Emmvee Photovoltaic Power CEO outlines growth strategy, capex plans, and margin sustainability

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Following a strong performance in the second quarter, Suhas Donthi, the Chief Executive Officer of solar PV module manufacturer Emmvee Photovoltaic, detailed the company's growth strategy, capacity expansion, and financial outlook. In an interview with CNBC TV18, Donthi expressed confidence in maintaining the current operational momentum, driven by significant additions to its manufacturing capabilities.

The company reported a substantial year-on-year increase in its second-quarter revenue, which grew to over ₹1,100 crore from ₹400 crore in the same period last year. Margins also expanded significantly to 35% from 23%. While acknowledging a low base effect, Donthi attributed the improved profitability to the company's strategic expansion into cell manufacturing, which has turned Emmvee Photovoltaic into an integrated solar manufacturer with TopCon capacity. He affirmed that the company is confident in sustaining its earnings before interest, tax, depreciation, and amortisation (EBITDA) margins within the guided range of 33% to 35%, similar to the performance seen in the last two quarters.

When asked about the revenue outlook for the full financial year, Donthi indicated that the company is confident of achieving its current run rate. This suggests a potential full-year revenue in the vicinity of ₹4,400 crore, he confirmed, given the company's performance and the historical trend of the second half of the year being stronger than the first.

Outlining the company's ambitious expansion plans, Donthi detailed a multi-phase capacity ramp-up. The company's current module capacity of 7.8 gigawatts (GW) is set to increase with an additional 2.5 GW getting commissioned this month. Furthermore, an integrated 6 GW of cell and module capacity will be added over the next 18 months. By the end of fiscal year 2027, Emmvee Photovoltaic aims to have a total module capacity of 16.3 GW. Cell manufacturing capacity is also slated for a major increase, from 2.94 GW to 8.9 GW by the beginning of fiscal year 2028.

This extensive growth will be funded by a capex plan of ₹5,500 crore extending until 2028. Donthi clarified the funding strategy, stating, "This is going to be funded in a phased manner. And we've already have internal accruals for the equity portion and there is 60% debt that is… already secured for this." He also provided an update on the company's balance sheet, noting that after repaying ₹1,621 crore, the long-term debt now stands at less than ₹100 crore.