Emmvee Photovoltaic Power Ltd (EMMVEE) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day, and welcome to
Moderator: Photovoltaic Power Limited Q2 FY '27 earnings conference call hosted by Radhika As a reminder, all participant lines will be in 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 is being recorded. Please note that anything said on this call that reflects the outlook towards the future which can be construed as a forward-looking statements must be viewed in conjunction with the risk that the company faces. A copy of the disclosure is available on the Investor Relations section of the website as well as on the stock exchanges. Kindly also note that the audio of the earning call is a corporate material of Emmvee Limited and cannot be copied, rebroadcasted, or attributed in the PR media without specific and written consent of the company. To give you an in-depth understanding of the company and answers to all your queries, we have from the management side today Mr. Manjunatha D.V., Chairman and Managing Director; Mr. Suhas Donthi Manjunatha, President and CEO; Mr. Pavan Kumar Jain, Chief Financial Officer. I now hand the conference over to Mr. Manjunatha. Thank you, and over to you, sir.
Manjunatha D.V. (Emmvee Photovoltaic Power Ltd): Thank you. Good evening, everyone. I extend a warm welcome to all our investors, analysts, and shareholders joining us Emmvee's Q2 and H1 financial year '27 earning conference call. I am pleased to share that Emmvee has delivered its strongest half yearly financial performance to date. For the first half of financial year '27, our revenue from operation grow by 45% year-on-year to 3,132 crores, EBITDA increased by 47% to 1,105 crores. The profit after tax grow by 79% to 762 crores. We have maintained EBITDA margins of approximately 35%, demonstrating the strength and consistency of our operating performance. These results reflect the manufacturing capabilities we have developed over nearly two decades. Our continued focus on technology and product reliability and the trust we have built with our customers. Importantly, our performance has remained consistent with the guidance we provided. Even as the industry transitioned through changes in the implementation of ALMM regulation and geopolitical issues, our focus has remained on executing our business plans, strengthening our manufacturing capabilities, and delivering sustainable growth. Let me know share our perspective on the Indian solar industry. Indian solar sector continued to experience significant growth, supported by increasing electricity demand, renewable energy commitment, and the continued development of solar project across multiple segments. The first half of calendar year '27 has witnessed witnessed India's highest ever solar installation for six months period. Based on the current installation trajectory, domestic module demand is running a pace that could translate into approximately 64% year-on-year growth for this year. This is a significant development for the domestic manufacturing industry. We are seeing demand across utility scale projects, commercial, industrial installation, rooftop solar, and government-supported programs. In addition, the growing adapt adoption of hybrid, round-the-clock, and firm renewable energy project is in creating a more module demand as the AC DC ratio is increased in these solar deployments. As India's energy requirement grow, we expect solar to continue playing a increasingly important role in the country's electricity generation mix. At the same time, the domestic manufacturing ecosystem is evolving. The implementation of ALMM-II of our solar cell is an important step towards strengthening India's India's domestic manufacturing capabilities. While certain transitional provisions have been introduced, the broader direction of the policy continued to support greater domestic value addition and deeper integration across solar manufacturing supply chain. Emmvee is well positioned to participate in the transition, supported by our existing TOPCon cell manufacturing capabilities, established module manufacturing operations, and continued investment in integration. Our inclusion in [inaudible] TOPCon cell
Manjunatha D.V. (Emmvee Photovoltaic Power Ltd): under ALMM List II further strengthen our ability to serve evolving customer requirements. Coming to our ongoing expansion, our 6 gigawatt integrated TOPCon cell and module manufacturing project remain on track. We expect the commissioning of the module manufacturing facility by December, followed by cell manufacturing facility by March '27. Upon completion our total installed manufacturing capacity will increase to approximately 16.3 gigawatt of modules and 8.9 gigawatt of cell. An important aspects of one our manufacturing strategy is how this capacities have been designed to operate together. Cell and module manufacturing have different operating operating characteristics. Cell manufacturing can achieve significantly higher utilization level, whereas module manufacturing requires greater flexibility to accommodate different different product configuration, customer specification and production schedules. When we consider the maximum achievable production for both the operations, our 16.3 gigawatt of module capacity and 8.9 gigawatt of cell capacity are designed to deliver broadly equivalent annual output. This is the central to our integrated manufacturing strategy. Our objective is to optimize the utilization of our and strengthening our cost competitiveness. We believe that manufacturing integration must be evaluated not simply by installing capacity, but by the ability of different stages of production to operate efficiently together. Beyond our ongoing expansion, we are also progressing with our plans for backward integration into ingot and wafer manufacturing. Our current plan envisages a 9 gigawatt facility developed in two phases of 5 gigawatt and 4 gigawatt aligned with our future cell manufacturing requirement. The timing of this investment will be guided by the regulatory developments, particularly ALMM List III, prevailing market condition and long-term economic viability. Our approach to expansion remains disciplined. We believe the next phase of growth in Indian solar manufacturing will increasingly depend on technological capabilities, manufacturing efficiency, product reliability and supply chain integration. These are areas in which EMMVEE has consistently investing, invested over the years. Our collaboration with leading research institutions, our experience in TOPCon cell manufacturing and our focus on product quality provide a strong foundation for the future. As we enter the second half of financial year '27, our priorities remain clear. We will continue to execute our expansion plans, strengthen our manufacturing capabilities, maintain operating discipline and build our relationship with customers. We are encouraged by the growth opportunities in India solar market and remain committed to creating sustainable, long-term value through technology, quality and responsible investment. I would like to thank our employees, customers, suppliers, financial institutions, shareholders and all our stakeholders to for their continued support and confidence in EMMVEE. With that, I will hand over to Suhas, who will take you through the our financial and operational performance in a greater detail. Thank you.
Suhas Donthi Manjunatha (Emmvee Photovoltaic Power Ltd): Thank you, Chairman. Good evening everyone, and thank you for joining us today. As the Chairman highlighted, H1 FY 2027 has been our strongest half-yearly performance to date. What is particularly particularly encouraging is not only the growth we have delivered, but also the consistency of our operating performance and the quality of our earnings. We have maintained strong profitability, improved cash generation, and continued to execute our business plans while investing in the next phase of manufacturing expansion. Let me take you through our financial and operational performance. Starting with the second quarter, revenue from operations for Q2 FY 2027 stood at 1,576 crores representing growth of 39% year-on-year. EBITDA increased by 39% to 557 crores, while our EBITDA margin remained strong at approximately 35.3%. Profit after tax increased by 61% year-on-year to 382 crores, with PAT margins improving to approximately 24% compared with 21% in the corresponding quarter last year.
Suhas Donthi Manjunatha (Emmvee Photovoltaic Power Ltd): the first half performance. Revenue from operations grew by 45% year-on-year to 3,132 crore. EBITDA increased by 47% to 1,105 crores, while our EBITDA margin remained at approximately 35%. Profit after tax grew by 79 9% to 762 crore. These numbers demonstrate the consistence consistent growth in our business and our ability to maintain operating profitability as we scale. I would particularly like to highlight the quality of our earnings during the first half. Our EBITDA growth has remained broadly in line with the revenue growth reflecting the consistency of our operating margins. At the same time, profit after tax has grown significantly faster than revenue, supported by improved financial efficiency and substantial reduction in finance cost. Finance cost during Q2 stood at approximately 9.5 crores, compared with 55.2 crore in the corresponding quarter last year. This reflects the strengthening of our balance sheet following the deployment of IPO proceeds towards debt repayment. We have also seen a meaningful improvement in our operating cash generation. Net cash generated from operating activities increased to approximately 410 crores in H1 of FY '27, compared to 121 crore in H1 of FY 2026. This represents an improvement of approximately 239% year-on-year. For us, this is an important indicator as we continue to invest in expanding our manufacturing capabilities. Our focus is not only on is not only on growing revenue and profitability, but also on converting operating performance into cash generation and maintaining financial discipline. Moving to our manufacturing operations, during Q2 FY '27, solar module production increased by approximately 40% year-on-year to 952 MW, compared with 682 MW in the corresponding quarter last year. Solar cell production increased by approximately 61% to 513 MW compared with 319 MW in Q2 FY '26. Our cell manufacturing operations continued to perform strongly, achieving 89% effective capacity utilization during the quarter. This reflects the operational capabilities we have established in TOPCon cell manufacturing and the continued improvement in production efficiency. Module capacity utilization stood at approximately 44%. As the Chairman explained, cell and module manufacturing have different operating characteristics and achievable utilization levels. Our existing module manufacturing capacity provides us with significant flexibility to accommodate different product specifications and customer requirements while supporting future volume growth. Our focus remains on optimizing production across our facilities, improving operational efficiency, and maintaining the product quality and reliability that our customers expect from Emmvee. Coming to our order book, as of 30 30th September 2026, our order book stood at approximately 10.4 GW, supported by new order inflows of approximately 1.5 GW during the quarter. Our order book continues to be diversified across independent power producers, commercial and industrial customers, and other market segments. We remain focused on building long-term customer relationships and maintaining a healthy balance between order inflows, manufacturing capabilities, and delivery commitments. An important part of our commercial strategy is product differentiation. We believe that solar modules should not not be evaluated solely on price. Product quality, energy yield, long-term reliability, and warranty performance are important considerations for customer making investments in assets expected to operate for 25 to 30 years. Our experience in manufacturing and continue and our continued investment in technology and quality remain central to our customer proposition. Turning to our balance sheet, as of 30th September 2026, our net debt net debt to equity ratio stood at approximately 0.12 times. During the first half, we continue to invest significantly in our ongoing manufacturing expansions. Our balance sheet reflects this investment cycle while our net leverage remains relatively low. We continue to place considerable emphasis on working capital management, particularly inventory planning, receivables, and cash generation. As our operations scale, we are focused on ensuring that our working capital requirements remain aligned with revenue growth, avoiding unnecessary capital lock-up.
Suhas Donthi Manjunatha (Emmvee Photovoltaic Power Ltd): aligned with production schedules and customer deliveries. From a capital allocation perspective, our priority is to complete the ongoing integrated expansion efficiently and ensure that new manufacturing assets contribute to sustainable profitability and returns. Looking ahead, our priorities for the remainder of FY 27 remain straightforward. First, we will continue to maintain operating discipline and focus on manufacturing efficiency across our existing facilities. Second, we will work towards the timely commissioning and ramp up of our new integrated manufacturing capacity. Third, we will continue to strengthen our customer relationships, execute our order book and improve our product and technology capabilities. And finally, we will remain focused on cash generation, working capital efficiency, and maintaining an appropriate balance between growth investments and financial strength. India's solar manufacturing industry is entering an important phase of growth and integration. We believe our manufacturing experience, established track record, capabilities and focus on quality and reliability provide us with a strong foundation to participate in this opportunity. Our objective is to translate this opportunity into consistent execution, profitable growth and sustainable returns on our investments. With that, I would like to thank everyone for joining us today. We can now open the floor for questions. Thank you.
Moderator: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Apurva Bahadur with IIFL Capital. Please go ahead.
Apurva Bahadur (IIFL Capital): Yeah. Hi, sir. Hi, Suhas ji. Thank you for the opportunity and congrats on another strong quarter. In your presentation, you have mentioned that the plan for 6 GW integrated cell module capacity is progressing well. Can you give us some update on that? Have you awarded tenders for the machines and all? What's the progress? By when should we expect the first cell out from there?
Suhas Donthi Manjunatha (Emmvee Photovoltaic Power Ltd): Yeah, absolutely. So the update on the new expansion is going extremely well. I think we had we had long ordered all the equipments for the for the project. Construction is going at full swing. Pretty much the out of the hard cost pretty much all items critical items have already been ordered other than the small ongoing items that will be there. The module line, as Chairman mentioned in the in the speech, that it will be ready by December '26, whereas cell line by March '27. So you should expect the first cell out in that month, like commissioning in that month. So first cell out maybe like
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