Emmvee Photovoltaic Power Limited analyst Q&A

Thank you very much. We will now begin with th e question-and-answer session. Our first question comes from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead.

Hi, hope I’m audible. Just maybe one particular thing I just wanted to check on the 6 gigawatt integrated cell and module capacity expansion. We understand we have the land and the loan sanctioned, but what sort of the progress on ground and by when do we see the module line coming through and when do we see the cell line kind of coming through? So, both timelines of that. And now that ingot-wafer has been announced by 1st June 2028, what is the quantum of capacity that we’re sort of evalu ating to put? If you could sort of answer those questions, I’ ll come back with a couple more?

Sure, thank you for the question, sir. So, with respect to th e current expansion plan of 6 gigawatt integrated capacity. We have progressed where our construction has started and order for module line has been finalized. So, it is in line with the planned progress of the project and we expect to see the module line getting commissioned by the end of this calendar year and the cell line getting commissioned at the end of this financial year. And with respect to the ingot and wafer, it’s something that we have always planned and our intention has been very clear with fully backward integrating. And with that, we intend to set up an ingot and wafer facility of about 9 gigawatt integrating us fully in phases. And we plan to set up our first facility in FY29.

Sure. If you can sort of at least quantify Phase 1, how much is the amount of that a nd second just wanted to check on the working capital also. So, we have seen that advanc es have gone down and inventory -- inventory receivables have slightly gone up. So, is this the new normal like about 70 days, 80 days of sales with lower advances? Just wanted your thoughts on both this Phase 1 of wafer and as well as the working capital cycle that you note?

Sure. So, with the ex pansion, we’re looking at a 5 gigawatt expansion in Phase 1 and a 4 gigawatt expansion in Phase 2, which is going to be a year after. So, that is how we have planned the wafer and ingot expansion. When it comes to the working capital cycle, we have experienced phenomenal growth in our capacity as well as our execution, if you see in FY26 we have doubled our module manufacturing capacity and doubled our revenue . So in line, we have grown the inventories. And with that, both the inventory receivable cycle has moved in line with the business that we have g ot in Q4 2026. So, I think this -- the number of days calculation should start seeing nor malized as we don’t have any further new expansion coming up in the coming quarters.

Sure. Maybe just one final question. Just wanted to check on the outlook for demand. You have about 40% exposure to IPP, about 30% to C&I. Now, IPP, we’ve heard Adani Green and we’ve heard some news about solar curtailment, but also on the other side C&I before 1st June they can do DCR and there’s demand tailwinds for Surya Ghar as well as KUSUM. So, maybe just your outlook on all the four segments that you are seeing. We obviously know the go vernment targets. So any update on all the four segments, especially IPP if you could sort of add any more insights?

So the demand outlook for a manufacturer like us has been strong. You can see that our Q4 inflow has been strong as well to the extent that we required. And C&I has always been the fastest-growing sector in a long time, which you can see is similarly growing in our case as well. And with ALMM List 2 coming into effect, that is only going to put a company like Emmvee with an existing cell capacity at a better position to leve rage this situation. And similarly for the IPP demand also, where ALMM is going to come into place, expected to come in the financial year of 28 or late 2027, we are well - positioned to cater to that demand.

Sure. Those are my questions. Best of luck for future quarters.

Thank you. Your next question comes from the line of Apoorva Bahadur from IIFL Capital. Please go ahead.

Hi guys, thank you for the opportunity. I wanted to ask you two questions. One was on the capex this year. We can see in the cash flow statement that I think you have spent almost INR650-odd crores on capex. If I look at your gross block, I think it has increased by about INR1,000 crores, adjusting for the government grant. Can you bifurcate this where has this capex been spent between module and other stuff?

So, during the year, we have commissioned two module lines, Unit 5 in May and Unit 6 in December. So, largely this is capturing the capex of these two module production lines. And rest, land if you see almost INR 311 crores was the land acquisition for the expansion project. And the rest is other capex for the expansion project.

Okay, so INR300 crores for the -- for land for the next for the cell plant that has been expensed this year. Understood. Sir, also wanted to touch a little bit more on the working capital position, especially on the cash generation. We have seen your profit increase materially and it’s commendable. T he profits, I mean, operating profit has increased from INR750-odd crores to almost INR1,800 crores, so it’s more than a INR1,000 crores jump. But when I see this after adjusting for the wor king capital movement, there is -- there has been a decline from INR625-odd crores to INR200 crores. So, I want to understand two things. One is on the inventory front. So, why is it that the inventory has built up? Is it a timing issue? And by when do we expect this to be cleared out? And secondly, should we expect it to result in some sort of a r eduction in production going ahead or will it be managed at the current utilization rates?

So, if you look at the working capital requirements, largely as you have pointed it out correctly, our buildup has gone into inventory and the bu siness operations. But when you look at the Q4 revenue itself, it is INR1,700 crores compared to Q1 where we did about INR1,000 crores. And if you look at the previous year Q4 quarter, it is even lesser. So, when you look at that kind of a growth that is seen, the w orking capital, the inventories -- our inventory what is the level that is there, it is at the level that is to service the current run rate of revenue and production that we’re doing. For example, if you look at the module production, module production we have in this particular quarter. We have produced almost 1 gigawatt module production compared to what and cells of about half a gigawatt compared to 50% of what we used to do earlier. So, this is the scale of ramp-up, so naturally both on the raw material and finished goods side, it has increased to that extent because this has come with added capacity increase.

Okay. And also in your P&L, I see that this changes in inventories of finished goods, it has been a negative number and in FY26 it was quite material at INR636 crores. 25 it was I think INR115 crores, INR116 crores. Can you help us understand why is this increasing and why is it such a large number? What really caused this?

So, the change in inventory basically that this is reflected in t his particular FY26, is INR636 crores. So, basically, we have added the inventory from the production. So, the total cost of material consumed is INR3,411 crores. Out of that, INR636 crores has been produced and we have added to the inventory of modules and cells. So, this is the reason that and as Suhas also mentioned that my current level of inventory, both finished and raw material, is reflecting the current operation which we’r e having in March compared to the previous quarters.

Okay. So, next year we should expect this to reverse as we liquidate the inventory. Is my understanding correct, sir?

So, largely I would say that yes, with this current level of inventory, it’s justifying the current level of production and sales. So, we will be mostly either maintaining the same level of inventory with the current level operation till the new expansion coming up or possibly some improvement in inventory level that we will be using the current inventory to convert into the production and to be more mindful in having the new inventory till we consume the existing inventory of especially the raw material.

Okay. Understood. And last question, I see -- if I look at the DCR portal, our production for cells in April appears to be a little bit lower trending. I know it’s not for the full month, probably it’s for three weeks of April. But on a run rate basis, is there, I mean, have you taken some sort of a maintenance in the plant or what’s the reason for this?

No, we are continuing the production normally and I think updation normally they will do in the end of the month or beginning of May. So, updation will not happen in a day -to-day way. It’s not real - time data what DCR portal is showing.

Understood. Thank you so much.

Thank you. Your next question comes from the line of Prakhar Porwal from Ambit. Please go ahead.

Hello, am I audible?

Yes, sir, please go ahead.

Yes, thank you for the opportunity. Sir, just again sorry for hopping back again on the working capital thing, but you explained on inventory. On advances from customers, because given your order book has remained afloat at 9.3 gigawatt, 9.4 gigawatt and almost 1 gigawatt, 1.2 gigawatt of order inflow, so any reason why advances have come off in this quarter? That is one first question?

Yeah, I think that’s a good question. So, basically, advance from customer what happens is, time it depends on the business call what we take. Sometimes advances are taken in the form of LC, which is not usually reflected in the advance from customer part in the balance sheet. So, we take LCs a nd sometimes we take a decision. S o it is not really the exact idea of what exactly is the advance, the security that we have from the customer.

So, just to add what Suhas has mentioned, that in FY25, we have a advance from the one of the large customers, which was a large advance we had and against that , this year because that was very large order was completed, so that advance had got adjusted and that’s the reason now this year the advance is much lower. There was a single largest order with advance of almost INR320 crores received during FY 25.

Understood. INR320 crores is the figure that you said?

INR320 crores is the figure that you said for the advance?

That we had received that time, during FY25.

Understood. And just one more thing on the 4.5 GW cell order that you’ve received to be executed in the next three-four years. On that also you would have received advance for the entire 4.5 GW or will it happen according to your delivery schedule?

So, we’ve received an advance for the contract full order, and we’ve already started supply for that.

Understood. And my second question is, if you see even in FY26 also, your volumes of DCR modules, given largely we have been more on the utility and C&I side, so and our external sales of solar cell is very less. So, where are we selling? Is it on the retail segment in PM Surya Ghar and KUSUM or , I mean, just wanted to understand our customer segment in the DCR modules right now.

Sure. So, in the DCR modules, our primary segment is PM -KUSUM and KUSUM primarily at KUSUM C, which is a component which plays a, like, you know, which is adding a large installations, and Surya Ghar being the primary demand factors for us.

Sure. And just last question, if you can throw some light on the inter -segment eliminations? They’ve increased this quarter quite significantly, so wanted to understand the accounting and how it is worked out.

Inter-company eliminations, right?

Yeah.

Yeah. All expansion has been tak ing place in Emmvee Energy, i.e., the subsidiary of the company, and some orders we have also taken in Emmvee Photovoltaic, which is the holding company. So, considering execution timeline and the raw material availability, there is an execution of the order by subsidiary company for the parent company or vice versa, that is where you see the elimination.

Okay, because of different subsidiaries when you transfer your raw material from one side to another?

Yeah, yeah, you’re right. I mean, basically, it’s like, you know, we have two , companies basically, one, is the parent and other is a subsidiary where both have manufacturing capacities and one has cell manufacturing capacity. So, there will be some inter -company movement in materials. Yeah, but it’s all within the, the group.

Sure. Thank you so much. Those were my questions.

Thank you. Your next question comes from the line of Nidhi Shah from ICICI Securities. Please go ahead.

Yeah, thank, thank you for the opportunity. My first question is whether at this point do we supply modules to any other countries, US or otherwise, or do we plan to do that in the future? Do we have access, you know, to be able to supply to other countries?

So, yeah, I mean, so with US, we right now, like, you know, FY 26 we had zero exports. And as a company, we’ve been quite agile with our markets of choice. We have had a time of 100% exports in our, in the initial phase of Emmvee as a module manufacturer, and then we scaled it down and then we shifted markets from Europe, US, and then India. So, thing , so we’ve been very agile with that, and we have teams that are actively looking for markets, looking for opportunities. But exports are treated as an upside for us rather than the core part of our business in the current scenarios.

All right. In addition to that, do we, so my understanding is that we do not have any export orders in the order book at this point, right?

Correct.

So, to be very candid, I mean, other than China, yes, all other regions is something that India can compete with and we can, like at Emmvee we are very much geared up with the cost competitiveness. When it comes to technology, product quality, or preference of the customer, there is no doubt or anything about the capability of either Emmvee or as an Indian manufacturer. We are v ery much competitive and welcomed in many parts of the world.

My actual last question on this would be that as the US is and a lot of other countries are moving in a way that outside of the cell as well they require non -Chinese components within the entire module. So, is that something that, you know, do we have acc ess to non-Chinese solar glass, junction boxes, and wafers? Is that , is that sort of a line of supply that we’re actively looking at building, or is that something that is not required at this point in time?

No, we have, we already have an existing supply alternate supply chain to China in every material that we use. And there are many materials we are already, like, you know, buying locally or moved out of China as well in terms of, in the interest of diversifying our supply chain. And similarly for the purpose of US or other countries where they require non-Chinese ownerships also for raw materials, we have a very resilient supply chain available which is not Chinese-linked.

All right. And on, on the capacity, the FY 28 target capacity, the cells are 9 GW whereas the module is, 7 GW more than that. So, my question here is, is this 7 GW an older capacity of Mono PERC that we’re eventually looking to retire, or is it that we’re looking for a higher module capacity over cells as perpetuity?

So, we don’t have any Mono PERC capacity; all our capacity is TOPCon and latest. But the difference that you see between module and cell capacity is that typically what happens in a module line, the actual or maximum utilization that we can achieve is to the extent of about 65% to 70%, whereas in cell you can achieve up to like 90 % to 95%. So, with this logic, our module capacity is intentionally kept higher than the cell capacity to effectively achieve the similar production in both modul e and cell.

So, is it like a sizing issue because we’re seeing a lot of other peers have, you know, utilizations of up to 80% or 85% in module? So, is this something that is specific to the machinery that we are using or the sizes that we are providing?

No, so basically what happens is, like, you know, when , in a typical module manufacturing business where you’re servicing many IPPs and like, you know, large developer customers, what happens is , there is a lot of requirements that are unique to each customer. It could be a different testing standard, it could be a different material, like cable length for example. So, what we have to do is we have to flush out the lines, they have in-line inspection, and then we have to do the line after that because it’s an in-line production module. Whereas cell is a batch production and it’s made to stock; module is made to order. So, that is why you see that typical difference that is there.

And also added to that point, What Emmvee is very clear, what the capacity of the machines able to produce is the capacity what has been declared. That 10.3 GW what we are mentioning is the capacity for producing G12, that is the combinat ion of the module where the 720 W peak of the module is produced..

All right, all right. Thank you so much.

Thank you. Your next question comes from the line of Abhi Sehgal from Singularity AMC. Please go ahead.

Congratulations, sir, on a great set of numbers. Sir, two questions from my end. Sir, ALCM comes in in June 2026, so just wanted to see how as an industry and how as Emmvee are you preparing for that? Are you seeing any difficulty in orders or are solar cell plus DCRs pricing going up currently?

So, for us being a , having our own cell capacity, it is something that we are welcoming , like, you know, quite well. And if you see the transition that there is, it is a phased transition where C&I and first the utility, all demand other than the utility demand will come into the ALMM List too from June 2028, June 2026. But your utility demand for projects that were bid after August 2025 is going to come in. So, it is going to, it’s a phased demand, and that is something that we are prepped up for and that is something that we are looking forward to.

Sir, and are you seeing any increase in DCR pricing happening given there is only limited capacity of solar cells in the market today?

I mean, as of now, I’d say that it’s quite, the pricing is quite similar, resilient. I’m not seeing that kind of a upward pricing as we speak.

And sir, just last, what is the average pricing for DCR today, sir, and for non-DCR, if you could share that?

So, for DCR module, it is about INR21 to INR22 on a watt, and module is around like INR14 to INR15 per watt.

Thank you, sir. Thank you.

Thank you. Your next question comes from the line of Kunal Shah from DAM Capital. Please go ahead.

Yeah, hi, sir. A couple of questions. So, one, in terms of, you know, in the last quarter we had mentioned that the DCR mix is around 40 -odd percent. What would be the exact mix between DCR modules, non-DCR, and cells for this quarter? Hello?

Just give me one moment, Kunal sir. Management, are you able to hear us? Ladies and gentlemen, the line for the management seems to have been disconnected. Please stay connected while we reconnect the line to the management. Ladies and gentlemen, thank you for holding the line. We have the management reconnected with us. Yes, sir, please go ahead. Kunal sir, could you please repeat the question once again?

Yeah, so sir, just a couple of questions. One, in terms of the mix of business, last quarter we had mentioned about 40% DCR. For this quarter, could you just give us the exact mix between DCR modules, non-DCR, and cells for this quarter?

So, I think last year, last year whatever I was, mix I explained, I think it was not a mix that we usually don’t give out. It was inferred from the production number that was showcased. So, even this time if you look at the production number, our module production with adde d capacity has increased to 953MW. With that, we are looking at like you know, a mix of between 30% to 35% of DCR.

30% to 35% for DCR, right? Got it. That’s helpful. And sir, in terms of just a follow -up on this, how would this mix look like for FY27, FY28? I mean, if you can give sort of an y ballpark guidance on the same?

For the most part of FY, for the first three, first two, three quarters, I don’t see much difference because our capacities are added similarly, like, I mean, we don’t have any incremental capacity that’s coming up in module. But going forward, there could , like, you know, in during , by the end of , by the beginning of next year, it will be more or less all capacity that we sell will be DCR.

Got it. And now, coming to cell utilization, sir, when would we be seeing the transitioning from M10 to sort of G12R cells ? Just to utilize the capacity in a much better way? Because, you know, even when we are looking on an M10 basis, our utilization keeps hovering between 70 % to 80%, s o, can we see that crossing 80%? That’s number one. And two, you know, when would we finally see that transitioning to G12R cells?

Yeah, so firstly, like, we have already achieved 80% in Q4, and actually if you look at our March numbers, we have also reached 85% in cell utilization. So, I think we , we are confident to keep that, you know, around the similar levels. And transitioning to G12R, yes, you know, our plans are in and our capability is there. It’s only tha t we have an order book for M10 out that is lasting until end of March, end of May, and we, we are looking to transition in this by the end of this quarter.

Understood. And Sir, in terms of balance sheet, now we’re just trying to understand, so obviously we have roughly give or take around INR4,800 Crores of capex spending on the 6 GW integrated line, INR4,500 crores to INR4,800 crores. And then, you know, you highlighted about the ingot -wafer as well, right? So, one, so you mentioned about 9 GW, but can we expect around the similar levels of cell where, you know, we’ve been incurring some INR700 crores to INR750 Crores per GW for the ingot -wafer as well? That’s one. And how are we looking at our balance sheet shaping u p? I mean, given the 6 GW integrated line as well and then 9 GW of ingot wafer as well? So, yeah.

So, yes, wafer, ingot wafer we’re looking at around INR600 crores to INR700 crores per gigawatt. That’s going to be the capex that is require that would require. And our balance sheet, as you see, like, you know, our quarter numbers, our earnings has increased, our execution has improved. So, I think this is something that we are looking to maintain in a strong way. And even for the further ingot-wafer expansion, the whatever, you know, debt or any equity needs to be there, we are very cognizant that we’ll keep it within one the debt-equity ratio.

Understood. Got it. And sir, just lastly, if I may ask one question. So, on a spot basis, like, you know, versus the margin that we have seen in FY26 across, you know, non-DCR, DCR, cells, on a spot basis, looking at the commodity inflation wherever it is and looking at the realization, how are the margins shaping up? Like, if you were to pick up orders today, how would how different that would be versus let’s say FY26 margins? I mean, like are we seeing a major impact on non -DCR or, you know, if you could just give any color on that?

So, right now, whatever, like, you know, the margins that we are seeing going into FY27 is not very different to what we have seen earlier. So, our the EBITDA spread perspective things have been, like, you know, quite resilient.

Yes, but that’s because you’re executing the March 26 closing order book. I’m just trying to understand in terms of the new orders now that you’d be taking up?

Yes, even in the new order, what I mean, it’s in the similar profile.

Understood. Thank you, sir. This is very helpful, and all the best.

Thank you. Your next question comes from the line of Sahil Sheth from Anand Rathi Institutional Equities. Please go ahead.

Hi, sir, congratulations on a good set of numbers. So, my first question would be, when we are shifting our cell base from M10 to G12R, would there be any production downtime? Like, how many months would it take to shift our cell base to the G12R?

So, in our case, like, you know, one, it will be a phased transition that we will be doing. And like I already had explained earlier that cell is a batch production, so the disruption will be quite minimal. And two it will not take that much time because our line is already capable to do up to G12. So, whatever change will be just a kit change, so it’s not supposed to take—like, it should not reflect any material disruptions.

Okay, got it. And my second question would be on the 33 billion loan sanctioned from the IREDA. What is the rate of interest we have received on that, and what would the loan uptake schedule look like in FY27 and FY28?

So, yes, I’ll answer both the questions. So, currently, the rate is 7.95%. Earlier the rate was higher, but with the current market trend and the offers we’re getting from other banks, so we got a very competitive rate of 7.95% now. So far, we have not drawn any amount, which we are planning to do in the next month or so —first installment. Total debt is INR3,306 crores. So, possibly we will be very mindful of drawing the amount to optimize the interest cost. So, by 31st March, probably around 75% to 80% will be draw ing, and rest possibly because we will have some retention payment also, which is 15% to 20%, that will be spilling over to FY2 8. But for ingot and wafer etc., , this is still a long way to go, so right now our focus is to commission the integrated cell and module line.

Got it. And sir, my last question would be, recently there was some news where some of the developers have filed some petition to push the ALMM to July deadline. What are your views on that?

I mean, so these are efforts that are, like, you know, expected. I think this is something that was also happened during ALMM 1 also. And it is quite clear that the capabilities and the serviceability of the industry what it is at. But as far as we are concerned, like, you know, we are very much aligned towards the ramp -up of ALMM, and even like a small one -two month plus-minus will not really make a difference in what we intend to do because we’ve been cognizant of our capacities th at we have added and planned addition of cell line also, which is coming only in end of this financial year.

Sir, so if there is a six -month delay in the ALMM deadline, what kind of impact are we seeing on whether the DCR/non-DCR mix would shift or would it be more dependent on how your order book is formed currently right now?

Yes, for us, like, we don’t see any shift in this thing because our capacity is only 3 gigawatt out of what this thing is. And so even if there could be a few months shift of this thing, we don’t see it to impact any DCR/non-DCR mix for us.

Okay, got it. That was quite helpful. Thank you, sir.

Thank you. Your next question comes from the line of Aman Jain from Bernstein. Please go ahead.

Yes, thanks for taking my question. So, I just want to understand one thing. If we see quarter -on- quarter, our revenues are up around 67%, but our production is up only by 30%. And if we look even if we look at inventory, you know, it’s directionally going up ; it’s not like the old inventory getting used up. So, I just wanted to understand where these extra revenues are coming from?

So, one is, see, there are a couple of things. One is the sales is different to production. And two, what happens is that the realization price moves with the raw material price up and down in some cases. But that is why we always say that you look at EBITDA or absolute EBITDA or EBITDA per watt peak in the case of module manufacturing or cell manufacturing, because that will give you a true picture of what the performance is.

Got it. Makes sense. But sir, you’ve said that the revenues have also sorry, the realizations also been in the similar range over the last quarter. So, I mean, I’m not able to understand, so how that extra revenue?

Like I spoke in the earlier question, I think one we spoke about was the EBITDA spread was the question about. And two, what we discussed -- what I also said is that the production number is not to be taken as a sales number. Usually, we don’t give the sales megawatt that is done because it can just come into the calculations for a lot of competition and other things. So, that is why the production and sales is two different numbers that has to be considered.

Okay, sir. Thank you. Understood.

Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand the conference over to the management for closing comments.

So, thank you for joining, and I hope the performance of FY2026 has been as phenomenal as it has been for us to all the stakeholders. And with that, I thank everyone for being on the call.

Thank you, members of the management. On behalf of Emmvee Photovoltaic Power Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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