume is 3 411 cr out of that 636 cr 26:33 26 minutes, 33 seconds has been you know produced and we have added to the inventory. So this is the reason that and then as S also mentioned 26:40 26 minutes, 40 seconds that my current pay of the inventory was finished with the raw material is reflecting the current offic which we are having in March compared to the previous quarters. 26:50 26 minutes, 50 seconds Okay. So next year we should expect this to reverse as we liquidate the inventory. Is my understanding correct sir? 26:58 26 minutes, 58 seconds So largely I would say that yes with this current level of entry inventory is justifying the current level of production and sales. So we will be 27:07 27 minutes, 7 seconds mostly either maintaining the same level of inventory with the current level operation till the new expansion is coming up or possibly some incremented 27:14 27 minutes, 14 seconds inventory level that we'll be using the current inventory to convert into the production and to be more mindful in you know getting the new inventory if we 27:24 27 minutes, 24 seconds consume the existing inventory especially the raw material. 27:28 27 minutes, 28 seconds Okay, understood. And and last [clears throat] question, I see uh if if I look at the DCR portal, uh our 27:35 27 minutes, 35 seconds production for shelves in April appears to be a little bit lower trending. Uh I know it's not for the full month 27:42 27 minutes, 42 seconds probably for 3 weeks of April. Uh but on a run basis, is there I mean have you taken some sort of a maintenance in the plant or what's the reason for this? 27:52 27 minutes, 52 seconds No, we are continuing the production normally and I think updation normally they will do in the end of the month or 27:59 27 minutes, 59 seconds beginning of May. So will not happen in a dayto-day. It's not real time data what PCR port is show. 28:09 28 minutes, 9 seconds Thank you so much. 28:13 28 minutes, 13 seconds Thank you. The next question comes from the line of Pakar Pwal from Ambit. Please go ahead. 28:20 28 minutes, 20 seconds Hello. Yes. Yes sir. 28:25 28 minutes, 25 seconds Thank you for the opportunity. So just again sorry for hopping back again on the working capital thing but you 28:32 28 minutes, 32 seconds explained on inventory uh on advances from customers because given your order book has remained um a float at 9.3 9.4 G and almost 1.2 gawatt of other inflow. 28:45 28 minutes, 45 seconds So any reason why advances have come up in this quarter? That is one first question. 28:53 28 minutes, 53 seconds Yeah. Uh I think that's a good question. 28:55 28 minutes, 55 seconds So basically advance from customer what happens is uh you know time time it depend it depends on the business call what we take sometimes advances are 29:04 29 minutes, 4 seconds taken in the form of LC which is not usually reflected in the advance from customer in the balance sheet so we take 29:11 29 minutes, 11 seconds LCS and sometimes we take a decision uh like you know so it is not really the exact u you know idea of what exactly is 29:21 29 minutes, 21 seconds the advanced the security that we have from the customers Just to add what was mentioned that in 29:28 29 minutes, 28 seconds FI25 we had a advance from NDPC customer which was the last advance we had and against that this year because that was 29:36 29 minutes, 36 seconds very large almost 79 95 megawatt so that advance and the reason now this year the ad is much lower 29:46 29 minutes, 46 seconds 320 and 320 is the figure 29:56 29 minutes, 56 seconds helloation for NTPC that was from the NTPC advance that we had received that time which is which 30:05 30 minutes, 5 seconds was reflected in the balance sheet of it understood and just one more thing uh on the 4.5 gawatt sales order that you 30:12 30 minutes, 12 seconds received uh to be executed in next three four years on that also you would have received um advanced for the entire 4.5 30:19 30 minutes, 19 seconds gawatt or will it happen according to the delivery schedule? 30:24 30 minutes, 24 seconds So we've received an advance for for the contract full order and we've already started supply for that. 30:33 30 minutes, 33 seconds Understood. And my second question is um if you see even in F26 also your volumes 30:40 30 minutes, 40 seconds of DCR modules given largely we have been more on the utility and clean side. 30:46 30 minutes, 46 seconds So and our external sales of solar cell is very less. So where are we selling uh 30:53 30 minutes, 53 seconds is it on the retail segment in PMU and Kushum or in I mean just to understand our customer segment in the BCR modules [clears throat] right now. 31:03 31 minutes, 3 seconds Sure. Uh sure. Yeah. So in the BCR modules our uh primary segment is Pon Kusum and Kusum primary and Kusum C. 31:14 31 minutes, 14 seconds This is a component which uh plays a uh like know which is uh adding a large uh installations and uh sur uh being the primary uh demand factors for us. 31:28 31 minutes, 28 seconds Sure. And this last question if you can you can throw some light on the intersegment eliminations they have increased this quarter quite 31:36 31 minutes, 36 seconds significantly. So wanted to understand the accounting and um how it is worked out inter company uh eliminations right? 31:45 31 minutes, 45 seconds Yeah this is mainly because of the order we all expansion has been taken place in MB energy that is the subsidiary of the company and some orders we have also 31:54 31 minutes, 54 seconds taken MB photoic which is the main company. So whenever the execution time and the raw material availability and 32:01 32 minutes, 1 second this thing so inter company uh we have to transfer some of the material from one side to another side. So that is the way where you see the elimination. 32:12 32 minutes, 12 seconds Okay. Because of the facility when you transfer the raw material. 32:16 32 minutes, 16 seconds So basically what happens is Yeah. Yeah. You're right. I mean basically it's like you know one you have uh uh two like two companies 32:25 32 minutes, 25 seconds basically one one is a parent and subsidiary where both have manufacturing capacities and one has cell manufacturing capacity so there will be 32:33 32 minutes, 33 seconds some inter moment in materials yeah but it's all the the group 32:40 32 minutes, 40 seconds sure thank you so much those questions thank you the next question comes from 32:48 32 minutes, 48 seconds the line of Midisha from ICICI securities. Please go ahead. 32:53 32 minutes, 53 seconds Yeah, thank you. Uh thank you for the opportunity. My first question is whether at this point do we uh supply 33:01 33 minutes, 1 second modules to any other countries uh US or otherwise or do we plan to do that in the future? Do we have access um you 33:09 33 minutes, 9 seconds know to be able to supply to other countries? 33:13 33 minutes, 13 seconds So yeah, I mean uh uh so uh with us we are uh right now like know 26 we had zero exports and uh as a company we've 33:22 33 minutes, 22 seconds been quite uh agile with our markets of choice. We have had uh uh a time of 100% 33:29 33 minutes, 29 seconds exports in our uh in the initial phase of the uh as a model manufacturer and then we scaled it down and then we 33:37 33 minutes, 37 seconds shifted markets from Europe, US and then India. So things uh so we've been very agile with that and we have teams that 33:44 33 minutes, 44 seconds are actively looking for markets looking for opportunities but exports are uh treated as an upside for us rather than 33:52 33 minutes, 52 seconds the core part of our business in the current uh scenarios. 33:57 33 minutes, 57 seconds All right. Um in in addition to that um do we so my understanding is that we do not have any export orders in the order book at this point right? 34:07 34 minutes, 7 seconds Yes correct correct. Uh so from from a competitive standpoint, from a price standpoint, uh if we were ever to 34:15 34 minutes, 15 seconds export, uh are we uh competitive with other countries that do produce cells and modules uh to be able to supply globally? 34:26 34 minutes, 26 seconds So to be very candid I mean other than uh China yes all other regions is something that India can compete with 34:33 34 minutes, 33 seconds and we can like and we are uh very much geared up uh with the uh cost competitiveness. uh when it comes to 34:42 34 minutes, 42 seconds technology, product quality or preference of the customer uh there is no doubt or anything about uh the 34:49 34 minutes, 49 seconds capability of feeder and you are the as an Indian manufacturer we are very much competitive and welcomed in many parts 34:57 34 minutes, 57 seconds of the world. Mhm. Uh my absolute last question on this would be that um as the US is and a lot of other countries are 35:06 35 minutes, 6 seconds moving in a way that outside of the cell as well they require uh non-Chinese components within the entire module. So 35:14 35 minutes, 14 seconds is that something that you know do we have access to non-Chinese solar glass junction boxes and vapor? Is that um is 35:23 35 minutes, 23 seconds that sort of a line of supply that we're actively uh looking at building or is that something that is not required at this point in time? 35:32 35 minutes, 32 seconds Now we have we already have an existing supply alternate supply chain to China uh uh in every material that we use and 35:40 35 minutes, 40 seconds there are many materials we are already like you know buying locally or moved out of uh China as well uh in terms of 35:49 35 minutes, 49 seconds in in the interest of diversifying our supply chain and uh similarly uh for the purpose of US or other countries where 35:57 35 minutes, 57 seconds they require non-Chinese ownerships also for raw raw materials we have a very resilient supply chain available which is not uh Chinese linked. 36:09 36 minutes, 9 seconds Okay. Uh and uh on on the capacity uh the FI28 target capacity the cells are 9 36:16 36 minutes, 16 seconds G whereas the module is is is uh 7 G more than that. So my questions are is this 7 gawatt an older capacity of 36:24 36 minutes, 24 seconds monoprog that we're eventually looking to retire or is it that we're looking for a higher model capacity over sales is perpetuated. 36:34 36 minutes, 34 seconds So uh we don't have any monop capacity all our capacity top corn and latest that uh the difference that you see between module and cell capacity is that 36:43 36 minutes, 43 seconds typically what happens in a module line uh the actual or maximum utilization that we 36:50 36 minutes, 50 seconds can achieve is to the extent of about 65% to 70%. Whereas in cell you can 36:57 36 minutes, 57 seconds achieve up to like 90 uh 90 95%. So with this uh logic uh we are our module 37:05 37 minutes, 5 seconds capacity is intentionally kept higher than the cell capacity uh to effectively achieve the similar production in both module and cell. 37:15 37 minutes, 15 seconds So is it like a sizing issue because uh we're seeing a lot of other peers have uh you know utilizations of up to 80% or 37:24 37 minutes, 24 seconds 85% in modules. So is this something that is specific to the machinery that we are using or the sizes that we are providing? 37:34 37 minutes, 34 seconds No. So basically what happens is like you know in a typical uh uh model manufacturing business where you're uh 37:42 37 minutes, 42 seconds you're servicing many IPs and uh like you know uh large developer customers. 37:47 37 minutes, 47 seconds What happens is uh your uh there is a lot of uh requirements that are unique to each customer. It could be a 37:56 37 minutes, 56 seconds different uh uh testing standard. It could be a different uh material like could cable length for example. So what 38:04 38 minutes, 4 seconds we have to do is we have to flush out the lines. They have inline instruction and then we have to do the line after that because it's an inline production 38:12 38 minutes, 12 seconds module whereas cell is a batch production and it's made to stock module is made to order. So that is why you see 38:19 38 minutes, 19 seconds that typical difference that is there and also added to that point the capacity of the out others are going to 38:26 38 minutes, 26 seconds be declared is also is one of the point what envy is very clear what the capacity of the machines able to produce 38:34 38 minutes, 34 seconds is the capacity what is being declared that 10.3 what we are mentioning is the capacity of the G2 that is the 38:41 38 minutes, 41 seconds combination of the model with the 720 W pick of the model what If you calculate in that manner it will 38:49 38 minutes, 49 seconds be all all thank you so much. 38:55 38 minutes, 55 seconds Thank you. The next question comes from the line of Abel from singularity. Go ahead. 39:03 39 minutes, 3 seconds Congratulations sir on a great set of numbers. Two questions from my end. So ALCM comes in in June uh 2026. So just 39:11 39 minutes, 11 seconds wanted to see how as an industry now as MV are you preparing for that? Are you seeing any uh difficulty in orders or 39:20 39 minutes, 20 seconds are uh solar cell plus DCR uh pricing going up currently. 39:28 39 minutes, 28 seconds So for us being having our own cell capacity it is something that we are welcoming uh uh like you know uh quite 39:37 39 minutes, 37 seconds well and uh if you see the transition that there is is a phase transition where CNI and uh first the utility all 39:45 39 minutes, 45 seconds demand other than the utility demand will come into the 11 bestow from a uh from June 2028 uh to June 2026 but uh 39:55 39 minutes, 55 seconds your um utility demand for projects that were bid after August 2025 is going to come in. So it is going to it's a phase 40:04 40 minutes, 4 seconds demand and that is something that we are prepped up for and that is something that we are uh looking uh forward to. 40:13 40 minutes, 13 seconds And are you seeing any increase in DCR pricing happening given there is only limited capacity of solar cells in the market today? 40:22 40 minutes, 22 seconds I mean as of now I'd say that it's uh quite the pricing is quite similar result then I'm not seeing that kind of 40:29 40 minutes, 29 seconds a uh upward pricing as we speak and this last one what is the average pricing for DCR today sir and for non DCR if you could I share that. 40:42 40 minutes, 42 seconds Uh so for diesel uh module it is about 21 to 20 uh 22 rupees uh on a watt and 40:51 40 minutes, 51 seconds uh module is around like 14 to 15 rupees per watt. Thank you sir. Thank you. 41:00 41 minutes Thank you. Your next question comes from the line of Kunal Sha from Dam Capital. Please go ahead. 41:07 41 minutes, 7 seconds Yeah. Hi sir. A couple of questions. So one in terms of you know in the last quarter we had mentioned that the DCR 41:14 41 minutes, 14 seconds mix is around 40 odd%. Uh what would be the exact mix between uh DCR modules non DCR and cells for this quarter? 41:31 41 minutes, 31 seconds Hello Just give me one moment. 41:43 41 minutes, 43 seconds Uh management, are you able to hear us? 42:18 42 minutes, 18 seconds Ladies and gentlemen, the line for the management seems to have been disconnected. Please stay connected while we reconnect the line to the management. 42:35 42 minutes, 35 seconds [music] 42:46 42 minutes, 46 seconds [music] 42:49 42 minutes, 49 seconds Ladies and gentlemen, thank you for holding the line. We have the management reconnected with us. Uh yes, sir. Please go ahead. Uh could you please repeat the question once again? 42:59 42 minutes, 59 seconds Yeah. Uh so sir just a couple of questions. One in terms of uh the mix of business. Last quarter we had mentioned 43:06 43 minutes, 6 seconds about 40% DCR. Uh for this quarter could you just give the exact mix between DCR modules non DCR and sales for this quarter. 43:16 43 minutes, 16 seconds So uh I think last year last year whatever uh I was uh I mix I explained I think it was not a mix that we usually 43:24 43 minutes, 24 seconds don't give out. It was inferred from the production number that was showcased. So again this time if you look at the production number uh our module 43:32 43 minutes, 32 seconds production with added capacity has increased from uh to 953 [clears throat] uh megawatt with that we are uh uh 43:40 43 minutes, 40 seconds looking at uh like you know uh a mix of between 30 to 35% of DCR 43:47 43 minutes, 47 seconds 30 to 35% for DCRI right got right uh that's helpful and sir in terms of just 43:55 43 minutes, 55 seconds to follow up on this how would this mix look like for F2728 I mean if you can give sort of any ballpark guidance on the same 44:04 44 minutes, 4 seconds uh for the most part of the for the for the first three first two three quarters I don't see uh much difference because 44:12 44 minutes, 12 seconds our capacities are uh added uh similarly uh like I mean we don't have an incremental capacity that's coming up in 44:19 44 minutes, 19 seconds module but um uh going forward there could uh like know uh in during by the end of by the beginning of next It will 44:28 44 minutes, 28 seconds be more or less all capacity that we sell will be DCR10. 44:35 44 minutes, 35 seconds Got it. And uh now you know coming to cell utilization when uh would we be seeing the transitioning from M10 to 44:43 44 minutes, 43 seconds sort of G12 our cells just to utilize the capacity in a much better way because you know even when we looking on an M10 basis our utilization keeps 44:52 44 minutes, 52 seconds hovering between 70 80%. So uh can we see that crossing 80% that's number one and two you know when would we finally see that transition into G2 ourselves. 45:04 45 minutes, 4 seconds Yeah. Uh so uh firstly like we have already achieved 80% in Q4 but and actually if you look at our mass numbers 45:12 45 minutes, 12 seconds we have also reached 85% in cell utilization. uh so I think we we are confident to keep that uh you know uh 45:21 45 minutes, 21 seconds around the similar levels and uh transmission to G12R yes you know our plans are in and our capability is there 45:28 45 minutes, 28 seconds it's only that we have an order book for M10R that is lasting until end of March end of May and we we are looking to 45:36 45 minutes, 36 seconds transition in this by the end of this quarter understood and uh say in terms of 45:44 45 minutes, 44 seconds balance sheet Now he's just trying to understand. So obviously we have roughly uh give or take around 4,800 crores of 45:52 45 minutes, 52 seconds capex spending on the 6G rout integrated line uh 45 to 4,800 crores and then you know you highlighted about the uh 46:00 46 minutes endgate wafer as well right so so one so you mentioned about 9 gawatt but can we expect around the similar levels of cell 46:09 46 minutes, 9 seconds wherein you know we've been incurring some 750 crores per gawatt for the in wafer as well that's one and How are we looking at our balance sheet shaping up? 46:18 46 minutes, 18 seconds I mean given the 6 G integrated line as well and then you know 9 GHz of in 46:27 46 minutes, 27 seconds wafer is a wafer we looking like around 600 to 700 uh crawatt uh that's going to uh be the capex that 46:37 46 minutes, 37 seconds is require uh that we require and uh uh our balance sheet as you see like you know our uh quarter numbers our earnings 46:45 46 minutes, 45 seconds has increased our uh execution has improved So I think this is something that we are uh uh looking to maintain in 46:53 46 minutes, 53 seconds a strong way and uh even for the further in labor expansion we'll whatever uh you 47:01 47 minutes, 1 second know debt or any equity needs to be raised we are very cognizant that we'll keep it within one the debt equity ratio 47:10 47 minutes, 10 seconds understood got it and just lastly if I may ask one question so on a spot basis like you know 47:18 47 minutes, 18 seconds versus the margins that we have seen in F26 across uh you know nonBC sales uh on 47:25 47 minutes, 25 seconds a spot basis uh looking at the commodity inflation wherever it is and looking at the realization how are the margins 47:32 47 minutes, 32 seconds shaping up like if you were to pick up orders today how would how different that would be uh versus let's say 26 47:39 47 minutes, 39 seconds margins I mean uh like are we seeing a major impact on non DCR or you know if you could just give any color on that 47:47 47 minutes, 47 seconds So right now whatever like you know the uh margins that we are seeing uh going 47:54 47 minutes, 54 seconds into alpha 27 uh is not very different to what we have seen earlier. So our uh the aeta the uh spread perspective 48:03 48 minutes, 3 seconds things have been uh like you know quite resilient. 48:08 48 minutes, 8 seconds Yeah but that's because you'd be exist uh executing the March 26 closing order book. I'm just trying to understand in terms of the new orders now that you'd be taking up. 48:18 48 minutes, 18 seconds Profile. 48:20 48 minutes, 20 seconds Yeah. Yeah. Even in the new order what I mean it's uh in the similar profile. 48:24 48 minutes, 24 seconds I understood. Thank you sir. This is very helpful and all the best. Thank you. 48:32 48 minutes, 32 seconds Thank you. The next question comes from the line of Sahin Shir from Anandrai Institute. Please go ahead. 48:40 48 minutes, 40 seconds Hi sir. Congratulations on a good set of numbers. So my first question would be uh when we are shifting 48:46 48 minutes, 46 seconds cell base from M10 to G12R would there be any production downtime like uh what how many months would it take to shift our cell base to the G12R? 48:58 48 minutes, 58 seconds So in our case like you know uh one it will be a phased uh uh transition that we will be doing and like I already I 49:06 49 minutes, 6 seconds had explained earlier that it is uh cell is a batch production so the disruption will be quite minimal and uh two is it 49:14 49 minutes, 14 seconds you it will not take that much time because we we our line is already capable to do up to G12 so whatever 49:21 49 minutes, 21 seconds change will be is just a kip change uh so it's not supposed to take uh like it should not reflect any material uh disruptions. 49:32 49 minutes, 32 seconds Okay, got it. My second question would be on the 33 billion loan sanctioned from the uh IPA, what is the rate of 49:41 49 minutes, 41 seconds interest we have received on that? What would the loan optic schedule look like in FI 27 or FI 28? 49:49 49 minutes, 49 seconds So, uh yeah, I will ask both a question. 49:51 49 minutes, 51 seconds So, currently the rate is 7.95%. Earlier was higher but with the current market trend and offers we getting for other so 50:00 50 minutes we got a very competitive rate of 7.9 95% now so far we have not drawn any amount which we are planning to do in 50:07 50 minutes, 7 seconds the next month or so first installment uh total debt is 336 cr so possibly uh 50:14 50 minutes, 14 seconds we will be very mindful of growing how to optimize the interest cost so uh by 31st March probably around 75 to 80% 50:22 50 minutes, 22 seconds will be growing and is that we will have some retention payment also which is 15 to 20% that will be spilling over to 27 uh but for 50:32 50 minutes, 32 seconds investing to commission the the integrated sale 50:39 50 minutes, 39 seconds and multiply there was some news where uh some of the 50:48 50 minutes, 48 seconds developers have filed some petition to push the ALM to July deadline have uh what are your views on that? 50:58 50 minutes, 58 seconds I mean so uh there is uh I mean these are efforts that are uh like you know expected uh I think this is something 51:07 51 minutes, 7 seconds that was also happened during uh realm one also and uh it is uh quite clear 51:14 51 minutes, 14 seconds that the capabilities and the uh serviceability of the industry what it is at but uh as far as uh we are 51:23 51 minutes, 23 seconds concerned like you know uh we are very much aligned towards the ramp up of 51:31 51 minutes, 31 seconds realm and even like a small one two month plus minus will not really make a difference in what we intend to do 51:38 51 minutes, 38 seconds because we've been cognizant of our uh capacities that we have added and planned uh addition of uh cell line also 51:47 51 minutes, 47 seconds which is coming only in end of this financial year. 51:52 51 minutes, 52 seconds So if uh there is a 6 months delay in the ALM deadline, what kind of impact are we seeing on whether the DCR non DCR 52:00 52 minutes mix would shift or would it be more depend on how your order book is formed currently right now? 52:07 52 minutes, 7 seconds Yeah, for us like it we don't see any shift in uh the uh this thing because our uh our uh you know our capacity is 52:16 52 minutes, 16 seconds only 3 gawatt out of what this thing is and um so even if there is there could be a few months shift of uh uh this 52:25 52 minutes, 25 seconds thing we don't uh see to impact the uh any DCR non DCR mix for us Okay, got it. That was quite technical. 52:38 52 minutes, 38 seconds Uh, thank you. 52:46 52 minutes, 46 seconds The next question comes from the line of Aman Jin from Steam. Please go ahead. Hello. 52:53 52 minutes, 53 seconds Um, hello. 52:58 52 minutes, 58 seconds Yeah. Yeah. Thanks for taking my question. Uh, so I just want to understand one thing. uh if you see quarter on quarter our revenues are up around 67%. 53:08 53 minutes, 8 seconds Uh but our production is up only by 30%. 53:12 53 minutes, 12 seconds And if you look at even if you look at inventory you know it's actually going up. It's not like the old inventory getting used up. So I just wanted to 53:19 53 minutes, 19 seconds understand where this extra revenue is coming from. 53:25 53 minutes, 25 seconds So uh one is uh see there are couple of things. One is uh the sales is different to production and uh two what happens is 53:33 53 minutes, 33 seconds that uh you know the uh realization price uh moves with the raw material price up and down in some cases. that 53:42 53 minutes, 42 seconds that that is why we we always say that you uh look at a bit or absolute aida or a bit per watt peak in our in the case 53:52 53 minutes, 52 seconds of uh uh module manufacturing or cell manufacturing because that will give you a true picture of what the performance is. 54:01 54 minutes, 1 second Got it. Got it. Makes sense. Let's say you uh like you said that the revenues have all uh sorry uh the realizations also been you know in the similar range 54:09 54 minutes, 9 seconds over the past uh or the last quarter. So uh I mean I'm not able to understand so how that extra 54:17 54 minutes, 17 seconds we spoke I think in the earlier question I think one we spoke about was the spread spread was the question about and 54:25 54 minutes, 25 seconds uh two what we discussed what what I uh also said is that the production number is not to be taken as a sales number 54:34 54 minutes, 34 seconds usually we don't give the sales number what that is done uh because it you just come into the calculations for a lot of 54:43 54 minutes, 43 seconds competition and other things. So that is why uh the production and sales is uh two different numbers that has to be considered. 54:51 54 minutes, 51 seconds Okay. Okay. So thank you Mr. 54:57 54 minutes, 57 seconds Thank you ladies and gentlemen. We will take this as the last question for today. I now hand the conference over to the management for closing comments. 55:11 55 minutes, 11 seconds Um so uh thank you for uh join joining and uh I I hope uh the performance of uh 55:19 55 minutes, 19 seconds FI 20 uh 26 has uh been as phenomenal as it has been for us to the uh all the 55:27 55 minutes, 27 seconds stakeholders and with that uh I thank everyone for being on this call. 55:35 55 minutes, 35 seconds Thank you members of the management. 55:37 55 minutes, 37 seconds On behalf of MV Photo Wall Tac Power Limited, that concludes this conference. 55:42 55 minutes, 42 seconds Thank you for joining us and you may now