Thank you very much, sir. Ladies and gentlemen, we will now begin the question-and-answer session. The first question is from the line of Rohit from Axis Max Life. Please go ahead.

Thank you for this opportunity. First of all, congratulations on a very strong set of results. My question is more to do with an EBITDA per watt in DCR and non -DCR modules that you do right now. How has it fared in this particular quarter, what is the trend, and what is the outlook over there?

Yes, thank you for the question, Rohit. I think an EBITDA spread in both non -DCR and DCR have been in line with what we experienced in the previous quarter, which is also , reflecting from our EBITDA margin as well. And, going forward also, we are expecting a stable kind of a scenario, and that is what is reflected as of now.

Okay. My second question is more to do with the capacity expansion plans, like 6-gigawatt integrated cell plus module, where you have stated that the module plant will be operational by Q3, and you want to expedite even the cell plant before the beginning of FY28. So, when will the order booking start and what should be the quantum jump in order backlog or order inflow one should look at? Will that be a right indicator to say that the things are getting commissioned on track?

See, order backlog is something that we've already started seeing expansion of, and that is in tandem to our increasing growth as well. Today we have an order inflow of approximately 1,500 megawatts in Q1 and an order book of approximately 10 gigawatt. So, with that, we are looking at approximately 7 plus gigawatt of orders that are to be executed in the next 18-months’ time frame. So that is quite in line with our expansion plans as well and we have already started to see that.

Okay. And my final question is more to do with the wafer ingot backward integration. You have stated that the rollout will be in two phases. Is the Board approval done , and will we hit the ground immediately or are we waiting for some sort of a procedural step ahead?

There's no procedural steps, rather like the timing that we have planned the commissioning is by mid of calendar year 2028. So, that does not require such early actions to our understanding. That is something in line with what we are planning , because it's quite clear that our priority right now is expanding the cell and module, and ingot and wafer is something that we are adding in calendar year of 2028. So, we will take the actions accordingly.

Thank you. The next question is from the line of Subramaniam Yadav from SBI Life. Please go ahead. Subramaniam Yadav: Thank you, sir, for the opportunity. Sir, if you can give us a trend or the number in terms of gross margin spread, because we have the production number , and if you can give us gross margin spread on the sales number, that would be helpful.

Thank you for your question, Subramaniam. So, I think, like we've been guiding more or less on the EBITDA spread rather than the gross margin spread. So probably for the sake of clarity and understanding the trend, we'll stick to an EBITDA per watt. And EBITDA per watt, I think what we had guided is around INR 2.5 per watt for just module, and for the cell it is of INR 6.00-6.5 per watt. So, I think that is something that's in line with the current trends also. Subramaniam Yadav: Did it move from Q4 to Q1?

Not much. I mean, it's in the similar range, if you see that. Subramaniam Yadav: Okay. And, sir, on the overall mix of DCR and non-DCR, how was it in terms of sales?

This time the DCR non -DCR mix have been healthier on the DCR side, which is reflected in our increased margin percentage as well. So, we have done, I think over 50% DCR. Subramaniam Yadav: Okay. And sir, how is it likely to be ahead in next couple of quarters?

Looking at our module to cell capacity difference and the market scenario, there will be more non- DCR module than DCR module, but it's not going to be as very different as, we have some comfortable DCR inventories that we intend to use in these coming quarters. Subramaniam Yadav: Okay. Okay. Thank you, sir. Yes.

Thank you. We'll take the next question from the line of Prakhar Porwal from Ambit Capital. Please go ahead.

Thank you for the opportunity. Sir, just one question, after 1st June, how has been the C&I demand in terms of ordering order inflows, and also any, I understand you have mentioned that from Q4 to Q1 the margins have been stable, but in terms of new orders which maybe you'll execute the next 6 months or 12 months. Are you seeing margins increasing again because of some tightness from the solar cell side currently? That is the question?

So, thank you, Prakhar, for your questions. On the C&I demand order inflows, that's something that we've already started seeing, but the supply of it is something that you should expect towards later part of this financial year and not immediately. But this is the movement that we have already started seeing in our order inflows. And when it comes to the margins , we've been in a similar state of margin per watt peak, like I said, both in DCR as well as non-DCR cells in the Q1. And what we are seeing also is like , there could be a slight better, there could be some slight improvements in the DCR side, but I think it's not something to consider, rather just assuming the stable level of margin more confidently is something that you should take from this.

Sure. Just a follow -up on that because I was hearing some news about C&I players specifically in Karnataka requesting the state to push back the deadlines given current unavailability of DCR modules. So anything given you're based in Karnataka, anything on that also or is the availability in terms of DCR modules totally there and those are just rumours, anything on that?

See, I mean, it's important to recognize that the ALMM implementation is coming in a phased manner. And I think companies like Emmvee are equipp ed in that kind of phased manner to be there at the forefront of the industry with the expertise that we have for the last more than two years of TOPCon cell manufacturing capability to deliver the requirements for the demand. And I think the government is very clear, in fact, their intentions and discussions are now started, are now, we are all looking at the ALMM 3 rather than looking at ALMM 2 anymore. So I think this is something that's already happened and now we need to fo cus on how do we bring in the ingot and wafer and ensure that it is done.

Sure. And on the current capacity of 2.9 gigawatt, can we expect more run rate increase going forward? So let's say 450 going to 500, 550 kind of number? Because I understand the capacity is at 11 watt peak, 710 watt peak modules. So just before the new ca pacity comes in, can we see more increase in the run rate production?

Yes. Absolutely. That is something that you should expect to see in these coming quarters.

Okay. Sure. Thank you.

Thank you. We'll take the next question from the line of Apoorva Bahadur from IIFL Capital. Please go ahead.

Thank you, Suhas ji, and congratulations on another strong quarter. I just wanted to check, in our sales mix, have we also sold cells or have we restricted ourselves to selling DCR and non-DCR modules?

Yes, thank you, Apoorva ji. Yes, our sales mix also includes merchant cells sales.

Okay. And is that a meaningful number or is it very small?

It is an increased number quarter -on-quarter or this thing, probably the highest we have also done in the history of Emmvee also. So, I wouldn't say that it's a dominant number, but it's a meaningful number.

Okay, okay. Understood. Secondly, I when I see the financials, I see a sharp quarter -on-quarter drop in the cost of raw materials consumed, about 18% -19% Q-on-Q, while the production has increased slightly. What is leading to this sharp decline in cost of raw materials?

Yes, so see, there are a couple of things. I think maybe I'll let Pawan add in. But here the couple of things are that the mix of DCR and non-DCR, when it becomes healthy on the DCR side, you will see the COGS being much better. And two, like I said, there is also cell sales that is involved in this quarter. So that is also a reason why you should see the absolute COGS also being lower compared to the previous quarter.

Okay. So is this trend sort of expected to continue in future quarters as DCR sales pick up even further, or do you expect this to be a one-off thing?

No, this purely depends on the mix of the DCR non-DCR and the cells. So, I think accordingly it could change. So that should not be a guidance that should be taken out of that.

Okay, understood.

But the understanding is that if the mix were to be same, then yes, it will be similar. I don't see it changing a lot.

Okay, okay. And in last quarter, I recollect there, we had a discussion about the inventory position. And so how is it at the end of this quarter? Are we seeing a wind down of inventory or it's still at similar levels?

Yes. if you see in the P&L, the change in inventory, which is of finished goods because the production was high, so some inventory has been added . but otherwise, barring these INR 74.25 crores of the addition to inventory, it is in line with our current level of operations..

Okay. And are we expecting, sir, this inventory to wind down in future quarters, next 1 or 2 quarters, or do we expect to carry this type of finished goods inventory into FY27?

With the healthy order book and we added another 1.48 gigawatt of additional order, so this will help us to liquidate the inventory also, both in terms of finished goods and raw material. Inventory will also be used to have an improved production to meet the target orders.

And added to that, this quarter we have strategically kept little more raw material inventory. Reason being the geopolitical issues what is taking place.

Okay, Understood, sir. And sir, lastly, I think on the availability of silver, I think government had imposed some sort of restriction on import of silver. Do we -- are we facing any challenges because of that, either in terms of securing the raw materials or in terms of the pricing in India?

This is a good question. So, we are not facing any difficulties. It is only the procedure which has been introduced. So, what we have to do is now we have to apply well in advance to the DGFT for what is the import quantity we want to bring it. Then accordingly they are giving approval to the import. So what Emmvee is following up is that three months inventory what we require, we are applying and we are getting the approvals in time. And last, by the time of introduction to till date, we have not faced any difficulties. As soon as we are applying, within 3 to 4 days we are getting the approvals.

Okay. And sir, is the pricing in line with the global price or is there a premium in India in the retail or a spot market?

No, it is imported only, so it is in line with the earlier prices. There is no changes because silver paste still, we have largely depend on imports.

Understood, sir. Thank you so much. I'll get back in the queue.

Thank you. The next question is from the line of Sahil Jinesh Seth from Anand Rathi Institutional Equities. Please go ahead.

Hi, sir. Thank you for the opportunity. So, sir, just following on a previous question, you said the finished goods inventory was increased in this quarter. But if I were to look at the DCR number from the DCR portal, the module manufacturing and sales da ta arc is quite in line. So would it be fair to assume that the slower off -take is only in the non -DCR segment and not as much as in the DCR module segment?

No, this is not the offtake; the non-DCR normally we produce based on the orders we have in hand and the execution of the same. The pick-up for this particular quarter is not executed fully in the last month of the quarter because of LC establishment and other things, which is going happening this quarter

This is as per the normal cascading that would be expected.

Because of some rains in those areas, they are not able to pick up the materials.

Okay, sir. And sir, my second question would be, when you previously mentioned that the 50% mix was DCR, does that only includes DCR modules or it also includes your DCR cells in that mix?

Both included.

Including both. That was helpful. Thank you, sir.

Thank you. The next question is from the line of Karan from Niveshaay. Please go ahead.

Yes, thank you for the opport unity. So wanted to understand like we have a 50% mix in revenue for DCR. Now is it similar in our order book as well?

There has been more and more increasing DCR in the mix of order book, but there is still a good non- DCR portion as well that is there. But yes, it will be around the similar levels.

Understood. And what would be our blended realization for modules currently?

Realization for module in the last quarter was I think around 15 -16 cents in the non-DCR.

Does it increase for us because we sold more DCR modules this quarter?

Yes, there is a small increase about INR 1,

Understood. And one last question, what would be our peak utilization that we can achieve in modules and cells and when are we expected to achieve for the current facility?

Peak utilization for cell is around 85% to 90%, which we are already close to that. And with respect to modules, it will be about 65%. But with cell, as we are transitioning to G12R, the overall effective capacity is also going to increase. So, you will see a higher production volume even though the percentage could remain similar.

We have started this thing, and partially completed the conversion, and the remaining we will convert sequentially.

Understood. Great. Thank you so much and all the very best.

Thank you.

Thank you. The next question is from the line of Meghana from Old Bridge Capital. Please go ahead.

Just a follow-up to the original question. What -- in the coming quarters, what is the module utilization that we expect and when?

I think you can take it at on a base case at similar levels. I think that will be a fair assumption to take it.

Okay, got you. And any colour on when do we expect to achieve the 65% level?

We expect to continue increasing production volumes. However, rather than providing guidance on volumes, we have to provide guidance from an overall EBITDA perspective. We are targeting approximately INR 2,400 crore of an EBITDA by the close of FY27. Accordingly, we should also see increasing levels of utilization across both our module and cell manufacturing capacities

Got you. Thank you.

Thank you. The next question is from the line of Karan Gupta from Asit C. Mehta Investments. Please go ahead.

Yes, hi. So my question is on the capacity utilization of cell. As you look at the previous quarter's numbers -- a couple of quarters ; the cell capacity utilization is improved significantly from 50% to 83% if you compare Q4 FY25 and your EBITDA per watt is more or less the similar in line. So my question is on we are not getting the, backward integration benefit plus the utilization benefit in our EBITDA per watt numbers?

No, you are getting it. On per watt number you will not get because it's again if your utilization is going up per watt, your production is going up, but mainly it's the ramp up of efficiency and the raw material consumption that's happened. Also, absolutely you can see that our module production has also gone up. So on blended basis it will be difficult to measure that.

But if you calculate cell to module ratio, which is if I assume let's say your cells 100% cells are going into your modules -- whatever the cell number you produced, 100% is going to the module side. So which is in line, I mean 45% to 46% historically in couple of quarters. So this is the number same, but as the capacity utilization is increasing, so the benefit of backward integration plus the benefit of your capacity utilization, which is operating leverage, should come into an EBITDA per watt numbers. What's your view on that?

You can see the other operational improvements on these lines.

One more thing, if you see the previous quarter EBITDA margin is around 32.84% and this quarter is 35.2%. So, this is also because of the mix that we are getting benefit of a domestic cell produced, so that is also getting reflected in the EBITDA margin.

Okay. What's the number of cell you are selling to outside or to the merchant and what is the in-house?

We are not disclosing the sales mix of our cells, modules, and DCR non -DCR. There has been a significant increase in cell sales this quarter. So the understanding that all the cells that we make are going into our modules is not correct, rather there is a mix of both we are selling separately as well as we are using in our own modules. So that is why it will be difficult for you to look at it on an EBITDA per watt peak on a blended basis, it is something that has been reflected in the financials.

Okay. So in cell capacity we are seeing the operating leverage part when we are selling outside EBITDA per watt standalone basis for the cell capacity. So we are seeing the operating leverage part playing out in the cell part?

What was the question?

So for the standalone cell capacity utilization as it is increasing, so for EBITDA per watt if you just calculate for the cell portion, the operating leverage playing out when you're selling into the outside market and consuming inside?

No, see, it's not that thing. We have to be also aware that the changes in the raw material prices, either the silver paste or with respect to increase in other raw materials are not reflected where the EBITDA per watt peak is going down. And this is happening only because of increased operating leverage and efficiency. Because our consumptions have been more streamlined, our operating efficiencies have become better, efficiency of the cell has become better, and the consumption has become better. So that is why you're able to see the stable EBITDA per watt irrespective of the increase in other headwinds that we are seeing.

Okay, okay. So for cell we are getting better realization in the outside market?

No, realization for cells has been quite stable, so has been module, so has been DCR and otherwise. So, realizations have been quite stable. It's in line with the movements in your commodities.

So could you please put the number?

Mr. Gupta, I'm sorry to interrupt you. Sir, I would request you to kindly re-join the queue for follow- ups. We have a queue here, sir. There are others who are waiting for their turn.

Got you.

Thank you so much, sir. We'll take the next question from the line of Dhruv Muchhal from HDFC AMC. Please go ahead.

Yes. Thank you so much. Firstly, on the non-DCR cell-based modules now, at least the news flows are suggesting that the market has become more limited now because the C& I -- at least the C& I market has shifted to the DCR cells now and also rooftop anyways was. And probably there could be some margin compression in the pure module business. But based on your guidance, it seems that is not the case. So, just trying to understand the guidance that you're giving INR 2.5 on modules EBITDA, is that the blend of DCR modules with non-DCR modules or just the non-DCR modules?

No, there has been see, sir just for clarity, I think that there are markets operating at different places. But it's important to recognize that there is only limited supply that has been always available with players who have the bankability and credibility of supplying to the IPPs of both C&I and developers. And today whoever has the grant for the projects are the very serious IPP players. So there what happens is the operating leverage of these here what happens is that the selection of quality, stability and bankability becomes extremely crucial. So at that point players like Emmvee are at the forefront of that. So for us it's very clear that choosing our markets, choosing our customers in terms of without letting go of the bottom line is something that's been very important to us. So making that reasonable return even with lower utilization is rather better than making a higher utilization and lower margin. So that's the philosophy we've been following.

Got it. But purely on modules, based on your level of volume that you expect, basically, I don't know, I think 50% or 60% utilization on the capacity of module, you believe, despite the change in the market structure, but because of your positioning, you will be able to get to that INR 2-INR 2.5 EBITDA?

Yes that should be in that range. Yes, absolutely.

Sure. And sir secondly, just to reconfirm, the sell pricing, for example, the sales that you sell, they are based on dollar pricing, they're not based on INR pricing, right?

Yes, correct.

For example, whatever you sell to the rooftop market or the KUSUM market, whatever, or C&I market that all happens in the dollar pricing based?

Correct.

So the dollar changes which probably has some implication on your input pricing, but to a large degree, it gets off settled because the selling price is also in dollars?

Yes, yes, that's correct.

Sure, Sure. Okay, sir. Great. Thank you so much and all the best. Thank you.

Thank you. The next question will be the last question for today from the line of Dhaval Popat from Choice International Limited. Please go ahead.

Thank you so much for the opportunity. My question is just regarding particularly passing of the raw material cost. You did say that that it moves in line with the commodity, so is it fair to understand that you are still able to pass on the raw material or at least certain part of the raw material cost to the customers? Like for example, silver fluctuated so much, so were you able to pass on these costs or how should we read this, if you can throw some light on this, if possible?

Yes, this we have answered even in the last time also. See, pass-through will be done in two ways. One is we'll do value engineering in the production. If that is there, we'll not pass through to the vendor if we are able to make it within in line with our margins. If not, yes. That's why if you see the change in the prices will be there, that's why we always say absolute number of an EBITDA will always consider, not on the percentage. Percentage may vary because if my price is high, the percentage will come down, if the price is low my percentage will go up. But my absolute number will remain same.

Okay, okay. That is helpful. And I'm sorry if I missed this, but there was -- should we expect that given prices decline, could we expect recurring inventory losses or that would not be the case or how do you plan to protect against inventory losses particularly?

There is no decline in the prices that what we said in non-DCR we normally produce based on the orders inflows only and which is already covered by the advances and the LCs. So, which doesn't have any effect. And DCR market you know that there is not going to be any change as of today. So as of now, we have not impacted anything on the price variations because we strategically, even if you see in the earlier three-quarter calls also we made it very clear that we normally procure raw material based on our inflows of orders.

Yes, okay. Thank you so much. I hope we can connect offline as well because we are looking at this company. Yes, thanks for the opportunity. I’ll connect offline.

Thank you. Ladies and gentlemen, we'll be taking one more question for today from Gaurav Birmiwal from Axis Mutual Fund. Please go ahead.

Thank you, sir for the opportunity. I just had one question. So, you did elaborate on how the margins are split, but just for my understanding, let's say if you produce and sell cell itself separately, how much margins will you make there? Let's say second case which is you produce the cell, you convert it to modules as well, how much are the margins there? And third is of course the non-DCR wherein you buy cells from, let's say China and then you convert it to modules and sell it. So, what will be the margins in each of these three cases?

Yes, thank you, sir, for the question. So cell like we said non-DCR module is about INR 2 to INR 2.5 per watt and then the cell is about INR 6.0-6.5 per watt. So, DCR module is usually INR 8.5 to INR 9 per watt. So that's pretty much like you either sell separately or you sell together, it's pretty much similar kind of margins.

Understood, sir. Very clear. Thank you.

Thank you. That was the last question for today. Thank you, members of the management. Thank you once again for your time and participation. On behalf of Emmvee Photovoltaic Power Limited, this concludes today's conference. For any questions, please feel free to write on the email IDs mentioned on the invite. We appreciate your engagement. You may disconnect your lines now. Thank you so much, sir.

"This transcript is an edited version of the conference call recording and has been prepared for ease of reading and clarity. Certain immaterial corrections, formatting changes and corrections of obvious transcription or numerical errors may have been made , without changing the overall meaning. Readers are advised to refer to the audio recording and the results filed with the stock exchanges for full details, and the company accepts no responsibility for any remaining errors or for any decisions taken based on this document.”