Narrative pivots from incubation-phase capex execution to value-unlock via demergers.

Sir, my question is on the Navi Mumbai Airport. So if you could just highlight the current status of this airport. And the follow-up question would be in initial days till the tariff gets decided, how will the revenues be booked for aero charges here?

I think the status is - we are pretty much on track there. Because of logistics and everything they are trying to formalize the formal launch it will sometimes be in April. Now the tariff order will get determined, but in the meantime, you are able to charge provisional tariff, and it will be done on the normal basis of provisional charge. And that is a well-established process, for which we've already filed. Once we receive formal clearances in about March, we'll highlight those numbers in our May presentation post the annual results. But all of that work is going on as per schedule. We don't expect any delay in any of that process.

Okay. And sir, another question is on the solar manufacturing side. How do you think about solar manufacturing order book currently? And how do you think about the U.S. market given the recent events that have happened?

I think we are pretty much at our current run rate of about 1 GW. So, we are pretty much at full capacity there already. Eventually, as we have already said before, the final target is to have 10 GW of capacity. But today, for our actual capacity, we are at practically at 100%, which is roughly about 4.5 GW annual. No near-term changes in that and no near-term changes in the forecast, we expect to run at about GW per quarter of sales.

And the impact of tariff orders on five airports is now completely baked in this quarter or like more of it is expected? I know for one of the airport it is still not there, and of course, Navi Mumbai is not there -- but you have remaining five all baked in?

For five airports Prateek, it's baked in this quarter. So in this quarter's numbers, you see the impact of the tariff change.

And in terms of that Adani Wilmar deal that while 13% stake has been sold already, the remaining 30% stake is expected to close within this financial year?

It is largely there, agreement is done. The agreement is subject to various antitrust approvals and competition approvals. Now they generally can be completed within sort of 6 weeks to say 30 weeks. So we expect somewhere in that range, all the competition approvals will be completed.

Thirdly, on your leverage position in this quarter, we have not given the net debt number for quarter end, because you're not giving cash number -- what is the net debt number or cash number whichever number if you can give. And third question is the capex for nine months and the full year capex target for the company?

No. We have given the number, if you go to our earnings presentation on Page 31, we have given the number, INR 33,171 crores, which is a non-current external debt number provided which is as of March '24 and then as of December, net external debt of INR 46,858 crores is provided. It's on Page 31 of the presentation. The non-current debt is INR 46,858 crores and cash on balance sheet is ~INR 5,800 crores. So on capex side, we have a slight variation because of various approvals etc, which is related to PVC project and is slight timing change in the green hydro ecosystem of about INR 4,000 crores and in the PVC of about INR 7,000 crores. So aside from that INR 11,000 crores, our capex on rest of the business is on track. So, we had highlighted guideline of around INR 80,000 crores and our planning is at INR 69,562 crores. So for nine months, we are at roughly around INR 21,000 crores.

Guideline for this year was INR 80,000 crores, your target is INR 69,000 crores and for nine-months what would be that number?

INR 7,000 crores variation is in PVC project and about INR 4,000 crores is timing difference in ANIL ecosystem in terms of where the prep work is going on. So, there is a timing difference about INR 4,000 crores in the ANIL Green Hydrogen Ecosystem. So for nine months, we are at roughly around INR 21,000 crores.

Okay. So over like INR 50,000 crores is expected in the last quarter?

I will give you a number what will not come in due to timing difference, what will be billing. What you will see is that roughly the INR 28,000 crores of the ANIL ecosystem will not come in this year from an accounting perspective. So that is one big number. And because of the way we will complete formal completion of Navi Mumbai Airport will take place in April. So consequently that number will also come up next year. So this year, that number will be round about INR 11,000 crores. So INR 40,000 crores is just these two timing differences.

Okay. So may be in this year's financials, reported capex would be around INR 30,000 crores eventually vs nine month of INR 21,000 crores.

Correct. That would be the correct number because then in the next year, Navi Mumbai capex of INR 11,000 crores to INR 12,000 crores will be added simply because of completion. And then consequently, as we start on the ANIL ecosystem, those numbers will come up in the next year from accounting perspective.

Actually, I have a few questions primarily on the ANIL ecosystem. Firstly, there has been a sequential drop in exports when it comes to modules, if you can elaborate on that. Second, how do we see the realization in the domestic DCR market? And what's your view going forward? Third, the 10 GW target which you are looking for, is it still 2028? Or are we preponing that?

I think that 10 GW is going as originally planned, it would not be preponed. If there is a change, we will update. In relation to the sequential change, that's how the customers scheduling work. And as the scheduling washes through, the numbers will come back to the normal schedules that the customers have. So that's largely just the ordering schedule of the customers for the overseas exports orders.

And the view on the DCR market, the realization right now and how do we see it going forward? Because we still saw a drop in EBITDA margin to this quarter -- so has there been some pressure in the domestic market?

So I think if I understand your question correctly, the margin between DCR and exports is roughly in single digit, low single digits. So there is no significant -- it doesn't significantly alter the EBITDA profile of the business in terms of DCR or exports at the moment.

Okay. Got it. Got it. And just one last question. If you can share the WTG sales and EBITDA for the year, that will be helpful?

Yes. So, for WTG or the wind manufacturing, the total income for 9 months is roughly INR 1,700 crores and EBITDA is close to INR 340 crores.

Just wanted to get some idea on the solar manufacturing. So on the domestic side, is it the sales to the group company or external?

Solar is external. Solar modules is external. Wind turbine is largely to AGEL.

Sir, my question pertains to the solar manufacturing side. So, while you have reported revenue growth of 38% and EBITDA 34%. And on subsequent slide, we mentioned that the realization and the operating efficiency both has increased. So, just wanted to understand that is it because of the higher proportion of the WTG which has reduced the margin or, I would say, dilute EBITDA margin?

I think on the margin question, if you go back to our previous presentation, the margin largely is in line with what we indicated at that time that the excessive margin of previously will not be continued, largely because of the fact that the realization of the modules is now more normalized than the number that was there previously. But not related to specifically to the wind turbine, as it increased this percentage.

Okay. So if I consider the normalized scenario, the commentary says that the realization has improved and the efficiency has also improved for the solar manufacturing. So, it's margin accretive in the normalized scenario?

Correct. And that's likely to continue in the future as more and more indigenization keeps happening.

Okay. And sir, just on the clarification on the capex side, which you have mentioned and connecting that with your slide on the AWL space where you mention how the cash would be invested. So I understand that INR 78,000 crores of what we are planning to invest is inclusive of the projects which we are considering like the green hydrogen ecosystem and all?

Yes. Those outcome do not change. It is just that, like, for example, one of the things is Navi Mumbai airport is relatively complete. It will formally complete in April. So, the numbers won't come up in that period when it completes. Then the timing difference which is there in ANIL ecosystem. So more or less the -- we generally don't assume and we don't forecast on potential capex that we might do. These are all known projects that we've already highlighted.

Okay. That indication I was looking at. And this also INR 80,000 crores, which we have earlier said for this year, we will be ending by spending only INR 30,000 crores. I understand the accounting difference, but the spend would be INR30,000 crores.

Yes. On books, you will see a number on that yes.

Okay. So for FY'26, as such we don't need to raise as per our current schedule of capex if we conclude on Adani Wilmar?

Adani Wilmar will conclude. So yes, so we said that we will raise about $2.5 billion. So that's roughly what we have raised - $0.5 billion in QIP and about $2.0 billion here, roughly.

Okay. And sir, do we have any major loan repayments coming up in, say FY '26 and what will be the quantum of loan repayments FY'26?

We are normal. The short-term debt is very very limited at AEL. So materially, it will be around INR 3,300 crores in Airports, for which with the cash held at AEL is INR 5,800 crores.

Okay. So basically, what I understood from the previous lines is that you said around INR 39,000 crores, INR 28,000 crores from ANIL and INR 11,000 crores of airports will be spent in the next year?

Yes. That will be booked in next year. ANIL and Airports will be spent and booked.

Okay. Understood, sir. And sir, see, for other businesses, like the data center or in Carmichael or anything, do you need any capex there?

No, data center other than what's flagged, it remains same. For Carmichael we all know that all capex is done.

Okay. And after Navi Mumbai Airport, will the other airports also need capex?

Navi Mumbai itself will need capex.

So that will begin from after this phase?

Yes, after the first year itself, new capex will start.

And so from the copper, how much capex is required in next year for copper business?

Copper capex is mostly done. It's just the business is now ramping up. And we expect the business to ramp up in the next financial year fully.

Okay. So we expect to like have peak utilization next year itself.

The next financial year, there can be plus/minus say the normal scheduling changes, but towards the first quarter of the following year.

My first question is on the IRM side. So, we are seeing a material drop in the volume and earnings per se. Like would you say this was just one-off time and it will come back to the normal run rate or for next few quarters, we will settle somewhere in between?

So as far as the IRM business is concerned, as we have been saying in the past also, we consider it also as a service function where we are actually supplying the fuel need of our customers. Considering that there is a good domestic coal availability for customers, the market has come down. So, if you really see how things are happening in India in terms of domestic coal production and the power demand, it will have similar type of figures for at least a few quarters, but then it has to go up -- and also, as I said in the statement, we are trying to see how we're going to have more into services like by adding Sagarmala or by adding some other activities where we can take the advantage of being there in the service function for last two decades. So you will see a volume getting back but then we have a composition of coal trading plus services.

Okay. Understood. Second, my question is on the capex, so just to get myself clear. First, we are talking about ANIL ecosystem capex, where we'll be consuming internally the module and the wind turbines? So that INR 28,000-30,000 crores, roughly around about number, that will come when they'll start consuming for clean hydrogen projects right? So, are we looking to for next year?

I think the capex on the manufacturing ecosystem is completed. Mostly, it's just that the final bit of completion of ingot-wafer is going on. And at some point in time, the foundry will start. So that's only capex left. There is ecosystem capex, which we encourage, but others are also investing there, and it's not just us. Now in wind turbine, yes, most of the wind turbine capacity is being utilized by AGEL at the moment. because it's a special 5.2-MW wind turbine is not available anywhere else. And AGEL's needs are quite large. The capex that ANIL ecosystem will happen is that when we move towards the generation of the green electron from the production of green hydrogen. So, the site work and all the prep work is going on at the moment. As when that picks up as you see, just for our sister firm Adani Green, once that picks up, the capex happens quite rapidly. On the site prep and all those work goes, so once that starts, which is the ecosystem for the production of green hydrogen, then the capex will pick up rapidly.

Understood. So what my question is that -- so currently, they're selling 1 GW of module every quarter. And if you, let's say, sell 1 GW for FY'26 entirely 4 GW then this ANIL ecosystem capex will be very low, right, next year also?

Yes, yes. Because manufacturing part of the green hydrogen ecosystem, which is ANIL's manufacturing area, that investment we've already completed.

So as per your estimate, when we will stop selling modules in external market and then consuming basically for our ecosystem, when we'll hit that timeline?

Modules, we'll continue to sell externally a very large amount. But overall we will also have this module capacity itself also rising. So, it will never be that we will be consuming the models ourselves only.

So next year we will have a module capacity of what? Like 10 GW is a target for FY'28, right?

Yes, 4.5 GW.

So, next year also cash capex will be somewhere about INR30,000 crores or INR35,000 crores, right, because ANIL ecosystem capex will still be a year away from there?

Correct.

My question is on commercial mining. So is this large PBIT loss which has been put in the segment. This is also largely due to MTM loss which you said in the beginning. Is that right? And, also what is the segment EBITDA during this quarter in the segment?

So just on the MTM, it's not an MTM loss on any external debt or external contract we have. It's just basically an artifact of how we invest equity overseas. All of that is not just invested as pure equity, it is also invested as shareholder loans. So, we booked the movement on the shareholder loan. It is not payable, it's non-cash. And it's just that item. And the second part of your question on segment of Carmichael mine financials income was roughly INR 5,400 crores for nine months and EBITDA of INR 763 crores.

So even the EBITDA is like sort of negative for the same reason which you mentioned for the quarter?

Yes, that is largely because of the MTM.

And Okay. On data centers, we have around 270 MW of capacity under construction and we have order book of around 210 MW, while the commercialized capacity is only around 30 megawatts? How are we, in the context of current environment around chip prices, which may get impacted because of the new thing which has come up, like how are the contracts for us work? We have talked about the 210 MW of order book. So how are the chip contracts like sort of work here? And how do you see?

Prateek, that is already customer-driven, so all the contracts are afoot. There's no change in that. We have roughly 210 MW under near-term completion, so that will be done. And we're just another roughly 20 MW came online this year itself. So there's no change in the construction and development plan of that business.

Sir, I just need a clarification on the PVC. You mentioned that on INR 7,000 crores of capex plan, is it postponed or there is a change of plan. So just wanted to understand on the PVC side of the capex?

It's just that given all the approvals required etc. here, construction, the scheduling means that a lot of that capex will come in the following year rather than this accounting year from booking prospective.

Just that for PVC there is a timing difference?

Yes. It's timing. It will get complete, the project is scheduled to complete in Calendar '27.

Okay. And sir, just wanted to understand your thought on obviously, on the rupee depreciation. So what is its impact, management is foreseeing impacting our debt profile and our capability on fund raising as well because of the INR/USD volatility?

No, we plan for what is called the long run volatility curve of roughly about 4%. So, if you look at the last or any 10-year period in the last year, you'll see a volatility curve around about 3.2 to 3.7, independent of what happens in 1 or 2 years. But because we cover that volatility curve over the 10-year period, there is no impact on our finance charges because of the rupee volatility.

Okay. So as I understand, in our projection as well, so whenever you are planning for the overseas debt or in net commercial borrowings or whatever, we are taking the 2% depreciation impact in our projections. Probably in the linear or some of the other models, but we are taking considering the 4% depreciation?

We assume that, that occurs. So consequently, we plan that way already.