Emmvee Photovoltaic Power Ltd| Q4 & FY26 Earnings Conference Call

BULLISH SENTIMENT

⬤5th May 26

Summary : Emmvee Photovoltaic Power delivered strong FY26 results, driven by capacity expansion and integrated manufacturing, with ambitious future growth plans.

Management Perspective positive : FY26 was a strong year with 'phenomenal growth' and 'improved profitability.' Management expressed confidence in future plans and 'resilient' margins.

Concall Report Analysis & Insights

Business Overview

FY26 revenue reached INR 5,049 crores, a 116% year-on-year growth.
EBITDA grew 140% to INR 1,734 crores, with a 34% margin.
PAT increased 193% to INR 1,082 crores, achieving a 21% margin.
Order book expanded to 9.4 gigawatt, reflecting strong demand.
Module capacity increased to 10.3 GW, with cell capacity at 2.94 GW, fully TOPCon.

Future Growth Prospects

Building an integrated, technology-led solar manufacturing platform.
Planning a new 6 GW integrated cell and module manufacturing facility.
Total installed capacity to reach 16.3 GW modules and 8.9 GW cells by FY27.
Evaluating backward integration into ingot and wafer manufacturing, with first facility by FY29.
ALMM List 2 and 3 are expected to deepen domestic cell and wafer sourcing.

Management Insights

FY26 was a strong year, marking the transition to a publicly listed company.
Focus remains on module and cell manufacturing, backward integration, and operating efficiency.
Committed to transparency, consistency, and capital discipline as a listed entity.
Current 6 GW integrated capacity expansion is progressing as planned.
Margins for FY27 are expected to remain resilient and similar to FY26 levels.

Signs of Skepticism

Analyst questioned inventory build-up and its future impact on production.
Analyst noted Q4 revenue growth exceeded production growth, seeking clarification.
Analyst questioned the accuracy of DCR portal data for cell production.

Risk Factors

Global solar industry environment is becoming increasingly complex.
Increased competition and evolving technology are anticipated.
Trade rules may change, and commodity cycles could remain volatile.
Managing working capital, particularly inventory build-up, is a focus.

Good To Know

IPO in November 2025 raised INR 2,900 crores, strengthening the balance sheet.
IREDA sanctioned a term loan of INR 3,306 crores for the new facility.
Land for the Devanahalli facility has been acquired and is in possession.
Credit rating upgraded by ICRA from BBB- to A- in August 2025, then to A in January 2026.
Average order size from top 10 customers increased significantly to 221 MW.

Key Drivers

6 GW integrated facility commissioning.
Backward integration into ingot/wafer.
Strong order book execution.
Supportive government policies.

Key Analyst Discussions

Competitive Environment

Company is competitive for exports to non-Chinese markets.
DCR module pricing is INR 21-22/watt, non-DCR is INR 14-15/watt.
Pricing for new orders is expected to maintain a similar profile.

Market Trends & Consumer Behavior

Demand outlook is strong across IPP, C&I, PM Surya Ghar, and KUSUM segments.
ALMM List 2 is expected to benefit domestic cell sourcing.
Management views potential ALMM deadline push as not significantly impactful.

Financial Highlights

Management explained the working capital cycle and inventory build-up.
IPO proceeds were used to prepay term loans, reducing finance costs.
Capex spending was primarily on module lines and land acquisition.
Q4 revenue growth was attributed to sales realization and not solely production volume.

Product Composition

DCR module mix for FY26 was 30-35% of production.
Future DCR mix is expected to increase with new capacity.
Transition from M10 to G12R cells will be phased with minimal disruption.

Strategic Considerations

6 GW integrated facility module line commissioning by calendar year-end, cell line by financial year-end.
Plans for 9 GW ingot and wafer backward integration, with first facility by FY29.
Company has a resilient, non-Chinese linked supply chain for raw materials.
Module capacity is intentionally higher than cell capacity for optimal utilization.