Ladies and gentlemen, good day and welcome to the Q2 and H1 FY26 Earnings Conference Call hosted by Shakti Pumps India Limited. As a reminder, all the participants' 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 telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikas Verma from Ernst & Young LLP. Thank you, and over to you, sir. Please, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our business risk that could cause future result performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements. To take us through the financial results and developments and to answer your questions today, we have the senior management of Shakti Pumps India Limited, represented by Mr. Dinesh Patidar, Chairman, Mr. Ramesh Patidar, Managing Director, Mr. Ramakrishna Sataluri, CEO, Shakti Energy Solutions Limited, Mr. Dinesh Patel, Group CFO, and Mr. Ravi Patidar, CS and Compliance Officer. We will start the call with a brief overview of the past quarter by Mr. Dinesh Patidar. I will now hand over the call to Mr. Dinesh Patel. Over to you, sir. Thank you, Vikas. Good afternoon, everyone, and thank you for joining us on the call today. Despite a challenging environment, largely led by extended monsoon, we continued to display strong execution capabilities. We delivered a consolidated revenue of INR 666 crore in Q2 FY26, among the highest in our history, and INR 1,289 crore for H1 FY26, up 7% YoY. Our solar pumps business remains a cornerstone, with 39,861 installations in H1 and 22,304 in Q2, growing by 19% and 21%, respectively. While weather and GST 2.0 reforms moderated the execution pace in some states, our order book of INR 1,300 crore, as of 7th November 2025, and a strong pipeline across Maharashtra, Madhya Pradesh, Rajasthan, and other states, positioned us for sustained growth. Beyond solar pumps, emerging businesses are gaining momentum. Retail sales surged 67% YY to INR 43 crore, supported by over 100 exclusive outlets nationwide. Our solar rooftop segment expanded into Rajasthan, Uttar Pradesh, and Maharashtra, leveraging government initiatives like PM Surya Ghar Muft Bijli Yojana. Early feedback from dealer engagements has been encouraging, and we see this as a significant growth lever over the next 12 months. Our CapEx plan remains firmly on track, including doubling pump and motor capacity and stabilizing a 2.2 gigawatt solar DCR cell and PV module plant. Receivables look impacted by extended monsoon and RMS-linked collection cycles, stood at INR 1,639 crore as of 30th September 2025. 62% are not yet due, while around 38% of receivables are less than 90-180 days. Due to the prolonged and excess monsoon, there was less urgency from farmers in running the pumps, which impacted the receivables. However, the urgency for pump installations has returned, and a substantial portion of receivables is expected to be released this quarter. The payment schedules and cash flow outlook remain aligned with our year-end guidance of 120 days of receivable cycles. We are proud to share that Shakti Pumps received an ESG rating of 75, good by ICRA and industry recognition as Best Strategy Organization of the Year and Best Employer also. These accolades reflect our commitment to sustainability, governance, and people. Our diversified order pipeline, operational agility, and strategic investments give us confidence in meeting our 25-26 guidance and sustain growth beyond. Let me now quickly take you all through the financial performance for Q2 FY26, followed by H1 FY26. Revenue for the Q2 FY26 stood at INR 666 crore, marking our highest-ever quarterly revenue, reflecting a year-on-year growth of 5% compared to INR 635 crore in Q2 FY25. EBITDA came in at INR 136 crore, with an EBITDA margin of 20.4%. During the quarter, prices of key raw materials, such as copper, steel, and solar panels, increased by around 3%-4% on account of volatile market conditions, thereby impacting the EBITDA margins. Profit after tax for the quarter was INR 91 crore, with a PAT margin of 13.6% in Q2 FY26. For H1 FY26, revenue came in at INR 1,289 crore, as compared to INR 1,202 crore in H1 FY25, a year-on-year growth of 7%. EBITDA for the period was at INR 280 crore, with an EBITDA margin of 21.7%. PAT for H1 FY26 stood at INR 188 crore. Export business continues to gain momentum, with the company recording a revenue of INR 103 crore in Q2 FY26 and achieving a revenue of INR 200 crore in HY FY26. Now, I would like to request Mr. Ramakrishna Sataluri to share the developments and outlook for the solar rooftop business. Thank you. Thank you. Thank you very much, Mr. Dinesh Patidar. Good afternoon, everyone. The last 90 days were nothing less than very exciting. So, in the rooftop business, we focused on getting the basics right because this is going to be the trigger for huge growth as we move forward. We worked basically on three things in the last 90 days, and I'm very happy to share the following. First, we worked on the product. We wanted to give the best-in-class product. The second, we worked on the infrastructure and the processes. And third, we looked at exciting customer offerings in the form of a good EMI scheme. On point number one, that is on the product, I'm very proud to share that our inverter right now, which is a complete made-in-Bharat, a Swadeshi inverter, is the top-class inverter that is there. We have, in our test run, seen that we are giving more than 10% generation than what our competitors are doing, which makes this a very, very attractive proposition to the customer. I repeat that this is conceptualized and manufactured by Shakti Energy Solutions Limited. So, therefore, kudos to the entire team which got this off the ground. On the second point of infrastructure and processes, we had a detailed plan. We got our manpower on board at the three states that Dinesh spoke of. We went across to the length and breadth of all the states, and we have already set up 57 channel partners. We have exclusive agreements with channel partners, 57 channel partners, and we have also trained in the process over 400 installers so that we have the differentiation of quality installation when our consumers come on board. We also set the processes right as far as our call center is concerned, how the lead management happens, what are the various IT processes that are involved. We got all of that updated, and it is up and running right now. On the third point, we realized after our research from the market that the consumers are also looking at good EMI options. So, we have a tie-up with an organization called Ecofy, which is in this space doing good business. So, we have a tie-up with them and come up with a very exciting EMI offer as well for our customers. So, we got all the basics right, and now we continue to ensure that the training is top-notch and the customer gets a very differentiated experience when the customer deals with Shakti. So, these are the inputs. We are going to work on the basics absolutely right so that once we take off, it's going to be a very, very good takeoff. That's all from my side as an update on the rooftop business. Now, ladies and gentlemen, I open the floor for questions. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. 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 Aashish from InvestQ PMS. Please go ahead. Yeah, Hi. A few questions based on the presentation that you have provided. I can see your receivables aging pie chart there. So, just wanted to understand, there is a whole lot of percentage of receivables more than even six months. I think 20% or 8% is more than 365 days, and 11% is given as more than 81 to 180 days. So, can you clarify what is it? I mean, this is pretty stretched. So, if you could give some update on this one, that would be great to understand. Yes. We have given the early aging of the receivables, and we are expecting that in the next quarter, we will realize more of them. Which is more than six months is 20%. So, is this really receivables or retention money? What is it? Yeah, there is some portion of retention money. Actually, that tender condition is there. We will realize our 10% amount based on 90 days RMS. So, we can say that more of the 10% amount is there stuck, but yeah, remaining 90%, we are hopeful we will get in on time. Okay. And I didn't understand your comment on the RMS thing. You said that the rains were heavy, and that's why the realizations were affected, receivables were affected. Can you make us understand how the entire thing works? Yes. Yes, because this scheme is agriculture scheme, and then KUSUM scheme is saying 10% after 90 days [Foreign language] [Foreign language] [Foreign language] [Foreign language] So, sir, [Foreign language] [Foreign language] hopeful we will achieve it. [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] Yes, yes, yes, yes, yes. Okay, so sir. [Foreign language] [Foreign language] [Foreign language] [Foreign language] Thank you, thank you, Ashish. Thank you, ladies and gentlemen. In order to ensure that the management is able to address all the participants in the question queue, please restrict your questions to two questions per participant. The next question comes from the line of Aditya Vora from Sohum Asset Managers. Please go ahead. Yeah. Hi sir, thank you for the opportunity. So, I had two questions. One is I wanted to understand that from March 24 onwards, I think up to last quarter, we've consistently been doing 23%-25% margin, and now the margins have come down to 20% in this quarter. So how much of this will be structural, that was one thing. And also, we've heard that this Magel Tyala scheme in Maharashtra has been doing a lot in terms of execution, but the pricing has become quite low there. So, there has been a lot of pricing pressure in that, which is obviously evident in your realization also. To my question, could we see this 20-21% as the sustainable new margins, and how do we look at it that way? So, like for this, we have already mentioned that some raw material prices gone up in this quarter, but we are seeing that it will get reduced in the next upcoming quarter. So, we will maintain the margin guideline and this revenue guideline. There is no change in the guideline. So, you are saying that this 20% is a one-off right? This is not going to be a structural fall in margin. Yes, yes, because we are seeing that operational leverage will give us some extra margin to maintain this guideline. Right, because our execution, we have executed too many pumps in this H1, and we will continue this execution. So, it will help us to maintain the margin. Okay, okay, right. And secondly, in terms of receivable, which is our INR 1,600 crore receivable, and you alluded to the fact that this is September's number. Obviously, things have improved in October and November. So what will be the latest figure now? If directly you can tell us that, you know, this 1,600 debtors' so much percentage has come, just to understand how the cash flow is. [Foreign language] Right, right. Okay, okay. Okay, sir, thank you. [Foreign language] Thank you. The next question comes from the line of Punit Mittal from Ebisu Investment Advisors. Please go ahead. Hello, thank you very much. [Foreign language]. Y ou can give more color on how does this scheme work? W hat is the credit cycle? What is the sales process like, because you mentioned that you appointed channel partners, EMI, income margin. So, basically, just more color on potential this rooftop business will bring would be very helpful. Yes, absolutely. This is largely the rooftop business under the PM Surya Ghar Muft Bijli Yojana. What the consumers do is they go to the portal and register themselves. Once they are registered, they have the freedom to buy any of the brands that are available to them. Okay, then after they select it, we get to know whoever has selected it. We go to the consumer and we make a pitch about our product and services. Right, the model, the business model is our channel partners or dealers buy the material from us in advance. Okay, and they go and install it at the customer location. They go to the customer location, install it and collect the money from the customer. Right, the customer after the installation is done directly gets it, gets the subsidy amount of INR 78,000 from the government. This is the entire cycle. To cut it short, this business we will do it on an advance basis with our customer, with our dealers, and dealers buy sell it to the customers. Okay, so what is the margin profile for this business in that case? And also the working capital cycle? We are just putting this entire plan together on the margin. It's obviously, it's a very competitive market. So, we are putting this entire plan together, and I don't want to make any forward looking statements on this. Once we actually hit the ground and realize it, then I will share all the details with you, if that is okay. That's fine. But just to understand, what is the industry will be, what is the margin that the best players are working on and the working capital cycle? Just on industry, average industry level. See, average industry margin, and I think this is just out of conversations that I have, could be in the range of around 15%, 10%-15%. And also, do we need to empanel ourselves like we do in the solar firm, because in every state, because it's a government subsidy program? Right, so there are two kinds of enrollments. One is at a brand level, and the other is at an installer level. So, at an installer level, on the ground, a lot of people do enroll themselves. What we have done is, we've also enrolled ourselves at a brand level. There are totally only five players who have enrolled at a brand level. So, that is the enrollment process. So, we will have all the partners, say the 57 partners that we have, they would have, they would be enrolled on the portal, and beside them, it would show Shakti. Okay, second question, Dinesh is on the MP. So, the MP CM had announced 90% subsidy for the farmers, as far as the news reports went. So that scheme, when is it going to start? How many pumps are they trying to install, etc.? Does it have some timeline, can you tell? Actually, MP [Foreign language] [Foreign language] [Foreign language] Very good, thank you so much, and all the very best. [Foreign language] Thank you. The next question comes from the line of Achal from Nuvama Institutional Equities. Please go ahead. Good afternoon, sir. Two questions. First, if you could provide us the update on the solar cell, where are we, what CapEx, when do we expect it to commission, how do we see the scale up? Yeah, so actually, we are planning for 2.2 gigawatts. That is for solar cell and solar module, and it will commission by March 27. So, we will get the revenue from March 27 onward, and we have total CapEx plan of around 1200 crore, which will be an implementation period is around 18 months. And what kind of scale up can we see from this 1200 crore investment? What is the potential revenue? So, after this investment, we are in the position to achieve the 5,000 crore revenue for this company. No, only for this investment, sir. Solar cell and module, I am saying. What would be the potential revenue out of this 1,200 crore of CapEx, and what margins one would expect? So, actually, this 2.2 gigawatt is sufficient for around 4,000 crore revenue, and for 75% capacity, we can say it can generate around 3,000 crore, and we are expecting around 15% EBITDA level. So, 450 crore per year, it will generate, and this 1,200 crore, we are expecting within three years, we will get back. So, the payback period is around three years. Understood. And how much of that will be captive? We are first preference for captive, and whatever the excess production capacity available at that time, we will take the decision for export business and domestic business. Got it. The second question I have is, if I, if I understand you right, you said we are maintaining our 25% kind of what we had earlier indicated, the revenue growth for FY26. [Foreign language] [Foreign language] Yeah, yeah. So, we told that whatever management has committed in the March call, we are maintaining the same guideline for this year. And that was 25% revenue growth, right, sir? That is 24% for EBITDA level, and that is 20%-25% for this revenue level. Right. So, let's say for the sake of argument, I am saying, if you look at a 20% growth for the full year, right, in that case, the growth rate is actually 30% plus in the second half. Now, given we have had a 10% and 5%, where is this significant delta gonna come from? Is that from the states, particular states we should watch out for? Is that central government? Is that retail? Or is that something else? So, our historical trend is that H2 is always better than H1. So, we are hoping for the same. Sir, I am comparing 2H versus 2H last year. Yeah, so for that, we will wait for H2 completion. We have some plan in our own R&D floor. Once we will execute, and then we will deliver the result. No, fair point, sir. I was just curious to know where the growth is gonna come from. Is it state central schemes and the retail sales? I was just trying to understand that. From all to all. You know my business. [Foreign language] [Foreign language] Sure, thank you, sir. Thank you. The next question comes from the line of Nikhil Abhyankar from UTI AMC. Please go ahead. Ya, thank you, sir. Sir, just in addition to the earlier question, what was the revenue from the solar pumps in this quarter? I think last quarter was 452 crores for 17,500 pumps. For this quarter, how much is it? It is around 487 crore. Okay, and so, I mean, just doing that math, I mean, the realization in quarter on quarter has dropped significantly. Is it purely because of the model mix? You have done higher number of 1HP and 3HP pumps, and is it that the pricing has come down drastically? Nikhil, can you come back? Is it because of the change in mix of the products? Have you sold higher 1HP and 3HP pumps, and has the prices come down significantly? Yeah, yeah. That is, we have already mentioned that whenever the SKUs get changed in the sales mix, then realization will get upward and down trend. so going forward, I mean, historically, our average, I mean, the ticket size was somewhere around 5 HP. So, is it trending lower going forward? It is average around 2.5 lakh. But that depends on where we have executed. This time, we have executed in Maharashtra. If we will execute in Haryana and Punjab, there are some different SKUs, which is at around 7.5-10 HP. So, every quarter, we will get the different average. Okay, depends on the geography, where we have executed the pumps. And sir, on the solar rooftop business, till the time our own cells and modules come in, I believe we have a tie-up already for supplying the domestic modules? Yes, we do have a tie-up with a few players. Okay, and can you just give us some kind of a guidance as to what will be the size of this business in megawatt terms, say in FY26 and 27? Honestly, the early days, right now, the entire focus in is on setting the basics right, because that's absolutely essential for this growth. Because once the basics are right, and we know exactly what needs to be done on the basics, then business is an automatic by-product, because it's a fairly structured category right now. I am purely, purely focusing on the basics to get everything right. Early days for me to talk on the guidance right now. So, any substantial revenue should only come in FY27, I believe. Yes, you are absolutely right. So, next 12 months, as it was said in the beginning of this call, if we are going to see a huge spike. Understood. And can you just talk about the working capital cycle? How much should be? Should we assume somewhere around 90 days? See, the nature, the nature of this business, as I just mentioned, at a field level, is it's largely on an advance basis. [Foreign language] ओके। So, in this sense, we have channel partners across the country, and we will sell our product to the channel partners on an advance basis, and they in turn will go ahead and sell it to the end consumers. [Foreign language] So, that way, from that standpoint, the structure of this business is pretty good from a cash flow standpoint. Okay, understood. Thanks a lot, and all the best. Thank you so much. Thank you. The next question comes from the line of Manish Bora from 308 Ventures. Please go ahead. Good afternoon, sir. Am I audible? Yeah, yeah, you are. Sir, a couple of questions. What sort of expenditure we have made till now on the solar panel and like cell and module manufacturing? By March 2027, we are saying that the CapEx will get completed. So, my question is, how much we have already spent, and what is the source of that funding? Have we taken some debt, or it is entirely through the surplus is available with us? So we have raised the fund through QIP in July month only. So, that is around INR 292 crore. And for the rest of the fund, we are expecting some debt and some from internal equity. So, that depends on the situation of the organization at the time of implementation. And for March 2027, yeah, that is our internal guideline for 18 months. And we are in the final negotiation process, and we are executing some orders. So, we now in this quarter, we will do some advance to our vendor, some CapEx LCs. So, we will update you in the after this quarter, whatever CapEx we have done. And for both the projects, for our doubling capacity, and for this project, we have already published the monitoring agency report for your reference and for your detailed analysis. Okay, so debt tier, long term debt tier, so far has not happened for our PV module and cell business, as well as doubling the capacity from 5 lakh to 10 lakh, as far as solar pumps goes. Is my understanding correct? Yeah, so for doubling the capacity, we don't need any debt. And for this module project, yeah, we need debt, some debt, and we are with our, we are confident that our banking partners, we are in multiple banking arrangement. So, we have 10 banking partners, existing banking partners, and they are sufficient for this, all the funding arrangement. So, we are in line with them. Thank you, sir. Any update on the EV business, sir? Already invested around INR 100 crore, and we have developed some motors. So, in the coming time, yes, right now we are doing with JBM, and we have also moved forward agreements with some other people. So in that, it will definitely take some time, but it will come forward in a good way. In that, we have developed some good technologies, whose result will start for us in the next quarters. So, sir, March 2026 mein jo saal khatam hoga, usmein hum EV se kuch business expect kar sakte hain? [Foreign language] Right, right, right. Sir, last question, if he, if I want to come and meet you and have a look at your setup, when will that be possible? I have sent an email to your CFO and EY team also, but unfortunately, I have not received any response. So, sir, actually, we are in a silent period after the quarter ends. That's why we have not responded to you. Mr. Vikas already will connect with you after this con call, and will arrange the meeting and the plant visit also. Kind of you, sir. Thank you. No more questions from me. [Foreign language] Thank you. The next question comes from the line of Keval Gala from Navkar Investments. Please go ahead. Yes, sir, thank you for the opportunity. Am I audible? Yeah. [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] Correct? [Foreign language] Okay, okay, okay, sir. Thank you. Thank you. The next question comes from the line of Tushar Gupta from Shagun Investments. Please go ahead. Hello, sir. Thank you for the opportunity. I want to know two things. Sir, how these 24% margin is sustainable, and how we are looking on that. And second is the fund raise we have done last year in monetary report. It is showing that INR 116 crore is still underutilized. So, what is the status of CapEx of previous fund raise we are at the current state? Okay. So, first question is for 24%. So, [Foreign language] Okay, sir. That's it from my side. Thank you. Thank you. The next question comes from the line of Preet Nagarsheth from Wealth Finvisor. Please go ahead. Yes, thank you. So, what I wanted to understand is a little bit more on the KUSUM and the solar pump scheme. So, could you shed some light in terms of what do you think is the overall market size for solar pumps, and say how much has been achieved, how much more is possible, and what kind of market share would Shakti Pumps be able to grab in this? And of course, we are also hearing that KUSUM one itself might get continued and extended. So, if you can just share your reading on the whole scenario, that would be great. [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] Right. Theek hai, sir. Thank you. [Foreign language] [Foreign language] Thank you. The next question comes from the line of Shashank Agarwal from Cisco. Please go ahead. [Foreign language] [Foreign language] [Foreign language] [Foreign language] Okay, okay. Sir, [Foreign language] [Foreign language] [Foreign language] [Foreign language] No, no, no. [Foreign language] [Foreign language] Okay, okay. [Foreign language] [Foreign language] Okay, okay. Thank you, sir. Thank you for your answer. [Foreign language] Thank you. The next question comes from the line of Divyansh Thakur from Finterest Capital. Please go ahead. Sir, my questions are already asked. Thank you for your question. Thank you, thank you, thank you. Thank you. The next question comes from the line of Sudarshan Maun from Doorsari. Please go ahead. Hello, sir. [Foreign language] [Foreign language] [Foreign language] Existing capacity [Foreign language] achieve easily.