Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2027 Earnings Conference Call of ACME Solar Holdings 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 the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to management. Thank you, and over to you. Thank you. Good afternoon, everyone, and thank you for joining us today. I am Ankit Verma, Director of Corporate Finance. I am joined by our Chairman, Mr. Manoj Kumar Upadhyay; Mr. Nikhil Dhingra, Joint MD and CEO; and Mr. Arun Chopra, CFO. It is my pleasure to present the highlights of our performance for the second quarter and the first half of FY 2027. Let me begin with our financial performance. Total revenue for the quarter stood at INR 1,007 crore, which is up 67.5% year-on-year, while EBITDA increased 63.6% to INR 874 crore, driven primarily by short-term peak power BESS operations and renewable capacity additions. Our blended EBITDA margin was 86.7%, which comprises 90.8% from renewable generation and 78.3% from BESS operations, where the cost of power purchased to charge the batteries sits within the operating expenses. Profit after tax rose 133.5% YoY basis to INR 269 crore, which represents a PAT margin of 26.7%. Our asset base grew by INR 11,466 crore over the year to INR 28,462 crore, following the commissioning of BESS and RE projects. Coming to our business and execution updates, we made strong progress across commissioning, PPA signing, and short-term peak power BESS contracting. We have commissioned approximately 5.2 GW h of BESS capacity till date, which is the second-largest BESS capacity in India as of date. We achieved our initial half-yearly target of 5 GWh, which we mentioned in the last call. With this BESS and solar commissioning, 1.9 GW of our contracted projects are now partially commissioned. In addition, 1.7 GW of modules have been delivered to site, out of which 1.1 GW are already installed across multiple projects. Out of this installed 1.1 GW module capacity, 200 MW peak of modules is already charged, and the balance is expected to be charged by November to December of this year. We signed 430 MW of FDRE PPAs during the quarter. Additionally, we yesterday signed another 400 MW FDRE PPA with NTPC, taking the overall PPA signed portfolio to 92% out of the total contracted portfolio of 8,370 MW. Through short-term BESS contracts, we have locked in more than INR 1,600 crore of revenue for partial sale of FY 2027 capacity and more than INR 1,500 crore for partial sale of capacity for FY 2028, with the balance to be tied up through future bids. Our CUF for the quarter improved from 24.1%- 27.8% year-on-year, and power generation grew 19.6% to 1,840 million units. Additionally, we sold 324 million units through short-term peak power BESS contracts. The weighted average cost of debt for our fully operational projects is around 8.4%. Around 65% of these borrowings are from PFC, REC, IREDA, and NaBFID, whose rates follow their own long-term cost of funds and which limits interest rate volatility. Further, Crisil has upgraded ACME Solar Holding rating outlook to A A - (Positive) from A A- stable. Turning to the key sector and regulatory updates, below are the favorable steps taken by the government benefiting all the stakeholders. First, BESS connectivity. CTUIL has initiated the grant of BESS connectivity under non-ROFR route, speeding up deployment. For us, it helps build a large BESS pipeline at preferred high GHI sites in Rajasthan. Second, Green Energy Corridor Phase 3. The union cabinet has approved INR 1.36 lakh crore for intrastate transmission and INR 50,000 crore for 50 GWh of BESS, targeting the evacuation of 135 GW of renewable energy. This is expected to open up new opportunities for us in the state-connected renewable projects. Third, the Pradhan Mantri Surya Ghar Muft Bijli Yojana. The scheme targets 5,000 MW of floating solar with at least two hours of co-located storage and provides central financial assistance of up to INR 1 crore per megawatt after commissioning. This opens up new business opportunities for us in the floating solar market. Lastly, use of curtailed energy for BESS charging. Wherever the GNA is delayed, curtailed solar under the PPA can now charge BESS for merchant sale. This gives us the opportunity to commission our solar capacity ahead of scheduled GNA and utilize that energy in BESS. Overall, these developments reduce risk, widen the opportunity set, and support our focus on BESS deployment. Looking ahead, let me share our upgraded capacity roadmap. Given our execution momentum and the scale of the opportunity, we are raising our targets across all three timeframes. FY 2027, BESS commissioning guidance raised from 10 GWh t o more than 12 GWh driven by our early deployment strategy. By 2030, our renewable target rises from 10 GW, with 25 GWh of BESS, to 15 GW, and 50 GWh of battery, doubling the storage component. Below are the several factors that support delivery of this roadmap. A strong tender pipeline, 20+ GW of upcoming tenders across solar plus BESS, FDRE, CFD, and PSP. 50 GWh of peak power bids already rolled out till September 27, and another 200 - 250 GWh of short-term peak power contracts expected in the near to medium terms. 20 GWh of medium-term peak-only tenders expected shortly. As we speak today, SECI has launched a large 4 GW/16 GWh auction for 4 hours of assured peak power, which requires commissioning within the required 12 months. The tender also carries VGF funding of INR 15 lakhs per megawatt hour. Secondly, about 10 GW of RE connectivity inventory that we have, which is secured and applied for upcoming bids over and above our existing portfolio, and 5+ GW of BESS connectivity already granted. Third, about 19 GWh of BESS already contracted with reputed suppliers including CATL, HiTHIUM, Ganfeng, Trina, and CLOU. I would now hand over to Manoj, sir, to discuss strategic priorities for the company going forward. Thank you, Ankit. I would like to extend my sincere gratitude to our shareholders, our board of directors, and my team, who have continuously supported and guided the company in the right direction. Our strategy going forward will rest on five pillars. Together, they are building a return-led, self-financing renewable platform with contracted, visible cash flows. First, return on capital and profitability. We allocate capital to the highest return opportunities. Megawatts matter, but the measure we would ourselves to earnings growth and the quality of these earnings. Second, BESS as a cash engine. On a rolling basis, we expect to operate around 10 GW h of BESS, subject to tariff realization. Its cash flows fund our growth and reduce the equity needed for new projects, making this a self-financing platform. Third, execution excellence. We are focused on higher CUF, continued BESS addition, and keeping solar and balance of the system ready for upcoming projects. Being ready ahead of the grid improves margin and hedges us against transmission delays, as our assets can start earning before full GNA. Fourth, margin improvement. Curtailed solar can now charge our BESS, so energy that would otherwise be lost lifts BESS EBITDA and cash flow. And we have tied up CapEx for both BESS and solar below budgeted costs, building better margin in from day one. Fifth, contracted revenue visibility. Long-term PPA anchor our portfolio revenue, while short-term peak power contracts monetize our BESS capacity, giving us high visibility of future cash flow. With that, I conclude my remarks. Thank you for your continued support. We will now be happy to take your questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 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. First question is from the line of Puneet from HSBC. Please go ahead. Yeah, thank you so much, and congrats on great performance, and looking forward to your targets. My first question is, given the context of delays in transmission, what is the revised number of capacity additions that you intend to do for FY 2027 for power generation? Also, what should one think of as annual CapEx and capitalization plan? Right, Puneet. So, of course, we understand the delays in the GNA, right? We have reoriented our strategy around it in terms of the BESS commissionings, which we have done. As you would have noted in our quarterly presentation, we have partially commissioned around 1.9 GW of capacity through a mix of solar commissioning and our BESS commissionings, as you would have noted. As we are commissioning these capacities, we are realizing the revenue, which is seen in these quarters. If you look at the complete commissioning of an FDRE plant or a hybrid plant, that is dependent on the GNA commissioning coming online, right? Right. As per the current timeline, we are hopeful that we will be able to do 1.5 GW. Right? It could be more, it could be less by a quarter, depending on the GNA commissionings. Of course, as far as the partial commissioning go, it will be substantially higher, maybe 2.5, 3 GW, because as far as AC commissioning go, we have already charged 2.5 GW of capacity in terms of that. If you look at revenue generation elements, as we have clearly mentioned, we have charged 1.9 GW of capacity commission. Given these FDRE constructs and the peak power constructs, these are now distributed across multiple CTU substations. So tracking the full commissioning does not mirror the revenue generation. The BESS comes online early. In two of our, actually, plants, we have charged solar also. Because the GNA is not live, we are using it to charge the BESS. The GNA is partially available, let's say, at Bikaner III. We are supplying to NTPC during the day, whenever the GNA is available, rest of the time it is going to the BESS. The plant is commissioned, but of course, since the GNA is not available, we are using it very productively by reducing our cost of production. That's how we will continue to share the details also in terms of the commissioning and also in terms of the elements commissioning. No, I get that. The 2.9 GW includes all this. Yeah. Sorry, just to complete the reply on the CapEx. CapEx also is something you asked. We have done around INR 10,000 crores of CapEx this year, till date. Okay. 6,000. Sorry, INR 6,000 crores of spend, out of which three and a half is capitalized and three is CWIP. So INR 6,500 crore is what we have done already, and I think we will do similar amount or a higher amount in the second half of this year. Capitalization also similar number? Yes. Because we are targeting to capitalize whole of 12 GWh of BESS in this financial year only. I think the number will substantially go up from what we have done in the previous half year because the BESS is ordered, the LCs are getting opened, and we have money line. As you would have noted, there is a lot of cash, because of the disbursements we received in September. All of this will be utilized into CapEx. Right. On the generation side, the 3 GW, where should it end of FY 2027, including what you use to power your own BESS? Generation side to power our own BESS, I think what you mean to ask is there is BESS and there is generation to charge that BESS or to supply to the grid. Right? Sure. You want to know that number. It will be upwards of 1.5 - 2 GW, in terms of that generation, in terms of the megawatt peak we will install. And of course,- Okay. Bulk of it will be driven by Fatehgarh 2, which has around already installed of around 700 MW peak is already installed at that. We are just awaiting the GNA going live. Our transmission line is more or less ready. And then Neemuch, and then Bikaner III, these three only will take this above 1.5 GW. And of course, we have Anantapur also coming, which will take it to around 2+ GW. So, on the generation side. And this could go upwards. I'm just saying the basic three, four projects which we see as coming online before March, depending on the timelines of their GNA. And not at all places we are using this to charge battery. Because Anantapur, because the substation is coming live earlier, we may charge the solar first, and the battery may come later or battery may come concurrently also. Understood. On the debt side, how should one think about your cost of debt going into the future? You also have a credit rating upgrade, but at the same time, there's also interest rate rising. Yes. You are right. Of course, the global and the Indian situation is moving towards stabilization or some increase in the interest rates, of course. As Ankit mentioned, we have analyzed this issue, and we have reviewed that 65% of our debt is from institutions which borrow very long-term. If you noticed PFC, REC, IIFCL, and of course, NaBFID, these institutions borrow very long-term. Only 20% of their book is on a five-year duration borrowing, which they refinance every five years. Rest of their book is fairly stable. If you notice their behavior in last five, 10 years, they have not increased their base rates as frequently as an MCLR linked institution would do. We don't foresee interest rates hikes from, let's say, INR 10,000 crore out of our INR 15,000 crore operational debt book, which is there. On the under-construction debt, of course, as you know, once the project gets operational, there is a substantial reduction in the interest rate, which purely happens because of credit risk reduction and nothing to do with the interest rate cycle prevailing. Let's say 9% + interest rate, which we are paying in lot of these projects, which are under construction, will move down to substantially sub-9% rate. That's something which is independent of the macro. It is a micro related to our company, which will also play out. As we are seeing, even during the under-construction phase, we are getting two projects refinanced, which is in progress, where the battery is commissioned. The solar is very close to commissioning, but we are getting it refinanced. That is also going on because the risk is currently out of the picture in terms of the commissioning of both the elements. That battery is commissioned and solar is very near commissioning, and the GNA is also going to get commissioned. We are getting good demand for such where even during the construction phase, we are able to refinance. Understood. That's very clear. Just lastly on my side, on the 400-MW NTPC tender that you signed, who's the off-taker, and has the tariff been reduced to INR 4.37 from earlier INR 4.7? What's driven that? Yeah. NTPC is the off-taker for that FDRE PPA. Tushar, we have not reduced the tariff in that one, right? We have reduced. In the NTPC- We changed it now. There is a GST 5% and 12% impact, which is a tentative estimate of that tariff. That is not a tariff reduction. That is basically the GST reduced to 5% from 12% post the RFS. There is no tariff reduction in this particular PPA. I think we have increased the hour of battery, one hour of battery. Yes. Right. 4.5 Hours. Four hours of, 4.5 hours battery. Yes. We have increased the battery from 4 hours - 4.5 hours, but we have not reduced tariff in this one. Understood. That is very clear. Thank you so much, and all the best. Thank you. Next question is from the line of Amit Bhinde from Axis Capital. Please go ahead. Hello, sir. Am I audible? Yes. Yeah. Congratulations on the great set of numbers and the revised guidance. Just a few questions. One, in the previous question, you mentioned that you have done a CapEx of around INR 6,000 crore and you would do similar probably in the H2. That is revised guidance of INR 12,000 crore. I think earlier we were talking about INR 15,000 crore -INR 17,000 crore. Any change in patterns because of the transmission connectivity or any other reasons? Right. We have done a CapEx of INR 6,500 crore already. We are yet to receive batteries of around, you can say we have around 7 GWh of battery with us today at the sites. We are yet to receive 5 GWh of batteries, for which we have opened LCs and they have not been capitalized, or they are not part of the CapEx. It will be a substantially higher number than INR 6,500 crore, which we are hoping to do. We are also getting modules for sites where we are able to charge these batteries. We are quite confident that it will be a higher number than INR 6,500 crore. I do not have a ready number with me right now in terms of the H2 CapEx exactly, but we will be able to share with you. It should be higher, going by these two things. In terms of the GNA dependency for CapEx, for battery, we have no GNA dependency because we are only doing battery installation at places where GNA is available. Right. For modules also, we are only doing where we are able to either charge our battery or supply to the grid. Which is a big runway for us because we have a large amount of megawatts which we can install at places where we have batteries or where we have GNA. That will not be a limiting constraint for CapEx for us. Got it. The second question that I wanted to understand is that you have mentioned that you have done 1.9 GW of partial commissioning of the projects. If I just take a 25% PLF on that for this quarter, it would mean about 1,000 million units, and because BESS has supplied only 324. In a way, are we implying that we had around 650 million - 700 million of curtailment? Sorry, I missed your query. Could you come again? You have 1.9 GW of capacity, which is pre-commissioned. Right? Right. If I just take a 25% PLF on that, it means about 1,050 million units generation in the quarter. BESS is only 324, and we have also taken external purchases. In a way, is it right to conclude that curtailment was close to around 700 million units? No. How you should look at this commissioning is, you look at the elements which you got commissioned. Right? There is solar which got commissioned at some places, and there are quite a few places where the solar is not even commissioned. Right? It is only battery. Okay. Wherever the battery is commissioned, it is purely charging of that battery and discharging of that battery. Right? Okay. Because the solar is not there, this 25% CF is not applicable. Right? Wherever the solar is charged, there also the capacity is partially commissioned as of now as mentioned. There also, let's say at Bikaner, currently 133 MW is charged out of 300 MW. So for 133 you can benchmark 25% in that specific project. Okay. Mm-hmm. Yeah. We can give you, I think in the next, we can incorporate the exact numbers so where you can match this 25%. Yeah. Because- I will request that is we can have that in the PPT as to what is your planned configuration and how much has been commissioned in the operational table below. We will do that. In fact,- We will do that in the next presentation. Yeah. The last question that I have is basically if I look at your Q1 - Q2 gross block difference, that is almost about INR 1,782 crores, whereas the operational debt that I am seeing, that is increasing by around INR 31 billion. So the INR 3,900 crores. Ideally it should be 75/25 or 80/20 when you recognize as operational debt. There is a mismatch, if you can help me understand the accounting behind that. Amit, you are comparing Q1 FY 2027 with Q2 FY 2027 or- Yes. Corresponding go to Q1, yeah? No. Q1 FY 2027 QoQ. QoQ, your gross block has gone up from INR 196 billion -INR 214 billion, so that is a INR 1,782 crores of gross block increase. Whereas if I look at the operational debt increase, that is around INR 3,100 crores. Ideally, I would have expected a 75/25 or 80/20 kind of a recognition into operational debt when the project gets capitalized. But here the difference is higher. If you can understand the- Let me just put up the numbers for your reference, so that we are clear. In Q1 FY 2027, our gross debt was roughly INR 20,000 crores. In this quarter, it is INR 26,500 crores. That is number one. Gross block for Q1 was around INR 24,900 crores. For this quarter, it stands at roughly INR 28,500 crores, which is roughly a CapEx of roughly INR 3,500 crores, which we are talking about during the quarter. The gross debt increased partially because some of the refinancing must have also happened. The rest of it went into CWIP. The rest of it went into CWIP. But then, I'll try to take this offline because the operational debt is appearing more versus the CWIP debt than in that. Yeah. And some of the debt happened at the quarter end, which anyway is reflecting as a cash balance in the book, which is INR 10,000 crores. Right. Which is INR 10,000 crores. Yeah. Okay. Just to understand, could there be a possibility that you are taking more debt on the operational asset and funding in some of the equity through that for the CWIP? Is that a possibility? No. That has not happened at least in this quarter or the previous quarter. That is not the case because, when we typically refinance is when the project just becomes a COD. That is when you deserve a top-up because, the net equity can move from 75/25 to a higher number. This has not happened in the two. What we have really done is we have taken disbursements early, on these FDRE and peak power projects to push our battery CapEx. That has resulted because, as you know, the battery CapEx for us is quite front-ended. We are ordering gigawatt hour of batteries. All those projects, battery debt has come in early. The battery LCs are only opened when required. This is a factory acceptance test. At that time you open an LC, even though you take debt at the end of the quarter or whenever, because it is an aggregate disbursement, they do not open each and every LC period. There is a time delay between the disbursement and the utilization of the debt. That is why you see a lumpy amount coming in terms of the gross debt. Whereas the CapEx is happening as we open these LCs and we install those batteries or deliver these batteries. That is how it will pan out. You will see this flow of debt converting into gross block and converting into revenues also, because the timescale from installation to revenue is very short in a battery project, and we are only calling for batteries where the GNA is live and where we are ready. Right. Got it. Only one data question. How much units internally were used to charge the BESS? If you can give that, and second, the average purchase price of the BESS that you have recently ordered in Q2. I think Q1 ordering was around 15 GWh. Now you have 19 GW, so you have ordered 4 GWh during the quarter. How has been the rates because lithium carbonate prices are going up and BESS CapEx can see upside to the INR 1 crore that you have been doing till now. So in terms of the solar being used to charge BESS, out of the 133 MW, Manoj, how much is- Around 700 MWh per day. Which is around 80, 90 MW of AC. It's around- Around 90 - 100 MW of AC out of 133 MW is used to charge the BESS, and 30 - 40 MW is going to the client. Okay. Got it. On the BESS CapEx? On the BESS CapEx, of course, we have done lower than INR 1 crore per megawatt because, as you know, the key difference in the CapEx for us is we are installing BESS at operational substations. Mm-hmm. Yeah. The CapEx for the transformers and the AC infrastructure exists at these plants. We are not doing a greenfield installation. That saves us around INR 20 lakh per megawatt hour of CapEx. That is why we have been able to do between INR 90 lakh - INR 1 crore kind of a number for the CapEx, which we have capitalized on our books. In terms of going forward, what we are seeing is the lithium carbonate prices have come down, the copper prices have gone up, and of course, the Chinese taxes coming into picture in January, 6% tax is there from export tax. It is a combination of factors. But, overall the battery doesn't look to be going up at all. It will go down. How much it goes down is dependent on the three, four factors we spoke about, and of course, on the supply and demand and various other geopolitical factors. Right. Got it. Those were my questions. This was really helpful. Thank you. Thank you. Next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yeah. Good afternoon, sir. Thanks for the opportunity. My first question is, sir, are we seeing a change in the bidding environment where SECI is floating bids after completely tying up with the power which is cost and thereby conversion to PPA are happening faster? Is my understanding correct? Yes, please. That is a correct understanding. As you can see in the cycles of our recent PPA, we won a PPA and it got signed. We won a bid and it got signed to PPA within two months. That is absolutely true. Of course, the selectiveness with which the bids have been coming is also very praiseworthy, I must say, because they are actually collecting the exact bids they need to do from the states and coming up with only those bids. Whether it is a PSP bid or a wind bid or a peak power bid, it is actually catered to only the demand. They are not coming up with bids where there is no customer, and there is a pre-tie up of customers because otherwise you cannot do these two months bid to signing. It is impossible to do that otherwise. My second question is on the batteries. Can you please help us understand the battery PPA tie-ups which you have done for INR 15 billion and INR 60 billion for FY 2027, FY 2028, if I believe this is the correct number. It is possible to quantify how much of the current capacity you have tied up for H2 and FY 2028? Are we exposed to the input price volatility? For FY 2027, we are around 90%, 95% tied up. In terms of what we can produce, we have contracted. We keep around 5%, 10% for RTM kind of a sale. In terms of FY 2028, we are around 65% tied up or maybe 50% - 60%. We will confirm that number, but around that number is what we are tied up. In terms of the input prices of, in terms of the CapEx, you are asking, Mohit, or you are asking about the cost of buying power? You are talking about cost of buying power? Buying power. Yeah. Of course, we don't have any tie-up for the buying power as of now. We are, of course, dependent on these IEX prices for buying power. But wherever we are producing our own solar, which is a large number, we are more and more reducing that risk because I think by end of March or maybe by June, at quite a few places, our solar will be fully ready to charge these batteries, which we have at that stations, because they have that kind of configuration. Our procurement from IEX would reduce substantially. In the next presentation, we will incorporate that also, that how much we will buy from outside versus how much we will have. But we will give you that number. Sorry to interrupt, Mr. Mohit Kumar. When management is answering your question, may we request you to please mute yourself because there is a disturbance. You may go ahead with your questions. No, I'm done. Thank you, sir. Thanks for the opportunity. Thank you. Okay. And all the best. All the best. Thank you. Next question is from the line of Sourabh Arya from Oaklane Capital Management. Please go ahead. Yeah. Hi, sir. Am I audible? Yes, please. Yeah. Hi. Yeah. Congratulations on this set of numbers. So I have two questions. One is on your Strategy 2.0. Of course, for 2030, we are saying now we can do 15 GW. But what we have seen in market is ultimately grid connectivity is the challenge. So for our existing projects already, of course, we are not able to fully commission them. So in that context, how realistic this 15 GW target is? If you could throw some light. Yeah. Sourabh. I think, see, as you must have noted from our strategic plan, which we have also mentioned in the presentation, we are focusing more on the revenue generation possibility than the absolute megawatt number. I think you have pointed out really well that we are not versed about the- I am so sorry to interrupt you here, sir. Mr. Sourabh Arya, may we request you to please self-mute your line when management is answering. There is a disturbance coming from your line. Yeah. Thank you very much. Sir, you may please go ahead. Right. In terms of the strategy, we were just explaining that the strategy is more about, of course, in terms of the numbers. In terms of the revenues we can generate, the profit we can generate, and of course, the pace at which we can grow. In terms of our strategic alignment, we are fully geared up to grow at a very fast clip in terms of both of these. How we achieve these gigawatts and how we achieve these crores is of course linked to the connectivity we have, which is more than required for this 15 GW. And the timelines of these substations, which is also very well in planning and very well in delivery. 15 GW is not at risk in terms of the GNA connectivity because the substations we are targeting for these 15 GW have a timeline of 2028 at last and maybe early 2029. The delays we see in these substations, and now the substations are coming up with a timeline of 36 months, 30 months. That is the extension already being done by CTU or the MOP in terms of the planning, which is, again, a very good step they have taken. Even if you factor in a six months delay or a 12 months delay, we are within our goal of achieving this capacity. And in terms of the BESS capacity, again, we have enough connectivity for doing those BESS projects we have spoken about. The main thing I think, Sourabh Arya, which we are working on and keep working on is the customer. Right. To have the demand for such projects and to be able to do these projects. What may happen is we may do, let's say, a 17 GW and a higher amount of BESS, right, which is entirely likely going by the amount of peak power deficits which is coming. If you notice the tender which Ankit spoke about, right? It is a higher amount of peak power which is needed. And in terms of revenue realized per megawatt, it is much higher, right? The profit realized is also potentially higher. In terms of connectivity, in terms of the demand, of course, they are there. And we see good demand coming up because as you see the power prices in India, people have realized that you have to go full steam on all the sources and not choose a particular source. Thermal may come up, right? Renewable is also coming up with firm demand backed up, and peak power is also coming up. We see that a lot of bids are coming, which are very rightly designed and which capture through the real demand. We don't see a demand from all these three perspective of connectivity tie-up, the demand availability, and of course, in terms of our execution abilities. We don't see a challenge, and that's why we have upgraded. Because what we noticed is, we have already 8.5 GW of PPAs, right? And we are going to participate in more than 3 GW -4 GW of PPA very soon. We noticed that if we get those PPA done by end of 2027 or so, we will definitely be around 12 GW of capacity by 2029. And if we assume something in, let's say, a lot of BESS we are doing, for which there is a ready customer available. There are a lot of states which want to buy those peak power projects. It is, I think, very safe to assume that in terms of contracted capacity, we can reach there by 2027 in terms of tie-ups. Of course, the execution will go on till 2029 and 2030. But in terms of PPA tie-ups, we can go there by end of next year, calendar-wise. Okay. Could you throw some more light on this 10 -1 5, of course, so incremental this 6 GW. So how much of this you are thinking on data center, hydrogen molecule, maybe from your own ACME Cleantech? Their plans are also going pretty ahead. So if you could divide it, will the nature of the business change from current PPAs with these central utilities? Or if you could divide that. Sure. Yeah. No, that's a good question. So in terms of the overall growth we are seeing in terms of demand centers, we don't see a change in the nature of the customer for us. Of course, there'll be incremental demand coming from various other sources, including what you mentioned, data center, green ammonia, and multiple other demand areas. But our primary source for capturing this would be these triple A PPAs, with these counterparties like SECI and NTPC, SECI primarily now, and of course state governments. The addition to this would be state governments, which is entirely there. And of course, we will participate in the SECI bids. SECI is procuring power for green ammonia projects also. So their feeder to SECI is increasing. Whatever sources you mentioned in terms of data center, green ammonia, SECI is also catering to demand for these sources also. So in terms of the conduit for us to get these PPAs, that will remain a triple A counterparty, and that is what we want to achieve. And we don't see a shortage of these bids. Like we mentioned, we have sufficient bid to take it from 10 - 15 GW. We are already at 8.5 GW. So if we kept it at 10 GW, right? We are at 8.5 GW already in 2026. So that doesn't show any growth in terms of our contracted capacity for the next two years, in terms of bids won and PPA signed. So because we have been winning projects to the rate of around 1.5 GW every year for the last three, four years. So I think even if you project it like that, we are bound to reach that number. We see a great increase in these bids coming up because of the shortage of peak power in India, and that is playing out in the terms of prices already. We see that 10 GW - 15 GW and incremental 5 GW capacity being won by us in the next 12- 18 months for sure. We are not factoring anything from ACME Cleantech in this, or that is also a part of it? We are not factoring in anything from the ACME Cleantech. Of course, it could increase this 15 GW further, if ACME Cleantech were to, let's say, buy power for the green ammonia or for data or for any other sources through SECI or through any other agencies. We are not factoring in that in this 15 GW. Gigawatt. Okay. Fair enough. Second is, of course, what we all expect is these spreads of BESS will go down over two years, three years. What matters is at what pace the new BESS comes into the system. Here we see you yourself are putting so big BESS numbers. What do we expect about then the BESS spreads? Should they narrow very quickly? Because let's say, I don't know what is the reason, but Q1 - Q2 itself it is down. That might be from a different reason. But two, three year hence, then how to think about this particular market from a spread perspective? If you look at Q1- Q2, and if you look at the prices we have signed up for this year and next year, they have substantially gone up. In terms of the delivery, those contracts were already signed. In Q1, we actually don't wait. We want to reduce risk. What we do is we sign for, let's say, next two quarters. These projects, these bids are also for next six months. They are not for, let's say, 15 months onwards. It is 6 -1 2 months maximum. The Q2 contracts were already signed. The tariffs have not moved from Q1 - Q2. They were already contracted. We can tell you our tariff for Q3 also. They are already contracting. In terms of the new bids we have won for, let's say, Q4 or Q1 of next year, they are substantially higher. The tariffs are substantially higher than you can say. What we have realized. What we have realized so far. It is dependent on how the states are feeling about their power demand in near term, because these are near-term bids. Structurally, let me tell you, there is a big shift happening from RTC procurement, which is the thermal procurement or a gas procurement, to BESS procurement. Like we said in our previous conference call also, this is a new form of power. BESS is a new form of power which has developed trust with now maybe 10 - 12 governments, which maybe our peers and us have supplied to. People are more and more confident about shifting their near-term power mix from RTC to batteries. You will see that a lot of new demand is being created. In terms of the tariffs, of course, the RTC at INR 7 or INR 6 is much more expensive than BESS at INR 10, because you are buying unnecessary volume of power, which you don't need to during the day when you contract out this RTC. That volume is huge. Basically, the 85% of the near-term power is RTC, which is waiting to be disrupted. Perfect. I think, yeah, this is quite helpful. Yeah. Thank you. All the best. Thank you. Next question is from the line of Shaunak Godbole from SBI Life Insurance. Please go ahead. Hello. Thank you for the opportunity. I wanted to understand what is the capacity addition target for FY 2028 in megawatt terms, 2027 and 2028? Shaunak, in FY 2028, in terms of the GNA availability, we are looking at upwards of 3 GW. Around 2.5 GW - 3 GW is what we are looking at in FY 2028. Because, Shaunak, we are seeing all of our substations coming alive during that particular year, and it is aggregating around that. You will see from June to December, bulk of our substations are coming alive. If you look at most of the substations day to day, that is where they are. And of course, they are with some delays, so we are very confident that there will not be further delay because the elements are ready, and the work is happening at a very good pace. That is where we are. Okay. What about 2027? Because I guess initially it was 0.5, but when I was looking at the PPT last quarter, around, I suppose, 700 MW was only the capacity which was basically the substations were ready for the GNA timelines as per the PPT. It was around 700 MW. What is the status of that? Because if you see in this quarter, we have not commissioned any project and H1 capacity addition is around. There is no capacity addition this H1, right? If I compare with the two quarters. Yeah. Shaunak, when we look at the capacity addition, we look at the elements we have charged for each of these projects. We have laid out in our presentation and we have partially commissioned around 1.9 GW of capacity so far out of the total under-construction portfolio we have. In that 1.9 GW, we have partially commissioned solar at two places and battery at around four places. Okay. And all of these projects are under those, excluding one project which is ACME Solar. All of these are under PPAs. And they are generating revenues. So in terms of, if you are, I think, mentioning about the generating source, which is the solar. If you are tracking only that or in terms of the contracted capacity, we have operationalized 133 MW of grid-facing solar. Of course, that is what we have done in this quarter. And of course, in terms of the commissioning targeted for FY 2027, it is depending on the Fatehgarh 2 operationalization, we could do 1.5 GW still. But of course, it could move to a quarter by June or something, but 1.5 GW is what we are targeting for FY 2027. Okay. So on the financials, I had a query. If you see your interest cost has been flat for the past two - three quarters. So basically, what is the reason for that? Because we have commissioned battery, so ideally depreciation is increasing, so basically general cost also should increase, right? Right. So there are a couple of reasons for that. One is that we have done a QIP raise of around INR 2,800 crore. So that has of course resulted in us paying down some of the debt, which has resulted in saving that interest cost. That is one of the key reasons. And the second thing is, some of these cash flows we are generating from BESS. That is also saving on the debt draw down from our side, that we are able to use it as equity and we do not increase. That is increasing the internal accruals available to either pay down debt, because we are paying down debt from these internal accruals also, and not incurring the interest cost. And we are drawing down less debt because these accruals are to be used for CapEx or for debt reduction. And in some cases, lenders have allowed it for using it as equity also. So that is resulting in us keeping flat. The third thing is, we have refinanced a higher interest rate bond. Right now we do not have any dollar exposure in the overall book. It is 100% rupee. And that has resulted in a substantial interest saving in this quarter. Yes. For us, which will continue to be there going forward. These are the three, four reasons we have. Okay. Sir, just one question. Even when looking at the other expenses. For the past two - three quarters, it was a bit higher. This quarter it is, as compared to the last quarter, it is around INR 45 crore. Is there any specific trend I have to look at it, or how to look at it? Arun, what does these other expenses include? Other expenses basically include one-time expenses, which we generally incur. In the last quarter, the other expenses were higher because there was a one-time expense of the authorized capital companies, and probably in almost seven to eight companies, it was almost INR 20 crore. This was on the higher side in the last quarter. But generally it remains static if you see on a quarter-to-quarter basis. This ROC bit, I will just explain. It is basically when you put equity in a company, you have to pay a fixed ROC fees for issuing share capital. That is very lumpy, and it only comes when you start doing a project. Yes. That keeps it kind of lumpy. I think maybe we can have a line item showing this, or in schedules we can show this as a one-time expense. That will help you to predict it on a quarter-on-quarter basis if you want. Can we just repeat what was that one-time expense? I do not know. ROC, Registrar of Companies, when you put share capital into a company. When you raise your authorized capital, you have to pay an ROC fees. How much is that ROC fees typically when you start a project? It goes from limited at INR 2.5 crores. Around INR 2.5 crore per SPV, you need to pay that. That increases whenever you start putting equity in a company, you need to pay this INR 2.5 crores. Per SPV. Per SPV. That keeps it slightly unpredictable to that extent. Okay. Thank you very much. Thank you. Next question is from the line of Apoorva Bahadur from IIFL Capital. Please go ahead. Hi, sir. Thank you for the opportunity. Couple of questions. One is on the partial commissioning of projects that we have done. Would be helpful if you can explain, do we capitalize these assets and start charging all the expenses to P&L, or they are still capitalized on balance sheet? Apoorva, wherever we are selling power, we have expensing out, because we have capitalized and the rest is wherever we are not selling power, it is not yet capitalized. The solar which is used to charge your battery, would that be capitalized or it is only the battery? That is capitalized completely. Yeah. See, we are selling power means we can sell to the grid, or we can sell to our own BESS. In both cases, the sale is being made from that SPV. Wherever the sale is being made, we have capitalized. Right? And I think wherever we have said partially commissioned, they are capitalized. Understood. So our gross block already includes them. It is no longer in the CWIP. Yes, exactly. Understood. Secondly, on these new PPAs which we are signing, I believe that they will be under the ambit of ALMM 2 now. So how are you seeing the pricing for DCR ALMM 2 compliant modules? What is your view? When would you tie up for these? Would it be this year or next year? Right, Apoorva. We have plans of buying modules for these projects from, you can say, June onwards of next year. Because these are commission targets from December onwards, December to March of 2028. Those are the timelines for commissioning these projects. So, we have done some initial negotiations and discussions because we do not intend to buy immediately. But of course, we have, whatever briefings we have done, we are getting prices of lower than 17 as of now. But it is very dependent on the various factors. So we are substantially within the prices we had assumed in terms of bids for that. So that is not a risk we see. Of course, given the Chinese regulations which have come into force in terms of the recent Chinese regulations. If it impacts the cell capacity in India, then we will have to see, but it doesn't look like there is already substantial cell capacity which has come up or which is ALMM-registered and which is already there. We don't see these prices increasing because of shortage of suppliers. We think that because of that, the prices will not increase. Okay. Connectivity for all these projects, we had to declare them before bidding or is it like we will still have to wait for CTU to commission those substations and only then there could be a deferral in further setting up these capacities? No, actually. See, most of these projects are peak power projects. These ALMM, if you are only talking about ALMM 2 or you're talking about all projects. No, the recent ones. The ones which we have, say, signed PPA this quarter. Yeah. Most of these projects are peak power projects. We are already installing where GNA is almost operational. There is no GNA risk because these peak power projects are actually very immune to GNA delay because we typically install them at projects where GNA is live. In a lot of our books, there is no GNA dependency delay because they are operational. Most of the peak power projects we are doing, the GNA is operational. There is no risk to these timelines, other than maybe you can say an RTC project or a REMC, wherever you need to install a grid-facing solar project. There you are more dependent on the GNA getting delayed. But in peak power projects like the ones where the battery is supplying power to the grid. From our side, we allot such that there is no delay possible in those projects because of GNA. Okay. Just last question on these peak power projects. I think one of the recent projects, we have signed at a tariff about INR 6, where we have to supply during peak hours, and we also have to arrange for the charging part. How does the math work at INR 6? Because I think the battery cost at $100 itself would be closer to INR 4.5, right? 12% IRR. On top of that, the cost of charging. So what type of equity IRR are we seeing over there at INR 6 tariff? Right, Apoorva. In terms of that project and the resultant economics of it. There are a couple of things in terms of the early commissioning, right? Because as I mentioned, we have allotted these projects to an operational GNA. For us, the solar takes time to come up, right? Because of ROW issues, because of the land acquisition issues. But battery comes up for us fairly early, and as you see, we have preponed a lot of these battery commissioning. In terms of the battery commissioning, the battery will come up earlier for these projects. And of course, since the PPA is signed, the debt is available as well. So there is early commissioning revenue, which you realize out of this project, because specifically it is available to sell power today. So that's the key difference between our earlier projects and this project. Of course, it is dependent on the competition, right? Nobody likes to reduce their returns. We make a high return on this. Even if we factor in, you can say, 6 - 12 months of operations of short-term power. But we will, of course, have around 24 months, so maybe we will do higher than that. Fair enough. Thanks a lot, Nikhil. All the best. Thank you. Thank you. The next question is from the line of Dhruv Muchhal from HDFC Asset Management. Please go ahead. Yeah. Thank you so much. You made a comment that 85% of near term is RTC and is waiting to be disrupted. I didn't get that point. If you can please expand on that. Yeah, Dhruv. Basically, in terms of the DEEP portal, there is a DEEP portal, as you must be aware, where DISCOMs procure short-term to medium-term power. The volumes in that DEEP portal, 85% of them are through thermal RTC kind of tenders, and only 15% are through, you can say, gas or other sources. That is where we were saying that this 85%, because there was no availability of other sources. That was the trend. Got it. Yeah. Because people are buying, like we see a lot of states buying this RTC power when they only need peak power because there is no other source available. Like you saw Gujarat, right? Gujarat used to buy a large amount of RTC power. But this year you see Gujarat bought a large amount of peak power. That has reduced their RTC purchase volume of these short-term and medium-term power. That is what I was talking about. Perfect. I got it. The second thing is, in your presentation, you mentioned 50 GW of peak power bids rolled out till September 2027, and 20+ GW of upcoming tenders. This is a large quantum. In your assessment, is it backed by state demand or like previously, SECI and others used to just roll out tenders without any demand assessment. I mean, you might have done some work around this. Is it backed by state demand or how is it? Yes, Dhruv. Primarily, it's state demand only because SECI doesn't have demand of its own. Of course, we are working because now we are selling power to a lot of these states on short-term basis. We have a big understanding of what they need and in what time frame. What we have done is mapped out their demand in short-term, medium-term, and long-term. What we realize is, in a short to medium-term, there is very high demand for peak power. Right? There are a lot of five-year PPAs. People are trying to contract out some of these PPAs, expecting their thermal to come up or expecting their PSP to come up, or expecting these slowdown in the demand. Some of the states are rightfully looking at 20-year PPAs also, depending on each state. This varies from state to state, but everybody is short on peak power, and nobody wants to be dependent on the weather patterns to assess their demand and also depend on other capacities to come up. They are impacted because of GNA delay. As you must have noticed, a lot of these states are impacted because the plants are not coming up because of GNA delay in short term. They are very skeptical of the commissioning timelines, and that is why they are contracting out surplus power than maybe looking at their plan. They may be contracting out surplus than what they may need or may not need. That is where states like Chhattisgarh, Odisha, like Bihar— Telangana. Telangana. If you notice, a large amount of bids have come up from Telangana and now with Chhattisgarh, Andhra Pradesh. A lot of these states are coming up with their own bids. Of course, and in our SECI bid, states like West Bengal is buying and a lot of other states are buying because everybody's short on peak power. They don't have a firm tie-up for their peak power, right? In terms of solar, some states are surplus. You are right. That is the case. Nobody is now installing solar and sending it to the grid. Everybody is converting into peak power, and that is the intent with which the states are also buying power. All the states, if you notice, there is a recent SECI tender which has come up today only, which Ankit also spoke about. That is a 16 GW hour tender, 4 GW into 16 GW h tender, and it is coming up with a VGF, and it calls for a 12 months commissioning. That is purely looking at the power situation prevailing today. It caters to somebody who is ready to supply power because they want to promote the battery installations sooner than later. Because that is where the issue is in terms of procurement of power, and that is where the trend will go in terms of the procurement, and that is where we see the shortage. The pure solar, the conventional method of seeing that solar bids and all that is no longer true. Okay. That is why the megawatt hour is something like, are also there. In terms of RTC at 5.25 is again a very competitive bid which happened at SECI, which is currently being sold. That will also, once it becomes a mainstream and people are able to commission that plant. The issue with some of these bids is the plants have not got commissioned. Once these plants come online with the GNA going live, I think the belief in these PPAs will also go substantially up, and then you will see a lot of procurement happening from these kind of RTC also because it is very competitive, right, in terms of the price. It is much more competitive than a thermal or any other source. But in terms of the awareness, it is building up, and that is where you see Telangana kind of states which have come up with this RTC and peak power project bids. More and more states are picking this up. In terms of competitiveness, it stays. Competitiveness stays for all the three sources of renewable solar, wind, and battery. Of course, PSP also in certain context in terms of life of the project and the stability it provides. I think the fundamentals are strong. States are buying. A lot of demand has shifted to states. Now we understand that a lot of aggregation will happen at the central level for this peak power. SECI has already come up. Maybe some other agencies will also come up with a similar bid of a large quantum of battery procurement. Sure. And sir, one quick question. Your generation has grown by about 20% YoY. Your capacity is almost flattish. I see your PLF has improved. Just trying to understand, is it repowering which is driving such a massive increase in the generation, or is it the partial commissioned assets are also included in generation now? There are two reasons for it. One is like you rightly said, the capacity has increased, and also the repowering has increased. Then the third, the wind has come up online. As you see, it has done around 41% CUF in this quarter. Because wind was not there last year. 150 MW of wind is there, which is contributing significantly to the average CUF. Of course, I think that's the main reason. Then the weather pattern is- Mm-hmm. Is repowering a big element? Last year, sorry, our Sikar plant was not fully operational, which became operational on a YoY basis. That actually in the last year, it was contributing less. If you look at the next quarter after that, it will be much less steeper growth curve. Got it. Great, sir. Perfect. Thank you so much and all the best. Thank you. Thank you. Ladies and gentlemen, we will take that was last question. With that, we come to the end of today's conference. Sorry, I just like to correct one query. I think Puneet asked about the reduction we have shared in the newly signed PPA. There is around INR 33 reduction, out of which INR 11 is tentative change in law and INR 22 is voluntary. I think that's the broad reduction in the tariff for the NTPC PPA. Just for- Thank you very much. Everybody's reference I pointed out. I do not know whether Puneet is there or not, but I will just clarify it. Thank you. Thank you very much, Shiv. Ladies and gentlemen, on behalf of ACME Solar Holdings Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.