Ladies and gentlemen, good day, and welcome to the Suzlon Energy Limited Q3 FY 2026 Earnings Conference Call. During this call, the company management may make certain statements that reflect the outlook of the future, which could be construed as forward-looking statements. These statements are based on management's current expectations and are associated with uncertainties and risks, as detailed in the annual report. Actual results may differ, so these statements should be reviewed in conjunction with the risks the company faces. As a reminder, all participants' lines will be in listen-only mode, and if you need assistance during this conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. We will begin with the opening remarks, followed by a Q&A session.
To be fair to others, we kindly request each participant to ask no more than two or three questions. From the management, we have with us Mr. J.P. Chalasani, Group CEO, Mr. Rahul Jain, Group CFO, and senior members of our finance team. I now hand over the conference to Mr. J.P. Chalasani, sir. Thank you, and over to you, sir.
Thank you so much. Good afternoon, everyone, and thank you for joining us for Suzlon Q3 FY 2026 Earnings Conference Call. For the first time, I'm joined by Rahul Jain, our Group CFO. Of course, some of you have met, and more of you will be meeting him. Unfortunately, my throat is in pretty bad condition. I'm continuously coughing this morning. What I, I want to preserve my energy for Q&A, so I would ask, I would request Rahul to take you through our opening comments, but I'm here for subsequent Q&A. Sorry about that. Rahul?
Thank you, J.P. Chalasani, sir. Good afternoon, ladies and gentlemen. Many of you may know me from a previous, previous and earlier associations, but for the benefit of the larger group, please allow me to introduce myself. I am Rahul Jain, and I recently joined Suzlon Energy Limited as Group CFO. It is truly my privilege to be a part of this forum today. Prior to Suzlon, I've been associated with SRF Limited and Jubilant Organosys Limited. I'll now take you through talking about the industry, certain business highlights, and continue on the financial piece as well. We recently celebrated an important milestone, 30 years of Suzlon's journey and TRT's birthday on second February. It reinforces the vision, resilience, and forward-looking spirit that Tulsi Bhai instilled in Suzlon, values that continue to guide us and inspire us even today.
Talking about the industry, India's wind sector is witnessing its strongest growth phase. The year 2025 has been a landmark, with wind installations touching a record 6.4 GW, surpassing the previous peak and clearly reaffirming the vast demand potential of wind energy in the country. Industry is well positioned to move to higher installation year after year, with a clear trajectory to surpass 10 GW over the next two years. With 54 GW already installed and a strong pipeline with STU and PSU bids as well as C&I demand, India is set to achieve the near-term target of 100 GW by 2030. Repowering also started gaining traction, and there is rising customer interest, with the visibility of several opportunities ramping up in the next 1-2 years.
The market opportunity for Indian wind industry is even larger, as it is gearing up to become a global sourcing hub for wind turbines and components. With adequate and low-cost domestic manufacturing capacity, India is emerging as a credible supplier for nearly 10% of global wind demand. Suzlon is also focusing for strong export-driven volume growth, powered by competitive Make in India manufacturing base and our longstanding global operating experience. To accelerate this, we have strengthened our global leadership with the appointment of Paulo Soares as President, Europe, ensuring deeper engagement and faster market scaling across key geographies. With the EU trade agreement already in place and the U.S. trade deal getting finalized, Suzlon is well positioned to tap significant export opportunities, both for WTG components and for SE Forge castings.
Coming to business highlights, we are pleased to report yet another record-breaking quarter, as Suzlon has set a new benchmark in execution by delivering a record-breaking 617 MW in Q3 FY 2026, the highest ever quarterly deliveries in India since inception. Yet again, highest ever order book of 6.4 GW, reaffirming our market leadership, powered by over 3 GW new order wins in this financial year itself, resulting in book-to-bill ratio of 1.9x. The focus now is on expanding our EPC offerings, which has grown from 20% to 27% in Q3, which enhance competitive edge and further help to accelerate order book growth. The S144 order book has exceeded 5.4 GW, a strong endorsement of its advanced technology and customer trust.
On the manufacturing front, our 4.5 GW manufacturing capacity is fully operational and scaled to support the current order book. We are also establishing 3 new AI-enabled smart blade factories, further expanding our footprint... Suzlon commissioned 442 MW in 9, 9 months, and further to that, another 2,354 MW is in active execution in various stages. Further, we are also working to develop a strong development pipeline of 25+ GW. We have included these details as a part of our investor presentation. Kindly refer to slide 23. Our OMS business remains strong, with 15.5 GW+ under management in India, and machine availability consistently above 95%. Renom's AUM is consistently growing on the back of steady fleet additions and healthy pipeline.
Our forging and foundry business is unlocking its potential, delivering 33% Y-o-Y revenue growth in nine months to 400 MW, with EBITDA to INR 88 crore. We expect this growth momentum to continue with stronger domestic demand and export opportunities. Suzlon has been ranked among the top 10 most sustainable companies globally for 2026 by Global 100 Most Sustainable Corporation list by Corporate Knights. We are deeply honored by this recognition, especially as Suzlon, Suzlon is the only Indian company featured in the list. With strong performance in the first nine months, we are firmly on track to achieve our FY 2026 guidance of 60% Y-o-Y growth across key KPIs. I would be using slides 18-27 of our investor presentation, which has been uploaded on our website, as a reference point for my discussion during the presentation.
In Q3 FY 2026, Suzlon continues its exponential growth trajectory, delivering 670 MW, highest ever India deliveries for any quarter, with all financial parameters showing strong uptrend. Suzlon reported a revenue of INR 4,228 crore in Q3 FY 2026, with an EBITDA reaching INR 739 crore. A robust 48% year-on-year growth, with PBT of INR 567 crore and a PAT of INR 445 crore. In nine months, FY 2026, deliveries grew 66% to 1,625 MW, surpassing the full year FY 2025 level of 1,550 MW in FY 2025. Strong execution momentum drove revenues to INR 11,211 crore, up 58% year-on-year.
Consolidated EBITDA increased to INR 2,058 crore, reflecting a strong turnaround with 77% Y-o-Y growth. PBT rose 77% to INR 1,589 crore, with reported PAT improving to INR 2,049 crore. We are pleased to report that our balance sheet as of December 25, reflects a position of exceptional strength. Strong consolidated net worth of INR 8,332 crore. Our net cash position is at INR 1,556 crore, further enhancing our financial flexibility and resilience. Adequate working capital limits tied up for execution of the current order book. Our end-to-end wind energy model, supported by an integrated supply chain, strong execution, and industry-leading service, provides a competitive edge that is unique and difficult for others to match. Thank you, and I now request the operator to open the line for Q&A.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the 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 is from the line of Sumit Kishore from Axis Capital. Please go ahead, sir.
Good evening, J.P., sir, and welcome, Mr. Rahul Jain. My first question is, out of the 2,354 MW execution pipeline, how many MW aging-wise are pre FY 2025? Similarly, in your trade receivables of INR 5,745 crores, how much receivable is due beyond one year? So on both counts, can you cover the risk of further delays for both your customer and for Suzlon? That's my first question.
Yeah. See, effectively, if you take out the quarter three supplies, you can... I hope I'm audible. So if you take out quarter three supplies, which is 617 MW, the balance is what we're talking about, 2,354, which is what is under execution. The current supplies, what happened in Q3, are the ones which are not in the different states of execution, predominantly. So there could be 50 MW from this system, 50 MW of, let's say, Q2 stuff, but the other way, the directionally, that is what is you, you can take it as okay. Out of 3,000 MW, what is the supplied and commissioned, 2,990, whatever it is. So if you take out Q3, that's the balance. The second one is on receivables?
Yeah, so the first question was, also that how much of this 2,354 has been sitting under execution? You know, even pre-FY 2025, how much is sitting in 2,354, which has been under execution for the last 7+ quarters.
Yeah, there would be, let me follow that number. I don't have it right away.
Sure.
P 25, I think, would be somewhere around, you know, INR 50 million-INR 60 million. We're talking about PFI 25.
Yeah. Yeah.
That is what it is. That's the predominantly one project in Karnataka, which is stuck because of the land and other things. Otherwise, there's nothing beyond that.
On receivables?
Okay. So, to answer on the receivables side, our total receivables are roughly about INR 5,700 crore. Those that are not due, in terms of saying that certain milestones are still to be completed, are roughly about INR 2,100 crore. So therefore, the balance number is INR 2,600 crore. INR 3,600 crore.
Which is-
Yeah, so that's the number.
INR 2,600 crore, less than one year?
Yeah, largely, I would say. There are no big overdue receivables, I would say. Some obviously are there, but not big ones.
Got it. The second question is on WTG, EBITDA margin in Q3, which is 13.7% versus 15.6% in H1, and 16% in Q2. So why is the dip in Q3 happening? Is it going to higher EPC in the mix, or are there other reasons as well?
Can you come again, Sumit? Sorry.
Sir, the WTG EBITDA margin in Q3 is 13.7%, versus 15.6% in the first half of the fiscal. Why is the dip in Q3? Is it to higher EPC in the mix of the-
What happens is that it depends upon a couple of things. One is the average sales price during the quarter, depending upon who the customer is supplying. So the impact of one large customer not being there this quarter, impact is almost about 1.9%. And then, the other is roughly because the project revenues have gone up, project margin is being lower than the supply margin.
Okay.
Therefore, you see these two are basically causing 30 basis points.
Basically, EPC share is higher rather than product delivery, when you say project margin?
No, no, not EPC share. I'm saying average sales price of turbine has come down in this quarter, because it depends on whom are we supplying, because contract to contract realization changes. Okay?
Okay.
The previous two quarters, we had a customer where the realization was very high. The impact of change in the mix of customers, because it will keep changing quarter- to- quarter, change in the mix of customers to whom we supplied, and the average sales price coming down, impact of that is almost close to 200 basis points, 180 basis points.
Got it.
Not EPC, I'm talking about, okay?
Got it.
Second is the projects revenue, as that is where you can say EPC or, S&I. Not, not only EPC, S&I. Projects revenue has gone up this quarter, so projects revenue margin being very low compared to supply margins. So proportion of project revenue keeps increasing, your margins fall. Like, for example, we always keep saying the overall group level and WTZ revenues goes up and, you know, OMS being the higher margin, but that proportion comes down, our overall margins also come down. Similar way, here, average sales price and the project mar-- project revenue is what will decide quarter- to- quarter for the margin. But if you say-
Right.
At nine months level, we are still healthy.
Got it. My last question, sir, on the key, you know, the question is, for Suzlon 2.0, it is mentioned that your plan includes launching DevCo as a standalone FDRE project development vertical. What is the implication on balance sheet commitment for Suzlon? And what does it mean for ROCE and leverage levels for Suzlon targeted going forward?
No, this is nothing but what we have been talking from, I think last few quarters of, our taking the development route to increase our EPC share.
Okay. It does not mean committing balance sheet. Okay.
We said that we need some seed capital and start doing it. What this development company, because we wanted a more focused approach, not getting concerned with the day-to-day project execution and the land concerns in the projects. This business, whether you call it a separate company, subsidiary, but this business unit would concentrate on 2 things. Because it first thing is identifies which are the potential sites over the next 5 years, based on the wind data, what we have. Okay? Then therefore, it identifies what are the sites for year 3, 4, and 5 from now. And we start acting on that, and that is where we will have a more strategic sales with the large customers for work in the renewable energy business to on a long-term basis.
Most, if you want to do year 3, 4, and 5, so let's now tie up for 3, 4, 5 for the purpose of land and everything. By the time we start in year 3, the most of the land is acquired, your connectivity is there, everything is there. So when you start your work, your IDC will be the shortest. Plus, you have a clear visibility of your 3, 4, 5 targets.... Okay? That's one segment what development company does it. So we will start having that strategic sales for year 3, 4, 5. Second one, what it does is, what I explained earlier, that we start acquiring the land, and before we reach 25%, we get a client, and they take over the 25% and start paying us for the land thereafter. But EPC and TP will come little later.
Let's say 50%, 60%, 70%, both, what is the comfort for both levels, both of us to do, so that their IDC would come down substantially and the project gets executed much faster. And once it enters into a project phase, let's say there is 25, 30% of the land still to be acquired, that's the only portion the projects division will take over, because project activities have already started, EPC activities started. And the team which is working on the land from the development, on the ground team, will get subsumed into that projects division.
Basically, this is an advance action, and what it does is after identifying sites, we need to get local authorities approvals, whether it is MEDA, or it is KREDL, or it is NEDCAP in AP, or wherever it is, you get those approvals, requiring if it's an STU, we will also start getting connectivity. We will also plan in future what is to be done on the CTU, depending upon how the business unfolds the CTU. So keep everything ready so that the execution is faster, and we will get more and more EPC contracts. It's good for us and good for the clients. It does business in a very, very focused way. There is no significant change in the business model, but we are creating a business unit which is more focused only in that, and here it is not to do with any balance sheet putting.
We just put the seed capital. Am I clear to you?
Thanks. Yes, yes. Thanks for the detailed reply, sir, and wish you all the best.
Yeah, thank you.
Thank you. The next question is from the line of Dipesh Aggarwal from UTI AMC. Please go ahead.
Yeah, good evening to you. Sir, my first question is, over the past one years, renewable tenders have been quite weak in the country. How confident are you of growing your order book, especially when the execution phase goes up from here?
See, let me start with our order book mix. Dipesh, first one is that the current order book in which, Dipesh, 51% is from C&I and captive segment. Okay? No involvement in the bidding, and 36% is from bidding.
Dipesh, if you could put yourself on mute, I think there is background noise, so we could control that.
About 13% is from PSO segment. Our involvement in the bidding is to the extent of 36%. That also has gone up, I explained, in the last quarter, because we had a huge order from Tata Power. While what you say in terms of a bidding activity at the central level has taken a pause, I don't say stopped, taken a pause because we want to resolve the issues of outstanding PPAs and various things. State-level bidding is now picking up, okay? We are seeing in GU, when the bidders come in, MP come in, now other states are talking about it. That will keep going up. Even in the central level, if you see that the... I'm sure that all of you have followed. Yesterday was the SECI or something, the reverse auction happened.
To date, most of the bids for SECI were undersubscribed. This is a pure wind bid for 1,000 MW. It was oversubscribed by 3 times. Okay? So there were offers for 3,000 MW, and the tariff is INR 2.67-INR 2.69, depending upon who. These people are the people who won, okay? Up to that. So therefore, for the wind, wherever there is a standalone wind bid, there is still, there is a significant amount of demand happening. While I, while I see that there is a pause, but I think the, with, with what was going to happen in terms of state bidding, and more importantly, with the significant amount of data centers now planned to be commissioned by 2030, all these data centers are supposed to be the green data centers.
That's going to push significant growth in the renewable energy, and our strength is in that area, which comes under C&I. So while I will accept your point, but I don't see that it's going to have a significant impact for our business.
Sure. Can you also add some color on exports now, given, UFC has been signed, U.S. trade deal has happened. I think you have also appointed, someone as head of your European business. So some more color on how is our export, pipeline shaping up?
On the U.S., Dipesh-
Mm.
I actually, every day, morning, I check whether we have a potential or not. So it depends upon what comes on the Truth Social. The wind will happen or wind will not happen. You know, and I know. So it is nothing to do with the trade deal, because right now, from the current government point of view, wind is not favored, and they don't want to do wind. Well, that is a significant potential for us because that was our largest market in the previous time, but we will continue to wait and watch when that market opens up. That's why we moved our focus to Europe. That's where you have seen Paolo's announcement. In fact, he was with us earlier. When we stopped international business, he went out, but came back to us.
We are exploring Europe, we are exploring Australia, South Africa, Middle East, and Portugal, few other countries. As I said earlier, you will see some traction, some types of orders getting announced in the next financial year, but the supply starting and the revenue flowing in will be in FY 2028. US, we need to wait and watch when that gets opened up.
Sure. And, and lastly, sir, I think some of our Chinese peers have introduced 5 MW platform, and we see that selling features, basically, it is 8%-10% cheaper in LCOE over 3 MW platform. Want to understand how far is Suzlon from launching that 5 MW platform?
Let me define how far is actually a very subjective question, Deepesh. If you ask me, we are very near. Okay? But that very near could be little far for you. But anyway, what I want to assure you is that our 5 MW turbine is now getting into the proto stage, and then that will come at time. But the thing let me tell you is that in spite of the fact that the 5 MW turbine is launched, our 3.15 MW is going significantly. And now we also started selling 3.3 MW, okay, with the revised power curve, which has a lower cost per kilowatt hour compared to 3.15.
And my feedback, I'm sure that some of you would have the feedback, a 5-MW when they started actually implementing, because original feeling was that you need less number of footprints, is actually land acquisition is becoming a big headache because a 5-MW footprint actually needs multiple farmers to sign, because you need a larger land area compared to a 3-MW. So, you know, making each farmer to agree for one footprint because you have a multiple farmers, is creating an issue. In fact, my, my... I was talking to a few of the developers, I think they're actually saying that it is the right strategy for us to go, because we fell into it because you need less number of footprints. Less number of footprints doesn't mean that it's a faster execution, and that is happening.
But still, we are coming with 5 MW, so therefore I'm not against 5 MW. Okay? So our 5 MW will come at the appropriate time. And we will ensure that the, that turbine delay will not impact our intake of orders.
Sure. Thank you. Sir, please take care of your health.
Thanks, Deepesh.
Thank you. The next question is from the line of Shiva from Purnartha Investment Advisers . Please go ahead.
Hello, am I audible?
Yeah, yeah, you are.
Yes, you are audible.
Yeah. Good evening, team. So my first question is with respect to forging. Obviously, the last time when you said we are planning to increase the revenue. But the nine months others, that is the revenue that we get from the other, the not Suzlon, that hasn't improved much. It's more or less flat. So could you just tell what was the issue over there? And going ahead, how do you look at it?
Yeah. The S144, as we said in our opening comments, is the one which is now unfolding its potential. As I said, that the overall between 2014 and 2020, the capacity utilization is one of from 21%-31%. 31% is small, but fine, but relatively we improved by 10 percentage points in the last one quarter. And the profitability has improved. You know, EBITDA has doubled from INR 40 crore, and our margins have gone up from 12%-20%. And your specific question of non-wind and other things, work has started in terms of non-wind, like your injection mold machines and these other things. But what happens in case of castings, is it takes before others start getting implemented, the process of preparing a casting prototype and getting it approved, it's a long-term process.
They're going through that process. You will clearly see in FY 2027, the revenues coming from non-wind substantially going up compared to what it is now. So that, that's clearly we're on the path of for the increasing non-wind. And the second is that, because of the U.S. trade deal, you know, whatever the tariff was there, so we had an impact on, U.S. exports. We export big way to U.S., especially GE. But now with, the, what are the trade deal announced, and that will again come back. The GE is again, will be back in that. So both ways, and the wind also will increase, and the non-wind also will increase. And we are, I'm especially personally quite excited on SE4 as, as we move forward. Number of things we are doing there, SE4, especially in the forging, forging.
Understood. Thank you. The second is with respect to installations. Just slightly slow, but if you take a seven-quarter data also, and ratio of deliveries to installations, we're at 36% odd. So, whatever we've delivered, roughly 2 gigawatts more has to be installed. So, just wanted to understand what are the main pain points or where which are the regions where we're struggling or in this specific 3 or 3 gigawatts that have already been installed or delivered? And compared to other players, how are we placed in those regions?
Definitely, Shiva, I'm not going to say that we are great at doing an execution, execution obviously remains a challenge for us as well as sector. In fact, maybe for us more because of the numbers, because others numbers we don't know fully. We only know the total numbers. Okay? But the segment-wise, we don't know, and how old it is also, we don't know. So therefore, I'm not really concerned about what others are doing and why we can't do it. I know that we are only at 10% market share as of today. We gave a guidance, we'll reach to 25% by end of this year, taking 6 gigawatts at the top, and we are still working towards that. The reason why the execution is getting delayed is the...
First of all, this is till now, it is 80-20. 20 is EPC, and 80 is non-EPC. So we have a limited control on land and BOP in those projects. So that's one reason. Even it doesn't mean that we are doing EPC, everything is okay, because I don't want to claim that. Even we are having issues with respect to execution, but slightly better compared to them. The challenges are the same, your ROW. And first of all, land coming in time, because the acquiring each land negotiating almost becoming a major issue. And then thereafter, ROW issues keep cropping up every single day. And the ROW, not just for the turbine, including for your system, and then your the main evacuation system to be done.
For example, this quarter, we have 253 MW of turbines commissioned, which they can generate today, provided they get connected to the grid. Okay? So some places, grid is not there, which the client is supposed to provide. Some places, the system of the client is not there. So therefore, these are the delays. In fact, there is 80 MW sitting out there, could have been easily commissioned, but for the issue of temperature. Okay? Which confusion between MNRE and MOP, which they're trying to resolve. So while there are, there is definitely a need and scope for us to improve on execution, there's no second doubt about it. But there are these issues which we know what are the issues. That's the reason we gave that breakup of how much is under implementation.
We are reasonably confident that by end of this year, especially in the quarter four, you will see a significant jump in terms of our execution, and it will pick up, and once we start getting into more and more EPC for development, this will change. Question is whether somebody else is able to do better than us? I'm not too sure. I will not be able to comment, but one can obviously ask that you're only 10%, if somebody else has done 90%. That's a legitimate question to say, that, you know, there are people who have done 90%, but that aging and those things I really don't know. I'm only looking at myself, not looking at the market. There is a significant scope for us to improve this, and we are working at it, and we will improve it.
There's no second opinion about it. We got to do it, and we will do it.
Okay. Thank you, sir. Helpful. And the last one is, with respect to battery storage, obviously it is not a source of generation, but if the battery costs go down and the quantity of batteries goes up, the plant load factor of solar and wind will go up indirectly, right? So the amount of gigawatts that in the long term, just trying to understand, in the very long term, might not be that much, but it invariably decreases the amount of gigawatts that need to be set up, right? So it, is it not highly dependent on the cost of batteries?
No. Battery doesn't add any generation. Battery only-
I'm saying the plant load factors will increase, right? Because it will store energy, so the 1 GW which has 20-
Yeah, but if you ask to store energy, it has to be produced. So whatever is the solar or wind connected to the battery, that will still generate. So if you need, let's say, a billion units, you still need billion units to be generated. What battery does is actually tries to match your load curve and the generation curve. That's all it does, okay? It has no impact on your PLF.
No, I'm saying, if earlier 1 gigawatt of wind used to produce like X amount, now because of the battery, 1 gigawatt of wind and 1 gigawatt of solar used to give X amount. Now, when we put in battery, because the unused hours, you can store that, and you can indirectly increase the energy, the electricity consumed at the night, so you don't need that much amount of gigawatts to set up, right? If the battery becomes efficient.
No.
T hank you.
Little more, complex. Your point is, the answer is yes and no. If you are—if you, you have a generation curve, let's say, I mean, the load demand curve, you have a peak demand, right? So you are creating your generating capacity to meet peak demand, and which remains not utilized during the off-peak period, rest of the period, PLF will be low, definitely low, okay? Because you're not utilizing it. So therefore, the moment you put the battery, the amount of generating capacity, what is to be put to meet the same load curve, will come down. You're fine from that point of view, okay? So will come down. So therefore, that's the reason I said that this only matches between the demand curve and the load curve. But today, people, that is not what people are doing it. People are...
That is how we went ahead in solar. So what's happening now is solar getting, you know, the backing down is happening in solar. So directionally, your point is valid. Means like, theoretically, yes, you're right. So if you're setting up a capacity to meet peak demand, now, if you put the battery, the capacity, what is to be created, the solar or wind, would come down because you are trying to flatten the generation curve to match the load curve. That I agree with you. And what it does is, the cost per kilowatt-hour would come down.
So, if the batteries become very cheap in, like, 10 years or so, then these projections might get a hit, right? I mean, we don't know what happens, but it's highly dependent on how efficient the batteries are and what is the manufacturing cost of the battery.
The battery, we really don't know anything sure today.
Yeah. As of now. Yeah.
Then single source. Okay? Single source for today. And one single source can actually, you know, turn the key and then actually screws up. So therefore, what happens to the battery? What is going to happen? You're seeing what is happening in the modules. Suddenly you see the prices going up, prices coming down. So I think what is important for the country as a whole, storage is mandatory. There is no second opinion about it. If you want to increase renewable energy consumption, storage is mandatory, otherwise, only alternative is more and more fossil fuel. Whether it is battery or the PSP and how it happens is what we need to wait and see, but storage is mandatory. Without storage, renewable energy will not grow.... Earlier also we said clearly the standalone solar will not grow unless solar and wind is there.
This is our stated stance for the five years when people ridiculed us. But today I'm again saying that without storage, renewable energy will not grow. And at the same time, your answer to your question is that for a given demand, the capacity required for wind and solar will come down, but the moment you put storage, you're flattening the generation curve or matching generation with demand curve. Overall demand for renewable energy will go up. You get my point?
Yeah. Thank you for your time, and hope you get well soon. Thank you.
Thank you. The next question is from the line of Mahesh Patil from ICICI Securities . Please go ahead.
Yeah. Hi, sir. First of all, congrats on a good set of results. So my question is, since we have, you know, completed nine months and, regarding our guidance, right, 60% growth across all parameters and around 2.5 gigawatt of deliveries. So 1.6 gigawatt we have already done. I'm not expecting any numbers, but directionally, how do you see, is there any change in guidance or how do you see Q4 panning out?
100% guidance. 100%. If there's any change, we would have come forward ourselves and said that. Pretty confident to meet what we said on annual basis, the 60%.
Sorry, sir, your voice is not clear.
I said, 100% we are committed to 60%. We will achieve that. If there was any downward revision, we would have come forward on our own to say that.
Okay.
There is no downward revision. Pretty confident to get to that 60% growth. There is absolutely no doubt about it.
Okay. Thanks. Thank you.
You might back calculate. You might say this is, you know, till now you've not done it. Maybe, you know, a year back, if I told you that we will dispatch 600 MW in one year, you would have believed it.
One quarter.
Mm-hmm, one quarter. So, okay, so therefore, I can only say at this point of time, not commenting on individual units. I can reassure everyone that 60% guidance, what we gave, is completely online, and we will achieve that.
Okay, sir. Thank you so much.
Thank you. The next question is from the line of Sudhanshu from JM Financial . Please go ahead.
Yeah. Sir, thanks for taking up my question. So I have two queries. One is, can you please share the order pipeline, if possible? And second, why our working capital requirement is increasing? Thank you.
Yeah. Hi, Sudhanshu, I always treat you as a professor. I look forward to your statements every weekend. Because Sunday, come Sunday evening, I look at various Sudhanshu's mail. So you are asking me a question. I treat you as a professor. Anyway, let me answer your question. The order pipeline is strong. As we speak today, we are now clearly talking about 3-4 gigawatts non-bidding route of discussions are happening. So, and C&I, we don't know how it keeps opening up. I still maintain, while people might say that, you know, your order intake is only 800 MW, last meeting to this meeting and things like that, I still maintain the statement, which I've been making, Sudhanshu, every single quarter. Order is not an issue for us. The issue is execution.
If we improve the execution as a sector, we can supply more. We did 617 last quarter. It pains me to stop at 617. We could have easily done 750 MW, easily, without any problem. But then, you know, your projects have got to ready to offtake. That's the issue. Issue is not that how much can we supply in a quarter. We can actually supply 1,100 MW in a quarter if there is a consistent offtake from the projects. Problem is execution is killing us, ours as well as others, because you know that, you know, only 30%, 80% is controlled by someone else. And, and you know it better than anyone else in the sector, okay? That's the problem. On the working capital, you're spot on. So obviously, that the, the...
I explained earlier that one of the contract, which we built in the provincial large contract, because of the delayed payments and everything, we've taken separately enough credit for that particular contract, but still the payments there, the processes are taking much longer time than what it is. And that's what made us to get stuck. And working capital requirements today, Sudhanshu, as long as we keep doing this public sector projects, projects would continue to be at reasonable levels. It may not significantly increase, but will remain at this levels. Okay? Unless, you know, we start seeing the results of our development company, which is what I said, that will start maybe giving us results from the, let's say, end of next year, second half of next year to FY 2028.
For example, like, we're taking the latest contract of ArcelorMittal . That's typical of what we have been talking. So there we have the land contract much in advance. By the time we sign this contract, we already have 50% of the land, but still we are not taking EP-- NTP for EPC. So we said that let's acquire more land, you know, get all the pathways, everything. Then we will take an NTP, and we can do a quick execution. Good for them, good for us. You know, their, their IDC comes down, our working capital comes down. I think we got to move to that phase. We are, we are moving it consciously in that direction, but it will take some more time. We need, we need some patience to move there. Am I fine, Sudhanshu?
Okay. Thank you so much, sir, and best wishes.
Satisfying a professor is not easy, that's why I'm asking.
... Thank you. The next question is from the line of Harish Singh from Shubhlab Research Private Limited. Please go ahead.
Hello. I hope I'm audible.
Yes, sir, you're audible.
Hi. Hi, Mr. Chalasani. Greetings. Mr. Chalasani, I just wanted some granular details on this slow offtake, which you have been mentioning in this call so far. Because, you know, for the past four, five quarters, probably, this issue has come for the first time in our conference call. You know, so far, the deliveries were good and we were executing well, but probably this quarter, the deliveries has gone down and this slow offtake issue has come up. So if you can, you know, help us understand a bit more about what-
It is not the first time. Each of those quarters, compared to what we supplied, we could have supplied at least 15%-20% more.
Mm.
Each of the quarters, whether it's quarter one, quarter two, or quarter three. Okay? And it is not our supplies have come down. Maybe it has come down with respect to the expectations, what people had building up to 2.5 GW. But otherwise, this is, as we said in our opening comments, this is the highest delivery we ever did in a single quarter. But the expectation was different, okay? Because everybody is doing automatic calculation and saying that, you know, 60% bola toh 2.5 karna hai, toh, theek hai, kam se kam 700 MW karenge is quarter mein. So when it is 6.7, you know, some people felt that, you know, we're not met the expectations. That's the issue, not that when you're dealing with respect to 60% in C, obviously, the growth is big. Okay?
Mm.
So I don't think that's an issue. The issue of offtake, which we have been saying, is there every single quarter. Even last year, we had 3 GW of manufacturing capacity, we supplied 1,550. Now we have 4.5 GW capacity, and we're talking about 2.5 GW of supply. But why? So therefore, offtake, not just for us, every single OEM has offtake issue in India, every single OEM. Okay? So as all the OEMs put together, supply can be much more than what today the absorption is happening on the project sites. So it is nothing new. Because this quarter it is less than what you've been expecting, while we are saying that we have done the highest, but still the highest is not meeting your expectation, you're saying this is coming the first time.
It's not. We didn't speak because this time there is... I sense a bit of a disappointment or a bit of a different things, because we expected a lot also carrying with it now yet, so therefore, I'm answering this question. So earlier, nobody asked. Although earlier also, my answer would have been same. We could have actually done 10%-15% more than what we supplied.
Understood, Mr. Chalasani. Just a follow-up on this, Mr. Chalasani. So, how are you seeing the ground situation now? Because, we have been reading about probably 30-35 GW of solar capacities lying unutilized. So is it the same with wind capacities as well? The PPA, the absence of PPA et cetera, is hurting your end customers also?
Let me tell you two things. One is-
Yes.
We don't have any contract which is awarded to us, where the PPA is not signed. That 36% bid route, what we have, or out of 36% is bid route. So there is nothing where the PPA is not signed. That's number one. So therefore, orders intake, whatever you've already taken, there is no risk of not signing the PPA. Second-
Mm.
that 43-45 GW, whatever we're talking about, to my knowledge, the standalone wind doesn't exist in that.
Okay.
There is some wind capacity, which is part of hybrid. Because the states are now started saying that, you know, you increase your wind capacity in that compared to the solar, we want more wind, which obviously you can't do after the bid is done, because tariff is locked. That capacity, if you take it, I was told that about out of this 43 or 44, 11 GW is wind, which is part of hybrid capacity, where the PPAs are held up, not the-
Okay.
standalone wind. So... And in fact, some of the, I was also telling earlier, that if you look at yesterday's response to the reverse auction,
Mm.
If there is any problem of standalone wind getting PPAs, you wouldn't see 3x response to a 1,000 MW bid.
Right. Right.
Oversubscribed.
Right.
I don't think there's any problem with respect to PPA for standalone, so wind.
Understood, Mr. Chalasani. Understood. So another question, Mr. Chalasani, related to this only. Probably you mentioned about, you know, this ROW and, you know, little bit of PPA is also getting resolved, probably because of coordination between MNRE and MOP. If you can throw some more light on that, Mr. Chalasani, I probably missed that point.
Yeah. See, finally, with our efforts, the 2-3 weeks back, we formally announced a task force-
Mm.
-by MNRE, giving a thumbs up reference, which includes MNRE, includes MOP, and includes every state nodal agency and other people. Basically, to resolve issues with respect to land and ROW and the connectivity.
Mm.
Okay? So-
Mm.
So therefore, it is now picking up the importance of it. But will this get resolved overnight? I don't think so. Because locally, people are becoming more and more active in terms of creating trouble for, you know, projects, because it's now, it has become a political issue that makes it more easy because project is underway, halfway through, they will be under pressure, you know, if you create some trouble. Those things are happening, but the government is trying its best. So therefore, that reason we expect some things. But that way, best way is that, you know, you get your land and pathways, including Forestry, Private , the RoW clearly signed up beforehand before you start the project. Because what we are seeing is a response of people there when they see a turbine.
Hmm.
After that, you talk about land acquisition versus when there is no turbine, no construction happening when you look at the land, because we do both. In development, there is nothing, no project activity happening. And we do land in where the projects already started. So completely different response. Where there are no project activities, much more smoother.
But-
Once you see the turbines and clouds, the problem RoWs increase multifold.
Got it. Got it. Just one follow-up, then I'll move back into the queue. This task force formation was done, like, very recently, and in your opinion-
Yeah.
How much time might be required, you know, to at least roll the ball in the direction of resolution?
See, you know the government better than me. You have contracted with government officials much more than me. This is the step one, and the decision to create a task force was taken six months back.
Six months back?
Yeah.
Okay.
At the PM order. Now a task force is formed. So...
Got it.
I only look at it as a positive. It's moving in the positive direction. May not be on the timeline, right?
Right.
But in a positive.
Right. Very helpful, Mr. Chalasani . Thanks a lot. Please take care. And Rahul, welcome to Suzlon. Thank you.
Thank you. Thank you, Harish.
Thank you. The next question is from the line of Nikhil from Kizuna Wealth. Please go ahead.
Yes, sir. Thank you for giving me the opportunity and congratulations on good set numbers. So, sir, my first question is, like you said, that we have a pipeline of 3-4 gigawatts. So how much of the wind rate are we expecting on these orders? And so with the headwinds, so many headwinds in the order flow, but we are saying that we are, we will be able to win the orders. So can we assume that you are going to surpass or even meet FY 2025's order inflow or even higher than that?
See, I've given a guidance earlier, and which I will maintain, as that. Each quarter, my closing or our closing order book will be larger than the opening order book. Each quarter, our supplies are increasing. In spite of that, our closing order book will be more, which you can see for the last 6-7 quarters, and this will continue. I would like to maintain that guidance, because at every point of time, 6.2, 6.4, 6.6, it's happening. After supplying, then that means there is a steady inflow of orders. Plus, between the last meeting of board and this meeting of the board, we added 803 MW. So therefore, the...
Again, I just want to reassure you that, because that's what I believe in, not trying to, you know, sidetrack the issue. I firmly believe in, the first Suzlon, order intake is not the issue at all.
Book-to-bill is 1.99.
Yeah. So our book-to-bill ratio is 1.9x. But I can tell you that earlier also I said I keep repeating that it is not out of any arrogance. I'm saying that order intake is not an issue. And especially with this development activity, what we started now, it's all the more important. You have seen our EPC share has gone from 20%-27% in one quarter. Two largest orders what we announced in the last one month are off EPC, both BrightNight and Astral Meter. That's not an issue for us. And especially that our more of a concentration on the C&I segment , which is our 51% of the share. So I don't see this is going to be an issue.
Thank you, sir.
I know people can get 6.4 GW, you know, maybe they just have up to FY 2028. So what is going to happen to Suzlon if they get a single order in the next 24 months? You know? Every quarter we'll keep getting orders more than-
Yes.
We'll constantly have a good or healthy order book at the end of the quarter.
Yes, sir, that's quite reassuring, sir. So Rahul, sir, I have a question on our tax rate. Like, we have created a DTA, and I do understand that we will not be having any kind of cash outflow, and we do have INR 14,000 crores of carryforward losses. I would like to understand, like, what would be on the face of the PNL, like, how much effective tax rate would be shown in the PNL? I would like to understand that, sir.
The way to look at it also, Nikhil, is that once all of these deferred tax assets that we have are fully recognized, your, your effective tax rate, cash or non-cash, should come to 25%, because that's the regime that you're in.
Yes, sir, I do understand that, but-
It's a simple answer in that sense.
Yes, but sir, currently, because we have the accumulated losses, we're going to utilize that in the coming years, too, and current year, too.
Okay, so the way it works is that the accountants will actually do an assessment, sometimes on an annual basis and sometimes on a semi-annual basis, where, based on your future projections to be looked at, it will consider whether there is DTA losses that were earlier not, let's say, allowed to be set off, will now be set off. And based on that, an assessment is done annually. So again, I would say that there are certain other which are not on the books as of now. An assessment will happen at the March end also.
Yeah.
There would be something that comes through again.
Nikhil, non-complicated, non-finance person, what I understand is simple. Even as on today, we still have INR 1,100 crore more deferred tax asset sitting in our bank. Okay? Even if you don't recognize anything further, up to INR 4,400 crore of cumulative profit from now on, what we get, we will pay single rupee of tax. We will not pay single rupee of tax, okay? That's one part of it. Even after whatever happened in quarter three, we still have that much sitting in our bank. I can keep drawing that, okay? That's what I only ask my CEO, "Sir, main kitna draw kar sakta hu?" I only understand what I can draw, okay? Now, but kitna kama sakta hu is my second question. Even after this, we still have about INR 6,500 crore of carry forward losses.
At different points of time, the auditors will look at it. They look at three years ahead, and they'll keep adding to my bank account. Okay? So therefore, this, what I have, INR 700, I'm assuming that will keep increasing, and they did last quarter, and my expectation is that they will do again in the coming quarter, towards the March ending quarter. So I'm assuming that, this INR 1,100 kitty, what I have in my bank, in my simple language, will further go up. My bank balance will increase. That's my understanding of, all these complicated DTA rules anyway, okay?
Yes, sir.
This is what matters to me as a CEO.
Yes, sir. So thank you, sir. That's it from my side, and all the very best, sir.
Thank you.
Thank you. Ladies and gentlemen, we will only take last two questions for today. The next question is from the line of Akash Mehta from Canara HSBC Life.
Hi, sir. Thanks for the opportunity. Just one question, in terms of, I think, in the call here I had mentioned, some AI, I mean, enabling, in wind turbines, going ahead. So can you just, help us understand what you all are kind of trying to do and what are the developments in that space that you all, you all are looking at? Yeah.
Yeah. This is again, you know, layman explanation. Previously was finance, this is technology. So my only understanding of AI, what we're going to use, is that my entire OMS system is going to get digitized, okay? So therefore, our predictive maintenance, preventive maintenance, and everything can be tracked, and which turbine, when, and how long it's there, done popping up. So therefore, it actually improves our uptime because of this, the data, because constantly we keep getting data, analyzing it, and it's throwing up this. It improves our, it reduces our cost because it is throwing up telling me the predictive maintenance much before actually the system fails, so therefore, we can act in that. So I think significantly, that is what we're looking at it.
If today we are at 96.1% availability, how do we go towards 97, 97.5, 98 is one. Second thing is, today I'm at 40% EBITDA margin, plus, how do I not just sustain, can I increase this margin? This is what AI would help me. You know, otherwise, so my CFO, my CEO will say, "Sir, ye karenge, woh karenge," end result is this.
I think, and that, that's very helpful. Yeah. Thanks a lot, and all the best.
Thank you very much. Ladies and gentlemen, that was the last question for today. I now hand over the conference to management for closing comments. Over to you, sir.
I think, having coughed all along anyway, let me say that thank you very much for bearing with my cough, and, you know, not able to give that opening comments. I'm sorry, but I didn't want to miss this call. It's extremely important for me. I'll just go back home the moment this call is done. I feel, not as a CEO, I personally feel that it was a great set of quarter for us, given the constraints what we know, as I said, that uptake of turbines and various things. Standing here pretty confident, I reiterate that the guidance what we gave stands. Absolutely no change.
In fact, last quarter, some of you asked me that, "Are we going to revise upwards?" I said, "No." Some of you are asking now, "Would you revise it downwards?" I'm again saying, "No." We will maintain the 60% guidance completely. The third take is that the orders is not an issue. This issue of DTA and people not understanding, share price impacting up and down, will still continue to be there. Next quarter, we will have a huge amount of DTA asset coming in, our net profit suddenly jump and people will say 30% profit improved. Okay? So I think, and these things would keep happening, but you people understand that what is the meaning of all this. So but, having said that, we are open.
At any point of time, my colleagues or me, or to discuss on any industry level issue or as well as anything specific involving Suzlon. Thank you very much.
Thank you, everyone.
Thank you. On behalf of Suzlon Energy Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.