Insolation Energy Ltd Q1 FY27 Earnings Analysis

- FY27 revenue growth target: 50% to 60% growth expected from module segment, aiming to maintain or exceed FY26's ~60% growth rate. - FY28 revenue target: More than INR 5,000 crores with full-scale operations starting April 1, 2027. - Production volume for FY27: Targeting 2 gigawatt production and sales from module line, with cell manufacturing sales additional. - Cell capacity ramp-up: 4.5 gigawatt TOPCon cell line starting operational in Q4 FY26, full capacity utilization by Q1 FY28. - Future volume targets: Non-DCR capacity of 2 to 2.5 gigawatt with DCR capacity additional to this. - Backward integration into cell and aluminum frame segments aims to improve margins and support volume growth. - Order book for current year: 1.6 to 1.8 gigawatt with MOUs in progress for next year’s ALMM Part 2 related sales.

- EBITDA margins expected to be 14%-15% for FY26, expanding to 20%+ for FY27-'28 with cell line integration. - Revenue growth target of 50%-60% in FY27, with potential for higher growth subject to market conditions. - FY28 revenue target above INR 5,000 crores, with EBITDA margin of 20%+ if full cell line is operational. - Cell manufacturing capacity ramp-up starting Q4 FY26, with full utilization expected by Q1 FY28, contributing to margin improvement. - Backward integration (cell line, aluminum frame) expected to improve margins and operational efficiency. - Profit After Tax (PAT) grew 59% YoY in FY26; poised for continued growth supported by capacity expansion and operational leverage. - Focus on maintaining prudent leverage, optimizing working capital, and disciplined capital allocation for sustainable profit growth.

- **Cell manufacturing plant**: 4.5 GW capacity with total capex of INR 1,500 crores, expected operational from Q4 FY27. - **Wafer and Ingot manufacturing**: Planning a 4.5 GW facility with estimated capex of INR 1,000-1,200 crores; DPR under progress, finalization expected within 2-3 months. Land (70,000 sqm) secured in Narmadapuram. - **KUSUM IPP projects**: Capex of approximately INR 1,000 crores targeting commissioning of 300 MW projects in FY27. - **Aluminium frame factory**: Backward integration mainly for internal use to improve margins; contributes to EBITDA growth. - **BESS (Battery Energy Storage Systems)**: Currently in evaluation phase; no capex planned as of now. - **Funding**: Majorly funded through internal accruals; limited debt considered. IREDA loan sanctioned for INR 1,134 crores, with INR 340 crores drawn till Mar 2026. - **Overall FY27 capex**: Expected around INR 2,500 crores combining cell line and KUSUM projects.

- The company has taken a loan of INR1,134 crores from IREDA for its cell line expansion, with INR340 crores already drawn down. - Total capex planned for FY27 is around INR2,500 crores (INR1,500 crores for cell line and INR1,000 crores for KUSUM projects). - Peak debt for FY26-27 is expected to be around INR1,500 crores. - The company prefers funding capex largely through internal accruals and cash flow from operations, minimizing debt usage. - If needed, a small part of debt may be taken for wafer and ingot capex, but majorly from internal accruals. - No explicit mention of new equity fundraising in the call. - The focus remains on maintaining prudent leverage while investing in strategic capacity expansion. In summary, current fundraising involves utilizing existing IREDA loans and internal accruals, with a peak debt target of around INR1,500 crores for ongoing capex; no new equity raise announced.

- Current order book size for FY26 is approximately 1.6 to 1.8 gigawatts. - About 50% of the total capacity for FY27 is already booked. - Remaining orders are being refilled monthly through a large distribution network across Rajasthan, Delhi NCR, Haryana, MP, and Uttar Pradesh. - Orders come from utility sector (65%), KUSUM projects (15%), PM Surya Ghar (5%), OEM (5%), and miscellaneous (10%). - Large EPC orders in the range of 100-500 megawatts are being processed currently. - MoUs signed and in pipeline for ALMM Part 2 cells and DCR cell sales expected within 1-2 months. - The non-DCR module production target is 2 to 2.5 gigawatts, with additional capacity from DCR cells through tie-ups.