Solex Energy Limited ($SOLEX)

Ladies and gentlemen, good day, and welcome to the Q4 and FY '26 Earnings Conference Call of Solex Energy Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Hiral Keniya from EY. Thank you, and over to you.

Thank you, Yashswi. On behalf of Solex Energy Limited, I welcome you all to the company's Q4 and FY '26 earnings conference call. To discuss the performance of the company, we have with us from the management team, Mr. Chetan Shah, Chairman and Managing Director; Mr. Vipul Shah, Non-Executive Director; and Mr. Hemal Kachiwala, CFO. Before we proceed with this call, I would like to draw your attention to the fact that today's discussion may contain forward-looking statements that are subject to various risks, uncertainties and other factors, which will be beyond management's control. We kindly request to bear in your mind that there might be some uncertainty while interpreting such statements. We will now start the session with opening remarks from the management team. Afterwards, we would open the floor for an interactive Q&A session. I would now hand over the conference call to Mr. Chetan Shah for his opening remarks. Thank you, and over to you, sir.

Thank you, Hiral, and very good morning to everyone, and thank you all for connecting with us for Solex Energy Limited's Q4 and FY '26 Earnings Con Call. Solex Energy delivered an exceptional performance in financial year 2026, solidifying its status as one of India's fastest-growing integrated solar energy companies. The company achieved a remarkable 144% year-on-year revenue growth, demonstrating its ability to scale operations while maintaining high standards of quality and efficiency. Operational excellence remains as a core strength with over 200 EPC projects executed across diverse sectors, supported by a robust logistics and procurement network. Achieving zero defect metrics highlights the maturity of our processes and unwavering commitment to quality. Strategic investment in advanced technologies like TOPCon modules position Solex Energy to capitalize on growing demand for high-efficiency solar solutions domestically and internationally. During quarter 4 FY '26, Solex Energy Limited secured a significant work order from a leading independent power producer for the supply of N-Type TOPCon 615 Wp to 620 Wp glass-to-glass G12R solar PV modules with a local contract value of INR 2,760 million. The company is on track to execute this order with the completion expected by the end of May 2026. From a financial standpoint, our performance reflects strong discipline and efficiency. Solex Energy generated a net cash flow from operating activities of INR 2,007 million as on March 31, 2026. Our working capital cycle improved significantly to approximately 35 days in financial year '26, down from 61 days in financial year '25. This indicates enhanced operational ability. At the same time, our net debt-to-equity ratio remains comfortably positioned at 0.57 against 1. The strength of our balance sheet is further reinforced by a robust return ratio with ROE at 38.4% and ROCE at 31.7% as on March 31, 2026. Financial year '26 marks a pivotal year as Solex transitioned from manufacturing-centric firm to a fully integrated clean energy enterprise with global ambitions. We are targeting a top line of INR 26,000 million for financial year '27 with a PAT margin in the range of 6% to 8% as we continue to scale responsibly while maintaining profitability. We have begun FY '27 with a defining strategic milestone with the signing of the INR 4,000 crores, that is INR 40,000 million MOU with the government of Gujarat. This reflects our clear intent to deepen backward integration and contribute meaningfully to India's renewable energy self-reliance. The phase-wise planned development of 5 gigawatt solar cell and 10 gigawatt of battery energy storage system, BESS, manufacturing facilities will strengthen our supply chain control and significantly enhance our competitiveness in a rapidly evolving energy landscape. With a robust order book visibility of exceeding INR 34,000 million, strong financial momentum along with a healthy balance sheet strength and expanding global footprint and a continued focus on innovation and digitalization, we are confident in our ability to sustain high growth trajectories while delivering long-term value for our stakeholders. I will now hand it over to our CFO, Hemal Kachiwala, to detail overview of the Q4 FY '26 financial performance. Thank you, shareholders.

Thank you, Chetan sir. Good morning all. Let me briefly walk you through the financial performance of Q4 and financial year 2026. For financial year '26, total revenue stood at INR 16,211 million, registering a robust growth of 144% year-on-year. EBITDA grew by 134.6% year-on-year to INR 1,867 million. EBITDA margin stood at 11.5% during the year. PAT surged exponentially by 132.7% year-to-year to INR 983 million. PAT margin stood at 6,1% during the year. Highlighting our Q4 financial year '26 performance, our total revenue stood at INR 8,858 million, reflecting an exponential growth of 247.6% year-on-year, driven by improved execution and demand traction. EBITDA increased by 246.1% year-on-year to INR 986 million. EBITDA margin stood at 11.1%. PAT grew by 289.4% year-on-year to INR 589 million. PAT margin expanded by 71 bps during the quarter at 6.6 percentage. Our balance sheet remains firmly aligned with our growth and expansion ambitions. We are continuing to prioritize disciplined capital allocation, efficient working capital management and a strong focus on the manufacturing integrations, enabling us to drive the next phase of sustainable growth in the coming years. With that, we open the floor for the questions.

[Operator Instructions] We will take our first question from the line of Sahil [indiscernible] from Anand Rathi Institutional Equities.

Congratulations on the great set of numbers. Sir, in your opening remarks, you mentioned about the INR 4,000 crore MOU with the Government of Gujarat. Could you provide any specifics on that MOU?

So basically, these are parts of our backward integration plan which we have already announced that we were to do -- go forward 10 gigawatt of module, 10 gigawatt of solar cells, 2 gigawatt of wafer and ingot and 10 gigawatt of BESS. This is what we have already announced previously. So this MOU is a part of that expansion in terms of the cell manufacturing and BESS. So basically the 5 gigawatt cell manufacturing, TOPCon plus EPD cells that we are planning to setup a line here in 2 phases, which is 2 gigawatt and 3 gigawatt and 10 gigawatt of BESS in -- most likely in 2 phases of 5 plus 5. So this is what the announcement that which we have done and as a part of that announcement, this MOU was signed so that we can start applying for the approvals and the other processes.

So sir, are we getting the kind of subsidized rate for the land or the utilities required for the plant from the government?

No. So basically, land -- we are going for a freehold land. So we are not going for the government land. So there is no subsidy available for the purchase of land. There are subsidies available for the manufacturing under that electronic policy scheme, so we will apply for that for the CapEx.

Okay. Got it. Sir, my second question would be many of our peers have noted quite a sharp EBITDA contraction during this quarter, raising concerns that due to -- mainly due to raw material inflation. What is our view on -- where do you see the raw material prices going from here and how much inventory do we hold to hedge against this rising cost?

So basically, as far as the raw material costs are concerned, it is mainly because of the current -- I mean, this situation arise because of the current geopolitical conditions, mainly it is the logistics cost which has increased, impacted raw material price. There are some raw materials dependent on crude oil. So there is an impact on those raw materials like EVA and [indiscernible], anything which is made of plastics or any material which is made from the [indiscernible]. So we are still watching this. We do have some arrangement with our vendors for certain period. But the way dollar and other situations are changing, I think for every phase of orders we are going back to our client, there are certain orders which are already linked to the dollar, where we do have immunity from the dollar-INR imbalance. And there are certain raw materials where we have arrangement with our vendors for the price [indiscernible]. But yes, the current situation is so uncertain. So we are in constant touch with our clients regarding any uncontrollable price increase.

Next question is from the line of [ Ayush Agarwal ] from MAPL Value Investing Fund.

I had a similar question on the raw material side. We have seen a lot of module players getting affected because of it. Any reason why this quarter or this half year, we did not get affected as much? And how are you seeing this for the next half year?

Yes. So basically, first H1 -- for the quarter, this quarter, we do already -- we are secure with the inventory supply chain. But yes, quarter 2 will -- anyway that will be a monsoon season here. So -- and still we are waiting for some clarity in terms of the logistics majorly because it is coming from the Southeast Asian countries. And there are no major logistic [indiscernible] except for the cost. So we have -- we are keeping an eye on the supply chain on quarter 2. But overall for the year, we have clear visibility in terms of the supply chain except for some uncontrollable situation arises for the second half of the year. But we are very positive on this that the current situation will get settled in a few months and then the second half will be as what we have planned and expected. But yes, first half -- first quarter is -- Q1 is secured with the supply chain. Q2, anyway it will be a monsoon season, but still we are working very hard to secure supply chain with controlled price from our vendors.

[indiscernible] majorly, what kind of impact are we seeing from that? And are we also trying to bring in some efficiency where the input of silver goes down in our modules...

Can you repeat? Your voice is not clear. Can you repeat your question?

Ayush, can you use the handset mode, please.

Sir, I was asking that given the rise in silver prices, a lot of module companies are trying to reduce the silver input in module. Are we also trying to do something like that?

So basically, there are no proven replacements of silver as of now. There are -- people are shifting to copper to replace the dependency on silver in [indiscernible], but there are tests yet to be conducted on those things because when we talk about 30 years product performance warranty, it has to pass -- go through under rigorous tests for the various climatic conditions. And those tests are still likely in process. Once we get result, the industry will adopt replacement of silver to copper. But -- I mean the industry is quite hopeful that those tests will pass all the criteria and very strict climatic conditions and it will help to bring down the cost because the conductivity of silver and copper is different. So it is match the quality standards also -- expected quality standards. It's not just replacement of silver to copper. It has to comply with all the other quality standards as well. So those tests are going on, and we are looking forward to have research...

So very fair to -- as a result of the rise in input costs, have you also seen prices of module going up in the domestic market? Both DCR or non-DCR?.

Yes. So when it comes to the INR prices, yes, it will go up just for the 2 reasons, one is the dollar, which has now -- it is INR 96 plus now. So we are [indiscernible] most of our orders as far as the dollar is concerned. And as far as the raw material cost is concerned, if that goes up, then also we have [indiscernible] I mean, mainly from the solar cell prices, we are secured. We too have immunity from that.

So any percentage that you can share that 10%, 15%, maybe more, that module prices have gone up in domestic market?

Situation is uncertain. So it is too difficult to base any numbers. So basically, people are -- our customers are also taking the call at appropriate time just to close at prevailing prices. So it's too difficult to predict any price. But yes, prices are going up for sure. And currently, the modules are being sold at INR 13.5, INR 14 per watt peak in India, non-DCR, which can go up to INR 16 considering the current situation.

I have two questions on cells. Can I ask them right now?

Go ahead Ayush.

So sir, the first question on the cell side is that given the June '26 time line of ALMM on cell. That's very aggressive. I don't think India will have enough capacity of cell by then. So in that situation, how forcefully do you think that the MNRE and government will enforce the June '26 rule on DCR modules and what will happen in that case according to you?

Yes. So we are prepared for both the situations. Our group of module manufactures have already presented to the Government of India through the various channels for the extension of imposition of ALCM and you're right, there is constraint in terms of the supply for the domestically manufactured cells. And most of the cell lines are still under construction and it will take some time. So government is also monitoring the situation and they will take -- we are hopeful that they will take appropriate call in advance. But at the Solex right now, we are prepared for all the situations. First thing is there are even -- after imposition of ALCM, there are certain orders that we have, which are the ALMM compliant orders. So no need to procure domestically manufactured cells to service those orders. So we are secured with the supply chain -- import of solar cells and manufactures, ALMM compliant module. That is one. Number two is, we do have arrangement with existing domestic cell manufacturers for the ALCM compliant modules. So those orders with ALCM, we do have a supply arrangement with those domestic manufactures so that we will be able to procure cells from them and we will manufacture [indiscernible] in our factory. Both the things that we have done in proper arrangement and secure with that situation. As far as ALCM is concerned, I do agree with you that it should be extended and appropriately [indiscernible].

Understood. Sir, final question on cell is that by when do you think our cells [indiscernible] will come online and initially when we have seen is that there are a lot of [indiscernible] issues because it is not an easy technology. So if you can share some thoughts on if any senior person we would have hired from the industry or our Chinese supplier helping us or what is our strategy to commission the line on time and also get the right output.

Yes. So just to handle this situation like in terms of the know-how, in terms of the complex technology of TOPCon, basically we do have a very senior team already in place, experienced team in place right now. And apart from that, as per our last con call also, we have tied up with one of very professional cell manufacturers of TOPCon technology. He will be onboarded -- because in terms of the designing of line, construction of a facility and operation of facility. So they know the manufacturing of TOPCon. So they will help us in terms of manufacturing, in terms of process control, in terms of minimizing the wastages and achieving the highest efficiency of the cells. So what they do in their facility, they know -- they will be [indiscernible] whatever they've achieved. They will impart those knowledge in our facility also and they will train our own man power as well. So this is a very robust arrangement that we have. It is all [indiscernible] arrangement that we have. So we have also handled the secured [indiscernible] of the complexity of the technology in terms of the manufacturing those solar cells. We are secured on that front.

Just one follow-up, sir, on this. This is very helpful what you shared. So what we generally have observed is that the utility side is also very difficult to scale. So just one follow-up on the last part is that the commissioning time line in your own opinion, that's reasonable time line? And second, on the utility side also because that is also not easy to scale for cell.

Yes. So utility is a very big challenge in India because of our compliancies and laws also. So we are continuously monitoring the situation and the challenges which are faced by our existing cell manufactures out of the commissioned lines. As Solex, we do have a very robust know-how from the experts those who are manufacturing cells at very large scale outside India. And their scale is almost to that 100 gigawatt individually. So they are very efficiently managing the utilities. Indian conditions are different compared to their country. So basically, we are also incorporating the Indian conditions in those experiences and we have designed our utility. So -- I mean, we are more concerned about efficiency and operational part of the utility and we have to focus on that. We are not ignoring any of the area as far as the utility is concerned. We are also securing the sufficient supply of water because water is the main -- a very important material which is needed in manufacturing of cells. So that is also we have secured. So I think learning from other's experiences, we have created a system, we have designed our plant in such a way that we don't [indiscernible].

And finally on the timeline, what is the reasonable timeline?

So that is by the end of 2027. The current situation is so dire because of the availability of technology, equipment, and everything. So last quarter of 2027, we'll be able to operationalize our first phase of cell line which is 2.3 gigawatts.

Q4 FY '27.

'27, yes. Q4.

Okay. Got it.

Yes. So Q4 '27 is December. So it is by December of 2027 just to repeat, it will be official.

[Operator Instructions] We'll take our next question from [ Via Gen ], an individual investor.

We can take another one.

We'll take our next question from [ Shishti Kapur ], an individual investor.

Sir, I have a couple of questions. Sir, just wanted to understand what margin benefits can we expect from the backward integration into cells, wafers and battery energy storage systems.

So like BESS, I don't think so. We should -- but we have estimates as of now. But with the cell line, we are targeting around [ 25% or 15% ]. BESS is a totally independent business. It has -- it's not -- have a full integration for the solar module. BESS is independent which is a battery energy storage system. So it has like 20 gigawatt orders already awarded in India right now, for the BSS. And the 30 gigawatt orders are being prepared and on the verge of execution of awards. So, basically, we do have -- India has a very clear visibility for the 50 gigawatts to be completed in the coming 24 months which is a good enough business. So the battery, BESS will have independent numbers once come up with a final plan for BESS. As far as cell and module, I had already mentioned that. It will be somewhere about 15%. BESS, again, we are planning to have a separate subsidiary for BESS.

Okay. And sir, just wanted to understand, can you give any ballpark target range for debt to equity going forward?

Like we always mentioned in various calls, there's about 1,050-odd [indiscernible] will be from the principal debt for lenders and 350 crores will be from equity.

And with the upcoming CapEx, how is the leverage going to be changed. How can we expect it to change as we had already planned the CapEx, right?

So maybe below 4 with the cell line. Even upon TNW, will be below 4. So it's not the debt equity but it's the total outside liability.

We have [ Via Gen ] again on the call.

So just on the cell capacity, because you mentioned you were planning to commercialize by the end of December. What sort of additional EBITDA can we expect due to this?

There will be more than 20% for FY 2029. We had been reasonable in this estimate. So what we have done reducing sale price productivity at the current rate. At the same time, we have taken the current manufacturing cost also. And we have estimated that this should be the proposed EBITDA.

So this is just for FY '29. Once we expect this to completely stabilize and optimally utilize. So what sort of EBITDA can we expect for FY '28?

FY '28 is -- so this is in line with our existing EBITDA because cell will not contribute mainly into it. So this is a...

No. FY '28 will have the cell capacity, right?

FY '28 will ram up in everything and will be going on. So, yes, we'll not have a full year of efficiency of cell line in FY '28.

Okay. So we can just expect some improvement and major improvement from FY '29 onwards.

Yes.

Okay. And sir, this current module capacity that we have, what would be the utilization for Q4?

Q4 will be like the -- last year, you're seeing what the estimate was...

Yes. Solar. FY '26, what sort of utilization did we achieve for the module capacity?

It was around 70%.

It was around 70%.

Yes.

Okay. And in terms of volume, sir, if you could just -- how much megawatt have we sold for module if you could just provide that for FY '26?

What did you -- Q4?

No. In the FY '26 Q4, yes.

FY '26, it cost -- 1 gigawatt.

1 plus gigawatt, right?

Because line 3 and 4 of the operation were only -- in the last -- we could achieve the full pledged ramp up in the last quarter.

Okay. And sir, just in terms of pipeline, what sort of order inflows are we expecting for FY '27? How is the visibility if you could just elaborate a bit more on that?

So we have an order book of almost INR 3,400 crores, which is split in 3 parts. One is the confirmed POS. Second is where the MSAs have been signed. And the third are the advanced stage. So at present, we have an order visit of INR 3,400 crores.

And sir, I was asking in terms of future pipeline that we are bidding at. What sort of order inflow are we looking at for FY '27? INR 3,400 crores is the current order book. What sort of additional orders are we looking at for FY '27?

We are closing these orders. So once we sign the MSA, then the next part is the finalizing the delivery time line and the price negotiation. And the new orders keep on coming up. So this -- currently, so we are executing these orders and simultaneously, we are adding new ones, right? And so it was INR 3,400 crores.

Next question is from [ Ankur Nahar ], an individual investor.

Sir, as a common consumer, I was seeing that all the solar installations are not showing any kind of brand visibility for any of the brands right now. So if I see any installation on any of the roof, I cannot identify which solar brand is it. So has Solex considered like displaying their brand name or logo on rooftop and utility installations?

Let's see. It is basically for our utility scale projects, we display our brand name in front of entry of plant. As far as the brand visibility for the end customers or model customers are concerned, it is their call and I have not seen that trend in the industry that people display model brand name because they use multi-brand products like inverter they use for X brand, model they use for the Y brand. So they cannot display all the brands in front of the brand. So -- but yes, for the Solex EPC company, we display our brand in front of our projects. As far as the rooftop is concerned, it's very complex. It is third-party premises and then some customers, they may allow the customer. It is totally like customers' decision whether to allow any vendor to display their brand name or not.

Despite the strong revenue growth, if you see the EBITDA margins, they were relatively low, below peers like as when we compare to the peers. So what are the key reasons for this gap? And what steps are being taken to improve margins over the next 2, 3 years?

So basically, we cannot comment on the margins of other peer company, other module manufacturers because if you look at the numbers of the different manufacturers, it is -- there is no particular trend that you will be able to see. But Solex is a growing company. We are growing so fast. We are -- continuously we are expanding and we are adding our capacity. So -- and we are improving our margins also slowly. But, I mean, that is what I can say. But I cannot compare our margins with other peer company because -- I mean there are no standard benchmark numbers from the group of manufactures.

And my last question, like what utilization levels do you expect in FY '27 as new capacities are ramping up?

So we don't -- have been very much conservative for this current financial year. And so this -- the numbers what we have given is very conservative. So 2,600 visibility what we are giving is considering 55% of the CapEx utilization. So I think we comfortably we should cross this. So on the safer side, we have considered 55% of the CapEx will be utilized.

Next question is from Vatsal Mehta from Money Bee.

So my first question is related to the land acquisition. So from what I understand is there was some due diligence going on for the 60-, 70-odd acres of land which we were going to acquire. So any update on that?

Yes, we are waiting for the connectivity approvals and all. So it is all in advanced stage. And there are so many steps that we have to go through. So once we have those approvals on with us, we will start the construction process. Connectivity is power.

Okay. So any expected time line by which we can expect this?

I think we are expecting soon, maybe around another 45 days, we should get those approvals.

So before 30th June, we plan to close.

Okay. And another question is related to the term sheet. So we were going to get INR 350-odd crores from NCD and CCD. So what's the update on that?

So we have got the term sheet, the due diligence and legal due diligence is under process.

Okay. So any expected time line for that?

Yes, maybe by this 15th of June to 30th of June, we plan to close it.

Okay. And is it possible for you to give the breakup of the amount in CCD and NCD, the breakup of that?

Right around INR 200 crores for NCD and INR 150 crore of CCD.

Next question is from [ Genak Mike ], an individual investor.

Congratulations on a very good performance. So just on the same lines, the company reported a very good Q4 growth, which is sharp acceleration from the past half and all. Looking at the run rate in March, was this Q4 performance driven by bunching up a deal completions at the year-end or it's going to be sustainable from here?

So right now, in our case, mainly with IPS. And last year, the [ moonsoon ] was for 6 months. A lot of the -- even upon the moonsoon, the ground ready for installation or not. So generally, what we have seen in the several years, the last quarter or the last half year is where you see the real traction. So for solar industry comparing quarter-on-quarter, like first quarter, second quarter are on the lower side and third and fourth quarter are on the higher side. So we feel almost similar trend to continue for this year also.

Sure. Last question, can you just give me some highlights on the cash flow, please?

So cash flow like you get from the operating and the breakups like cash flow breakups? The cash flow is the -- part of the published account. So if we can ask specific questions on it, it will be more helpful. We publish our cash flow state.

Next question is from [ Adubi Kazikhur ], an individual investor.

Just clarification related question. I think our 1,500 megawatt of MONO PERC line was operational through the full year. What was the utilization in FY '26 full year for that line?

MONO PERC is only 700, the rest is stock part.

Okay. Okay. Got it. So 700 was operational through the year, no? So only 2,500 started on November '25. The rest was operational through the year, right?

There is a correction, like 1.5 is not a MONO PERC, 700 is a MONO PERC capacity and out of that 700, we'll tell you what was the utilization. We have 4 production lines. One is MONO PERC which is 700 megawatt, the rest is TOPCon. So MONO PERC, utilization was around 35% and TOPCon was 62%.

TOPCon was 62%. Okay. 62% basically includes -- and then there was a line which came on stream in November '25, right? So it was operation maybe only for 3 months. So during those 3 months, also you are saying it operated at 62%?

No. It's ramped up. So like it started with 40% and 51% and last March was 81%. So both line and -- line 3 and 4 would be positive. So numbers which we are giving is every variation. Every quarter has different numbers. Last quarter is a way high -- this time we have taken more...

Got it. And in the next year, you mentioned you've taken 55% as the number.

Yes. And this is on conservative sides.

Sorry. I didn't heard that.

So this is a very conservative number. So it is better to be conservative and then outperform it. So this is what is on a very conservative side.

Just another accounting question. Out of your total other income of INR 31 million, was there any subsidy that we earned or this year, there was no subsidy income?

There was a subsidy income. Around INR 80 lakhs is subsidiary income -- subsidy income.

Sorry, INR 89 lakhs?

INR 80 lakhs.

INR 80 lakhs. Okay. And what's the breakup between EPC and modules for sales...

Mainly -- so major business of EPC was in the subsidiary. There was only around INR 10 crores to INR 15 crores of the income in the holding and then [indiscernible] for the maintenance business of the existing project. Yes. The existing projects which are going on. Total EPC is INR 125 crores.

INR 125 crores. Okay. And I assume next year also it will be in the similar range, I believe, right, because that sort of grow steadily.

INR 125 crores, INR 150 crores. So that INR 2,600 crores includes this number.

Next question is from [ Rahul Kei ], an individual investor.

So sir, I just wanted to understand on the aspirational revenue growth that you have mentioned, right? So I think the last quarter, it was around -- sorry, INR 3,300 crores. And now this quarter, you are mentioning it is INR 2,600 crores. So I assume is it only because it is -- you wanted to be conservative or is there any decrease?

No, sir. This is only to be conservative. The geopolitical condition is quite uncertain. So we have to be very cautious about this.

Next question is from Mihir Dhami from Augmenta.

Sir, in Q4, what were the modules and what was their utilization?

Mihir, can you repeat your question, please.

Yes, sir. I was asking in Q4, what were the modules and their utilization?

The module sale is INR 885 crores in Q4.

This is the concentrated number but I think -- just a minute. We'll give it a break. Any other question in the meanwhile?

Next question is from [ Vigira Solenti ], an individual investor.

I want to ask one question. Does Solex Energy is also from Surat-based and KP is also Surat-based. And I saw -- I also know that [indiscernible] a very good brands. [indiscernible] is 30 years. So we have, I think, INR 3,000 crores of order book. So how many orders are from KP Group?

So last year, we have already executed the order which we got from them. This year also we are in discussion with them. And -- so I mean, whatever the order book they have, we are checking the execution pipeline, the availability of our capacity also because we do have other orders also in India. So now, once we have some closure from them, KP Group, we will definitely announce it. But in terms of numbers, it is too early to comment for the orders from the KP. But yes, we are working very closely on the solar journey. So we will have some orders coming in from the KP Group as well.

Okay. My second question is on our return ratio. Our return ratio has significantly improved and our working capital has also significantly improved. So what drives this return ratio and working capital improvement? Because for any organization, I think this ratio and this working capital days improvement is very good for any organization. So I'm congratulating on that, and I'm also -- what some factory which factor this time is good numbers?

As you said, because the return -- the reason for the return of investment is whatever CapEx is done is done. And now will be maximum utilization. So -- and the additional on the profitability. So that is adding on the return ration while the working capital with the scale and everything, we have been able to manage the overall working capital cycle. And so we target to maintain -- continue to maintain this. So mainly because of optimization plus working closely with the creditors, and this is overall, we have managed the working capital. But what you have seen are the quarter numbers. So throughout the years, it has been more efficient. Last quarter, you'll see because of the increase of season and everything, the overall -- but largely, you maintain this number.

Yes. We have that number. Out of the total sales of INR 885 crores, INR 839 crores is from modules and INR 46 crores is from the EPC in the last quarter. There is a question [indiscernible] so you know this is the answer to that.

Thank you so much, sir. As there are no further questions, we'll end the call. On behalf of Solex Energy Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you. Thank you, everyone.