According to the latest forecast by CRISIL Ratings, the introduction of the Approved List of Models and Manufacturers (ALMM) starting April 1, 2024, is expected to uphold operating margins for domestic module manufacturers at a robust 12-14% during fiscal year 2025, aligning with the levels projected for the current fiscal year.
The resilience is expected to be reinforced by buoyant domestic and export demands. The agency noted a significant upturn in profitability for the current fiscal year, nearly doubling over the previous period, attributed to an increasing proportion of exports, which command a premium of 15-20% over domestic prices. Despite the surge in imports due to the absence of ALMM, the rise in export share is anticipated to compensate adequately. The reintroduction of ALMM is poised to bolster domestic demand for Indian modules.
As reported by SAUR ENERGY, CRISIL Ratings anticipates that heightened sales volumes, both in domestic and export markets, coupled with healthy margins, will result in robust earnings for module manufacturers under its rating purview for the current and upcoming fiscal years. This, in turn, will facilitate capital expenditure for capacity expansion and technology upgrades, ensuring the sustenance of sound credit profiles for these manufacturers.
