Thank you. Good evening, everyone, and thank you for joining Suzlon's quarter one FY27 earnings call.

FY27 has started strongly for Suzlon and the Indian wind industry. Even amid global geopolitical tensions in Middle East and resulting supply chain volatility, we have sustained strong execution, demonstrating the resilience of our business model and the strength of India's RE opportunity.

While Middle East tensions created near-term supply chain disruptions, they have also reinforced the strategic importance of energy security, further strengthening the long-term investment case for domestic RE, especially wind energy. India's economic growth, rapid electrification, AI-led data center expansion, industrial growth, EV adoption, and cooling demand continue to drive structural power demand growth.

The country's peak power demand has already crossed 270-plus gigawatts, reinforcing the need for large-scale RE capacity additions, especially during non-solar hours, which is peak demand. This momentum sets the stage for a multi-year growth cycle, with annual installations expected to cross 10 gigawatts in the near term and reaching 15 gigawatts by FY31.

With 57 gigawatts already installed and a strong pipeline with STU and PSU bids, as well as C&I demand particularly for wind, India is set to achieve the near-term target of 100 gigawatts by 2030. Repowering also started gaining traction, and there is rising customer interest, which gives visibility of several opportunities ramping up in next 2 to 3 years.

Now taking you through the business highlights, Suzlon delivered 506 megawatts in quarter one, making our highest-ever first quarter deliveries. This performance was achieved despite temporary supply chain and logistics disruptions arising from geopolitical tensions in West Asia.

These disruptions deferred approximately 10% to 20% of deliveries, which is expected to be recovered in coming quarters. Quarter one FY27 Suzlon installations grew 2.3x from 117 to 269 megawatt COD.

With more than 1,257 megawatts of erected but waiting for commissioning turbines, this paves the way for uptick in the CODs going forward. Order book is a healthy 6.1 gigawatts, reaffirming our market leadership.

In first 4 months of FY27, we have already secured 1 gigawatt of orders and continue to have a strong pipeline. Order book is not a constrained with devco model in place, with 60% new orders from devco.

Hopefully, this will keep the momentum going in the coming quarters. Market pricing remains healthy and rational.

ASP increased from ₹5.6 crore per megawatt in quarter one FY26 to ₹6.3 crore per megawatt in quarter one FY27, aided by project mix. The successful launch and maiden order for S175 in India, alongside the Blue Sky platform, marks Suzlon's return to advanced global markets.

With S175 and S163, Suzlon is expanding its technology portfolio with high-capacity turbines, and we are pleased to report and deliver superior yields, better reliability, and lower LCOE, unlocking opportunities across repowering and new build projects worldwide. 4.5 gigawatt manufacturing capacity fully operational, expanding footprint with three AI-enabled smart factories to drive efficiency and scale.

On Suzlon 2.0, it is translating into tangible growth opportunities across multiple adjacencies. On the RETech side, we have successfully launched S175 5-megawatt turbine and secured the first customer order.

On the devco, strong market acceptance reflected in 600-plus megawatt of orders booked within the 4 months, which translates to 60% of the business coming from devco-led engine. Exports expanding global footprint with a growing opportunity pipeline spanning key international markets, with opportunities under evaluation in Europe, Australia, Latin America, and Southeast Asia.

On the BESS, advanced storage ambitions through strategic technology partnership discussions are ongoing. On the solar side, we have identified 20-plus gigawatt serviceable solar asset base leveraging Suzlon's extensive field presence and infrastructure within 25-kilometer radius of Suzlon's service locations.

Our REAMS portfolio remains strong with 16.1-plus installed base in India and machine availability crossing consistently above 95%. Renom's AUM is consistently growing on the back of steady fleet additions across multi-brand and a healthy pipeline.

Foundry and forging continues to scale strongly. Revenues at ₹126 crore and EBITDA at ₹22 crore, with continued momentum driven by domestic demand and export growth.

Now I invite Rahul Jain, our Group CFO, to take you through our financial performance.

Thank you, Ajay. Good afternoon, ladies and gentlemen.

I would be using slides 20 to 27 of our investor presentation, which has been uploaded to our website, as the reference point for my discussion during this presentation. In Q1 FY27, Suzlon delivered 506 megawatt, marking our highest-ever first quarter deliveries in India.

Suzlon reported consolidated revenue of ₹3,819 crore in Q1 FY27, a 23% year-on-year growth, with EBITDA at ₹595 crore and PBT at ₹390 crore. Also, a PAT of ₹305 crore was reported during Q1 FY27.

EBITDA and PAT did get impacted on account of some of the factors. Certain deliveries impacted on account of temporary supply chain and logistic disruptions arising from geopolitical tensions in the Middle East, which impacted fuel availability and movement of critical equipment, including cranes, trailers, and transport vehicles required for WTG execution.

Higher fixed cost reflects investments we did to support scale, including the Puducherry facility, new blade plants, leadership strengthening, and Suzlon 2.0 initiatives. Q1 FY27 is impacted due to the above factors, and in the long term, we continue to grow in line with our ambitions set up for Suzlon 2.0 at 25% CAGR for the next 5 years.

We are pleased to report on our balance sheet as of June '26 reflects a position of exceptional strength, with strong consolidated net worth of ₹9,869 crore. Our net cash position of ₹2,322 crore further enhances our financial flexibility and resilience.

Adequate working capital limits have been tied up for execution of the current order book. Our integrated business model, backed by robust supply chain, strong execution capabilities, and industry-leading service network, continues to differentiate Suzlon and create a sustainable competitive advantage.

With that, I would now like to hand over the call to the operator and open the floor for questions. Thank you.

Good evening, sir. Thank you so much for the opportunities.

Sir, in Q1, the deliveries are around 506 megawatt, but the commission is only 269 megawatt. I think it's implies the gap of nearly 237 megawatt in Q1 alone.

What is the typical revenue recognition lag between delivery or erection and commissioning? In total, I think 975 megawatt erectory inventory is expected to convert, I think when we can expect, whether it's in Q2 or Q3, to get some clarity on that side?

Okay. Let me try and answer that question, please.

Q1, what we saw as deliveries was 506 megawatt. Our total COD in Q1 was about 269 megawatt.

When we look at it from an overall perspective, the position that we have on RR versus commissioning, there is a certain gap and that will continue to remain. We have to also look at the fact that we have 1,257 megawatt of erected machines.

Now, as the erection completions happen, when the COD positions will likely improve going forward as well. I think it is not the gap to be looked at, but also the RFC stock and the stock of machines that have been installed ready for commissioning as well.

I think that is the position to be looked at. From a Q3 and Q4 perspective, if you look at it, the seasonality of the business is such that, and historically also we've seen, that there is a seasonal trend that plays out.

Historically, what we've seen is let's say about 35%-40% in the H1 versus 60%-65% in H2. I think that trend still remains.

Hopefully, that answers your question, sir.

Got it, sir. As for my second questions, I think we are making strategic investments in S175 platform and new blade factories and the Blue Sky European relaunch.

What is the expected payback period for these investments? When we can expect meaningful revenue contributions, whether it's in FY28 or '29?

Very good question. Rahul already gave you an answer to your earlier one that we have 1,250 erected turbines, a large part of it is now ready for commissioning.

That should help us improve the COD and commissioning, part one. Part two, as we migrate to new 5-megawatt series for Indian market plus 6.3-megawatt S163 for international market, these are the investments being made.

Internationally, it takes anywhere between 18 months to 24 months to seed the market and start the first shipments. That's the answer for international.

For our domestic, we've already got the first order of S175, which will start deliveries end of this year and next year. Also, the other strategic investments we are making in new factories as part of our expansion.

I think all these investments span out over the next 12 to 18 months. We're very hopeful that it's a fairly short payback.

These are not long investments because as soon as the ramp-up happens on the volumes, this already starts paying back.

Sir. My last question, around 85% of order book is from PSU and C&I sectors.

I'm trying to understand whether it's a PSU-dominated order book, a structural drag on cash conversion, are the payment cycles are improving? What is the difference between receivable days for PSU contracts or C&I or IPP contracts?

I'm trying to understand whether— Yes, sir.

Basically, it's you would say 50-50 mix between PSU and C&I. When we take each order, it has its own uniqueness.

Wherever there are payable days more, there the pricing is adequately done in a manner that it accounts for the days. I think from that aspect, I think we are well covered.

Sir. The mix will continue or it will change in the coming years, sir?

It's an evolving market. Cannot predict that, but by and large, as part of the journey to RE, we need investments from everyone, including PSUs, who have taken larger targets.

At the same time, large corporates are repeat customers for us, you would have seen in our various announcements. We are happy to partner with both of them, and I think more or less the same trajectory will continue.

We have a sharp focus on our receivables management, and we are seeing improvement over there also.

Got it, sir. Thank you.

Good evening and thanks for the opportunity. My first question is, sir, what explains the weakness in EBIT margin during the quarter.

I'm talking especially about WTG. On a per megawatt basis, the EBIT has declined from ₹76 lakh per megawatt to ₹52 lakh per megawatt, while the average selling price has only gone up, right?

Can we expect it to correct going forward? How should we look at it?

Okay. When you look at EBITDA numbers, what we are seeing is roughly about a flattish EBITDA from ₹599 crore, which was Q1 FY26, to ₹595 crore in Q1 FY27.

The way to look at it is probably this. There are certain investments that we are making for our 2.0 Suzlon strategy.

There is a strengthening of that position starting to happen. Therefore, some of the expenses have to be upfronted, right?

Benefit of these expenses will come over a period of time. Therefore, you are looking at a flattish EBITDA.

That's one of the reasons. Second key reason is the fact that what Ajay also mentioned, given the geopolitical position, there were certain lower, let's say, operating leverage playing out this quarter.

As we go out in time and as our operating leverage becomes better, some of these positions should be better going forward as well. Also, the third element of this is when you look at it from a segment perspective, our WTG or the RE Solutions segment versus the REAMS segment, there are higher margins in the AMS segment overall.

As your mix changes, there will be some positive or negative depending upon what mix you are at. That is essentially the reason, Mohit.

Understood. My second question is of course the ALMM on the wind is expected by I think it already got implemented, right?

I think the C&I deadline is December '25, if I'm not wrong, right? December '26.

The utility has already been implemented from August '25, whatever bid happens post August '25. In your opinion, are you gaining market share post that, and have you seen the impact on the ground?

Second is do you see the ALMM expanding into components like yaw and pitch drives in the next few years? I believe that those drives they are not covered as of now, yeah.

Let me answer at a larger level. This ALM SOP brings level playing field for the Indian players.

Suzlon is fully compliant and well-positioned versus import-dependent competitors. SOP provides clear, staged requirements for listing and inspection plus a new import monitoring system, which is RE-IMIS.

I think this helps us. On the second part of your question, we can connect separately.

At this moment, maybe we can reach out to you separately and answer that question.

Understood. Thank you and all the best.

Thank you.

Thanks. Good evening.

Two questions. The first one is that the fixed cost in WTG business in Q1 seems to be at Q4 FY26 levels despite much lower volume.

You spoke about the advance investments that you're making for Suzlon 2.0 strategy. How should we think about the full-year WTG fixed cost here?

How much of the impact in Q1 was because of the temporary issues around fuel availability, pricing, movement of cranes? How should we think about the full-year fixed cost for WTG business for FY27?

Sumit, to answer your question, the way to look at it is that there are certain one-time costs that have been baked into the Q1 numbers. Like I said in an answer to a previous question as well, the overall position from a year perspective, there will be some one-time or let's say investments that we are making for our future positioning of be it for export, be it for the devco model, and others.

That's something that will come through over the year as well. Again, if you look at it, we have always said that our EBITDA margins between 17% to 18% last year was the position that we had taken.

My sense is that this year also, plus minus 1% to 2% from there, we should be able to maintain. It's strong positioning given as we go out and operating leverage plays out in H2, we will certainly see a better positive change to that.

Okay. Just the fixed expenses that you have in mind for cultivating exports and Suzlon 2.0, would you like to put a number to that for the full year so that we can track that?

Not really, Sumit. I don't want to put a number to it.

Let me just say that we are judicious at it. We have the ability to do some of these expenses because we are looking at growth as our key lever going forward.

There will be certain upfront costs. To be very frank about it, as the Group CFO, I'm not very worried.

Sure. Just a quick one on the 602-megawatt devco EPC contract.

What sort of advances have you booked for these contracts? Could you give us some sense of the execution timeline versus the non-devco order book and possibly whether this will be margin accretive?

Very good question. These are similar contracts as we have been doing in past, same commercial terms, except that here, we have readiness of available land banks and connectivity, working closely with the customer and the client, which helps in a faster implementation.

Other than that, all advances, everything is in the same nature as we have done in past, and they are value accretive.

Sure. Thank you.

Thank you for the opportunity. One question, first one, and a follow-up—

Prakhar, your voice is cracking. Could you just—

Am I audible?

Your voice is a bit muffled.

Just one second. Am I audible now?

Please.

Yeah. My first question is a follow-up on the previous one.

On the devco, you mentioned margins and terms on the similar levels what you have on the existing orders, but advances etc. on these orders because I assume the conversion cycle is 3-4 years.

Are these the projects where land has been acquired and the customer has given advance for these contracts? 602 megawatt devco?

The answer is current sales which is happening is already the advanced devco sites that we had, those are the ones we've offered, which are very baked. Whatever investments we already made in the land, in fact, they will get unlocked very soon as the advances start coming in and we increase the site progress.

The year three, four, five devco orders, which is also part of the Suzlon 2.0 strategy, those are yet to be announced, where we have a slightly different strategy. These are the ones which are more like the current orders, but they have been coming to the pipeline of our devco team.

As we have been working on it for a while. It's not that we started after announcement.

We're already working on it. These are the more baked ones and therefore, there is a very high demand also for these sites from our customers.

Sure. My second question is on again on margins.

The fixed cost that you mentioned that you are investing for— There's

other bells.

For the Suzlon 2.0 that you mentioned, what type of fixed cost, if you can mention maybe some of these?

Basically, we have to incur, for example, new plants we're setting up, we're making investment in technology for the new protos that we are working on international and domestic market, part of marketing and international markets to open up the market. These are all those investments which are inevitable as part of the growth strategy.

Sure. Just lastly, on repowering, you mentioned briefly in the opening remarks.

If you can highlight some movement in terms of repowering in India that is happening, and also maybe on the Investor Day you discussed about Europe repowering opportunity. Because this question is related to the conference that was held and the minister had asked Wind Council of India to prepare a report for all the repowering potential sites.

Maybe anything that you are seeing from there and the type of demand that you expect from that segment? That is all.

No,

very good question. In fact, at a high level, repowering has a potential of close to 25 gigawatts in the country.

What we have done is significant portion of India's installed wind fleet was commissioned 10 to 20 years ago using relatively small turbines with lower hub heights and lower energy yields. The modern turbines such as the latest generation platforms can generate substantially more energy from the same footprint, and therefore, that's where the whole answer lies.

These are also very good wind sites because these are the best which were taken in the beginning. For Suzlon, we are already started working on our S88 to 120 platform.

That investments we are already making. It is also part of our Suzlon 2.0 strategy.

I think in the next one or two quarters, I should be able to come out and tell you the pilots and the orders that we already cracked. The team is very confident that before we end this year, we would have already logged in confirmed order book from the repowering in India first.

Within international markets, Australia, very promising market. Europe, very promising market, a lot of demand.

The same product that we are launching here in India is what we launch also internationally. That permits and all the approvals looking at their local grid requirements are being currently done.

These are also the investments which are part of our Suzlon 2.0 strategy.

Sure. Thank you so much.

Good evening, everyone. Coming back to the fixed costs questions and the follow-ups again.

I understand that you will not be able to give me an absolute number with respect to how much of the costs have been upfronted in this quarter, but if you could just help us decipher what margin impact would have been ex of these costs for the quarter? It's just to assess how the entire year would pan out, frankly.

Same question you have asked a different way, Sweta. You're also laughing, I know.

It's about ₹40 to ₹50 crores is what would be the number across various subheads which I told you. I think as we ramp up volumes, this should start panning out and should not have such a major impact for the full year.

These entire ₹40 to ₹50 crores would be one-time for this quarter impact only?

See, it's a year-long journey, Sweta. It is not a one-quarter story.

Ajay is not saying that we have baked it everything in first quarter. It's a year-long journey from where we are coming, but not a big number, I would say.

The revenues, if I understood correctly the previous answers, we'll start actually witnessing something materially next year onwards from the Suzlon 2.0 versions?

Basically, what Rahul was saying, typically we've been operating at about 17%-18% margin. Our endeavor will be to remain in that realm.

We can give or take 0.5% up and down, and that's the way we will like to go. You have seen a strong delivery in the first quarter.

This is the highest ever in the June series for Suzlon since inception, 23% on revenue and 12% on RR. More importantly, 230% on commissioning.

On top of it, another 1,250 erected ready to be commissioned. I think these are good numbers.

I believe they are going to be all value accretive for the business going forward on top of investments for current and future years. I think which is going to pay us rich dividends because if I have to achieve 2031 goals, I need to start, and I think we already started.

Correct. Absolutely, absolutely.

That's fair point. Thank you so much for that answer.

The next is on foundry and forgings. I think since last year, we've been tracking and stating that this business is expanding into different verticals targeting aerospace, other foundry verticals in automobiles, etc.

If we see, Suzlon's share has continuously been inching up on a quarterly basis. Any thoughts with respect to how the utilization can be actually ramped up to 50% or something material number?

Sweta, very good question. See, this is one business which gets more impacted with the geopolitical issues which were happening in the recent past.

We are trying to also increase the share of exports. Some of the big customers we found got into the Gulf crisis.

What the business is looking at is distinct three segments: foundry, forging, and bearing. We have started talking to more customers, more order pipeline.

In fact, in the coming quarters, you'll see whole strategy panning out beautifully well. Obviously, while Suzlon will be a big buyer, but we want to actually increase the share of non-Suzlon—

Non-wind. —and

non-wind, and exports. These are the three or four KPIs given to them with a very clear three business models of foundry, forging, and bearing.

I'm very confident this business has a lot of promise in time to come.

Okay. Thank you, and all the best for future.

Thank you.

Hi sir, good evening. I would like to ask that there has been a unconfirmed news in the market that there is some kind of foreign holding cap that the company has placed.

Can you confirm that if there is a cap on the amount of holdings in the company which can be held by foreign FPIs and FIIs?

Not really. I don't think there is any such thing.

In fact, I can't place a cap on it. That's the rules.

Nothing else.

Hello?

That's all?

Hello?

Satpal, any further question you have,

any—

I can hear you.

As regards the installed capacity, there was an interview of JPC sir which was held at the One Earth campus where he said that once the 5-gigawatt machines the production is started, the installed capacity will automatically go up from 4,500 megawatt to 7,500 megawatt. Am I wrong in somewhat of understanding of that statement?

I'll not give you a number from 4,500 to 7,500, but if the current capacity, everything shifts to let's say the 5-megawatt, yes, that is the way it has to be looked at. It will be much higher.

That takes time, no? Because your current order book, if you see, of the 6.1 gigawatt is largely S144 3 series, and some part of it is also where the retail demand and some customers and some orders are there of 2 megawatts.

I think it's a mix and it's a transition as it happens. When you finally transit, it'll go up.

Obviously, you're right.

Okay. Okay.

When I go on a line-by-line comparison of the profit/loss account, the majority of expense that has increased is in material consumed. I'm still trying to understand what would be the expenditures that would have been booked into material consumption?

See,

basically, it is the EPC, if you see last year same quarter, we were 22% share of EPC, and this year, we are 32% share of EPC. There's a substantial shift.

Okay. Right, sir.

Thank you for the opportunity. Thank you very much.

Thank you, sir, for the opportunity. My question is related to the realization that is increased from ₹5.6 crore per megawatt to ₹6.3 crore.

As you mentioned in the opening comments that this is a part of the result of a project mix change. If you can throw some light on how should we think about this number as EPC business is increasing and for the entire year how should we think about this number?

Basically, you're right. The EPC share has gone up from the base year where I said was 22% has gone up to 32%.

That's what is translating into the higher revenue.

EPC and project business.

Also project business.

This upward movement shall continue going forward as well, sir? Because

the scope has increased, the revenue has increased.

As our project business will be higher, we will see this number in that range. Again, this is also a judgmental number overall is what I would like to say.

The ASPs are in fairly good shape is what we are saying here.

Got it. Got it.

Sir, for the asset management business as well, we saw margin expansion in this quarter. My question was now do we see that this shall be a sustainable margin level of 33%-34% going forward as well?

This is actually much higher, 43%. We believe this should be more like higher 30s, 39

38-39. Huh?

You're seeing the segment revenue. What is the question, can you repeat?

I think I may have got it wrong.

Yes, sir. I'm asking about the OMS business, the O&M business.

You're talking of the OMS business EBITDA margin or the share of OMS business of the total business? No,

no, EBITDA margin, EBITDA margin.

Yeah. It's right.

In this quarter, it's slightly elevated at 43%. I believe it should be more or less in the higher 30s and closer to 40.

That's the way we'll endeavor to work on.

That's right.

Rest is all timing issue sometimes.

Got it. Got it.

Thank you very much, sir.

Hello, sir. I just wanted to understand your movement on interest expense.

That seems to be pretty high, almost up 30% YoY. What's exactly resulting in this increase?

Secondly, some outlook on the tax rate that we should consider for the full year. This time as well including deferred tax, the tax rate is close to around 22% versus our initial commentary of there being no tax for the next 1 or 2 years on the income statement.

If you can explain on those two points?

Okay. The way to look at it is that when you think about from Q1 to Q1, my revenue is higher by about 23%.

To a certain extent, that will also go into the interest cost as well. Given there are overall working capital utilization is, which is flat to slightly higher, and tracking that number, this number is overall dependent on the overall utilization of working capital, which is leading to a slightly higher interest cost.

Now, I can also tell you that when we look at it from a line-by-line item from an interest cost perspective, our overall rates that we can command from the market has actually come down. That's a positive change that has happened.

That's probably the explanation I would give to you from an interest cost perspective. When you look at it from a tax perspective, all the tax charge that you see on our P&L is the recognition and the let's say the rundown of the deferred tax assets that have been recognized in the past.

None of these are cash items. Minor cash could be there, but nothing major.

Largely these are non-cash items is what I would say.

Right. Got that.

Just to clarify, you had mentioned that you would invest money on the RE devco site. Surely there would have been some investments done.

Can you quantify how much have we done on that side, and has that also contributed to the increase in the interest cost? See,

again, it's an overall cash utilization position. Our overall devco investment is expected to be about ₹500 crore on a revolving in nature.

Currently, we will probably in the range of ₹200 to ₹300 crores. It remains like that.

If there was no investment in devco, obviously there would have been a better cash position that was available with us, but I don't think we need to look at it from that perspective. It's an overall working capital position that has led to slightly higher interest cost.

Like I said, our overall rates are lower than what we had started the year with and last year as well. Positives more than negatives.

Right. Got that.

Just one more thing. If you can just talk us through the capex plan, because now we have sufficient capacity of 4.5 gigawatt at hand for the domestic markets, but now we are launching newer turbines on the export side, etc.

How should one think about your capex investment or any capacity addition on that front?

Capex, we had guided even earlier calls also closer to ₹700 crores, plus minus maybe ₹100 crores depending on the timing and sometimes permits and local issues. By and large, the guidance remains intact.

Just to add to what Ajay said, Amit, the point is that the capex is to support our growth and capacity expansion. The 5-megawatt series and others, as they come in, they will need certain blade factories,

which

we are now investing in AI-enabled blade factories as well, like we said in our opening remarks as well. It's investing into the future rather than just looking at the current 4.5-gigawatt capacity.

Is any of this investments closer to the end market like in the foreign geographies that you're making?

No, these are all currently in India. As of now, the foreign strategy is to be able to manufacture in India and sell globally.

The products that we are making are for the global markets as well.

Right. Got that, sir.

This was helpful. Thank you.

Sir, a couple of questions. First question in line with the earlier question regarding the gross margin.

Is it fair to assume that the impact on the gross margin was largely because of the change in mix and none of it was regarding the commodity inflation?

No, I didn't get the question. Could you—

The question was commodity inflation. The

impact on gross margins was largely owing to the change in mix between EPC and WTG supply, or was also some component because of the commodity inflation?

Again, yes, I understand your question now. Thank you.

The mix with respect to the AMS business, which is a higher-margin business, versus supply of let's say the RE Solutions business, is the one that has impacted it. Obviously, there is some impact of one-time costs as well, like some of the other participants have talked about.

Largely to what you are saying is right.

Okay. Sir, under the devco model, we have already booked around 600 megawatt of orders.

Just want to understand how much land bank is available with us and trajectory if we can give in terms of land bank development in this year and a couple of years?

As a thumb rule, we earmark up to 25% for a project which is fully baked to invest in the land. We do stage-gating depending on where we are.

At a second stage gate, we increase this from 25% to 50%. By then, we would already signed the term sheet with the customer, and then we start also transferring the land in the name of the customer, thereby recycling the money, which Rahul was earlier mentioning that we have earmarked about 500 as a packet for this particular initiative.

Currently, we have not reached the threshold of that 500. We are much below that.

Yeah. Sir, the capex plan of ₹700-odd crores, does it also include the devco investment?

No. No, that's separate.

This is capex. Pure capex.

Devco is essentially buying the land and connectivities and others, right? That is essentially inventorized.

Right. Sure, sir.

Understood. Thank you and all the best.

Hello. Thank you so much, sir, for giving me an opportunity.

Just one question with respect to devco model. Earlier, we were actually expected to limit our investment to let's say ₹250 to ₹300 crore.

Now, we are expecting to actually increase it to ₹500 crore. Do we have any kind of a restriction in terms of how much we can invest in this particular business, or this can actually go beyond ₹500 crore as well?

Priyesh, thank you for the question. I think the ₹250 crore number that you are talking about is a very long back number.

I think we have come to a state where I think even when we were talking about Suzlon 2.0 strategy, we have talked about this as a ₹500 crore number even at that point in time. As of now, that's the cap that we have.

If there is a change on it, we'll certainly come back and give you the positioning around it, but that's what we've kept our, let's say, financial guardrail around.

Sir. Thank you.

Hi, sir. Thank you for the opportunity.

Two questions. First, as your share of EPC increases, do you expect the working capital cycle to worsen materially?

Second, if you can share some details on the BESS side, some specifics regarding the partnerships that you are exploring, if you can share something.

Let me just answer the working capital question first, and then I'll give it over to Ajay to answer the other question. On the working capital cycle, again, I don't think EPC creates a negative.

The working capital cycle is what it is, right? We are working on various tracks to improve the working capital cycle.

I am happy to report that when you look at our numbers and when you look at our statement that has been the investor presentation, you will see a significant reduction in the receivable number, right? I think EPC or non-EPC, working capital cycle is what it is.

It is not negatively impacted by EPC. Ajay?

Yep, that's very true. As regarding BESS, we are currently in a state where we are discussing with our various potential partners.

We already had few rounds. Some of them are quite

encouraging.

I think in the next couple of months, we should be able to close those partnership and the first cut arrangements. Our target is that FY31, we want to come with 3.1 gigawatts, and we are working in that direction.

Basically, we are looking at tying up with some partners, and some meetings, as I mentioned, already happened. It'll take time, but we want to do it right because, again, in this sector, if you don't get it right, you end up not creating value accretive, and we want to do that.

Because for us, the core of the whole strategy is that our RE Solutions is to enable us to optimize the wind sites in the devco model, and at the same time, solve the customer's pain point where he's looking at a complete RE end-to-end versus pure wind. Therefore, we are doing BESS and then also solar and hybrid.

What we have also done is hybrid controllers through our central R&D. Few customers have already signed up with us for pilot orders, I think that's something we are already progressing ahead of time.

Sure, sir. Thank you so much for the insights.

Hi. Two questions.

First, can you tell us a little bit about the pricing difference versus the global WTG manufacturers? Because you're trying to go into Australia and Europe and all these places.

What kind of competition are we facing from the local players, from the Chinese? That's my first question.

Abhishek, when we are looking at the international market, when we talk to our customers there, it's not just Chinese, it's basically in every country, you have two or three big players. Suzlon has been there at some point or the other in past, they are looking at as a good alternative to those two or three.

Some of them are already using Suzlon turbines which were supplied long back. Some of them already have Suzlon fleet, which is being managed by our international operations and maintenance teams.

I think we are also picking up our markets where, for example, smaller turbines, 2-megawatt series for repowering, is something an order we believe we should be able to procure from Europe and Australia. Here we don't compete with Chinese or we don't compete on price alone.

We purely compete on the product and the delivery. Finally, I think it'll be all coming out of India, and we should be pricing at par with the local players, give or take, something which will be done as part of the marketing strategy.

We're not really looking at competing on price. We are purely looking at competing on total value add and energy.

Got it. The second question is that if I look at the local market, then utility-scale ordering has come off quite significantly from 50 gigawatt almost 2 years back.

There's also been some INR depreciation. How has pricing moved in the domestic market?

Has there been some pressure over there?

There is a good traction

for

wind.

Realization has gone up from 5.3 to 6.2, but if we exclude EPC and just talk about WTG, then how is that coming along? Sorry, yeah, go ahead, please.

When we look at the current bids in the market, there are almost 5 gigawatt of bids in the market right now as I speak to you. Government's ambition is also to take it to a 10-gigawatt market by FY30, and on top, another 5 gigawatt say 15 gigawatts by FY34-35.

That's what we are seeing in the industry. We are finding very good traction on wind.

With the devco-led model, we want to solve the challenge of long lead time for wind assets to be put in place. I think the question is not about the demand.

I think the question is execution since in the evening hours, wind is the only solution in the RE space. I think that's where the opportunity, at the same time, challenge lies.

I don't know if I've answered your question, Abhishek.

Yeah. No, I was basically asking about the pricing movement in the domestic market and has there been any pressure because of INR depreciation?

More or less same. Your INR depreciation has happened, for example.

At the same time, as we ramp up our volumes, for example, our 9 our 3-megawatt series we already done 9 gigawatt of orders, so that also gives you alternate suppliers, you also develop your ecosystems of supplier databases, and you keep optimizing your costs. I think it's a constant movement on cost optimization, volume, and it's end of the day volume game.

As you ramp up volumes, you also bring your unit costs down. Okay.

Got it. Thank you so much.

Good evening, everyone. Thanks for the opportunity.

Sir, my question was regarding Suzlon Investor Day presentation in which you mentioned the renewable energy sales of 10 gigawatt, which is 4x the current amount. Sir, I was asking that your current capacity is 4.5 gigawatt.

How would you achieve that 10-gigawatt sales? Even if we consider a capacity expansion, won't it take some time to properly ramp up the additional capacity?

Very good question, Nitin. I'm glad you asked it.

Our presentation for Investor Day was for FY31, which is 5 years from now. We said we'll do 10-gigawatt sales of RE, which would include wind as well as solar and BESS.

We also mentioned that you can take a 75-25 breakup. We're looking at 7,500 wind, and we are 5 years from now.

Capacity is already 4,500. We are making investments in new plants.

As we will migrate to higher turbines, the same plants will start making from 3 to 5 and then onwards. I think, and this question was also asked by somebody else, at the current capacity, if you start making different turbines, translates to already 7,500, and we have enough time for transition towards our FY31 ambition.

Right now, we are focusing on FY27 and '28, and I think with every passing year, we will keep updating our FY31 forecast, which we had made only 2 months back. I hope I have clarified your— Thank you.

Thank you, sir.

Thank you for giving me the opportunity. My first question is like you said that our 10% to 20% deliveries were deferred to subsequent periods.

Can we assume that in Q2 those deliveries will happen?

Nikhil, to just quickly answer your question, I think we have to look at it from a H1-H2 perspective, like I had answered one of the previous questions. We are roughly about 35%-40% in H1, and H2 is typically about let's say 65% 60%-65%.

I think that trend continues, Nikhil.

Sir. Sir, my second question would be on the lines of a contribution margin.

I didn't get the question.

Sir, I wanted to ask the second question on the lines of contribution margin. Did our contribution margin came down because of EPC mix going up?

Let's assume that we have a 50% 50% mix of a EPC business and 50% of wind turbine deliveries. What are the steady state margins that we are looking at?

Okay.

The way to look at it is not EPC versus non-EPC. The way to look at it is the RE Solutions business and the REAMS business.

We've said this in the past, the AMS business typically has higher margins because of the service nature of the business. As let's say the volumes of the sales on the WTG ramps up, the mix changes, which leads to a slightly lower margin.

I think that is the way to look at not looking at it from a EPC/non-EPC perspective.

Sir. Those were my questions.

Thank you.

Thank you very much, everyone, for participating on Suzlon Energy's Q1 FY27 call. We hope to have answered most of your questions.

If not, please do connect with our investor relations team, and we will be happy to answer the questions that you have for information in the public domain. Thank you very much.

Bye-bye.