# 1. Financial Performance ## A. Key Figures * **Revenue:** ₹2,092 Cr Q3 (+48% YoY) · ₹5,602 Cr 9MFY26 (+48% YoY) * **Operational EBITDA:** ₹105 Cr Q3 (+17% YoY) · ₹289 Cr 9MFY26 (+115% YoY) * Gross Margin: 10% 9MFY26 · 9.5% Q3FY26 * **Net Debt & Working Capital:** ₹738 Cr net debt (↓₹4 Cr) · (₹407 Cr) negative working capital * **Exceptional Loss:** ₹30 Cr from Conti legal case ## B. Revenue Growth * **Record Top-Line Performance:** Strong double-digit revenue growth driven by improved execution in domestic EPC and availability of non-fund-based credit limits. * **Scaling Momentum:** Q3 marks highest-ever third-quarter revenue since listing, reflecting sustained project delivery ramp-up. ## C. Gross & EBITDA Margins * **Mixed Margin Trends:** EPC margin improvement offset by **BOS vs. turnkey order mix**, with BOS delivering higher percentage margins; absolute profitability rising with scale. * **EBITDA Expansion on Operational Basis:** Robust operational leverage drove strong EBITDA growth, with management guiding for **5%+ stabilized EBITDA margins** going forward. * **O&M Margin Pressure:** O&M gross margin dipped to **18%** due to one-off defect liability costs in Australia, below historical **20–24%** range; expected recovery to trend levels. ## D. Interest & Overheads * **Elevated Interest Costs:** Sharp increase in interest expense due to **full-quarter impact of ₹500 Cr IREDA loan**; additional ₹100 Cr drawn, sustaining high charges into Q4 before easing in FY27. * **Overhead Discipline:** Recurring overheads stable at **~₹93 Cr**, with cost rationalization targeting **~₹90 Cr run rate**, though conservative estimate of **₹100 Cr** maintained. * **Exceptional Costs Resolved:** Conti-related legal and exceptional expenses now behind, with management signaling resolution of unforced issues and improved financial stability ahead. ## E. Balance Sheet * **Strong Liquidity & Credit Profile:** Raised **₹2,500 Cr in fresh fund and non-fund-based limits**; credit rating retained despite volatility. * **Tax Loss Carryforward Benefit:** Loss from Conti case triggered **tax-negative position**, activating **carryforward of losses** to offset future profits and eliminate near-term tax liabilities. --- # 2. Order Book & Demand ## A. Key Figures * **New Order Inflows:** **₹6,929 Cr** FY26 to date · **₹3,086 Cr** in Q3 (4 projects) * **Revised Order Guidance:** **>₹11,000 Cr** FY26 (>60% YoY) * **Unexecuted Order Book:** **₹10,413 Cr** (75% domestic) * **Adani Framework Order:** **₹1,381 Cr** (>1 GW) ## B. New Order Inflows * **Outperformance & Raised Guidance:** Strong order momentum has led to a significant upward revision in full-year guidance, reflecting leadership position and structural tailwinds. * **Strategic Order Discipline:** Company maintains selective bidding approach, prioritizing **profitable and strategically aligned projects** amid aggressive competition from new EPC entrants. * **Major Client Frameworks Driving Visibility:** Long-term agreement with Adani provides recurring order visibility, particularly in Khavda, with performance-based follow-ons expected. * **Upside Beyond Guidance:** Active discussions with Reliance on multiyear, multigigawatt rollout could yield **additional orders outside current FY26 projections**. ## C. Unexecuted Order Book * **Robust Revenue Backlog:** Healthy and growing order book supports multi-quarter revenue visibility, with commercial structures now reducing commodity and balance sheet risks. * **Geographic Diversification with Quality Focus:** International exposure includes advanced-stage European and South African projects, increasingly with clients possessing **strong balance sheets** and **de-risked project fundamentals**. * **International Revenue Target Set:** Management targets **15–20% of order book/revenue from international markets**, while maintaining domestic focus. * **Near-Term Order Conversion:** **₹4,000 Cr** in orders in final negotiation stage expected to close in Q4, supplementing current backlog. ## D. Bid Pipeline * **Structural Shift in Client Preferences:** Move toward long-term engagement frameworks with top-tier EPCs favors established players and supports repeat project flow. * **Sustained Market Tailwinds:** India’s renewable pipeline remains strong with **62 GW tendered last year** and **40+ GW annual installations** expected going forward. * **Confidence in Pipeline Conversion:** Despite flat bid pipeline, company is L1 bidder on major PSU project and advancing talks with private and international IPPs to secure **₹4,000 Cr** in upcoming orders. --- # 3. Project Execution & Capacity ## A. Key Figures * **Project Value:** **₹1,381 Cr** domestic gigawatt-scale order · **~$7 Mn** South Africa 240 MW project * **Capacity Pipeline:** **>100 GW** planned PV capacity in Kutch region * **Execution Scale:** **1 GW/year** minimum domestic execution target · **2–3 int’l projects/year** expected * **Ongoing Projects:** **4 international projects** (2 SA, 1 Spain, 1 Italy) nearing completion ## B. Domestic Execution * **Accelerated Timelines:** Confident in delivering gigawatt-scale projects in **12 months or less**, setting a new benchmark for speed in the Kutch region. * **Strategic Scaling:** Current execution of a major gigawatt-order with plans to sustain **minimum annual 1 GW delivery**, supported by internal capacity build-up. * **Supply Chain Resilience:** Post-NTP, supplier tie-ups are fast-tracked to prevent module procurement delays and ensure on-time project delivery. ## C. International Projects * **Selective Global Expansion:** International focus remains disciplined—only pursuing opportunities with **superior margins** and favorable terms, not volume-driven growth. * **Forex Risk Mitigation:** South Africa contracts are **USD-denominated**, eliminating currency risk and ensuring stable cash flows. * **Near-Term Completion Pipeline:** Four overseas projects in South Africa, Spain, and Italy expected to close within **3–4 months**, freeing up execution capacity. * **Reliance Project Momentum:** Infrastructure development underway, with **increased activity anticipated by quarter-end**. ## D. Gigawatt-Scale Delivery * **Flagship Project Win:** Secured a **BoS package for 3 solar projects** at Khavda RE Park from Adani Green, part of a world-scale renewable complex. * **Domestic Supply Confidence:** Industry’s **125 GW module and 60 GW cell capacity**—led by Adani, Reliance, Waaree, Vikram—expected to meet demand and stabilize DCR pricing. --- # 4. Segment & Product Mix ## A. Key Figures * **BESS Order Value:** **₹170 Cr** (790 MWh project) (>10% margin expected) * **Project Pipeline Scale:** **~10 GW** of projects under execution domestically and overseas ## B. EPC vs O&M Mix * **Risk Resilience:** Business remains insulated from order disruptions due to predominantly **BOS-based project exposure**, with minimal reliance on full EPC except for one order. ## C. BESS Order Performance * **BESS Momentum:** Secured two major domestic wins in Q3—including a **210 MW project from a private IPP** and a 790 MWh BESS order from Serentica—validating strong market positioning post-JSW. * **De-risked Execution Model:** BESS projects structured with **client-supplied batteries**, limiting exposure to battery cost volatility and supply chain risks. * **Attractive Margins:** New BESS order expected to deliver **>10% margins**, aligning with core EPC profitability and signaling healthy return potential. ## D. Client-Specific Setups * **Strategic Client Expansion:** Multiyear framework agreement with **Adani Green Energy** deepens long-term visibility; dedicated operational teams in place for key clients. * **Scalable Operating Model:** Separate execution setup to be established for **Reliance New Energy**, reflecting project scale and strategic importance. --- # 5. Risks & Execution Challenges ## A. Legal & Indemnity Matters * **Indemnity Clarity:** Full indemnity proceeds received from Mr. Khurshed Daruvala; Shapoorji Group payment expected by January 31, resolving a major contingent liability. * **Conti Case Impact:** Loss recognized due to interim court order on legal fee reimbursement; case excluded from Reliance indemnity as it involved a post-investment subcontractor issue. * **No Hidden Liabilities:** Management confirms **no undisclosed liabilities** (even up to INR5–10 Cr), no pending losses outside promoter coverage, and **no foreseeable balance sheet risks**. * **B. S. Litigation Status:** Pending cases pertain only to bank guarantee encashments; company has filed challenges and expresses **high confidence in favorable outcome** based on legal counsel. * **Legal Cash Outgo Covered:** **INR750 Cr** in legal-related cash outflows fully covered under existing indemnity arrangements. ## B. O&M Defect Liabilities * **Isolated Margin Impact:** O&M margin pressure in the quarter stemmed from an **unexpected defect liability in Australia** involving rare panel failure, leading to downtime, penalties, and airfreight costs. * **No Systemic Issues:** No operational deficiencies or client claims reported; historically stable O&M margins supported by robust SOPs and risk controls. * **Strategic BESS Opportunity:** India’s BESS capacity stands at **5 GWh (Jun-25)** against a projected need of **>7 GW by FY27**, creating a structural gap and long-term growth runway. ## C. Module Price Volatility * **Near-Term Price Shield:** Current module orders are locked in; price risk for pending projects transferred to customers until NTP, with procurement window of **3–4 months post-NTP** minimizing exposure. * **DCR-Driven Pricing Shifts:** Domestic Content Requirement (effective Sep-25) mandates ALMM-compliant modules, potentially increasing tariffs and LCOE; DCR prices recently dropped to **INR17/W** but face near-term volatility from rising cell/wafer costs. * **External Price Pressures:** Non-DCR module prices rose **5–2 cents** due to withdrawal of Chinese export rebates; stabilization expected, while Adani agreement insulates key projects from module, land, and transmission risks. * **PPA Delay Risks:** **43 GW of delayed MNRE PPAs** threaten sector momentum and India’s **500 GW renewable target**, though company’s diversified order book provides resilience. --- # 6. Guidance & Outlook ## A. Key Figures * **Revenue Growth Guidance:** **15–20%** FY26 vs. FY25 · **similar growth rate** expected for FY27 * **Gross Margin Guidance:** **8–10%** full-year range, consistent with prior outlook * **O&M Margin Guidance:** **20–24/25%** maintained; incident deemed non-recurring ## B. Revenue & Margin Guidance * **Confident Forward Outlook:** Management affirms full-year revenue and margin guidance, with stable gross margins supported by normalized project mix and execution discipline. * **Interest Cost Phasing:** Non-linear interest expense profile expected, peaking in Q4 due to full drawdown of debt, followed by stabilization into next fiscal year. * **Margin Resilience:** O&M margins upheld despite near-term volatility, with management emphasizing structural strengths and isolated nature of recent pressures. ## C. Order Inflow Projections * **Near-Term Order Visibility:** India expected to tender **6–7 GW** in Q4, with active pipeline participation and growing international opportunities on favorable terms. * **Multi-Year EPC Scalability:** FY27 third-party EPC pipeline projected to exceed **30 GW**, underpinned by standardized programs and integrated planning that favor scale and execution maturity. ## D. FY27 Growth Trajectory * **Strategic Expansion Enablers:** Renewable ecosystem maturing across manufacturing, storage, and green hydrogen/ammonia, creating diversified growth vectors beyond core EPC. * **Execution Momentum Building:** Management confirms activity ramp-up by current quarter-end or early Q1, with formal guidance expected once traction is established.