Waaree Renewable Technologies Limited (WAAREERTL.BO) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Waaree Renewable Technologies Limited Conference Call hosted by MUFG Intime India Private Limited. [Operator Instructions] I now hand the conference over to Mr. [ Prathamesh Parab ] from MUFG Intime India Limited. Thank you, and over to you, Mr. Prathamesh.

Thank you, Ekra. Good afternoon, ladies and gentlemen. I welcome you all to the Q2 and H1 FY '26 Earnings Conference Call of Waaree Renewable Technologies Limited. Today on the call, we have from management Mr. Manmohan Sharma, Chief Financial Officer; Mr. Abhishek Pareek, Group Head Finance; Mr. Neeraj Vinayak, Vice President, Investor Relations; and Mr. Rohit Wade, General Manager, Investor Relations. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would like to hand over the call to Mr. Manmohan Sharma for his opening remarks, and then we open the floor for Q&A. Thank you, and over to you, sir.

Thank you, Prathamesh. Good afternoon, everyone. I would like to extend a warm welcome to all participants for joining the earnings conference call of Waaree Renewable Technologies Limited to discuss our business performance for Q2 and H1 FY 2026. I hope you all had an opportunity to review our financial results and investor presentation, which has been made available on stock exchange and are uploaded on the company's website. I would like to commence by showing my sincere gratitude to all our stakeholders for their unwavering trust and support. Your continued confidence in our vision and execution has played an important role in shaping our journey so far. Today on the call, I have along with me the key members of our management team. Starting with our financial results, we are pleased to report the highest ever quarterly revenue and PAT in Q2 FY 2026. Our revenue from operations stood at INR 774.78 crores, a growth of 47.73% over the same period of last year. EBITDA comes in at INR 157.94 crores, up 120.69% year-on-year. EBITDA margin for the quarter stood at 20.39% versus 13.65% for the same period last year. PAT reached to INR 116.34 crores, marking a 117.4% increase against Q2 FY 2025. For the first half of FY 2026, we recorded total revenue from operations of INR 1,377.97 crores, up 81.12% compared to H1 FY 2025. EBITDA for first 6 months stood at INR 275.48 crores, reflecting a growth of 144.56% year-on-year basis. And the PAT comes in at INR 202.73 crores, up 148.21% year-on-year basis. These results underscore our consistent performance and strong operating leverage for the current financial year. Our unexecuted order book remained healthy at 3.48 gigawatt peak, giving us solid visibility for the upcoming quarters. During H1, we executed 1,621-megawatt peak of EPC projects, which even exceeds our full year execution of FY 2025, reinforcing our execution capability and enabling us to sustain our leadership in India's EPC space. Let me now turn to the broader industry development that are shaping our operating environment. India's renewable energy momentum continues to accelerate with non-fossil fuel capacity now exceeding 250 gigawatts, a significant milestone that puts the country more than halfway target its 2030 target of 500 gigawatts. As of September 2025, India's cumulative solar capacity stands at 127.33 gigawatt with ground-mounted projects contributing 97.15 gigawatts, rooftop solar at 21.52 gigawatt, hybrid installation at 3.26 gigawatts and off-grid system at 5.40 gigawatts. Importantly, rooftop and open access system now accounts for over 20% of installed capacity driven by flagship program like PM Surya Ghar Muft Bijli Yojana and PM-KUSUM Yojana, which target for 34.8 gigawatts by March 2026. Looking at the policy update, the recent GST reduction on solar modules from 12% to 5% is expected to result in decreased capital expenditure, making it a good investment opportunity, further reinforcing solar energy as the lowest cost of energy. Policy tailwinds and reduction in GST on solar module, coupled with ambitious national target of 500 gigawatt by 2030 are expected to boost a strong pipeline of utility scale and C&I customers. This will further driven the EPC demand. With growing solar installed base and project executed by us, O&M segment is emerging as a major growth opportunity for the company. With increased requirement of storage and growing operative of hybrid projects, the demand of efficient, reliable and technology-driven O&M services will further increase. At Waaree Renewable Technologies, we continue to leverage our integrated expertise and execution strength to stay ahead in a dynamic market. With a strong order book, expanding footprint and supportive policy environment, we are well positioned to drive growth across emerging segments. As we look ahead, we believe that the competitive advantage will depend majorly on three critical pillars: operational efficiency, superior quality and the ability to deliver integrated and end-to-end facilities. In this evolving landscape, we find ourselves not just compatible but also position in the market to take all kind of opportunities in the EPC segment. We are excited about the opportunity ahead, and we remain committed to driving the sustainable growth in the renewable energy landscape and creating long-term value for our stakeholders. Thank you for your continued support. We may now open the floor for questions.

[Operator Instructions] The first question is from the line of Aritra Banerjee from Nomura.

So congratulations on fantastic quarter, sir. Sir, my first question is regarding your margin outlook. So we have seen a very strong uptick in margins and margins are very healthy currently. So going forward, do you see these levels of margins sustainable? Or what would you term as a stable rate of margins going forward?

So we have already addressed this margin point in various communications. So the margin where we are comfortable is around 15%. But with the operational efficiency, tight budgeting control, monitoring all projects on a real-time basis, we are able to get this kind of margins. So with the available order book, whatever we have, we expect that margin will remain in the range of more than 15%.

Right. So this you're talking about FY '26, like more than 15% margin?

Yes, yes, for the entire financial year. Whatever we have done so far, plus for the balance year, we expect that it should be around 15%.

Got it. Got it, sir. Sir, my second question is regarding the ALMM List-II. So as you know that there has been a bit of an extension provided to the developers with the implementation of ALMM List-II. So do you foresee any delay or booking of orders basis that, because I heard there were some delays in PPA signing going on since the extension has been provided. So do you see any headwind coming from that extension?

So as far as -- as a company, we are concerned for the -- H1 itself, we have booked order worth of 1.8 gigawatts. So we started last quarter with 3.15 gigawatts peak. After execution of around 900-megawatt peak, we are -- our total position is 3.48 gigawatt as of now. So looking at the entire market of the solar, with the government ambitious plan to have it by 500 by 2030, definitely, we are in a good shape, in the right space. So they're more and more likely to flow in this.

Also to add up, Aritra, to your question, if you look at ALMM II, the list which has recently come out and government reaffirmed the timelines, with some window being allowed to the developer community from December last year to September this year. But in our case, since most of the contracts are signed off and majority of cases PPAs are already in place, so they're not affected due to the change in our -- given the fact this window has come up, they're not much affected with this change.

Got it. Got it, sir. And sir, my final question would be regarding the order book position. So could you give a color regarding the split of order book on the domestic and on overseas basis? And reason I'm asking this question is because regarding the geopolitical tensions and the trade uncertainties going at the overseas level, sir, do you see any kind of headwinds arising for our business going forward?

So as of now, we are the domestic EPC, all the orders which are executing as of now, 3.48 gigawatts which are there in our hand are all domestic orders. Of course, we are looking at any kind of opportunity which may come up in the future for the international space also. We are actively looking. But as of now, to answer your question, we are -- as of now, whatever orders are there, were of domestic.

The next question is from the line of Anupam Goswami from SUD Life.

Sir, my first question on the -- if you can give us a slight margin idea on rooftop as well as our domestic EPC. And now that you are mentioning about 15% margin, going a little forward, let's say, FY '27, given the scenario, what sort of margin do you -- can we command [ EPC ] years margin at a quite lower level. Are we -- if we increase or scale up, are we going to reduce our margins due to the competition or so?

No. As of now, the first question of yours, like we have all -- majority of the revenue is coming from the ground-mounted because the ground-mounted this project have large capacity, they can be scaled up to 1 gigawatt or 2 gigawatts kind of projects. So that is one part. Secondly, the maximum margin is coming from this operational efficiency. So as we scale up our operations, there are a lot of things which comes as a driver for our growth and improving our margins. So whatever the base margin figure, 15% which we are reporting. But the improvement is always there. So with the scale, timely execution with the budget tightly controlled, et cetera, these all factors comes in. Therefore, you are seeing the margin of 20% in this quarter, EBITDA margin.

But sir, you mentioned 15%. So are we going to have a lower margin in the second half due to more of EPC order?

It is nothing like that, whatever, we are not giving -- over a period of time, it will get reduced, et cetera. But the order book, which are there in our hand, all kind of like fixed-price contracts. So -- and while we are executing the orders, we have already seen and prepared the budget for the -- for all kind projects. So as of now, we are not giving full year guidance that it should be in the same range or like that, but we are comfortable with the 15% margin what we are stating.

Okay. So the current order book also has a sort of 15% sort of margin actually, should we take that?

Yes. Overall, we can see that.

So Anupam, the difference here is when we take up a project or whenever we sign up for a contract with the customer, we start with a mandate of at least 15% margins internally, right? That's what we started and we are very confident of these numbers. But during the execution of project, there's a timeline. And since we have got one of the largest teams both on design as well as procurement side well poised to further support on the margin process. And that generally happens in the execution of the project, which we call as execution, I would say, capabilities of our project teams. And that's how you see a margin ranging 16% to 19%, 20%. So bare minimum that we look at is around 15% when we started the project, but our endeavor is always to take it up to the ranges of 19%, 20%.

Okay. And sir, if your order book breakup, if you can give on the rooftop domestic EPC and C&I, some sort of light you can throw.

Yes. Mostly all orders are domestic, number one. And all -- majority of them are ground-mounted projects.

Are these more into our group connections that we get where we supply modules ourselves? Are we getting business from there mostly?

No, it is not that way. But definitely, the overall group has the capability in the production line, et cetera. But we are getting from the other customers also -- whatever the modules are there, we are installing them as well.

The next question is from the line of Rehan Saiyyed from Trinetra Asset Managers.

Sir, wanted just more clarification on how are the newly approved IPP projects in Maharashtra and Rajasthan expected to impact top line profitability from quarter 3 onwards in FY '26. If you could you just throw some light on that? This is my first question.

Yes. So we are the -- like we have three revenue streams, that is one EPC, other one is O&M and third one is IPP. So as of now, also, we have revenue from all the three streams compared to my EPC, a little less. But this revenue giving, like it is IPP is giving revenue for another 20 to 25 years. So in the line with our existing project of 54 megawatts, which we are as of now, we wanted to have some more IPP projects. So therefore, during this Board meeting, the Board has approved additional of 14 into 2 in Maharashtra plus 37 megawatts peak in Rajasthan. So this is in line with our existing, we wanted to add some more assets into it.

Okay. Sir, my second question is around the revenue mix diversification, that right now you have EPC and IPP converting towards 70:30 mix. So what you are targeting for next 2 to 3 years? Like what is the mix for these two, like EPC and IPP?

Can you repeat, actually your voice was not so clear.

So sir, I was asking what's the medium-term roadmap for revenue diversification? Do you see the EPC and IPP converting to what is 70:30 mix over the next 2 to 3 years?

So primarily, the core business of Waaree Renewable Technologies is the EPC stream, and this retains and continues to be. However, we are also trying to enhance our ground force on the O&M business, which you certainly see even in the numbers also that year-on-year, our O&M portfolio is increasing. Same point in time, we also some few assets on the IPP front, but largely, these assets are smaller and within the C&I range only. So you may see -- continue to see few projects, but the main business of Waaree Renewable Technologies goes into EPC and O&M.

So -- and to add further like whatever the projects which we are executing, we try to get O&M off it. So last -- in this quarter, we have completed one of the project of 412 megawatts. So that is likely to -- it will add to our O&M going kitty going forward. So that is what we are doing.

Okay, sir. And last -- one of my last question is that, I want just more clarification on the lastly any upgrade on collaboration with Waaree Energies for module sourcing. So are we lacking in fixed supply pricing or following spot in procurement with this?

So as you're aware that Waaree Energies is one of the largest module supplier. So definitely when we procure solar panels for our projects also, we do take quotations even from Waaree Energies. But end of the day, being a company, our own policy is always to work on the arm's length basis and have minimum comparable quotations when we procure. So there is a strategic advantage, but then the procurement is always sacrosanct.

But this procurement of module, et cetera, comes when we are getting turnkey kind of orders, but the majority of the orders which we are carrying as of now is like pure EPC. So relatively, my strength is like execution EPC, whether it's module supplied by Waaree or maybe some other supplier, but our strength is do the EPC work. So whenever there is an opportunity of turnkey order, which are relatively small in my entire EPC, we are executing the EPC...

The next question is from the line of [ Sagar from Alchemie Capital ].

Thank you, sir, for your insights and your opening remarks. You mentioned 3.48 gigawatt as the order book. Can you quantify in rupee terms, how much is it?

We are not exactly, but giving any kind of rupee term what is my order book, but definitely to give you a sense that we are executing various orders. So some of them are not pure EPC orders. There our scope is limited to certain extent. So that -- and where some of the orders are mixed, where we need to supply the module as well. So it is ranging between maybe INR 1 crores to INR 3 crores depending upon the scope of the work, which is awarded to me. And definitely depends upon the exact work it is given to me.

Or can you give a split, sir, what percentage would be pure EPC and what percentage would be turnkey?

So just to give you a sense, it is around -- it ranges between let us say, INR 1.8 crores or maybe INR 1 crore per megawatt to 1.25, 1.3 like that.

And sir, what is the order pipeline going forward? What quantum of orders do you foresee in the rest of the financial year in terms of bids, et cetera, coming up?

See, like -- if you see that overall government tenders are on a continued basis 6 to 7 gigawatts plus are the private players C&I and the IPP customers is also around 20 gigawatts. So total pipeline, which we follow is around 27 gigawatts. And as I mentioned in my previous question that we only won orders worth of 1.8 gigawatts during this H1. So we continue that the order flow will continue over a period of next few years, in fact because we wanted to set up this -- country wanted to set up this green energy. So if you see that from the last 6 months itself, the country has added 21 gigawatts and the remaining 6 months is still there. So every year, 40 to 50 gigawatt is to be added in terms of renewable energy. Solar is going to play a major role. And as an EPC player, we have a big opportunity to take any revenue out of it.

The next question is from the line of Ishita Lodha from SVAN Investments.

My question is with respect to Slide #28 of the presentation. So in cash flow statement -- we have -- so we have seen a good growth in our execution. But at the same time, when I'm looking at the cash flow from operating activities, it has remained flat at INR 84 crores. So why is this? And how do you see this improving over the next half of the financial year?

Definitely, with the more and more orders which are going to execute in the next H2, this position is going to improve going forward.

And what is the status of the execution of the Jindal order?

Specifically, any -- we cannot talk about any specific order in this conference call. But to tell you whatever order we have taken, we are executing in a timely manner. So along with that, this is one of the orders which we are executing as of now.

Okay. So our quarterly execution run rate would be in upward trajectory going forward?

Yes, definitely. If I give you a sense, actually, for the last financial year, we have done around 1.5 gigawatts worth of order we have executed. So in the H1 itself, we have done 1.6. So the way my revenue has gone up from last March '25, we were 1,597. Now we are 1,377. So you can just see the way we are executing the orders. And with the available my order book, you can see this growth.

Okay. And in your press release that had come in last 3 months, in one of the orders you also got order for the transmission and substation 400 kV. So I just wanted to ask what is the qualification in transmission substation EPC, can we execute projects of 755 kV? And are we also looking for stand-alone transmission substation orders or only with combination with solar? And in this case, how we source bought out component, which is the towers, conductors, et cetera?

So as a part of creation of overall solar generating facility, we are -- anyway we are -- now also we are doing, connecting this power, whatever generated from the solar generating unit is to the nearest substation or maybe to the grid. So as a part of this process, we have expertise of doing so as of now also. We are looking more and more order if we can get this kind of a -- building of the transmission line or substations. So this is one of the order which we have received for doing this work also. And as we are doing the EPC work and connecting to the any substation or the grid, our capabilities there to execute this kind of order going forward.

Okay. And is it possible to share what percentage of your order book is from third-party clients?

Majority is from third-party clients.

[Operator Instructions] The next question is from the line of [ Raman KV ] from Sequent Investments.

Sir, I have a few questions. One is with respect to the realization per megawatt. So you said it's anywhere between INR 1 to INR 1.2 crores per megawatt, if I'm not wrong. But if I'm tracking the data with respect to the presentation given, we executed around 1.6 gigawatts of order book during the H1, and we clocked INR 1,380 crores of revenue. So that brings the realization down to INR 85 lakhs per megawatt. So can you just give us the broader picture? Is it the -- is there any decrease in the realization per megawatt? Or is the bills -- with respect to the entire project is yet to be received by the company?

So as I replied in my earlier question that the order which I'm getting is purely -- some of them are purely EPC order, some of them are limited to -- some restricted to the scope, and some of the order which I'm executing on a turnkey basis, where the module is also under my scope. So it is difficult to calculate the way you are doing it because in one particular quarter or maybe one period of time, it is -- various orders are going on. So it's a mixture because this revenue is coming from all the type of orders. And the way you are just seeing this, it may be difficult to calculate.

So you're basically saying it's because of part EPC, part turnkey projects...

Yes, Yes.

In the EPC project, we do not supply the modules, right?

Yes, yes. Because the supply is in the scope of the customer or developer who wanted to have this power projects. So they will supply me the module. My job is to execute the EPC order.

And sir, I just want to understand when it comes to the margin, so because we are not supplying the modules, so EPC business tend to have lower margins when compared to turnkey projects, right?

So it is nothing like that, with module or without module margins. What we are doing is like we have some base calculation at what risk and reward we are getting to have our business. So we are not doing any kind of like below to the threshold limit then to have the orders in our kitty. So accordingly, after analyzing every order, which suits our risk/reward metric, then only we go ahead with the -- booking the order.

And sir, my second question is with respect to the order itself. So while researching about this the entire industry, I heard that usually orders in Northeastern states are a better margin business when compared to rest of India. Is it true?

We have not seen any kind of such differentiation because we are executing projects in various states, Rajasthan, Gujarat, MP, Andhra and Maharashtra and all -- various states we are doing execution of the order. But the differentiation which we are mentioning, we have not seen. We have not noticed.

Okay. Sir, and my final question is with respect to the IPP side. So my understanding is, currently, you have three revenue streams. One is the EPC, then IPP and then O&M. And IPP, is I think you recorded under your other operating income. So we have approved the three projects, two of them are 14 megawatts and one of them is 38 megawatt. So what is the CapEx outline for these? And how much incremental revenue can we expect from these three combined projects?

So just to correct one thing that we are recording IPP revenue under revenue from operations only. The revenue from operations includes EPC, then the O&M income and then IPP income. So these are the three revenue streams are recorded in there. And what we are showing is other income is like are definitely on the bank FDs and whatever money -- spare money we do have, we invest and get those returns.

The next question is from the line of [ Vivek Gupta ] from Star Investments.

So my first question is, like speaking about the battery energy storage systems. Like what's the CapEx looking like for that particular segment? And also more importantly, can you break down the anticipated revenue versus cost per megawatt hours for us?

As of now, with respect to our total order book, we have 40-megawatt hours of BESS solar. So we are not doing CapEx, at least in this company for the batteries. So whatever the orders which wanted to have in this EPC company, is the execution of EPC, which are -- execution of the projects which are supported by BESS.

Okay. So can I just -- like I just wanted to know your view on the industry outlook for the BESS right now? And what kind of bidding pipeline are you seeing in terms of order size?

So every -- going forward, this may be like BESS should be one of the area where we have an opportunity to do the EPC business because whatever solar power you are generating during the daytime, if you wanted to have it in the nighttime or maybe next hour, you need to have a storage system. So along with the existing solar, we see very good opportunity that the country will have the best as a storage system. So we have opportunity as a company, we have opportunity to have doing the EPC business of this BESS.

Okay. Like have you put in any bids for these BESS projects yet? If so, like can you give us a ballpark on the size and your internal view on the success rate?

So there are a lot of tenders or lot of inquiries are sorting along with the BESS. So we are actively participating in all kind of possible bids. And once something comes concrete, definitely we'll announce through exchanges to all our stakeholders.

The next question is from the line of Sarang Joglekar from Vimana Capital.

So now that ALMM List-II is kicking in from next year, do you think there will be challenge procuring modules and will it delay the projects from there on? Also, do you expect that implementation to be further delayed?

No. As far as we -- as the EPC companies are concerned, so most of our orders are pure EPC, where the module is in scope of the developer or the project owner. So in our case, when all kind of ground clearances -- because this requires a lot of money to put in by the investor or the developer. So once all kind of clearance are there in place, then only they will give us the order for EPC. And once the EPC order is given, we are there to execute actually. So all these delays, whatever you are mentioning or thinking maybe is the scope of the owner before awarding EPC order to us.

Right. But if there is a challenge procuring that they will eventually delay the EPC work as well, right? That's why I'm asking.

No. What we are thinking differently actually, once you have all the land connectivity, et cetera, and you have lined up from where you are going to likely to have modules, then only mostly the people think of awarding EPC contracts. So we -- whatever -- once the contract is awarded and the timeline scope is defined, we will execute actually.

Understood. And currently, do you have any contracts which have that mandate of ALMM List-II compliance?

No, that is -- as I mentioned, that is the scope of the developer or owner. So once the contract is awarded to me, it is there -- they need to see whatever they wanted to see with respect to ALMM. Once the contact is awarded to me, I'll do in a speedy way to complete this project.

Understood. And on the other question, like do you expect it to be delayed further or -- the implementation?

That is as an EPC company, it is not difficult to comment on this particular -- whatever the happening -- development is having. But what I wanted to convey actually because more and more solar project is coming up with the -- in a big way, wanted to achieve 500 gigawatts by 2030. I think all these are the hurdles will be sorted out soon or very soon.

The next question is from the line of [ Anand B from CIMA Wealth Private Limited ].

Just regarding your BESS orders, do you see -- can you estimate like how many orders can we look forward to in the next couple of years or this year in particular?

So it is difficult to estimate that how much order can inflow from the BESS base project. But certainly, for the grid stability, one should be installing this BESS also because for the grid requirement, also the BESS is very much necessary.

Okay. Okay. But do you see -- okay, at least in this angle, can you see like the BESS orders, the revenue that you receive from BESS orders can -- that share of revenue can increase as the years go on?

It is difficult to predict anything that how much this EPC along with BESS will come going forward. But what my view is that it is to be -- it is to be supported by the BESS. So sooner or later, it will come.

The next question is from the line of [ Raman KV ]from Sequent Investment.

I just have two questions. One, do we have any revenue from the parent company like the listed entity, Waaree Energies?

Yes, we are executing some of the projects, which are there from Waaree. But if you see the overall execution during this -- whatever H2 is not that very significant portion actually.

So on a rough ballpark figure, how much will be the revenue from the parent company?

We have not analyzed actually for this call. But definitely, we are executing one of the projects which is being awarded by the company. And there is a further order which we have received in this H2. It's one of the orders which recently we have announced in the exchange.

And sir, we have a current order book of 3.48 gigawatts, which is unexecuted. What's the timeline of these or for this order to be executed?

So this 3.48 gigawatt order book, which is there as of now is likely to be executed over the next 12 to 15 months.

The next question is from the line of [ Surinder Singh ], an individual investor.

So congratulations on the strong set of numbers. This is in context of the current demand environment. And my question is, are you facing any pricing pressure while picking up new orders?

This competition is always there, but definitely, for this -- we are seeing a lot of order inflow. So while demand is definitely there, as far as competition is concerned, competition is good always for the industry. So -- but whenever we are -- just to tell you, whenever we are taking any kind of order, we are just looking at the budgetary -- whatever budgets, et cetera, and what is the profit or margin is there. So after evaluating everything, if this order suits us a risk/reward metrics, then only we do. Otherwise, we don't execute the order.

Okay, which means you're choosing the orders, you're not taking any order. My next question is that your order book of 3.48 gigawatts, does it have some very, very large orders, which would make us dependent on very few large customers?

This order book -- like it's a continuous process actually, the 3.4 when I closed my last quarter, it was 3.1. So it's a continuous process. We have announced earlier 2 gigawatt order at a single location. Earlier we announced 1 gigawatt order at a single location. So definitely, we are -- we have the ability to execute from 100 megawatts to maybe 2 gigawatt size of orders. So it's a continuous process actually. Whatever order we are executing, we are booking -- rebooking also.

The next question is from the line of [ Amit Singh from VVID ].

Yes. So first of all, congratulations to the team for such great numbers. My few questions are related to the cooling business. Recently, you acquired a new company. And another is related to the data center. So I would like to know what is the way ahead, how much revenue you see and the margins related to data center and the cooling business? And also about what value this cooling business will bring to Waaree Renewable Technologies? As of now, you have the three verticals and how this fits in?

So to answer your first question, this cooling business, the company which we have identified and acquired around 3% stake. So this company provides cooling as a solution. So like for the large offices and factories, they are providing the cooling actually. So we find synergy in our business because as a company, we have an opportunity to do the solar installation wherever they are approaching for the cooling, we as a company can also have an opportunity to do EPC business, this module installation also. That is one. And with respect to the data center, which you have mentioned that we are actively looking at data center, we have -- last about 6 months back, we have added -- amended our close. And we are actively looking for any kind of opportunity, which is coming in the form of EPC for the data center.

So as of now, you don't have any business or you're not bidding anything or you are just looking to bid? How is it getting converted?

Yes. There is no formal bidding happening as of now for the data center. It's a bilateral discussion. So we have hired senior-level personnels for all to take care or to see the possibility of having data center as EPC in our business. So as we progress, let us see, and we'll update you going forward as well.

Okay. And my last question would be that with respect to your bidding pipeline, what is the conversion that you are seeing right now? What is your conversion rate? Because you are bidding for 27 gigawatts. So what would be the -- because in 16 months, your this -- the kind of execution that your company is doing is awesome. So going forward, how do we see that how much orders are going to come?

So as you rightly said, we are actively looking at chasing this 27 gigawatt worth of order, but it is difficult to give you any kind of number that how much will be the conversion rate. But if you see that from last quarter or maybe a few quarters that we are keep on executing as much as possible. We have done 1.6 gigawatts for H1 as compared to 1.5 gigawatts of last year. And in the order flows also, you have seen that we have received 1.8 gigawatts of order. So we are chasing this entire order book. We try to get the maximum out of it.

The next question is from the line of [ Kumar Divyanshu ], an individual investor.

Congratulations for the very good number. Just having one question, could you please tell me what is the current order book, overall till the second quarter of FY '26?

Yes. So as I mentioned earlier conversations, we have 3.48 gigawatt peak of worth of order book, which is to be executed over the next 12 to 15 months.

Okay. And what about, sir, data center, could you please comment on that, if there is any order or bid in the pipeline or not or whether you are going to communicate to any of the companies or whatever it is...

So as of now, we have nothing in our order pipeline, which I mentioned to you with respect to the data center. But as I mentioned that we are actively looking for any kind of opportunity as an EPC player coming up in the data center. So once something materializes, definitely, we'll communicate through exchange to you, sir.

Okay, sir. And the third question and the last question is, is there any foreign investment coming to your company likewise or DII is actively interested to invest in your company or whether the promoter is going to increase the stake?

There is any -- nothing whatever you are mentioning. We are a very asset-light company, actually. We don't have any kind of major term loan, et cetera. We have INR 20 crores of term loan, which is for the IPP business. So as of now, there is no such plan, whatever you have mentioned. But definitely, if something comes up, we'll definitely communicate through exchange.

The next question is from the line of Anushka Vora from Vimana Capital.

My question was regarding -- so last year, there were certain evacuation and connectivity issues with respect to solar projects. So this year, have these problems kind of continued? Or has it become better? And is that affecting execution for companies?

See, this -- whenever you are undertaking any kind of projects, some initial or problem -- hurdles may be there. But with respect to our company, whatever orders we have got as of now, we are -- our job is to do the EPC work. And we don't find anything related to that. Even if it is there, then also it is in the scope of the customer.

Okay. And what is the CapEx that you have planned for the IPP project?

So in the recent Board meeting, the Board has approved 14-megawatt peak, two projects in Maharashtra and one project in Rajasthan. So that is going to be executed over H2 as maybe a little later than that.

The next question is from the line of [ Vibhav Lohia ] from CFM.

So I want to understand what is the sector outlook for the solar EPC market after FY '25? Because as of now, we are seeing around 40 to 50 gigawatts of additions every year. But if we do the math for the next 5 years, it will be around 250 gigawatts. But the goal renewable energy target for 2030 is 500 gigawatts. So do you see any softness after FY '27?

I don't think so. I think the other way around actually because there is a lot of opportunity beyond 500 gigawatts also in the country. Lot many sites, lot many locations are available for the installation of solar projects. So therefore, you are seeing these kinds of numbers. We have already -- in H1 itself, we have crossed 21 gigawatt peak in this financial year. So with this pace, I think we'll go beyond whatever target is given and may reach a little early than what we thought.

Okay. So I can assume the growth will be better going forward, and it won't decline after FY '27, right?

Yes, yes, definitely because there is a lot of potential in the country to have solar projects.

Okay. Understood. And sir, last question from my end. What is the total addressable market for the data center business for Waaree look?

We are exploring all kinds of possibilities with respect to the data center, as I mentioned earlier. But let us see if something coming up, we'll definitely communicate to you, sir.

Sir, can you give some rough numbers for that -- just quantify the numbers for the total addressable market? It will be like very helpful for us to understand that.

No, if you see that a lot many people are using AI and this product. So it's likely to consume more and more data. And for the data center, there is a lot of opportunity will be there.

So to add up to this, like right now, we are in the trajectory of around 250 to 300 megawatt worth of data centers that we have in the country. And if you sum up all the ongoing projects for which bid is happening, we expect over the next 4, 5 years, at least 1 gigawatt worth of more data centers to come up in the markets. So certainly a very large market than what we see today.

Thank you. That was the last question for today. On behalf of Waaree Renewable Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.