EMMVEE Q2 FY27 Earnings Call: Record 1.5 GW Order Inflows, 6 GW Plant On Track

EMMVEE held its Q2 FY27 earnings call on October 14, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record H1 with Sharp PAT Expansion on Finance Cost Reduction

• H1 FY 2026-2027 revenue of Rs.3,132 Cr (+45% YoY) — EBITDA rose 47% YoY to Rs.1,105 Cr with margin held at ~35%; PAT grew 79% YoY to Rs.762 Cr.
• Q2 FY 2026-2027 PAT margin improved to 24% (vs 21% in Q2 FY 2025-2026), driven by finance cost falling to Rs.9.5 Cr from Rs.55.2 Cr.
• Operating cash flow up 239% YoY to Rs.410 Cr in H1 FY 2026-2027; net debt/equity stood at 0.12x as of Sep 30, 2026.
• Cell production of 513 MW at 89% utilization in Q2 FY 2026-2027; module production was 952 MW at 44% utilization.
• Total inventory of Rs.1,884 Cr as of Q2 FY 2026-2027, of which finished goods were Rs.860 Cr; the sharp rise in other current assets was attributed to advances for the new cell capex project.
• Revenue guidance maintained at Rs.2,200–Rs.2,400 Cr for FY 2026-2027 — management cited the H1 FY 2026-2027 projection of Rs.1,100 Cr as supporting the upper end.

Record 1.5 GW Quarterly Inflows; DCR Intensity Rising

• Order book of 10.4 GW as of Sep 30, 2026 — with ~1.5 GW of new orders added in Q2 FY 2026-2027, the highest ever in a single quarter; 5–5.5 GW expected to be delivered over the next 12–15 months (through FY 2027-2028).
• FY 2026-2027 order book split 70% DCR / 30% non-DCR — management declined to give a DCR split for Q2 FY 2026-2027 specifically but indicated it may share the breakdown later.
• DCR mix rose to 54% in Q2 FY 2026-2027 (vs 47% in Q1 FY 2026-2027); management guided the DCR component will remain higher in Q3 FY 2026-2027.
• Open access/C&I accounted for ~40–45% of order inflows in Q2 FY 2026-2027 — inquiries have risen consistently over the last 3 months as customers gear up for DCR, now effectively compulsory in open-access inquiries; the analyst cited the December 6 deadline, which management confirmed continues to drive inquiry and execution momentum.
• 25% of revenue comes from the retail market (Surya Ghar Yojana, Kusum scheme, small EPCs); in H1 FY 2026-2027, 25% of module sales were retail/Kusum and 75% institutional, with the institutional split roughly 40-30% or 45-35% between C&I and utility/IPP — splits apply to modules only, as cells are sold to other manufacturers.
• Largest customer concentration rose to 44% of revenue in Q2 FY 2026-2027 (from 19% in FY26); management dismissed credit risk, citing substantial down payments and LCs in payment terms.

6 GW Integrated Project on Track; Ingot-Wafer Plan Contingent on ALMM List 3

• Total capex for the 6 GW integrated cell + module plant guided at Rs.5,500 Cr (hard cost Rs.4,600 Cr) — management defended the cost against an industry benchmark of Rs.5–6 billion per GW cited by the analyst, noting integrated scope and inclusion of soft costs (IDC, contingency, working capital margin).
• Module commissioning expected by December 2026 (Q3 FY 2026-2027) and cell commissioning by March 2027 (Q4 FY 2026-2027); equipment shipping begins end of Oct/Nov 2026, with FAT underway and hookup/balance-of-plant construction progressing in parallel.
• Post-expansion installed capacity reaches ~16.3 GW modules and 8.9 GW cells — capacities deliberately matched to deliver broadly equivalent annual output, since module manufacturing has lower achievable utilization than cell manufacturing.
• Backward integration plan envisages a 9 GW ingot-and-wafer facility in two phases (5 GW and 4 GW) — timing to be guided by ALMM List 3 regulatory developments, market conditions, and long-term economics (period unspecified).
• Borrowings of ~Rs.828 Cr for the new expansion project are being capitalized — the CFO confirmed the finance cost impact from this debt will begin from Q1 FY 2027-2028.
• 25% capital subsidy received from the state government for the earlier project — management expects similar subsidies for the 6 GW project but explicitly stated these are not modeled in guidance or projections and are treated as upside.

Margin Defense via Technology Upgrades and Cost Levers

• ~Rs.2,400 Cr EBITDA guidance for FY27 reaffirmed — management cited a comfortable position based on H1 FY 2026-2027 results, and expects the current margin trajectory to sustain through FY 2026-2027 citing the existing order book.
• Silver usage cut from 220 mg per cell in FY 2025-2026 to 60-65 mg in Q2 FY 2026-2027 — a key contributor to margin resilience alongside operational efficiencies.
• G12R transition lifted cell wattage to 9.5 Wp from 8 Wp — management guided cell wattage will increase further in FY 2027-2028; >50% of capacity converted to G12R in FY 2026-2027, with full conversion planned after completing M10R orders.
• Creditor days reduced from 64 days in FY26 to 25 days in H1 FY27 — driven by vendor negotiations for better pricing and procurement optimization, supporting COGS.
• Other expenses decreased sequentially in Q2 FY 2026-2027 — due to operational efficiencies (100% renewable energy usage, automated guided vehicles) and forex gains; management guided similar expense levels until expansion begins.
• Gross margins moderated sequentially in Q2 FY 2026-2027 despite the higher DCR mix — management attributed this to pricing dynamics; non-DCR module margins remained broadly stable, supported by quality differentiation and customer concentration in utility/IPP segments.
• Management corrected a peer's Rs.17/W DCR module price quote (for future supply), stating current spot market prices are higher; while module prices may decline, management guided margins can be maintained through value addition and manufacturing efficiency.

ALMM2 Deferment Seen Unlikely; Structural Cell Capacity Gap Cited

• Management views deferment of ALMM2 implementation beyond December 2026 as extremely unlikely — citing government emphasis on ALMM3 for ingots/wafers; the 30% non-DCR order book, with many deliveries scheduled for FY 2027-2028, provides a transition buffer.
• Minimal impact expected from the ALMM extension to December 2026 on utility-scale DCR projects — contractual obligations remain; demand from Surya Ghar Yojana, KUSUM, and C&I is growing strongly, driving a strong Q3 FY 2026-2027 outlook.
• India's H1 calendar 2026 solar installations were the highest ever for a 6-month period — AC installations of 27 GW (~35 GW DC); management cited an industry trajectory of 64% YoY growth for full CY 2026, conditional on the H1 pace continuing.
• India's current cell manufacturing capacity is 40 GW, of which ~16 GW is outdated mono PERC technology — management estimates India requires 80-100 GW of effective capacity to meet projected demand (period unspecified).
• Non-tendered demand (C&I, rooftop) is adding over 1.5–2 GW monthly to industry demand in Q2 FY 2026-2027 — management also cited rising AC/DC ratios in hybrid, round-the-clock, and firm renewable projects as incremental module demand drivers.
• Emmvee's G12R TOPCon cells have been included in the ALMM list — management cited ALMM implementation for solar cells as supporting domestic value addition, with transitional provisions introduced.
• Management does not foresee an industry-wide transition to G12 wafers in the near future — citing lower installation and structure costs for G12R in the Indian and non-China markets.

Utilization Discipline and Execution Priorities for H2 FY27

• Cell utilization expected at ~90% for Q3-Q4 FY 2026-2027 — vs 89% achieved in Q2 FY 2026-2027, cited by management as evidence of operational expertise in Topcon cell manufacturing.
• Module utilization to remain in the 45-60% range (period unspecified) — capped deliberately to retain operational flexibility.
• 100% of current manufacturing capacity is Topcon with 0% Mono PERC — a configuration maintained for the last two years; management highlighted its track record as the first Topcon cell manufacturer in India as a key differentiator against new DCR/cell entrants.
• Merchant cell sales in Q2 FY27 were broadly in line with Q1 FY27 — with a marginal increase.
• H2 FY 2026-2027 priorities: executing the expansion, strengthening manufacturing capabilities, maintaining operating discipline, and deepening customer relationships — with cash generation also emphasized for the remainder of FY 2026-2027.
• The call concluded without any closing management commentary; the concluding segment contained no additional financial figures, guidance, or outlook.