Hi,
Websol is having the highest PAT margin in this sector. I am expecting it to sustain this margin for next two years. So, expecting margin to go up further is a very unlikely scenario and over expectation as Input Wafer cost is decided by the Chinese manufacturers who may increase the rates in future to reduce their losses.
Chances of margin contraction is possible as
- TOPCON tech is more efficient than Mono Perc.
- Cell Capacity addition by other manufacturers.
- Demand side bottlenecks due to non growth of Govt. Capex in this sector and other allied sectors like transmission, BESS, Mega solar parks, Less renewable power outtake by states, etc.
Above are few factors which comes to my mind right now.
secondly, the ADD of 30% is applicable for Cell and modules imported from China and all other countries. I hope this answers your queries.
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If the ADD can sustain these margins for a little longer even that is great because I am hopeful that the additional capacities in phase 2 and 3 should hedge against any inevitable contraction in margins. The good thing is that this ADD can extend the good times for longer
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Sanjana Khaitan the grand daughter of SL Agarwal was denied reappointment by the share holders in AGM. This is highly unusual. Has anyone attended the AGM or have any insights ?
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Websol to invest 3000 Cr in AP to set up Solar Cell manufacturing facility, creating 2000 new jobs. Websol MD Mr. SL Agarwal met with Hon’ble Minister Nara Lokesh garu to discuss the upcoming investment and his company plans for the future.
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Guiding for 500-600 cr..topline for this Q !!
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I don’t think its fair expectation to have 500 Cr of quarterly run from Q2. There will be bit lag to have full ramp up.
So, my Expectation for FY26 is around 1500 Cr topline with 35 to 40% of margin. and
For FY27, we can expect to have topline around 2200 Cr with around 35% of margin.
Happy Investing,
Karthik
Disclosure: I am having position in this stock from very long time(around 84 level). So my views can be baised.
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1500 in FY26 is also a tough ask.
Q1 was 219, Expecting Q2 to be bw 200 to 225.
Now with addition of another 600 MW cell line (and higher utilization of module line) can at the most double up Q3 & Q4 revenues as compared to Q1 revenue, which would be a max of 450 cr sales.
So 219+210+450+450 = ~1330 cr of sales in FY26.
FY27 would be 4*450 = 1800.. or at max 2000 cr of sales if selling price of cells increase.
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