Thank you so much. Good afternoon, everyone, and thank you for joining us for Suzlon Q3 FY26 earnings conference call.

For the first time, I'm joined by Rahul Jain, our Group CFO. Of course, some of you have met, and more of you would keep meeting him.

Unfortunately, my throat is in pretty bad condition. Continuously coughing since morning.

I want to reserve my energy for Q&A, I would request Rahul to take you through our opening comments, but I'm here for subsequent Q&A. Sorry about that.

Rahul?

Thank you, J.P. Chalasani sir.

Good afternoon, ladies and gentlemen. Many of you may know me from previous and earlier associations, but for the benefit of the larger group, please allow me to introduce myself.

I am Rahul Jain, and I recently joined Suzlon Energy Limited as Group CFO. It is truly my privilege to be a part of this forum today.

Prior to Suzlon, I have been associated with SRF Limited and Jubilant Ingrevia Limited. I'll now take you through talking about the industry, certain business highlights, and continue on the financial piece as well.

We recently celebrated an important milestone: 30 years of Suzlon's journey and T.R.T.' s birthday on 2nd February.

It reinforces the vision, resilience, and forward-looking spirit that Tulsi Bhai instilled in Suzlon, values that continue to guide us and inspire us even today. Talking about the industry, India's wind sector is witnessing its strongest growth phase.

The year 2025 has been a landmark with wind installations touching record 6.34 GW, surpassing the previous peak and clearly reaffirming the vast demand potential of wind energy in the country. Industry is well-positioned to move to higher installation year after year, with a clear trajectory to surpass 10 GW over the next 2 years.

With 54 GW already installed and a strong pipeline with STU and CTU bids as well as C&I demand, India is set to achieve the near-term target of 100 GW by 2030. Repowering also started gaining traction, and there is rising customer interest, which gives visibility of several opportunities ramping up in the next 1 to 2 years.

The market opportunity for Indian wind industry is even larger as it is gearing up to become a global sourcing hub for wind turbines and components. With adequate and low-cost domestic manufacturing capacity, India is emerging as a credible supplier for nearly 10% of global wind demand.

Suzlon is also focusing for strong export-driven volume powered by competitive 'Make in India' manufacturing base, and a long-standing global operating experience. To accelerate this, we have strengthened our global leadership with the appointment of Paulo Soares as President, Europe, ensuring deeper engagement and faster market scaling across key geographies.

With the EU trade agreement already in place, and a US trade deal getting finalized, Suzlon is well-positioned to tap significant export opportunities both for WTG components and for SE Forgings' castings. Coming to business highlights, we are pleased to report yet another record-breaking quarter as Suzlon has set a new benchmark in execution by delivering a record-breaking 617 MW in Q3 FY26, the highest ever quarterly deliveries in India since inception.

Yet again, highest ever order book of 6.4 GW, reaffirming our market leadership, powered by over 3 GW new order wins in this financial year itself, resulting in book-to-bill ratio of 1.9x. The focus now is on expanding our EPC offering, which has grown from 20% to 27% in Q3, which enhances our competitive edge and further help to accelerate order book growth.

The S144 order book has exceeded 5.4 GW, a strong endorsement of its advanced technology and customer trust. On the manufacturing front, our 4.5 GW manufacturing capacity is fully operational and scaled to support the current order book.

We are also establishing three new AI-enabled smart blade factories, further expanding our footprint. Suzlon commissioned 442 MW in 9-month, and further to that, another 2,354 MW is in active execution in various stages.

Further, we are also working to develop a strong development pipeline of 25+ GW. We have included these details as a part of our investor presentation.

Kindly refer to slide 23. Our OMS business remains strong, with 15.5 GW+ under management in India and machine availability consistently above 95%.

Renom's AUM is consistently growing on the back of steady fleet additions and healthy pipeline. Our Forgings and Foundry business is unlocking its potential, delivering 33% year-over-year revenue growth in 9 months to ₹429 crore with EBITDA to ₹88 crore.

We expect this growth momentum to continue with stronger domestic demand and export opportunities. Suzlon has been ranked among the top 10 most sustainable companies globally for 2026 by Global 100 Most Sustainable Corporations list by Corporate Knights.

We are deeply honored by this recognition, especially as Suzlon is the only Indian company featured in the list. With strong performance in the first 9 months, we are firmly on track to achieve our FY26 guidance of 60% year-over-year growth across key KPIs.

I would be using slides 18 to 27 of our investor presentation, which has been uploaded on our website, as a reference point for my discussion during the presentation. In Q3 FY26, Suzlon continues its exponential growth trajectory, delivering 617 MW, highest ever India deliveries for any quarter, with all financial parameters showing strong uptrend.

Suzlon reported a revenue of ₹4,228 crore in Q3 FY26, with an EBITDA reaching ₹739 crore, a robust 48% year-on-year growth, with PBT of ₹567 crore and a PAT of ₹445 crore. In 9 months FY26, deliveries grew 66% to 1,625 MW, surpassing the full year FY25 level of 1,550 MW in FY25.

Strong execution momentum drove revenues to ₹11,211 crore, up 58% year-over-year. Consolidated EBITDA increased to ₹2,058 crore, reflecting a strong turnaround with 77% year-over-year growth.

PBT rose 77% to ₹1,589 crore, with reported PAT improving to ₹2,049 crore. We are pleased to report that our balance sheet as of December '25 reflects a position of exceptional strength.

Strong consolidated net worth of ₹8,332 crore, our net cash position is at ₹1,556 crore, further enhancing our financial flexibility and resilience. Adequate working capital limits tied up for execution of the current order book.

Our end-to-end wind energy model, supported by an integrated supply chain, strong execution, and industry-leading service, provides a competitive edge that is unique and difficult for others to match. Thank you, and I now request the operator to open the line for Q&A.

Good evening, J.P. sir, and welcome, Mr.

Rahul Jain. My first question is out of the 2,354 MW execution pipeline, how many megawatts, aging-wise, are pre-FY25?

Similarly, in your trade receivables of ₹5,745 crore, how much receivable is due beyond 1 year? On both counts, can you the risk of further delays for both your customer and for Suzlon?

That's my first question.

See, effectively, if you take out the quarter 3 supplies, you mean that I hope I'm audible. If you take out quarter 3 supplies, which is 617 MW, the balance is what we're talking about, 2,354, which is what is under execution.

Current supplies, what happened in Q3 are the one which are not in the different states of execution predominantly. See, there could be 50 MW from this is done, 50 MW of let's say Q2 is done, but otherwise directional that is what is you can take it, okay?

Out of 3,000 MW, what is there supplied and uncommissioned, 2990, whatever it is. We take out Q3, that's the balance.

The second one is on receivables. To answer on the receivable side, our total receivables are roughly about ₹5,700 crore.

Those that are not due, in terms of saying that certain milestones have still to be completed, are roughly about ₹2,100 crore. Therefore, the balance number is ₹2,600 crore.

₹3,600 crore,

yeah, so that's the number. The first question was also that how much of this 2,354 has been sitting under execution, even pre-FY25, how much is sitting in 2,354, which has been under execution for the last 7-plus quarters?

If you look at that number, I don't have it right away,

sure.

Pre-25, I think, would be somewhere on 50 to 60 MW. If you're talking about pre-FY25, right?

Yeah.

That is what it is, that predominantly one project in Karnataka, which is stuck because of land and various things. Otherwise, there's nothing beyond that.

Okay.

On receivables?

₹3,600 crore

is less than 1 year?

Largely, I would say. There are no big overdue receivables, I would say.

Some, obviously, are there, but not big ones.

Got it. The second question is on WTG EBITDA margin in Q3, which is 13.7% versus 15.6% in H1 and 16% in Q2.

Why is the dip in Q3 happening? Is it owing to higher EPC in the mix, or are there other reasons as well?

Come again, Sumit. Sorry.

Sir, I said the WTG EBITDA margin in Q3 is 13.7% versus 15.6% in the first half of the fiscal. Why is the dip in Q3?

Is it owing to higher EPC in the mix of the

What happens is that it depends upon a couple of things. One is the average sales price in the quarter, depending upon who is the customer you supplied.

The impact of one large customer not being there this quarter, impact is almost about 1.9%, and then the another is roughly because the project revenues have gone up. Project margin is being lower than the supply margin.

Therefore, you see this. These two are basically causing 200 basis points.

Basically EPC share is higher rather than product delivery, when you say project margin?

No, no. Not EPC share.

I'm saying average sales price of turbine has come down in this quarter because it depends upon whom are we supplying, because contract to contract realization changes, okay? The previous two quarters, we had a customer where realization was very high.

The impact of change in the mix of customers, because we keep changing quarter to quarter, change in the mix of customers to whom we supplied, and the average sales price coming down, impact of that is almost close to 200 basis points, 190 basis points.

Got it.

I'm talking about supply, okay? Second is the projects revenue, yes, that is where you can say EPC or SIA, not necessarily only EPC, SIA.

Projects revenue has gone up this quarter. Project revenue margin being very low compared to supply margins, proportion of project revenue keeps increasing, your margins fall.

Like, for example, we always keep saying the overall group level, and WTG revenues goes up, and OMS being the higher margin, but the proportion comes down, our overall margins also come down. Similar way here, average sales price and the project revenue is what will decide quarter to quarter what are the margins.

If you see

9-month

level, we are still healthy.

Got it. My last question, sir, in the press release for Suzlon 2.0, it is mentioned that your plan includes launching DevCo as a standalone FDRE project development vertical.

What is the implication on balance sheet commitment for Suzlon, and what does it mean for ROCE and leverage levels for Suzlon targeted going forward?

No, this is nothing but what we have been talking from, I think, last two quarters of our taking the development route to increase our EPC share.

It does not mean committing balance sheet. Okay.

We said that we keep some seed capital and start doing it. What this development company, because we wanted a more focused approach, not getting concerned with the day-to-day project execution and the land concerns in the projects, this business, whether you call it a separate company, subsidiary, but this business unit would concentrate on two things.

First thing is, identifies which are the potential sites over the next 5 years based on the wind data what we have. Okay?

Then therefore, it identifies what are the sites for year 3, 4, and 5 from now. We start acting on that, and that is where we will have more strategic sales with large customers, who are in the renewable energy business who are on a long-term basis.

"Boss, if you want to do year 3, 4, and 5, let's now tie up for 3, 4, 5 for the purpose of land and everything." By the time we start in year 3, the most of the land is acquired, your connectivity is there, everything is there, when you start your work, your IDC will be the shortest.

Plus, you have a clear visibility of your 3, 4, 5 targets. Okay?

That's one segment what development company does is. We will start having that strategic sales for year 3, 4, 5.

Second one what it does is, what I explained earlier, that we start acquiring the land, and before we reach 25%, we get a client and they take over the 25% and start paying us for the land thereafter, but EPC NTP will come little later. Let's say 50%, 60%, 70%, what is the comfort for both of us to do, so that their IDC would come down substantially and the project gets executed much faster.

Once it enters into a project phase, let's say there is 25%, 30% of the land still to be acquired, that's the only portion the projects division will take over because project activities have already started, EPC activities started, and the team which is working on the land from the development, on the ground team will get subsumed into that projects division. Basically, this is an advance action, and what it does is after identifying sites, you need to get local authorities' approvals, whether it is MEDA or it is KREDL or it is NetCap in AP or wherever it is, you get those approvals.

If it is an STU, you will also be getting connectivity. You will also be planning future what is to be done in CTU, depending upon how the business unfolds on CTU.

Keep everything ready so that execution is faster, and we will get more and more EPC contracts. It's good for us and good for the clients.

It does business in a very, very focused way. There is no significant change in business model, but we're creating a business unit which is more focused only in that, and here it is not to do with any balance sheet putting, which has put the seed capital.

Am I clear, Sumit?

Thanks. Yes, yes.

Thanks for the detailed reply, sir, and wish you all the best.

Thank you.

Good evening, team. My first question is over the past 2 1/2 years, renewable tenders have been quite weak in the country.

How confident are you of growing your order book, especially when the execution pace goes up from here?

See, let me start with our order book mix. First one is that the current order booking, when you look at, 51% is from C&I and captive segment, okay?

There's no involvement in the bidding. And 36% is from bidding.

Dipesh, if you could put yourself on mute, I think there is background noise, we could control that.

About 13% is from PSU segment. Our involvement in the bidding is to the extent of 36%.

That also has gone up, I explained in the last quarter, because we had a huge order from Tata Power. While what you say in terms of bidding activity at the central level has taken a pause, I don't say stopped, taken a pause because you want to resolve the issues of outstanding PPAs and various things, state-level bidding is now picking up, okay?

You're seeing in GUVNL bid has come in, in MP has come in, now other states are talking about it. That will keep going up.

Even in the central level, if you see, I'm sure that all of you have followed, yesterday was the SECI 19 or something, the reverse auction happened. Till date, most of the bids for SECI were under-subscribed.

This is a pure wind bid for 1,000 MW. It was oversubscribed by three times, okay?

There were offers for 3,000 MW, and the tariff is ₹2.67 to ₹2.69 depending upon these were the people who won, okay, after that. Therefore, for the wind, wherever there's a standalone wind bid, there is still a significant amount of demand happening.

While I see that there is a pause, but I think with what is going to happen in terms of state bidding and, more importantly, with the significant amount of data centers now planned to be commissioned by 2030, all these data centers are supposed to be the green data centers, that's going to push significant growth in renewable energy, and our strength is in that area. It comes under C&I.

While I will accept your point, but I don't see that is going to have a significant impact for our business.

Sure. Can you also add some color on exports now given UAE FTA has been signed, US trade deal has happened, I think you have also appointed someone as head of your European business.

Some more color on how is our export pipeline shaping up?

On the US, Dipesh, I actually everyday morning I check whether we have a potential or not, because it depends upon what comes on the Truth Social, whether wind will happen or wind will not happen at 9:00. It is nothing to do with the trade deal, because right now from the current government point of view, wind is not favored and they don't want to do wind.

While that is a significant potential for us because that was our largest market in the previous time, but we'll continue to wait and watch when that market opens up. That's why we moved our focus to Europe.

That's where you have seen Paulo's announcement. In fact, he was with us earlier.

When we stopped international business, he went out, but came back to us. We are exploring Europe.

We're exploring Australia, South Africa, Middle East, and Portugal, few other countries. As I said earlier, you will see some traction, some sort of orders getting announced in the next financial year, but the supply starting and the revenue flowing in will be in FY28.

The US, we need to wait and watch when that's opened up.

Sure. Lastly, sir, I think some of our Chinese peers have introduced 5 MW platform, and it seems the selling feature basically it is 8% to 10% cheaper in LCOE over 3 MW platform.

Want to understand how far is Suzlon from launching that 5 MW platform?

Let me define how far is actually a very subjective question, Deepesh. If you ask me, we are very near, okay?

That very near could be a little far for you. Anyway, but what I want to assure you is that our 5 MW turbine is now getting into the proto stage, and then that will come at time.

The thing let me tell you is that in spite of the 5 MW turbine launched, our 3.15 MW is going significantly. Now we have also started selling 3.3 MW, okay, with the revised power curve, which has a lower cost per kilowatt-hour compared to 3.15.

My feedback, I'm sure that some of you would have the feedback, 5 MW, when they started actually implementing, because the original feeling was that you need less number of footprints, is actually land acquisition is becoming a big headache because a 5 MW footprint actually need multiple farmers to sign because you need a larger land area compared to a 3 MW. Making each farmer to agree for one footprint because they have a multiple farmers is creating an issue.

In fact, I was talking to few of the developers. I think they're actually saying that is it the right strategy for us to go because we fell into it because you need less number of footprints.

Less number of footprints doesn't mean that it's a faster execution. Even that is happening, but still we're coming with 5 MW, therefore I'm not against 5 MW, okay?

Our 5 MW will come at the appropriate time. We will ensure that that turbine delay will not impact our intake of orders.

Sure. Thank you, and sir, please take care of your health.

Thanks, Deepesh.

Hello, am I audible?

Yeah. Good evening, team.

My first question is with respect to Forging. Obviously the last time when you said we are planning to increase the revenue, but the 9-months others, that is the revenue that we get from not Suzlon, that hasn't improved much.

It's more or less flat. Could you just throw what was the issue over there, and going ahead how do you look at it?

Yeah. The SE Forge is, as we said in our opening comments, is the one which is now unfolding its potential.

As we said that the overall between Foundry and Forging, the capacity utilization has gone up from 21% to 31%. 31% is small, but fine, but relatively we improved by 10 percentage points for the last 1 quarter.

The profitability has improved. EBITDA has doubled from ₹40 crore, and our margins have gone up from 12% to 20%.

On your specific question of non-wind and other things, work has started in terms of non-wind like your injection mold machines and various other things, but what happens in case of castings is, before order starts getting implemented, the process of preparing a casting prototype and getting it approved is a long-drawn process. They're going through that process.

You would really see in FY27 the revenues coming from non-wind substantially going up compared to what it is now. That's clearly we're on the path of increasing non-wind.

The second is that because of the US trade deal, till now whatever the tariffs was there, we had an impact on US exports. We export big way to US, especially to GE.

Now with whatever the trade deal announced, and that will again come back, the GE is again back in that. Both ways the wind also it will increase, and the non-wind also it will increase.

I'm especially personally quite excited on SE Forge as we move forward. Number of things we're doing there in SE Forge, especially in Forging.

Understood. Understood.

The second is with respect to installations. Just we are slightly slow, but if we take a seven-quarter data also, and ratio of deliveries to installations, we are at 36% odd.

Whatever we've delivered, roughly 2 GW more has to be installed. Just wanted to understand what are the main pain points or which are the regions where we're struggling or in this specific 3 or 3 GW that have already been delivered?

Compared to other players, how are we placed in those regions?

Definitely, Shiva, I'm not going to say that we're great doing an execution. Execution obviously is the main challenge for us as well as sector.

In fact, maybe for us more because of the numbers, because others' numbers we don't know fully. We only know the total numbers.

The segment-wise we don't know, and how old it is also we don't know. Therefore, I'm not really concerned about what others are doing and why we can't do it.

I know that we are only at 10% market share as of today. We gave a guidance we'll reach to 25% by end of this year taking 6 GW as a top, and we're still working towards that.

The reason why the execution is getting it delayed is first of all, this is till now it is 80-20. 20 is EPC and 80 is non-EPC.

We have a limited control on land and BOP in those projects. That's one reason.

Even it doesn't mean that where we are doing EPC everything is hunky-dory. I don't want to claim that.

Even we are having issues with respect to execution, but slightly better compared to them. The challenges are the same: your ROW and first of all, land coming in time, because acquiring each land negotiating with farmers is becoming a major, major issue, and then thereafter ROW issues keep cropping up every single day, and the ROW not just for the turbine, including for your dedicated system.

Then the main evacuation system to be done. For example, this quarter we have a 253 MW of turbines pre-commissioned, means they can generate today, provided they get connected to the grid.

Okay? In some places grid is not there, which the client is supposed to provide.

Some places, the dedicated system of the client is not there. Therefore, these are the delays.

In fact, there is 80 MW sitting out there could have been easily commissioned, but for the issue of temperature, okay, which confusion between MNRE and MOP, which they're trying to resolve. While there is definitely a need and scope for us to improve on execution, there is no second doubt about it, but there are these issues which we know what are the issues.

That's the reason we gave that breakup of how much is under implementation. We are reasonably confident that by the end of this year, especially in the quarter 4, you will see a significant jump in terms of our execution, and it will pick up.

Once we start getting into more and more EPC through development, this will change. Question is whether somebody else is able to do better than us, I'm not too sure.

I will not be able to comment, but one can obviously ask that you are only 10%, somebody else has done 90%. That's a legitimate question to say that there are people who are done 90%, but that aging and those things I really don't know.

I'm only looking at myself, not looking at the market. There is a significant scope for us to improve this, and we are working at it, and we will improve it.

There's no second opinion about it. We got to do it, and we will do it.

Okay. Thank you, sir.

Helpful. The last one is with respect to battery storage.

Obviously it is not a source of generation, but if the battery cost go down and the quantity of batteries goes up, the plant load factor of solar and wind will go up indirectly, right? The amount of gigawatts that in the long term, just trying to understand in a very long term might not be that much it invariably decreases the amount of gigawatts that need to be set up, right?

Is it not highly dependent on the cost of batteries?

No. Battery doesn't add any generation.

I'm saying the plant load factors will increase, right? Because it'll store energy, the 1 GW which had 20

yeah, but if you ask to store energy, it has to be produced. Whatever is the solar or wind connected to the battery, that has to generate.

If you need let's say a billion units, you still need a billion units to be generated. What battery does is actually it tries to match your load curve with the generation curve.

That's all it does, okay? It has no impact on your PLFs.

No, I'm saying earlier 1 GW of wind used to produce x amount. Now, because of the battery, 1 GW of wind and 1 GW of solar used to give x amount.

Now when we put in battery, because the unused hours you can store that and you can indirectly increase the electricity consumed at the night, you don't need that much amount of gigawatts to set up, right? The battery becomes efficient.

Shiva,

it's a

little more complex. Your answer is yes and no.

If you have a load demand curve, you have a peak demand. Fine?

You're creating your generating capacity to meet peak demand, and which remains not utilized during the off-peak period, rest of the period, PLF will be low, definitely low, okay, because you're not utilizing it. Therefore, the moment you put the battery, the amount of generating capacity what is to be put to meet the same load curve will come down.

You're fine from that point of view, okay? Therefore, that's the reason I said that this only matches between the demand curve and the load curve.

Today that is not what people are doing it. That is how we went ahead in solar.

What's happening now is with solar getting backing down is happening in solar. Directionally your point is valid.

Means theoretically, yes, you're right. If you're setting up a capacity to meet peak demand, now if you put the battery, the capacity what is to be created solar or wind would come down because you're trying to flatten the generation curve to match the load curve.

That I agree with you. What it does is the cost per kilowatt-hour will come down.

Yeah. If the batteries become very cheap in 10 years or so, then this projections might get a hit, right?

We don't know what happens, but it's highly dependent on how efficient the batteries are and what is the manufacturing cost of the battery.

See, battery we really don't know anything sure today.

We talk about 80% As of now.

Then single source, okay, single source today. One single source can actually turn the key and then actually screw it up.

Therefore, what happens to the battery? What is going to happen?

You're seeing what is happening in the modules. Suddenly you see the prices going up, prices coming down.

I think what is important for the country as a whole storage is mandatory. There is no second thinking about it.

If you want to increase renewable energy consumption, storage is mandatory. Otherwise, only alternative is more and more fossil fuel.

Whether it is battery or the PSP and how it happens is what we need to wait and see, but storage is mandatory. Without storage, renewable energy will not grow.

Earlier also we said clearly the standalone solar will not grow unless solar and wind is there. This is our stated stand for the 5 years when people ridiculed us.

Today I'm again saying that without storage, renewable energy will not grow. At the same time, your answer to your question is that for a given demand, the capacity required for wind and solar will come down, but the moment you put storage, you're flattening the generation curve or matching generation with the demand curve, overall demand for renewable energy will go up.

You get my point?

Right. Thank you for your time, and hope you get well soon, sir.

Thank you.

Hi sir. Congrats on a good set of results.

Sir, my question is since we have completed 9 months and regarding our guidance, right, 60% growth across all parameters and around 2.5 GW of deliveries. So 1.6 GW we have already done.

I'm not expecting any numbers, but directionally how do you see is there any change in guidance or so how do you see Q4 panning out?

100% we are committed to the guidance. 100%.

If there is any change, we would have come forward ourselves and said that. Pretty confident to meet on annual basis it's 50% to 60%.

Sir, this is the word, it's not clear.

I said 100% we're committed to 60%, and we will achieve that. If there was any downward revision, we would have come forward on our own to say that,

but

there is no downward revision. Pretty confident to get to that 60% growth rate.

There is absolutely no doubt about it.

Sir. Thanks.

You

you might back-calculate, you might say this is, till now you're not done it, itna capacity dispatch ho sakta hai kya. Maybe, a year back if I told you that we will dispatch six 600 MW in 1 year, you wouldn't have believed it.

In 1 quarter.

In 1 quarter. Okay.

Therefore, I can only say at this point of time not commenting on individual women, I can reassure everyone that 60% guidance what we gave is completely online, and we will achieve that.

Sir. Thank you so much.

Yeah. Sir, thanks for taking up my question.

I have the two queries. One is can you please share the order pipeline, if possible?

Second, why our working capital requirement is increasing?

Yeah. Are you Sudhanshu that I always treat you as a professor.

I look forward your statements every weekend. Sunday comes Sunday evening, I look at various you've made.

You're asking me a question. I treat you as a professor in the sector.

Anyway, let me answer your question. The order pipeline is strong.

As we speak today, we are now clearly talking about 3 to 4 GW non bidding route of discussions are happening. C&I, you don't know how it keeps opening up.

I still maintain while people might say that your order intake is only 800 MW last meeting to this meeting and things like that, I still maintain the statement which I've been making Sudhanshu in every single quarter: order is not an issue for us. The issue is execution.

If we improve the execution as a sector, we can supply more. We did 617 last quarter.

It pains me to stop at 617. We could have easily done 750 MW easily without any problem.

Then your projects are not ready to offtake, okay? That's the issue.

Issue is not that how much can we supply in a quarter. We can actually supply 1,100 MW in a quarter if there is a consistent offtake from the projects.

Problem is execution is killing us. Ours as well as others because you know that ours is 20%, 80% is controlled by someone else.

It better than anyone else in the sector, okay? That's the problem.

On the working capital, you're spot on. Obviously that I explained earlier that one of the contracts which we built in the which is a large contract, because of the delayed payments and everything, we've taken separate line of credit for that particular contract, but still the payments there the processes are taking much longer time than what it is.

That's what made us to get stuck. Working capital requirements today, Sudhanshu, as long as you keep doing this public sector PSU projects, would continue to be at higher levels.

It may not significantly increase, but will remain at these levels. Okay?

Unless we start seeing the results of our development company, which is what I said that will start maybe giving us results from the, let's say, end of next year, second half of next year to FY28. For example, like we've taken latest contract of ArcelorMittal.

That's a typical of what we've been talking. There we have the land contract much in advance.

By the time we signed this contract, we already have 50% of the land, but still we're not taking NTP for EPC. We said that let's acquire more land, get all the pathways everything, then we will take an NTP.

When we can do a quick execution, good for them, good for us. They their IDC comes down, our working capital comes down.

I think we've got to move to that space. We're moving it consciously in that direction, but will take some more time.

We need some patience to move there. Am I fine, Sudhanshu?

Sir. Thank you so much, sir, and best wishes.

Satisfying a professor is not an easy, that's why I'm asking.

Hello. Good evening.

I hope I'm audible.

Hi, Mr. Chalasani, greetings.

Mr. Chalasani, I just wanted some granular details on this slow offtake which you have been mentioning in this call so far, because for the past four, five quarters, probably this issue has come for the first time in our conference call.

Far the deliveries were good and we were executing well. Probably this quarter, the deliveries have gone down, and this slow offtake issue has come up.

If you can help us understand a bit more about what's Harish, let me be clear.

It is not the first time. Each of those quarters, compared to what we supplied, we could have supplied at least 15% to 20% more.

Each of the quarters, whether it's quarter 1, quarter 2, or quarter 3, okay? It is not our supplies have come down.

Maybe it has come down with respect to the expectations what people had building up to 2.5 GW, but otherwise this is, as we said in our opening comments, this is the highest delivery we ever did in a single quarter. The expectation was different, okay?

Because everybody is doing arithmetic calculation of saying that 60% bola to 2.5 karna hai to theek hai, kam se kam 700 MW to karenge is quarter mein. Ab 617, some people felt that we're not met the expectations.

That's the issue, not that when you're dealing with respect to 60% and see, obviously, the growth is big, okay? I don't think that's an issue.

The issue of offtake, which we have been saying, is there every single quarter. Even last year, we had a 3 GW of manufacturing capacity, we supplied 1,550.

Now we have 4.5 GW capacity, and we're talking about 2.5 GW of supply. Why?

Therefore, offtake not just for us, every single OEM has offtake issue in India, every single OEM. Okay?

As all the OEMs put together, supply can be much more than what today the absorption is happening at the project sites. It is nothing new.

Because this quarter it is less than what you've been expecting, while we're saying that we have done the highest, but still highest is not meeting your expectations, you're saying this is coming for the first time. We didn't speak because this time I sense a bit of a disappointment or a bit of a different things, because we expected 700, 750 karenge, if it na hai, therefore I'm answering this question.

Earlier nobody asked, otherwise earlier also my answer would have been same: we could have actually done 10% to 15% more than what we supplied.

Understood, Mr. Chalasani.

Understood. Just a follow-up on this, Mr.

Chalasani. How are you seeing the ground situation now, because we have been reading about probably 30, 35 GW of solar capacities lying unutilized.

Is it the same with wind capacities as well? The absence of PPA, etc.

is hurting your end customers also?

Let me tell you two things. One is, we don't have any contract which is awarded to us where the PPA is not signed.

That 36% bid route what we have, our order book 36% is bid route. There is nothing where the PPA is not signed.

That's number one. Therefore, orders intake whatever we've already taken, there is no risk of non-signing the PPA.

Second, that 43, 45 GW whatever you're talking about, to my knowledge, the standalone wind doesn't exist in that,

okay?

There is some wind capacity which is part of hybrid. Because the states are now started saying that you increase your wind capacity in that compared to the solar, we want more wind, which obviously you can't do after the bid is done because tariff is locked.

That capacity if you take it, I was told that about out of this 43 or 44, 11 GW is wind, which is part of hybrid capacity where the PPAs are held up, not the standalone wind. In fact, I was also telling earlier that if you look at yesterday's response to the reverse auction, if there is any problem of standalone wind getting PPAs, you wouldn't see three times response to 1,000 MW bid.

Completely subscribed.

Over-subscribed. I don't think there's any problem with respect to PPA for standalone wind.

Understood, Mr. Chalasani.

Understood. Another question, Mr.

Chalasani, related to this only. Probably you mentioned about this ROW and little bit of PPA is also getting resolved probably because of coordination between MNRE and MOP.

If you can throw some more light on that, Mr. Chalasani.

I probably have missed that point.

Yeah. See, finally with our efforts, 2 to 3 weeks back, they formally announced a task force.

By MNRE, giving a terms of reference, which includes MNRE, includes MOP, and includes every state nodal agency and other people, basically to resolve issues with respect to land and ROW and the connectivity. Okay?

Therefore, it is now picking up the importance of it. Will this get resolved overnight?

I don't think so, because the local people are becoming more and more active in terms of creating trouble for our projects, because it has become a political issue that it's more easy because project is underway halfway through, they would be under pressure if you create some trouble. Those things are happening, but the government is trying its best.

Therefore, that's the reason we expect some things. The best way is that you get your land and pathways including dedicated transmission line the ROW clearly signed up beforehand before you start the project.

Because what we are seeing is the response of people there when they see a turbine, after that you talk about land acquisition, versus when there is no turbine, no construction happening when you look at the land, because we do both. In development, there is nothing, no project activity happening, and we do land in where the project's already started.

Completely different response. Where there are no project activities, much more smoother.

Once you see the turbine on the ground, the problems of ROWs increase multifold.

Got it. Got it.

Just one follow-up, then I'll move back into the queue. This task force formation was done very recently, and in your opinion, how much time might be required to at least roll the ball in the direction of resolution?

See, you know the government better than me. You've been interacting with the government officials much more than me.

This is the step one, and the decision to create a task force was taken 6 months back.

6 months back?

At the PMO level, and now task force is formed.

It

is moving in the positive direction, may not be on the timeline-wise. Right,

right. Very helpful, Mr.

Chalasani. Thanks a lot.

Please take care. Rahul, welcome to Suzlon.

Thank you.

Thank you. Thank you, Harish.

Yes. Thank you for giving me the opportunity and congratulations for good set of numbers.

Sir, my first question is, we said that we have a pipeline of 24 GW. How the win rate are we expecting on this orders?

Sir, with so many headwinds in the order flow, but we are saying that we will be able to win the orders. Can we assume that you are going to surpass or even lead FY25's order inflow, or even higher than that?

See, I given a guidance earlier and which I will maintain that each quarter our closing order book will be larger than the opening order book. Each quarter our supplies are increasing.

In spite of that, our closing order book will be more, which you can see for the last six to seven quarters, and this will continue. I would like to maintain at that guidance, because at any point of time 6.2, 6.4, 6.6 is happening and after supplying, then that means there is a steady inflow of orders.

Because between the last meeting of board and this meeting of the board, we added 803 MW. Therefore, again I just want to reassure that because that's what I believe in, not trying to sidetrack the issue.

I firmly believe for Suzlon, order intake is not the issue at all.

Book to bill is at

1.9x. Our book-to-bill ratio is 1.9x, but I can tell you that earlier also I said, I keep repeating that, it is not out of any arrogance, I'm saying that order intake is not an issue.

Especially with this development activity what we started now, it's all the more important. You've seen our EPC share has gone from 20% to 27% in 1 quarter.

Two largest orders what we announced in the last 1 1 1/2 month are of EPC, both Brightnight and ArcelorMittal. That's not an issue for us, and especially that our more of a concentration on the C&I segment, which is our 51% of the share, I don't see this is going to be an issue.

I know people calculate 6.4 GW, maybe they just have up to FY28. What is going to happen to Suzlon if they get a single order in the next 24 months?

Kya ho jayega company ko? Aisa nahi hoga na.

Every quarter, we will keep getting orders more than

what we supply.

We'll constantly have a good healthy order book at the end of the quarter.

Yes, sir. That's quite reassuring, sir.

Sir, Rahul sir, I have a question on our tax rate. We have created a DTA.

I do understand that we will not be having any kind of cash outflow, and we do have a ₹14,000 crore of carry forward losses. I would like to understand what would be in the future for P&L, how much effective tax rate would be shown in the P&L?

I would like to understand that, sir.

The way to look at it also, Nikhil, is that once all of these deferred tax assets that we have are fully recognized, your effective tax rate, cash or non-cash, should come to 25% because that's the regime that you're in.

Yes, sir. I do understand that.

Simple answer in that sense.

Yes, but sir, currently because we have accumulated losses, we will be able to utilize that in the coming years too and currently too?

The way it works is that the accountants will actually do an assessment sometimes on an annual basis and sometimes on a semiannual basis where based on your future projections to be looked at, it will consider whether there is DTA losses that were earlier not let's say allowed to be set off will now be set off, and based on that an assessment is done annually. Again, I would say that there are certain others which are not on the book as of now.

An assessment will happen at the March end also, there would be something that comes through again.

Nikhil, simple way, non-complicated, non-finance person, what I understand is is simple. Even as on today, we still have ₹1,100 crore more deferred tax asset sitting in our bank, okay?

Even if you don't recognize anything further, up to ₹4,400 crore of cumulative profit from now on what we get, we will pay single rupee of tax. We will not pay single rupee of tax, okay?

That's one part of it. Even after whatever happened in quarter 3, we still have that much sitting in our bank.

I can keep drawing that, okay? That's what I I only ask my CFO, "CFO, can I draw?"

I want to understand what I can draw, okay? Now "Main kitna kama sakta hoon?"

is my second question. Even after this, we still have about 6 1/2 thousand crore of carry forward losses.

At different points of time, the auditors will look at it. They look at 3 years ahead, and they'll keep adding to my bank account.

Okay? Therefore, this what I have 1,100, I'm assuming that it will keep increasing, and they did last quarter, and my expectation is that they will do again in the coming quarter towards the March-ending quarter.

I'm assuming that this 1,100 kitty what I have in my bank in my simple language will further go up. My bank balance will increase.

That's my understanding of all these complicated DTA rules and all, okay? This is what matters to me as a CEO.

Yes, sir. Thank you, sir.

That's it from my side, and all the very best, sir.

Thank you.

Hi sir, thanks for the opportunity. Just one question.

In terms of I think in the call you had mentioned some AI enabling in wind turbines going ahead. Can you just help us understand what you are kind of trying to do and what are the developments in that space that you are looking at?

Yeah.

This is again layman explanation. Previously it was finance, this is technology, okay?

My only understanding of AI, what we're going to use is that my entire OMS system is going to get digitized, okay? Therefore, our predictive maintenance, preventive maintenance, and everything can be tracked, and which turbine, when, and how long it's there down popping up.

Therefore, it actually improves our uptime because of the data, because constantly we keep getting data analyzing and it's throwing up this. It reduces our cost because it is telling me the predictive maintenance much before actually the system fails.

Therefore, we can act in that. I think significantly that is what we're looking at it.

If today we are at 96.1% of availability, how do we go towards 97%, 97.5%, 98% is one. Second thing is today I'm at 40% EBITDA margin, first how do I not just sustain, can I increase this margin?

This is what AI would help me. Otherwise, my saver will say, "Sir, ye karenge, woh karenge."

End result is this.

I think, and that's very helpful. Okay.

Thanks a lot, and all the best.

I think having coughed all along anyway, let me say that thank you very much for bearing with my cough, and not able to give that opening comments, and I'm sorry, but I didn't want to miss this call. It's extremely important for me.

I'll just go back home the moment this call is done. Not as a CEO, I personally feel that it was a great set of quarter for us in the constraints what we know, as I said that offtake of turbines and various things.

I standing here pretty confident, I reiterate that the guidance what we gave stands, absolutely no change. In fact, last quarter, some of you asked me that are we going to revise upwards?

I said no. Some of you are asking now, will you revise it downwards?

I'm again saying no. We will maintain the 60% guidance completely.

The third take is that the orders is not an issue. This issue of DTA and people not understanding sales price impacting up and down will still continue to be there.

Next quarter, we will have a huge amount of DTA asset coming in. Our net profits suddenly jump, and people will say 300% profit improved, okay?

I think and these things would keep happening, but you people understand that what is the meaning of all this. Having said that, we are open.

At any point of time, my colleagues or me for to discuss on any industry-level issue or as well as anything specific is bothering you on Suzlon. Thank you very much.

Thank you, everyone.