Revenue strong but profit collapses; execution risk evident

Q2 EBITDA margin 15.1% achieved; PAT down 30% YoY despite revenue +36.5%

Down from 922 MW in Q1 (50% drop); blamed on land/connectivity delays

Book confirmed at ₹5,500+ Cr; conversion rate slowed sharply, creating execution risk

Prior call: maintain FY26 execution (~₹3,300 Cr). Q2 delivered 456 MW (vs prior 922 MW), indicating execution capacity severely hampered by land delays.

ASPSL acquisition debt drove interest costs from ₹9.59 Cr (Q1) to ₹36.83 Cr (Q2), a 4x increase, compressing net profit despite operational margin hold.

Prior guidance ₹5,300 Cr order book; now ₹5,500 Cr. Marginal +3.8% increase. 1.7 GW new orders added in Q2 but execution rate slowing.

T&D vertical now >₹2,200 Cr order book (up from minimal prior); new segment expanding with Azamnagar facility. But margin profile 9–10% vs 15%+ solar, a drag.

Land and connectivity handover delays from developers. Won 1.7 GW new orders; next 3-4 quarters will see ramp from ₹5,500 Cr order book.

Margin 9–10% initially but will improve with scale and synergies from Waaree association in coming quarter. Solar EPC maintains 15%+.

Solar EPC > 15% margin. Estimate 15% blended at this stage; will improve. T&D drag temporary.

Depreciation and interest from acquisition debt. With time and synergies, ASPSL contribution will offset. Debt reduction in progress.

Solar EPC is key driver (~₹1,300 Cr order book). T&D (~₹2,200 Cr) is supporting infrastructure; both will grow for next 2-3 years.

Delays are temporary (land handover, connectivity). No quantified risk. Orders will execute in next 3-4 quarters.

BESS is new opportunity opening up alongside solar. Margin profile depends on project specifics. Company will maintain threshold margin.

No constraints seen. Non-fund-based limits available; et cetera, et cetera. Ready to bid for new projects.

Debt from acquisition; will reduce going forward through operating cash flow. No formal leverage target given.

Majority from bilateral discussions with developers. Repeat customer base growing; groups diversified.

Dependent on land/connectivity clearance; execution rate slowing (456 MW vs 922 MW prior Q)

Q2 delivered 15.1%; claimed maintainable. T&D drag 9-10% partially offset by solar EPC >15%

Q2 execution 456 MW vs 922 MW Q1 (50% drop). Land/connectivity handover delays blamed on developers. Order book ₹5,500 Cr conversion timing uncertain.

PAT down 30% YoY to ₹81.5 Cr despite revenue +36.5%. Finance costs exploded ₹36.83 Cr (Q2) vs ₹9.59 Cr (Q1) from ASPSL debt. T&D segment at 9-10% margin vs solar 15%+.

ASPSL acquired; now consolidated. ₹2,200 Cr order book but margin profile 9-10% vs target >15%. Synergy benefits claimed but unquantified and timing uncertain.

Majority orders from bilateral discussions with developers. Repeat customer base growing but diversification incomplete. Fresh order inflow in Q2 described as 'muted' by one analyst.

ASPSL acquisition financed 75% via debt. Debt increased sharply; payback timeline informal. No specific leverage target or debt reduction schedule provided.