Ladies and gentlemen, good day, and welcome to the Saatvik Green Energy Q2 FY 2026 earnings conference call. As a reminder, all the participants' 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 telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kunal Shah. Thank you, and over to you.
We welcome everyone to the 2Q FY26 earnings call of Saatvik Green Energy Limited. We have on the call the senior management, Mr. Neelesh Garg, Chairman and MD, Mr. Prashant Mathur, the CEO, and Mr. Abani Jha, the CFO. At this point, I would like to hand over the call to the senior management for their opening remarks. Thanks, and over to you, sir.
Hi. Good morning, everyone, and a very warm welcome to the quarter two and first half FY 2026 earnings call of Saatvik Green Energy Limited. I hope you and your family had a wonderful festive season. It gives me a great pleasure to connect with all our investors, analysts, and stakeholders once again. The first half of this financial year has been a period of strong operational execution, strategic progress, and continued growth for Saatvik. The renewable energy sector in India is at a pivotal stage of transformation, with the government's target of achieving 500GW of non-fossil fuel capacity by 2030, and initiatives like PM Surya Ghar Muft Bijli Yojana , PM KUSUM, and the CPSU Scheme Phase II. The policy environment is extremely supportive of domestic solar manufacturing.
At the same time, India's energy demand is expected to grow at a CAGR of 5.5%-6% through FY 2030, creating enormous opportunities for capacity expansion and technological advancement across the renewable energy value chain. Amid this evolving landscape, Saatvik has further strengthened its position as one of India's leading solar module manufacturers, based on a foundation of quality, technology, and reliability. Our strategic focus remains on scaling capacity, expanding our technology base, and building an integrated presence across the solar value chain. During the quarter, we continued to make significant progress on all our key priorities: expanding manufacturing capacity, deepening customer relationships, enhancing backward integration, and diversifying our product portfolio.
Our Ambala facility is now fully operational at an annual capacity of 4.8GW , and we have achieved high levels of utilization, supported by a strong order pipeline and repeat business from our key customers. With strong execution in the first half and a healthy order pipeline, we are well on track to achieve our yearly targets. The steady progress across our manufacturing operation and project pipeline gives us clear visibility to deliver on our full year growth and profitability range. I'm also pleased to share that our greenfield integrated project in Odisha, comprising 4GW of module and 4.8 GW of solar cell capacity, is progressing well on schedule. We expect the first phase to be up within our target date.
Once commissioned, this facility will be a major milestone in Saatvik's journey towards full backward integration, strengthening our cost competitiveness, and contributing meaningfully to our growth trajectory in the coming years. Another key highlight is the successful launch of our UDAY Series of on-grid solar inverters, marking Saatvik's entry into the distributed solar and B2C segments. This initiative expands our presence across the solar value chain, positioning Saatvik as a comprehensive solar solution provider, offering modules, inverters, and EPC services under one trusted brand. Our consistent focus on high efficiency modules, technological excellence, and dependable delivery timelines continues to differentiate Saatvik in an increasingly competitive market. With a robust balance sheet, strong order visibility, and clear strategic direction, we are confident of sustaining the growth momentum in the years ahead. With that, I would now like to invite our Chief Financial Officer, Mr. Abani Jha, to take you through the detailed financial performance for the period. Thank you.
Thank you, Neelesh. Good morning, everyone, and thank you for joining the Saatvik Green Energy Limited earnings call. I hope you have all had the chance to look through our Q2 and H1 FY 2026 results and the investors presentation, which are accessible on both the stock exchanges and our website. I'm pleased to share that Q2 and H1 FY 2026 have been among the strongest period in Saatvik's history, reflecting the company's solid execution, the strong demand environment, and disciplined financial management. Let me now take you through the financial highlights. Revenue from operations for H1 FY 2026 stood at INR 16,838 million, representing a robust 133% growth year-on-year, compared to INR 7,213 million in H1 FY 2025.
EBITDA for the first half grew 135% year-on-year to INR 3,046 million, as against INR 1,295 million last year, with EBITDA margins at 18.09%, sustaining healthy double digits despite the rapid scale-up. Profit before tax increased to INR 2,458 million, up 135% year-on-year, while profit after tax rose to INR 2,021 million, marking a 146% year-on-year increase from INR 823 million in the previous year. During FY 2026, we had a high capacity utilization of 82.64%. For the second quarter at all, revenue stood at INR 7,680 million, up 62% year-on-year, with a PAT of INR 832 million, an increase of 36% over the same period last year.
EBITDA for Q2 was INR 1,235 million, translating to a margin of 16.08%. On a sequential basis, when compared to Q1 FY 2026, the company reported a moderation in performance. Revenue stood at INR 7,680 million in Q2 FY 2026, as against INR 9,157 million in Q1 FY 2026. EBITDA was INR 1,235 million compared to INR 1,811 million in the previous quarter, while PAT stood at INR 832 million versus INR 1,188 million in Q1. This decline was largely on account of the monsoon season impacting project execution, delays in customer project schedules, and the deferment of deliveries following the GST rate reduction.
These factors are temporary in nature, and we expect a rebound from Q2, Q2 onwards as execution picks up. Saatvik remains financially strong and disciplined. The debt to equity ratio improved significantly to 0.44 compared to 1.66 in the previous year. Our return on capital employed for FY 2026 stands at 21.85%, demonstrating robust profitability and efficient capital utilization. The company's order book remains healthy at approximately 4.68GW as of 30 September 2025, providing a strong visibility for the coming quarters. Capacity utilization during Q2 averaged over 83%. On the operational front, we successfully scaled our Ambala manufacturing facility to 4.8 GW during the quarter.
The Odisha greenfield integrated project, with 4GW of module and 4.8GW of solar cell capacity, continues to progress on schedule, with phase one commissioning expected in Q4 FY 2026. Post the close of the quarter, I'm happy to share that our subsidiary, Saatvik Solar Industries Private Limited, has received and accepted new domestic orders worth approximately INR 2,994 million from three leading independent power producers and EPC players. These repeat orders, scheduled for execution between December 2025 and March 2026, further strengthen our revenue visibility and reaffirm customer confidence in our capabilities. Overall, the first half of FY 2026 reaffirmed that Saatvik's growth is both accelerated and sustainable. Our strong top-line expansion, consistent margins, and improved capital structure highlight a scalable and disciplined business model. Looking ahead, we remain focused.
With a strong order book, expanded capacity, and solid financial foundation, Saatvik enters the second half of FY 2026 with confidence and clear visibility for sustained growth. Thank you very much.
Can we begin with the question and answer session?
Yes.
Okay. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on your touchtone telephone. If you wish to withdraw 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 from the line of Raman from Quant Investments . Please go ahead.
Hello, sir. Good morning. I'm fairly new to the company. I just want to understand that with, we have a current capacity, module capacity of 4.8 GW, and we have a greenfield CapEx coming, which will be coming in FY 2027. What will be our module capacity by the end, at the end of FY 2027, and will there be any cell capacity also commercially operationalized?
Yeah, good morning. I'm Prashant Mathur. After this Odisha project of module is commissioned, our capacity for module will be 8.8 GW. Along with it, we are coming up with cell capacities also of 4.8 GW, which will be in two phases. The first phase is 2.4 GW. So module will be commissioned in the end of this financial year, and we should see revenues coming in the beginning of FY 2027. And the cell will also come along the same time, but it takes a little more time to stabilize, so we expect the revenues from it to come from the second half of FY 2027.
Basically, by Q4, you will be having 2.8 GW of cell capacity, and assuming it will take 3-4 months to stabilize, from Q2, Q3 onwards, your cell revenue will also start contributing towards your top line, right?
Yes, around the same time. So first phase is 2.4 GW, and the second phase will be after that. So, it will be following 2.4GW . So 2.4 cell should come somewhere around the third quarter of the next financial year.
The remaining and the phase two, remaining 2.4GW?
Yeah. So that will be following this capacity. So we are expecting around six to nine months for the 2.4GW additional to come online.
Okay. And sir, how much incremental revenue are you expecting from this cell capacity to grow in FY 2027?
So cell basically helps more on the EBITDA and the flat side, because cell will ultimately be consumed internally for our modules. So additional profit is what we are expecting from the addition of our cells. However, module capacities, which we are adding, will give additional revenues in our balance sheet.
Understood, sir. Sir, I also... From the presentation, I can see you have a solar pump and inverter division also. You have recently forayed into solar inverter. What was the revenue from solar pump in first half, and how are you planning it to scale in FY 2027? And similar with respect to the solar inverter, how are you planning to scale this revenue from solar inverter in FY 2027? If you can provide any guidance, it will be helpful.
Yes. So solar pump was incubated last financial year, and in the first half of this financial year, we have executed about 395 pumps and with a revenue of INR 9.41 crores. And this is expected more executions are expected in the second half of the year. Inverters are very very new. We have, you know, launched it about a month back, and we already started booking revenue it, on it. We will be able to give you more numbers clarity in the next quarter results.
Hello, can you hear me?
Yeah. Yes.
Just to follow up on the solar pump division, in FY 2027, can you scale this division to, let's say, about INR 50 crore?
Difficult to give a number, but yes, that expectations are reasonable.
Okay, sir. So, my last question is with respect to the order book. We have 2.68 GW of order book. What's the execution period, and, can you, if possible, can you give us the, order book pipeline and what's the wind date?
Yeah. So 4.68 GW is as on 30th September. We add new orders, and we also supply out of these orders. The order book is normally from 9-12 months, and the order book continuously gets added. So, yeah, so that's on the order book. Now, since w e will have our Orissa capacity also coming in the end of this financial year. So our current order book demonstrates almost 97% of our installed capacity, which denotes that almost all our capacities are booked for the year. Also in this order book, we do not quantify spot orders as well as the distributors' retail orders, because they are very short-term orders, and they come and get dispatched in a very short cycle. So that are also very significant, you know, numbers, but these are not in the order book.
Okay, understood, sir. I'll join back end of you. Thank you.
Thank you.
Thank you. Ladies and gentlemen, a reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Vyas, an individual investor. Please go ahead.
Hi, sir. I have a couple of questions. My first question is regarding revenue and margin guidance for upcoming quarters. So can you elaborate on the same?
Yeah. Good morning, Vyas. So on the revenue guidance, we have continuously been growing at the CAGR of 88% in the last few years. What I can say is that we will continue to give good and strong results, and we expect to grow in around the same similar kind of range in the coming financial year as well.
Sir, what is on EBITDA front? Like,
On the EBITDA front also-
What is the sustainable EBITDA?
Yeah, on the EBITDA front also, our last year EBITDA was 16%, around 16.5% overall in the year. We expect that this year also will be in the similar range. So you can calculate, you know, the kind of results we should expect in the coming quarters as well.
O kay, sir. My other question is, sir, regarding tax. What is the we can expect average tax rate, as it is very much fluctuating in quarter 1 and quarter 2, so what can we expect the average tax rate for FY 2026?
Tax rate?
Yes. Yeah.
So, see, our subsidiary, Saatvik Solar, has the preferred income tax rate, which is at the rate of 15%. So if you will see the trend, if combined on the overall percentage to the revenue, it is on the downward trend, because more and more revenue is coming from the subsidiaries, the latest technology capacity. So as the revenue grows from that particular company, the tax rate will further rationalize. So, in Saatvik Green Energy, we have normal tax rates, while in comparison, Saatvik Solar has a preferred rate at the rate of 15%. So more revenue from Saatvik Solar, the lower tax rate overall.
Okay, but can you provide the range, like what will be the average rate for FY 2026?
So, I have told you the 15% income tax rate in Saatvik Solar and 25% in Saatvik Green Energy Limited. So we are expecting more revenue to come from Saatvik Solar Industries. You can see the tax around in the range of about 20%, 18%-20%.
Okay.
Yeah.
My last question is around the order inflow. Like, at the end of FY 2026, we are about to have 8.8 GW of capacity, and our current order book is around 4.8GW. So what is the order flow intake for FY 2027, if you can guide on the same?
Yeah. So, order book is a reflection of your capacity. So, our capacity was 3.8GW till a month back. Recently, we have added 1 gigawatt in Ambala, so now we are 4.8GW . So it is reflective in our order book also. The last quarter, our order book was at 4GW , 4.01GWGW or 4.05. Previous to that was around 3.6GW . So as our capacities are growing, we are booking more orders.
Since these orders have to be executed in 9 to 12 months, so, as the visibility of our new line will be coming, we will start booking our orders in the end, by the end of Q3, because that will be reflective of our new capacities. Also, when you are adding capacity, like 4 GW, we are adding modules in Odisha, it takes little time to ramp up also, and optimize the equipment. So, the revenue from that 4 GW will also kind of get ramped up in 3-4 months, the production coming from those as well. So, we will keep booking orders based on our capacities.
O kay. Got it, sir. Sir, I want to talk regarding macro file-
Sorry to interrupt m ay I request you to join the question queue again?
Okay, thank you.
Thank you. The next question comes from the line of Dhruv from HDFC AMC. Please go ahead.
Yeah, sir, thank you so much. Sir, you have given the production numbers of module, and, if I just, do a realization and EBITDA calculation based on the production numbers, I see that the realization and EBITDA has declined per watt basis. The EBITDA and realization has declined in Q2 versus Q1. I'm not sure if this is the right representation, so if it would be helpful, if you can give the sales number also, please, of modules.
Sales, sales numbers.
Yeah, module sales megawatt for 1Q and 2Q, and even if possible, for same year, last quarter. Sorry, same quarter, last year.
Just looking it out then. Yeah, just a minute. So Q1. Okay, you can give. I think you have the numbers. Total sales megawatt.
Yeah. In six months last year till September 2024, our total sales in megawatt was 426MW. This year, we have done 1,138MW .
Sir, if you can split for 1Q and 2Q also, please, for this year, and same for last year
Yeah. So in Q1 last year, we have done 268MW in the first quarter, against which we have done in June 25, 599 MW. And, so that is in Q1. And overall, for- So for overall, this year we have done 1,138 MW against 426 MW.
Against 436MW. Okay, so just one second. Okay. So, sir, the, your production has increased QOQ, your, module sales are down. So just wanted to understand what is driving this, and, is there some abnormality here?
Yeah. So there were, there were two factors. One was heavy rain. So there were about 4-5 months of continuous rains in this quarter, and also because module GST has reduced from 12%-5%. So there were... The sales were, it was announced in, on fourth of September. So from fourth of September to twenty-second September, which is about 18 days, the billing was not happening because the customer, mostly the developers, they do not have an output on the GST, and there was a significant reduction in the GST. So we could not recognize the revenue. The invoicing happened, but our policy is that until the dispatch also happens, we do not recognize the revenue.
So you see that the production has increased, but the sale did not happen because we were left only from 22nd, is when the billing started. And there was big shortage of trucks and logistics availability because the same was happening across the board, you know, electronics, cars. Everywhere, there was t he sales had stopped, so transport was not available. That has affected the numbers which are visible. And because of that also, since the expenses were booked, revenue was not booked, you also see the impact of that in the EBITDA and the profit also.
Okay, got it. And so from October onwards, so after 22nd September, and then October onwards, have you seen that ramp up in the sales run rate? And I mean, has it caught up to your production levels?
Yes, of course, that has increased. Also, rains in North India has kind of stopped, but i n Maharashtra and in some Gujarat, and also in the South, and also in Odisha, those kind of areas, still waterlogging is there on site. And when you have those kind of situations, this is a situation which was quite abnormal and kind of a double whammy quarter as well as GST and transport. So it is now stabilizing, and you will see the impact of positive impact in the quarter three.
Got it. And sir, is it possible to quantify? I don't know if it is, one can, you know, deduce that, but, what is the impact of this, excess cost in your numbers in, say, 2Q? Because you did the production, but you were not able to, sell it, so probably there's some extra cost allocated there. So is it possible to quantify that? Because, to some degree, EBITDA is, you know, reflecting that impact.
It's not fair to quantify it, because it is a complex, but I think Dhruv, Rathi, so that won't be a kind of a major chunk of overheads. The large part of overheads is coming from the periodic provisioning what we have done in the financials. Now, if you have gone through the financials in totality, so the impact on the overhead is INR 22 crore compared to the previous year, same period. Now, if you see the reasons for it, there are a few reasons which I would like to mention here. The majority of them, without quantifying those, is as per accounting standards, you have to reinstate your liability on the closing day of any period, so in this case, six months. So the major impact of overheads come from the foreign exchange fluctuations. Then there are things, we have now done the IPOs. There are certain IPO expenses, some part of IPO expenses, which cannot be set off through the IPO profits, so therefore it, it has to go to the P&L, P&L account, which is one-time adjustment. Okay?
Then there are, since our sales are on the high level, so we have to have a larger working capital. And to get those working capital, you have to expend some money on that as well. So these are the three, four expenses which are largely the contributor in the higher overheads. Some of them are one time, and like foreign exchange fluctuations are the accounting treatment, so it will continue.
Got it.
So if you will say, add back to your, the number what we are reporting, you will get perhaps the same kind of profitability ratios as we have shown in the Q1.
Okay, got it. So the unit and percentage profitability remains broadly the same if you add back all these,
Correct.
One can say one-off or whatever. Yeah.
Correct .
Perfect, sir. This makes sense. And sir, the last question is on the expansion plan, the Odisha plant. What are the key milestones that you are tracking in terms of, you know, the project is coming on track, what do you expect? Say, for example, Q4, the cell plant is coming there. So for example, land leveling is done, the utility is probably, say, 30%, 40%, I don't know. Something. If you can share some, you know, physical parameters as to where the project is to get better comfort in terms of the commissioning timeline.
Yeah. So the project has various steps. You know, one is the civil work, and the other is the shared erection and the utilities. The other is the equipment, and then, you know, installation and electrical. So everything is moving as per the plan. We are starting our PEB erection in next week or so, and it normally takes about 45-60 days for the PEB erection. And from w e are targeting from February, we will start our equipment inside the plant and installation in next 4 weeks, and should start our production by end of March. So that is the kind of steps which we are taking.
Got it. And the technical expertise to install the plant and all those, in terms of resource availability, getting, I don't know, the visa approvals and all those, that's that's going on very smoothly now?
Yes, yes. That, that problem is no longer a problem in India. Now, Chinese visas are also coming in. Also, you have technical skill set available. There are Chinese as well as Taiwanese, Thai, Cambodia, Laos, Indonesia. So there are enough cell lines also outside China, and skill set is available. And also now India also has a skill set available, so it's not a black box anymore setting up cell line.
All the necessary approvals have already been obtained from the government, and there is no stoppage now on any front.
Got it. Perfect, great. Thank you so much, and all the best. Thank you.
Thank you.
Thank you. The next question comes from the line of Mangesh from Allcargo Family Office. Please go ahead.
Good morning, sir. Hope I'm audible.
Yes, sir. Good morning.
Sir, a couple of questions. First, we just wanted to understand the trend in realization for your upcoming quarters for the module. If you can, you know, share that number, say, in terms of cents per watt or Rs per watt. So what kind of trajectory you are seeing on the pricing front in the module space?
Sorry, your voice was not clear, but as I understand, you're asking about the trend of the realization?
Yes.
Okay. So the module prices currently are in the range of about $0.15, $0.145, $0.155, $0.16. That's the price which modules are selling at. And EBITDA normally is around 16% EBITDA. That is the kind of realization you can even expect.
Sir, basically, for your upcoming orders, are we keeping this similar, realizing the similar trend, or you're seeing some pressure on it? That's the, that's what I wanted to understand.
No, we are keeping around the same numbers. We are not seeing much pressure because the demand market has quite significant demand. And also now second half of the year is normally very busy because you know, first half you have first quarter, you have budgets new budgets coming. Your depreciation benefit has been taken in the last quarter. Then you have rains, you have several festivals. So normally everything gets sorted out by the end of second quarter, and third and fourth quarter are normally very busy anyways. So I think we should see good flow, good dispatches, and demand is also quite strong right now, so no pressure on that front.
Great, sir. Great. Good to hear. And, just wanted to also understand, you know, your revenue breakup in terms of, you know, how much is for IPP, C&I, and how much would be the retail or other parts. You can give us, you know, that number.
Okay. So, you know, when you have those kind of volumes, you have large customers. And so our utility segment is almost 70% of our sales. Retail C&I is about 25% of our sales. EPC is about 3%. Exports is 0.5%, 0.4%.
Got it, sir. Last question is on, you know, Odisha 4.8 gigawatt cell plant. Just wanted to understand, what is the total CapEx only for the cell plant, and has there been any, you know, upward revisions or downward revisions in the total CapEx for this?
No. The total CapEx, which we are doing only on cell project, is INR 1,300 crore for 2.4 GW, and so there is no upward division in the project cost.
Understood, sir. Thank you. Thank you, sir.
Thank you. The next question comes from the line of Piyush Chadha from Cirdeep. Please go ahead.
Hi, thank you for the opportunity. Just very quickly, we would have around 1.2GW of module capacity in Q3 and Q4 of this financial year. Would it be fair to assume that we would be able to produce and sell around 1GW each quarter?
Sorry, we missed your question. Can you please repeat?
Yes, of course. We have around 1.2GW of cell capacity per quarter for Q3 and Q4. Would that be correct?
Yes.
Right. Module capacity, not cell capacity. If we have 1.2GW of capacity, would it be fair to assume that round about 1 gigawatt can be produced and sold each quarter?
We will have 2.4GW cell capacity in the second half of FY 2027.
My apologies. I actually meant module. I used the wrong word. For Q3, Q4 of this financial year, we would have module capacity of 1.2GW per quarter?
Oh, okay.
You're dividing 4.8 by 4. Okay.
Correct.
Yes. Yes, yes. Oh, so you're saying one gigawatt per quarter, is what you're saying, will be able to sell?
Yeah, it is fair to assume that your numbers are on track, yeah.
1MW is roughly around about INR 1.2-INR 1.3 crore worth of value today from our. Is what we would invoice?
Correct. Yeah, 1 GW will be about INR 1,200, 1,250 crores, 1,300 crores, yeah.
Would it also be fair to assume that module sales are around about 85%-90% of our revenue, or would they be even more?
Even more, I think, at this point of time.
Great. Thank you. That answers my question. Thanks a lot.
Thank you.
Thank you.
The next question comes from the line of Darshil Jhaveri from Crown Capital. Please go ahead.
Hello. Good morning, sir. Thank you so much for taking my question, sir. Hopefully, I'm audible.
Yes.
Hello? Yeah, yeah. Hi, sir. So, my questions were a bit in line with our previous participants' questions only. So basically, I think if we calculate H1, H2, right? Last year, H1 was 38% of our revenue, and H2 is 66%. So is that a fair, you know, assumption that we can make? Because based on what we answered to the previous participant, 1GW can give us a realization of around INR 1,200 crore. So in H2, we should be able to do INR 2,400 crore? Roughly.
So it will be difficult to quantify, but as Mr. Prashant Mathur has said in his earlier reply, that we are on track to achieve our projected numbers, and we would be in the same proportion of sale as we have done in last year.
Okay. So same proportion of H1, H2 of last year can be done. So, like, the 80% growth that we are saying, that we maintain, right?
Yeah, it's not correct, but that is t hat is, we have already provided our response on this.
Yeah. Okay , fair enough. I just want to know, any chance of, like, any execution delays? Because when you say some people are not taking accepting orders, so, you know, is there a risk on that? We know all that was just because of GST, right? Just wanted to know, like, in terms of, like, we've been able to produce, so is, is the offtake also happening in the similar manner that we are producing?
Yes. Yes, yes. Offtake is happening. You know, when GST reduction was happening, even white goods and daily needs also, people were postponing. So this is a product where 12% was becoming 5% straight, and it was an 8.7% reduction, and major reduction in the project cost also. So people postponed it, and because w hen you have that kind of reduction in the project cost, so overall, it is fantastic for the industry, because now solar projects can be done at a lower. Because you don't have a GST output in power selling. So for the developer, it is, it is great. So we don't see any issues on the offtake, and you know, overall, it is a big positive for the industry.
Okay, fair enough. So just last question from my end, like, there are a lot of players right now, like, you know, building up capacity, and I know, next year there is gonna be a lot of capacity coming online, like, even you are, you know, nearly doubling our capacity. So as an industry, like, I understand a lot of government initiatives are there, so to produce, you know, support the demand. But do we see a place where, you know, even if demand is there, will we have to resort to some kind of price cutting or something like that? Because there's a lot of capacities coming in, like, if we listen to every player in this industry, they want to increase capacity.
So just wanted to, you know, get your two thoughts on that, we'll be able to protect our realizations, because I think that's the basis on which we would have done our CapEx, right? So, just wanted to know, what do you feel about that, sir?
So, you know, when you have such a high demand and such a fast-growing industry, you will have naturally new players coming in. And there are many aspects which are, which are linked to this, this question. Because, on one side, you know, like if you see our history also, in our 10 years, first four years we have spent on, you know, our field tests, the customers. Because any large customer, these all projects are backed by financial institutions, and financial institutions require, a long-term reliability field test, how the module has performed over years. And, you know, to build that credibility takes years. Also, you have bankability requirement, you have Munich Re. So all that are third-party audits.
So it's not a product which you set up manufacturing as a new entrant and you start selling volume. So it takes 3-4 years to build that credibility in the market. So we are not kind of worried on new entrants coming in. One part. The other part is, s o they will also spend the same kind of time to build that credibility. They can ship small quantities to price-sensitive customers, but for large customers, for credible. And, you know, this industry has also evolved over years, so customers have also become more and more, you know, educated. The other thing is that there is a technology transition which is happening in the industry. So, you know, Mono PERC is becoming obsolete. Over, I think over 1 year it will become completely obsolete.
And then you have TOPCon. So there are significant Mono PERC capacities also, which are there in the ALMM, but they will not, you know, remain in ALMM for years. Because the customer automatically graduates towards the higher efficiency and, you know, best technology, new technology product. It's like iPhone. You have a new iPhone, and nobody wants an old iPhone. So it's like that. So that is also happening. The other thing is that the industry is moving towards an integrated model. Backward integration is becoming a key. So you will see that, you know, the capacity, your cell capacities are going to, in the future, determine your selling capabilities also. So you will see small players will also vanish over years, and backward integration will become more and more important. And so we are working on that aspect only.
So our focus is not to grow our module capacities beyond nine, 10 GW, because that is a respectable, where you can get economies of scale. And we will focus on building our backward integration towards cell, towards ingot wafer, and also bring in more products, you know, which are supportive to our solar module business in this industry. So that's how the industry is transitioning.
Oh, okay. That, that helps me a lot. So and just, like, last question from my end, sir. So once our cell, you know, comes online, maybe next year, majorly the revenue, I think, the margins will come in, in the H2 of, next year. So the differential like that we get, like the extra, we will not have a higher top line, but we think we'll get a better profit margin. So that would be how much? Like, because some players are saying that, you know, that could become as high as 25%. I think some are saying 20%. So what do we feel that what would it be like when we have cell and solar modules both together, what would be our, you know, EBITDA margin, roughly?
The domestic sales also command a higher price because the modules also sell at a higher price. So it will give additional delta in terms of revenue also. In terms of EBITDA, you know, we feel that it will give an upside of about additional sales. Whatever we produce will give an additional EBIT on that volume by 3%-4%. So we are not, t oday, it is high, it is definitely much higher. But, you know, we want to give a conservative outlook, because, you know, cell capacities are also building. So but, yeah, 3%-4% is definitely additional EBITDA for that kind of additional volume of cell which we are building.
So just to rephrase what Mr. Mathur has said, we expect additional EBITDA of 3%-4% on the volume sold through our, using our own self-produced. Otherwise it will be in the range bound.
Okay. Perfect, perfect. Thank you so much. Thank you. All the best, sir. Thank you.
Thank you.
Thank you. The next question comes from the line of Aniket Madhwani from StepTrade Capital. Please go ahead.
Hello,
Yeah.
Yes, good morning, sir. Good morning. So could you please clarify on the phase two of the selling testing? So when do you expect I mean, you mentioned 69, so 69 from H2 of FY 2027, am I right?
Sorry, your voice is not clear. Your voice is not quite clear. Can you- Yah, can you speak little further from the mic?
Hello.
Yeah, you are audible, but your voice is not quite clear.
Hello. Sir, am I clear now?
Yeah . I think it's better.
Yeah. So my question was, when you say pilot, on the phase two of cell manufacturing, you mentioned 6-9 months, it will take. So is it from H2 FY 2027, am I right?
6-9 months for?
6-9 months
months to get operational for phase two. Oh, okay. No, what I'm saying is, 6-9 months from the execution of the first phase. Okay. So what I'm trying to say is by. Yeah, what I'm trying to say is the 2.4 GW should start giving revenue from the Q3 of next financial year. And the phase two, which is another 2.4 GW, should start giving revenue from first or second quarter of FY 2028. Okay, 2028 Q3. Okay.
You mentioned the CapEx will be done of around 1,200, I mean, 1,300 crore for cell manufacturing, right? For 2.4 GW.
For 2.4 GW, INR 1,300 crore CapEx. INR 1,300 crore, yeah.
So the CapEx will be done through debt or internal growth?
So it will be the mix of both internal growth and the debt, which we have already secured from the institutional bank.
Okay. Could you share the proportion of debt and the participation of the CapEx?
Debt-equity ratio in a project is 70 to 30. So where 70 is the debt and 30 is the equity.
Okay, fine. Thank you.
Thank you. The next question comes from the line of Sani Bhatia from AM Investments. Please go ahead. Sani Bhatia, you can go ahead, go ahead with your question. Sani Bhatia, can you please unmute your line and go ahead? The line for Sani Bhatia is disconnected. We'll move ahead with the next question. The next question comes from the line of Charchit Maloo from Genuity Capital. Please go ahead.
Hello, am I audible, sir?
Yeah.
Thanks a lot for the opportunity. Like, my first is, can you just please explain the impact of GST rate cut on the future numbers?
Can you confirm the impact of GST? So the GST o n our numbers does not have any impact. It's only that our sales got deferred. So our sales got deferred from September quarter two to quarter three. So that is the only impact. But overall, GST impact is positive for the industry, because any project has module is considered 70, module and inverter is considered 70% of the project cost. So blended, any project has 30, used to have 13.8% GST blended for a project, which has now reduced to 8.9%. So the overall impact is about 5.5%. Overall impact in a project cost is about 4.9%, which is positive, positive. So which is, which overall is very positive for the industry, which will only, you know, give more boost for more installation. Because the system cost reduces, the energy cost reduces, and, you know, translates into higher volumes.
Got it. Sir, like, I'm new to the industry of cell. So, we are, I think there are two types of cells, the silicon, the expensive one, and the, the less expensive one. So, like, which kind of capacity are we holding for?
Sorry. Oh, no, these are not battery cells which we are talking about. We are talking about solar module, also has cells, solar cells. So solar cells- are mainly, the technology is two types. One is P-type, the other is N-type, and the industry has moved towards N-type. So N-type TOPCon technology is the technology which is more. So like modules which we are selling, out of 4.8 GW, 4.2 GW is TOPCon. So TOPCon is the latest technology, which has got, you know, the industry has moved in the last two years towards TOPCon, and our cell technology is also TOPCon cell only, and TOPCon cell, and type.
Got it.
Yeah.
Yeah. Thanks a lot, sir.
Thank you.
Thank you. The next question comes from the line of Riddhi Aggarwal from Individual Investor. Please go ahead.
Thank you for the opportunity, and, congratulations on good set of numbers. So my question is on the, BESS segment. Like, what are your plans for scaling this segment? And as we go through the RHP, we, You were awarded with 30 MW of projects. So any current status and execution timeline on this?
Okay. So, you know, the industry is also moving towards round-the-clock projects, which are also called RTC projects. And, solar with BESS is becoming more and more common. And, our focus is also on, you know, executing these projects. So, we have taken this, the project which you're talking of is the Bihar project, which is currently. You know, the land is being finalized and will be given by the BSPGCL. Once that is given, then we will start work on it, and, we should expect all this to happen in this financial year itself. Along that, we are also bidding for other projects as well, BESS projects.
So you will see more and more, you know, our EPC projects will all have a good share of solar with BESS, as well as standalone BESS projects. We are also looking to get into BESS storage, which is, you know, those 5 MW hour containerized battery solutions to begin with, and then we will slowly set up the assembly and the backward integration into it. The government policies are, and also the technology is still not fully sorted. That is why, you know, India has battery pack manufacturing, has containerized assembly happening, but the battery cells are still not getting manufactured in India. There are projects which are being talked, but it's still in the nascent stage.
So as the thing stabilizes both on the policy front as well as on the technology front, which we feel is very close on the horizon, we will be getting into that segment as well. But till then, we will be setting up projects with BESS and also containerized solutions, as well as backward integrating into assembly of battery cells in India.
Okay, fair enough. So my next question would be just an informal question. Like, there's a rumor in the solar market, like Jha is announcing or planning to announce the, i t to enter into the solar industry. So any viewpoint on it, and if it happens, so any negative impact on our company? Because we know the line strategy, so your view on this.
Ma'am, we cannot comment on any, c ompetitors competitor's strategy. It's an open market, free market, and everybody can enter this with their strategy. And we have large corporates currently also in this industry, and everybody is competing. The market is big enough for everyone to survive and play. As long as you know we kind of bring value to our investors and you know our management and stakeholders, we are. We are not you know worried about that competition.
No, that is fair on your part, being the promoter of the company. But we all know, and my question is your viewpoint on behalf of how it will impact the company, industry. Because we all know it's the long view or strategy. So definitely the market will be impacted. So right now you are competing with other competitors on the basis of, say, revenue or market capitalization. So if such things like it, they actually have a disastrous effect on the industry, so are we justified to say that we can compete with them on cost also? So because that is their major strategy. So are we well-equipped right now to take this shift in the market?
Yes, ma'am, we are well-equipped to handle any competition. What I can tell you is that, you know, India is at a cusp of a major energy revolution. Be it terms of our per capita energy consumption, be it the kind of growth which we are expecting in the energy demand once, you know, since we want to become a developed country by 2047, we have to grow at the rate of 8%-9%, so energy demand is going to grow. We have sunny days, which are over 300 days, so energy, whatever comes from renewable energy, major share will come from solar. If you see all these factors, also, green hydrogen is also going to play, which will also be a big boost to solar.
So you know, India has to lower its dependency and foreign, outflow, foreign exchange outflow on oil. So these are all factors which will be very highly boosting. Electric vehicles also are going to get powered by renewable energy and solar. So we are going to see a much bigger market, much higher demand than what we have expected, what we have seen over the years, and these are big positives for the industry. And we feel that there is enough space for players to continue to thrive and survive. And we are among those who have big plans and who have executed and demonstrated in the past as well. So we are very, very positive and very, very confident of a great future for our company as well as for the industry.
Okay. Thank you so much, and all the best.
Thank you, ma'am.
Thank you. We take that as the last question. I would now like to hand the conference over to Prashant Mathur from Saatvik Green Energy for closing comments. Thank you, and over to you, sir.
Thank you very much. Ladies and gentlemen, thank you for being such patient listeners and staying with us for almost an hour. We truly appreciate your time and interest in Saatvik. Quarter 2 and H1 FY 2026 has, have been strong, defining periods for us, reflecting solid financial performance, improved balance sheet strength, and the successful completion of our IPO. These results reinforce the resilience of our business and disciplined execution. I would like to thank all our employees, customers, partners, and stakeholders for their continued trust and support. We remain fully committed to creating long-term value and strengthening Saatvik's leadership in India's renewable energy landscape. Thank you. Thank you once again for joining us today. Thank you, all. Thank you.
Thank you. This brings the conference to an end. On behalf of Saatvik Green Energy, we would like to thank you for joining us, and you may now disconnect your lines. Thank you.