Momentum Meets Policy Tailwinds

Research evidence excerpt

Momentum Meets Policy Tailwinds

arsh summer and high probability of an El Niño, we expect the tendering 45 Total RE tenders (ex wind) awarded (GW) 39.5

activity to pick up as power demand remains elevated in 2HFY27. Our estimates factor 6% y/y 38 35.3

growth in power demand in FY27E in a normalized weather and industrial activity environment, 30

with El Niño possibly driving additional upside. 23 15.4

15 12.2

Rooftop and solar pumps driving solar PV installations: The solar rooftop program (PM 8 6.2

FY22 FY23 FY24 FY25 FY26Suryaghar) has achieved ~9GW of installations in FY26, up from ~5GW in FY25. The solar agri . 0

pump scheme (PM Kusum) added ~7.5GW in FY26, up from 3.6GW in FY25. These subsidy Source: Industry reports, Jefferies

driven schemes that use DCR cells should account for 30-35% of India's annual installations

Exhibit 4 - Backward integration is capital-

in FY27. India's total installed solar power capacity stands at 154GW in Apr-26 (+3% m/m). intensive - few will succeed

Capex per GW (US$ mn)

100No extension for ALMM-II bodes well for cell backed players: The government has

announced that it won't be extending the 1st June 2026 deadline for domestic solar cells. Solar 75

cells used to manufacture modules (to be sold locally) must be sourced from government- 50

approved Indian manufacturers. Solar cell capacity in India stands at 40GW currently as

against module demand of 55-60GWdc. This is positive for cell backed players in India as they 25

Module Cell Wafer+Ingotare enjoying strong pricing power. . 0

Source: Industry reports, Jefferies

Government's wafer/ingot mandate benefits PV players with strong balance sheets: Govt

has mandated the use of domestic ingot+wafer for all solar projects effective June-2028

(except projects already bid out).