Ladies and gentlemen, good day and welcome to the Suzlon Energy Limited Q4 FY 2026 earnings conference call. During this call, the company management may make certain statements that reflect their outlook for 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. These statements should be reviewed in conjunction with the risks the company faces. As a reminder, all participant lines are in 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 and zero on your touchtone phone. Please note that this conference is being recorded. We will begin with the opening remarks followed by a question and answer 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, Member, Group Executive Council, Mr. Ajay Kapur, Group CEO, Mr. Rahul Jain , Group CFO, and senior members of the finance team. Over to you, J.P. Chalasani, sir. Thank you.
Thank you. Good evening to each one of you. We welcome you to Quarter Four FY 2026 investors call. I also welcome Ajay Kapur, who has now taken over the baton, and he will take you through most of the things along with Rahul Jain, whom we met last time. I just wanted to briefly tell you that over the last 12 months, we made different commitments at different points of time in interactions with you. A few of those things may be what we said and what we achieved is what I want to take you through in a couple of minutes. First one, at the beginning of the financial year, we said that in FY 2026, we will have a 60% growth.
That was a commitment that we made, and we are glad to say that we achieved that. Our overall EBITDA went up by 63%, profit before tax consolidated went up by 63%, and our WTG revenue went up by 65%. Therefore, the commitment that we made is what we fulfilled. Similarly, in quarter two when we were discussing the results, some of you had a concern that EBITDA has fallen for our business. We clearly said it's a one-off and by end of the year we will recoup it. Accordingly, by end of the year, we achieved EBITDA of 45.5%. We also promised that our EPC order share in our order book, EPC share will keep decreasing to 50% by FY 2028, and we started moving in that direction. In Q2, we were around 20%.
Now we reached 28%, and we expect it to continue to grow in FY 2027 and ultimately reach 50% in FY 2028. We also said that SE Forge is now on the momentum, and we're glad to say that its revenue went up by 22% and the EBITDA went up by 60%, and it would continue to see the growth even in the coming financial year. The last point I want to say is that some of you are aware that we signed a project implementation agreement with the Government of A.P. in 2015, under which we commissioned some projects in FY 2016 and FY 2017. However, it remained dormant for some time because of government change. Now, a new government has come in.
We're glad to inform you that in April, they've extended the PPA by another two years. Under this PPA, we have developmental rights for 2.1 gigawatts, 2,100 megawatts, out of which 775 megawatts is the PPA, which was signed earlier. It has now reached the APERC for tariff fixation. They asked us whether we can convert this into an FDRE. We said we gave our consent. There is a precedent of FDRE PPA tariff analyzed by APERC last year. This for the 775 MW, there are a couple of clients who are keen to take up this project once PPA gets approved. Beyond the 775, we have 1,325 MW, which will completely get monetized from June onwards in the next six months.
This is one very positive development for us what happened in this quarter. These are the significant things, what happened, what we promised, and what we achieved. The rest of the details is what Ajay and Rahul will take you through. Ajay, I'll hand over this now to you.
Thank you, J.P.C. Hello, everyone. It is great connecting with you today. Many of you may know me from my earlier associations. For the benefit of the larger group, please allow me to introduce myself. I'm Ajay Kapur, and I've joined Suzlon Energy Limited as Group Chief Executive Officer. I bring over three decades of leadership experience across infrastructure, power, construction, and heavy industries, and most recently served as Managing Director of Ambuja Cements. Talking about the industry, we are seeing a strong start to the year 2027, with power demand growing 5%-6% since April, and peak demand has already touched 270+ gigawatts. Overall, the environment remains favorable, with sustained demand growth and increasing peak intensity, reinforcing the need for reliable, flexible, and round-the-clock power FDRE solutions, which are wind-dominated.
For FY 2026 has been a defining year for the wind sector, with installations crossing six gigawatts, its highest since 2017, surpassing the previous peak and clearly underscoring the strong demand revival. This momentum sets the stage for a multi-year growth cycle, with installations expected to cross 10 gigawatts in the near term and reaching 15 gigawatts in next five years. With 56 gigawatts already installed and a strong pipeline of STU and PSU bids, as well as C&I demand, India is set to achieve the near-term target of 100 gigawatts by 2030. Repowering also started gaining traction, and there is rising consumer interest, which gives visibility of several opportunities ramping up in the next two to three years. Now taking you through the business highlights.
In FY 2026, Suzlon transitioned into a scaled, profitable, and financially strong market leader in wind sector. Suzlon delivered a record 830 MW in quarter four and 2,456 MW in FY 2026, which is our ever highest deliveries in India. Revenues also reached a record INR 16,679 crores, reflecting a strong 54% YoY growth. Order book of 5.9 GW consists of 66% of C&I and PSU segment, which is fast growing. The focus now is on expanding our EPC offering, which has grown from 20%-28% in H2, which enhances our competitive edge and further help to accelerate order book growth. Our S144 order intake has reached to close to 9 GW, a strong endorsement of its advanced technology and customer trust.
The Blue Sky platform launched in Spain marks our re-entry into European and other export markets with S175 and S163 turbines. These next generation high capacity turbines are designed for diverse wind regimes, delivering higher yields, improved reliability, and lower LCOE, while positioning us to tap both repowering and new build opportunities globally. 4.5 GW manufacturing capacity, fully operational, expanding footprint with three AI enabled smart blade factories to drive efficiency and scale. Suzlon commissioned 744 MW in FY 2026 and another 971 MW is erected, taking the number to 1,715 MW, shows the trajectory of commissioning growth for the future. We have achieved ramped up commissioning momentum with 332 MW in quarter four. This trend is expected to continue in FY 2027 pursuant to operational excellence work done in the last few quarters.
Our O&M business remains strong with 15.7+ GW under management in India and machine availability consistently above 95%. Renewals O&M is consistently growing on the back of steady fleet additions and a healthy order pipeline. Forging and foundry continue to scale strongly. The revenue at INR 597 crore up 22% YoY and EBITDA at INR 119 crore up 61% YoY, which continued momentum driven by domestic demand and export growth. Now I invite Rahul Jain , our Group CFO, to take you through our financial performance.
Thank you, Ajay, and good afternoon, ladies and gentlemen. I would be using slides 18 to 25 of our investor presentation, which has been uploaded on our website as the reference point for my discussion during the presentation. In Q4 FY 2026, Suzlon continued its exponential growth trajectory, delivering 830 MW, highest ever India deliveries for any quarter, with all financial parameters showing a strong uptrend. Suzlon reported consolidated revenue of INR 5,468 crore in Q4 FY 2026, with EBITDA reaching INR 964 crore. A robust 39% YoY growth with PBT of INR 833 crore and with a PAT of INR 1,114 crore. For the full year FY 2026, deliveries grew 58% to 2,456 megawatts. Strong execution momentum drove revenues up to INR 16,679 crore, up 54% YoY.
The WTG segment revenues grew 65% to INR 14,040 crore with contribution margin at 24.5%. Consolidated EBITDA increased to INR 3,022 crore, reflecting a strong operating leverage with 63% YoY growth. EBITDA margin expanded to 18.1% up 100 basis points YoY. PBT rose 67% to INR 2,422 crore with PAT improving to INR 3,163 crore. Let me also say that PAT includes a deferred tax asset recognition of INR 742 crore for the year FY 2026. We are pleased to report that our balance sheet as of March 2026 reflects a position of exceptional strength with consolidated net worth of INR 9,464 crore. Our net cash balance at INR 3,384 crore further enhances our financial flexibility and resilience. We also have 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. With this, I hand over the call to the operator and open the floor for Q&A. Thank you.
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Mohit Kumar with ICICI Securities. Please go ahead.
Yeah. Good evening. Thanks for the opportunity. A good set of numbers. My first question is, order inflow has been very good for the year, but for the quarter it seems to be tad muted. How do you think about from the opportunity perspective for FY 2027? Is it fair to assume a decline for a couple of quarters before the order book picks up once again?
Okay. Hi, Mohit. As you've seen, we are more or less closing at the same order book as we started the year. You would have heard J.P.C. talking about our AP project, where we have a very good pipeline in our new model of DevCo. We are getting very good responses. I can assure you that the order pipeline and the discussions that are currently underway, I think we should not have a issue. Our opening book was five. We are closing at 5.9. I think that is not a concern. I think it should be fine.
Mohit, just to add to what Ajay said, as we're moving now from equipment sales to mostly EPC contracts. EPC contracts take little longer time to close in terms of contracting. They are across multiple contracts. We are offering the sites to them. They will do their own wind assessment and then start discussing, we have a land agreement separate, all the agreements separate. Right now, we are in advanced stage, and I think you will significantly start hearing from June itself, this quarter, the EPC orders getting closed. Therefore, I don't think there will be any downward trend in the couple of years. A couple of quarters, as I mentioned, it will continue to be there. It's truly because changing over to EPC, it's taking a little longer time to close these orders. You will start hearing from June.
Understood. My second question on the PSU opportunity. We were going through the NTPC Green slide deck, which is available in the public domain. They were talking about adding 6.6 gigawatt, which is part of their contracted plus awarded pipeline, out of which I think they barely have tied up maybe one gigawatt or two gigawatt. A lot of capacity is still pending, but we haven't seen any closure in last maybe eight to nine months. How do you think about the pipeline, particularly about NTPC?
NTPC, Mohit, till now experimented with having a separate contract for development and BOP and then WTG, works and supplies. That's what our contracts have been till now. That's not yielding good results in terms of project execution. We understand they're now moving towards a turnkey EPC contracts. To start with, they already come up with some 250 MW contract in AP. We also understand they're going to come up with another 540 MW in AP, plus another 200 MW in AP. They have a significant pipeline now moving away from split contracts to EPC contracts. Therefore, obviously, we are strong in PSU, especially if you take EPC contracts, you would know that we would be much better off. I think that split contracts was making the capacity addition delay.
Understood. You expect that to pick up as you go along the fiscal, right?
Absolutely.
Given that I think it's a large pipeline. My second, last question, sorry if I'm squeezing in. There has been some talk about the DSM, and of course, it's not finalized as of now. In case the DSM, Deviation Settlement Mechanism for the wind gets tied in, how can a manufacturer like us can help mitigate the risk from the client perspective?
Mohit, we've been talking about this for the last two quarters, if you remember, okay. Yes, the CERC orders come now for wind, changing it from ±15 to ±10. For the existing projects, as well as they said that the path is set by 2031, we will reach the fossil fuel level. In fact, for the new projects are going to be bid out from 1st of April 2026, right from the day one they get commissioned, they'll get on with fossil fuel. While there is a stay currently, I think this is one which is, in our opinion, would happen for simple reason because it eventually, at the number of days. The energy meeting the demand of energy, I'm not talking about the megawatts, is renewable energy is costing 50%.
Grid stability becomes important. This will move. As far as we are concerned, we said earlier that we developed a strong scheduling and forecasting model, which we were testing till now at plus minus 15%. We are now quickly moving to making it plus minus 10% and moving ahead. We would use this as an opportunity for us as an additional service to provide scheduling and forecasting so that the accuracy level significantly go up.
Is it possible to use this model to help the existing client set? Let's say it's already installed.
Absolutely. We can start doing that. In fact, we have done for a number of our projects, what will be the impact of this ±15% to ±10%. Elsewhere in the world, Mohit, there are significant improvements happen in the predictability of the wind. There is some of them we're going to collaborate with few of the international people. This is badly needed for the sector, not just for Suzlon. This is important for the sector to grow. We will play a key role in scheduling and forecasting.
Understood, sir. Thank you. It is all the best, sir. Thank you.
Thank you. The next question comes from the line of Nikhil from Kizuna Wealth. Please go ahead.
Yeah. Hi, sir. Thank you for giving me the opportunity. Congratulations, sir, for joining us again. My first question is on the lines of last two quarters you used to provide the execution progress. This quarter we haven't provided that. Can you update us on what is the execution progress this quarter?
Okay. Thanks, Nikhil. I think if it's not there, we will have it provided. The good news is, as you have seen from my opening comments, we have delivered a record commissioning. I also mentioned there are almost 975 MW of turbines erected and not yet commissioned. Of those, almost 350 are just ready for commissioning. They're just waiting for the last mile because this is on the customer scope. I'm actually very happy with the progress we made. I'm very positive that going forward, this pace will only improve at a much, much faster pace.
Thank you for your answer, sir. My next question is, what are the battles for the next year, like for FY 2027, for FY 2028? How do you perceive the order flow will happen in the industry, and how will Suzlon benefit? More on European venture, why start that European thing right now? Not prior to that. If you could provide the vision for the European venture too, sir.
Okay. You're asking two, three questions, let me start first addressing the fundamental one. On the demand side, if you see over the years in FY 2023, the industry did 2.3 GW of installations, which went up to 3.3 GW in FY 2024, further went up to 4.1 GW in FY 2025. As I mentioned, 6 GW in FY 2026 is a record year. Our numbers would be more or less, plus minus you can give some leeway, 8 GW in FY 2027 and maybe 10 GW in FY 2028. I also mentioned that FY 2030 or FY 2031, we should be looking at around 15 GW. There's a very strong demand coming from wind as the industry moves towards FDRE.
With the solar peaking out in the morning, in the evening is when wind really works. Battery in many cases is there, but battery is not generating. To that extent, I think the demand is very good. I was there along with my colleagues in the Madrid WindEurope Annual Event, where we had opportunity to launch our new Blue Sky product range, which I mentioned. Of course, it will take some time for that to fructify. Around the sidelines of the conference, we met lots of developers, IPPs, and utilities. Most of them were very excited to work with us, surprisingly on our 2 MW and 3 MW series, and also the newer ones. Suzlon is very well known globally, as you know, over the years.
We have a legacy there. We still have a fleet there, and we still have offices across the world. We want to scale it up. It's a great market opportunity. We feel in the next couple of years, this will become another big revenue driver and a bottom-line driver. We'll talk about it more at some other opportune moment. I think on the order book, Mohit had already asked, and I think between me and J.P.C., we had tried to give you some guidance. Other than that, if you want some more specific ones, we can separately connect with you. Thank you, Nikhil.
Okay, sir. Thank you so much. I'll hand it back to you.
Thank you. The next question comes from the line of Sumit Kishore with Axis Capital. Please go ahead.
Thanks for the opportunity. My first question is on your cash flows. Basically, if you look at your operating cash flow, it's about INR 12 billion for FY 2026 versus your EBITDA of INR 30 billion. Could you please speak about the increase in working capital and receivables and whether there are any provisions for doubtful debtors?
Okay. Thank you, Sumit. I think the way I would look at it, our cash flow from operations has improved significantly when you look at it from an overall basis. Working capital is predominantly recently available buildup as primarily due to the PSU contracts. However, this was anticipated and factored into the tender pricing as well. The silver lining really is that most of this is serviced through non-fund-based limits. In a secular growth scenario, working capital days could improve substantially going forward as well. Yes, there is something. Overall also, when I look at it, our overall cash position has improved only. Delta around that is INR 400 crores plus. I'm actually pretty happy to see some positive momentum on that side as well. That's how I would really look at it, Sumit.
Sure. My second question is, after posting almost or 60% plus growth at the EBITDA level in FY 2026, how are you looking at the WTG deliveries, the contribution margin, and basically your growth outlook for FY 2027?
Sumit, hi, I'll come in here. Just as I was telling Nikhil, I already gave you our idea that next year market can be anywhere between 8-9 gigawatt. Suzlon has also mentioned that a very high amount of turbines erected, not commissioned, that should help us. I also said that our closing or opening order book, and also recently we got a Sunsure Energy order. You have already seen about it. We are already sitting at almost six gigawatt. Mr. J.P.C. highlighted right in the beginning, a great opportunity emerging from our forward-looking strategy. We'll also talk about it more in the coming days on development pipeline. At any given point of time, we are sitting on about 25 gigawatt of assets across the nation, of which 8-10 are very much better bet.
Of those, some of them J.P.C. mentioned to you. I think our teams are engaging with the customers. I'm very positive on the future. I think beyond that, at this moment, I would not like to venture into giving absolute numbers other than saying that the trend is already very positive.
Strong.
Strong.
Thanks for the clarification. Just one small point. Last year, at the end of the financial year, you had done a small cleanup exercise on the order book in terms of the non-moving orders. There hasn't been any such clarification this time. Is there any non-moving or slow-moving orders in your 5,892 MW order backlog?
Sumit, as of now, there is nothing of that sort. As management, from time to time, we will undertake such actions, which are, I think, very mature. Our order book is very healthy. In fact, I would stop at that. I mentioned our S144 platform, the 3X series. I'm really excited. 9 gigawatt of orders, I think it's one of its kind, and still receiving fantastic response. I was quite thrilled when I went to Madrid, when I met people across those two, three days. Very, very active pipeline of some of the leading developers, top companies, and they want to also shake hands with us. I think in time to come, that will also help.
Perfect. Those were my questions. Thank you, and wish you all the very best.
Thank you so much, Sumit.
Thank you. The next question comes from the line of Abhishek Nigam with Motilal Oswal. Please go ahead.
Thank you so much for the opportunity. First question is on the FDRE, which J.P.C. has mentioned in the opening remarks. Are you seeing more such convergence of projects into FDRE? If you can speak about that. That'll be my first question.
Okay. I'll request J.P.C. with his wisdom and deep knowledge of the industry to guide us on this.
Yeah, sure. See, the bids, whether FDRE or RTC or the pure wind, these bids would keep coming out depending upon which state has what sort of a current generation profile and their load profile. While FDRE would continue to be there, I mentioned FDRE with respect to the AP PPA what we signed for so and so different megawatt way back, and which came for hearing regularly, and they asked us whether we would be willing to convert into FDRE, which we said yes. In fact, some of you may know that in the last financial year, APRC approved one of the FDRE bids of 400 MW with two-hour peak, 90/90%, two hours morning, two hours evening, plus 60% CUF. They're looking at something of this nature.
However, sector-wise, if you're looking at it, we are also seeing the uptick in pure wind bids coming in, both at center as well as state level, because there were some gaps because solar went up and then now it is wind. If you look at in the recent past, the peak, which as I mentioned, 270 MW, which was in the daytime. The evening peak is continuing to be at 250 MW, and it's continuing till about midnight. If you see the contribution from the point of it at 270 MW, sorry, not megawatt, 270 GW peak was there. In that, the solar contributed 22% and 5% the wind during the daytime. In the evening peak, when it was 250 GW, solar was zero and wind was 21%.
Therefore, now we can clearly see that the wind contribution is increasing. Therefore, that's the reason we're also seeing increasing wind bids. I think it's totally up to the FDRE comes or the RTC comes or hybrid comes or the pure this thing comes, it all would depend upon state to state load profile and current generation mix
Perfect, sir. Thank you so much. Second question is, there has been a lot of depreciation of the Indian currency, the Indian rupee of late. Is there a need to take price hikes to maintain margins at consistent unit requirements?
Abhishek, I'll come in here. Some of our contracts have a pass-through with respect to the foreign currency impact that comes through. Right? Again, while there is a geopolitical situation that is prevailing as of now, we are always on a cost management drive to be able to reduce our cost to deliver better value to our customers. Yes, there is an impact, but again, with our cost management drives, we've been able to mitigate that impact to a very large extent, is what I would say. For the future, obviously, when we think about newer contracts, it will get priced in based on the newer exchange rates that are prevailing. I hope that answers it.
Okay. For now, margin wise, broadly, you would think margin should remain stable, not really go down in FY 2027? Not real pressure on that.
WTG margins, I don't think materially can go down.
Also, just to add what Rahul was saying, Abhishek, we are constantly also working on our R&D and cost optimization, supply diversification, and also Make in India. All the three things are working. Every year we have a target of constantly cutting on cost because that's the only way you can remain resilient. Our resilient supply chain has helped us over the last three years to keep cutting costs. Not too sure how much of pricing we can increase, but certainly business model reorientation is what we are currently working on. I believe with a more EPC, with a development company strategy, with I already mentioned 8-10 GW of more fully ready projects.
Customers are very excited to work with us because we just don't talk of selling for today, but we are actually talking of helping them build their projects for the year 2028, 2029, 2030. I think that's where then price is important, and which also J.P.C. alluded in the beginning when a question was asked that It takes time when you do these kind of development projects because it entails series of combinations of contracting. I'm very happy that we have a team in place, we have a structure in place, and we have a business model we are now pushing actively this year. That should help us mitigate a lot of our costs, at the same time, keep building our pipeline going forward.
Perfect, sir. That's very clear. Thank you so much.
Thank you. The next question comes from the line of Prakhar Porwal with Ambit Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. My first question is on the exceptional item that we see. One is in the consolidated statements of INR 70 crore. You've mentioned that it is given settlement of contractual matters. Is that in the O&M business that is done?
Prakhar, to answer it simply, no, it is not in the O&M business. It is largely SEFORGE.
Okay.
Actually, it is fully SEFORGE. It was a whole arbitration matter that got settled in our favor.
Okay. The second question is on the Andhra Pradesh order. Given you mentioned DevCo, you have already done around 725 MW back in 2015, 2017. Wanted to just understand how, I know the DevCo model, given you mentioned it is now getting converted to FDRE, what will be the scope that Suzlon will do? Will it be entire FDRE, solar, wind, et cetera, development, or you will do the wind part, which will be a similar EPC plus WTG model? That is the second question. Just wanted some details on the Andhra Pradesh mega. This will be actually part for DevCo model after transition to the new business model.
Sure. J.P.C., would you like to?
Let me just clarify that as far as Andhra Pradesh is concerned, way back in 2015, we signed what is called a project implementation agreement, where Government of AP has given us rights to develop X MW of projects. We had done some capacity of it in FY 2017 and FY 2018. At that point of time in FY 2018, they also signed a PPA for 775 MW, saying the tariff for this project will be fixed by the regulatory commission. Nothing much happened when in between the transition government came in. 2020, after we came back here. Now what we're talking about is not just the 775 MW, we're talking about totally 2.1 GW of development rights. Government recently approved extension of the PPA by another 24 months.
We have right to develop 2.1 gigawatts where the plant boundaries and everything are fixed, and then the agreements are signed with NREDCAP. Out of the 775 megawatt, they are willing to give PPA. That's the only difference. Balance is they're not responsible for taking the power off-take, so therefore they'll get converted into then our normal way of EPC contracts. The 775 megawatt FDRE, once the PPA gets finalized, there are a couple of clients who are willing to take over that as a PPA along with. Along with the SEB, which is signed the PPA, we have option, not we have option, we have intention to supply the entire FDRE rather than just the wind portion of it .
Because now we're really getting into full RE stack. That is what is the arrangement. As and when the tariff gets finalized for this project by APRC, one of those clients will finalize where they will own the project, and we will do complete FDRE supply and as well as services thereafter.
That is on INR 776 and the balance two point on the remaining part.
Balance we are already converting into EPC contracts. We are given offers various clients. As I said that at the beginning, you would see this from June onwards, next six months, the entire 13 megawatt getting converted into a firm EPC contracts.
That will be on a DevCo model where you do the entire part and sell it on a turnkey basis.
I don't know what you mean by turnkey. We will provide right from land to the entire project commissioning on EPC, on a turnkey basis.
Sure. Just lastly on margins and commodity inflation, I know, Rahul sir, you mentioned you'll be able to maintain margins, but given steel is a big component, if you can maybe qualitatively tell what type of measures would help. I know there are passthrough clauses, not all contracts have those. What all levers do we have to maintain margin going forward on the WTG business? That is the last question.
Abhishek, steel is largely a passthrough other than maybe some PSU contracts. I'm not really very worried about steel. Again, like I said, we should have a fair capability of maintaining margins where we were exiting. Obviously, this is an environment that is also volatile. Let's say there or thereabout, we should be in good shape.
Just to add to what Rahul mentioned. As we sell more of our turbines, we are able to renegotiate better rates on our diversified supply chain. I mentioned that nine gigawatt of S144 order book as it gets into COD, sooner . That gives our procurement and manufacturing teams also to renegotiate with the suppliers on the backend because there's a constant battle. Also then we'll have a leverage effect as we grow. Those are some of the other things we are working. We are also constantly doing value creation besides just negotiation.
Thank you so much.
Thank you. The next question comes from the line of Satpal Singh Khanuja from Ishan Ventures. Please go ahead.
Good evening, sir. Thank you for the opportunity. For the installation numbers this year, we did, I think if you leave the 971 windmills, which are erected but not installed, we did a number of 744 megawatts this year. When do you see this momentum changing, like installations being more than the activities so that the pending installations will start coming down?
Basically, if you see the growth is substantial. If you just see last year, same quarter, and also, as you know, last quarter is always a bigger one. In R&R, we did 573 versus that this quarter was 830, which was 45% improvement. Last year, same time, I think it was also an industry-specific issue. We did 95, and this year, same quarter, we did 332. That is 250% improvement. On top of it, there are 350 turbines, a MW I mentioned, is already ready just to plug in for want of the customers readying it. I think the momentum is good. Over the last couple of quarters, we have also rejuvenated our entire line organization. There are some decisions we have taken in terms of reorganization there, which are already yielding very positive results.
We are also running drives to improve the fundamental blocks, right from land to erection and before erection foundation. I'm seeing a very good traction. I believe this trend will continue. Rahul is also driving at his level along with his teams that drive on how we optimize our working capital. For that, we need to pull the commissioning forward and also close accounts. That's the way you can recycle your money, which is in the working capital. We are very focused on this. I am sure in coming quarters, you will only hear a very good positive traction by us on this.
Sir, just a suggestion, if the management finds it all right, you could think about announcing the monthly installation numbers. The market finds it very, the entire stock price is very jittery based on the installation progress. Maybe waiting for a quarter, the installation numbers can be given monthly, if the management finds it okay and to do it.
Satpal, I hear you, I think as you know it, some things you can do it, some things you don't want to do it. I hear you. I can only say that. Rahul has something to say.
Yeah. Actually, I just wanted to add to what Ajay is saying. We have heard you. I think there is s ome merit in it. We will have to evaluate the positions internally and then think about how do we manage it. Thank you for the suggestion. Yeah
Right. For my second question, is there any development on the solar and BESS side? We wanted to move to those levels. Any acquisition nearing finalization or anything going on at that level?
As of now, answer to your second question is no, there's nothing around on the corner. Answer to your question number one on solar BESS, J.P.C. already mentioned that we are getting into FDRE. As we get into it, start signing the contracts with the customers, we'll start announcing these. Yes, that's very much in our agenda. What strategy, asset light versus investing, that's something we'll talk to you in time to come. Not today.
Okay. If I can squeeze just one more question.
Sure. Please go ahead.
Okay. Like is it best to say that it is the most probable scenario is that Suzlon will do 2,500 megawatts next year also?
Now you're putting words in my mouth.
Is that the most probable scenario, sir?
You're talking of installation or you're talking of R&R?
Delivery, sir.
We cannot give you that number, as I mentioned. Certainly, we can have a discussion whenever you want to. I can only tell you what we are doing on the leading indicators, which are going to help the lagging indicator, which is the delivery.
Again, you just want to quickly answer that as well?
I would only say, please look at the past trend, 700 to 1,550, 1,550 to 2,456. I just want you to consider the trend, and we expect the positive trend to continue.
Yep. Thank you.
Thank you, sir.
Thank you. Thanks for the opportunity. Thank you.
Thank you. The next question comes from the line of Sweta Jain with Anand Rathi. Please go ahead.
Good evening, everyone. Most of the questions have been answered. Just one on the co-development model, again, to get the EPC visibility. Where are we? Last time, I think we had interacted, we were talking about a 22-23 gigawatts kind of a development pipeline, of which I think seven gigawatts were at different stages of advancement. Could you throw some light on where those projects are, and has this pipeline moved anywhere?
Again, request J.P.C. to kindly guide us on this.
Yeah. I think you are spot on, Sweta. We talked about 20-23 gigawatts of identified sites and about 8 gigawatts development. That work is progressing, and some of them are now getting converted into contracts. Some places the land acquisition is under progress. Some places we signed the land agreements, but we are also now converting them into EPC contracts. There's progress happening, and then we would keep increasing this 8 gigawatts further. As soon as some contracts get signed, then obviously we'll keep adding more to it into the active development phase. This is what really is going to be our engine for growth in the coming years.
Not just for us, I think this is going to be engine for growth for the sector because the execution is becoming a major challenge, and this will actually unlock that execution challenges. You're already seeing that some of the EPC orders getting announced through this quarter.
By when do we see this announcement happening?
No, Sweta, we don't announce the land contracts.
Okay.
We only announce when we do the EPC contracts. There are some land contracts signed. They're acquiring. Say, the model I clearly explained earlier, that we will start acquiring the land wherever we see a high feasibility of C wind site, and we have put some working capital into that. Before we reach 25% of the land acquisition, we try to do a land contract. Now some of them we signed, and which we don't announce, as I said, we only announce EPC contracts. We're getting converted into EPC contracts, and which you will start seeing as early as. In fact, we announced some of them. Like the one which we announced last minute was coming out of the development pipeline only.
The EPC contract we announced sometime back. You'll also see some contracts getting announced from soon onwards. When we announce the EPC contract, we don't announce it has come from the development pipeline. That's why we are announcing it separately. It's coming. That contract itself is somewhat a development contract.
Got it. Thank you so much.
This was basically saying, Sweta, I think, as we go out in time, you will see more announcements around it as well.
Got it. This 22, 23 gigawatts remain as is for now?
Probably 20, I don't know.
No, it won't remain. Sweta, it will never remain that way. What is a number? The number will have X amount of sites. Some sites get signed, some sites get added. As you know that every year we keep adding new wind masts .
Correct.
We keep collecting wind data. We also map the likely substations coming up in the future. Okay?
Got it.
We also map which are the sites which can easily get converted into co-located hybrid projects. Okay?
Okay.
On that basis, we'll keep adding to this. It is a dynamic situation, so it will never remain static.
Got it. Thank you so much. That was my question.
Thank you. Ladies and gentlemen, we will be taking the last two questions for the day. Our next question comes from the line of Mahesh Patil with ICICI Securities. Please go ahead.
Yeah. Hi, sir. Most of the questions answered. Just one question on the Q4 PAT , sir. We have recognized deferred tax effect. How much exactly we should adjust in the reported PAT for this effect?
The number on the reported PAT that I have for the quarter is about INR 281 crore. That's the number to be adjusted.
Okay. Sir, in terms of the EPC contracts that you are doing, transmission part will also be handled there?
There is background noise. We can't hear you well. Can you just repeat the question, Mahesh?
I'm saying, in the EPC contracts that you are doing, the transmission part will also be handled by us. Is that correct?
No, no. J.P.C., would you like to answer that?
EPC contracts, normally we do the land supply, erection, and the BOP, and in some cases, we also do the pooling substations . Very rarely, extremely rare cases, but very rare, we take up the transmission and from there to this thing, but that's extremely rare. Most of the contracts will have within the plant boundary, and some will have plus the pooling substation. Extreme rare cases, the transmission line.
Okay, sir. Thank you.
Thank you. The next question comes from the line of Nikhil Abhyankar with UTI Mutual Fund. Please go ahead.
Yeah. Sir, just a couple of quick questions. We have seen the CapEx almost.
Sorry to interrupt you, Nikhil. Sir, you're sounding slightly muffled. May I request you to use the handset mode, please?
I just want to understand about the CapEx spend. We spent almost INR 550 crores last year. Any run rate CapEx that we can assume over the next three, four years?
Nikhil, as we expand our capacity to participate in the demand, which I mentioned already to you all, we would have a run rate of about 600 odd, plus minus 50, going forward.
Sir, what is the current capital deployed for the DevCo? I mean, you had said certain threshold beyond which you wouldn't go, so what is that threshold, and how much have we deployed right now, if we can?
J.P.C., you want to handle that?
I think, Rahul knows, we talked about earlier about INR 300 crores the cash we keep it for this. As we move ahead, depending upon how the model develops, and in case we also want to get into connectivity, then we will be needing some non-fund-based facility.
Sorry. Please go ahead, Rahul..
As of now, roughly the number is in the range of about 300-350. Yes, what you're saying is absolutely right, J.P.C. As we go on, we will see some more working capital needs on that side.
There are RE parks coming up, in some states have come up with already RE parks. We're also working with the Government of India for possibility of changing the GNA regulations so that we can develop RE parks with connectivity which is transferable. As and when those things happen, obviously that there will be more required, but those will all would help us to grow the business.
Sure. Just the final one, how much tax assets are still remaining and what should be the expected tax rate, say, in the next couple of years?
Okay. Again, the deferred adjustment that you have seen till now are largely related to recognizing certain deferred tax assets. Given our current run rate, we believe that there is, for the next two years, only the deferred tax charge will come into the profit and loss account, which is also a non-cash charge. Rough estimate from this are in the range of about INR 3,000 crore-INR 3,500 crore in terms of unrecognized deferred tax assets.
Sure. Understood, sir. Thank you, and all the best.
Thank you. Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to the management for closing comments.
Thank you, everyone. Look forward to remaining in touch in coming days and sharing with you the progress of the company. Have a good evening. Thank you.
Thank you, and bye-bye.
Thank you.
Thank you. On behalf of Suzlon Energy Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.