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Solarworld Energy Solutions Limited — Call Transcript 2026
Jun 2, 2026
60098_rns_2026-06-02_f2ac0439-e699-4869-bee4-9ad78e10c3b0.pdf
Call Transcript
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SOLARWORLD
SOLARWORLD ENERGY SOLUTIONS LIMITED
(Formerly known as Solarworld Energy Solutions Pvt. Ltd.)
June 2, 2026
To,
BSE Limited
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai – 400001
Scrip Code: 544532
To,
National Stock Exchange of India Limited
Exchange Plaza, Plot no. C/1, G Block,
Bandra-Kurla Complex
Bandra (E), Mumbai - 400051
Symbol: SOLARWORLD
Sub: Transcript of the Investor/Analyst Earnings Call held on Friday, May 26, 2026
Dear Sir/Madam,
This is in continuation to our letter dated May 26, 2026, wherein we had informed regarding the audio link of the earnings call with analysts/investors for the quarter and financial year ended March 31, 2026 (Q4 & FY26 Results).
In this regard, please find enclosed herewith the transcript of the said call. The transcript is also available on the Company’s website i.e. www.worldsolar.in
Kindly take the above said information on record.
Thanking you.
Yours faithfully,
For Solarworld Energy Solutions Limited
(Formerly known as Solarworld Energy Solutions Private Limited)
VARSHA Digitally signed by VARSHA BHARTI
BHARTI Date: 2026.06.02 17:12:59 +05'30'
Varsha Bharti
Company Secretary and Compliance Officer
Membership No.: A37545
Encl. A/a
Regd. Office : 501, Padma Palace, 86, Nehru Place, New Delhi-110019, India
Corp. Office : 3rd Floor, A-45 to 50, Pioneer House, Sec-16, Noida-201301 (U.P.) India
Tel. (EPABX) : 91-120-4269273 Website : www.worldsolar.in E-mail : [email protected]
CIN : L15100DL2013PLC255455
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Solarworld Energy Solutions Limited
“Solarworld Energy Solutions Limited
Q4 FY26 Earnings Conference Call”
May 26, 2026
Solarworld Energy Solutions Ltd
MUFG
CHORDES & BALLY
MANAGEMENT: MR. KARTIK TELTIA – MANAGING DIRECTOR – SOLARWORLD ENERGY SOLUTIONS LIMITED
MR. MUKUT GOYAL – CHIEF FINANCIAL OFFICER – SOLARWORLD ENERGY SOLUTIONS LIMITED
MS. VARSHA BHARTI – COMPANY SECRETARY AND COMPLIANCE OFFICER – SOLARWORLD ENERGY SOLUTIONS LIMITED
MODERATOR: MR. NIKUNJ SETH – MUFG INTIME
Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
Moderator:
Ladies and gentlemen, good day and welcome to the Solarworld Energy Solution Limited Q4 FY26 Earnings Conference Call hosted by MUFG Intime. As a reminder, all participant lines will be 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 has been recorded.
I now hand the conference over to Mr. Nikunj Seth from MUFG. Thank you, and over to you sir.
Nikunj Seth:
Thank you, Julius. Hello, everyone. Welcome to Q4 FY26 Earnings Call of Solarworld Energy Solutions Limited. From the management today, we have Mr. Kartik Teltia, Managing Director, Mr. Mukut Goyal, Chief Financial Officer, and Ms. Varsha Bharti, Company Secretary and Comprehensive Officer.
We must remind you that the discussion on today's call may include certain forward-looking statements that may involve known and unknown risks, uncertainties, and other factors and must therefore be viewed in conjunction with the risks the company faces. Future results, performance, or achievements may differ significantly from what is expressed and implied by such forward-looking statements.
Now, I hand over the call to the management for the opening remarks. Thank you and over to you, sir.
Kartik Teltia:
Thank you, Nikunj. Good evening, everyone, and thank you for joining us today. I am Kartik Teltia. On behalf of Solarworld Energy Solutions, I extend a very warm welcome to all the participants on our Q4 Earnings Call. I hope you have had the opportunity to review the presentation that has been shared on the stock exchanges.
Before discussing our performance, I would like to briefly highlight the broader industry context. India's renewable energy sector has entered a structurally stronger phase over the past 12 to 18 months, supported by rapid capacity additions, improving project economics, rising energy security needs, and increasing demand for reliable clean power.
The sector is now evolving from being a purely capacity-led to becoming more focused on reliability, grid stability, and integrated energy solutions. India's solar sector continues to witness strong momentum, with India's solar capacity projected to reach around 348.57 gigawatts by 2031, while global solar capacity is expected to exceed 7 terawatts by the end of the decade.
At the same time, the industry is witnessing a very significant shift from standalone solar projects to solar plus storage solutions. BESS are becoming increasingly important, with demand expected to grow from 30 gigawatts to about 250 gigawatts by financial year '32. Policy and regulatory support remains strong.
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
The union budget for FY26 increased solar allocation by approximately 32%, while initiatives such as PM Surya Ghar, PM KUSUM, and National Green Hydrogen Mission are expected to further support adoption across residential, agricultural, commercial, and industrial segments.
In addition, regulatory changes such as amendments to the CERC-GNA framework are improving transmission access and supporting large-scale storage-backed renewable projects. Solar combined with storage is also becoming increasingly cost competitive with conventional power, especially for peak demand requirements.
Demand from commercial and industrial consumers distributed renewable energy, data centers, and large industrial loads is also expected to grow meaningfully. Against the backdrop of a rapidly evolving renewable energy landscape, FY26 has been a defining year for Solarworld.
The sector is clearly moving towards integrated clean energy solutions where solar generation, storage capability, execution strength, and domestic manufacturing are becoming increasingly important. Within this transition, BESS are emerging as one of the most critical growth areas, and we have taken decisive steps to position Solarworld strongly in this opportunity.
Q4 has been a highly productive quarter for the company, marked by strong progress across execution, capacity expansion, and strategic initiatives that reinforce our long-term growth trajectory. We delivered a strong operating performance during the quarter with revenue and profit after tax increasing significantly year on year. Mukut will take you through the financials later.
The performance reflects the strength of our execution capabilities, healthy project momentum, and benefits of our expanding presence across solar EPC manufacturing and energy storage. Energy storage continues to remain a key strategic priority for us. India's storage market is expected to witness strong long-term growth, and we are aligning our business model to capture this opportunity through both manufacturing and EPC capabilities.
We are targeting a 60-40 BESS to solar EPC revenue mix, which will allow us to participate meaningfully in the country's rapidly expanding storage ecosystem, while building a more diversified and resilient revenue base.
On the BESS side, our ongoing projects now aggregate to about 582 megawatt AC, 1.2 gigawatt hour DC, reflecting meaningful progress in one of the fastest growing segments of the renewable energy value chain. During the quarter, we also strengthened our position through key BESS EPC orders, including projects at NTPC thermal power stations in Solapur, Maharashtra, Unchahar, Uttar Pradesh, aggregating to about 514 megawatt hours, with a combined order value of about INR5 billion, including O&M.
Together, these orders reinforce our execution capabilities and mark a significant step forward in our energy storage journey. Our overall order book remains strong and provides healthy revenue visibility over the coming quarters. The ongoing order book stands at approximately 28 billion, comprising 16 billion from solar EPC and O&M projects, and about 11 billion from
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
BESS, EPC and IPP-related projects. The order book reflects a well-balanced mix across solar EPC, O&M, and battery storage, and positions us well for sustained growth.
During the quarter, we also secured a significant BOS package from NTPC REL for the development of a 260 megawatt DC grid-connected solar PV project in Bikaner, valued at around INR2 billion, including O&M. This order further strengthens our presence in the utility-scale solar EPC segment and demonstrates our continued ability to win mandates from marquee public sector customers.
FY26 marked an important milestone in our manufacturing journey, with the commencement of the operations in our 1.5 gigawatt solar module manufacturing facility in Roorkee. Spread across seven and a half acres, the facility is equipped with the most modern and fully automated ATW and Horad lines, and represents a significant step forward in strengthening our backward integration and domestic manufacturing capabilities. The facility manufactures high-efficiency top-1 solar panels ranging from 600 watts to 750 watts across M10R, G12R, and G12 configurations.
In addition, our 3.4 gigawatt fully automated BESS manufacturing facility, equipped with KUKA Robotics, is ready, with trials currently underway. The facility is central to our strategy of building a strong presence across the energy value chain, and will support our ambition to scale best revenue meaningfully. We are also progressing well on our backward integration, with a 5 gigawatt junction box manufacturing line being established in a joint venture. The site is now ready for trials.
Further, our 1.2 gigawatt solar cell manufacturing facility is progressing on timelines and is currently under development. The commercial operation is targeted by June 2027. These initiatives are expected to enhance captive consumption of module cells, improve margins, reduce supply chain dependency, and mitigate volatility arising from policy and market changes, including ALMM link requirements.
Beyond capacity expansion, our focus remains firmly on innovation, technology, and efficiency. We are accelerating our R&D initiatives towards higher efficiency solar modules and advanced solar technologies. Our objective is to drive innovation-led growth, improve product performance, and offer integrated solutions that meet the evolving needs of our customers.
Strategic partnerships will also remain an important pillar of our growth strategy. We are focused on building alliances that provide access to advanced technology, wider distribution reach, and improved cost efficiencies. At the same time, we are working to broaden our customer base across PSU and private sector segments, which will also help reduce client concentration risk and create a more balanced business portfolio.
Looking ahead, our priorities are clear. We will continue to scale our BESS platform, execute our solar EPC and storage projects with discipline, optimize our backward integration, and invest in technology-led capabilities. With a growing presence across solar manufacturing, EPC
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
execution, and battery energy storage, Solarworld is well-positioned to build a resilient, multi-revenue stream business.
With this, now I would like to hand over the call to Mr. Mukut Goyal, our CFO, who will take you through the financials.
Mukut Goyal:
Thank you, sir. Hello, everyone. Good evening. I welcome you all to this call as we present our results for Q4 FY26. I am pleased to report that Solarworld Energy Solutions Limited has delivered a stable and promising financial performance reflecting operational resilience and strong execution across business segments.
For the quarter ended Q4 FY26, our revenue from operations stood at INR591 crores, representing year-on-year growth of 235%. Our EBITDA stood at INR73 crores and margin stood at 12.1%, supported by better supply chain optimization, favorable input cost management. Our profit after tax for the period was INR49 crores, translating into a net margin of 8.1%.
For the financial year '26, total income stood at INR1416 crores, representing year-on-year growth of 1.57%. Our EBITDA stood at INR187.9 crores and margin stood at 13.3%. Our PAT for the period was INR120.4 crores, translating into a net margin of 8.5%.
On the balance sheet side, for the year ended March 31, '26, our net worth stands at INR844.8 crores, while total debt-to-equity ratio stands at 0.3x. Looking ahead, our financial strategy will continue to emphasize capital efficiency and facilitate cash flow generation with clear visibility on capacity addition and a healthy order pipeline.
We are confident of maintaining strong revenue momentum and expanding profitability in the coming quarters. Our approach remains guided by product, financial management, operational excellence, and long-term shareholder value creation.
Thank you. Over to you, Nikunj.
Nikunj Seth:
Yes sir. We'll proceed with Q&A.
Moderator:
Thank you. We'll now begin the question and answer session. The first question is from the line of Keshav from BHH Securities. Please go ahead.
Keshav:
Hi Kartik, I am Keshav. Last time I saw you finally we get to speak. So sir, in Q1, we had promised that you'd give us a 1500-floor top line with an 11% PAT margin. So we are right now at an 8%, 8.5% PAT margin and the top line is not anywhere close to that. So can you comment on this and what is the guidance for the year going forward?
Kartik Teltia:
Thank you for that question. So my top line is close to about INR1,376 crores and I think with other income we are close to about INR1,416 crores. So what I would like to take you through is from the December quarter, two things that are very important here is, first you have to look at my EPC business and my module business separately.
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If you look at my EPC business, my PAT margins are close to 10.5% which are I think amongst the best in the industry. My module business only got its ALMM approval in December 2025 and we only got about two months to run that line to two and a half months. So there has been a slight loss in that module business which I think we will cover in this year.
Secondly, on the overall side, you will also have to see that Q4 for all the companies has been very, very challenging. All the raw material prices have significantly increased in the last quarter either owing to the war that is currently going on which has created a lot of headwinds. So there has been a dip in margins. Our margins would have been slightly better and we could have achieved more revenue also had these headwinds not been there.
Keshav: Can you give us guidance for the next year?
Kartik Teltia: So in terms of guidance, my order book currently stands at about INR2800 crores. We hope to continue and achieve maybe 70%, 70%, 75% of this order book in the current year. Currently because of the war as I said, all the raw material and raw material prices have significantly raised. If the war situation subsides, we are hoping to maybe carry on our current margins to the current year.
Keshav: So what you are saying is broadly INR1900 to INR2000 crores broadly is the top line and the margins could be 8%, 9%, 10% or 11%. What would you want to say for the current number of margins?
Kartik Teltia: In EPC, I always say that margins are somewhere between, 9% to 11% depending on where you are in terms of raw material price cycle and this is an abnormal year currently going on because of the war. So I would say that if this war subsides, our margins would significantly improve. But if it doesn't, then there is a possibility of a slight downside also. So we would say somewhere between 8% to 11% is where we should lie in terms of overall margins.
Keshav: Got it. Now, one last question. So we had raised money like INR430 crores was earmarked for a battery cell manufacturing unit, So in Q1 you had gathered it will be operational by December 2026 to Jan 2027. And later on you had said it will be 2027. So, where do you see this unit starting and contributing to our margins because our raw material costs will significantly come down with this unit starting sir?
Kartik Teltia: Yes, yes. So firstly, we have decided that this line will start by June 2027 commercially. We are still on target to achieve that timeline. This was a solar cell line 1.2 gigawatt which is coming up in Pandhurna. We have received most of our approvals and construction is going to start maybe in June itself. So we should achieve our June timeline easily and start commercial production and with ALCM2 now coming in, we also see a lot of positive upside from that line coming in.
Keshav: Okay, that's all from my side. Thank you so much.
Kartik Teltia: Thank you.
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Solarworld Energy Solutions Ltd
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May 26, 2026
Moderator:
Thank you. The next question is from the line of Dhruvin Shah from HDFC Securities. Please go ahead.
Dhruvin Shah:
Yes, hi sir. So I was looking at slide number seven in your presentation, where they reported the total capacity of completed projects. That on AC or DC basis has not changed through the quarter, but we've recorded revenues. So if you could put some light on that what exactly how to look at that?
Kartik Teltia:
So actually see, we can add the capacity only after it is fully commissioned. So if you go through our presentation, you will see that we are about to finish a 272 megawatt project in the month of June itself. So that will add 272 to the 348 number you are seeing and another 70 megawatt is getting completed in June as well.
So if you add that, I think this is going to go to close to about 600 megawatt in the next month itself. But this capacity only changes once we finish a project and hand over the project to our customers. So maybe in the next quarter when we have this call, you will see maybe 700 megawatt in this place. And by end of the year, this will go significantly higher maybe close to about 1.5 gigawatt.
Dhruvin Shah:
Understood. Second question would be regarding the SJV and SKU. So we've filed claims with DAV works INR219 crores and we've taken INR52 crores as receivables on the books. So the amount that we are actually expecting would be INR52 crores as of now right? That is how?
Kartik Teltia:
No, so to be honest what happens is when we bill our customers that is the revenue we record in our books. Then when the payment is delayed from our customer, we are entitled or when the project is delayed because of a fault on the part of the customer, we are entitled to various kinds of claims like idling charges, interest charges on delayed payment and loss of profit charges.
So we have filed all those claims, but as per Ind AS, we can only record those amounts in our books of account once we receive an award from the dispute resolution board which is the adjudicator. So while we have only recorded our invoices the amount that are recoverable should be much higher. Essentially, if you ask me what I would say bare minimum we should get is our outstanding amount, interest on the delayed payments, then idling charges which are also a significant amount.
We have raised a significant amount for loss and profit because of the delay in the project from SJVN, but that has to be seen how much of that amount is awarded to us actually. So once we become certain of the exact amount that is recoverable, we will record that as well, but it will definitely be higher than what is recorded in our books.
Dhruvin Shah:
Understood sir. I'll get back in the queue. Thank you.
Moderator:
Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead.
Deepak Poddar:
Yes, am I audible, sir.
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Kartik Teltia: Yes. How are you?
Deepak Poddar: Yes, I'm doing good. Thank you very much sir for this opportunity. So just first of all I wanted to understand this fourth quarter, why was there a very high improvement in your other expense?
Kartik Teltia: You will have to give me a minute.
Deepak Poddar: I mean spike in your other income, other expense.
Kartik Teltia: Sir just give me a minute. Sir the question is regarding other expense or other income?
Deepak Poddar: Other expense.
Kartik Teltia: Other expense went from INR74 million to INR83 million. So I don't see a very high increase. Are you saying Q4 2025 to Q4 2026?
Deepak Poddar: Yes.
Kartik Teltia: Sir, so last year my total revenue was about INR550 crores. This year my revenue is about INR1400 crores. That's a 2.5x increase. So my other expense has also gone up. Secondly, last year there was a write-off of about INR140 million related to one of my private customers which we have recovered in the current year which is showing in other income. So that is why that expense has proportionately while it has gone up on a sequentially you are seeing a lower number.
Deepak Poddar: Okay, okay. I got it. I understood.
Kartik Teltia: So there is a write-off last year which has not happened this year basically.
Deepak Poddar: This 3.4 gigawatt BESS capacity, what is the capex involved in?
Kartik Teltia: Sir, capex is close to about INR55 crores to INR60 crores.
Deepak Poddar: And we have already spent it, right? I mean because we are under trial.
Kartik Teltia: We have already spent a line at under trial.
Deepak Poddar: And what can be the revenue potential of this?
Kartik Teltia: So one container, we can make about 740 containers in a year full capacity. 740 containers at maybe INR4.5 crores each. That gives you about INR333 crores -- INR3000 crores of revenue per year at full capacity.
Deepak Poddar: And what would be the margin profile for us?
Kartik Teltia: So BESS typically has better margin profile compared to solar. So I would say somewhere between 14% to 15% is what we should expect.
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Deepak Poddar: 14 to 15% of PAT?
Kartik Teltia: PBT.
Deepak Poddar: 14% to 15% of PBT margins.
Kartik Teltia: Yes.
Deepak Poddar: Okay and when we say this I mean close to INR2000 crores kind of execution this year. So how much we are building in from BESS, FY27?
Kartik Teltia: So I will give you a breakup. My solar EPC currently stands at order book of about INR1674 crores. And BESS is close to about INR1136 crores.
Deepak Poddar: Yes. No, so I was trying to understand out of this INR2000 crores, I mean the proportion will remain same?
Kartik Teltia: No I am mostly going to finish my BESS project this year because the timeline for most of my BESS projects is June 2027. So I would expect that most of my revenue would be booked by March. And whereas on the solar EPC, we have a slightly longer timeline.
Deepak Poddar: Okay. I got it.
Kartik Teltia: So between a BESS project and a solar EPC project, BESS projects do not suffer from land acquisition delays and other delays. Because they require very little land and tend to be very close to the substation. So delay risk potential in a BESS project is much lower compared to a EPC project in solar.
Deepak Poddar: Correct. And cell, we are sourcing from China?
Kartik Teltia: Sir, right now from China. There is no supplier in India. So lithium cells will come from China.
Deepak Poddar: Okay. Understood. And just one last thing, what is the -- we are looking at for FY27 new order inflow?
Kartik Teltia: Sorry what is the?
Deepak Poddar: Order inflow. New order inflow we are looking at in FY27?
Kartik Teltia: Sir order, so because most of my business we get from PSU customers and this tends to be a reverse bidding mechanism to predict how much orders we will get is very difficult. But looking at our past experience, we have been growing fairly, fairly fast. So we went from INR550 crores to about INR1400 crores this year.
Hopefully, we can kind of keep increasing our order book. If you look at slide 12, you will see where our revenue and order book has been going. So you will see that we are growing very, very fast in terms of order book also. And that has to do with our ability to execute projects, as
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well as our access to working capital because without those two things we cannot really bid for a project.
Deepak Poddar: Yes, yes, that's very helpful sir. Wish you all the best. That's it from me.
Kartik Teltia: Thank you. Thank you so much.
Moderator: Thank you. The next question is from the line of Pahal Sharma from DD Capital. Please go ahead.
Pahal Sharma: Hello. Good evening sir.
Kartik Teltia: Good evening.
Pahal Sharma: Yes. So my question is that, with Solarworld’s module, manufacturing facility is now operational. So how should investors think about the utilization ramp up over the next few quarters and the medium term and also specifically, what level of capacity utilization is management targeting in FY26 and FY27. And like, second, what utilization level does the facility achieve operating break-even or EBITDA break-even?
Kartik Teltia: Okay. So ma'am the installed capacity is about 1.5 gigawatt of the line. I would say that we achieve a break-even maybe at about a 30%, 35% utilization on that line. It might seem lower compared to our competitors because it's a very highly automated line and we are the number of people required to run that line is much lower compared to other some of the other lines. Plus our capex on that entire line was close to about INR146 crores. So our depreciation is also lower compared to our competitors.
In terms of how much utilization the management is expecting. So, if you have been following us, you would know that we are an EPC first company and lines have been set up to support our EPC business. In the current year as on date, I have an order of about 600 megawatts that I need to supply to NTPC Limited - NTPC REL for my order.
So that is a guaranteed order that we already have in hand. So that will be -- that will give me a utilization of maybe close to about 40%, 45%. As we add more orders, I think we should expect a 60%, 65% utilization for that line.
Pahal Sharma: Okay, and understood sir. And one more question is that, how much of the existing EPS order book can be serviced through in-house modules?
Kartik Teltia: Ma'am 100%. I said 600 megawatt current order book. That entirely will come from the module line that we have.
Pahal Sharma: Okay, understood.
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Kartik Teltia:
So last year, we got our approval in December 2025. So we were not eligible to supply to some of our existing EPC orders and we had to buy solar panels externally. But from the current year that issue is not there. So our line is now running to supply to our existing customers only.
Pahal Sharma:
Okay, okay. Thank you so much.
Moderator:
Thank you. The next question is from the line of Karan from Niveshaay. Please go ahead.
Karan Sanwal:
Hi. Sir, I have a very general industry question. So recently the ALMM notification came out of no extension in the scheme. So I wanted to understand that if the country has adequate capacity to cater to the demand. If you could quantify how is the gap between the cell and module capacity because ultimately we'd be sourcing cells because we currently don't have capacity. We'll be coming for the next year. So if you could give us the information on that?
Kartik Teltia:
So ALCM2 will become applicable from June. Projects which were bid out after August 31st will have to use ALCM cells now. And MNRE to be honest after reviewing the extensions that have been granted, I think most 90% of the project will -- 90%, 95% of the project will have to shift to DCR cells. That is true.
In the short run I think maybe 6 to 12 months, we could face a shortage of solar cells. But I think capacity is now coming up. Going forward next year I think FY28 and end of FY27, I think the capacity constraints should ease a little bit. So yes, there will be difficulty in the short run.
But this is also a very important step to ensuring that domestic manufacturing does pick up in solar cells. So yes some projects might, I would expect some projects would get delayed because of access to material. But overall I don't think the situation will be very, very stark.
In terms of Solarworld our current order book does not have ALCM 2 orders. So we have a headway of about a year. And by the time our own cell line should be up and running so we don't see a lot of headwinds from this order.
Karan Sanwal:
Understood. And continuing on the above question, when is the, as you said our order book currently doesn't have ALCM 2 compliant basically cell requirements. So when do we expect, given the chunk of the demand that is utility to come up to these DCR requirements, would it be at the end of FY27?
Kartik Teltia:
So sir what you have to see is when you get an order from a utility or when you sign up PPA you get somewhere between 18 to 24 months to execute those orders. So any order that was bid out after August 2025, that is from 1st September 2025, I would expect they have somewhere between, EPC orders would have about 14 months and your PPAs would have about 24 months to execute from that. So if you deduct maybe 6 months at the end, that is when they would start ordering the solar panels. So maybe end of this year is when most of the demand should start coming in.
Karan Sanwal:
Oh yes, so also I was asking that with the increasing use of BESS in the tenders that are going live, does the module requirement also increases considering that as compared to a plain vanilla
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solar, is there a norm where more modules are used for equivalent solar BESS capacity to cater to the demand or is it the same for modules that are used for those BESS projects also?
Kartik Teltia:
So Karan sir, I understand your question. What you are trying to understand is with utilization of BESS, will the utilization for solar panels per project go up or go down? So to be honest, there is not a straightforward answer.
There are various kinds of FDRE tenders in the market. In some tenders, yes we will deploy more solar panels and in some tenders you don't, you actually reduce the number of solar panels you will use. That depends on how much electricity has to be supplied.
But overall because of installation of BESS projects, the grid will become more stable and we are able to give power at the time that the grid requires. So number of solar projects should definitely go up. That should increase the utilization of solar panels and deployment of solar panels overall in the country.
Karan Sanwal:
Understood. And one last question, how in the next two, three years, what will be the annual demand in the solar industry? We would be expecting for this DCR module because considering in a year, the thing is adequate capacity. So annually how much demand can we expect including everything, utility, C&I...
Kartik Teltia:
Karan sir, I would not be able to answer that question very correctly. To be honest, in some of the segments like solar pumps and KUSUM scheme, rooftop scheme, we do not really operate in those segments. So for us to predict how much demand for DCR solar panels will be there and assuming this is the first year, it will be very difficult to predict the overall yearly demand. Maybe once the situation stabilizes after implementation, I think we'll get a clearer picture.
Karan Sanwal:
Great. Thank you so much for patiently answering every question.
Kartik Teltia:
Thank you.
Moderator:
Thank you. The next question is from the line of Darshan Shah from M&S Associate. Please go ahead.
Darshan Shah:
Yes. Hi. Thank you. Congratulations on a good set of numbers. Am I audible?
Kartik Teltia:
Yes, sir. Thank you. Thank you so much. Thank you.
Darshan Shah:
My first question is typically EPC projects in the renewable space are bundled with long-term O&M contracts. These O&M contracts are typically from an investor point of view, stable income, high return ratio as well. So what is the management view on O&M to increase it as a long-term revenue vertical?
Kartik Teltia:
So to be honest, my view is exactly opposite of yours. Firstly, my O&M contracts are typically three years after installation of the project. So my tenders don't require long-term O&M from us. Our EPC margins are definitely better than our O&M margins.
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Solarworld Energy Solutions Limited
May 26, 2026
To give you an example, on a 100-megawatt project, I get a revenue of maybe about, including solar panels, about INR250 crores to INR300 crores. For the same project, my O&M revenue over three years may be only INR7 crores to INR8 crores and the manpower required is almost the same to maintain a project and to set up a project. So our interest is more in executing more projects compared to picking up more O&M. So you will see that as a strategy, Solarworld does not actively bid for O&M contracts.
Darshan Shah:
Okay, got it. And just from my understanding, even PSM for the rest of the O&M, because your module life would be for longer, then for the remaining part of O&M, what does it happen? Does it primarily go to the initial vendor or then again, re-bidding happens just for the O&M piece?
Kartik Teltia:
Yes, so after, so let's say my initial tender is for supply installation, commissioning and maintenance for three years. Once those three years are about to end, the PSU would typically come out with a tender, where there are companies which are specialized in O&M would bid and take over the project from there and do the maintenance for maybe next 5 to 7 years.
Darshan Shah:
Okay, sir. Got it. And secondly, the government's increasing focus on ALMM, DCR, PLI scheme for capacity creation. How do you see your competitive landscape evolving over the next 3 to 5 years? I specifically heard you say to the previous participants and from a DCR supply side of view, it may be difficult for you, but overall on just the landscape, if you could just give me some pointers of what you think?
Kartik Teltia:
So in terms of Solarworld, firstly, it is not going to be difficult for Solarworld because we have already invested into an ALMM module manufacturing line. We raised capital for a ALMM 2 solar cell line, which will come up by June. And for the current year, my orders don't require DCR cells.
So basically, once we require DCR solar panels, we would have the entire capacity in house. So from a competitive perspective, we are very well positioned as India's only EPCcompany that is backward integrated into manufacturing.
From current year perspective, if there is a shortage for DCR cells, developers and EPC will have two options, either to reduce their margins and go for higher prices or to maybe delay or defer their projects within the overall timelines they get. But I would expect that from next year onward, the situation should ease and not to get aggravated because other manufacturers are definitely setting up capacities as well.
Darshan Shah:
Okay, sir. Got it. I think the next question was on that only, but I think you sort of answered it. How do you see from an input point of view? Do you see because of DCR, your costs rising momentarily? And then once the industry-wide supply stabilizes, you will see kind of inputs also normalizing for you?
Kartik Teltia:
So there are two things that we really have to consider here. Firstly, I'm in EPC. So if I will pick up a DCR order now, I would plug in the current prices which are at elevated level. And as more
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
capacity and competition comes in, I think the prices will go down. And I should expect my margins to improve to be honest.
So if DCR had become applicable on my existing contract without any pass-through, that would be a problem. But I don't have any DCR orders. And as I pick up DCR orders now, I will definitely try to pick them up at the current prices. So for me, it is a pass-through to the developer who will be bidding out these projects to us for EPC.
Darshan Shah: Okay, got it. Thank you so much.
Kartik Teltia: Thank you.
Moderator: Thank you. The next question is from the line of Tejas Khandelwal from Prudent Equity. Please go ahead.
Tejas Khandelwal: Hi, sir. Thank you for the opportunity. Yes, am I audible?
Kartik Teltia: Yes, yes, sir. Please go ahead, sir.
Tejas Khandelwal: Yes. So my question was, sir, the guidance which you have given for FY27 that INR1,950 crores should be executed from order book. So I wanted to know that, will we add anything from BESS and module side on this order book...
Kartik Teltia: Sir, see -- so I have already given my order book in the presentation, but whatever I manufacture in my solar panel factory is utilized in my EPC. So when you see, look at our console numbers, that is an elimination that you see and does not really add to my top line, but it does add to my margin. So from a top line perspective, you will not see that.
Tejas Khandelwal: Okay, okay. And sir my second question was, I mean, we have not spent anything from the funds which we have raised for solar cell. So what was the reason behind that?
Kartik Teltia: So the solar cell funds are dedicated to a very specific thing. Maybe we can use them for our utilities and for our machines. We are currently getting all our approvals and civil construction will start. So these funds will be utilized once we have maybe entered into 1, 1.5 months of construction, and then we start ordering the equipment. So maybe in the Q3, you will see a very sudden utilization of these funds.
Tejas Khandelwal: Oh, okay, sir. And will you be able to give any ballpark number for order inflow for this year?
Kartik Teltia: Sir I really can't predict that. But the market is good. It is a fairly, the BESS market is -- to be honest, I can give you a landscape of the market currently. So the BESS market is growing at a very, very fast pace. We've picked up significant orders in the BESS market. And we believe that we understand that the technicalities of a BESS project, because we are doing manufacturing as well.
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
And on the EPC side, we are already there. So that market is definitely on our radar, and we want to grow bigger there. On solar EPC also, a lot of our customers are now coming out with a lot of new bids. So we remain hopeful to capture a significant portion of that market also.
Tejas Khandelwal:
Okay. And can you share any internal target or any vision which you have, which you have laid for the company in terms of the revenue and profit for the next 3, 4 -- 2, 3 years maybe?
Kartik Teltia:
Sir, to be honest, FY26 has been a very good year for us. We have almost grown by around 200%-250%. We will maybe not be able to sustain this growth rate in the coming year. We expect to grow by around 40%-45% this year as well. And we hope to maintain it. Q1 has been difficult for everybody because of the elevated prices.
If the prices reduce, we hope to improve our margins as well. Otherwise, we would hope to sustain our margins. Internally, as a vision for the company, we intend to be India's biggest EPC company with state-of-the-art backward manufacturing lines that can support our customers end-to-end.
We've taken a lot of steps in that, towards that direction. And hopefully by the end of this year, and with our solar cell line coming up, we will be a complete solution provider and one of the best solution providers in the country.
Tejas Khandelwal:
Okay. Great. Great. Thank you so much. That's it from my side.
Moderator:
Thank you. The next question is from the line of Harshit Sachdeva from Columbus Capital. Please go ahead.
Harshit Sachdeva:
Hi, sir. Congratulations on a very good year. Just two questions. Sorry. First one, sir, if you want to expand your module and cell lines. I mean, cell line would come up next year, but 2, 3 years later, incrementally, if you want to expand capacity, what sort of numbers are we looking at in terms of timeline and cost?
And second, sir, in the industry, I mean, do you see any PPA cancellations or tenders that have been awarded, but are getting rescinded by PSUs? I mean, I heard some of that, but would like to get an idea from you. I mean, and what are the possible reasons if so?
Kartik Teltia:
Harshit, thank you so much for your question. On the first question, our strategy is that we set up a line only when we see visibility for consuming about 75% to 80% of that capacity in-house in 1 or 2 years. So at present, we don't have any intentions of increasing the capacity in our module line or cell line. So that is one.
Secondly, on the PPAs getting rescinded by PSUs and DISCOMs, yes, that is a very, that is correct. And that is a problem that people are facing that PPAs are not getting signed after they become the L1 bidders in those bids.
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
There are a lot of factors that are at play. Firstly, I think a lot of the BESS capacity that has been bid out, once that comes in, then DISCOMs will be in a better position to consume that power. So you will see a push there.
Second has been the lack of connectivity in the country overall. So I think government has given a big push to set up more substations, grid substations to ensure that that capacity can be evacuated to regions that need it.
So I think over a period of one year, I think a lot of these issues should get resolved. We are hopeful and by the end of maybe FY 27, once these issues get resolved, the solar market would make a very, very fast and large comeback in terms of size and capacity that we are executing every year.
Harshit Sachdeva:
Okay. Okay, got it. On the first question, I mean, I understand that your philosophy is entirely to utilize it captive for in-house orders. But I mean, just basic idea, I mean, if you have to expand from, let's say, 1.5 gigawatt capacity to 2.5 or 3 or double it, how much time would it take an additional capital, let's say, if all the civil works are already there and you just have to install an additional line?
Kartik Teltia:
So on the module line, I can tell you that we started setting up our first module in November 2024. And most of our setup was done about in 6 to 8 months. And then there was a change in regulation regarding the IEC, which delayed our ALMM.
So if we could do it in 6 to 8 months earlier, I would expect to replicate that in a much faster way in terms of our module lines. Because we already have experience now in setting up and running a module line, so maybe 6 months. And on the cell line, we are setting up our first line. So I will let you know on our experience once we finish this one.
Harshit Sachdeva:
And sir just last one small question, I mean, current R&D spend would be how much? And are we any targets for that internally?
Kartik Teltia:
So our R&D spend, you would not see that separately in our financial statement. It's a continuous thing that our technical team keeps doing. Our target this year has been to maybe shift from a 620, 625 watt solar panel to about a 700 watt solar panel, which very few people are doing at scale in India right now.
That is primarily the demand is driven by our optimization of our EPC project, which is another R&D that happens at our EPC level on how we can deliver better performance at a lower cost. So it's very difficult to give you a separate number, but we do try to remain ahead of the curve compared to our other competitors, because lower cost, better efficiency does lead to better margin for us.
Harshit Sachdeva:
Thank you so much, sir. Best wishes for the upcoming year. Thank you.
Moderator:
Thank you. The next question is from the line of Deepak Patil from Equintis Wealth Advisory. Please go ahead.
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
Deepak Patil: Hello. Am I audible?
Kartik Teltia: Hi, Deepak. Yes, sir.
Deepak Patil: So what's the proportion of this total order book we expect to convert to revenue in FY27? And the second question is EPC takes 14 months and BESS is faster. So can you give us a quarterly revenue ramp-up trajectory for the whole year?
Kartik Teltia: So, sir, on your first question, my order book today is about INR2,800 crores. We would expect to -- we would bare minimum try to achieve about 70% of that. So maybe close to INR2,000 crores in the current -- in FY27.
In terms of BESS EPC and solar EPC, I think BESS EPC we get about 11 to 12 months to execute. Solar EPC we get 14 months to execute. But in solar EPC, if there is a delay in handover of land, then we do get an extension in our timeline.
So in the current year, my last year my BESS revenue was zero. It should go to about, maybe close to about INR800 crores to INR1,000 crores this year. My EPC revenue was close to about INR1,250 crores this year. It should remain fairly constant at around that level, so maybe INR2,000 crores. Overall EPC revenue will be about INR2,000 crores.
Deepak Patil: Okay. And quarterly revenue ramp-up trajectory for the whole year?
Kartik Teltia: Q1, Q2 are weak for us. Q3, Q4 are very strong for us. So that's a trend you will see across the years that is going to sustain this year also.
Deepak Patil: Okay. Maybe you could mention H1, H2, back up if you can.
Kartik Teltia: Very difficult to predict, but we'll try to achieve what we are seeing over the year.
Deepak Patil: Okay. Thank you.
Kartik Teltia: Thank you.
Moderator: . Thank you. The next question is from the line of Anuj Upadhyay from Investec. Please go ahead.
Anuj Upadhyay: Hi, thanks for the opportunity. Karthik, sorry I joined in late. So I'm sorry if someone has already asked this question. One thing is on how the EPC pipeline is framed as of now, in terms of opportunity, how the tenders have floated, how big do you see this year considering the volatile market situation?
Next is on the ROW issue. How serious is it, like Powergate had mentioned that in certain cases the regulator or the developers have agreed, to procure land on the market rate versus the circuit rate earlier. So what their claim is, ROW has been sorted. But just to get a sense from your side, how things are panning out? And thirdly, on the labor issue, you know, how things are panning out over there?
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
Kartik Teltia:
So sir, coming to your first question on how is the EPC tendering market this year. So to be honest, compared to last year, it is going to be slower because I think because of the lag and connectivity, there has been a certain slowdown in the tendering process for PPAs itself. But looking from a Solarworld perspective, our order book is quite full firstly.
Secondly, sir, if you look at maybe PSU tending route, maybe close to 40 gigawatt last year. We execute maybe 1, 1.5 gigawatt in a year. So from a Solarworld perspective, I would not see a very big impact in terms of our order intake, while overall market might be a little slower.
Secondly, on the question of the ROW for transmission lines, there has been a change where now ROW compensation is paid on market rates. I think that definitely helps in speeding up the process. Because earlier, this compensation was based on the circle rates and circle rates are not updated very frequently in rural areas.
So that did create a lot of struggle between the farmers and developers who are trying to set up transmission lines. So that issue is getting resolved. But I would not rate that as the biggest problem or hurdle in setting up the solar projects.
I think the biggest hurdle right now is BESS scaling up so that the grid can be stabilized. And we can have better visibility of power during the day at night.
Second, I think the bigger concern is the connectivity that I think will take another 10 to 12 months to get resolved. And labor issues, sir. Last question on the labor issue, we've not really seen a lot of labor issues.
Anuj Upadhyay:
Okay, thank you. That's helpful, Karthik. Thank you.
Kartik Teltia:
Thank you. Thank you, sir.
Moderator:
Thank you. The next question is on the line of Dhruvin Shah from HDFC Securities. Please go ahead.
Dhruvin Shah:
I just have one more question. It is regarding the part that we already have our module 9 ongoing. And we've guided that the BESS order would have 14% to 15% of community margins. So if I calculate that, wouldn't the margins slightly improve because of our cost coming down because of the cell module? So wouldn't that lead to higher PAT margins maybe compared to the current year?
Kartik Teltia:
Sir, so my margins would improve on the BESS side. On the EPCside, we are facing a lot of headwinds. To give you an example, copper compared to October 2025, copper is maybe up by about 40%. Aluminum is up by about 50%. There's been an increase in the steel prices. So there are definitely headwinds in most of the metals. So that will have an impact on the solar EPC side.
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Solarworld Energy Solutions Ltd
Solarworld Energy Solutions Limited
May 26, 2026
So overall, we are hoping to sustain the margins that we have in the current year. And as the situation in West Asia normalizes, we would hope to improve them. If it continues and prices still go up, then we are already guiding that there could be a slight decline in the margins as well.
So there is a range, we are saying, somewhere between 8% to 11% where we should land. And to be honest, on the BESS side, most of the raw material currently is imported into India. And the exchange rate has gone from maybe 85-86 to about 96 now. So that also has an impact on the margins.
Dhruvin Shah: Understood. Understood. Okay, thank you so much.
Moderator: Thank you. Ladies and gentlemen, we take this as the last question. I now hand the conference over to the management for the closing comment.
Kartik Teltia: Thank you. Thank you.
Moderator: Sir, please go ahead.
Kartik Teltia: So you had the last -- you were going to take the last question?
Moderator: No, sir. The queue is clear, sir.
Kartik Teltia: Okay, okay. So thank you everyone for joining in. Hope we were able to answer your questions regarding the market and our company. And we hope to deliver good results in the coming year as well. And we will keep you posted on any new developments that we have in our company. Thank you everyone for joining in.
Moderator: Thank you. On behalf of Solarworld Energy Solutions Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.
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