Thank you very much. We will now begin the question-and -answer session. The first question is from the line of Archit Agarwal from Steptrade Capital. Please go ahead.

Hello?

Thanks for question. My first question is about the deferred orders. Sir you had indicated that [inaudible 0 10:13]

Architji, sorry. Architji, apology. Your voice is not clear.

Hello. Yes.

Hello, Yes Archit ji, please.

Yes. So sir in the previous con -call, you had indicated that Q4 revenue shortfall was primarily an execution timing issue, with around INR 43 crores of Adani, INR 7 crores of SAIL and INR 13 crores of South Eastern Railway order deferred to Q1. So how much of these deferred orders has actually been executed and billed in Q1, and how much is still pending?

Out of this three orders, which I have mentioned -- which we mentioned last time, INR 36 crores has been executed and remaining majority would be billed in quarter two. Mean related to Adani is almost billed. Related to SAIL and South Eastern Railway, that would be billed in Q2 and Q3.

Q3?

Q2. Majority would be billed in Q2 and some part of the order related mainly to South Eastern Railway would spill over to Q3, because they are giving site clearance to us. So, as and when they would give us the site clearance it would be installed.

Okay. And sir even after the deferred Q4 orders, the Q1 revenue is only INR 76 crores it is 27% lower sequentially Q4 revenue of INR104 crores What is the reason behind this decline?

Archit ji, if you look at the number, then if you have the major order, which we done is only is of INR 36 crores related to Adani. Rest has been the normal order execution which has been done. And generally quarter one is always on the lower side. If this two billing, which of INR 20 crores would have been done in Q1, it would have been something around INR 96 crores of revenue. So it is in line. It is in line, because if you look at quarter one last year, it was INR 55 crores, against which we did INR 76 crores INR 77 crores So the spillover is still existing in our books.

Okay. And what is the order inflow in Q1?

Total order as on is INR 1,090 crores. If you remove the best developer order of INR 855 crores remaining order is of INR 236 crores in-hand. Plus there has been a dealer business, which is around something around INR 10 crores per month. You add additional INR 70 crores So, this is the number roughly which is there in-hand as on today.

Okay.

Okay.

And post-June there has been some more order which we have won, which is also of a significant size, which has been born post-June.

Okay. And the last question is about the margin trends. So you have guided for the margin of 12% to 13%.

Archit ji that is still maintained. Archit ji, that is still maintained. Your 12% to 13% margin what we told, we always specified it is order to order and then based on the yearly number, right now we are sitting on only INR 76 crores of turnover. So your fixed cost to turnover ratio is always high. So that's the reason of lower margin. But on a year basis -- yearly basis where our H2 is always on the higher side, this margin would equate to 12%, 13%.

Okay, okay. Got it.

Yes. You see my past trend as well. I always speak on the overall year -wise revenue mix. Quarter-to-quarter it get changed because of the order mix that we have.

Okay. And what will be the guideline for FY27?

As mentioned earlier, minimum 25% growth is what we are targeting.

Okay. Okay sir. That's all. Thank you.

Yes, thanks.

Thank you. The next question is from the line of Paras Chheda from Purpleone Vertex Ventures LLP. Please go ahead.

Yes. Thank you, sir, for this opportunity and congratulations for -- so, my question is with regards to working capital days. Our working capital days had increased sharply last year to 185 days from 60 days in FY25. And...

I am sorry to interrupt sir. Your voice is not audible properly.

What is the target for working capital days by March 27? And can you quantify the amount of cash which will be released from working capital improvement?

Yes, Paras ji, thank you so much. First the working capital cycle, it was 185 days in quarter four FY26, which had improved to 168 days in quarter one. And even the cash flow from operating activity which was negative at INR 49 crores, it improved to around INR 16 crores negative. So there has been significant improvement in the cash flow from operating activity as well as on the working capital side. And with the further unlocking of some of the major realization which is happening which we told you last time. So some collection had happened in quarter 1

and remaining major amount would be collected in quarter 2 . So you would find major unlocking of the working capital.

So by the end of March '27, what target working capital days should we assume sir?

Around 150 days.

150.

150, 120 to 150 in between I am saying, because if I do it in the month of March, so data goes up, so capital get locked because we refer to a one particular date number, not the continuous number. So around 120 to 150 days as what I had mentioned earlier, same on the same track.

Understood sir. 120 to 150 days. Okay. Sir for FY27 now we've got this INR 875 crores BESS orders in hand of which INR 854 crores are all developer projects. So is it -- would you be able to just guide us on revenue recognition project wise and or cash flow contribution from this Bihar, KPTCL and Adani project. How much of this INR 875 crores do you expect in FY 27 revenue and EBITDA?

See this INR 857 crores is the developer business. So here you would get a 60 -- I would give you project wise breakup. One is Bihar project. In Bihar project we are going to get yearly cash flow of INR 16 crores, spread over 12 years along with the capital subsidy of INR 32.40 crores. This is for Bihar based project which is a developer model, rental model. Second is Karnataka project. Here the total cash flow on year basis would be around INR 46 crores INR 45.72 CR spread over next 12 years with the capital subsidy of around INR 81 crores So if you add these two project it comes around INR 853 crores. Now related to Adani which you had mentioned, Adani mostly we have built, that's a straight EPC business, so it is not a developer model, that billing we have done majorly in quarter one. So this is the breakup of the EPC. And additionally we have received one more EPC order which is of around, I am not naming the name of company, considering market not conducive. So that is around INR 12 croresof another solar EPC business for INR 8.36 megawatt hour.

Right sir. So for FY27…

That is up to EPC business. Yes.

Sir for FY 27 then from the developer projects, how much revenue do you expect from Bihar and KPTCL?

In FY27 there would not be any recognition because first this project would go for completion. But yes there would be an EPC billing coming up on the standalone balance sheet.

Because EPC Bihar base EPC would be done by Prostarm Info Systems Limited. So that EPC revenue would come on the books but not the recurrent rental business would come on the books.

Right, sir. And sir you've guided for about 25% minimum revenue growth for FY 27, if I heard that correct. Right. And sir on cash flow from operations, do you expect this year -to-end to be positive or you still think this will be negative?

Yes sir, we have already moved in that direction. And as I told you even it was INR 49 crores negative last year, it has come down to INR 15 crores. But at times project decide about how it behaves, but we are doing it and that discipline is coming on the books. We have started working with the partner. We have started working with our national distributor like last month -- this month we have taken one order of around INR 7.5 crores and that billing is not routed towards directly from system integrator but it is directly it is routed through national distributor. So all this would result into a disciplined cash flow and yes we are positive and very hopeful we would convert positive in this by the end of this financial year.

Understood, sir.

Sorry to interrupt. Sir your line is not clear properly. We can't hear you.

Hello, am I audible now?

Yes.

Yes, Parasji.

Yes. No I was trying to say that sir for this 1.2 gigawatt hours Jhajjar facility, my understanding was that at peak you can probably earn about INR 1,000 crores to INR 1200 crores of revenue. Right? So what EBITDA margin do we expect from the manufacturing business, sir? Realistically in FY27 and ‘28?

See this base manufacturing facility of Jhajjar we are yet to start. So we would be commencing operation by end of this financial -- sorry, by H1 -- end of H1. And then it would gradually get stabilized. But -- however parallely there is also disturbance in the market as Paras ji you must be aware, regarding lithium cell, regarding the export incentive and dollar and freight movement. So all these factors are somewhat impacting the overall margin for BESS. So instead of focusing on the utility side of BESS application, we have started focusing on the C&I side of BESS application. So on the C&I side, the margin is better as compared to the utility side. In utility side, you would find megawatt size installation and then in C&I side you would find 500 kilowatt hour, 200 kilowatt hour, 300 kilowatt hour -- kilowatt size installation. So on an overall basis if I give you an example last, in this current year we posted around 26% of GB from best project which we did for Adani. So that would moderate to somewhat, but it would be better than the other core activity that we are doing.

And in that case, then you know, let's say if we commence operations end of H1, then what kind of utilization do we expect in FY27 and FY28? Because, you know, these are short cycle revenues, right?

FY27, it would not be more than 20%-25%.

Okay.

Yes. We had earlier mentioned about 25% to 50%, considering utility market was also very attractive. But utility mark you would have seen the balance sheet of most of the companies, they have bleeding because of the utility results. Today the result was also out for H.G. Infra. You would have seen the number. You would have seen the Pace Digitek number. You would have seen the Vikram Solar number. So there has been a margin erosion which has happened. So that's the reason considering our size we are not focusing on utility at all. So that's the reason we are targeting that utilization would not be more than 25% so that we can concentrate on a high m argin and C&I segment business.

That is for FY27 and for FY28?

FY28, it should move to around 40% to 50%.

Okay.

Yes.

And that should more or less mean about INR 600-odd crores -- INR500 crores to INR 600 crores of revenue…

Around INR 500 crores of revenue should be targeted.

In FY28? And the last question…

We should target -- Paras ji, we should target this because see one thing -- one thing to mention capacity is already prevailing. Right? So it is about the opportunity which is to be which is available -- which has to be available in the market. So what we are targeting is factory utilization if you target your utility side. But our focus is not on utility, our focus is completely on C&I. So the sizing goes down. That's the reason somewhat I am not very confident on conveying the exact capacity utilization.

Correct.

So this year end would actually decide about how next year capacity utilization would turn up.

There are some more developments which are happening which I cannot discuss with you right now. There are some more very good developments happening related to BESS.

Okay. Once that is been officially announced, then we would declare that in market.

This is for Prostarm specific or I mean in general on the industry?

Prostarm specific. No, no, no, no, Prostarm specific.

Okay. Understood, sir. And EBITDA margins you said you would expect at let's say about 50% or 80%, 70%-80% stable EBITDA margins from the C&I stuff would be?

Sorry, Parasji, I'm not able to understand.

So -- I was, no, no, I was trying to ask you on this Jhajjar facility when you reach …

Yes.

When you reach your optimal levels of utilization, what EBITDA margin do we expect from this manufacturing thing?

This would be around 14% to 15% EBITDA margin.

14% to 15%. Okay.

Yes.

And sir, just last query right we have got this developer projects which I guess we were trying to sell down probably those but I am not sure, what's the status now. So you will require a quite a bit of capital both equity and debt for this best pipeline. Now having probably raised INR 43 crores preferential issue, should we expect another significant equity because I think we initially said we will not go for equity raise in the near term but we have now gone for INR 43 crores So do we expect any further equity dilution or significant increase in borrowing over the next one and a half to two years?

See, borrowing can, if for Bihar project already we are tying up with State Bank of India.

Okay.

So that date would come in the subsidiary SPV Company, not in the flagship company.

Okay.

And there would be no personal guarantee or corporate guarantee for that facility. And that's an LC backed facility, LC backed cash flow from Bihar DISCOM.

And second related to Karnataka, in Karnataka it has just now the matter got closed, what Ramji mentioned earlier, there was some dispute, so that dispute is now resolved and it has turned favorable into favorable to KPTCL. So we are expecting if that we are targeting to sell off that project, because that is very remunerative. So that project we would target to sell off is our first priority. And if we are required to execute that project, still there would be a buyer coming in post-COD. And if we are not able to do that, then all my debt whatever is going to come up here, Parasji, is backed by a fixed cash flow. See one situation...

But you won't require any further equity dilution.

Equity dilution would not be required.

Over the next one and a half to two years. Okay.

At least for at least for next one year, see, Parasji , it is again, it would, as of now there is no such plan. There would not be dilution but if we do some major expansion or some major capex based on the market opportunity, then in that situation any dilution can happen that would be for the good.

Right.

I mean, it would not be for floating something in the market. Even when we speak of the share warrants, here promoter has not diluting its stake. It is the money which is coming in the company. Correct?

Correct.

So it is not going into the kitty of promoter. So it is for the purpose of company, not for the benefit of promoter.

No, no, I understand but it's just the more you get diluted the difficult it becomes. So that's what it is.

If any happen it would be only for the expansion which we are going to do. So that would be a healthy dilution. It would not be a stress dilution.

Right. Sir, operating leverage this year FY27, can we expect about 10% PAT margin?

No sir. It would be something around 8.5% to 9%.

Okay.

Paras ji because cost is increasing, we are coming up with two of the factory which you are aware and both unit would start operating so obviously cost would go up. And even with respect to import there would be an import subsidy, import also going up for the storage side.

So and my employee cost is also going up because we are hiring many manpower. If you compare our last IR vis -à-vis current year IR, you would find a few more people on senior leadership been added so all those operating cost would go up to some extent.

Understood. So about 8.5% to 9%. Yes. Fair enough. Thank you so much sir. I'll come back in the queue.

Yes. Yes, please, Parasji.

Thank you. The next question is from the line of Ayush Jain from Exequity Advisor Services . Please go ahead.

Hello.

Hello. Yes. Ayushji.

Yes, congratulations on a good set of numbers year -on-year. I just wanted to ask what's the currently you have been saying there is some hardship in the BESS segment on the utility part, right?

Hello?

Hello. Yes.

So what -- when can we actually, it took turn around and this year or the next year. It has totally died down right now.

Actually, market has not died down. All the bidders have taken a very aggressive call. They have knowingly, unknowingly, out of aggression, they have quoted below cost price assuming that they will negotiate and get a better deal from China, which has not happened. Basically it is a geopolitical issues happen between India and China. We have holded solar import from China, we have done lot, we have brought lot of restriction. Maybe it can see as a repercussion on that and they have imposed lot of restriction on exporting batteries to India. So they have efficiently they are increasing the 2% tax on battery from 1st September. So lot of issues are happening. Lot of challenges are happening which has nobody actually assumption has not been done properly. So if you ask me, this market, the sector will go up further, but in a better way, whatever mistake problem has happened, it will get rectified. People have now got aware and many -- the mad rush what has happened in last one year it has stopped. Now only serious player and company who would who actually understand BESS and can deal in BESS will only be in this sector only which will actually take this whole sector upward side. But yes next six to eight months you will see a further more challenges but next financial year I am 100% confirm you will see a much better picture.

Okay. Okay. Thank you.

Thank you. The next question is from the line of Siddharth from ABC Capital, please go ahead.

Yes hi sir. Good afternoon. First of all congratulations for these striking results sir, of this PAT margin of around 6% and growth of from 3.28% on year -on-year basis. And thank you sir for this opportunity sir. Sir I have a specific question sir regarding from the trade receivable sir. As I can see sir, as of March ‘26, there was a huge chunk of trade receivables pending in the balance sheet sir, around INR254 crores, sir. How much of it this received realized sir, till date sir?

As of June, the outstanding has come down to INR 231 crores and even post that this is as of June because and even as on today's date, it has gone down more below, which amount I am not mentioning. So it has it mean 231 was there on March, as on June 27 and as of August 15th of August it has come down more below. And by the end of quarter two, you would find a significant drop in the overall data. And numbers coming almost half of it.

So basically like you are mentioning one of the largest project of Pune CID I guess major chunk is stuck on there only.

Yes, yes. So we have realized a big amount from there. Almost INR 46 crores is already realized from that project and in quarter one and major another amount is expected to be received before end of month of August.

Okay.

Yes. Very big chunk is coming.

Okay, big chunk.

Yes.

Sir my second question is regarding your like you have mentioned some order in hand of 165 around odd crores from Solarium Green Energy. So you're expecting this whole of this order to be executed by FY27 only?

100%.

Okay. And sir how much like is the realization part from this project in this year sir?

Realization part?

Yes, sir, of this project only, sir.

Most of it would be realized in the current financial year.

Yes, Yes, Yes.

Sir so you find any risks like creditor risk, some kind of concentration risk on account of delay or delinquencies going forward sir. Like you have very 80%-85% or 90% of the debtor is stuck of one or two account only.

See these accounts -- Yes where this amount is, like what I told out of this INR 231 crores the major amount is related to CCTNS project. But there is no risk of realization, it's a central government funded project. So there is no risk of realization. We also choose the customer very, very selectively. And Siddharthji, we have been into government-based business for more than 15 years. So we understand this particular and even for example, I am giving you last, last to last year we did a single order of INR94 crore s, every single penny was realized. So we understand this market and we have been doing business with them. Additionally what happens, this product is something which is very, very sensitive to all players. So it also requires warranty and so this product cannot be kept without warranty, it would be supported. So service is also crucial in such cases. So some plus minus can always be there in the market but that amount is always discounted in the pricing that we do when we bid for any such category tenders.

Okay. And sir you are also like issuing some convertible warrants around INR 43 odd crores. So may I know sir what are the utilization part of from the proceeds of such warrants, sir?

This amount we would be utilizing for working capital purpose. As you know our Jhajjar factory is about to be ready and even the Gujarat factory would be up and ready. So in both this facility right now most of the UPS that we do are generally imported, right? And then we do the customization part of it as you would have known to my earlier commentaries. So now since the manufacturing time would go up, because things would go in house, that's the reason we have looked for increasing the working capital requirement and the reason for share warrant issue.

Yes. Okay. And sir one last question sir, related to your EBITDA margin sir. Like for this quarter one it's around 8.5%. As we know sir your H2 will be much better than H1 sir. So you're expected to maintain the same margin levels sir?

Yes, yes. What was 12% to 13% margin would be maintained over the over by the end of this financial year.

Okay. Okay. Thank you, sir and all the best for your coming quarters, sir.

Thank you, thank you so much sir. Thank you.

Yes, hello. Am I audible, sir?

Yes, Rohitji, you're audible.

Thank you so much for the opportunity. So I had just two questions. First was regarding the Jhajjar facility that we have. So its commissioning has been delayed later, so what caused the delay and when can we expect the commissioning?

See there's no real reason for the delay. Like we are, we have holded the production started for production from our own side. Looking at the market size, the cost of the component has gone up. Logistics cost has gone up from China. So we have holded for some time to make the prices to bring under control. And we are very hopeful that by the end of the Q2 will commence our production. So this is just to change our strategy from the utility level to C&I. This is also one of the major reason.

Okay sir. And second question that I had was regarding the BESS industries, there has been lot of pricing pressure across the industry. So how are we planning to remain competitive and also protecting our margins? And maybe what could be the strategy going forward to maybe get more and more tenders over there?

See first of all the pricing stress, the profit stress is on the utility sector in BESS. So that's the reason we have not bidded for any utility sector in last almost a year, last 10 months maybe. So we are totally taken a change in our strategy and we are focusing on commercial and industrial C&I. So there are no much pressure of margin in this sector and since this is a totally unorganized market in India, so we are trying to do a value added in this product and to work as organized player in this segment. So we do not see any challenges in BESS for our in our company in our fourth near future. And as a strategy when we are totally coming out of this utility sector, then we are totally out of this – what the market is under totally stress, we are totally out of that. And C&I sector is more booming sector, but as it is not organized, it is not -- the awareness is not there in the market. People do not know much in the smaller sectors and mid sector. So this, we are getting a good advantage and good order opening also has started in this sector.

Okay. Okay. That's it for my side. Thank you, sir, so much.

Thank you. The next question is from the line of Ravi Khanna, an Individual Investor . Please go ahead.

Hello, am I audible?

Yes Raviji, you are audible.

Yes, Raviji, right now, order what I mentioned is INR 1,090 crores of orders in hand. And we have bid under evaluation of about INR 2,000-plus crores of bid is under evaluation where we have participated. It includes two big orders of approximate value of around INR 1,800 crores. So even if you remove that, then INR 2,200 crores is something what is there, INR 2,200 crores minus. So INR 400 crores are the remaining bid, which has been done by our side. So this order, means, if you look at the -- if you remove the developer order, so it is currently at around INR 236 crores. This particular tandem would definitely keep on growing over next year based on the qualification which we are going to achieve and the number of bid participating that we are increasing.

Okay, sir.

And sir, what's happening now the strike rate would also come from BESS as a space, the system integrator solution as a space where we have ventured into over last one year. So all those would start giving results apart from the normal order which we take for our manufactured power solution

Okay, sir. Thank you. Got it. Yes.

Thank you. As there are no further questions from the participants, I would now hand the conference over to the management for closing comments. Over to you, sir.

Yes. Thanks all of you for participating in this earnings conference call. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations Manager at Valorem Advisors. Thank you.

Thank you. On behalf of Arihant Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. ***