Ladies and gentlemen, good day, and welcome to Acme Solar Holding s Limited, Q3 FY 2026 earnings conference call, hosted by Motilal Oswal Financial Services Limited. As a reminder, all participant 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Nigam from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir. Yeah. Thank you. Morning, everyone, and thank you so much for joining in. And on behalf of the company, we have with us today Mr. Manoj Kumar Upadhyay, Chairman and Managing Director, Mr. Nikhil Dhingra, CEO, Mr. Rajat Kumar Singh, Group CFO, Mr. Ankit Verma, Head of Corporate Finance, and Mr. Arun Chopra, Head of Finance and Accounts. And now, without any further delay, I'll hand it over to the management for opening comments. Over to you, sir. Good morning, everyone. Thank you all for joining us today. I'm Rajat Kumar Singh, Group CFO of the company. I'm joined by our Founder and Chairman, Mr. Manoj Kumar Upadhyay, Mr. Nikhil Dhingra, our CEO, Mr. Ankit Verma, Head of Corporate Finance, and Mr. Arun Chopra, Head of Finance and Accounts. It is my pleasure to share the highlights of our Q3 performance. I would like to start with sector highlights and their implications on us. India continues to maintain strong momentum in capacity addition, with 30 GW of solar and 4.5 GW of wind addition in nine months ending FY 2026, taking cumulative renewable energy capacity to 258 GW. Further, power demand rebounded sharply in December 2025, with energy demand at 138 billion units, a 7% year-on-year increase, followed by subdued power demand during April to November 2025, when energy demand was flat on account of early monsoon. We expect the demand revival to continue going forward, resulting in increased PPA signings. Further, China has announced withdrawal of VAT export rebates for solar products and phased withdrawal of VAT export on batteries from April 2026. While this represents a policy shift, the impact will ultimately be governed by supply-demand dynamics, which we expect to remain favorable for buyers. Against this backdrop, for our FY 2027 plan contracted capacity of 1.5 GW, we have already procured 1.7 GW peak of modules and a large amount of BESS within the budgeted cost covering about 50% of module requirement and entire BESS requirement, which doesn't have any impact of planned VAT reduction in China. On the orders procured, there is a saving of more than 10% in the overall CapEx from the budgeted cost. We are pleased to inform we have signed orders for additional 5 GWh of BESS within the budgeted cost. So marginal cost for procurement done, post-VAT announcement done in China for both modules and battery, is well within the budgeted cost. Therefore, we don't foresee any impact on budgeted cost of Chinese announcement. On curtailment, there are two kinds of curtailment: transmission linked and grid stability related. We would like to assure you, there is no impact on revenue from grid stability-based curtailment on ISTS side, as it's completely protected by GNA regulations. There is only transmission infrastructure-related curtailment due to in-process transmission links, which is temporary. This doesn't impact any long-term GNA holders, as once granted, there is no impact of such curtailment. For us, we faced one-time curtailment loss of about INR 17.5 crore in our 300 MW Sikar project due to operations under temporary GNA during the quarter. Excluding this, curtailment across the remaining portfolio was negligible, less than INR 1 crore, reflecting the overall robustness of our asset base. Thus, in all, there was less than 1% of loss of annualized revenue due to curtailment. Importantly, now, with commissioning of Narela-Khetri line, with effect from 14th December 2025, Acme Sikar is operating at full capacity without any curtailment. Now, coming to our company's performance. During key Q3 to date, we commissioned 72 MW of wind capacity, taking our total operational portfolio to 2,962 MW, with EBITDA to CapEx yield of approximately 14.5%. Cumulatively, with 422 MW commissioned year to date, we remain firmly on track to achieve our FY 2026 commissioning guidance of 450 MW, with the balance 28 MW at advanced stages of construction. Further, as highlighted in our previous earnings, earnings calls regarding the operation of 1 GWh of BESS on a merchant basis in Q4 FY 2026, we are pleased to upgrade this guidance to 2 GWh of BESS becoming operational in this current quarter and additional 2 GWh of-- hour in the Q1 of FY 2027. Towards this, 1,150 MWh of BESS has already been delivered at three sites and is at advanced stages of commissioning. With respect to our under construction capacity, we have committed total CapEx of INR 8,200 crore, which includes CapEx incurred of about INR 2,550 crore, and purchase order aggregating to about INR 5,700 crore. Also, connectivity is available for all under construction projects, including unsigned PPAs. We signed PPAs of 450 MW capacity, which include 200 MW of solar plus ESS with SECI, and 250 MW FDRE project with NHPC, taking our PPA signed portfolio to about 2.7 GW. The 250 MW FDRE NHPC PPA has been signed yesterday at a tariff of INR 4.33 per unit and is allocated under the Greenshoe option. Also, we won 130-megawatt round-the-clock project at a tariff of INR 4.35 per unit with REMC Limited, expanding our under construction portfolio to 4.8 GW. This project is for procurement of power by Indian Railways and requires a minimum annual availability of 75% for the first three years from commissioning, and 85% thereafter. The tariff discovered demonstrates the competitiveness of renewable over thermal power generation at competitive price. With this addition, our total portfolio stands at 7,770 MW, including 16.0 GWh of BESS capacity and 5,630 MW of PPA signed capacity. Now, coming to our financial performance. Our total revenue for the quarter stands at INR 617 crore, a 54% increase year-on-year, driven by capacity addition and higher CUF. EBITDA margin of 91.5% in Q3 FY 2026, as compared to 89.6% last year on account of favorable operating leverage and optimized operational efficiency. PAT stood at INR 114 crores with a margin of 18.4%. Also, we generated cash ROE of 20.6% for December 2025, driven by higher cash PAT following operational capacity additions. In terms of balance sheet strength, our net operational debt to EBITDA stands at 4.2 times. Net debt to net worth stands at 2.2 times. Net debt to net worth stands at 2 times. Coming to our debt optimization efforts, through successful refinancing efforts and credit rating upgrades across parent and subsidiary levels, we have reduced the weighted average cost of our debt of our operational portfolio to 8.45% per annum, down by over 105 basis points from December 24, 2024. Also, the weighted average cost of debt for entire outstanding debt, covering operational and under construction projects, stands at 8.6% per annum. As of date, debt has already been tied up for more than 90% of PPAs signed under construction portfolio. This one excludes 250 MW, which we signed yesterday. On credit rating front, our 2.5 GW operational rated portfolio, 75% is double A category and balance is A category, underscoring the continued strengthening of our credit profile. Now, at last, coming to operational metrics for the quarter. We generated 1,567 million units, up over 49% year-on-year. Our CUF improved to 24.3% from 22.7% last year. Further, our grid availability and plant availability stands at more than 99.5%. Now, at last, I would like to briefly outline our strategic priorities till FY 2027. As part of our capacity build-up plan, we intend to execute approximately 1.5 GW of contracted renewable capacity in FY 2027, and more than 10 GWh of BESS commissioning by calendar year 2027. In terms of execution readiness for FY 2027, debt has been secured for almost entire capacity. Land acquisition has been completed for majority of the projects. Connectivity is fully secured, and majority of modules and BESS capacities have been ordered and have started delivering at sites and getting commissioned in phases. This level of preparedness gives us strong visibility on timely execution and disciplined capacity addition. As a strategy, we are fast-tracking BESS installation of 10 GW of our FDRE projects by calendar year 2027 to unlock value early. By deploying batteries at existing operational sites, we are optimizing the use of available transmission infrastructure, saving transmission CapEx of about INR 20 lakhs per MW, avoiding execution and right-of-way challenges. This approach is expected to enable early cash flow generation while ensuring seamless integration of BESS with the respective FDRE projects upon full commissioning, where they will continue to operate under long-term PPAs for 25 years. PPA signing continue to remain a key focus area, with near-term visibility of approximately 770 MW. This includes invitation received for signing of 130-megawatt REMCL PPA and PSA consent, secured from the DISCOMs for 640-megawatt, with the regulatory approvals at an advanced stage. Further, as a measure of readiness, we have about 7.5 GW of secured and applied connectivity inventory available for upcoming bids, over and above existing portfolio, coming live in phases till FY 2033. Also, we'll focus on winning new projects that meet our threshold return criteria to progress towards our target of 10 GW operational capacity by 2030. With that, I now open the floor for questions. Our team would be happy to take them. Thank you very much. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. 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 Ankit Mittal from SBI Mutual Fund. Please go ahead. Yes. In your opening remarks, you mentioned that there has been some increase in the marginal cost of procuring modules. If you could just quantify that in the current environment, what is the cost of procuring modules now? And accordingly, what would be the capital cost for us to set up a solar project? Right. Right, Ankit. So, like we mentioned, there is a withdrawal of the rebate, which is different for module and which is different for battery. So, basically, what we are seeing is, there is a marginal increase in the prices of cells, because right now, for our projects, we need to only procure cells from there. Rest of the BOS is all from India. So there is only impact on the cells, to the extent of, you can say, around. On a, on a overall module cost, it not more than INR 1. Basically, the impact of this change is only INR 1, if you look at the landed cost of modules for us. Because there are, there are, there is a China procurement, there is a FTA procurement. So suppliers are able to supply from, either of these, and we look at the overall landed cost to us, which is not more than INR 1. And our, from our budget, it is, let's say, less than by INR 1-INR 1.5, even after this increase. Now, the other thing it is important to share here is 50% we have already procured, which was where this INR 1 was not counted for or it was not there. So technically, 30%-40% of our additional capacity, this one per, INR 1 will be applicable. The other thing is, in terms of the impact, usually we have seen in the past, this kind of impact happens at the transition phase of the procurement. What we also do is, we procured quite a lot of modules before March. That is, we expedited our orders, and we have lined up deliveries for quite a lot of modules prior to March. And of course, there will be a disruption, and there is a Chinese New Year coming up in February. So usually we see that these kind of disruptions are caused to increase prices of Chinese products, which basically even out as we go in supply and demand, because ultimately this is all driven by their regulations. There is no change in their supply-demand dynamics. So this is temporary because there is, of course, a glut there, and we don't see this impact of even INR 1 lasting for more than a couple of months. Okay. Just to understand, from an overall capital cost perspective, what would be the CapEx per megawatt on which you can set up a solar plant on the current prices? It was, let's say, around 3.3. It would have gone to 3.35. Yeah. This is on a DC basis? Yeah, on a DC basis, yeah. Okay. This is, this includes soft costs? Every cost, yeah. All the cost. Sorry, just to clarify again, this is for a non-tracker system? Yeah, yeah, we don't do no trackers. Okay. Just, you know, one more question, you know, our wind project has delayed quite a bit. And while we've been commissioning, it's taking us some time to commission. Could you just highlight on that? You know, when do we expect this project to get completed and the reasons for delay? Yeah, sure, sure. So wind project is expected to be completed in early part of February. So the reason for delay was there was a sand mining sort of sand mining ban in Gujarat, which was there, where due to which you could not take the sand from the neighboring areas, which impacted this in the last phase, in the last couple of months. But of course, we have overcame that kind of issue, and we have been able to build it within the timelines. It basically, in terms of pathways and the rains, of course, where there were extended rains last year, which again, impacted the timeline. Because we have basically seen that the pathways construction is almost like a right of way construction in wind, which is like building a transmission line in solar. So it takes time, and of course, we got extension also because of these reasons. And that is, and we are building within the those timelines. I got that. I'll join in the queue for follow-ups. Thank you. Thank you. Thank you. The next question comes from the line of Mohit Kumar, from ICICI Securities. Please go ahead. Yes, good morning, and thanks for the opportunity. My first question is on the 250 MW you signed, signed yesterday. Is this 250 MW part of the NHPC, where you have signed the Greenshoe capacity? And can we expect this entire capacity commission in the FY 2028? And related question is, have you given a discount on the initial numbers? I think the rate was 4.56, right? If not wrong, yeah. So just to answer your three questions, the first two are, yes. The Greenshoe is part of the original capacity allotted. And of course, this is expected to be commissioned in FY 2028, definitely. And of course, on the tariff discount, yeah, there is a discount because there is an impact on the ISTS charges. It could be there for discounts because of the delay in PPA signing. So there is some discount there, which is to factor in those charges which the DISCOM may face. Have you got the DISCOM approval or DISCOM PSA signed for this 50 MW, or it's still awaiting? Yeah, yeah, yeah. See, the process is that the PSA gets signed between NHPC and DISCOM, and then, the PPA gets signed between the NHPC and us. So both of these activities have been completed. The only thing pending is the regulatory approval from Punjab Regulator and also, similar thing from the CERC. But the PPA has been signed, with NHPC, and the PSA has been signed between Punjab and NHPC. Understood, sir. Can you please help us with the COD for 680 MW and 190 MW FDRE projects? Right. So, in terms of the 190 MW projects, we are targeting FY 2027 for the project. And for the NHPC projects, it is FY 2028. And these are in sync with the substation timelines at both these projects. Understood. My last question, sir: How do you see the impact of the new DSM regulation, which are going to kick in from April twenty-sixth, and our preparedness as an industry? Yes, yes. So there is a lot of deliberations happening on this, DSM regulations at all the industry forums, at the Power Ministry, at the Renewable Ministry. It is a matter of high discussion, and all the top decision makers are apprised of the difficulty which the wind projects primarily may face more than solar. Of course, the thing is, you can overcome this. Of course, it is coming in phases. There is, as you know, it is coming in phases till 2030. The thing is, with batteries coming up, the overall instability caused by the renewable power will reduce. So there is a lot of emphasis on installing batteries on the existing plants. So that is. So Power Ministry and MNRE are together working on resolving this issue by. There are a couple of solutions being floated around. One is that making it prospective and not retrospective. The other solution is being contemplated is to install batteries at the existing plants to take care of the unpredictability of the radiations and these wind flow. So, and of course, allowing that excess battery to be sold in merchant to compensate the developer. So different solutions are being worked out for wind and solar, and also looking at the prospective implementation. So, this is something being happened. In terms of solar, it has a much lesser impact as compared to wind. The other thing is, it is not impacting on the battery-based projects because they don't have such problem. Yeah. So it is also very important to note that most of our projects in Rajasthan, they are all being fitted with the battery. So technically, in all those projects, there will be hardly any impact, because the battery will be able to take care of that. Understood, sir. Thank you, and all the best. Thank you. Thank you. Thank you. The next question comes from the line of Akash Mehta from Canara HSBC Life. Please go ahead. Yeah. Hi, sir. Thank you for taking my question. Yeah, first, just wanted to check in terms of the battery, in terms of your capacity addition of 2 GWh that has happened, how much... I mean, in terms of profit, if you look at the run rate is about INR 2,100 crore, right, in terms of operating profit. So how much this could kind of, the battery projects could kind of add in profit? If you would just help us understand in terms of 1 GWh, if you sell it at a-- in, in merchant, in terms of next couple of quarters. Right. Right, right. So 1 GWh of battery results in around INR 170 crores of EBITDA, if operated for 12 months. And this is assuming an INR 5 arbitrage between buy and sell price. So that's the broad maths. Okay. I think that's quite helpful. If you, I mean, next, going into fiscal 2027, you mentioned 1.5 GW will be added, right? I mean, for Acme, can- In terms of battery, in FY 2027, we plan to install around four gigawatt hour. But FY 2027, it's around four gigawatt hour, and CY 2027, 10 GWh. No, in terms of total capacity addition, I mean, I mean, in terms of the- Overall, plants? Yeah. Mm-hmm. So FY 2027, 1.5 GW of contracted capacity we will install. And battery addition is, let's say, you can 4 GWh in FY 2027, and which is, of course, in some cases, part of the project, in some cases, merchant. And around 6 GWh more in rest of the CY 2027. So 1.5 GW of capacity, which is scheduled for commissioning in FY 2027, will require roughly battery capacity of roughly 3.3 GWh? A nd over and above, anyways, this will get installed and be integrated to API projects, and over and above, roughly 1.5-2, 2 GW it further will get installed. These are a 1.5 GW, mostly FDRE, so they technically will be 3-3.5 GW of solar, some 400-500 MW of wind, and 3-3.5 MWh, GWh of battery. Okay, I think that's fair. So this, this will come in, say, over quarter, or this is more of first half or second half? I mean, if you just help us with that. Yeah, basically, see, this is, this is the connectivity timelines for each substation. So yeah, there is, there are-- it is coming, actually in very, In, in, there is some capacity which is coming up in the first, around Q2, of, of FY 27. So starting from Q2, these will all come up. Okay, that helps a lot. Of course, battery installation will happen from this quarter only. But in terms of the full project commissioning, FDRE commissioning, that will start from Q2. Okay. And lastly, on the industry level, have you seen any pickup in terms of the PPA signing? I mean, they are existing around for 40 GW of PPA that's there in the system. But, I mean, what's your view, and how much time it will kind of take to for the market to kind of absorb this? So, see, every, everybody is trying to make an effort, to streamline, the takeoff. And of course, as we the power demand has gone up, so of course, there are a couple of elections also coming up. So we will see that there will be a takeoff, in terms of the PPA at the industry level. Couple of reasons for that. One is that, the bids are now coming with the demand centric bids. And there is a lot of reduction in the new bids which are coming, which is, of course, increasing the demand for the existing PPAs. The other thing with existing PPAs is they are to be done with Chinese cells. And of course, the cost which a developer is able to offer is competitive. And also the ISTS waivers, because the connectivities tied up with these projects are coming up early, like 2026, 2027, 2028. Every state wants to take benefit of the ISTS waiver charges because it's a very tangible number. So there is an incentive inbuilt in these bids for the projects to take up. And of course, now with streamlining of RIAs, which is being contemplated, wherein no competing bid for an existing bid will come up, which will further increase the takeoff. Because what happens is, one RIA comes up with a bid which is undercutting the other bid, which is unlikely to happen in the future. So that is why we will take off. As far as we are concerned, we have a near-term visibility of, we have signed PPAs, as mentioned in our presentation, and we have near-term visibility of 770 MW. We have signed around 450 MW this quarter. So, as you can see, we are an example of, that these PPAs are happening, and of course, it will happen. What happens is, states are trying to aggregate large procurements. They are doing it in phases because quite a bit of pipeline is there, like you rightly mentioned, 40 GW. So everybody is picking and choosing in terms of what they want to buy. Most of the states has peak power requirements, so they are trying and fit their peak power requirements along with the available pipeline. So we think that there will be a good takeoff in the next one or two quarters because there has been quite some time where people have deliberated each state. And there are large states, you know, five, seven states, which are likely to buy. I think that answers my question. Thank you a lot, and all the very best. Thank you. Thank you. The next question comes from the line of Apoorva Bahadur from IIFL Capital. Please go ahead. Hi, sir. Thank you for taking my question. I had a query around the battery commissioning. When should we expect the first BESS to be commissioned? And secondly, will it be modular, as in, like solar modules, can we keep on adding these containers and probably start operating them parallelly, or do we have to require for a site to reach a critical size before commissioning it? Thank you, Apurva, for the query. So basically, it is modular. We have already taken CEA approval for around far more than 580 MWh of battery commissioning. So it will be. We are doing it parallel execution at three sites. So you will see that each of these sites, there are 1 GWh plus of installation at two sites, and one site is around, you can say, closer to a GWh. So at each of these sites, we will take them to the 4 GWh, which we spoke about in the next, you can say, 6-9 months, starting from this month, February. Starting from February. So it is modular. The only thing which you need to do is just call, we need to take up the CEA approval, which we have taken-- we can do in phases. There is a 7-day prior notice which you need to give for the approval. It is completely modular. What you need to have is basically the transmission infrastructure to enable the supply of power, which we have at all places. So the long lead item, which is required, which is the transmission connectivity, which we have at all sites. So that is... Rest of all is modular. The battery, the PCS, the electrical infrastructure, that is all modular. So we are starting with the 500 MWh, as Nikhil mentioned. So every, we say our three sites, the capacity is around 100-150 MW to start with, and we'll keep on adding more and more batteries as they are coming on the site. And, in this process, we have to just inform CEA to come and visit every time when we add.... Just to add on this, we have 1.2 GWh lying at our sites, out of which we have taken approval for only 600-odd MWh. So, you will see that we will take more and more, because it is all modular. And of course it is helpful for the grid. So, and we have got approvals also, the connectivity approvals. But of course, since we are doing the charging at large scale, it will be done in phases. Sir, we'll be charging these using the merchant power? Yes, yes. For the time being, till our FDRE plants come up, we'll be charging using merchant power, you're right. During solar hours. Sure. Also quite commendable, I think, we managed well on the curtailment side. The state has been, has been suffering. Would be curious to know about this revenue recovery on CUF curtailment. Who will pay? Right. Is, is there a clear structure that the DISCOMs need to pay, even if it's a, it's a grid stability-related curtailment, or there's any other mechanism? Secondly, are we receiving those payments or sitting in our receivables? So we are receiving those payments. The way it works is, this is part of the ancillary regulations of the transmission guidelines. What it means is that for the stability of the grid, they can do a turn down. Basically, what it means is that for the grid stability, if the CEA or NRLDC chooses to adjust your power, the state can't adjust its schedule. State has to get the same amount of units it was supposed to get, and it has to pay. Because it has got those units, it has to pay for it. So there is, and we don't have to adjust our schedule. We are also paid as per our schedule. They didn't end up and both sides are therefore supplying, and they are taking, and we are, our bill does not get adjusted, because this is done purely to adjust the grid stability. So there is a very clear regulation. Nobody, even the state doesn't know that we were being curtailed also, because this is completely done at the central grid level, and the state has no involvement in this whole transmission scheme. Sure. Sir, where we are connected to the state grid, how has been the situation on curtailment? So state grid, of course, we are trying to get the similar regulation done in their transmission rules, because generally what happens at the state level, the transmission and Genco both are run by the owned by the state government, so there is a common officer or the regulator who is taking care of that. So there is actually a very minor curtailment which happens in the state, which we have mentioned, that it was around less than INR 1 crore on the state level portfolio. So there also, the regulator is sympathetic to this cause, because now states also have significant solar assets which are also impacted, and they are trying to put up a lot of batteries at state level, as you know, with the VGF, which is coming up at the state level. So we see this again, as a temporary problem, because states have aggressively picked up the batteries, so there'll be less inability they will have to adjust their grid. So there is an impact in Rajasthan, but which is very minor, and of course, we are trying to solve it regulatory, and states are themselves trying to solve it through batteries. Okay. Okay, fair enough. So last question from my side, and this pertains to the other entity, promoter entity, which houses the green hydrogen business. Understand that we have won a couple of sticky auctions. Any update on that, as in, how should we expect the build-out over there? And secondly, will there be any sort of arrangement between Acme Solar and Acme Cleantech, of sale of power, and how would that work? Right. So see, we have, we have won the auction. And of course, there is, there is that PPA, which is going to get signed. So it is, of course, not yet signed. And there will be, there'll be in a quarter or so, it may get signed. In terms of the... So they will make their own arrangement regarding power, in terms of the power. So, there is no requirement from our side to supply that power. Of course, they will be buying through various mechanisms, including procurement from RIAs, including their own CapEx, and maybe from C&I, because it will involve some bit of connectivity sharing. So, that's the broad. We have not yet evaluated in detail whether it makes sense for us to supply or not, so we will be able to tell you once we make that analysis. So right now, there is no plan to supply to them for that power. Because there are certain regulations which we also need to see, they will need to see in terms of, in terms of the EOUs, in terms of the NFE. So it is an evolving space, because there are a lot of regulations which are enabling the green hydrogen today in terms of transmission waiver, in terms of these export-oriented units. So I think that regulatory framework is still getting frozen. So they have not yet... Of course, there is a lot of connectivity available with them, so they can do their own power also. So there is no decision as of now whether we will be supplying or not, because we have our own CapEx plan, we have our own sort of demand coming out from the utilities. So there is no decision that we are going to supply to that company. Understood, sir. Thank you very much. Thank you. A request to all participants, please restrict your questions to two per participant. For more questions, please rejoin the queue. The next question comes from the line of Dhruv Muchhal from HDFC AMC. Please go ahead. Yeah, thank you so much. I had a structural question on the curtailment thing. As we understand how it happens and all those, but, so, the point is, assuming that India keeps adding about 25-30 GW and probably even more annually, and your demand grows by about 12-15 GW on an incremental basis, there is an excess of solar supply every time. Probably batteries will address it to some degree, but then there could be timing issues, the cost issues and multiple issues. So, it seems this curtailment thing, unless I'm wrong, this curtailment thing could be a bit structural. So, just wanted to understand, is it fair to assume a 5% or probably 10% impact on revenue because of curtailment for future projects? Or you already build that in when you forecast, in terms of how your IRRs are going to get built up, or the whole understanding itself is wrong? See, Dhruv, you are right on the numbers in terms of the structural, but how it works is the regulation. Basically, it's a regulated sector, right? So you are right in terms of the, let's say, supply-demand match. And of course, there will be an impact of battery, which you rightly said, it will be adjusted. But the thing is, there is a difference between curtailment and payment. So, in terms of our revenue, because of the regulations, there is no impact, because this was made, keeping in mind the must-run status of renewables, keeping in mind that the revenue need to be paid because nobody is at fault, here in terms of the developers. So there will be no revenue impact, of course, on the net. And the states also, the buyer will get whatever units they are getting, because it's at the central grid. It is not a one-to-one correlation between the supplier and demand. If it was a one-to-one correlation, and we were not on the national grid, let's say it was a C&I thing, which is the buyer is curtailing us, that is not the case. It is a grid stability thing. So, even despite this, supply, demand, there'll be no impact on the revenues. No, the other thing I think you should know, Dhruv, that the government is adding, government and the state, central government and the state both are adding large amount of the battery. And these batteries, what they are doing is, as you rightly said, 12 GW. Even if you add 25 GW of solar, if you add enough battery, technically it is 6, 7 GW of around-the-clock power. So what most of the states are doing, they started with 2 hours of battery, they now 4 hours of battery, now they are talking of 8 hours, 10 hours of battery, as the battery prices have come down. So you will see that more or less, they go get optimized. And the government is also thinking this by giving them this VGF. So from the central government, instead of building additional transmission capacity, they found out that giving this VGF is for the battery. What will happen is, it will also create additional capacity from existing grid. In terms of the two facts, the Power Grid is also building the ancillary batteries on a large scale. They have come up with a tender for in South, they are building their battery. Power Grid is also has a plan to put batteries. NEP has a 300 GW hour plan by 2030 for the battery. Of course, everybody is aware of this issue. But as far as we, our payment is concerned, that is not at risk. Sure. No, so just extending, sorry to just extend this a bit. I understand the batteries will happen in this, but the only risk that we see, at least from a few years perspective, is that the bids that we have seen in batteries are extremely, probably it's for an external guide, seems extremely some of the players have bid extremely low. And given how the battery prices have changed, some of these bids might not actually convert to physical assets. And that realization will happen over a period of time, and the states will then rebid and all those things will happen. So this creates a timing gap, probably, I don't know, 2 years, 3 years, or probably it can be lower. So during the timing gap, can this be a thing? I understand you are assured because of the cut, because of your payment, and there is a difference between a dispatch and cut and your payment. But if the quantum keeps on increasing, do you have a pushback from the system that this is too much now, we can't handle this? So just trying to understand how the system works. No, of course, of course. It's a very valid problem, which, see, there is a lot of discussion going on about converting the existing solar into battery and freeing up the existing connectivity, which is there at ISTS. So, there are various solutions for reducing the peak supply of solar power, because, you know, we have around 52 GW of CTU-connected renewable today. And this 52 GW of solar and wind, out of which wind is only 10 GW, it can be converted into peak power in the existing contract construct of the PPAs. So, there are some low-hanging fruits in terms of solving this problem, which everybody is mindful of. So, there is—and in terms of the bids, there is a large capacity coming up from credible developers, in terms of the FDRE, in terms of the peak power. If you even adjust the state-level bids, which are there, and that is mostly at STU. The state-level bids where you are seeing excessive competition, they are mostly at STU, and they are not at CTU. We are talking mostly about CTU here, right? Because our playing field is CTU. So there, you have not seen those kind of bids and those kind of irrational competition, because that has happened at the state level, where there is a VGF. And so there is... You should separate the two, the credibility of the developers doing the CTU projects, the Power Grid, which is highly credible, and the developers, which are doing not standalone batteries, but battery cum solar, which you require extensive connectivity, extensive lands purchase. So, and the issues you are seeing is mostly on the STU level, bids at the state substations. And plus, the government is mindful of the CTU level issue, which they are trying to solve. Got it. Sure. Thank you. And just one quick question is on slide seven, you mentioned about connectivity inventory for upcoming bids. So this is over and above the LOA bids you have, right? I mean, for the future bids that you will be creating, this is connectivity for that. Got it. Yeah, yeah. Perfect. Got it. Thank you so much, then. All the best. Thanks. Thank you. The next question comes from the line of Nikhil Abhyankar from UTI AMC. Please go ahead. Yeah. So, a couple of questions. So, first related to the BESS system. So, what are we exactly targeting over? Will we look to cater to both the morning and the evening peaks? Will we be able to do any terms more than once through the system? Yeah, yeah, we can do that both. But it depends on, because what we are trying to get is, we are trying to get arbitrage of the cheap power versus the peak power. So if the morning arbitrage, for example, in the morning time, solar time, we charge the battery, we will be able to do in the evening. Even in the nighttime, especially between 12:00 A.M. to 2:00 A.M., if again, the power cost goes down, we can charge it and do it in the morning. So we are flexible. Our batteries, actually, they are designed to work for two cycles. This guidance of 170 or more based on one term or more than one term? Yeah, it is, it is based on one. If you do two, it will be double. Sure. And, sir, just, a continuation to that, will this early commissioning for BESS system impact or IRR, from which the BESS is being procured? I mean, I mean, the life of BESS system is considered to be around 11, 12 odd years. So early replacement will it impact the project itself, the project IRR? No, no. No, it is not. In fact, today's modern batteries, they are actually designed for 18-20 years. And in fact, they are designed for 1.6 cycles a day. 1.6 cycles a day means some day two cycles, some day one cycle. In our business model, normally, we have kept is 12-13 years of replacement of the battery. So technically, we are not affected for one year, one and a half years of this operation. And in terms of the battery replacement, when we talk, it is a cell replacement only. The associated infrastructure does not need to be replaced. And secondly, when we are realizing revenue early, we are making a good IRR on that particular CapEx. That will also add up to the utilization, because this is good EBITDA for the CapEx done. Just on the under construction portfolio, so can you just give us the timelines in terms of the tech capacity, which you expect to get commissioned, we say in next or two years, by 2028, 2027 and 2028, and the related CapEx as well? So yeah, like we said, 1.5 GW is likely to happen by FY 2027, right? And in addition to that, around 2 GW hour of battery, which is of course, so these are, the BESS is part of it. So 1.5 GW by FY 2027- Right. A nd 1.1 GW by FY 2028. So let's say we have around 2.6 GW of signed PPAs, right? Because let us track the signed PPAs, because as and when PPA gets signed- Right. We can upgrade this thing. So let's simplify things. So FY 2027, 1.5 GW, FY 2028, 1.1 GW. So- In terms of CapEx, CapEx is around INR 12,000 crore for this FY 2027 till capacity, and you can say around INR 10,000 crore for the 1.1 in FY 2028. This includes the BESS cost as well? This includes the BESS cost as well, yes. Okay. Sir, on the unsigned PPA projects portfolio, do you expect any movement or, I mean, not really? No, no, we do expect a movement. We have tried our best to accommodate the status also in the presentation. We have said that in the near term, 770 MW of additional PPA signing, in addition to what we have done, of 450 MW. So we expect those to move, for reasons we mentioned earlier during the call, in terms of the attractiveness of... because of the ISTS waiver, which is currently going on, the timeliness of land purchase and every availability which the supply side has. So we expect the movement, and also because of the less bids which are coming off a similar sort of construct. So we expect these PPAs to move, and last dates to buy. Okay. Just a final question, of the current under construction portfolio, can you give us how much DCR modules will you require in the next few years? We don't need any DCR. Okay, got it. Okay, thank you now. Thank you. The next question comes from the line of Yogesh Patil from Dolat Capital. Please go ahead. Thanks, sir. I have a couple of questions. Sir, questions related to, again, a connectivity. To date, we have a 3.1 GW kind of a capacity under PPA. If you could give us how much of this capacity is having a GNA approval and a temporary GNA approval at this stage? And correct me if I'm wrong, correct understanding that all of our PPA signed capacity has a full GNA access. Yes, yes. So, basically, you get a in-principle approval, then you get a final approval. That is, at the, you can say, pre-build-out stage, right? So we have got the connectivity approval for the whole, capacity where PPA is signed. And this GNA, whether it is a short term or a long term, is operationalized when the system is built, right? So, when your system is fully built, you get a long-term GNA, and, in terms of, let's say, if there is any element which is not complete, you can get a short-term GNA, and you can supply power. So, this connectivity agreement operationalization is signed when the, it is built out. So right now we have connectivity, full connectivity, allotted, for the PPA signed and unsigned, both, like we said, and we have excess inventory of around 7 GW of additional connectivity. This GNA, of course, we have dates for each and every substation within the within the timelines we are targeting. And that is why we have, given the current schedule of those transmission lines, we have scheduled the CODs. And also in terms of a regulatory point, that, if there is a delay due to any element of the transmission line, there is an automatic extension given in the PPAs for that sort of delay, which compensates. We also track on a monthly basis actual site visits to that CTU substation, where are they in terms of the actual progress of that transmission link. Of course, if there is a delay at their end, we adjust our CapEx to save on the IDC. So in our existing ongoing projects, we are fully tracking that, and we have synced up our transmission our commissioning dates as per that. Yeah. So the second question, need a small understanding on procurement of the equipment for the project. At the time of entering into the contract with the equipment supplier, from India or China, do you sign this contract generally in case of Indian, Indian rupee terms or U.S. dollar terms? So with all the Indian suppliers, and it includes the Chinese suppliers who are based in India, like the turbine suppliers, the transformer suppliers, the inverter suppliers, there are actually quite a lot of Chinese suppliers who have manufacturing or assembly in India. So they are all done in rupees. I can give you examples of a lot of these suppliers who are Chinese, but based in India, so they are all rupee. Most of that is rupee. The only bit which is done in dollars is the batteries. Cell. Batteries and cell, by the module supplier, not by us. Yeah. So, the only thing which is done is the batteries. And in some cases, we have tried and got you can say GIS, which is again bought out from India. Again, from a Chinese supplier, but they are billing it from India. So only batteries is in dollars, the rest is all in rupee. Okay. The last one: do you sign, do you sign the fixed price contract with the equipment supplier or a flexible price contract? I mean, if the solar module raw material prices goes up, goes down, who takes the losses or the profits of this contract? So we have realized over a period of time that signing these flexible contracts have not much value, because sometimes, because of the regulatory changes or any change, these prices are difficult to hold. Even if you take a, you can say, a CPPA or any sort of regulatory mechanism, it is difficult for anybody to service. So we always sign a fixed price contract, with no linkages. And these are all short-term contracts, wherein the supply starts from, let's say, maximum couple of months, including the shipping time. So, and we try and sign with the large suppliers who have such kind of monthly capacities, such that they are able to service a large volume within a, a month of production. So we don't sign flexible contracts. Thanks. Thanks a lot. All the best. Thank you. The next question comes from the line of Sourabh Arya from Oaklane Capital. Please go ahead. Yeah. Hi, sir. Congrats on good set of numbers. Couple of clarification. The first one is the Greensho e, which we have won with NHPC. So just want to understand, this was not part of the last year presentation, I mean, the last quarter presentation. Is it like a new thing one should consider? Right. Right, Saurabh. So, you are right, it was not part of our presentation, because, see, Greenshoe is something, which is, which happens, later than the, original allotment. Our PPA, as you know, got signed for the original allotment quite a long while back. Right. So we had no clarity on the signing of this PPA. Till the time the regulator, the NHPC, told us that they are seeing the demand for this power, considering the connectivities we have, considering the availability of supplying power we have. And then, very short term, we were able to get this signed. So, and this happened between the last quarter and this quarter. So that is why we are updating, because till the time we don't take Greenshoe projects until they fructify, because that is something which is tentative. So that is the reason they were not part of our last presentation. But then, let's say you were, you were already building this project, and it had scheduled timeline of June 2027. So, so would this be accommodated at same place in terms of connectivity, land, and everything? So how can the planning be so quick within a span of 12 months for something which is just won? So, see, as we, I have told you, we have got connectivity for even seven gigawatts post this, post the allotted this thing. So you know, we are not treating the under construction projects and the PPA signed projects as far as the land and transmission line are concerned, because they are long lead items. Mm-hmm. And connectivity, of course. Without connectivity, you can't hope to be in business, even bidding is not advisable. So we have land, transmission line, right, which is going on. And also, we have, let's say, long lead items also, like a power transformer ordered. Because we are very confident that these things will happen. If this PPA does not get signed, the other PPA can get signed. Right. So when we plan a project, we plan a particular set of sites, which we keep on developing. Of course, we don't order batteries, we don't order modules, and we don't order, we don't take any financing. Till then, we push through our equity.... So, and this is not certain. These are all sites which are developed. When we are telling you that 770 MW of PPA will also get signed, right? So for those sites also, we have the land and transmission line. Because we see, because of this transmission waiver thing, you need to do that. If you don't do that, you will not get a customer for your PPA, because the customer wants the power, before the June 2027 or before June 2028, because these are the timeline. Post-June 2028, everybody is equal, right? Because there is no differentiation, in terms of the transmission waiver, and it reduces the attractiveness of the CTU-connected projects. So, so it is important to do that, and, and we have been doing that. Sure. And if you could, you know, break up the 770 MW, which is further PPA signing you are expecting. Is it? Does it pertain to old projects or new projects? So, yeah, this 770 MW is a mix of old and new projects. And of course, like I said, just before this, it's a, it's a function of the preparedness. When a state is looking at, of course, he looks at his own requirement in terms of peak power. So all these have a peak power element, and also they have a high peak power element. Basically, they look at the mix of how much peak power are you able to supply, how much wind power also sometimes. They, they have particular requirements depending on each state to state, depending on their power profile. So it's a mix of old and new projects, and of course, it's based on their requirement and also the timelines in which we are able to supply and the readiness. Because, see, a lot of states have procured power which are not coming on time because of the connectivity delays, because of the land delays. So they are really trying to see whether you can deliver that power within the timeline, because everybody is very conscious about the timelines now. So this is a mix of old and new. We have not disclosed the exact thing because we will like to disclose once the PPA gets signed, but of course, they are in advanced stages of regulatory approvals. Fair enough. Thank you very much, sir. All the best. Thank you. Thank you. The next question comes from the line of Pradyumna Choudhary from JM Financial Group. Please go ahead. Yeah, hi. Thank you for the opportunity, sir. Just one question regarding the project cost, like, in your PPA as well, and in your opening remarks, you spoke about the equipments currently being ordered within, within the budgeted cost. So what really do we mean, like, by this budgeted cost? Like, what sort of target IRRs or the budgeted project IRRs are we assuming? That would help us get more sense of the kind of prices we are bidding for, right? Sure, sure, sure. So, so, we take care of high-teen returns. That is the threshold we have that we don't bid for anything lower than 16% return. I think we mentioned that in the past also. So high-teen return is our threshold. And when we look at, for us, let's say a 1.5% movement is a very significant movement in IRR. So when we say there is no impact, it is less than that usually. And in terms of the, in terms of the CapEx, so like we said, we have changed our strategy basis let's say preponing the batteries to utilize that CapEx. We are not. We are able to order batteries at a short time because we have connectivities which are operational and which can take batteries. See, nobody will be able to keep batteries for more than six months because they degrade, right? And because, there is a CapEx involved, there is interest during construction. So only, a developer who has, who can make them operational will be able to get those batteries. So, so that is why these returns are not impacted, because we are able to get those batteries, because, you know, there is, there is so much capacity established in the world, primarily China, which... So, so there are very few guys who are able to take deliveries, let's say, in March, April, May, right? That is how world works, right, in terms of, what actually can you take. There may be somebody who is willing to give them an order for next year, but they will not quote a price for that guy. All right. But, like, my concern relates more to the fact that, like JP said, the tariffs have already been decided, and, I'm assuming the batteries or the solar modules are ordered towards the end of the project, CapEx, right? So, there, how are we really protecting ourselves? Even there, we are within the budget, and especially for the ones where, 50% of the remaining, like you said, that 50, for 50%, we've already ordered, and for the remaining 50%, it's still yet to be ordered. So for- Right. What are our plans for the remaining 50%? Right. Right. Right, Pradyumna. So, so, Pradyumna, so why do we say that we are within budget is because, see, the policy change. There is a policy change in China, right? So post that policy change, in April, we have April delivery, which is happening at a price which is, you can say, much less than the budgeted cost, which is a high teen returns. So, that is why we are saying that we are within budgeted cost, because the marginal delivery we are taking in April, basically the April price, post the regulations, is also well within the range. And 50%, of course, we have procured, where we are installing them. That is well within the range also. So that is, on that basis, we are saying that we are well within the budgeted cost. Understood. And on the PPAs, I believe now around 800-1,000 MW is what, Yeah. We don't have near-term visibility, right? Like, where we are yet to sign the PPAs and there's no near-term visibility. So, what sort of timelines are we looking there? Like, especially when you say that we have a near-term visibility for, say, around 750 MW? So, by near term, you're meaning the next 3-6 months, is that what is reasonable to assume? And, what about the remaining months? Again, the reason, if you can just repeat the reason you gave for us expecting acceleration in PPA signings. I didn't—I know you answered to one of the previous participants, but I didn't really understand it, so if you can just repeat the reason as well. No problem, no problem. Completely understand your query. So in terms of the, beyond 770 MW, right? There is a very... When we say near term, we basically say that when there is a buyer approval. Basically, the first thing you need in a PPA discussion is the buyer approval, whether they are okay to take that offering or not. So we have buyer approval for this much capacity. We don't have a written buyer approval for the rest of it. That is why we did not say near-term number. But there is a very good chance of those PPAs also getting signed in the next quarter only, right? Mm. Which is around 700 MW more, other than 770 MW. And why did we not put it? Because there is no written buyer approval we have, right? And there are differences in how each state procure power. Somebody takes a prior regulator approval, somebody takes a post-signing approval. So there are various stages in a PPA implementation. The PPA gets signed, somebody takes a prior approval, which is good for us because it includes definitiveness. Somebody takes a post-facto approval, that is also fine. We have to go along with it. So that 750 MW more of FDRE hybrid PPA, that is again at a very advanced stage. And also there is a timeline difference between each state. We have not put it because we only want to put it where we have a buyer consent, but there is 700 MW more of PPA, which is under advanced discussion, but I don't have a written thing to write. That is why we did not write it. Understood. The reason you were saying that, overall, in the industry, we are expecting the PPA signings to accelerate. Could you just repeat that again? Yes, yes. So, so the reason primarily is that, these set of players who have won these bids, right? Of course, they are serious players, and they have made, because, see, they have made significant investments on getting connectivities, on offering earnest money deposit, performance bank guarantees, and they have got huge fixed cost in terms of teams. So most of the players who have won these bids, 42 GW of bids, are quite serious about building those projects in 2026, 2027 and 2028. And this is the period which gets you a ISTS waiver as a buyer. Basically, you are aware that ISTS waiver is expiring on the central grid, in 2026, 2027... in phases. So the states find it, and states which don't have a good renewable, at their own state, they don't have flexibility to build state-connected projects because they are expensive, because the sunlight is not there. So those states, particularly, will be very keen to buy these CTU-connected projects, which have a transmission waiver element built in. And who can supply to them? Nobody where the bid happens today will be able to supply, with a ISTS waiver in hand, right? Because the bid cycle itself is very long. They take 90 days to do an auction, and then there is an LOA, and there is, of course, the element of buying the Chinese cells or Indian cells also, which makes the price slightly costlier. And of course, it will take time. So because of the preparedness of the supply side and also on the demand side, this ISTS waiver expiring, these two are making an attractive win-win proposition. The only hitch which was coming was there are concurrent offerings of similar kind outstanding from various bidding agencies, which is making the choice difficult for these buyers. So that is the reason the PPAs were taking time, because it was actually done, let's say, on a standalone basis by all four agencies, which created a sort of glut of supply of these PPAs, which leads to delay. So as people choose what they want to buy, and the suppliers also customize their offerings and choose what they want to sell, how it will be attractive to the buyer, I think it will clear. And of course, the power demand in last year also plays on people mind, that how do I see the power demand coming up? So some of these. And of course, there are elections every state, every year we have some election, which also delay these things. So and it, and there is a cycle itself which takes time. So we are expecting these things to happen because of the preparedness and also because of the regulatory ISTS waiver thing. Usually, the ISTS waiver, how much, on a per, like in terms of the tariff, can it cost additional months, for the projects commissioning post 2028? So, see, there is each state has a different sort of charges, depending on how much their transmission infrastructure is utilized currently. So, for on a, let's say, if there is no rebate, the power it could go up to INR 1, more than INR 1, if there is no rebate. For solar, actually, this is—this will be at a different discovery. So for example, if it is only solar, it may go up to INR 1.30-INR 1.40. If it is solar plus battery, it can come down to INR 0.80. If it is FDRE, it can further come down to INR 0.30-INR 0.40. That's why you will see more and more power is round-the-clock power or FDRE, to reduce the impact of the FDRE, to reduce the impact of ISTS waiver in future. It's very substantial. For each state, we have seen. It is very substantial because NHPC and SECI and all these agencies are very mindful that, "Can you give it before 2027, 2028?" And it is very important. We have not seen a state who does not care about it. All right, and my last question is regarding the under construction projects. So are we, like, of course, our execution has been brilliant, but on the grid construction, are the grids also corresponding grids, are they coming up on time, or are we expecting certain delays over the next couple of years, the projects that we've planned to launch, commission? See, there was a, it's a very, very hotly reviewed project thing at all levels. So, in terms of the planning of these transmission projects, there are a lot of changes which have happened over the last few year. They have given a, let's say, earlier they used to plan it in 18 months, now they are giving a 24- to 30-month period to these transmission period. They are planning it early. They are coming up. So, this gives a lot of time for these guys to come up with the on the committed time and not getting extended. So of course, there, what we are seeing is we have kept a buffer of a quarter delay in all our planning. So, of course, this can happen because, depending on what are they upgrading, right? In some cases, they are building a transmission line. In some cases, there is no transmission line. So if there is a transmission line, there could be a, let's say, a one-quarter delay because of ROW issues and other things. But if there is a local installation of a, you can say, electrical infrastructure only, then the delay is very much unlikely because these are a local execution. But by and large, we track the various cycles of these transmission infrastructure, and we don't see a delay in where there is no transmission line. But where a transmission line, a 3-month delay, can be there, and we keep on monitoring our CapEx, as per that. If we foresee that it could extend, we defer that CapEx. And also we can take the strategy of... We have already done that, right? To hedge that risk, we had to call batteries at the operational substations. We have broken the plant into two, right? The batteries at the operational substations where there is no risk at all, and then, the modules at those plants where the new infrastructure is coming up. So you can take multiple ways to solve this problem, because this is beyond our hands. All right. Thank you and all the best. Thank you. Thank you. Thank you. Ladies and gentlemen, due to time constraint, that was the last question for the day. I now hand the conference over to the management for closing comments. Thank you, and over to you, sir. I would like to thank you. Thanks to all of you, that you had a very, very important question you asked us, and I hope my team must have given you the inputs. If there is any further input, we will be very happy to provide. We can assure you that we are working on the technology, we are working on the execution, we are working with the government on the policy advocacy, and we are also working on the regulatory framework. So as a company, we believe we are not only just doing execution, we are also creating a policy framework for entire industry, and we are also doing something on the technology side. I think I must have shared with you in my last presentation that, we are already testing perovskite technology, and, we believe that, that will be very useful in the coming, years. So we have already started. That is, that will give the industry as well as Acme an input to see that the, whether the technology moves from the current silicon-based to perovskite-based. We are also doing robotic installation. That is one of the challenge in this industry. If you want to increase from 1 GW, 2 GW, per year to 5 GW per year, one of the biggest challenge in the industry was how to install, 5 GW, 6 GW of modules manually. So this year we are doing, automation of that. We have created a very special, innovative, very special team, only focusing on the future technology, which can help us to install without the manpower. So that's a robotic, we are doing that automation and implementing robotic. That's the second thing we, we are doing. Third thing, we have applied for the patent on the two, three areas. That is also one of the significant improvement by our R&D team, where we will be working on the optimization of the battery, renewable wind, so we can provide almost like a base load power to the base load power, similar like nuclear or similar like this one, and much cheaper than thermal or nuclear. So those are the areas Acme always is known to work on, and I can assure you we'll be continuously working and taking it forward. Thank you. Thank you. On behalf of Acme Solar Holdings and Motilal Oswal Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.