Ladies and gentlemen, good day and welcome to Torrent Power Limited Q3 FY 2026 earnings conference call. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, Executive Director and CFO from Torrent Power Limited. Thank you, and over to you, sir. Thank you. Good evening to all of you, and thank you for joining the earnings call of Torrent Power for Q3 FY 2026. First, I will take you through the performance of the quarter, after which phone lines will be open for the Q&A session. We'll explain the performance of the company at PBT level first, then we'll take you through the tax expenses separately. Reported PBT for the quarter stood at INR 805 crore as compared to INR 30 crore, the corresponding quarter of last year, an increase of INR 175 crore that is up 28% on reported basis. PBT for the corresponding period of the last year included non-recurring income of INR 77 crore on account of sale of cable business. Adjusted for this one-off, PBT for the quarter stood at INR 805 crore as compared to INR 553 crore in the comparable quarter of last year, an increase of INR 252 crore that is 46% on an adjusted basis. Tax expenses were lower during the quarter as favorable regulatory orders received during the quarter are eligible for the tax exemption. Business-wise, factors contributing to the performance of the quarter are as follows. First, contribution from thermal generation business reported an increase of INR 163 crore mainly on account of three factors. First, receipt of favorable orders from the regulators. Second, lower contribution from sale of merchant power and LNG by INR 75 crore, and foreign currency fluctuation and other expenses resulting in the higher expenses to the extent of INR 35 crore. Second, contribution from the distribution business increased by INR 106 crore mainly on account of three factors. First, improvement in T&D losses at distribution franchisee units partially offset by the higher T&D losses in license distribution business. Second, additionally, contribution from license distribution business was supported by an increase in ROE and ROCE on account of capitalization of the assets, a higher rate of returns on equity as per new tariff regulations and other incentives. Third, receipt of favorable orders from the regulators by INR 41 crore. Fourth, contribution from renewable generation increased by INR 24 crore mainly on account of higher PLF from the existing wind power projects due to better wind resources coupled with the contribution made by the newly commissioned solar capacity of 285 MW. Fourth, other factors contributing to lower profitability were on account of two factors. First, increase in maintenance and expenses and depreciation partially offset by reduction in finance costs on the back of prepayment made in Q4 of FY 2025. This completes the explanation of the financial performance during the quarter. Moving on to the project subject. First, during the quarter, RE pipeline increased by 500 MW. For 1.6 GW thermal project, power supply agreement has been executed with MP Power Management Company Limited. Contract for balance plant of machinery has been awarded for the projects. With the progressive commissioning of 306 MW MSEDCL project, aggregate installed generation capacity of the company stood at 5 GW as on December 31st, 2025. Company got 2.7 GW gas-based project, close to 2 GW of renewable capacity, and 362 MW of coal-based capacity. Pipeline projects at the end of the quarter include 4 GW renewable capacities, 3.3 GW of pump storage capacities, 1.6 GW coal-based capacities, and two transmission projects at Khavda and Solapur. Further details of the pipeline projects have been summarized in our latest investor presentation available on the website. That's all for the conference quarter. Now, I request the coordinator to open the Q&A session. If you're able to stay safe and healthy, thank you. Handing over to the operators. Sir, can we proceed with the Q&A? Yes. Thank you. Thank you so much, sir. Ladies and gentlemen, we'll begin with the question- and- answer session. Anyone who wishes to ask a question, may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we request you to use handsets while asking a question. We'll wait for a moment while the question queue assembles. Our first question comes from the line of Sucrit Patil from Eyesight Fintrade Private Limited. Thank you. Please proceed. Good evening to the team. I have two questions. My first question to Mr. Saurabh is, Torrent Power has expanded across generation, distribution, and renewables. Growth often brings some pressure on cost and cash flow. Going forward, how will you balance investing in new renewable projects with keeping debt and margins under control? What clear signals will tell you it's time to slow expansion and focus more on the financial discipline? I want to understand your point of view on this. Thank you. Yeah. In terms of financial discipline, if you look at our leverage ratio, we are quite comfortable. For example, our net debt-to-equity ratio is 0.40 as of March 2025, and net debt-to-EBITDA is 1.41. The company is an under-leveraged company right now. With this investment, our leverage ratio will remain comfortable, I would say, in terms of our current investment plan. We are maintaining financial discipline and improving our return on equity and ROCE going forward once we implement all these projects in the pipeline, I think. Thank you. My second question to Mr. Saurabh is, again, along the similar lines, just want to understand the plan of action, basically, in this. Fuel costs and regulatory changes can have some impact on the profits, I believe. What financial disciplines do you use to protect the returns? For example, do you have a minimum margin requirement, a debt ratio that you won't cross, or cash cycle targets in mind? How do these rules shape your investment and decision-making process? I want to understand that. Thank you. Generally, the new projects are being financed at 70/30 or maybe 75/25 net equity ratio. That is what typically we do the financing. In terms of if you look at the, if you look at the sectors per se, there are lots of investment opportunities throwing up because of throwing up by the sectors. Yes, we do have an investment plan, but we are mindful of our financial metrics, I would say, in terms of net equity ratio and net debt-to-EBITDA ratios, which is very comfortable. If you look at the peers also, it's going aggressively. So definitely, our ratio, we will be lower than the peers, and we'll be comfortable with those kinds of leverage ratios. Thank you, and best wishes. Thank you so much. Thank you. Our next question comes from the line of Sumit Kishore from Axis Capital. Please go ahead. Good evening. Thanks for the opportunity. First, I think it's been a fairly strong P&L performance in the quarter. I just want to understand a few numbers here. You mentioned that there is increased contribution from gas-based power plants because of some regulatory benefit as well as a higher merchant and LNG sale contribution during the quarter. What is the size of the regulatory benefit? And we hadn't seen much merchant generation in Q3 based on the PLF numbers. So is that INR 75 crore number that you mentioned mainly coming from LNG gains? That's the first question. So the contribution from the merchant and LNG is lower in this quarter. It's not higher, I would say. That is what we would like to clarify. So it's lower, basically, by INR 75 crore as compared with the comparable quarter of last year. We got some favorable orders from the regulator, which has, I would say, added the bottom line of the company by close to about INR 270 crore. Okay. That basically explains the extent of the positive surprise. INR 270 crore, right? What was the regulatory item about? It is one of the generation projects. Which one? SUGEN, you know SUGEN? I mean, you know SUGEN? It's a gas-based generation project we got. Which gas-based generation project? SUGEN or you know SUGEN? You know, SUGEN project. Why did this regulatory benefit crop up? What is the background? This is explaining the entire profit beat in the quarter. We'll explain it. Okay, Saurabh. The second question is related to CapEx. So basically, in renewable, so far this financial year, in nine months' period, what is the CapEx that you have incurred, and what is your CWIP in renewable as of December end? And has there been any pickup in pace of CapEx in renewable in third quarter? Yeah, there has been pickup in the CapEx also in the third quarter because we have to implement many projects together. There has been pickup in the CapEx in the last one or two quarters. The pace will continue going forward also because we have a pipeline of renewable projects, and there is a renewable project, pump storage project, and coal project that is going to be implemented. There is a pickup in CapEx also. So Sumit, just to add, Q3 renewable projects, we had incurred a CapEx of INR 1,750 crore. If I look at the YTD number, it was around 3,100 crore. So you can understand the increase in the renewable projects' CapEx. So 3,100 crore YTD, which means six months, we would be around 1,500 crore of CapEx. In this quarter itself, we have done 1,700 crore of CapEx. Excellent. That is what I was looking for. Yeah, perfect. There is a pickup in CapEx. Given the transmission constraints and everything else put together of the 4.3 GW RE pipeline under construction, what should be the phase-out in terms of commissioning, say, fourth quarter and next financial year and the year after that? I mean, if you can give us a broad sense, that will be useful. We can give you a sense of about for the next year, we expect to commission about 1.2 GW-1.5 GW next year. I think in a similar pace, we can expect in next year also, here and thereafter also. Okay. So this financial year, FY 2026, will be a fairly weak year in terms of renewable capacitation, relatively. Yeah. And just one more question. Power demand growth in the last 15 days has been quite bad. I mean, after 22nd of January, it's once again become flattish kind of power demand growth for almost 15+ days that we last checked. I mean, is that something you all have been noticing? Is there any specific reason? And is there any probability of Section 11 getting implemented as we enter into higher demand year this year as well? I mean, what is your sense? One can say there's an exception kind of a thing, a variation kind of a thing, I would say, because if GDP has to grow at 6.5%-7%, power demand has to grow in a similar line. Otherwise, GDP won't be growing at that particular rate. The two things, basically, one is the last year, the demand was very, very strong. The base was very strong last year. The second is the extent of the monsoon in the current year has impacted the power demand. This cannot be the scenario every year, I can say. It has to grow in line with the GDP growth, I would say. That is what we can say. One should ignore the current year. One should treat it as an aberration kind of a thing. One should not look at the current demand scenario, I would say. Well, completely. Again, it started happening last 15 days. Power demand growth is not there. I hope this does not continue. Thank you so much, and wish you all the best. Thank you. Thank you. Our next question comes from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. Just first, wanted to understand Discom performance a little bit. First, on the sale of shares within Discom, so overall, we understand power demand will be a little bit higher in the quarter. When I look at Ahmedabad, Surat, and all, most regions you're witnessing decline. Is that what is, in your view, driving that decline? Is it behind the meter? Is it something else that's driving this decline? Why? Why? And then maybe can you talk a little bit more about the ROE increase that you've seen historically? If I'm not mistaken, it was 14%. You're saying that this year, there is an increase in ROE for Discom. That, in addition to some one-off of INR 41 crore, has driven this almost 20% increase in EBITDA in Discom despite a decrease in the purchase of units. Can you explain this with Discom performance? In terms of demand, yes, definitely, demand is lower this quarter. But as I explained earlier in the call, that it's an aberration kind of a thing because of the extended monsoon. Last year, base was very high. So both the combined impact, one can see in the demand. But this is treated as an aberration because GDP and the power demand has to go in hand-in-hand with the means line with the GDP. So it has to be there. Demand will definitely come, and at least 5%-6% demand one can see next year. In terms of. So just I was trying to understand the Torrent in Ahmedabad and Surat. So we understand the power demand has been muted, but Gujarat has still reported positive YoY demand growth in third quarter. So what is driving this decline in specific pockets? Is it more residential rooftop or something? Just trying to understand YoY decline, suddenly, of yours. Satyadeep, if you really look at it, dissect it, Ahmedabad is more of residential, less of commercial. Because of extended monsoons and winters also pretty good, typically, this quarter, demand goes down. And this year particularly, because of good winters, demand in Ahmedabad has gone down. If you look at Surat, Surat is more of an industrial area. But again, that has been impacted because of the diamond industry not being in shape. The textiles also not going good because of which Surat also has been impacted. If you look at DNH, it has shown some growth. But again, because of the industrial activity, it has not shown the growth which it's used to report, around 3%-4%. So I think there are mixed factors involved. In each area, you'll have to look at how the mix is there between industrial, commercial, and residential. Okay. In terms of increase, regulated return, one-off, can you maybe talk? So just going back to your earlier question, you said that demand has gone down, but your ROEs have increased. So first of all, I just want to clarify that our profitability is not actually dependent on the unit growth for license distribution businesses. It is more dependent on the capitalization which we do as we get ROEs. So there is no correlation between the demand and our returns, profitability, I would say. And second thing, regarding carrying cost order, if you look at our regulatory asset, yes, on regulatory asset, we do earn some carrying cost, but we account for the carrying cost when it is approved by the regulators. So this kind of order, we keep on coming, I would say. That is what we can say right now. Hello? Hello? Hello. Sir, participant has left the queue. Our next question comes from the line of Dhruv Muchhal from HDFC AMC. Please go ahead. Yes, sir. Thank you so much. Sir, most of my questions were asked by Sumit and Satya, but just probably some follow-ups. Sir, in the opening remarks, you mentioned distribution profitability is also improved because of higher capitalization and higher ROE. So is there some change in ROE rates in any of these circles? Yeah. It's 14% to 15.5%. Okay. In Gujarat, it has moved from 14% to 15.5%. Yeah. ROCE, basically. 14% to 15.5%. Okay. And this will be applicable for the next tariff period or three to five years, or is it only for a single? MYT regulation, yes, for MYT. MYT regulation. Okay. Perfect. Got it. Sir, does it also apply to your thermal asset, AMGEN, or only for distribution? No. It's only for distribution. Okay. Sir, second is on the renewable. Dhruv, just to correct, it would also apply for AMGEN because it's part of distribution. Distribution, yeah. It's part of distribution. Okay. Perfect. And the next question is on the renewable execution. Now, you have a decent pipeline of wind assets and hybrid assets to be executed based on your PPT to be executed in FY 2027. So you have, I think, SECI- 15, then TPDL project, and IMCL project. So we are hearing a lot of challenges in the sector because both a mix of transmission issues and a mix of wind execution issues. And your near-term visibility is primarily driven by wind and hybrids. So if you can help us a bit more in terms of probably, I don't know, the proportion of land that you have acquired, the quantum of transmission which is available with you already, which gives you visibility that this 1.2 GW-1.5 GW can actually happen. In terms of land, we are reasonably okay. Land is not the issue. Only thing, maybe the ROW issue everybody is facing, we may face, but we have to handle those issues, and we have to implement our execution plan. Okay. So because it's a mix of wind and transmission, it seems the challenge is even higher than solar and transmission. So I just wanted to understand the comfort on the commissioning targets. We are comfortable, I would say, in terms of implementing the 1.2 GW-1.5 GW project next year at this moment. Okay. So probably the equipment would get available, the wind equipment. But on transmission, do you have the transmission access already, or it's in the applied stage, and it is pending commissioning? Connectivity is all available for most of the projects, I would say. Okay. The physical substation probably is already commissioned. That is to be so I think, Dhruv, there are two parts to it. One is that you have the connectivity, which is yet to be commissioned. So some of our projects will have connectivity to those substations which are already commissioned. Some of our projects are having connectivity where augmentation or a new substation is getting commissioned. So it will be a mix of both. Okay. But based on your assessment, individual substation-wise and project-wise, you are reasonably certain of 1.2 GW-1.5GW. Yeah. Yes, yes. Okay. Sir, generally, we have seen, I mean, generally, in the industry, the bidding activity is low. Now, if you commission 1.2 this year, 1.2 next year, you are already done through your contracted pipeline, including the C&I projects, of course. You're already done through and even the merchant capacity. So how do we see how are you looking at the visibility beyond that, given it's a—I mean, we consider this a platform business. So how about visibility beyond, say, next two years? We are bidding for most of the projects, I would say, but we restrict ourselves to our threshold IRR. If you look at the last Q3, we added about 500 MW additional linked chemical capacities. We keep on bidding, and we keep on aiming for the higher capacities also going forward. Sir, I was wondering, can you probably get more aggressive in the C&I project side until the utility bidding happens, or that's a limited market and probably limited? So we are already aggressive. So effectively, we are there in all the bids or majority of the C&I consumers. It's all about the commercial aspect of it. If commercials are feasible, we will definitely want to lock in capacity. As we have stated earlier also, I think our aspiration is to reach 10 GW of renewable capacities, which we look at it. If commercials are favorable, we will definitely want to lock in those. I mean, past also, we have seen that 1.5 years, the capacities were not growing. Suddenly, in months, we had built up 3 GW of capacity. So those opportunities are available in the market. As and when available, we'll be able to catch that. Sure. Just one clarification, the 1.2, 1.4 is at the AC level, or is it the DC level? Is it megawatt peak or megawatt? DC level. This is at DC level. Okay. Perfect. Got it, sir. Thank you so much. Thanks, and all the best. Thanks. Thank you. Our next question comes from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Sorry, I got disconnected. One question on the PSP. In the presentation, you mentioned October 28 as the SEOD. Just wanted to understand. It looks aggressive given it's 2.5 years from now. How do you look at this timeline versus typically what we are hearing, what we're seeing and hearing in the industry from others, and where are you in terms of preparedness to get this executed in 2.5 years? See, we are preparing ourselves for the execution. Major contract, I would say, has been given for the PSP project. So maybe some delay may happen, but as of now, all contract, key contract has been given. October 28 is the deadline as per the agreement with MSEDCL, right? And there can be extension to this based so there can be. There can be extension. And what? There can be an extension. For how long? What does the agreement typically say about extension? Does it have to be because of some particular reasons or? Transmission capacity is not available in kind of a thing. Substation may not be ready. So those kind of a thing will get the extension. Okay. And on Discom, again, so ROE, you mentioned this. Also want to understand, there is a one-off that you talked about in Discom. So is that INR 41 crore at the pack level, and the INR 270 crore, I thought you mentioned, in generation is also at the pack level? Can you explain that? These are all PBT levels. INR 270 crore in generation, so UNOSUGEN is PBT, and this INR 41 crore in Discom is also PBT. Yes, yes. Just on this one or two RE projects where you're seeking SEOD extension, is that mainly because of lack of transmission for these projects? Everything is installed on ground. You're just waiting for transmission or something else? No, no. Sir Satyadeep. So if you are seeing that transmission project is getting delayed, if you put up everything on ground, effectively, you are incurring indirect cost, which nobody will reimburse you to. So you will always calibrate your implementation based on your expectation of transmission being commissioned. So for execution of all the project, it is in line with the transmission is coming, basically. It's the same thing with the transmission line. So these two projects where you're seeking extension, the SECI- 12 and the MSEDCL- 1, maybe how much delay are you looking at here? This is all transmission in which location is this? No, no. So I think project by project, there are different issues. If you look at MSEDCL, we have already commissioned part of it. It is only some part of it which is pending, which is not because of transmission. It is because of some other factors, okay? As far as SECI- 12 is concerned, it's because of transmission not being ready, the evacuation part of it not being ready. So every project will have its own nuances because of which there are certain pluses and minuses. Okay. But as of now, you must have some visibility on SECI- 12, or this you expect in FY 2027, correct? Yeah, yeah, yeah, absolutely. FY 2027, yes. Okay. Okay. Thank you so much. Thank you. Our next question comes from the line of Atul Tiwari from JPMorgan. Please go ahead. Yes, sir. Thanks a lot. Sir, first, I wanted to check whether in this quarter, you booked any income from the NVVN contract because I suppose there was some take-and-pay, and the contract was supposed to have finished by October. No, the contract was over by September Q2, so we have not booked any income in Q3. Okay. Okay. And sir, this INR 270 crore, to what period does it relate to? Does it relate to only this year or past few years, and what part of this will be recurring going ahead? Past year, basically. It is not recurring. It is one-time. Oh, okay. Okay. Thank you. Thank you. Our next question comes from the line of Ketan Jain from Avendus Spark. Please go ahead. Thank you. Thank you, sir. So just on this clarification on the previous question, is even the INR 41 crore favorable order in distribution also one-time, or is it recurring? See, if you look at, as I explained on my call earlier, we are carrying some regulatory assets, and that regulatory asset is carrying costs. So we keep on getting these kind of orders, favorable orders on carrying costs on a regular basis. That is what we can say right now. Pertaining to Ahmedabad and Surat? Ahmedabad, yes, but from Ahmedabad and Surat, yes. Okay. Sir, can you give us you gave the CapEx for RE. If you could provide us the total CapEx in terms of licensee, franchisee, and RE separately. You want for this quarter or the cumulative YTD basis? Cumulative nine months, sir. Cumulative nine months, about INR 1,100 crore for license and franchisee, basically, both put together. Then transmission about INR 240 crore. Coal projects is about INR 400 crore. PSP we incur about INR 300 crore. Renewables, as we explained, about INR 3,100 crore. That is what we've incurred, basically, CapEx in nine months. What did you say after transmission, sir? I couldn't get the number. Transmission, after transmission, thermal project, coal project, basically. 400? About INR 400 crore. 400 crore. Okay. Yeah. This is 4,200. Around 4,000. What's the target for FY 2026, sir? Sorry? What is the target CapEx for FY 2026? We don't give any target for the FY 2026. But we will have a similar run rate as in third quarter. Yeah. Run rate is, if you look at the Q3, run rate has increased. So similar pace will be there going forward also. Understood. Okay, sir. That's it. I'll get back to you. Thank you. Thank you. Our next question comes from the line of Bharani V from Avendus Spark. Please go ahead. Good evening. Am I audible? Yes. Yeah. So I just want to clarify one thing. The INR 270 crore, -INR 77 crore on the generation side, and the INR 41 crore on the distribution side, these are all PBT numbers, right? PBT numbers. Can you give a corresponding EBITDA number for these three, sir, for the third quarter? It is given in the segment analysis also where the EBITDA numbers are given. No. So the incremental INR 270 crore is PBT. So what would be the incremental specifically on this regulatory one-time impact on the EBITDA side? This is the EBITDA number only. EBITDA and PBT, there is no difference between these. Okay. The second question is, of course, someone also asked on the nature of this favorable regulatory order on UNOSUGEN. Is it possible to explain that? Hello? Mr. Bharani, please respond. Yeah. We've explained. No, I'm wondering. INR 41 crore of the carrying cost order, which keep on coming because we are carrying regulatory assets. Sir, my question is on the INR 270 crore of favorable regulatory income we booked due to UNOSUGEN. So just if you can explain what was this related to? We'll explain. We're explain. We're not able to explain at this moment, right now. Okay. My final question is on this INR 41 crore on the distribution side you mentioned. Somewhere, I think you also mentioned that the ROE has increased from 14% to 15.5%. Is that something that I heard right? No, that is ROE, basically. This carrying cost order is different. Okay. So ROE having increased from 14% to 15.5%. ROCE. It is now ROCE, basically, not ROE. That is neutral, right, because at the ROE level, it will be same because it's just a different way of compensating. But still, the net profitability at the ROE level will still be the same to clarify. So Bharani, basically, ROCE, I mean, 14% or 15.5%, there are certain milestones which a regulator has defined. If you are meeting those milestones, you can earn up to 15.5%. So there are different parameters which have been defined. So this is my question: earlier, we were getting compensated based on ROE, which was 14% regulated as given by. 14% has moved to 15.5%, but the methodology has changed from ROE to ROCE. But 15.5% also is ROE. But there are certain slabs. So if you achieve this much, you can get 25 basis points incremental. If you achieve this much, you can get 50 basis point incremental. So 14% or 15.5%, both are effectively ROE numbers, but a regulator has shifted from ROE to ROCE. Okay. Arisha, I will pick it up offline. No problem. Thank you so much. All the best. Thank you. Our next question comes from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead. Yes. Just actually, there is one clarification that I wanted. So let's say in an all-in basis, given this new MYT order, what's the increase in ROE that we are effectively seeing in Ahmedabad and Surat? Yeah, one second. So, Aniket, basically, what we are trying to say is that 14% is an ROE, 15.5% also is an ROE. The methodology has been changed from ROE to ROCE, first point. Second is, under the regulations, a regulator has defined a base ROE or ROCE on equity. Then there are certain milestones based on which your return on equity increases if you achieve those milestones. The highest one which you get is 15.5%. Are we trending at the highest one? I'm just trying to understand. Let's say the incremental delta in ROE, is it 150 itself for us, or is it somewhere in the middle? So we would aim at incremental delta of 150 basis points. Some years, you may not be able to achieve base if you are not achieving those milestones. So it could be slightly lower. Okay. The other question I had was just for Bhiwandi. I think the franchise agreement for Bhiwandi is valid till January 2027, which is about a year away. Just wanted to understand what's the discussions over there. How does one think about that franchise agreement going forward? We are under discussion right now with the MSEDCL for the extension. Okay. Okay. Fair. And just one last question. What would be the overall regulatory assets currently on Ahmedabad and Surat right now? Regulatory asset would be Ahmedabad. Surat will be about. Sir, just a second. So around INR 3,000 crore. 3,000 crore. Okay. Fair. Thank you. Thank you. Our next question comes from the line of Anuj Upadhyay from Investec. Please go ahead. Yeah. Hi. Thanks for the opportunity. Can you elaborate further on the LNG sale agreement which we have done with the JERA? And with this 0.27 MMTPA, how much of the fuels we have secured across our gas-based station, and for what period? JERA agreement is about 0.27 MMTPA, which is transferring to the four cargoes. We are starting from 2027 to 2037 for 10 years contract we have executed. Okay. So this is 0.27 cumulative, you are saying? Or per annum? Per annum. Per annum. Per annum. Per annum, which we are doing. Okay. And with this, how much of the total requirement? Hello? Requirement will be about 25%, kind of a thing. Okay. Okay. On the pricing front, how exactly these contracts are placed? Are they fixed? Are they flexible? It's flexible. It's linked with the brand. Got it. Got it. And second, on the SMK side, any timeline by when we can achieve we are targeting to achieve a break-even over there or anything on the profitability? So basically, not exactly aware how the profitability are placed over there. It's been almost like four or five years we have taken over the circle. So how things are progressing over there in terms of profitability? In terms of AT&C losses, if you look at it, we have reached already about 20% kind of a level. We are near to the breakeven, I would say. So by next year, we can expect breakeven happening, sir, FY 2027? Yes, yes. Okay. And how much CapEx you would have spent till date on SMK? Currently, we have to get back to you. We have to get back to you. We have to pull out the numbers on a cumulative basis. Okay. Any update on the parallel licensing? There is no further update at this moment. Okay. That's it from my end. Thank you. Thank you. Our next question comes from the line of Dhruv Muchhal from HDFC AMC. Please go ahead. Yeah, sir. Sorry, I had missed the MYT regulation, actually. Just to clarify, I was reading the regulation. The change to the return on capital employed method is only applicable for capitalizations post April 2025. Is that understanding right? Yes, yes. It's basically a prospective change. For the older assets, you continue to earn the ROE as you were earning earlier. Of course, the rate has changed. But for the incremental assets capitalized, it moves to the ROCE model. Absolutely. Absolutely. You are absolutely right. Perfect, sir. That's the only clarification. Thank you, sir. Thank you. Our next question comes from the line of Arul Selvan from Bajaj Life Insurance Limited. Please go ahead. Hi. Hope I'm audible. Yes, you are, sir. Yes. This is a follow-up of the previous question that somebody asked. The question is with respect to the incremental milestones that have to be achieved to get that 150 points delta on the ROE. Could you just give us a sense of what is the nature of those milestones that have to be achieved before we can get that 150 basis point delta? Arul, these are all milestones are linked to operational efficiencies, like your AT&C losses, your SAIFI, your SAIDI, your other parameters linked to your operational parameters. Okay. Okay. Is there any timeline by which you have to achieve that, or is it like you get that? It's a yearly. It's a yearly. We have some yearly performance. Okay. Okay. Okay. Now, I was wondering if there's any normative level that we'll have to achieve every particular year before we're eligible for those incentives? Yeah, those normative levels are there. If we achieve those normative, we will get extra incentive. Okay. Okay. Secondly, one more question was with respect to, again, the Bhiwandi distribution franchise. Does the existing contract have any clauses for renewal, or is it going to be a fresh sort of a bid that the government has to invite for renewal of the current distribution franchise? So if you look at our investor PPT, we have already said that can be extended for five years upon mutual agreement. Mutual agreement. So it's a mutual discussion that's going on. But it can be extended for further period of five years. Okay. Okay. So hopefully, we should be hearing some news about that before February 2027. I'm just wondering if there's any deemed extension clause if there's no news on that at all? There is no automatic extension clause. We need to discuss with the MSEDCL. Okay. Okay. And lastly, with respect to your parallel licensing, I'm just trying to get a sense of how much could be the amount of capital that you could be investing if the parallel licensing applications are allowed. Any rough sense in terms of? I think it's too early to comment on that. Unless it is awarded, I think we should first get the first thing cleared, and then we can discuss on that. It depends on the area also, how large is the area? How small is the area? It all depends on the approval we are going to get on a particular area. Okay. Okay. Yes. Thank you. Thank you. Our next question comes from the line of Bharani V from Avendus Spark. Please go ahead. Yeah. Thanks for the follow-up. Are there any short-term gas tenders in the market right now? We've heard something coming up from Tamil Nadu. Can you please elaborate if there is any such short-term tenders? I think very recently, SECI- 19 tenders was closed. No, no. So I think Bharani will not be able to comment on that, I mean, for the future part. Okay. No, I'm just asking, is there any gas tenders, like the NVVN kind of tender that? No, not like NVVN tender as of now. But see, as the summer comes in, typically, discoms keep on doing short-term contracts for procuring power for their requirements. So that is a normal phenomenon which happens. Sure. And there is a possibility that something like NVVN tender comes up for this year too, right? I think we're not able to comment at this point of time. Okay. Sure. Thank you so much. Thank you. Ladies and gentlemen, as there are no further questions, I would like to hand the conference over to Mr. Saurabh Mashruwala for the closing comments. Thank you, and over to you, sir. Yeah. Thank you for joining Torrent Power's earning call. We wish everybody to stay safe and healthy. Thank you so much. Thank you, sir. Ladies and gentlemen, thank you so much. Ladies and gentlemen, on behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.