Ladies and gentlemen, good day and welcome to Waaree Energies Limited conference call hosted by MUFG Intime India Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nikunj Jain from MUFG Intime India Private Limited. Thank you and over to you, Mr. Nikunj.
Thank you, Siddhant. Good afternoon, ladies and gentlemen. I welcome you to the Q2 and H1 FY 2027 earnings conference call of Waaree Energies Limited. To discuss this quarter's performance we have from the management, Mr. Jignesh Rathod, Whole-Time Director and CEO, Mr. Abhishek Pareek, CFO, and Mr. Varun Goenka, President, Growth and Strategy. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more detailed disclaimers, kindly refer to the investor presentation and other findings that can be found on company's website and stock exchanges. Without further ado, I would like to hand over the call to management for their opening remarks, and then we will open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Nikunj. Good afternoon, everyone, and thank you for joining us on our Q2 and H1 FY 2027 earnings call. I hope you have had a chance to review our results and presentation. I will begin with our business updates and our plans. Mr. Pareek, our CFO, will then take you through the financial and operating performance. Let me first start with the industrial updates. India installed approximately 38 GW solar in last calendar year 2025 versus this nine months of calendar year 2026 is 35.3 GW, and for H1 financial year 2027, the 20.8 GW. U.S.A. installed approximately 43 GW in calendar year 2025 versus 19.2 GW in H1 calendar year 2026. Solar continues to dominate the energy transition across the world, and now with BESS being an additional accelerator, solar PV will continue to dominate the clean energy adoption.
In addition, we are seeing green shoots of new growth drivers of solar plus battery renewables from data centers, green ammonia and green hydrogen, all with significant business potential for Waaree Group across multiple business segments. We are building significant capabilities and capacities to be able to serve both existing and future demand sources across the entire new energy value chain. I am delighted to share that since first dispatch February 28, 2008, our 37 GW modules are in the field generating the clean power. In addition to that, we have started the kit business in April 2025, and we have reached a milestone of 1 lakh kit sold yesterday. Our H1 FY 2027 performance reflects the strength of our business fundamentals and consistent execution of our growth strategy.
For H1 FY 2027, a 47% increase in revenues, coupled with 15% EBITDA growth and significant improvement in operating cash flow by almost 5 x demonstrated the resilience of our execution. Our INR 59,500 crore order book further reinstates our execution roadmap. We are particularly encouraged by the strong momentum in our retail business revenues. It has reached INR 5,753 crore in H1 FY 2027, almost 2x year-on-year, and accounted for 37% of total revenue for H1 FY 2027, surpassing total retail revenue of INR 5,515 crore in entire last financial year. Our dealer network, digital channels and wider product range helps us reach customers across the country. Our domestic U.S. manufacturing recorded revenue growth of 113% in H1 FY 2027 on year-on-year basis.
Both India retail and international businesses are becoming important to our growth trajectory and EBITDA contribution. As we continue to expand our capabilities and strengthen our presence across the clean energy value chain, we expect our BESS, transformers, inverters, EPC, C&I, and green hydrogen businesses to contribute to future growth. We have an installed module manufacturing capacity of 25.8 GW, including 1.6 GW in U.S.A. Module production in the U.S.A. continues to ramp up and reach 0.3 GW, achieving an annualized utilization of 71%. An additional 3.2 GW of module manufacturing capacity is being added in U.S.A. The two lines are in the trial production at Brookshire factory. By March 2027, of which 1.6 GW to be operational in Q3 FY 2027 cells. Waaree Solar Americas to have 4.8 GW of free manufacturing capacity.
Turning to cell manufacturing, we currently have an installed solar cell manufacturing capacity of 5.4 GW in India. Our planned 10 GW expansion at Unn facility remains on track and to be commissioned in this financial year. Expansion of our ingot wafer manufacturing capacity is progressing well, as can be seen from the photographs included in the presentation. In our BESS business, we are looking at commissioning 5 GWh containerization facility in Q3 FY 2027 and 3.5 GWh of battery cell manufacturing in this financial year. On our outlined CapEx program of approximately INR 30,000 crore, 35% is already deployed, 28% is under execution, and 37% is under planning stage.
As we will enter FY 2028, Waaree will be fully ready to execute on capacities, namely 29 GW of solar PV, 15.4 GW of solar cell, 5 GWh of BESS backend container, 3.5 GWh battery cell manufacturing, 4 GW of inverters, 20,000 MVA of transformers, and larger integrated EPC entity. Waaree sits at the inflection of becoming vertically and horizontally integrated with high operating leverage potential ahead, driven by increased utilization of measured capacities near completion. With a clear strategic roadmap, expanding capacities, capabilities, and a strong focus on execution, we are confident in our ability to deliver sustainable long-term growth. We affirm our operating EBITDA guidance of INR 7,000 crore - INR 7,700 crore in FY 2027. With that, I'll hand over to our CFO, Mr. Pareek, to take you through the numbers and the progress of your investment plans. Thank you.
Thank you, Jignesh sir, and good afternoon, everyone. I will take you through our financial results, revenue mix, order book, as well manufacturing performance. I will then cover the investor program and our plans for rest of the year. Our Q2 revenue was INR 7,517.7 crore, up 33.9% year-on-year. Operating EBITDA was INR 1,335.2 crore, while margin was 17.8%. PAT was INR 753.0 crore. For the first half, revenue was INR 15,449.5 crore, up 47.3%. Operating EBITDA was INR 2,775.1 crore, up 15.5%, with a margin of 18%. Profit after tax was INR 1,645.5 crore compared with INR 1,651.1 crore in the same period last year.
We remain a net debt-free company with net cash of around INR 3,234 crore and a net debt to equity ratio of - 0.2 x. ROCE was 28.7% and ROE was 24.2%. Retail contributed 46.1% of Q1, Q2 revenues. Utility IPP, C&I customers contributed around 42.9%. Overseas market contributed 18.5% and EPC, O&M, T&D, and other segments put together contributed 12.6%. Retail was around INR 3,464 crore in Q2, up 52% year-on-year. Module sales were 3 GW, up 27%. Top five customers accounted for 18.2% and top 10 accounted 20%, demonstrating consistently diversifying revenue mix. Overseas revenues were INR 1,389 crore in Q2 compared with INR 2,875 crore a year ago.
Within this, the domestic revenue of U.S. increased to INR 1,300 crore from INR 732 crore. Revenue from exports from India was INR 89 crore compared with INR 2,143 crore last year. Our total order book as of October 26th, 2026 was around INR 59,000 crore. The module order book was 45.8 GW. As noted in the presentation, we have rationalized the order book. Orders which are yet not terminated, but we have reported them as deemed closed as major part of the export orders due to Section 232 U.S. without assuming any liability against us under these contracts. The geographical mix of the order book is now 48.4% domestic India, 43.8% domestic U.S., and 7.8% exports from India. Our cash and carry business keeps increasing the volumes in total revenue.
For the first half, total module production was 6.2 GW. Cell production was 1.9 GW. The additional 10 GW cell capacity is planned to start in current financial year, wherein around 5 GW expected to start in Q3 and another 5 GW in Q4 this year. Once this is completed, Waaree shall achieve total cell capacity of 15.4 GW, largest in the country. Ratio of cell to module capacity would rise from currently around 42% to around 65%. This shall help us use more of own cells as well as healthy integration in terms of production from own cells, as well as healthy mix of orders DCR involved in. For the second half, our focus is only on delivering orders, completing the planned capacities, and improving operating efficiencies. We also keep a close watch on our working capital and project spending.
If you look at our operating cash flow this quarter as well as H1, it has surpassed 5x of the total operating cash that we generated year-on-year. Also, if you also look at the total amount yet to be spent on the projects under three categories, projects which are already commissioned, projects which are under execution, and projects which are at planning stage. Waaree sits at sufficient cash balance at gross level, which is sufficient to fund key major portion of the projects which are under execution from its own capital without further borrowing. As mentioned by Jignesh earlier, we are maintaining our FY 2027 operating EBITDA guidance of INR 7,000 crore-INR 7,700 crore. Thank you for your continued interest in Waaree Energies Limited. I would now request the operator to open the floor for questions.
Thank you. 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sweta Jain from Anand Rathi Share and Stock Brokers Limited. Please go ahead.
Hi. Good afternoon, everyone. So on the retail business now gaining traction, could you just provide some color on the distributor margins and the overall profitability of the channel? Like, we did not see any increase in operating expenses related to any distribution led model expansion there in the numbers. So could you explain some light on how the distribution business is being now managed?
Thank you, Sweta. If you look at the distribution model, we call it as sometimes a retail or cash and carry model. We today stand with 775 + number of retail channels, retail centers, exclusively for Waaree across the country, with around additionally 3,000 + distribution points attached to them. Around 5,000 + people working under retail stores as well as the distribution points exclusively for distributing, executing, designing for Waaree across the country and servicing as well. This business has taken around more than a decade now. Once we started this, I think 2016, 2017, when we started, the journey started from around INR 10 crore worth of revenue from this unit, from three partners to 775 partners now and happily revenue from INR 5,007 crore.
This year we are looking around INR 10,000 crore- INR 11,000 crore revenue from this scheme alone. While you see the jump in the overall revenue mix from the retail, almost 100%, if you compare this H1 the last full year also. We also note that because of the operating leverage that we have created, we are bound to get advantage of operating leverage out here. Any incremental onboarding of franchisee versus the incremental revenue that we get is something that makes more sense for us. We also keep working a lot on the distribution model. It is not just a general sign-up or an agreement or a contract. It's an agreement wherein we supply the product, we supply the technology, we submit the skill set, and we help them, these partners, to install the projects as well as to monitor the performance.
Same point in time, these retail channels keep expanding their network, keep getting the annuity income from the operation maintenance that we are doing at the ground. This is enhancing the stickiness to Waaree. Also, there are few real partners today whose revenue has steadily grown from INR 1 crore- INR 2 crore a year to more than INR 52 crore- INR 75 crore on a year basis. This speaks about the benefit of leverage that not just Waaree, but the retail distribution channel is also getting. As we grow, as we keep introducing new products, like in the recent REI, we have introduced around three plus new models of the products, including inverters, kits, and modules. We also keep expanding portfolio like battery, small battery on rooftop, as well as small transformers, these products.
Each of these products are now going to get installed and started to supply from these retail channels. This sees a massive opportunity for us, not just to leverage on the existing network while we keep expanding network, but we also keep increasing the bandwidth of our product portfolios. Hence, the magnitude of growth that we see from this particular segment is massive. Hope this answers your question.
Yes, Abhishek, thank you so much for that. My next question is on the U.S. market. I think roughly the deemed cancellations that we are talking about is ranges between 2.5 GW for the quarter. Could we see such further cancellations in the future as well? What is the outlook in terms of U.S. business that we are seeing amid all this uncertainty that we are talking about?
Thank you, Sweta, for this question. I think it will help me to clear out the overall scenario of U.S. business as well. If you look at our reported order book last quarter vis-a-vis this quarter, you would see that the percentage of export order to the total order book has reduced from around 24% to less than 8% in a quarter time. Despite that, the absolute order book remained in range of INR 59,000+ crore . What I have exactly done is, Sweta, as you are aware that Section 232 is enacted in U.S. last quarter, owing to which there is a minimum import price in U.S. for import of panels starting December 4. Whatever shipments could happen, we have done those shipments, factoring in that we have to enter these products to U.S. markets, to U.S. shores before December 4th.
Anything beyond that shall require the MIP compliance as well as price adjustments. Though the contracts and agreements are yet to be terminated, or we have not yet concluded on the termination or closure, but as a fair and true disclosures, we have opted for a practice that wherever we see there is high chance or risk of renegotiation or cancellation of these orders, we have continued to not report them from the order book itself. Secondly, in terms of the overall gigawatts, broadly, yes, around 3 GW+ worth of orders we have discontinued to report now. Hence the ratio has declined from 24% - 10.8%. However, good news that our U.S. order book consistently is rising. With the Section 232, the ambiguity and noise around what is going to happen in the U.S. market has cleared out well. Why?
Government has clarified that this is going to be price of panels if you are going to use imported panel. Like price of modules is fixed at $0.38 + 13% duty across. Price of cell is fixed at $0.22 + 13%. From the calculation, seem to work around $0.40 - $0.15 plus 3% duty, and polysilicon price is around $21 + 13% duty. So this has set the tone for markets for next few years in U.S. Any order and every order that we are now discussing with these customers, including the ones wherein we have discontinued to report the orders, are the ones which are now discussed with 232 impact. This certainly help us to enhance our realization for what we get from U.S. from currently $0.26, $0.27- $0.30 range, maybe around $0.35 + going ahead.
As well as the longevity of these orders, supply chain risk, geographical risk of these orders going ahead is working in our favor with no further ambiguity in the U.S. market from the U.S. facility. Hope this is helpful.
Just on this from [audio distortion] .
Yeah. You raised two very important business segments, retail and U.S. I will just highlight one or two points only. Both these require far long-range planning in terms of building capacity or capability, which most other peers you will find have not invested really. It required understanding regulations, how markets involved. Just a few pointers. First on retail, slide 24 covers the entire retail ecosystem, right? This is an ecosystem play, does not mean you can just have capacity and you are ready for the market. The last mile is quite complex in India being not just a country, but a continent. Like Abhishek said, it has taken us 8- 10 years to build this. The servicing, the customer experience, the customer is buying an equivalent of something like a car for 10, 15 years or more.
Retail is a very different game versus just having a manufacturing capacity, which is for B2B, right? There is also a YouTube video on our retail business that was done at the May 7th event. I would encourage everybody to go and see that video in terms of how the business has evolved and what the kind of potential is. On the U.S. part, again, we are the only ones to have ready capacity at scale, almost 4.8 GW, with significant orders and offtake agreements far ahead of anybody else. It required years of thinking, maybe two, three, four years before, and regulations have just come in. Now, this part of the business, U.S. business, will see, I mean, in terms of margins, ROIC is very good. We will see significant scaling in FY 2028.
This means we would not see more cancellations from this U.S. order book. Whatever deemed cancellations was supposed to happen, we have already written that off in this quarter.
Sweta, the total magnitude of size of exposed order book [audio distortion] converting this into MIP contracts.
Understood. If I may take one more question on the domestic front, can I?
Yeah.
Okay, great. On the domestic side, we've seen the module production of QFS to 45%. Any specific reason why we have come down below 50% for this quarter? Or is it only, again, linked to this U.S. order book cancellations?
Okay. I think we are talking about the capacity utilization of modules this quarter.
Yes.
As you are aware that there has been a change or a shift in the policy, which has happened wherein we moved towards import around six, seven months. Because of shifting of supply chain, replanning the supply chain, what will not be shared for around a sequence of period has taken some time. Of course, in these four to five months now, module supplies are now increased, resulting in higher volumes in Q3, even higher volumes in Q3 in the exchange and process. So for the temporary lower percentage of supply chain planning, that will be starting from July this year.
Got you. Thanks so much. I will jump back with any more questions.
Thank you. A reminder to all the participants, please restrict yourself to two questions. The next question comes from the line of Sumit Kishore from Axis Capital. Please go ahead.
Good afternoon, and thanks for the opportunity. Two questions. The first one is, could you explain the dynamics around the sequential EBITDA margin decline from 18.2%- 17.8% in Q2? We have seen cell production has increased sequentially by about 300 MW, and there were more local U.S. sales versus exports from India. So what is really driving this reduction in sequential EBITDA margin?
Sure, Sumit. If you compare Q1 versus Q2, apparently, there is a dip in the overall EBITDA margins. But if you look at what has changed in Q2 versus Q1. In Q1, there was some refund from the U.S. duties that was recorded, leading to an overall EBITDA of 18%+. However, on like-to-like basis, if you look at both the quarters and compare what has changed, you will see there is a significant jump in the EBITDA margins without considering the refund income. Moving to higher utilization of cell from around 800 MW a quarter back to more than 1.1 GW in this quarter, supported with additional volume from U.S. module cut free, increasing utilization from 60% - 70%+ this quarter.
Going ahead, we are still expanding the utilization of both cell as well as module in the U.S. from existing facilities. Even if you look at the new capacities in U.S. which are going live, 1.6 GW in this quarter, another 1.6 GW in the next quarter, it is going to support our supplies as well as margin. Because in U.S., when you supply a panel, against every watt because supply, we get around $0.07 of the incentive. So that helps us from the overall operating margins as well. Plus the 5 GW of cell capacity in India going live in Q3 this year and additional 5 GW of cell capacity in India going live this quarter.
So that 10 GW of cell capacity in India shall also help us to use more owned and manufactured DCR cells instead of buying out DCR cell from markets and then producing DCR modules and then shipping out. So these three put together are the factors and the engines that we are looking at in next two quarters to expand our margin profiles.
Very clear. The related point is that the tariff refund, which is mentioned in point number six of note two account, was INR 349 crore in Q1. And that figure has moved to INR 360.4 crore in Q2. So should we interpret that INR 11 odd crore has been recognized in Q2?
Yes, that is it.
That should be adjusted from margin to look at the underlying margin performance.
Yes, that is a pure play margin this time. With hardly any adjustment or hardly any income from the refund portion. From that perspective, there is a significant change in the margin profile overall.
Sure. Given you have reiterated your EBITDA guidance of INR 7,000 crore-INR 7,700 crore, the first half has been around INR 2,700+ crore . Would it be fair to assume, given the cell capacity that you add now would take some time to stabilize, there is going to be a lot of hunching in Q4?
Partially yes, because the existing cell capacity is at around 81% in Q2, and considering the ramp up which has already happened, I think we are at around 90%+ already running the existing capacity. There is 9%-10% of improvement in output from the existing capacity, giving more than 100 MW of additional cell this quarter. Plus the new capacity of 10 GW will take some time to ramp up, but the 5 GW going live this quarter shall give reasonable quantity of volume in Q4. You should also add in the additional volume from the U.S. facility, which is going live this quarter, 1.6 GW, and another 1.6 GW in next quarter. Yeah, Q4 shall be heavy. Q3 shall also be loaded. H2 overall shall be around 55%-60% of the overall EBITDA guidance is what we are looking at.
The new capacities for module and cell should be able to operate at what, 30%, 40% utilization in Q4, 30%?
Yeah. Module will be much higher, but still you can assume around 30% - 40%.
Okay. Thank you so much, Abhishek. Thank you.
Thanks.
Thank you. The next question is from the line of Praveen Sahay from PL Capital. Please go ahead.
Thank you for the opportunity. My question is related to FY 2028. You had given all module cell BESS, inverter, transformer capacities extensions. Can you give us some indication, like how much of the revenue contribution for FY 2028 is going to be from the BESS or inverter transformer, which are new businesses where their capacities are coming in?
Sure. Praveen, if you look at our investment in all of these verticals, most of the CapEx are getting completed this year, except the second phase of battery, which is sitting in a hub, which is under planning stage, and the glass, which is in the planning stage. Inverter also. Most of these investments are starting to give their revenue as well as bottom line, starting from Q1 FY 2028. So throughout FY 2028, we shall be seeing both the support from these new investments, including transformers, T&D, new facilities of cell, electrolysers, inverter. As a percentage of overall revenue, we have not given a guidance so far, how much will come from this, but I can help you out with where directionally are we moving. Solar panel module business always happen to be around 95%-96% of our revenues years back.
It has come down to around 80%-85% recently. Going ahead, it seems that with the higher growth in nearby business verticals where we are investing around INR 30,000 crore over two and a half years, the contributions shall rise from 15%, 20% from these businesses to around 30%-35% over the next two to three years. So in the longer range, solar business share of the total revenue in terms of percentage may come down, though absolute value will keep on increasing because of the higher utilization of volumes across Indian facilities as well as U.S. facility. So 50%-60% could remain the pure-play solar business revenue streams in long range, two to three years. Around 40%-45% could be the range of revenue from these segments, including the BESS predominantly, plus the EPC and T&D businesses, and supported by transformers, inverters, and electrolysers. Hope this gives you some color.
Yeah, thank you for that. Just to follow up on this question, the BESS facility or especially the BESS cell capacity, which is 3.5 GWh , what is the status? That is also going to be alive from the Q1 2028?
The cell facility is expected to start its first allowed from Q4 this year itself. In FY 2028, we are expecting this line to continue to run on commercial basis.
Do you have an order book related to BESS as well?
We are starting to get the order book. Our order book includes some portion from the supply of energy storage products. However, as we speak, we are in discussion with multiple customers, India and overseas, for our energy storage container stack as well as export of cells from the facility. There are multiple discussions going around.
Oh, thank you and all the best.
Thank you.
Thank you. The next question is from the line of Aritra Banerjee from Nomura. Please go ahead.
Yeah. Hi. Thanks for the opportunity. I have two questions. One is regarding the margin differential in terms of modules that are exported from India to the U.S. and modules that are manufactured in U.S. and sold directly in U.S. What is the margin differential between these two products? Secondly, also, as per recent news, if China restricts technology transfers, then do you expect any disruption around commissioning plan of your wafer and ingot plant? Also regarding BESS's plant commissioning, can we have any delays or any disruptions in those segments? Those would be my first questions.
Sure. I will take up the first question of margin difference in export versus the local manufacturing. In previous calls also we have highlighted that an export of modules from India gives us an broadly EBITDA range per watt peak basis of $0.03-$0.04 at least. While if we manufacture the same panel, let us say currently we are manufacturing the panels in the U.S., we are getting the operating margin of around $0.02-$0.03 at utilization factor of 70% and above, plus there is underlying $0.07 of EBITDA margin which adds up to it. So overall there is a range of $0.08-$0.09 of EBITDA margins on this business at utilization factors of 70% +.
While we have already achieved that 70% +, I am happy to share that the operating leverage of our existing facility, plus the new capacity at same location is really giving us very positive impact on operating leverage from the U.S. facility. And later the margin difference between exports and local manufacturing.
China policy, as we have secured all the equipment in for sale as well as factory, there is no impact. Inverter also, the order and everything is being secured, so there is no impact.
Understood, sir. Just one clarification. So basically, if you include the IRA benefits, then basically you are saying the margin that can be realized from modules manufactured and sold in the U.S. can be higher than the modules exported from India. Will that understanding be correct? And just an extension-
Yeah, it will be more than double of export margin.
Okay. Just one extension to that question. This quarter we have not booked any IRA benefits, right? Or have we booked any? Could you give some clarity on that?
No, of course. Since IRA is a cash incentive, we keep on booking the IRA against our dispatches. We are also selling these IRAs and at what various stages we are selling these IRAs to other customers also.
Wow. Okay. So basically, the numbers that we have reported, that has some contribution from the IRA benefits as well, right?
Of course. That is what the business model of U.S.
Understood, sir. Sir, last question regarding pricing trends that you are seeing. If you could give some color on the DCR module prices and the non-DCR module pricing in the domestic market. Do you see any further competitive pressure and decline in the prices in the coming quarters? It will give some clarity on that. Thank you.
Yes. Naturally, as the capacity is continuously ramping up, the solar cell facilities is close to 40 GW. The next two quarters it will be around 70 GW, 60 GW. So naturally, some price correction will happen, but it won't affect much because of our franchise businesses, which directly uses into the installations and not the pure play trailing of the modules. We are not seeing much effect of it. We already factored in our business model this.
Also to clarify on the price differential between DCR and non-DCR, like currently, there are two different segments and two different pricing of these segments. For example, if you look at DCR, a price range for a utility on spot is around, let's say, $0.20-$0.21; for retail, around $0.23-$0.24. Forward pricing for next year is looking at around $0.175-$0.185 versus retail price of around $0.20-$0.21. So there's a price delta which you get if you are working and distributing to a paying retail versus utility. But in both the segments, we are looking at broadly price correction from DCR by 28. However, the ones who already ramped up the capacity to transit higher level, the saving, the operating leverage will continue to get the benefit of economies of scale.
Understood, sir. Very clear. Those are my three questions. Thanks for answering them and all the best for the coming quarters.
Yes, sir.
Thank you. The next question comes from the line of Shubham Borade from ICICI Securities. Please go ahead.
Hi. Thank you for the opportunity. I have two questions. First one would be, what is the status of ingot and wafer plant, and when do you think that the capacity will be up and running? And second would be, why the EBITDA under subsidiaries are very low despite good revenue of INR 22 billion, I think?
Ingot and Wafer plant is progressing well. Construction is under progress as per the plan, and it will up and running as per our given committed dates.
In fact, we have given some photographs of the manufacturing facility under construction as well. Even the representation within the progress of Nagpur ingot and wafer facility is also there.
What is your committed timeline regarding the same for the plant?
Around September next year, September 2027 is what we are envisaging as date of commercial production starting for Ingot and Wafer facility of 10 GW. That is what has been our commit also. That is also our event.
Yeah.
On the margin, I think I have already. Yeah, on the margin, I think I will pick up the second one.
No, not margin. Why the EBITDA under subsidiaries is very low despite higher revenues?
You are talking about?
Consolidated minus standalone, that way.
Okay. You are talking about the listed subsidiary?
Yeah.
I think the same has been taken up in the earning call of the subsidiary company, which is listed. But broadly, I can give a sense since there has been an acquisition of T&D entity under the subsidiary. While subsidiary operates around 17%-18% EBITDA standalone, the T&D business internal makes 10%-11% of EBITDA. So the blended margin of the EPC pure play renewable plus the T&D is working around between 20%-14%. I think the blended margins were broadly in the range of 24% also. The volumes, because of T&D business being a very large chunky business, are bound to look at much larger order books that we are subsequently chasing now.
Okay. Thank you.
Thank you.
Thank you. The next question comes from the line of Kaushal Sharma from Equinox Capital Venture Private Limited. Please go ahead.
Hi, sir. Very good afternoon. Am I audible?
Yes, you are audible.
Yeah. I just want to understand or get an update on your solar glass facility that you have the target to spend around INR 3,900 crore, out of which INR 60 crore has been spent. So how much is spent on the land and how much is on the equipment, and when are we expecting to commission this facility, and where is this facility located as of now?
So if you look at our presentation, we have given the spent amount which I referred to. Broadly, the spend as of now has happened on the land acquisition, building, and the related UODs, et cetera. We are in discussion with multiple partners for technology. Our expectation is that this facility should go live in FY 2029. We keep reporting the updates on this facility every earning call.
And sir, where we have procured this land, the location?
In Gujarat, near Navsari.
Okay. Got it, sir. Thank you.
Thank you.
Thank you. The next question comes from the line of [Prakhar Porwal] from Singularity AMC. Please go ahead.
Hello. Sir, my question is on U.S. facility. I just wanted to check what is the sales in U.S. facility, because 3 GW number you mentioned, is that total number or just India number?
3 GW number is a consolidated number, which includes the volume and supply from the U.S. facility. In Q2, the revenue and supply from the U.S. facility was around 400 MW.
Okay. Out of this 400 MW, 100 MW you would have purchased from some other-
Purchased and roughly around 200 MW itself production.
Understood. Can you please put some light, sir, on renewable power infrastructure business? I think you have also bid for some of these projects in IPP, maybe some light on that business.
Sure. As I mentioned, renewable power infrastructure is our business. We are looking at very large potential of tapping in all the large customers across large C&I customers points. What are we exactly doing in this business? I will try to explain. We have covered around INR 3,250 crore of CapEx for this business. As we speak, we have got connectivity of around 10 GW+. We have got PPAs of around 2 GW, which includes FDRE PPAs also of 700 MW of SECI, as well as other very high-rated PPAs that we have received in the last 18-24 months of time. We are also looking at the overall land procurement for these projects long term, between 25,000 acres-30,000 acres, which is under procurement in this business, which requires skill set of EPC plus developer plus supply of factory goods.
This is also acting as a channel sales for Waaree as a group. We are looking at multiple infrastructure points, the inputs as well as institutions who are looking out to create their own assets. But of course, not greenfield, either mid stage or post-development stage or shelf-ready projects into their portfolios. This business acts as suppliers to all those projects with a commitment to supply the equipment, EPCs, transmissions, transformers, all together from Waaree portfolio. This comes as an additional channel sales for Waaree, as well as give end-to-end servicing to our large pool of clients who does not have a mandate to take a risk on the connectivity either or land. We are catering to all large C&I customers, MNC clients, and funds of fund who really cannot buy out land and do the initial development risk as part of their mandate and portfolio.
Understood. Just one follow-up on that. Let us say, given there are some PPAs that you have signed of around 2 GW. You start building those projects, meanwhile, you will see what requires, over whatever construction timeline. If at all there is no buyer till that time, you run that plant and then transfer it after commissioning. That would be the model, right?
Exactly. But since these are high-yield assets, especially the ones which are energy storage and FDREs, we already have a pool of clients to whom we are in discussion with to hand over these assets on a premium, as well as keep supplying to this project as turn-key solution provider.
Understood. Thank you so much, sir, and wish you all the best.
The benefit of everybody, this infrastructure business, Abhishek explained. One, it creates a huge pipeline of orders for both our manufacturing services business. Second, it builds very close relationship with large infrastructure platforms that are coming up now. Sovereign funds, private equity funds, InvITs, annuity income, asset generating, these financial instruments that are coming up. They are all looking at a single partner to solve for them land connectivity, EPC, equipment supply, O&M. For them, the negotiation, having control over timelines, control over quality, and at the end, IRR generation because of whatever generation of units that is possible depending upon the quality of plants. So these funds are looking for a partner like Waaree, and Waaree is probably the only one to be able to do end-to-end manufacturing service and solving the grid connectivity land issues. We are not looking to build it as hold-to-maturity annuity assets.
We are looking to have minority equity at most in this, but it feeds in to our other manufacturing and services. Eventually, these assets can be sold off the books once fully commissioned and seasoned a bit. That would be additional capital gain apart from the manufacturing and services opportunity.
Thank you. The next question comes from the line of Nitin Kaushik from Afin Capital Private Limited. Please go ahead.
Good afternoon, sir. Am I audible?
Yes.
Hello?
Yes, yes. Go ahead.
Okay, sir. Sir, in the last call, at the end you mentioned an ambition of reaching INR 1 lakh crore top line in, let's say, four to five years. How would it be achieved and what portion of it would come from solar business and new business segments like BESS and inverter, et cetera?
I think in the previous question, Abhishek did explain to someone how the business will evolve over the next three, four years. Close to 45% would be solar. You can assume this entire 29 GW to do 20 GW-22 GW of module production. This includes, of course, Indian solar. Backward integration is cell and wafer, so that is not counted in the solar revenue. Then you have the next business segment, which is going to be large, is EPC. It is a listed entity, so you have all the information. Now you have the merger of acquired entity in that. Third being battery energy storage. Large plans there. Transformer, inverter, electrolyser, and the RE power. All put together, approximately 50% of the business can be non-solar over the next four years, even though everything is complementary and adjacencies of solar itself. These are not independent and parallel businesses.
Like solar plus BESS is now selling together. The whole industry has moved away from plain vanilla solar to FDRE RTC hybrid plants. Solar plus BESS is together. Similarly, inverter is going into our solar kit also, which is part of our solar business, and eventually we will have utility scale inverters also. All in all, in the next four, five years, we are looking at almost equal contribution from core module and non-module business.
Sir, considering all these new segments being around 50% of the entire business, this INR 1 lakh crore target seems achievable, right?
Yes, absolutely. If you do the math, even ballpark, let us say around 20 GW of module production, you can do your realization. That will itself become INR 40,000 crore-INR 45,000 crore of solar business. I do not want to go into further detail, but it is quite easily that you can reach INR 90,000 crore - INR 1 lakh crore revenue if you total up all the business segment capacities. Take a conservative utilization of 75% odd , and you should be able to reach anywhere close to INR 90,000 crore - INR 1 lakh crore revenue. In this end, there will be some new business segments also, some M&A contribution also in this over the next four, five years.
Okay, sir. Thanks. Also, what kind of utilization are we expecting?
Sorry for interrupting, Mr. Kaushik. Sorry for interrupting you in the middle. Please rejoin the queue for more questions.
Okay. Thank you.
The next question comes from the line of Sourabh Arya from Oaklane Capital Management LLP. Please go ahead.
Yeah. Hi sir. Thank you for the opportunity. So first question is actually on your data center announcement. So could you explain in detail what exactly we will be doing? Will you really be getting into colo business or we will limit ourselves to only supplying the power? Second is then, overall, how does it fit in our overall capital allocation strategy? How much capital we are thinking to allocate to data center business? Because if you see Waaree 2.0 CapEx plan, which you have shared, in that, of course, there is no mention of that. Second question is on retail business. So within retail, of course, now it's 46% of sales.
If we do the reverse math, that market size which has been given in presentation, around 3.3 GW of retail, and assuming 1.1 GW of all your DCR sales went into that. Are we trying to say we have 33% market share in that particular market? Or retail business includes non-DCR and maybe inverter sales, maybe some other portions? If you could divide that will help us connect it better. Thank you.
Two very sharp questions, Sourabh, and you are always well informed. Just on the data center for the benefit of everybody. First, the relevance and complementary, how it is fitting into Waaree and why is it a business focus? First, most data centers in India or globally have announced minimum 51% renewable energy integration. In fact, most policies around data centers. There is some disturbance, somebody can go on mute. Most data centers have the regulations which need them to have minimum 51% renewables. To give you an example, 1 GW of data center requires close to $8 billion of CapEx, out of which $2 billion would be towards the power infrastructure, $1 billion towards the core generation asset and $1 billion towards the grid-related infrastructure.
Data center is directly leading to renewables business in the entire value chain, and power actually is needed to begin with first, even before the GPUs or the tokenization engine begins. Right?
Yes.
That is the first relevance of data center business. Power is one of the largest OpEx costs and also in terms of CapEx, it is an early cycle CapEx in the whole data center CapEx. Now to Abhishek over on what are we intending to do. Infrastructure and EPC. By the way, this INR 3,200 crore RE power infrastructure commitment includes any kind of annuity or any kind of such assets. Right? It is not above.
Yes.
Abhishek, if you can add.
I will reemphasize what Varun just mentioned, that capital allocation, of course, is the key. Even in the presentation, if you look at three categories in which capital has been mentioned out there, one which is deployed, one which is under deployment, and the one which is in the planning stage. If you look at the total cash balance as well as liquid investments that we are holding as of September 26, I think we are almost in the cash for entire under-construction facilities as we speak. This number itself gives the confidence that the under-construction facilities of Waaree, other than under planning, are sufficiently funded from the existing cash balance. Over and above, over next six months, whatever we earn plus apart from take our earnings, will create another mode of cash balance to take on the projects which are under planning.
Now to comment the second question on retail business. I have given some color on it. I will try to throw some light here.
Just one point on data center, the kind of renewable capacity that is needed. For every 1 GW of data center, you require 5 GW of solar. You would require 4 GW-5 GW of BESS and another close to 3 GW-4 GW of wind. Because I think latency or pure power, hybrid, RTC, you all know that. Renewable investments is one of the largest. I think I have already shared the data points with you.
Yes, on the retail part. As rightly pointed out that the retail number, if you back calculate, will give a mind-boggling number that Waaree's overall share in the scheme of thing of retail is around 30% odd , is what we also see. With the newer franchisees getting onboarded, with the additional products that we have launched recently in past like inverter, et cetera, plus new products which are recently launched like batteries, small batteries for rooftop, C&I batteries, all of these put together will keep on increasing our balance market share on the retail front. So it's not just a supply that we do, it's not just a channel anymore. It's a business in itself, where we are increasing the bandwidth of projects of the products that we can supply. They're also enhancing the capabilities of serviceability, which can happen from these franchisee networks.
They are equipping the network with a digital infrastructure under length to service these contracts. Even if you look at the data, you will see that the installations by Waaree franchises across the country over the last 13 - 18 months of the PM Surya Ghar Yojana, I think the number is almost 3 x- 4x of the nearest competition in terms of the number of roofs that have been touched upon. I think that itself speaks of the velocity of this business unit at which it is growing.
Some of this market share data, again, might be, why? Because Waaree is selling integrated products, a whole kit, whereas a lot of other people are selling modules to EPC integrators and they do the BOS. So there would be various methods, and then there is an off-grid market also sometimes, which is sometimes not captured. To cut the long story short, in terms of market potential, first, Waaree is looking at this business becoming multi-fold from here, given more and more increase in SKU value. Earlier it was [1.5 kV], which was a standard. Now even [3.5 kV] is really selling well. Second, battery integration. Third, grid forming inverters or hybrid inverters would be needed to have battery integration in rooftop.
There is a very big fraction from C&I in rooftop, either for warehouses or for small factories, and they get tax benefits, which are very good. So rooftop is a very large business in making.
Perfect. This is really helpful. Thank you very much.
In China, by the way, last year, 120 GW - 150 GWs of distributed solar was installed. This includes basically non-utility. In India, we are still at 10 GW, 15 GW.
Yeah, it is very encouraging, actually, having 30% market share, which is very tough to crack and requires a very different mindset than selling only modules. Really appreciate this answer. Thank you.
Thank you.
Thank you. Announcement for all the participants. Please restrict yourself to one question. The next question comes from the line of Abhishek, who is an individual investor. Please go ahead.
Thank you so much. First of all, thank you so much, sir, for interesting set of numbers in spite of increasing competition in the market. Sir, I have one simple question. We had announced ingot and wafer expansion at an estimated CapEx of around INR 6,200 crore-INR 6,500 crore. Does that number still remain, or are there any changes in that number, sir?
Still stays there. No change has been. CapEx is INR 6,500 crore, which is the number.
INR 6,500 crore, right?
Yeah.
Right. And, sir, I believe, you rightly mentioned, before also, Rathod sir mentioned that the ordering of all the equipment is in place, so we are not in the risk of facing any restriction in terms of China supply. Correct, sir?
Yes, sir.
Right, sir. So, sir, we estimate that September 2027 is the deadline for ingot and wafer startup. But if I rightly understand the ALMM policy, which has been announced by ministry, that is going to take effect in June 2028. So do we see any improvement in margins after the commissioning of our ingot and wafer line, especially in terms of wafer pricing, et cetera?
The policy, there is a correction also, whichever is earlier. Government has given mandate of X amount of capacity, whichever is earlier.
Yes. All right.
20 GW if 20 years, then it will be earlier.
Right, sir. In terms of BESS manufacturing capacity, BESS, when I am looking at the photographs of the project site which are published on the presentation, it is very interesting to see, sir, how the cell manufacturing facility has grown up very fast. Whereas if I look at ingot wafer, the foundation works of ingot wafer factory are still going on. So we still believe that in the next one year, we will be able to complete entire ingot wafer facility. Right, sir? I am just referring to.
Yes, sir.
photographs which are on page 18.
Yeah. Its ingot and wafer civil is 70%, whereas normally civil is hardly 20%. There is a fundamental difference in this facility.
All right. And sir, the BESS Rola facility pictures that we posted, that is on the official presentation. This itself will have the battery cell manufacturing facility, right sir?
Yes, sir.
Okay. And that is expected to come up in Q1 FY 2028, if I'm not wrong. Q1 FY 2028?
Q4 we will start.
Q4 you will start. Great, sir. Okay. Thank you.
Just on the ingot wafer policy, I will just quickly mention, yesterday, DAC, the Defense Acquisition Council, approved over INR 2 lakh crore of procurement and with more than 80% India procurement. I think the signals from the government is very clear. The new energy value chain, again, is the highest priority. So government is pushing towards more and more localization of the entire value chain. Module has already happened. Cell will happen over the next 12 months. Ingot wafer is the next priority. Battery is the next priority. Polysilicon, of course, the intent has been announced.
Waaree is at the forefront of both backward and horizontal integration. Ahead of these regulations coming in, inverter also has been announced in terms of localization. Very big opportunity opening in terms of import substitution, plus domestic demand.
Absolutely, sir. Sir, when we look at inverter market, especially the U.S. market after Section 232, do we believe that our tie-up for polysilicon sourcing from Middle East would help us in getting any advantage in the U.S. market for selling our inverters in U.S. market too?
Yes, that is on the plan.
Got it, sir. Thank you so much, sir.
Thank you. The next question comes from the line of Amit Bhinde from Axis Capital. Please go ahead.
Am I audible? Hello. A few questions on understanding the revenue better. Can you help us with the mix of module and non-module component in the retail sales revenue? One. Second, approximately, if you can give us the kind of realization that you have had on the non-DCR and the DCR module sales in India and also in the U.S. And one more question I have on the balance sheet side, if you can explain the movement on other financial liabilities and the current liabilities. Those are our questions.
I will take the first question, module revenue versus the other revenues in the retail chunk. Majority of revenue, in fact, more than 92% is approx from module from our side. Balance is inverters and other products in the kit. Going ahead, since the contribution of battery storage inverter is increasing, we will keep seeing this ratio coming towards favoring other components other than module in the quarters to come.
Right. The second one was on the approximate realization. Approximate realization on non-DCR, DCR, and the U.S. sales.
Sure.
And the other as well.
Sure. What is DCR, what is non-DCR? I mentioned the DCR realization on spot basis for retail as well utility. Utility around $0.19-$0.20 spot basis, for retail around $0.22-$0.23. On non-DCR front, the pricing for utility remains around $0.12-$0.125. For retail, around $0.135-$0.14. So that's the differential pricing in the non-DCR and retail versus the utility. For U.S. pricing, there are two types of contracts. One, those contracts which require the supply from the U.S. facility itself versus the exports.
Exports, we were doing at around $0.25-$0.26 FOB basis. For local product in U.S., made in U.S., the pricing is between $0.29-$0.30. These two were before 232 announcement. Now post-232 announcement, the pricing has changed altogether. Going ahead, the pricing of imports of panels in U.S. to exports from India or from any other source will be basically minimum import price, which is $0.30 of module + 15% duty, which converts to around roughly $0.44 roughly landed module price in U.S. against $0.27-$0.28 of landed price in modules right now. Similarly, the local manufacture and locally sourced cell from the U.S. market, the product price is around $0.02-$0.03 higher, which is around $0.46-$0.47 with the local content of cell in U.S. versus the current price range of $0.33-$0.35.
Got it. On the spreads, if you can give some idea.
Sorry for interrupting, Mr. Bhinde. Please rejoin the queue for more questions.
Part of my question, I had one more part of my question on the balance sheet side.
Please join the queue, Mr. Bhinde.
I will take this up. DCR, non-DCR, I will take up first. For utility, of course, solar pricing is very competitive, highly competitive. The margins or the delta range is around $0.01-$0.0125 on working basis. Similarly, on the retail front, the margin and the pricing is better, so ranging is around $0.015-$0.02 on working basis, including network cost. On the DCR front, the margins are between $0.07-$0.08.
Understood. And the balance sheet part, the other sheet.
What is the exact question?
Yeah. There has been a large movement in the other financial liability and the current liability. If you could further understand, the payable towards capital good or what exactly is being moved in.
If you look at our cash flow, you will see that our operating cash flow has grown substantially high. But because of the investment activity, investing activity, there is a lot of deployment as well. Out of this deployment, there is a significant portion which is advanced towards the capital goods. It will get adjusted because the large pool of capital products which are competing this financial year. The majority of rise in this liability is moving towards the capital good advances.
Got it. Those are my questions. Thank you.
A reminder to all participants, please restrict yourself to one question. The next question comes from the line of Dhruv Muchhal from HDFC AMC. Please go ahead.
Yeah. Just one clarity. Is it clear what happens with AD and CVD after Section 232? Say, for example, if it is imposed on India, what happens to that? Is it covered in above or excluded?
Dhruv, AD and CVD, the rate has been mentioned and has been written, says that it will be over and above. However, given the fact that the AD and CVD in U.S. on import of goods from India is decided based if there's a cell is manufactured. If we use India-made cell and manufacture panels in India, export to U.S. under 232 scenarios, we will be subject to minimum import price of cost of $0.38 + 14% duty, plus AD and CVD over and above. However, neither in past nor currently we have used Indian-made cell for export to U.S. What we do is we import cells from the countries which is allowing U.S. from non-Chinese sources, FEOC compliance. We get those cell in India, manufacture panels, and then export.
Since we are not using Indian cells, we are not subject to AD, CVD in U.S. at all. However, as others, remains exposed to MIP. The product from India will also subject to MIP of $0.38 + 14% duty in U.S., main act. But of course, no impact of AD, CVD if you use non-Indian cells.
Yeah. Two quick questions.
Sorry, Mr. Dhruv, for interrupting. Please rejoin the queue for more questions.
Sure. Okay.
Yeah.
Thank you. The next question comes from the line of Anup Goswami, SUD Life. Please go ahead.
Hi, sir. If you can give a little view from the demand scenario right now into various categories, the top C&I and the utility scale. Of course, the kind of run rate we saw earlier, how do you see it, the current run rate, and going forward, where do you see it?
Jignesh Rathod did cover industry conversation. I will just give you, last year India did around 38 GW in total. If you look at segmental data for this year, residential plus C&I rooftop, Q3 was 3.3 GW and Q2 was 4.4 GW. On an annualized basis, it is already north of 15 GW or closer to 15 GW. In terms of utility scale, it is at 12 GW for the last quarter or so, on an annualized basis, closer to 25 GW. Yes, and this is all on AC, so you have to multiply it by 1.3, 1.4 to arrive at the DC capacity demand. All in all, around 60 GW, 55 GW - 60 GW demand is what is annually India doing.
The government is really signaling towards bumping up this to much higher from the rooftop segments. If you see new PM Surya Ghar Yojana regulation is in the works, just around the corner. All government buildings, all government institutions are also getting pushed to adopt solar rooftop.
Okay. Okay, sir. And since these numbers-
Sorry for interrupting, Mr. Goswami. Please rejoin the queue. Thank you. The next question comes from the line of Dhruv Muchhal from HDFC AMC. Please go ahead.
Yeah, sir. Thank you for taking back. So just clarity on the question asked earlier. The other current liabilities in the cash release from other current liabilities that we see in the cash flow, INR 2,300 crore, that is on account of what?
As we have received good amount of orders in this quarter, we have disclosed to you and the smaller ones as the policy. Overall increase from advances from customers has gone significantly high, and hence this increase in the other current liabilities of contracts.
Okay. Perfect. This will primarily be U.S. or even India?
This includes both India as well U.S. Dhruv, retail business does drive this.
Okay. The retail business works on, I suppose, cash and carry or even there are some advance payments also.
There are around 10% of advances, but the bigger chunk of the advance, of course, comes from the utility, once more India as well as overseas. We have also now starting 2 GW of orders which we received. Then also, we are receiving good amount of advances.
Got it. Last quick one. On the retail revenue, you disclose the revenue. Is it also possible to convert it to what it implies on megawatt basis? Module price?
I think we will try and do that subsequently. Waaree is trying to move from just module to the entire U.S. also. Yes, we will just look into that in terms of if we can give some kind of a What will happen is it will create a little bit of confusion. If you just give a gigawatt, people will try and arrive at the realization, but that realization would not look right.
Yeah, sure. Perfect. No worries. Okay. Thanks so much and have a good day.
Thank you. The next question comes from the line of Siddhi Soni from Hansa Financial Consultant. Please go ahead.
Hello, am I audible?
Yes, please.
Sir, I understand that you mentioned that 40%-45% of our revenue would come from other businesses in the coming year. I want to specifically understand about the BESS segment. Can you throw some more light on that?
On BESS, there are two phases of the project as a whole. First phase is 5.1 GW container manufacturing, + 5.1 GW of pack manufacturing, followed by 3.5 GWh of cell manufacturing. We commissioned the containers last quarter. This quarter, we are expecting the pack to go live, and next quarter, we are expecting sale to start production on pilot run. The entire integrated line is expected to start in current financial year on the phase one. For phase two, we are planning and we have finalized the location for the same. However, on the battery portion, second phase, we are going to increase or put up money once we get more clarity on the policy front or we get more orders from the overseas customers.
In terms of understanding of gross revenue and growth potential from the business, for the mental maths, you can simply take the average of around $100 per kilowatt hour, which is the gross pricing for the utility currently. That you can use to arrive at the potential of revenue from this vertical. Maybe you can consider 5 GWh of the phase one and then multiply it by $100, is what you get revenue at peak, around $4,000 - $5,000 revenue. If you sell container and if you wish to sell cell separately and use imported cell for container locally, you can further top up the revenue with incremental revenue from direct cell supplies and exports. Similarly, phase two, 16.5 GWh of cell and 15 GWh of container can give you another revenue potential of INR 15,000 crore-20,000 crore.
Put together, at the capacity of 30 GWh , it can be business ranging its revenue from INR 18,000 crore -INR 20,000 crore.
Okay. Sir, currently, do we have any orders for this segment?
We are starting to receive orders. Those order sizes are small, but we continue to build the order book. We are in discussion with multiple large clients in India overseas for long-term offtake agreements.
Okay. Sir, thank you. All the best.
Thank you.
Thank you. The next question comes from the line of Abhishek Kansara from Axia Asset Management Private Limited. Please go ahead.
Hi, sir. Thank you for the opportunity. My question will be on the line of inverters and transformer-
Sorry, we can't hear you.
Hello, am I audible now?
Yes, it is good.
Yeah. My question would be on the inverter, transformer, and the electrolyser capacity that we are coming up in this year. What sort of revenue and margins can be there from these three business?
Total, these three business put together, we have committed capital of roughly around INR 1,200 crore in transformers, electrolyser, and inverter. Inverter has already started 4 GW production. Transformer also, the existing asset has started production, and the incremental capacity will also go live by March. Ballpark revenue from these three units and products put together could be around INR 7,000 crore-8,000 crore. EBITDA margins are different in these three streams. For inverter and for transformers, we are expecting EBITDA of around 18%-22%. For electrolysers, the expectation is around 13%-14%.
Okay, that answers my question. Thank you, sir.
Thank you.
Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question- and- answer session. I now hand the conference over to management for closing comments.
I will just add one point. Across the board that we are seeing a lot of industry questions, how industry structure is changing or evolving. I think one thing is very clear. Driven by regulations, driven by operating efficiencies, any player with maybe less than 10 GW scale or sub-scale, not having backward integration, not having horizontal integration, is poised to, I would say, not be well-positioned for future. With for now, ingot and wafer policy coming, the CapEx per gigawatt of ingot wafer is very large and minimum capacities of 5 GW or 10 GW in ingot wafer. So very few players will be able to, and industry will consolidate, look at consolidation over the next two, three years. But over to you, Jignesh , to add more.
Thank you, everyone. Thank you so much. Keeping the first Waaree and let's achieve the goals. Thank you.
Thank you. On behalf of Waaree Energies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.