Ladies and gentlemen, good morning and welcome to the Sterling and Wilson Renewable Energy Limited Q1 FY 2026 all-hands conference call. Please note, this conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not a guarantee of future performance of the company, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing STAR, then 0 on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Sandeep Mathew, Global Chief Executive Officer, for opening remarks.
Thank you, and over to you.
Yeah, already, good morning to all, and welcome to our Q1 FY 2026 earnings call. We have with us today Mr. C. K Thakur , our Global CEO, Ajit Pratap Singh, our CFO, and Amit Jain, who are our HR partners. We will start today's call with the key operational highlights for the quarter and the industry outlook, followed by the financial highlights, after which we will open for Q&A. Thank you, and over to you now, Sandeep.
Thanks, Sandeep, and a very good morning to all the participants on this call. I shall begin with a quick update on our business operations and outlook. FY 2026 is setting up to be a very good year for the domestic solar EPC market from the strong grid pipeline that we are seeing build up. A lot of activities from both PSU and private entities are expected to begin to gain strong traction soon compared to the relatively quiet first quarters that we have seen for us and the market as a whole since bidding activities got pushed out due to various reasons, including disconnecting borders and fleets, among others. This push-out had resulted in our grid pipeline growing significantly, and now this is 30 GW, including over 26 GW pipeline for India alone. We expect the majority of these domestic pipelines to be awarded before December 2025.
Over and over, the solar EPC pipeline will continue to target DES projects and select hybrid wind EPC projects gradually. Our international pipeline also appears very promising, and we have been focusing on select PV and DES projects in Africa and Europe. We started this fiscal year by bagging our first currency orders when we were declared L1 at 219 MW projects in Gujarat, worth approximately INR 813 crore from the leading PSU. On the execution side, our teams have been making good progress and commissioned over 1 GW of projects in Q1 alone. In terms of execution, our scale-up plans continue to remain on track, and the improved top-line revenue of Q1, which has grown 96% year on year, is reflective of the same. Ajit will also update you on some of the positive yields of our efforts to increase non-fund-destinated services during this quarter.
Our unexecuted order book was approximately INR 8,348 crore as of June 2025, and is expected to improve going forward. This is picked up in domestic and international ordering flows. Over 88% of this order book comprises domestic Indian projects, while the international order book comprises primarily two projects each in Europe and South Africa. I would like to reiterate that we continue to judiciously evaluate projects in India and overseas and are mindful of having to remain patient in order to target profitable orders. Our EPC business is lumpy in terms of order inflow and timelines for our change in project closures. It varies depending on a host of factors, including finalizing subcontractual terms, land, and transmission of the residual. Our O&M portfolio outlook remains strong and continues to stably increase. Our current portfolio stands at 9.3 GW as of June 2025.
As we commission our large scheme of EPC projects, which are nearing completion, it will feed our O&M portfolio and should aid the municipal pickup in revenues in this segment from the second half of FY 2026. In addition to our organic O&M portfolio growth, we are also targeting distributed third-party O&M contracts, which can be attractive to our existing portfolio both in India and overseas. Now moving to industry outlook, India's clean energy journey has been cutting cut of transport issues thus far. Over this past decade, the country has recorded a remarkable surge in solar energy capacity, expanding from just 2.8 GW in 2014 to 1.5 GW by financial year 2025. We have also witnessed a sharp decline in solar tariffs, which have plummeted by nearly 80% from INR 10.95 per unit in 2011 to just INR 2.25 per unit today.
This unprecedented cost reduction has made solar, even when coupled with the battery storage, to provide around-the-clock solution more affordable than conventional solar power, fundamentally resetting the country's power economics. Reflecting this momentum, renewable continues to command an overwhelming share of all power sector investments. India has also emerged as the world's top destination for clean energy financing, and clean energy investments have been growing rapidly. It is a testament to the industry's confidence in India's green energy future. Given India's renewable energy ambitions, it is clear that the sales of new capacity additions will continue to remain strong for India to achieve 300 GW target by 2030. We are also seeing shorthand to ambitious plans of some of our clients driving this growth.
For example, the government of India has laid out an ambitious roadmap to significantly fill up in the NTPC's green energy portfolio, aiming to expand its current renewable capacity from 6 GW to 26 GW in the near term. This is a bold target of reaching 60 GW by 2030. In a major policy boost just a day ago, the Cabinet Committee on Economic Affairs approved enhanced investment thresholds for both NTPC and ONGC India, signaling a strong intent to accelerate the clean energy transition. On one hand, while the integration of renewable energy is gaining strong momentum, the challenge of grid stability is going to become increasingly pronounced. The 2025 blackout in Spain stands as a cautionary tale. It underscores the vulnerability of power systems heavily reliant on renewables without corresponding investments in grid-forming technologies and reverse energy storage solutions.
This incident serves as a reminder that the clean energy transitions must be underpinned by parallel advancements in both the renewable sector and storage systems to ensure long-term reliability and resilience. In this context, battery storage is emerging as a vital enabler for renewable energy integration. The government of India is actively advancing policies around this, while also promoting circularity in solar and wind components, life cycles, and exploring green hydrogen potentials. This plays a crucial role in grid stabilization, power optimizations, and ensuring round-the-clock electricity supply, particularly as renewables' benefit increases. Increasingly, the cost of battery storage has come down dramatically from INR 1,000,000 to around INR 250,000 per MW per month, making it more viable than ever before. Despite the progress, India's installed DES capacity remains modest at just 2.5 MW. However, a significant pipeline is building up.
3.3 GW of projects are already lined up, and another 12.5 GW is currently under various stages of tendering processes. The country has set an ambitious target of achieving 74 GW of DES capacity by 2031-32, which will be instrumental in balancing the intermittency of renewable power generation. The Ministry of Power recently launched the second tranche of the Viability Gap Funding Scheme, aimed at catalyzing the development of 30 GWh of DES projects, backed by a budgetary allocation of INR 5,400 crore. Of this, 25 GWh will be distributed across the three ministries, tailored to their individual storage requirements, while 5 GWh has been earmarked for NTPC alone. These projects are expected to be commissioned within 18 months from the signing of the Battery Energy Storage Purchase Agreement or part of the agreement, reflecting the urgency and seriousness with which India is approaching its storage requirements.
Beyond that, the government is also re-integrating pumped hydro storage. It aims to add around 3,000 MW of hydro pump storage capacity in the near term. It is a broader objective to scale total pumped storage capacity to 50 GW over the next five to six years. These developments implement a comprehensive strategy to strengthen India's grid infrastructures and make the power sector's future ready for a high-renewables landscape. On the international EPC side, we are increasingly seeing attractive opportunities opening up, primarily in Africa and Europe. We are also seeing a good number of European DES projects to complement the renewables growth seen in the market. Our current progress in ongoing projects has also been very positive. With this, I'll ask Ajit to take you through the consolidated financial highlights. Thank you very much. Thank you, Sandeep.
We are very pleased to report a very strong first-quarter performance with our top line growing around 93% year on year to INR 1,762 crore. Sequential decline in revenues is attributable to seasonality impacts since Q1 is usually slower than Q4. We also wish to thank our employees, suppliers, contractors, and other stakeholders. Since we put their most efforts to achieve this strong revenue growth in this quarter, despite the disruption in various projects caused by cross-border conflicts, a large majority of the projects in Gujarat and Tuls were disrupted for around 40, 45 days. Despite that challenge, we could achieve this revenue growth. Our pre-segment, domestic EPC, international EPC, and O&M contributed to the strong performance in quarter one. With respect to our gross margins, our consumed fuel gross margin was approximately 11.7%, while our full-year FY 2025 gross margin was 10.1%.
This has moved from 10.1% to now 11.7% for the first quarter. Stuffing off from key input costs helped the gross margin positively during the current quarter. Looking at it segment-wise, our domestic EPC gross margin was 10.8%, and that's above our target range of 10%, while our international EPC gross margin was approximately 12.3%. More separate of the steady state margin profile of that segment, our O&M margin trended back to now 23%, which is again reflective of recurring margin profile of that segment. Our operational EBITDA, which is operating revenue less recurring orders, amounted to INR 123 crore this quarter. That's 7% of the margin. Compared to approximately INR 25 crore, we have seen in quarter one FY 2025. For Q4 FY 2025, it was INR 158 crore.
Our recurring order has been studied at INR 83 crore in Q1 compared to INR 77 crore in Q1 FY 2025 and INR 105 crore last quarter. Reported Q1 EBITDA was INR 102 crores at a 5.8% EBITDA margin and up 125% year on year compared to INR 37 crores in Q1 FY 2024 and is very close to INR 11 crores reported in Q4. Reported Q1 PAT was INR 39 crores compared to INR 5 crores for the same period last year and INR 55 crores in the prior quarter. The tax expense has been higher during the current quarter due to higher standalone profitability in Sterling and Wilson Renewable Energy Limited as well as in South Africa and Spain projects. Now coming to balance sheet, our gross borrowing has declined during the quarter due to the start of repayment of our IREDA loan.
Our net debt has increased by around INR 205 crores during the current quarter because last quarter we have taken a disbursement from Bank of Morocco for INR 200 crores, and that amount was utilized during the first quarter. A key development that I would like to highlight is a two-notch raising of Acuite Ratings to BBB+ that we have received for our working capital facilities and term loan. We have also made progress on our banking limits runs and have obtained sanction from three new banks for around INR 900 crores plus currency bonds of around INR 200 crores we have got. We have also received favorable indications from our existing consortium banks as well as a few new other banks for our requests for additional credit lines.
Our improved credit rating has also helped us in getting our LC/BG charges reduced going forward, and we have made significant progress in that direction with some of the consortium members. With this, we can now open the floor to questions and answers.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Kunal Shah from Dan Capital Advisors Limited. Please go ahead.
Yeah, hi. Just a couple of things. One on the muted order inflow bit, could you just tell any update, touch upon it? Was it more to do with the overall tendering activity being soft, or are you still letting go of orders due to aggressive competitive intensity? Related to that, how do you see now for the full-year order inflow shaping up? Do we maintain the previous guidance?
Yeah, hi. Good morning, everyone. Primarily, the order has been pushed from the last few quarters to Q1, Q2, Q2 also, mainly because of a few reasons. One prominently could be the ALMM II requirements for the shell. The industry is just watching to see how the domestic solar modules could be produced and at what price and all. We have all of the developers who have applied for the release on the timelines for the projects. That is one of the reasons. The other reason for the project being pushed to the one in quarter two is basically some of the connectivity issues. Connectivities which were all planned by March 2025 have been pushed towards 2025, particularly in Rajasthan and then in Gujarat, some of the large sites of systems involved.
From our side, although the Q1 has been a little lumpy, we are sure that with all these pushed to quarter two and quarter three, there would be large opportunities. We are well prepared to follow the guidance that you have given to the investors.
Understood. This is very helpful. I just wanted to confirm, you mentioned about a relaxation on the LCM timeline, right? What have you heard of finally?
The deadline for the ALMM II on the shelf has been decided by ministries as 1st June 2026, right? You see the total capacity in the country. We are not basically, as of now, and the manufacturing capability and other things are not up to scale to that level that can meet the requirements of the country's development plan. Therefore, people have been approaching to extend the timelines. If that happens, then there is a confusion on the pricing on the model side. Whether the pricing that could be considered is the international model or international shelf with the domestic tolling or maybe the purely domestic. That's the reason basically all of them have been just waiting or watching, right? This is the reason mostly that the development projects have been shifted.
In fact, from last quarter one to quarter one, maybe a few of them will go to quarter two, but quarter two, the pipeline shifted in a way as well.
Understood. This is very helpful. Like, cross-border tension, could you just highlight on the quantum of revenue impact here? I mean, because you mentioned about like getting 15 to 20 days of impact. I missed that number, but could you just highlight on the revenue impact here?
Yeah, so we could have done better than what we have been showing now. From the last week of April to now, almost the entire projects bordering Pakistan, I mean, like Gujarat and Rajasthan, these were evacuated. These were remobilized. We lost the productivity for last year for 40, 45 days. That has definitely impacted our, you know, the revenue generation for this month, this year. Going forward, because of monsoon, some impacts could be there, but primarily, we feel we are very strong and we could be, I mean, in this summer adjustment because of monsoon and all, but we believe we should be on our target.
Understood. One last thing on the banking limits, over the last 12 months, there have been a slew of ratings upgrades consistently. The commensurate increase in limits, partial available limits from the banks, has been very slow. How do you think of LCs opening up over the next three to four months? Could you just help with the current positioning and how do you see the non-committed limits opening up?
As you see, we have seen quite good progress this quarter. The rating got upgraded now to BBB+. That has helped us in achieving increased entries for around INR 900 crore from new banks who we are going to add in our consortium. Over in the go, we are also speaking to our existing consortium members as well as a few new banks. We are hopeful to get an additional around INR 1,500 crore lines in this quarter.
You think 900 + 1,500 is the total number, right, that you're looking at?
Right. Over in the go, we have got surety bonds from insurance companies. Three insurance companies we have invested in, you know, using surety bonds also for either replacement of our EMD and performance line literature requirements.
Understood. Just one last bit on the bookkeeping. You mentioned about softening of input costs in your presentation for the reason for improvement in gross margins. Could you just touch upon what are these costs, I mean, in that sense?
Yeah, so what Sandeep had mentioned about the input cost is basically a few of the orders that we had was the turnkey solutions, right, including the modules and all. Because of the tariff war and all those things, input in and out, there was a good amount of the modules available in the market, right? Because of the overall requirements, demand issues, the module prices have gone down. Some of the modules that, the process of modules that were supplied during these quarters, that has given us advantage. On our normal way to say that we could have achieved probably what was the accepted margin on the project, but the softening of some of the raw materials cost, like the module prices and all, that has supported us to increase our margin on the projects.
Sorry for one of the follow-up, but it should not benefit or, you know, the margin should not be upwards or downwards, right, because of the back-to-back billing. Could you just tell here, because irrespective of model pricing going up or down, now because we are doing back-to-back billing to hedge ourselves, why should it even be advantageous?
Yeah, so basically, when you have got the project, it's called the hedge price of model, suppose, right? We have seen that we have some cushion in the project schedule. Going forward, we renegotiated the price of the models. The price that was fixed, I mean, has gone under change to take advantage of the existing market price. That was our business to be, and that has supported us to increase the bottom line.
Yeah, this strategy can work the other way around as well, right, in case there is any inflationary effect on the models. Just wanted to understand.
Oh, yes, the order was not stopped. The order was already, I mean, placed. We were, in any case, protected.
Okay. Understood.
Yeah.
Thanks for that from my side. This is very interesting. Go ahead.
Yeah, we had around one to two months' time between the order placement and all these kind of understanding and all. That has supported us to renegotiate better and get the pricing.
Is there anything that you'd like to add?
Between getting the order and chasing the order per module, that also helps us to better negotiate our way.
Okay. Got it. This is very helpful, sir. Thanks a lot.
Thank you. The next question comes from the line of Akshay Mane from Nuvama Wealth Management Limited. Please go ahead.
Hi. Good morning. Thank you for providing me the opportunity. Just wanted to understand the follow-up question from the point of view where the order inflows were lower in this quarter. I mean, going ahead, we've always maintained that order inflows of around INR 6,000 to 8,000 crores for a full year. Can we expect a similar guidance for this year as well?
Yeah, last quarter, if you can recall, we were giving guidance to the market that we will be growing at 15% to 20% on a year-on-year basis. For sure, what was achieved during the last financial year, we will be doing better than the last ones at the rate of, say, 20% growth on the order bookings.
Okay. Since there was this news regarding the ISTS river getting expired, is there any further update on the expansion of the thing, or if there's any clarity on that policy which will actually handhold the delivery of that?
That was pure. I think this is one of the reasons, you know, apart from the ALMM II that I spoke. Connectivities is also an issue. One, the infrastructure readiness is getting delayed. Another is that the ISTS waiver people are seeking approval for extension, which has not been given as of now. The industry, particularly in CNI sectors, is expecting this to come, right, so that they can get the advantage onto the societies that they have committed in terms of pricing and all. Yes, you are right. The ISTS waiver, of course, not announced as of now, but this is impacting the overall growth of the industries.
Okay. Lastly, are other expenses on the ISTS? Do we have any other exceptional item in the other expenses this quarter?
Yes, actually, we have insured fiber receivers on a conservative basis, around INR 21 crore for one of our interested projects. That's a bit expensive to manage. If we remove that, then we are in line and consistent in terms of our recurring orders.
Okay. Lastly, any update on the couple of projects? I mean, I think there was an NTPC project where we were facing delays because of module supplies. I believe that would have been shortage currently?
Okay, basically, out of two projects, one project, Cabra One, had almost been shortage. Only 100 MW modules supply is still pending. Cabra Two, yes, it is not shortage because we sort of, you know, the projects getting commissioned by June July, but the module supply has been delayed. Around 200 MW kind of modules have been supplied, and the rest is underway. The monsoon is still impacting, so the project would be further going well. Because of all such delays, you have given very strong notice for plan extensions and the claim to NTPC. In any case, on our project finances, because of delays on account of the customer input, it's not going to impact us.
Okay. Okay. That was very helpful. Thank you so much.
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request that you respect the two questions per participant and rejoin the question queue. We take the next question from the line of Puneet from HSBC. Please go ahead.
Thank you so much. My first question is, in your overall order book, what percentage of value is the projects with modules?
Percentage-wise, I see two things. One is that until last financial year, some of the orders which were placed to PVPC had been canceled going there with the models, and that have come up now for the pen license. Out of that, we have gone, I mean, the first one that we have won, right, in the first quarter, this is with models. For the last financial year, if you see, percentage-wise, could be around 25%- 30%. This year, the trend could be reversed because of the ALMM requirements, most of these tenders are restricted with the U.S. schemes.
Understood. Then the responsibility will be with the developers to bring modules, not yours, right? Or will that module part come in later?
No. It will be the responsibility of the developers. They will take the model in their scope and give us the free issue items. That's the basic trend we are expecting because of the uncertainty on the ALMM II disclosure now.
Second issue, could you also comment a bit more on the color of your orders inflow for this quarter? Were there any battery projects? Who are the key customers for you in this quarter?
I mean, trend is reversing. Now people are going under FDRE schemes, or to remove the intermittency of the renewable energy meters, people are going more for the hybrid. That's the trend we've seen. Of course, as in today, if you see in the country, we have only 205 MW battery capacity which we added. The pipeline seems to be, as I have told in my opening speech also, around 3 GW clarity has come out, right? Here's options and other things. For us, for sure, we are discussing this, few private clients which are of the last size of the hybrid orders. That will include the models that will, the solar that will include the wind and the battery storage. I don't want to name those clients at this scale, but then, yes, there are a few large-sized orders which are accepted.
In Q1, none of those are there. Can I presume that?
Q1, I call that we have only one order, which is from NTPC, and that is the Turnkey EPC Solutions with models, but not with the BESS and other schemes.
Okay. Okay. Understood. Lastly, any updates from the Alliance side on when they want to scale up for you?
Yeah, so basically, as you are aware that we are doing one pilot project for them, and that is the combination of various technologies and all. The project is doing well. Other than these projects, we are still planning for the customers in other areas. I mean, frankly speaking, a few opportunities are not reflected in the markets. As and when it comes, I mean, all of you will come to know that.
Okay. Great. Thank you so much. All the best.
Thank you. We take the next question from the line of Anuj Jain from Globe Capital. Please go ahead.
Hello. Am I audible?
Yes, sure.
Yeah, so I just want to understand, like, the projects which we are doing from the solar EPC side and the order book, how much is allocated towards this battery energy storage system? What is the share of this BESS in the order book?
If you see the total, I mean, the plans for the financial year two, the coming financial year in the next nine months, it's 3 GW out of the total 26 GW opportunity in India, 3 GW battery storage usability is there. I mean, out of 26 GW kind of batteries, so understand this is around what percentage? Around 15%, right? As I have told in the previous answer, the trend is reversing now under the FDRE schemes and the hybrid projects installation systems and all. Going forward, the package shares have to improve to avoid the intermittency issue of the solar renewables and the others. The share will increase. As of now, for us, we are better placed because we are doing one of the largest projects for one of the clients in the solar.
We are better placed in terms of integration, in terms of understanding, in terms of everything.
What is the revenue percentage contribution from this space as of now?
As of now, I mean, let's say in 3 GW, if you are able to grab around the 400, 500 MWh, that would be the combination of our total space in this financial year going forward. Last year, there was hardly anything. One of the projects which we were doing, unfortunately, has gone under the legal shaky and all. That project is not solved, basically. Going forward in this particular financial year, I mean, could be, I mean, the percentage-wise because the share is still, but could be, I mean, municipal. I mean, it's still, let's say, 500 MWh kind of thing.
Okay. Going forward, I mean, from probably next financial year onwards, we can expect some meaningful revenue from this battery energy segment, if I'm right.
Absolutely. Absolutely. For sure.
Second question, sir, I mean, like you have.
What I feel the interesting point here is that under the new scheme of the Government of India, now for all the new tenders, 20% capacity of the solar plants have to be supported with the battery, right? This has started going just now. Under this scheme, every single tender which will come out, that will be demanding the battery itself for the 20%. Let's say if you have INR 100 revenue, then the battery cost of the solar plants in this is more or less being comparable, slightly higher from the solar and all. With this, you can expect that going onwards, 20% revenue streams will be throughout the country. Industrial scenario would be like this. This passion which we've seen, this is the policy, right?
Tenders have not started coming out, but I am expecting that in quarter two, quarter three, most of the tenders will come on this scheme. Therefore, it will be reasonable to assume that at least 10% revenue streams will be coming from the battery and the other storage solutions.
Got it, sir. Got it. My second question is, like, we have increased gross margin in this particular quarter, and our EBITDA margins are hovering in the range of, you know, 5%- 10%. From the perspective of next, you know, two to three years or four years, what is the, I mean, you know, guidance which you can give for the EBITDA margin and gross margin? I mean, definitely, you should arrange kind of range where we want to be. I mean, what are the expected levels of EBITDA margin where we want to go?
Yeah, so our operational EBITDA is around 7% for the quarter. Overall EBITDA was around 5.8%. We expect to maintain the same range going forward.
Okay. Okay. This is a compatible range.
Right.
Okay, that is from my side. Thank you, sir.
Thank you. We take the next question from the line of Faisal Hawa from H.G Hawa Company. Please go ahead. Faisal, if you can please unmute your line and ask your question.
Hello. Hello.
Yes, Faisal, please go ahead.
My question is that, sir, what is the kind of order book that we can expect from overseas now in this current financial year? Second is, sir, what is the involvement now of the promoters, Shapoorji Pallonji and Khushru Jijina with this company? Is it now, are they more involved, or has the involvement come down? I know the management, I mean, you know the shareholding pattern is in the public domain, right? Mr. Khurshed Daruvala is well involved in the company, you know, the Chairman of the company. As far as the management controls and other things are there, it is with the professionals who are under the guidance of Chairman Mr. Daruvala. On the order guidelines that we have asked for, I've already told that we should be expecting, let's say, 20% over and above the last financial year, right? You have been clear.
Sir, one more question is that, with the overseas orders now coming down and the last part of the central office expenses were coming from legal expenses, do you feel that these expenses now could go down a lot because that is what is causing our EBITDA margin to go down, because of these large legal expenses? Also, do we expect any kind of large write-offs in this year on the tax front?
In terms of order books, we are expecting new orders from international locations also. We are bidding in some of the geographies and are in that position. That will come. In terms of legal expenses, because most of the legal cases are continuing, legal expenses will also continue at least for some time, three years. For what? Or two more financial years?
Yeah, at least two and a half, three years.
Would the quantum of these legal expenses be around INR 40 crore a year or more than that?
Yeah, it is around INR 40 crore a year.
In two years from today, maybe these expenses will come down to zero.
Right.
Okay. We don't expect any substantial write-off in terms of legal issues because most of the receivers are NW5s with ASUN and current receivers, these are our owners. Sir, do you have any idea of what the NTPC pipeline will be for this financial year?
Come back again, please? NTPC?
Yeah.
Yeah, so if you see the NTPC plan, they want to become a 60 GW renewable company by 2032. They have now the operating asset of around 600 MW, right? I mean, the Government of India, as you have told in my opening speech also, they have allowed them to invest around INR 20,000 crore in the renewables, I think this year and the next year. It's clearly they will be, I mean, touching up to 60 GW, but by 2030, their target is around 16 GW.
Okay. Sir, is the competitive intensity in the EPC players going down, or is it still very high?
No, so the competitive is pretty, of course, is going high. Sometimes I can say this quarter we have seen a spurt of a lot of infrastructures coming in for the solar EPC and all. I'm not sure how long and how best they can be continuing on, but yes, it is cyclic. Sometimes you see that, I mean, there are only a few, but currently you find so many people coming in. They take one or two projects, not able to distribute again. They will exit. This kind of situation is there. Yes, people are looking for this as a very attractive market. This competition is pretty, in my opinion, will be there for some time.
I appreciate you answering my questions so well, sir.
Thank you. We take the next question from the line of Mayank Chaturvedi from HSBC Mutual Fund. Please go ahead.
Yeah, hi. Good morning, sir. Just one question from my end. In your order book of about INR 8,000 crore order, how much of that will be dependent on DCR, soil integration, and the ETC projects?
Yeah, that's what I was just speaking. As of now, the deadline for the DCR is around the year of June 2026, right? I mean, now in nine months' time, out of these 26, 27 gigawatt opportunities that we are seeing in the market, people are just waiting. These 27 GW have to be added. There has to be an extension of the timelines. That is one particular point. Otherwise, if I can say in nine months' time, if everybody decides to go for the international distance, the best part is that in our existing order book as of now, we don't have anything which is DCR components. Everything is basically the international sale and the models price. We don't have the in the USD and the orders that we are getting, it is not affected because of this.
Okay. All right. Thank you, sir.
Thank you. We take the next question from the line of Nathan Gosar from BOI Mutual Fund. Please go ahead.
Just one clarification. If you can quantify in terms of INR crores, you talked about 3 GW' worth of battery order which will go into the system this financial year. Would it be fair to multiply this number with INR 250,000 per MW battery charge? How should one quantify this overall opportunity?
The battery price is constantly evolving, but the EPC, perhaps on this, you should be expecting between INR 3.5 to 4 crore per MW.
Okay. The geo ET card, this will also include the component, I mean, the battery charge.
We can do only VOS in battery projects. Basically, the trend is that the battery is being supplied by them free too. Outside India, basically, battery comes with the battery supplies, so we have to tie up. We did a few small projects in Mali, Nigeria, which were along with the battery and all. It is both, basically. In domestic markets, you see mostly the VOS, but outside, it could be this battery. Even if it is this battery, we'll currently carefully evaluate, and you can go with the Turnkey solution. That's fine.
You got it, sir. Thank you.
Thank you. We take the next question from the line of Himanshesh Duggar from Sila Holding. Please go ahead.
Yeah, hi. Thanks for the opportunity. My first study was on, it's a follow-up on the previous team and management meeting. There has been some write-offs of the table. I think, last, I think five to six quarters, we have seen this kind of happening on and off. Is there any, you know, approximate number around this, you know, what could be potential risk category in the overall the tables that we have today?
The write-off which I spoke, that INR 21 crore that we have taken on a conservative basis, there's no actual write-off. We're impaired considering that we might have to put some expense in the future in a particular project in the inflation location. Otherwise, the receivers are good, and there is no code in the state to be raised.
Peter, currently, wasn't more than six months receivables outstanding? You should be fine with that number.
I will get that one. I don't think I'll get that to you at the end.
Okay.
Any retention amount, I'll give you the exact number sometime.
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to respect one question per participant. We take the next question from the line of Ajis Lakhani from Unified AMC. Please go ahead.
Yeah, hi. Could you just call out that the 3 GW of BESS, is that more private sector or more public sector? Also, sir, I'm trying to get a slightly more nuanced, textured view that, let's say there is an existing asset which is in place, and then somebody wants to add the BESS component over and above on top of that. What are the operational nuances or challenges? How easy or difficult is it to do it? Does that mean that the flow of current has to stop for a period of time till you integrate it? What are the challenges with regards to it? Who is making these transitions today? Is it the private sector guys who are early in this trend, or is it PSU, for that?
Yeah, so see, thanks. I mean, if you see the overall, the battery schemes, basically, one that I have just informed the group that basically I put the policy, you know, 20% let's say the obligation for the battery to remove the intermittency. That would be the requirement, going forward. Now, I mean, this 20% would be detrimental for everybody, whether it's PSU or ITPs. That is important to ensure the grid stability and security and other things. Only going forward, whatever bids will be coming, that would be both the PSU and ITP. As of now, the large-sized few orders which are seen getting traction in the market is basically coming from ITP, which is reasonable.
For PSU side, if you see, I mean, NTPC and all, they are discussing on the long-term basis because they have to go for a massive scaling up of the battery and storage and all. No such one tender was there for the small that has all been canceled because of, you know, some reasons. The pattern will happen in both the sectors, the PSU and ITPs. Coming to your another question of how difficult it would be to integrate in the existing facilities because it depends on the land and level. Not necessarily that in the existing only you have to install. Now, maybe, I mean, the overall schemes you have to see that you can choose any locations and all, but preferably, if you have to install into the same locations, as far as the integration is concerned, you don't have any nuances. You can do that.
It's a solar plant may not be a stop anymore during the commission. Yeah, so I think I don't find any challenges.
Okay. Just a follow-up on that, let's say that NTPC has an existing platform in, I don't know, Gujarat, Rajasthan, and now they have decided that for an existing running asset, they want to put up a BESS. Is that going to be a project-specific order, or for the same, there has to be a tender that has to be issued and the same process has to be followed?
Obviously, we have to, you know, this is a tendering process. The project code, project name, everything could be the same, but the project number will be different. If you have to go through it, it's a tendering process only.
Thank you. Ajit Lakhani, please rejoin the question queue. We move on to the next question from the line of Gaurav from Anusha Gandhi Securities. Please go ahead.
Thank you so much for the opportunity. Sir, I'm referring to note number 7A and 7C of our calculated note flow count. Sir, there are a couple of customer claims total amounting to approximately INR 800 crore, which according to us are not tenable. I just want to request, if the ultimate outcome doesn't come in our favor, do these claims form part of the inventory agreement with the promoters? Let me do note number 7A and 7C.
It's not subject to indemnity.
Both the claims?
If the outcome is not our favor, then it's, I mean, it isn't a take on operation, right?
Some small portion is indemnified and some portion is not indemnified in these claims. Portion is indemnified.
If it's being moved the case, then it can have a major impact on our operation, right? Even the claims are in running hundreds of crores.
Yeah, based on the feedback we got from our lawyers and the.
That has been agreed upon by the auditors. That's where there is no impairment or any provision made there for any circumstances.
Okay, thank you all.
Thank you. The next question comes from the line of Sharad Shah from ITSA Securities. Please go ahead. Cherad, please unmute your line and ask your question.
Hello?
Yes, please go ahead.
Thank you for the opportunity. Sir, I just wanted to understand how BESS projects would be different in terms of execution time and margin against standalone solar projects.
Can you hear me?
Yes, sir.
Margin would be the same as the solar projects. In terms of timelines, it would be, I mean, better than the solar projects because the complexity involved here is less. The civil works requirement is less. You can say, I mean, 15% to 20% less timelines and same margin.
Thank you. We take the next question from the line of Subash from Value Investment. Please go ahead.
Hi, my question is more towards the guidance that you had given for last year. It was INR 7,000 crore, but we ended up doing INR 6,300 crore. Now, looking at Q1, when the revenue is more than 90% of last year's Q1, and also considering that 45 days was affected in some regions due to the border tensions as you mentioned, will Q2 be better than Q1? Also, for the FY 2026 full year, can we do almost more than INR 8,000 crore revenue? Along with this, I just have one question you can answer along with me. What is the per MWh revenue conversion in battery energy storage solutions EPC projects?
Per MWh, right?
Yeah, that's correct.
Yeah, so I'll answer your first question. On the revenue guidance, as I have already told, it's a 20% growth year on year. From last year to this year, we are on 20%. On the order booking side, also in the same regions. For the next quarter's revenue, we could be expecting similar or even better, but because of its productivity loss during the monsoon season and all, it would be slightly cyclic, right? On the second question, basically, on the DES side, let's say the DES revenue could be around INR 30 to 40 lakhs per MWh kind of things, right? That's what our pricing is. Depending upon the size of the battery that we are running, what the revenue will become in this sense.
Thank you. The next question comes from the line of Vedant Sargar from Nelmal Bank Securities Private Limited. Please go ahead.
Am I audible, sir?
Yes, we are.
Sir, I just wanted to know, are we going to reference your following input method or output method for the contract?
Input method, percentage of completion.
Yeah, like this 10% cost, we had a 10% revenue, we are expanding on a various basis.
Your voice is crashing.
Yeah.
Okay.
It says cost and cost says these are the things we should not see in this revenue.
Direct cost plus margin, that gives us the revenues.
Thank you. The next question comes from the line of Dalshika Kenka from AV Fincorp. Please go ahead.
Hi. Thank you for the opportunity. My question is mainly around the international orders, particularly the Nigeria orders and clarity on that in terms of what the progress currently stands at. Even if we get the order this year, firstly, what is the probability of getting the order considering the entire scenario that is going on in terms of the geopolitical things? Even if we get the order, I'm sure the revenues are not going to come in this year. We are also seeing some sort of write-offs that we have on the international order revenue. I just want to get some more clarity on the international order book. What is the scenario like? What is the probability like of getting more orders in the financial space?
Yeah, so in our business model, if you see for this year's financial year, our target is to get around $250- $300 million orders, primarily in Europe and the African markets, which is between these two. On the Nigeria side, it's a procedure to delay. Unfortunately, it's taking longer time, but yes, the project is on. As you have already told, even if it comes, it will take some time, right? Financial projects and the NTPC and also the revenue for the shares will not come from this project. Yes, so these two points you asked me, that's okay.
Sorry, I would like to respond to earlier questions. When we are on the receivables more than six months, it's around INR 330 crore.
For the total receivers, that's around 1,500.
In terms of 7A and 7B, note to the account that Conti claims under 7A, which is not indemnifiable, although there won't be any impact because the cash is already out. In terms of cash flow, there won't be any impact. However, if the order goes against us, this could be impacting CM, but not in cash flow because we are already cash out in there.
Thank you. We take the next question from the line of Mohit from HEM Securities Limited. Please go ahead.
Thanks for the opportunity. I kind of see you're looking to the next question. It's a question of subsidiaries and machine constant losses. Why are companies not listening to you, and which all subsidiaries are machine losses?
In international, whatever projects we are doing, those all are in profits. In South Africa, Spain, and Italy, all are making profits. The losses are from those subsidiaries where there's no project that they have taken over in Nigeria, Australia, Dubai.
Meaning that all the legacy orders are now completed in the subsidiary as well, and you will not see any losses coming in the future?
Yeah.
Okay.
At least we see projects, they have losses primarily because of the legal expenses and certain overheads we had in those projects, like I said, in Dubai, Australia, U.S.
Thank you. Ladies and gentlemen, with that, we conclude the question and answer session. We also conclude today's conference call. On behalf of Sterling and Wilson Renewable Energy Limited, that concludes this conference. We thank you for joining us. You may now disconnect your mic.