Growth pace misses FY29 target; margins compressed 57% in PAT despite 12% revenue uptick

Revenue +12% YoY, PAT -57.5% YoY; NPM collapsed to 5.1% from prior levels

Confirmed 58% revenue growth in H1 FY27 vs H1 FY26; 70% not stated on call

Delivered 5.1% NPM, 8.6% OPM; solar cell facility still in trial, results 'visible next quarter'

Order book ₹750Cr confirmed; KUSUM still undergoing 'revisions', launch date cannot be predicted

Raw materials up 3% QoQ; cost cuts achieved 2% reduction; but PAT down 57.5% YoY indicates margin compression beyond 1%

Prior call promised margin improvement as geopolitical pressures ease; delivered NPM 5.1%, down from prior ~11–12% levels. No explicit cut, but trajectory worse.

Q1 call expected approval in FY27; now management says 'cannot predict launch,' still in 'revisions,' but confident on execution elsewhere (Magel Tyala, non-KUSUM orders).

Announced in prior quarter; now 500 MW commenced trial production at one-and-a-half month horizon to commercial. Margin impact deferred to next quarter.

Guidance ₹1,500–1,700Cr capex through Sep 2027 maintained at 50–50 split FY27–FY28. Current debt ₹830Cr expected below ₹500Cr by YE FY27 (from October collections).

Gave 7% growth in installations; 68% capacity utilization. Declined to share absolute numbers.

Confirmed 58% growth H1 FY27 vs H1 FY26; market positive, distribution expanding. Did not quantify FY27–28 targets.

Raw material costs increased 3% QoQ; cost optimization reduced 2%, net 1% EBITDA drag. Deferred quantification until KUSUM clarity and price stability.

Fully confident, will come this quarter and next quarter will see results. Stake pumps on certainty.

Order book covers quarter easily; KUSUM expected to unlock next quarter. Sufficient visibility with Magel Tyala and exports. No major concern on order side.

Current ₹830Cr; expected below ₹500Cr by year-end. Collections ₹400Cr received in October post-quarter. Average 7% interest rate from AA- credit rating.

Acknowledged delay risk; confirmed company delivering strong momentum without KUSUM (Magel Tyala, non-KUSUM orders). 68% utilization; capacity expansion underway. Confidence in continued growth.

Total capex ₹1,700Cr; ₹200Cr spent on 2.2 GW solar cell plant, ~₹400Cr remaining in H2. Cell facility at 500 MW trial phase; commercial output expected one-and-a-half months. Trial production commenced.

Company not dependent on KUSUM; Magel Tyala and other orders providing momentum. Margins improve as solar cell backward integration yields, raw materials stabilize, and KUSUM orders scaled. Deferred visibility to next quarter.

~1% realization impact from sales mix. Will improve once next tender price is known. Margins improve via higher sales realizations, commodity normalization, and integrated plant cost advantage. Deferred quantification.

Debt ₹830Cr; average 7% rate (AA- rating). Expected below ₹500Cr by year-end from October receipts. Interest cost stable; debt reduction on track.

Actively targeting Africa; provided complete kits; strong potential. Uganda project not fully completed yet; selling incomplete systems to most non-Africa markets. Working on full systems projects over next 6 months.

Reaffirmed in call; trajectory at +12% YoY compounds to ~₹1.25Tr FY29, far short of ₹5Tr. Execution risk from KUSUM delay and backward-integration scale.

Delivered 5.1% NPM, 8.6% OPM; no mechanism in place yet (solar cells trial, pricing flat). Aspirational, not quantified by period.

₹200Cr spent on 2.2 GW solar cell plant; ~₹400Cr remaining H2 FY27. On track; 2.2 GW facility completion FY28, revenue contribution post-Mar 2028.

Raw material inflation (3% QoQ) outpacing cost cuts (2%). Pricing power absent (single tender, limited flexibility). PAT down 57% YoY despite 12% revenue growth signals inverted leverage.

PM-KUSUM 2.0 still undergoing revisions at PM level; management cannot predict launch. Originally expected FY27, now Q3 at earliest. Delay >6 months confirmed. Order intake lumpy; revenue visibility dependent on clearance and tender pricing.

500 MW solar cell facility in trial production; expected one-and-a-half month ramp to commercial. Zero revenue contribution yet. Margin uplift thesis (15–17% claimed) depends entirely on this unproven scale-up and cost advantage.

Management admits 'only one active tender' and 'pricing flexibility remains limited in the solar business.' Tender-driven orders introduce lumpy revenue timing and price dictation by buyers. Magel Tyala marked at 25% concentration cap; L1 status helps but no guarantee.

₹5,000Cr FY29 target at risk. +12% YoY growth compounds to ~₹1.25Tr FY29 (4x shortfall). Backward integration, KUSUM, and rooftop/EV ramps must accelerate dramatically; no evidence of 4–5x multiplier catalyst.