Australian Premium Solar (India) Ltd Q3 FY26 Earnings Analysis

- The company expects strong growth driven by increasing demand for renewable energy in India. - Total income for H1 FY26 showed an 84.5% YoY growth, indicating ongoing momentum. - They project 35-40% of revenue from the solar pump segment in the current financial year. - EPC division (C&I segment) anticipates 15-20% growth, expanding beyond Gujarat to Maharashtra and Rajasthan. - Wholesale distribution is expected to contribute about 50% of revenue, expanding to multiple new states. - Capacity expansion to 1.2 GW (800 MW existing plus 400 MW coming soon) will support higher volumes. - The company targets a 75%+ CAGR for the current and coming financial years. - Diversified portfolio and backward integration with a 4 GW solar cell manufacturing facility (starting with 1 GW phase) aims to sustain long-term revenue growth. - Sales in residential, pumps, and ground-mounted projects are expected to grow steadily over the next three to five years.

- Company expects better financial performance than last year with sustained or slightly improved margins over the next few quarters. - EBITDA margin improved to 14.29% in H1 FY26 from 11.88% last year; PAT margin expanded by 148 basis points to 9.44%. - Earnings per share (EPS) for H1 FY26 increased to 14.19 from 6.63 YoY, showing strong growth. - Pump segment margins steady at 13-15%, retail at 15-18%, wholesale around 10-11%. Margins expected to sustain over next 3-4 quarters with slight potential decline in wholesale margins due to competition. - Long-term growth anticipated from capacity expansion to 1.2 GW by Q1 FY27 with further CapEx plans including solar cell manufacturing. - Revenue CAGR expected above 75% for current and coming year due to market expansion and product diversification. - Overall, company is confident in maintaining and improving profitability through operational leverage and vertical integration.

- APS is advancing backward integration by adding a 4 GW solar cell manufacturing facility. - The first phase includes a 1 GW machinery setup requiring INR 900-950 crore CapEx. - Funding for this CapEx is expected to be 30% equity and 70% debt. - The solar cell manufacturing facility land has been identified in Gujarat; water approvals are in process. - APS already has long-term contracts for local solar cell supply and is eager to start solar cell manufacturing soon. - APS is also interested in battery energy storage, monitoring its maturation especially from international markets. - Current capacity includes an 800 MW facility (400 MW TopCon line commissioned recently plus 400 MW monocrystalline), with another 400 MW facility expected by Q1 of next financial year, reaching a total 1.2 GW capacity. - Expansion of sales and marketing teams is underway to support growth, including plans to enter new states.

- The company plans a CapEx of INR 900 to 950 crore for the first phase of its 4 GW solar cell manufacturing facility. - Funding is expected to be 30% from internal business sources and 70% through debt. - No specific mention of equity fundraising was made in the discussed pages. - The company maintains a healthy debt-to-equity ratio of 0.05 as of September 2025, indicating prudent capital management. - The focus currently seems on debt funding for expansion rather than equity.

- Solar Pump segment order book: INR 310 crores, executable over the next 4 to 6 months. - Distribution segment: Orders are taken monthly; no fixed long-term order book due to price fluctuations. - Retail segment: Receives orders daily; operates on a demand basis. - Capacity constraints previously limited order execution to about 400 MW. - Current capacity: 400 MW monocrystalline + 400 MW TOPCon. - Poly capacity (200 MW) was sold due to low demand. - Existing order book primarily covers short-term near 4-6 month horizon in the pump segment; other segments operate on rolling demand. - No specific figures given for future expected orders, but expanding states and marketing efforts indicate growth in retail and solar pump orders.