Q2 26/27

Oct 14, 2026

Summary

H1 FY27 revenue rose 45% and PAT 79% YoY, with EBITDA margins near 35% and operating cash generation improving. A 10.4 GW order book and on-track 6 GW integrated expansion support the FY27 outlook.

Ladies and gentlemen, good day and welcome to Emmvee Photovoltaic Power Limited Q2 FY 2027 Earnings Conference call hosted by Raadhi Capital. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. Please note that anything said on this call that reflects the outlook towards the future, which can be construed as a forward-looking statement, must be viewed in conjunction with the risk that the company faces. A copy of the disclosure is available on the investor relations section of the website as well as on the stock exchanges. Kindly also note that the audio of the earning call is a corporate material of Emmvee Limited and cannot be copied, rebroadcasted, or attributed in the PR media without specific and written consent of the company. To give you an in-depth understanding of the company and answers to all your queries, we have from the management side today, Mr. Manjunatha D V, Chairman and Managing Director, Mr. Suhas Donthi Manjunatha, President and CEO, Mr. Pawan Kumar Jain, Chief Financial Officer. I now hand the conference over to Mr. Manjunatha. Thank you, and over to you, sir. Thank you. Good evening, everyone. I extend a warm welcome to all our investors, analysts, and shareholders joining us, Emmvee's Q2 and H1 financial year 2027 earning conference call. I am pleased to share that Emmvee has delivered its strongest half-yearly financial performance to date. For the first half of financial year 2027, our revenue from operation grew by 45% year-on-year to INR 3,132 crores, EBITDA increased by 47% to INR 1,105 crores. The profit after tax grew by 79% to INR 762 crores. We have maintained EBITDA margins of approximately 35%, demonstrating the strength and consistency of our operating performance. These results reflect the manufacturing capabilities we have developed over nearly two decades, our continued focus on technology and product reliability, and the trust we have built with our customers. Importantly, our performance has remained consistent with the guidance we provided, even as the industry transited through changes in the implementation of ALMM regulations and geopolitical issues. Our focus has remained on executing our business plans, strengthening our manufacturing capabilities, and delivering sustainable growth. Let me now share our prospective on the Indian solar industry. Indian solar sector continued to experience significant growth, supported by increasing electricity demand, renewable energy commitment, and the continued development of solar projects across multiple segments. The first half of calendar year 2027 has witnessed India's highest ever solar installation for six months period. Based on the current installation trajectory, domestic module demand is running a phase that could translate into approximately 64% year-on-year growth for this year. This is a significant development for the domestic manufacturing industry. We are seeing demand across utility scale projects, commercial industrial installation, rooftop solar, and government supported programs. In addition, the growing adoption of hybrid, round the clock, and firm renewable energy projects is creating a more module demand as the AC-DC ratios increase in these solar deployments. As India's energy requirement grow, we expect solar to continue playing an increasingly important role in the country's electricity generation mix. At the same time, the domestic manufacturing ecosystem is evolving. The implementation of ALMM List-II for solar cell is an important step towards strengthening India's domestic manufacturing capabilities. While certain transitional provisions have been introduced, the broader direction of the policy continue to support greater domestic value addition and deeper integration across solar manufacturing supply chain. Emmvee is well positioned to participate in the transition supported by our existing TOPCon cell manufacturing capabilities, established module manufacturing operations, and continued investment in integration. Our inclusion in G12R TOPCon cells under ALMM List-II further strengthen our ability to serve evolving customer requirement. Coming to our ongoing expansion, our 6 gigawatt integrated TOPCon cell and module manufacturing project remain on track. We expect the commissioning of the module manufacturing facility by December, followed by cell manufacturing facility by March 2027. Upon completion, our total installed manufacturing capacity will increase to approximately 16.3 gigawatt of modules and 8.9 gigawatt of cells. An important aspect of our manufacturing strategy is how these capacities have been designed to operate together. Cell and module manufacturing have different operating characteristics. Cell manufacturing can achieve significantly higher utilization level, whereas module manufacturing requires greater flexibility to accommodate different product configuration, customer specification, and production schedules. When we consider the maximum achievable production for both the operations, our 16.3 gigawatt of module capacity and 8.9 gigawatt of cell capacity are designed to deliver broadly equivalent annual output. This is central to our integrated manufacturing strategy. Our objective is to optimize the utilization of our manufacturing under strengthening our cost competitiveness. We believe that manufacturing integration must be evaluated not simply by installing capacity, but by the ability of different stages of production to operate efficiently together. Behind our ongoing expansion, we are also progressing with our plans for backward integration into ingot and wafer manufacturing. Our current plan envisages a 9 gigawatt of facility developed in two phases of 5 gigawatt and 4 gigawatt, aligned with our future cell manufacturing requirement. The timing of this investment will be guided by the regulatory development, particularly ALMM List-III, prevailing market condition, and long-term economic viability. Our approach to expansion remains disciplined. We believe the next phase of growth in Indian solar manufacturing will increasingly depend on technological capabilities, manufacturing efficiency, product reliability, and supply chain integration. These are areas in which Emmvee has consistently invested over the years. Our collaboration with leading research institutions, our experience in TOPCon cell manufacturing, and our focus on product quality provide a strong foundation for the future. As we enter the second half of financial year 2027, our priorities remain clear. We will continue to execute our expansion plan, strengthen our manufacturing capabilities, maintain operating discipline, and build our relationships with customers. We are encouraged by the growth opportunities in India solar market and remain committed to creating sustainable long-term value through technology, quality and responsible investment. I would like to thank our employees, customers, suppliers, financial institutions, shareholders and all our stakeholders for their continued support and confidence in Emmvee. With that, I will hand over to Suhas, who will take you through our financial and operational performance in a greater detail. Thank you. Thank you, Chairman. Good evening, everyone, and thank you for joining us today. As the Chairman highlighted, H1 FY 2027 has been our strongest half-yearly performance to date. What is particularly encouraging is not only the growth we have delivered, but also the consistency of our operating performance and quality of our earnings. We have maintained strong profitability, improved cash generation, and continued to execute our business plans while investing in the next phase of manufacturing expansion. Let me take you through our financial and operational performance. Starting with the second quarter, revenue from operations for Q2 of FY 2027 stood at INR 1,576 crore, representing growth of 39% year on year. EBITDA increased by 39% to INR 557 crore, while our EBITDA margins remained strong at approximately 35.3%. Profit after tax increased by 61% year on year to INR 382 crore, with PAT margins improving to approximately 24%, compared with 21% in the corresponding quarter last year. Our performance remained stable sequentially, with revenues and EBITDA broadly in line with the previous quarter. Turning to the first half performance. Revenue from operations grew by 45% year on year to INR 3,132 crore. EBITDA increased by 47% to INR 1,105 crore, while our EBITDA margins remained at approximately 35%. Profit after tax grew by 79% to INR 762 crore. These numbers demonstrate the consistent growth in our business and our ability to maintain operating profitability as we scale. I would particularly like to highlight the quality of our earnings during the first half. Our EBITDA growth has remained broadly in line with the revenue growth, reflecting the consistency of our operating margins. At the same time, profit after tax has grown significantly faster than revenue, supported by improved financial efficiency and substantial reduction in finance cost. Finance cost during Q2 stood at approximately INR 9.5 crore as compared with INR 55.2 crore in the corresponding quarter last year. This reflects the strengthening of our balance sheet following the deployment of IPO proceeds towards debt repayment. We have also seen a meaningful improvement in our operating cash generation. Net cash generated from the operating activity is increased to approximately INR 410 crore in H1 of FY 2027 compared to INR 121 crore in H1 of FY 2026. This represents an improvement of approximately 239% year on year. For us, this is an important indicator as we continue to invest in expanding our manufacturing capabilities. Our focus is not only on growing revenue and profitability, but also on converting operating performance into cash generation and maintaining financial discipline. Moving to our manufacturing operations. During Q2 FY 2027, solar module production increased by approximately 40% year-on-year to 952 MW, compared with 682 MW in the corresponding quarter last year. Solar cell production increased by approximately 61% to 513 MW, compared with 319 MW in Q2 FY 2026. Our cell manufacturing operations continue to perform strongly, achieving 89% effective capacity utilization during the quarter. This reflects the operational capabilities we have established in TOPCon cell manufacturing and the continued improvement in production efficiency. Module capacity utilization stood at approximately 44%. As the Chairman explained, cell and module manufacturing have different operating characteristics and achievable utilization levels. Our existing module manufacturing capacity provides us with significant flexibility to accommodate different product specifications and customer requirements while supporting future volume growth. Our focus remains on optimizing production across our facilities, improving operational efficiency, and maintaining the product quality and reliability that our customers expect from Emmvee. Coming to our order book. As of September 30, 2026, our order book stood at approximately 10.4 GW, supported by new order inflows of approximately 1.5 GW during the quarter. Our order book continues to be diversified across independent power producers, commercial and industrial customers, and other market segments. We remain focused on building long-term customer relationships and maintaining a healthy balance between order inflows, manufacturing capabilities, and delivery commitments. An important part of our commercial strategy is product differentiation. We believe that solar modules should not be evaluated solely on price. Product quality, energy yield, long-term reliability, and warranty performance are important considerations for customers making investments in assets expected to operate for 25-30 years. Our experience in manufacturing and our continued investment in technology and quality remain central to our customer proposition. Turning to our balance sheet. As of September 30, 2026, our net debt to equity ratio stood at approximately 0.12 times. During the first half, we continued to invest significantly in our ongoing manufacturing expansion. Our balance sheet reflects this investment cycle, while our net leverage remains relatively low. We continue to place considerable emphasis on working capital management, particularly inventory planning, receivables, and cash generation. As our operations scale, we are focused on ensuring that our working capital requirements remain aligned with production schedules and customer deliveries. From a capital allocation perspective, our priority is to complete the ongoing integrated expansion efficiently and ensure that new manufacturing assets contribute to sustainable profitability and returns. Looking ahead, our priorities for the remainder of FY 2027 remain straightforward. First, we will continue to maintain operating discipline and focus on manufacturing efficiency across our existing facilities. Second, we will work towards the timely commissioning and ramp-up of our new integrated manufacturing capacity. Third, we will continue to strengthen our customer relationship, execute our order book, and improve our product and technology capabilities. Finally, we will remain focused on cash generation, working capital efficiency, and maintaining an appropriate balance between growth investments and financial strength. India's solar manufacturing industry is entering an important phase of growth and integration. We believe our manufacturing experience, established TOPCon capabilities, and focus on quality and reliability provide us with a strong foundation to participate in this opportunity. Our objective is to translate this opportunity into consistent execution, profitable growth, and sustainable returns on our investments. With that, I would like to thank everyone for joining us today. We can now open the floor for questions. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes on the line of Apoorva Bahadur with IIFL Capital. Please go ahead. Hey. Hi, sir. Hi, Swati. Thank you for the opportunity, and congrats on another strong quarter. In your presentation, you have mentioned that the plan for 16 integrated cell module capacity is progressing well. Can you give us some update on that? Have you awarded tenders for the machines and all? What's the progress? By when should we expect the first cell out from there? Yeah, absolutely. The update on the new expansion is going extremely well. I think we had long ordered all the equipments for the project. Construction is going at full swing. Out of the hard costs, pretty much all critical items have already been ordered, other than the small ongoing items that will be there. The module line, as Chairman mentioned in the speech, that it will be ready by December 2026, whereas cell line by March 2027, so you should expect the first sellout in that month. No, like commissioning and that. For cell, that maybe like- Yeah, added to Suhas. So see, already all the equipments are ready. Its FAT is going on, and more likely, we are planning to start shipping the equipment from the end of this month. So by November, the equipment will be in place. Sure, sir. Understood. The CapEx that you have mentioned on the presentation, I think it is about INR 55 billion, if I am not wrong, for 6 gigawatts and end modules. Correct. Yeah. So that would be about what, INR 9 billion per gigawatt. Whereas, sir, I think of late there has been a decline in CapEx costs significantly, especially for cell equipment. Why is there such a large divergence? Because the latest, I mean, the numbers that we get from the industry is closer to INR 5 billion-INR 6 billion per gigawatt. It is almost 50% higher than that. So this, what we have said is the integrated of cell and module. So you are also understanding same. Puru, that INR 5,500 crores is for both cell and module of 6 gigawatt each, and where the hard cost is around INR 4,600 crores. The remaining cost is for your IDC, contingency, margin money for working capital for soft costs, which we have also detailed out in the presentation as well as in the prospectus. INR 700 crores is margin money for working capital and IDC. Okay. Yeah. Yeah. I was just adding on to the last question of the CapEx cost. I was mentioning that our experience of manufacturing cells for the last 2 years of TOPCon cells and reaching an utilization of 89% in the last quarter. I think manufacturing, the nuances that require to build a cell manufacturing plant behind it is something that we have carefully planned out, including our choice of equipments as well as the way the plant is designed to build, including our operational efficiencies to bring down increased automation as well as bringing down the, we've gone over in the previous quarter calls. It's bringing down the silver consumption and these things. So, it's a holistic planned project, including new technologies. Understood. Can you also please enumerate if we have received any sort of incentive from the state government for setting up these capacities? We understand that quite a few companies are getting some such benefits, like CapEx subsidy or some sort of a rebate. Yeah, there have been incentives that we are eligible for and we are getting from the state government, both in the upcoming project as well as the earlier cell manufacturing as well. We have also declared that we have received capital subsidy for our earlier project from the state government to the tune of 25%. The same similar subsidies are there expected in the upcoming projects as well. Although we do not model it in our guidance or our projections, these are something that the company treats as an upside. Okay. Last question, if you can split that INR 5,500 crore CapEx between cells and modules, how much should we think? I think what we have communicated is INR 4,600 crores of the hard cost, out of INR 5,500 crores of total cost. Cells in? Yeah. We can get back to you, Puru, the details of this. We have noted your- Sure, sir. Okay. Thank you so much. Thank you. Next question comes from the line of Deepak Krishnan with Kotak Institutional Equities. Deepak, over to you. Hi, sir. Am I audible? Yes. Yeah. Just wanted to check with you, given the run rate that cell is already running at 89% utilization, maybe what is sort of the production number for the full year that you're targeting, both at module and cell levels for FY 2027? Yeah. Sir, cell is running at 89%, which is quite strong. More importantly, there has also been one achievement which we have highlighted that we started G12 cell manufacturing last quarter. With that, also our production levels have increased. With that, I think we should continue to see these utilization rates, which is close to 90%, for the remaining two quarters. On the module front, where do you see utilizations stabilizing at? See, module side brings in a lot of flexibility for us because we can choose. We typically say that the max utilization for module is around 60% approximately. But it brings in a lot of flexibility for us to choose the market opportunistically, whether to utilize that fully or whether to prioritize some merchant cell sales. Sure. If I look at the finished goods or if I look at the overall inventory of closer to, I think about INR 1,800 or INR 1,900 crores. How much of finished goods inventory would be sort of be sitting at, which that could sort of help our links? Finished goods inventory. Total inventory is around INR 1,884 crores. Out of that, around INR 860 crore is your finished goods, and the rest is raw material and some other stores and spares. Okay. The sharp jump in other current assets, that is largely advances to capital equipment companies. Is that the right understanding? This is a CapEx also, mostly for our new CapEx project. The advance is mostly for that. Sure. Maybe just on your guidance, you sort of stick to that 2,200 to 2,400, if we understand that correct? I think considering the first two quarters of our yearly projection that we have of INR 1,100 crores, we can definitely achieve the upper part of the guidance. Sure. Maybe just on the cell plant, I think you've sort of indicated closer to March, but where are we in terms of installation of balance of plant for cell? Are we nearly sort of done in that end, or what is sort of the progress over there? Yeah. Things will happen parallelly as the equipment hookup happens. As the Chairman said that the FAT is being done for the equipment, and these will be brought into the facility around November. So hookup as well as the balance of plant construction will be simultaneously going on. Most of the activities have already started at a very fast rate. Sure. Maybe just on the way we are seeing realization trends overall for both DCR, non-DCR cell module spread or absolute realization, whichever you want to sort of indicate, could you sort of highlight that as well? So if you see, all our order book is in the same line. I do not see anything is going to be on a negative on the margin sides. As of our orders are in hand, we have the margins what we have indicated is going to be continued. Sure. You would expect the same momentum to sort of continue. Yes. Sure. Okay, sir. Those were my questions. I will sort of join back on the queue. Thank you. Thank you. Thank you. Next question comes from the line of Parth Majithia with Ambit Capital. Please go ahead. Yeah. Thank you for the opportunity. Am I audible? Yes, sir. Yeah. My first question is on the working capital bit. I see creditor days have reduced from 64 days in FY 2026 to 25 days in first half FY 2027. Any thought on that? Is it a purpose-driven reduction, or what are you thinking on it? Yeah. Basically, it all depends on how we negotiate with our vendors also. Sometimes we get some better prices, and we use our credit days with them. This is a dynamic, but yeah, even we are having a large buying of our raw material and other things, so we try to optimize our procurement cost. Okay. That helps your cause as well. Yeah. Absolutely. Right. Okay. The second question would be that, I know you do not give the exact number, but how has the external sales of cell, so merchant sale gone through in this quarter? Is it at the same levels of the last quarter, or it has reduced? This quarter was broadly marginally higher, but it is not too different from last quarter. Okay. And the last question here. The margins for the non-DCR modules, what is your view on that? Is it the same as it was there before? Because in the module space, we have seen a lot of oversupply coming in. So has the margin been affected on, especially those non-DCR modules? That's a good question, sir. If you look at the margins for non-DCR, for the company, it has been broadly going same as what it used to be listing. We have been very particular in the space that we operate, in the demand space that we operate. There is a product differentiation, quality differentiation, track record differentiation that is available. Emmvee being a player with a large experience and a good customer concentration from utility and IPP segment, we are able to get a differentiation based on our product qualities. Okay. Sure. Thanks a lot. These were my questions. Thank you. Thank you. Next question comes from the line of Prasad Hase with Spark Capital. Please go ahead. Mr. Hase, please go ahead. Mr. Hase, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Hase, we will promote the next. That is Sudhanshu from JM Financial. Please go ahead. Yeah. Hello, sir. Hi. Congratulations for continued good performance. Sir, just three questions. Mr. Sudhanshu, sorry for interrupting. We cannot hear you. Hello. You are not audible. Can you speak a little louder? We cannot able to hear him. My first question is, renewable bidding is slow nowadays. How are you seeing your order book in FY 2027 and 2028, closing order book for this year and the next year? That is my first question. Sure, sir. Thank you, sir. If you see, for us, our order book is growing at a very fast rate. We see 1.5 gigawatt of order book. That is the highest ever in one quarter that we have got in this quarter. This is continuing to grow at a very strong rate, which I can tell you with very large confidence. If you look at the installation today, 27 gigawatt of first half of the calendar year, we have seen the AC installation, which translates to around 35 gigawatt of DC demand. We are at a trajectory of achieving about 64% of growth year-on-year, if you look at it on a whole year basis, if the same trajectory continues. That is a significant growth in demand that we are seeing, especially a lot also increasingly coming from other segments like C&I, rooftop, KUSUM, and other segments as well. Utility on a demand perspective has not come down because there has been significant projects that are there in the pipeline itself. Since more and more projects are coming into fixed dispatch of renewable power, hybrid projects that are coming in, it is increasing the AC-DC ratios that is requiring. The demand is, in fact, growing much more and more stronger. What we have seen in the past and learned from the past is that the tendering can always catch up, but it is the pace of installation infrastructure and the deployment that will usually take more time, which is going at a fast pace. Added to the Kusum, there is a non-tendered businesses has grown substantially compared to the earlier to now. It could be anything. Every month, approximately, it is growing more than 1.5 to 2 gigawatt of the demand. In addition to whatever the tendered one is going on, plus already tendered business is going on. What we have seen in the market is very interesting, is that we are able to get in all sort of like, it could be utility or C&I or in the rooftop or any business. The demand or the inquiries and the potential what is required by 2027 and 2028 is extremely high. The inquiries and the pipelines are very strong. Okay, sir. Thank you, sir. The next question is, so much of industry is coming out with the cell capacities, and we have 40 gigawatts as of now in the country. What is your assessment that how much India will have the cell manufacturing capacity in next 12 to 18 months, sir? Actually, for our Indian demand to achieve the present numbers of the growth of present first half of the year or the forecasted one, we need approximately 80 to 100 gigawatt of capacity, bare minimum, which is a utilization capacity. In that, even that 41 what you are mentioning is that, in that already you have to remove about 16 gigawatt of the mono PERC, approximately. Those things has to be removed, one. Also in the present capacities also now from M10R to G12R, this is also one of the important factor it is going to be there. We are seeing with all the announcement and with the people who are announced are not even coming, we are not able to see more than that capacity. Even sometimes we see that there is going to be a shortage in that. Because of another added one DC to AC ratio increasing substantially. The company truly believes that in the next couple of years, companies like us, and we have established customer base as well as doing business, we may need to add further capacities to meet the demand that is growing. Okay, sir. My last question. One of our peers has quoted a DCR module prices at INR 17. It is good to see that you are confident of maintaining margin. I want to understand what are the levers we have which will enable us to maintain this level of margin, even if the prices may come down? Thank you, sir. Presently, the market, the numbers are not in that level. It is in a better than that level. Even the numbers, whatever is going to be, it is for the tenders and other things what is being quoted, it is all going to be next year or the one next year, which is going to be supply will going to be taken place. The value addition is what is coming is, if you see that even initially when Emmvee started the supplying to NTPC orders in the beginning of the last year, we used to use the aluminum about 220 milligrams. Silver, sorry. Silver is 220 milligrams. Today, we are using around 60-65 milligrams. The second advantage is going to be there is what we are having M10R today in G12R. G12R, where already we are reaching about 9.5 watt, the question is 8 watt, what we used to have in the single cell format. Now it is going to be next year, it is going to be a further increase. With the value addition and other things, definitely the prices will going to be little less, but margin can be maintained. Even now if you see the overall efficiency on the manufacturing and also to the management, the cost will have a better advantage. That is only going to be passed to the customers. Okay, sir. Thank you so much, sir. Thank you. Next question comes from the line of Dhruv Muchhal with HDFC AMC. Please go ahead. Yes, sir. Thank you so much. Sir, is it possible to split your module sales for 2Q and for 1H between the category of customers? How much percentage share to utilities, to retail, to C&I, that way? Yeah, absolutely, sir. I can give you a broad split. About 25% of our sales is to the markets of retail and Kusum, and the remaining 75% split is for the institutional customers, both in the C&I and utility space. So it could be like 40/30, or it could be 45/35. But that's pretty much how the split looks like. And for 1H, it will be? It is similar, sir. Okay. Similar. That 25% and 75% is more important because I will just tell you some of our customers, they also have projects in the IPP, the utility, they also have projects in C&I. Depending on the delivery timelines, they choose to take delivery to the C&I order, or they will take the delivery to the IPP project. So, it depends on the timelines, depends on the project schedules. For us, the way we categorize is the institutionals, which both IPPs in the C&I and utility, as well as for industrial. Great. And sir, retail will include Kusum also? Yeah, retail includes Kusum as well. Pumps as well as Kusum C also, which is growing, which is much larger demand than the pump right now. Got it. That you gave is for modules, right? This is for modules. Modules only. Modules only. Okay. Sales is whatever we do is for the other manufacturer. Yeah, sure. Great, sir. Thank you so much. That is all. Thank you. Thank you. Next question comes from the line of Sahil Sheth with Anand Rathi Institutional Equities. Please go ahead. Congratulations, sir, on the quarter. My first question would be, now with ALMM becoming applicable from December end, are we seeing more non-DCR share for the third quarter, which can affect our EBITDA margin in a bit of a negative way? Yeah. Sir, good question. Actually, if you look at it, the requirement, what is required for the Surya Ghar Yojana or your DCR schemes of Kusum or other C&I segment is actually growing much faster. Today, if I have to tell you, if the ALMM is extended until December, that means even we are seeing some of our C&I projects where deliveries we have started, where the commissioning might be post-December. It takes time to install the plant, get the connections and running, and then commission the plant. In fact, I think what you are going to see is a much similarly, a much stronger quarter, in fact, going forward. Added to Suhas, see that the Q1 and Q2 also, there is no DCR requirement. Still, we are able to run the numbers because we already have the forecasted orders in hand. The second very important one, what we need to also, I wanted to highlight is that the DCR, any one month, two months change, or three months, whatever that has been extended, it is not going to affect too much to any of this thing. Reason is all the utility scale which is being bidded as per the tender document with the DCR, they have to must has to go, whether it is irrespective of whether the DCR has been extended to June to December or not. That is number one. Number two, that PM-KUSUM as well as the Surya Ghar, it is continuing. Only small variation going to take place is only under C&I business, which is also because of that six-month extension, it is not so easy for the people to establish and complete the entire project within five months. It is not even six months, what the extension has been given. Reason could be the closing of financial to the PPA and the price to the customers, and also to finally commissioning of the project. It is very clear you have to commission by before 31st. So the reality, it will not too much affect on that side. Okay. Got it, sir. Sir, previously you have guided around INR 2,400 crores of EBITDA for the whole FY 2027. Do we still stand by that guidance or is there any update on that? Definitely, sir. If you see the H1 numbers and last year H1 numbers, the numbers of that difference itself, if you calculate, we can be definitely have a very comfortable position to reach that numbers. Okay. Sir, my last question would be, if I see our revenue share per customer, the revenue share from the largest customer has increased to 44% in Q2 versus 19% in FY 2026. If you can shed some light on that. Quarter on quarter, the revenue share keeps changing, of course, because the delivery timelines and what is the this thing that will always be there. This is an ordinary course of business, I think there is nothing much to deliberate into that. There is no risk in terms of credit profile for that. Individual customer No, absolutely not. If you see the way module transactions happen, especially in Emmvee, we do with some substantial down payments with every order, and payments are either done before the dispatch of material from our factory, or it is done backed by LC. There is credit profile or anything that usually does not come into the case. In fact, it is a very healthy way of doing business. Got it, sir. Last question would be that there has been a significant decrease in other expense sequentially. Is there any individual expense with one-off expense which has led to this decrease? No. There are multiple ways operational efficiency has been brought in, like in all aspects. One of the examples is power. For example, is something that we have gone more and more into open access power, looking at substituting with the normal power. You can see in our presentation also, 100% of the power we utilized in the last quarter is with renewable energy. Which reduces the cost drastically. This is one example. Like that, in every department there is something. Pawan would like to add on. Yeah. Other than the cost optimization, this time we have some forex gain also, which is relating to the cost last time. This is clubbed under the expense, so that also is making a difference for other expenses coming down. In our cell manufacturing, we have added automatic guided vehicles, which reduce the people that are required to run the lines. There are more expenses than the Okay. We can expect similar level of other expenses going ahead too? Yeah. Yeah. Until the function kicks in, yes. Correct. Thank you, sir. That was very helpful, and all the best. Thank you. The next question comes from the line of Subramanian Yadav with SBI Life Insurance. Please go ahead. Thank you, sir, for the opportunity. Sir, if you can give us some color on the order book, how much would be DCR and how much would be non-DCR? Also the order inflow for this quarter seems to be largely from IPP. If you can share some detail on that also on client or DCR, non-DCR. The DCR and non-DCR split of the order book is around 70% DCR and about 30% non-DCR. Sir, on the new inflow for the IPP, if you want to give some color on that. Yeah. The new inflow is primarily from the IPP because whatever for the retail and KUSUM market, it is mostly done on spot or with a small timeline of within 30 days kind of a delivery timelines. Whereas for the IPP is when it is coming with a more larger timeline. Maybe 3 years kind of a bit or 2 years? No, no. Delivery timelines is all within 12 months. So if you can also say out of this order book, how much is deliverable in next one year and how much would be next two years kind of look? Out of the 10 gigawatt order book, we should have about 5 to 5.5 gigawatt that is delivered in the next 12 to 15 months. Okay. And sir, if you can also say how big is the G12R market right now, and have we converted all our lines into G12R or still we are doing M10 and the relevance of that? Right now we have converted more than 50% of our capacity to G12R. The remaining we have some orders in hand to complete the M10R, after which we will convert everything. We have seen the transition of conversion for us from M10R to G12R is not a big deal because our lines are designed for running to the extent of G12, which is 220 mm. Right. It is a quick transition for us. Every line can run on G12. Sir, incremental demand this quarter and our ordering flow, everything is coming in G12R? There is a mix of these things in DCR. In non-DCR, everything is coming to G12R. In DCR, there is a mix of G12R and M10R. Okay. And sir, when can this industry transition to G12 cell? Would that take more time or As of now, it doesn't look like there will be a transition to G12, at least in the coming near future. Because I think in the Indian market as well as pretty much globally outside China, you see that most of the market is still on G12R because it is a more comfortable way for installation and after installation also structure cost and everything. So that is the thing. But there are other ways that efficiencies are increasing and other things that are going on, which we will also be announcing soon. Okay. If you lastly can let me know what is the mix of DCR and non-DCR in our sales this time around? How would that move over next quarter? Mix in our sales. In our existing sales. Yeah. Yeah, I think we said there is more than about 50% of our sales was DCR, so majority was DCR this time. Next half also, the DCR component will be higher in execution? Yeah, it's going to continue this quarter. Okay. Thank you very much. Thank you. Thank you. Next question comes from the line of Mohit Kumar with ICICI Securities. Please go ahead. Hi. Good afternoon. I hope I am audible. My question is on the DCR order book. How much is DCR sales and how much in DCR model? Is it possible to break it separately? Sorry. We are right now not giving a split, but we can share that with you or we can share it after the testing. Understood. My second question is on the open access and C&I. Given that the deadline is now December sixth, are you getting inquiries from the open access C&I and are you seeing that inquiry increasing over last three, four months? Yeah, absolutely. We have seen the open access inquiries consistently go up. Of course, in the last three months, there has been no changes at all, especially because people have geared up to do DCR in their open access inquiry, which is pretty much a compulsory. We have also seen inquiries. We are also having deliveries execution also that has gone up for open access, including DCR open access as well. Is it possible to bifurcate your order inflow in CY in Q2 between open access? Can we get some share of open access? How much would be open access in Q2? Yeah, I think around 40%-45% should be from open access. Open access C&I. And that's only from- Yes. Okay, understood. This C&I. Thank you. Very helpful, and wish you all the best. Thank you. Thank you. Next question comes from the line of Uttam Naik with Nuvama. Please go ahead. Hi, sir. Congratulations on the good set of numbers. Just a bookkeeping question from my side. Can you please split your capacity into mono PERC and TOPCon, your current capacity? No, we have zero mono PERC, sir. We have everything TOPCon from the last two years. All right. Thank you. Thank you. Next question comes from the line of Aritra Banerjee with Nomura. Please go ahead. Yes, thanks for the opportunity. Congrats on a decent set of numbers. Sir, my first question is regarding this implementation of ALMM List-II. Do you see any possibility of it being further deferred beyond the December 26 timeline, given that the cell capacity approved under ALMM list is still not sufficient to meet the entire domestic demand, or would you expect it to be implemented in December 26? Sir, see, the implementation of ALMM List-II has actually been very less to do with the capacity that is required for the overall capacity impact. Because it is not supposed to be looked at cell manufacturing capacity versus your module manufacturing capacity. But rather it should be Sir, I think there is some disturbance. There is some background noise. We are not able to hear properly. Hello, Paras. Can you speak? Yes. Speakers, please go ahead. Mr. Banerjee, please go ahead. Yes. Am I audible? Yeah. Yes. You are audible now. Yeah. Yeah. I was asking, do you see any risk of the ALMM List-II implementation being deferred after December 2026? Sure. We got your question. What I was saying is that ALMM List-II implementation after 2026 deferment looks extremely unlikely, especially that there is significant amount of time that is given for the industry to realign. We have seen that work on the open access side has also already started, and the government is emphasizing on looking at implementation of ALMM List-III for ingots and wafers. It looks right now extremely unlikely. I was addressing your point on the capacity that is required for the implementation. What I was trying to say is that a capacity of module versus capacity of cell is not the right thing to look at. Rather, it is to look at that there is a phased implementation of this ALMM that is going to happen, right? Because your utility of whatever projects that were built under until August 2025, they still have some time to get into ALMM, get into two. In fact, in our order book, as we told you, there's 30% of non-DCR orders that we have. Many of those projects are delivered during the next year. That is something that means there is still demand for that. I think it's very clear that we probably will not see that expansion. That's good, sir. My second question is regarding your customer share. Given that more and more new cell capacity is coming online, what will you say are your top two, three key differentiators, which will enable you to defend your wallet share of the top customers versus the upcoming new entrants in the cell manufacturing space at least, or DCR space overall? Sir, I think for us it's extremely clear because we are the first TOPCon cell manufacturers in the country. So our track record of manufacturing, our experience of manufacturing and the way our efficiencies are, or the product quality that is there, it is a clear differentiator and it is something that the developer community usually recognizes extremely well, as they have done for modules itself. Today we have seen in modules how we have consistently differentiated amongst the new capacities as well as existing capacities amongst everyone. There have always been a few players who have been able to differentiate themselves. Similarly, you will see in cell that is going to be much more the case. Understood. My last question is regarding the margins. So despite the increase in raw material prices of steel and aluminum, you have still been able to defend your margins, which is commendable. Just wanted to understand now that the raw material prices are kind of moderating, do you see any positive impact of the same on your overall margin profile? Just if you could provide some color on that. See, sir, usually what happens, most of the pricing, what happens is either the raw material pricing, efficiency of the modules or cells and the operational efficiencies, it's a function of that when it comes to pricing. So in case, we have seen when silver was increasing, we were able to reduce the consumption of silver, which offset that, this thing. Similarly, we were able to transition from M10R to G12 while increasing efficiencies, as well as increasing the efficiency naturally as well. So these are certain things that usually get transferred to the customers. Like eventually we have seen that these things get transferred to the customers. This is how our margin per watt peak or our ROCEs are protected on a long-term basis. Thanks for answering my questions. All the best for the coming quarters and Happy Diwali to you in advance. Thank you very much. Thank you. Next question comes from the line of Prasad Hase with Spark Capital. Please go ahead. Yeah, thank you for taking my question. Am I audible, sir? Yes, you are audible, sir. Yeah. My first question was, against our module production of 952 MW this quarter, cell production increased significantly, nearly 513 MW. If on a production basis, if we calculate, the DCR mix stood nearly 54%, significantly higher than 47% in previous quarter. What we expected was, basically it would aid the gross margins for this quarter. However, if you look at, there was a bit moderation sequential in gross margins. If you can highlight what has led to this. No, absolutely. I think that's a good observation. But no, the gross margins, as I was explaining in the last question, that the pricing is a function of many things. One is the operational efficiency, the other is the RM cost, then the third is the efficiencies of our modules increasing itself. When you look at it, as a function of that is the pricing that comes into. If you see that the improvement in operational efficiencies are also a function of the end price that we give. If you look overall, this is how the EBITDA is justified, protected on the unit economics basis, where EBITDA per watt peak, what we usually look for. Okay. Understood, sir. Sir, again, on the production side. Our production volume for modules were largely flat sequentially, and the utilization levels were 44%, which we have been for last two, three quarters. Just wanted to get some sense on, if you can guidance how the utilization improvement journey could pan out over the next two, three quarters. Sir, that's what, as I explained earlier, that utilization for module can go at a maximum average of about 60%, 67%. But the flexibility of utilizing it further is something that we usually retain based on the opportunistic scenario. We are very conscious on the markets that we operate, our quality that we operate and the emphasis of the production schedules and the flexibility of the configuration that happens. With that keeping in mind, our utilizations will be broadly in the range of 45%-60%. Okay. And sir, one question was on order book. Largely now our quarterly run rate have been 1.5 gigawatt. Actually, keeping in view the upcoming capacity of 6 gigawatt in module, we anticipated some build-out in orders from this quarter itself. In next quarter, can we see some kind of quarterly uptick in the order inflows? Certainly we are continuing to see a quarterly uptick, but I would like to highlight here that the order book that we have consists of orders that are required for the upcoming 6 gigawatt expansion as well. As I mentioned that out of our 10.4 gigawatt of order book that we have, about 5 to 5.5 gigawatt is delivered within the next 12 to 15 months. It is also important to recognize that 25% of revenue share that we are getting from the retail market, which consists of Surya Ghar, KUSUM Scheme, as well as small EPCs that happen. These are done mostly on a spot and ongoing basis, which 25% is also a significant amount. Then, I would also like to highlight, most of the C&I orders that we get are executable within a 3-month period, right? These things are something that we will ongoingly see. Our order book is at a very healthy level that is required for the next financial year. Okay. Currently, the 10.4 gigawatt is considering the capacity additions which we are building in next quarter? Yes, yes, absolutely. In fact, even the last quarter was also consistent with that. This quarter is further reinforced, and this will continue to reinforce. This will continue to grow. Okay. And sir, last question was on borrowing. So we have seen nearly INR 800 crores of borrowings on our books during first half. Our finance cost, however, was on similar levels on a sequential basis. So, in third quarter, will we see increase in finance cost? No, I mean Yeah. Yeah. So finance cost, if you see, because right now, whatever the debt drawdown, we have taken INR 828 crore in last quarter. So it was basically for the new expansion project. So the entire interest cost right now is getting capitalized till we commission the cell and module. So that is not having any impact on the finance cost. And in fact, there is some reduction in the finance cost. This is because of that optimum utilization of the working capital. Also, in June quarter, we have repaid around INR 55, 56 crore, the whole entire loan. So that is also getting reflected this quarter. So my finance cost is even overall lower than the last quarter. Okay. Since we are capitalizing, largely the quarterly run rate will remain at similar levels, right? Yeah. It will be till December and then when we will be having module and commission, some amount will come in March and full amount will start coming from quarter 1 of next year. Okay. Okay. Understood, sir. Yeah, that is it from my side. Thank you for taking it. Thank you. That was the last question on behalf of Emmvee Photovoltaic Power Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.