Sterling and Wilson Renewable Energy Limited (SWSOLAR) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Sterling and Wilson Renewable Energy Limited Q2 FY 2027 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. Today on this call, we have Mr. Chandra Kishore Thakur, Global CEO; Mr. Ajit Pratap Singh, CFO, from Sterling and Wilson Renewable Energy Limited. And SGA, who are the IR Partners. I now hand the conference over to Mr. C.K. Thakur. Thank you, and over to you, Mr. Chandra Thakur.

Thank you, and good morning, everyone. Thank you for joining us to discuss the results for the second quarter first half of fiscal 2020. I'd be flat on our last call, the first half of this year turned into a transition period. Our ongoing projects are in their final stages, while new projects, 4 in India and overseas we are moving through LOA and notice to proceed. I'll begin with where the industry stands today because it ships both our opportunities and our discipline. I'll then cover our operating performance and outlook; and Ajit, our CFO, will take you through the financial updates. So I'll just touch upon the industry overview. India, renewal energy journey continues at an extraordinary pace. Renewable and large hydro capacity is at about 38 gigawatts as of September '26, roughly 53% of the country's total generating capacity. Solar remains ranging of this growth. Installed solar capacity has grown from under 3 gigawatt in 2014 to about 171 gigawatts today. 2026 is on track to be the strong year for solar capacity addition in India. India added about 34 gigawatts DC in first half of this year, 38% more than a year earlier. And full year additions are expected to be in the range of 50 gigawatts DC, adopted record 49 gigawatts sit in 2025. That said, the near term has to be more challenging. Two factors slowed new utility scale awards in the first half of the year. A third factor competition has influenced how we bid. First, the shift to domestic solar sales. Since June 2026, projects must use models made with Indian sales as per ALM. India has over 200 gigawatts of module capacity but about only 35 gigawatts of steel capacity. So compliant models are scarce and costly may raise project cost by around 15% to 17%. As result, developers are reworking project economics and tariffs and many have delayed EPC awards until prices and economics set up. We see this as a temporary phase. Solar capacity is expected to reach about 100 gigawatts by December 2027, which suit each prices and restored award activities. In the long run, it will give India a stronger and more secure supply chain. Second, delay in power purchase agreements and transmissions constants. About 40 to 50 gigawatts of awarded renewables capacity is still awaiting for signed power purchase agreements. Solar output is also being curtailed at times in Austal and in some parts of Western India because of grid limitations. As a real project pipelines in Rajasthan and Gujarat have been pushed out of several quarters. Third, the competitive live landscapes. Competitive landscapes has affected how we win the projects, entry barriers in reverse options are low and some new players have been data prices, we believe are tough to maintain margins and may not be sustainable. We have been very much cautious and selective in such bids and hence our own order wins in domestic markets have been lower. We saw similar cycles in 2011 and around 2015 '16, and disciplined experienced players came out stronger each spends. The government is now acting firmly on some of the issues related to transmission bottleneck. On 30th September 2026, the cabinet approved green energy corridor Phase III with an outlay of around INR 1.86 lakh crore. This includes about INR 1.36 lakh crores from state transmission networks with central support of around INR 54,000 crores. It aims to connect up to 135 gigawatt of renewable energy to agreed by financial year 2023. In addition, the Ministry of Power issued new rules to pay land onus market rate for the land used by the transmission lines. This should reduce disputes and speed up construction. These measures will take time to deliver, but they directly address the transmission bottleneck that is holding back PPAs and new awards. Of course, the blue side of this circular has to be seen once the high -- the land cost will come into play. Battery Energy Systems. Battery storage in India has moved from pilot projects to large-scale deployment. India added about 8.2 gigawatt hours of battery storage in the first half of 2026, compared with less than 100-megawatt hours a year earlier. Almost all of this came from large stand-alone projects. Rajasthan and Gujarat, 2 of our core markets account for over half of installed capacities. The outlook is also robust. Crisil expects 45 to 50 gigawatt hours to be commissioned in financial year 2027 and financial year 2028 alone. Projects with stores made up nearly 40% of renewable capacity auction in financial year 2026, up from about 5% earlier. The Central Electricity Authority expects 236 gigawatt hours by financial year to -- the government also plans to require storage of new solar and wind projects from July 2027. We expect most large solar tenders to include stories going forward. We are actively monitoring the best opportunities and are selective in bidding new BESS projects. Battery prices have risen in 2026. After years of decline, the domestic battery supply chain is still developing, and customers increasingly expect long performance warranties from EPC contractors. Now coming to operating performance for Q2 financial year 2027. Revenue was INR 1,527 crores in Q2 and INR 3,118 crores in the first half, about 11% lower than H1 FY '26. This decline is primarily from our international businesses. International revenue was INR 165 crores in the first half compared with INR 929 crores last year. Our 4 older international projects in South Africa, Spain and Italy were completed and the new ones are at regard. Meanwhile, our domestic businesses grew -- Domestic EPC revenue in H1 FY '27 rose about 15% to INR 2,768 crores and O&M revenues in H1 rose 48% to INR 183 crores. The lower revenue, therefore, reflects the timing of internal projects execution. BESS projects in our order books, 4 in India and 4 overseas are staff. Since contract time lines start only from LA to NTP, these delays do not expose us to potential penalties or bank guarantee risks. As of 30th September 2026, our order book stood at INR 12,481 crores, about 34% higher than a year ago, and up from INR 11,813 crores in March 2026-2027. The order book is diversified and well balanced with about 56% from India. That is INR 6,943 crores and 44% from international market at INR 5,538 crores. We own orders worth INR 3,626 crores in the first half, nearly 90% of them international. This was a deliberate choice. And domestic award slowed down and pricing became aggressive, we avoided low-margin bids and focused on international markets where we are winning at healthy margins. However, international market, we are very selective in terms of geography and are actively pursuing only in certain countries where we have a strong track record of discussions bandwidth and right partners. Q2 Finance year 2027 order wins and pipelines. In Q2, we owned 2 orders for towards INR 985 crores, including taxes as announced in September 2026. We own a 534 megawatts projects in Rajasthan, we see a balance of systems orders from leading Indian ICP, who is a new customer for us. We own a 616-megawatt projects in South Africa. It constitutes 2 battery storage projects of 308 megawatts each on a turnkey basis from a leader a leading Middle East best developers and repeat customers. This is our second largest utility-scale battery projects. We have received the LOA. These wins add to the contract we signed in June 2026 or the West Media projects in Egypt. This is a 1,000-megawatt AC solar plant with 600-megawatt our software stories worth all USD 560 million, which will execute through our 50-50 joint ventures with construction. We expect it will start contributing to revenue this year. Our work orders, our work under the 5-year framework agreement with Adani Groups also continues as planned. Our floating solar projects at Playa in Jharkand, 1 of the largest in India. -- for the NTPC DVC joint ventures engineering completion. Our evoquation will begin once the related transmission line is ready. This experience solutions as well for upcoming floating solar tenders from NTPC DVC and DVC alone and several state governments. Looking ahead, our solar bid pipeline excluding battery storage has grown to 34 gigawatts from 2.7 gigawatt last quarter. About 74% of this is in India and 26% overseas. Battery storage bids are in addition to this. We see bidding opportunities worth about INR 45,000 crores to INR 50,000 crores across solar and storage in the second half of this year. Now coming to projects from Reliance Group. Our work base, our promoters, the Reliance Group continues to depend as Reliance has publicly announced, which is building 1 of the world's largest integrated renewable energy hub in Khavda, Gujarat, combining solar power with battery storage at very large scale. We are working closely with Reliance on technical design and execution readiness. International business. Our international business is down on a strong footing. We recently completed 4 projects in South Africa, Spain and Italy within gross margins. Our interstate order book now stands at INR 5,558 crores across South Africa. Execution starts in the second half and international revenue is expected to rise significantly in H2. Now coming to our profession and maintenance business. Our O&M business continues to slow. Our O&M business continues to grow strongly. Our portfolio has reached a record 18.9 gigawatt, up from 13.5 gigawatts in March. O&M revenue grew about 55% to INR 99 crores in Q2 and 48% to INR 103 crores in the first half. This business gives us a steady recurring income with lower. Outlook for FY '27. We are maintaining our guidance of up to -- up to 10% revenue growth for FY '27. We are confident for 3 reasons. First, 8 projects in India and overseas will move into execution in the second half. Second, execution will comment on our international order book of over INR 5,500 crores with the rest miniaprojects in Egypt as the key contributors. Third, we have done this before. In Q4 FY '25 we delivered revenue of over INR 2,500 crores in a single quarter. We expect Q3 to be clearly better than the first half and Q4 to be our stronger quarters. We expect EPC gross margin of 8% to 10%, depending on the mix of turnkey and balance of system projects and on gross margins of around 20%. We expect our order book to remain level of INR 10,000 crores at the end of financial year 2027. We believe success in this business is not just about winning others. It is about completing projects without negative surprises. As the industry consolidates, we believe this discipline will set us apart. With that, I will hand over to Ajit for the financial performance. Ajit, over to you, please.

Thank you, Chandra Kishore Thakur, and good morning, everyone. Revenue from operations for Q2 FY '27 was INR 1,527 crores compared with INR 1,749 crores in Q2 FY '26 and INR 190 crores in Q1 FY '27. Domestic EPC contributed INR 1,366 crores, international EPC INR 62 crores and INR 99 crores. First half revenue was INR 3,118 crores compared with INR 350 crores last year. As CKT explained, the decline was predominantly due to lower international revenue as older projects were towards fag end of completion and new ones are yet to start. Domestic EPC revenue grew about 13% in the first half, and O&M revenue grew about 55% in Q2. Gross profit for the quarter was INR 140 crores. Gross margin improved to 9.2% from 8.9% in Q2 FY '26 for the first half, gross margin was about 9.5%. We expect PC gross margin of 8% to 10%, depending on the project mix. Turnkey projects have lower percentage margins, but higher absolute profits, while balance of system projects and better gross margi O&M gross margin was about 23% this quarter, and we expect it to settle at around 20%. Operational EBITDA, which is gross profit minus recurring overage was INR 56 crores a margin of 3.7%. This compares with INR 62 crores at 3.5% in Q2 FY '26. Recurring overages were INR 84 crores, about 11% lower than INR 94 crores a year ago. Reported EBITDA, including other income was INR 66 crores compared with INR 96 crores in Q1. Profit before tax and profit after tax were both INR 17 crores compared with a loss of INR 478 crores in Q2 FY '26, and a profit of INR 53 crores in Q1. First half profit after tax was INR 70 crores compared with a loss of INR 439 crore in H1 FY '26. It is worth noting that the loss in the previous year was primarily attributable to a onetime impact arising from the U.S. arbitration outcome and related provisions. On an operating basis, first half operational EBITDA was INR 134 crores compared with INR 184 crores last year because of lower international revenue this year. Our recurring overhead admired within INR 79 crores, INR 84 crore a quarter. Most of the people we have added work on special projects and their costs are included in project matures. As revenue growth in second half overheads a percentage of revenue should fall and operational EBITDA margin should improve. Now coming to balance sheet and working capital. We continue to operate with negative working capital. Net working capital was negative by INR 301 crores as at 30th September 2026 compared with negative INR 260 crores at the end and negative INR 329 crores in March. Receivables, including unbilled revenue stood at INR 305 crores. Receivables they increased to 176 from 138 in March, and payroll has increased to 164 from 135. Gross borrowings fell by INR 244 crores in the first half to INR 920 crores as we repaid term loans at schedule, with cash and bank balances of INR 319 crores, net debt was INR 601 crores, broadly unchanged from INR 589 crores in March. Shareholders' equity rose to INR 719 crores from PC INR 651 crores. Most of our existing term loans will be repaid over this year and next year. Our banking relationships continue to remain strong. We have secured over INR 3,000 crores of new credit lines, including local lines in South Africa during the current year. And our lenders continue to support as we win orders. On claims and indemnity, we also continue to make steady progress on legacy claims. We have signed a settlement with the Chile customer. Part of the amount is expected to be paid by the customer was their connection completes and the balance will be plan from the promoters in the next cycle. We expect to receive around INR 156 crores under inability in the current year from the promoters. To sum up, the first half was a transition period for our international business, while domestic EPC and O&M continued to grow. We are well placed for a strong second half with an order book of nearly INR 3,500 crores, 8 projects moving into execution, our growing mudmbusiness. With that, we can open the floor for questions. Thank you.

[Operator Instructions]

Yes. So honestly, not very impressive results, and I wanted to ask you this question upfront. We keep talking of the fact that we have a very strong order book. but the execution for whatever reason, it may not be your problem and maybe the customer is not able to get the land or whatever he's supposed to do. but it keeps getting delayed and because of which what's happening is our profitability is getting affected. I know you've maintained your 10% top line growth for the current year, which is what you had initially said -- but what is the reason for these delays? Are we going to constantly have this? And then by the end of third quarter, we say, no, now we may not be able to achieve the number because that sense projections of track that sends our expectations of track. So what exactly is the problem? Why are the new projects which you set the 4 in India and the 4 in international market not starting? What has been the delay for that?

Yes. Thanks, Sameer. If you look at the EV positions at hand at the start of the year, we had pretty robust order books in hand. Having said that, there were 3 projects, 1 Lilian Coal India that we announced and Normally, when the projects have been announced in the Q4 or Q1 of the following years, around 70% of the revenues you consider in the following years. That means our contributions from the before new orders could have been much larger, right? Unfortunately, the Coal India and the 2 NTPC projects -- the -- because of the PPAs not being signed with the utilities, the final entity did not come to us, which we expected that the execution of these projects could have been started indeed, let's say, mid of the Q2. That's the reason. The 4 projects in international market. So that entity was supposed to be somewhere around let's say, August. And as -- so there for 2 projects, we were expecting the major revenue to, of course, come from Q3 and Q4 and some revenue in Q2. So those NTP also were delayed because of their financing arrangements and other things. Fortunately, 1 large size order which have come from Egypt mini they are the sort gestation project and the positive moving the entity has come and the work has started. So with this, historically, if you look at our performance in the last financial year also, I mean, with respect to that, we are at the right pace. But yes, so I do agree with you with the large orders in hand...

Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected.

Yes. So also, I was just telling that had these new projects have been started sometimes in the mid of the quarter 2, the year could have been better. But having saved this delay, in the Q1 results, I have already given the guidance that probably Q2 will not be as promising. It would be in the range of the Q1 only. And we are here. We are here we are in the range of Q1 only. So going forward, prior that I mean, in the interventional revenue we keep on adding. Domestic 4 projects may take some time, another maybe 1 to 2 months. But the substantial revenue from the new projects -- PSU projects will come in Q4.

Okay. The second question comes on costing. One thing that we have noticed is that the cost is continually moving up. Now we had talked about the fact that we can maintain our cost at the current level. And as the top line grows, the operating leverage will play out at the -- I mean, this is at the central office, right, at the headquarter. But we've seen that this is continually rising. Now where do you see it stabilizing for FY '27 and FY '28 from INR 300 crores, INR 320 crores that you all do? Where do you see it going over the next maybe 2 years?

So I think if you see the recurring over is -- if you're talking about that, then the cost is almost flat. There is no significant movement on either side, neither lower, nor higher. As a percentage of revenue, because the revenue was lower in the current quarter. And in the last quarter, as a percentage of revenue, it looks high. It was around 5%. And the moment revenue will increase. This cost will remain the same, and we expect it to be in the range of around 4.5% for the current year.

Fair enough. But no, once you said you're waiting for the Reliance orders. So my question is, once the reliance orders come in, would you need to hire a lot more people at the offices, would that push the cost up? And of course, the question that eventually lies is by when do we expect Reliance to actually give the orders which we can start executing.

So majority of the cost will be at the site, which will be part of direct cost from the Reliance orders also, there will not be any significant increase in overhead cost.

And if you can just give us a particular date, then that's the last question I have and then.

No. So basically, we discussed last time also. So from the overhead side, I mean, the implied cost and all and the other expenditures already part of the cost, which will be part of the overall project cost. So to that extent, some addition will be there at head office. But proportionately, it will not increase our burden because the revenue also will be coming. On the -- when the project will come. I'll maintain the same status because this site readiness work is going on. And post monsoon, the work supports to be started. So it is just on to the final leg of the finalizes of some of the technologies on the tracking side and all. So I'm not in a position to give you much details. But I can tell you that now this is almost every agent of the -- I mean, the planning process and the work we can see the -- I mean, some good news you will -- I mean, year out soon. And that's what I can tell you at this stage.

Next question comes from the line of Disha from Safal Capital.

Couple of questions. So obviously, as the first...

Sorry for interrupting the management line has been disconnected? I'll quickly get them reconnected. Just give me on. Ladies and gentlemen, the management line has been reconnected.

So a couple of questions. So we've still maintained our growth guidance at 7%. So that would mean that we need around 2,600 sort of quarterly run rate for the next 2 quarters. So first question being, do we see any risk in execution for us to achieve these targets? And how are you looking at execution for Q3 and Q4? And what numbers are we done? Because that will give us better clarity.

So based on to our guidance, we still maintain up to 10% growth in the revenue this financial year. I've already told earlier, the first -- the Q1 was little subdued Q2 also because of various factors, nonmoving PPI adaptions, all those hates have affected new projects not to get started. But Q3 and Q4, because international projects have already taken off. So I am expecting the traction to increase more. So for sure, the Q3 and Q4 will not be in the proportion of INR 2,600 crore, INR 2,600 but Q3 will be better than Q2, and this Q4 will be heavily loaded.

And so we don't see any risks to the execution?

No. So basically, we are pretty confident of our ability to execute the projects. Why it has impacted basically some of the projects have not started. So our team is in place to understand everything. So everything has been all planned. So now since the project has been launched, and there is a definite time line. So from the international project, the revenue has to increase. I'm expecting the 4 stalled projects in India and few accept projects in between that they have come, they are all on track. All the ongoing projects is all projects are on track. None of the projects is getting created because of our ability to not execute the projects. So what I say that I mean, out of the 4 projects in India and a few more projects in the become they are at the faster track, they should be contributing towards the quarter 4. So unfortunately, this is not only with us, the entire EPC community and the whole industry, India, India and industry in the solar sectors have been impacted because of the reasons, the reasons, 2 reasons, 1 that I told in my opening remarks also, that the curtailment in Rajasthan and Gujarat that have slowed down the order -- the inflow from the IPPs and even for the PSU. The requirement of our obligation of the best systems to be installed. This is now mandated to be the domestic Indian mix kind of things, but we don't have the steel production capacity this mismatch and understanding people are putting -- I mean, any crazy prices, the orders you must have seen -- have been all terminated right, these contractors could not be curious. So the developers are also becoming very careful that I mean you can have the resistor a number of things, but in Indian industries and our support. So although the pipeline, the requirement, the development plan is already in place. But on overall execution side, all these technologies and other things are taking time, which is not specific to an Sterling win, but it is specific to the industries.

And sir, for the international project, do we see a major margin differential between the domestic and the international projects? And if so, what is the difference there?

So see, so domestic market margin is always under pressure from the fact that in all these holes and the BESS projects there is low entry barriers, right? So anybody and the outside some of the business infrastructure projects also, they see that solar being vanilla projects, they can earn a lot of money. And without understanding the efficacies of technologies, the supply chain disruptions and all they are entering into the market and they are quoting any price, right? And therefore, we have seen that despite the fact that, I mean, good amount of contracts have been finalized in H1. But 1 of the government induce, we are there because it has gone below the -- you say, from our appetite point of view, it has gone below the cost, right? And then people have taken not knows how they are going to execute, but we have been keeping away from our kind of business. What I said at India, this kind of intervariaproblems and all and not much opportunity in the other sectors being seen. People are coming and jumping left right, right? So that has created the margin. Of course, for us also, I mean we have to sustain therefore, the margin that we expected, right, in the domestic market would be lowering down because you have to take a business call and you have to survive. So -- but that's not to the sense that, I mean, people are doing. Then strategy, you have to move from domestic to international market. And therefore, -- you could see that despite the fact that we thought that this year, we will be around 70, 30, domestic international, but we are even more international. Why international margin is more? Because the market is stable, people understand all those things with healthy competition and with healthy competition in overall turnkey project in terms of percentage, even if it is slightly lower, I mean as for the Indian old condition. But since it's a turnkey projects, our absolute number will be more than the domestic margins. So therefore, the contribution will be much more.

Okay. So as the execution also stand up in the second half, can we expect for this entire EBITDA margins to be in the range of 4%, 4.5%?

Yes, I think that's a requirement that we have to maintain, yes, right?

Okay. And sir, what was the O&M revenue are you expecting for this entire year?

E20 in the range of 20% in terms of revenue, you are an. No revenue, okay. So.

Rent revenue we expect in the current year should be more than INR 400 crores.

Okay. And sir, this Egypt project that you mentioned that we're starting to expect revenues for this -- from this year itself, when exactly do we expect this revenue to come in by Q3 all be more towards Q4? And what sort of amount are we planning to book for this year for the next year? And what is the project -- and what are the margins for this project?

So the Venia projects -- the project is for, let's say, around 14 months, right? And the NTP has started. So let's say, 40% of the time to go for this financial year. in the similar proportions to Q4 would be heavily loaded for the supply to commerce. So I'm expecting that, I mean a good margin to come from these projects. And Q1 and Q2 next financial would be the completion dates. So that's the reason that I said that the Q3, Q4 of the financial because of Egypt Minya definitely would be loaded. Margin is pretty good margin. So we are around on the overall turnkey app, it is 1 and 8%, more than 8%.

Ms. Sha, please rejoin the queue for more questions. [Operator Instructions]. Next question comes from the line of Faisal Hawa with H.G. Hawa Corp.

So sir, when do we see the core banking situation coming back to normal where we can issue BG that will -- and our credit rating also improving -- that's one. And second question is, sir, how much orders can we expect from Ambani Reliance Industries in the coming financial year? And also from Adani enterprises in the coming financial year for Khavda?

So I will come for the order positions and then it will address your the banking position. So as you are aware that the we into the framework element with Adani for 5 years. So first year was around 1.2 gigawatts. And the RFQ for the next 1.2 gigawatt has already come to us for these. And we are expecting that these orders as per the framework arrangements would be getting closed soon, right, maybe this month or maybe next month, right? So that is on to the Adani side. The Reliance side, premature to tell you that how much order will come. But we believe we would be very -- and for the preferred CPC partners. And we are stripping the large chunk of order to come through us. But I mean, unless it comes to us, I can't commit you, right? But then yes, it's going to start soon. On the banking side, Ajit, if you can just share.

So on the credit line side, last year, we have waited from the banking system around INR 1,800 crores new credit lines. And in the current year, we have added till now around INR 2,800 crores new credit lines. And so basically put together, if you see last year and current year, we have added around INR 4,600 crores new credit lines from banking system. And over and above, more than INR 700 crores from surety bonds also we got. So we are sitting on a pretty good position in terms of our working capital requirement for non-fund-based limits. Banking -- bankers are supporting. In the current year, we got 3 new changes from Indian banks. And 1 new engine in South Africa -- from a South African bank for Egypt project. So we are pretty much on a very comfortable position in terms of our bank guarantee requirement and use requirement. Our current utilization of the credit lines is around 70%. So that gives a lot of comfort to manage bank rate. In terms of cost and credit rating, credit rating is under renewal, as of now. But since last year, we have taking that write-off. So we could not get the credit rating upgrade earlier. And the movement will probably have reliance orders or any other large positive news, definitely go back to the rating ASCs for a review of the rating.

And sir, you did talk about the competition under bidding in most of the solar projects. So do you see this competition now weakening and overall their financial situation not being so good that they may not be able to -- or they may be blacklisted by many agencies? They may not be able to participate in many more contracts and overall the competitive intensity going down? Or you feel that more such players will come in now?

No. So for sure. So I -- we are waiting for the consolidation to happen. What is happening now, the financial qualification requirement for all such solar projects is not very stringent. Now what we see the trend getting diversed is that for all -- from all the PSU companies, large-size project orders that are coming, they are coming with the models and therefore, the project cost is in the high end. There, I'm expecting that the small players will not be competing, right? And then we have a better opportunity to get into. So that would be the kind of scenario in maybe the Q3 and Q4. The next and huge pipeline that I have already told is projected. So the consolidation for sure will happen. On the existing orders that they are bagging, you must be tracking the news in the market. Few of them have been already terminated. I mean disorders that they had back, right, at the -- I mean very -- we'll say 50% discounted price from the battery cost. And the battery cost was, let's say, around USD 75, USD 80 per kilowatt hours, their tender price was around 45%, right? And then -- it was a non-moving drag kind of orders. And therefore, I mean, the order was terminated. There are a few orders which have been again getting annulled because the -- even despite the fact that they have taken at a low price, but it still is not coming for the hybrid tariff appetite for the developers. And therefore, some of these new schemes are being launched, import under the mower schemes and then you see that if you get the customer benefits so that the hybrid tariff price will come under this thing. So all those things are frankly speaking disturbing this market and all those things. So I think all this consolidation for sure will happen. But this fiscal will probably continue like this in my opinion. But the consolidation has to happen. Otherwise, it will be a serious problem for the industry. Government is working on this. I have already told that for the Gen corridors, the government has taken a lot of actions. On the side, still production, if not in maybe Q3, but -- I mean, Q3, Q4, but the Q1 of the next financial many large peers are doing. Then I can -- and then the domestic cell capacity in the model side, they are increasing. So now it 35 gigawatt, it may ease up 100 these things. That would be the time when I say that the price level also will get consolidated. The government policies versus the actual requirement will all be getting settled, and then that would be the healthy time where -- and you can see that the themes should be in the right directions. But in substance because of the -- some of the industries, paralysis, I'd say, some of the policies which are to be implemented, but the industry is not ready. All those things are impacted everybody. I mean, a few of them switch they can keep on adding because of the IPO, they are just using for, but we are not into the race. And therefore, not that only we are in pub. Fortunately, I will say that we have a very healthy order position as on first 2026, '27, right? So I'm sorry, 2026. So for the -- for this financial year, at least despite the fact that there are great many ups and downs, but we will be around the guidance that are given to the market.

So is it now time that we forget about the Idera order?