NEXTRACKER INC., 10-K filed on 5/28/2024
Annual Report
v3.24.1.1.u2
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Mar. 31, 2024
May 20, 2024
Sep. 29, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --03-31    
Document Period End Date Mar. 31, 2024    
Document Transition Report false    
Entity File Number 001-41617    
Entity Registrant Name Nextracker Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 36-5047383    
Entity Address, Address Line One 6200 Paseo Padre Parkway    
Entity Address, City or Town Fremont    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94555    
City Area Code 510    
Local Phone Number 270-2500    
Title of 12(b) Security Class A Common Stock, $0.0001 par value    
Trading Symbol NXT    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 2.5
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement relating to its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K where indicated. Such Proxy Statement will be filed with the United States Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates.    
Entity Central Index Key 0001852131    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   141,291,252  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   3,856,175  
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Audit Information
 12 Months Ended
Mar. 31, 2024
Audit Information [Abstract]  
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location San Jose, California
Auditor Firm ID 34
v3.24.1.1.u2
Consolidated balance sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Current assets:    
Cash and cash equivalents $ 474,054 $ 130,008
Accounts receivable, net of allowance of $3,872 and $1,768, respectively 382,687 271,159
Contract assets 397,123 297,960
Inventories 201,736 138,057
Other current assets 312,635 35,081
Total current assets 1,768,235 872,265
Property and equipment, net 9,236 7,255
Goodwill 265,153 265,153
Other intangible assets, net 1,546 1,321
Deferred tax assets and other assets 474,612 273,686
Total assets 2,518,782 1,419,680
Current liabilities:    
Accounts payable 456,639 211,355
Accrued expenses 82,410 59,770
Deferred revenue 225,539 176,473
Total current liabilities 891,486 507,426
Long-term debt 143,967 147,147
TRA liability and other liabilities 491,301 280,246
Total liabilities 1,526,754 934,819
Commitments and contingencies (Note 12)
Redeemable non-controlling interests 0 3,560,628
Stockholders' deficit:    
Accumulated deficit (3,066,578) (3,075,782)
Additional paid-in-capital 4,027,560 0
Accumulated other comprehensive income 17 0
Total Nextracker Inc. stockholders' equity (deficit) 961,013 (3,075,767)
Non-controlling interest 31,015 0
Total stockholders' equity (deficit) 992,028 (3,075,767)
Total liabilities, redeemable interests and stockholders' equity (deficit) 2,518,782 1,419,680
Related Party    
Current liabilities:    
Other current liabilities 0 12,239
Nonrelated Party    
Current liabilities:    
Other current liabilities 126,898 47,589
Common Class A    
Stockholders' deficit:    
Class of common stock, price par value, shares authorized, issued and outstanding 14 5
Common Class B    
Stockholders' deficit:    
Class of common stock, price par value, shares authorized, issued and outstanding $ 0 $ 10
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Consolidated balance sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Allowances for doubtful accounts $ 3,872 $ 1,768
Common Class A    
Common stock, par or stated value per share (in USD per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 900,000,000 900,000,000
Common stock, shares, issued (in shares) 140,773,223 45,886,065
Common stock, shares, outstanding (in shares) 140,773,223 45,886,065
Common Class B    
Common stock, par or stated value per share (in USD per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares, issued (in shares) 3,856,175 98,204,522
Common stock, shares, outstanding (in shares) 3,856,175 98,204,522
v3.24.1.1.u2
Consolidated statements of operations and comprehensive income - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Income Statement [Abstract]      
Revenue $ 2,499,841 $ 1,902,137 $ 1,457,592
Cost of sales 1,686,792 1,615,164 1,310,561
Gross profit 813,049 286,973 147,031
Selling, general and administrative expenses 183,571 96,869 66,948
Research and development 42,360 21,619 14,176
Operating income 587,118 168,485 65,907
Interest expense 13,820 1,833 34
Other (income) expense, net (34,699) (2,431) 765
Income before income taxes 607,997 169,083 65,108
Provision for income taxes 111,782 47,750 14,195
Net income and comprehensive income 496,215 121,333 50,913
Less: Net income attributable to Nextracker LLC prior to the reorganization transactions 0 117,744 50,913
Less: Net income attributable to redeemable non-controlling interests and non-controlling interests 189,974 2,446 0
Net income attributable to Nextracker Inc. $ 306,241 $ 1,143 $ 0
Earnings per share attributable to the stockholders of Nextracker Inc.      
Basic (in USD per share) [1] $ 3.97 $ 0.02  
Diluted (in USD per share) [1] $ 3.37 $ 0.02  
Weighted-average shares used in computing per share amounts:      
Basic (in shares) [1] 77,067,639 45,886,065  
Diluted (in shares) [1] 147,284,330 145,851,637  
[1]
(1) For fiscal year 2023, basic and diluted income per share is applicable only for the period February 9, 2023 through March 31, 2023, which is the period following the initial public offering ("IPO") and the related Transactions. See Note 8 for the calculation of shares used in the computation of earnings per share and the basis for the computation of earnings per share.
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Consolidated statements of redeemable interest and stockholders' deficit / parent company equity (deficit) - USD ($)
Total
Common Class A
IPO
Common Class B
Preferred Stock
Redeemable preferred units
Preferred Stock
Redeemable non-controlling interests
Accumulated net parent investment
Common Stock
Common Class A
Common Stock
Common Class A
IPO
Common Stock
Common Class B
Additional paid-in-capital
Additional paid-in-capital
Common Class A
IPO
Additional paid-in-capital
Common Class B
Accumulated deficit
Accumulated other comprehensive income
Total Nextracker Inc. stockholders' equity (deficit)
Total Nextracker Inc. stockholders' equity (deficit)
Common Class A
IPO
Total Nextracker Inc. stockholders' equity (deficit)
Common Class B
Non-controlling interests
Redeemable beginning balance at Mar. 31, 2021       $ 0 $ 0                          
Noncontrolling interest, beginning balance at Mar. 31, 2022 $ 0         $ (3,035,000) $ 0   $ 0 $ 0     $ 0 $ 0 $ 0     $ 0
Beginning balance (in shares) at Mar. 31, 2021             0   0                  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Stock-based compensation expense           3,048,000                        
Net income 0                                  
Net income           50,913,000                        
Issuance of Series A redeemable preferred units as dividend to parent and cancellation of common shares       500,000,000   (500,000,000)                        
Paid-in-kind dividend for Series A redeemable preferred units       4,168,000                            
Paid-in-kind dividend for Series A redeemable preferred units           (4,168,000)                        
Net transfers to Parent           (8,875,000)                        
Net income prior to reorganization transactions 50,913,000                                  
Redeemable end balance at Mar. 31, 2022       504,168,000 0                          
End balance (in shares) at Mar. 31, 2022             0   0                  
Noncontrolling interest, ending balance at Mar. 31, 2021 0         456,047,000 $ 0   $ 0 0     0 0 0     0
Noncontrolling interest, beginning balance at Mar. 31, 2023 (3,075,767,000)         0 5,000   10,000 0     (3,075,782,000) 0 (3,075,767,000)     0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Stock-based compensation expense 28,851,000         3,143,000       28,851,000         28,851,000      
Net income 1,143,000                                  
Net income           117,744,000                        
Paid-in-kind dividend for Series A redeemable preferred units       21,427,000                            
Paid-in-kind dividend for Series A redeemable preferred units           (21,427,000)                        
Net transfers to Parent           (31,544,000)                        
Net income prior to reorganization transactions 121,333,000                                  
Distribution to Yuma, Yuma Sub and TPG           (175,000,000)                        
Effect of reorganization transactions 149,917,000     (525,595,000) 265,564,000 110,119,000 $ 2,000     149,915,000         149,917,000      
Effect of reorganization transactions (in shares)             15,279,190                      
Issuance of Class A common stock sold in IPO   $ 693,781,000 $ 76,000         $ 3,000 $ 10,000   $ 693,778,000 $ 66,000       $ 693,781,000 $ 76,000  
Issuance of Class A common stock sold in IPO (in shares)             16,875 30,590,000 128,794,522                  
Use of IPO proceeds as consideration for Yuma's transfer of LLC common unit (693,781,000)                 (693,781,000)         (693,781,000)      
Use of IPO proceeds as consideration for Yuma's transfer of LLC common unit (in shares)                 (30,590,000)                  
Establishment of tax receivable agreement 36,864,000                 36,864,000         36,864,000      
Net income subsequent to reorganization transactions         2,446,000                          
Net income subsequent to reorganization transactions 1,143,000                       1,143,000   1,143,000      
Redemption value adjustment 3,292,618,000       3,292,618,000                          
Redemption value adjustment (3,292,618,000)                 (215,693,000)     (3,076,925,000)   (3,292,618,000)      
Effect of spin-off from Flex 0                                  
Redeemable end balance at Mar. 31, 2023       $ 0 3,560,628,000                          
End balance (in shares) at Mar. 31, 2023             45,886,065   98,204,522                  
Noncontrolling interest, ending balance at Mar. 31, 2022 0         (3,035,000) $ 0   $ 0 0     0 0 0     0
Noncontrolling interest, beginning balance at Mar. 31, 2024 992,028,000           14,000   0 4,027,560,000     (3,066,578,000) 17,000 961,013,000     31,015,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Stock-based compensation expense 56,783,000                 56,783,000         56,783,000      
Net income 306,241,000       171,937,000                          
Net income 324,278,000                       306,241,000   306,241,000     18,037,000
Net income prior to reorganization transactions 496,215,000                                  
Issuance of Class A common stock sold in IPO 552,009,000           $ 1,000     552,008,000         552,009,000      
Issuance of Class A common stock sold in IPO (in shares)             15,631,562                      
Use of IPO proceeds as consideration for Yuma's transfer of LLC common unit (552,009,000)               $ (2,000) (552,007,000)         (552,009,000)      
Use of IPO proceeds as consideration for Yuma's transfer of LLC common unit (in shares)                 (15,631,562)                  
Redemption value adjustment 822,635,000       822,635,000                          
Redemption value adjustment (822,635,000)                 (525,598,000)     (297,037,000)   (822,635,000)      
Effect of spin-off from Flex 3,868,543,000       (3,868,543,000)   $ 7,000   $ (7,000) 3,835,711,000         3,835,711,000     32,832,000
Effect of Flex's spin-off (in shares)             74,432,619   (74,432,619)                  
Shares exchanged by non-controlling interest holders 5,487,000           $ 1,000   $ (1,000) 22,826,000         22,826,000     (17,339,000)
Shares exchanged by non-controlling interest holders (in shares)             4,284,166   (4,284,166)                  
Total other comprehensive gain 17,000                         17,000 17,000      
Vesting of Nextracker Inc. RSU awards (in shares)             538,811                      
Value adjustment of tax receivable agreement 18,337,000                 18,337,000         18,337,000      
Reclassification of redeemable non-controlling interest 622,292,000       622,292,000         622,292,000         622,292,000      
Tax distributions (5,307,000)       (64,365,000)         (2,792,000)         (2,792,000)     (2,515,000)
Redeemable end balance at Mar. 31, 2024         $ 0                          
End balance (in shares) at Mar. 31, 2024             140,773,223   3,856,175                  
Noncontrolling interest, ending balance at Mar. 31, 2023 $ (3,075,767,000)         $ 0 $ 5,000   $ 10,000 $ 0     $ (3,075,782,000) $ 0 $ (3,075,767,000)     $ 0
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Consolidated statements of cash flows - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Cash flows from operating activities:      
Net income $ 496,215 $ 121,333 $ 50,913
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 4,363 4,626 11,146
Provision for credit losses 2,427 1,243 (1,429)
Non-cash other expense (67) 1,752 1,613
Stock-based compensation 56,783 31,994 3,048
Deferred income taxes (37,990) 25,990 (5,337)
Changes in operating assets and liabilities:      
Accounts receivable (113,955) (160,265) (45,458)
Contract assets (99,163) (7,084) (145,613)
Inventories (60,981) 25,062 (87,736)
Other current and noncurrent assets (104,171) (18,984) (18,003)
Accounts payable 245,374 (37,026) 35,818
Other current and noncurrent liabilities (42,468) 21,838 28,173
Deferred revenue (current and noncurrent) 82,606 120,472 15,243
Due to related parties 0 (23,282) 10,509
Net cash provided by (used in) operating activities 428,973 107,669 (147,113)
Cash flows from investing activities:      
Purchases of property and equipment (6,160) (3,183) (5,917)
Proceeds from the disposition of property and equipment 0 24 167
Purchase of intangible assets (500) 0 0
Net cash used in investing activities (6,660) (3,159) (5,750)
Cash flows from financing activities:      
Proceeds from bank borrowings and long-term debt 0 170,000 0
Repayments of bank borrowings 0 (20,000) 0
Net proceeds from issuance of Class A shares 552,009 693,781 0
Net proceeds from issuance of Class B shares 0 76 0
Purchase of LLC common units from Yuma, Inc. (552,009) (693,781) 0
Distribution to non-controlling interest holders (66,881) (175,000) 0
Net transfers (to) from Flex (8,335) 24,205 (8,656)
Other financing activities (3,051) (2,853) 0
Net cash used in financing activities (78,267) (3,572) (8,656)
Net increase in cash and cash equivalents 344,046 100,938 (161,519)
Cash and cash equivalents beginning of period 130,008 29,070 190,589
Cash and cash equivalents end of period $ 474,054 $ 130,008 $ 29,070
v3.24.1.1.u2
Description of Business and Organization of Nextracker Inc
 12 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of business and organization of Nextracker Inc. Description of business and organization of Nextracker Inc.
Nextracker Inc. and its subsidiaries (“Nextracker”, “we”, the “Company”) is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar projects around the world. Nextracker’s products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance. Nextracker has operations in the United States, Brazil, Mexico, Spain and other countries in Europe, India, Australia, the Middle East, and Africa.
Prior to the completion of the Transactions, as described in Note 6, Nextracker operated as part of Flex Ltd. (“Flex”) and not as a standalone entity. On December 19, 2022, Nextracker Inc. was formed as a Delaware corporation which was at the time a 100%-owned subsidiary of Yuma, Inc ("Yuma"), a Delaware corporation and former indirect wholly-owned subsidiary of Flex Ltd. Nextracker Inc. was formed for the purpose of completing the initial public offering of its Class A common stock (the "IPO") and other related Transactions, in order to carry on the business of Nextracker LLC.
On January 2, 2024, Flex closed the spin-off of all of its remaining interests in Nextracker to Flex shareholder (the "spin-off") and the Company is now operating as a standalone entity.
The Initial Public Offering, the follow-on offering and the separation from Flex.
On February 8, 2023, the Company's registration statement on Form S-1 relating to its IPO was declared effective by the Securities and Exchange Commission (“SEC”) and the shares of its Class A common stock began trading on the Nasdaq Global Select Market on February 9, 2023. The IPO closed on February 13, 2023, pursuant to which the Company issued and sold 30,590,000 shares of its Class A common stock at a public offering price of $24.00 per share, giving effect to the exercise in full of the underwriter's option to purchase additional shares. The Company received net proceeds of $693.8 million, after deducting $40.4 million in underwriting discounts. The Company used all of the net proceeds from the IPO to purchase 30,590,000 Nextracker LLC common units from Yuma (see Note 6).
On July 3, 2023 the Company completed a follow-on offering of Class A common stock and issued 15,631,562 shares of Class A common stock and received net proceeds of $552.0 million. All of the net proceeds were used by Nextracker to purchase 14,025,000 Nextracker LLC common units from Yuma, and 1,606,562 Nextracker LLC common units from TPG Rise Flash, L.P. (“TPG Rise”), an affiliate of TPG Inc. (“TPG”). Simultaneously, 14,025,000 and 1,606,562 shares of Class B common stock were surrendered by Flex and TPG, respectively, and cancelled. A proportionate share of redeemable non-controlling interest was reclassified to permanent equity as a result.
On October 25, 2023, pursuant to the terms of that certain Agreement and Plan of Merger, dated as of February 7, 2023 (the “Merger Agreement”), by and among Flex, Nextracker, Yuma, and Yuma Acquisition Corp., a wholly-owned subsidiary of Nextracker, Flex delivered to Nextracker the Merger Notice (as defined in the Merger Agreement) exercising Flex’s right to effect the transactions contemplated by the Merger Agreement. Concurrently, the Company filed a Registration Statement on Form S-4, including in a final prospectus filed with the SEC on October 27, 2023.
On January 2, 2024, Flex closed the spin-off of all of its remaining interests in Nextracker to Flex shareholders (See Note 6). Simultaneously, 74,432,619 shares of Class B common stock previously owned by Flex were cancelled, and an equivalent number of shares of Class A common stock were issued to Flex shareholders on a pro-rata basis of their ownership interest in Flex’s common stock.
v3.24.1.1.u2
Summary of Accounting Policies
 12 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of accounting policies Summary of accounting policies
Variable interest entities (“VIE”) and consolidation
Subsequent to the IPO, the Company's sole material asset is its member’s interest in Nextracker LLC. In accordance with the Nextracker LLC Operating Agreement, the Company was named the managing member of Nextracker LLC. As a result, the Company has all management powers over the business and affairs of Nextracker LLC and to conduct, direct and exercise full control over the activities of Nextracker LLC. Class A common stock issued in the IPO do not hold majority voting rights but hold 100% of the economic interest in the Company, which results in Nextracker LLC being considered a VIE. Due to the Company's power to control the activities most directly affecting the results of Nextracker LLC, the Company is considered the primary beneficiary of the VIE. Accordingly, beginning with the IPO, the Company consolidates the financial results of Nextracker LLC and its subsidiaries. Nextracker LLC common units held by Yuma, Yuma Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of Yuma ("Yuma Sub"), TPG Rise and the following affiliates of TPG: TPG Rise
Climate Flash Cl BDH, L.P., TPG Rise Climate BDH, L.P. and The Rise Fund II BDH, L.P. (collectively, the “TPG Affiliates”) were presented on the consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests,” up until the separation with Flex as redemption was outside of the control of the Company. As of March 31, 2024, redemption is no longer outside the control of the Company subsequent to the spin-off from Flex, and therefore the non-controlling interests owned by TPG Affiliates are now presented on the consolidated balance sheets as permanent equity under the caption "non-controlling interests."
Basis of presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for reporting financial information. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary to present the Company's financial statements fairly have been included.
Prior to the Transactions (as described in Note 6), Nextracker did not operate as a separate entity and stand-alone separate historical financial statements for Nextracker were not prepared. Accordingly, the consolidated financial statements for the period preceding the Transactions were derived from Flex’s historical accounting records and were presented on a carve-out basis and include allocations of certain costs from Flex incurred on Nextracker’s behalf. Such costs may not have represented the amounts that would have been incurred had Nextracker operated autonomously or independently from Flex during the period preceding the Transactions. All intercompany transactions and accounts within Nextracker have been eliminated.
The balance of the redeemable non-controlling interests was reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses and other comprehensive income or loss, or its estimated maximum redemption amount. The resulting changes in the estimated maximum redemption amount (increases or decreases) were recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. Prior to the separation from Flex, these interests were presented on the consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests" as redemption was outside of the control of the Company. As of March 31, 2024 (after the separation from Flex), due to the fact that the redemption is no longer outside the control of the Company, the non-controlling interests are now presented on the consolidated balance sheets as permanent equity under the caption "non-controlling interests."
Foreign currency translation
The reporting currency of the Company is the United States dollar (“USD”). The functional currency of the Company and its subsidiaries is primarily the USD. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other (income) expense, net in the accompanying consolidated statements of operations and comprehensive income when realized, and were not material for the fiscal years ended March 31, 2024, 2023, and 2022.
Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Estimates are used in accounting for, among other things, impairment of goodwill, impairment of long-lived assets, allowance for credit losses, provision for excess or obsolete inventories, valuation of deferred tax assets, warranty reserves, contingencies, operation accruals, and fair values of awards granted under stock-based compensation plans. Due to the long-term economic effects of the COVID-19 pandemic and geopolitical conflicts (including the Russian invasion of Ukraine and the Israel-Hamas conflict), there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to the COVID-19 pandemic and the Russian invasion of Ukraine and the Israel-Hamas conflict. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences maybe material to the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the consolidated financial statements.
Revenue recognition
The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers (“ASC 606”) for all periods presented. In applying ASC 606, the Company recognizes revenue from the sale of solar tracker systems, parts, extended warranties on solar tracker systems components and software licenses along with associated maintenance and support. In determining the appropriate amount of revenue to recognize, the Company applies the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) Nextracker satisfies a performance obligation. In assessing the recognition of revenue, the Company evaluates whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations. Further, the Company assesses whether control of the product or services promised under the contract is transferred to the customer at a point in time or over time.
The Company’s contracts for specific solar tracker system projects with customers are predominantly accounted for as one performance obligation because the customer is purchasing an integrated service, which includes Nextracker’s overall management of the solar tracker system project and oversight through the installation process to ensure a functioning system is commissioned at the customer’s location. The Company’s performance creates and enhances an asset that the customer controls as the Company performs under the contract, which is principally as tracker system components are delivered to the designated project site. Although the Company sources the component parts from third party manufacturers, it obtains control and receives title of such parts before transferring them to the customer because Nextracker is primarily responsible for fulfillment to its customer. The Company’s engineering services and professional services are interdependent with the component parts whereby the parts form an input into a combined output for which it is the principal, and Nextracker could redirect the parts before they are transferred to the customer if needed. The customer owns the work-in-process over the course of the project and Nextracker’s performance enhances a customer-controlled asset, resulting in the recognition of the performance obligation over time. The measure of progress is estimated using an input method based on costs incurred to date on the project as a percentage of total expected costs to be incurred. The costs of materials and hardware components are recognized as control is transferred to the customer, which is typically upon delivery to the customer site . As such, the cost-based input measure is considered the best measure of progress in depicting the Company’s performance in completing a tracker system.
Contracts with customers that result in multiple performance obligations include contracts for the sale of components and solar tracker system project contracts with an extended warranty and/or which include the sale of software solutions.
For contracts related to sale of components, Nextracker’s obligation to the customer is to deliver components that are used by the customer to create a tracker system and does not include engineering or other professional services or the obligation to provide such services in the future. Each component is a distinct performance obligation, and often the components are delivered in batches at different points in time. Nextracker estimates the standalone selling price (“SSP”) of each performance obligation based on a cost plus margin approach. Revenue allocated to a component is recognized at the point in time that control of the component transfers to the customer.
At times, a customer will purchase a service-type warranty with a tracker system project. Nextracker uses a cost plus margin methodology to determine the SSP for both the tracker system project and the extended warranty. The revenue allocated to each performance obligation is recognized over time based on the period over which control transfers. The Company recognizes revenue allocated to the extended warranty on a straight-line basis over the contractual service period, which is generally 10 to 15 years. This period starts once the standard workmanship warranty expires, which is generally 5 to 10 years from the date control of the underlying tracker system components is transferred to the customer. To date, revenues recognized related to extended warranty were not material.
Nextracker generates revenues from sales of software licenses of its TrueCapture and NX Navigator offerings, which are often sold separately from the tracker system. Software licenses are generally sold with maintenance services, which include ongoing security updates, upgrades, bug fixes and support. The software license and the maintenance services are separate performance obligations. Nextracker estimates the SSP of the software license using an adjusted market approach and estimates the SSP of the maintenance service using a cost plus margin approach. Revenue allocated to the software license is recognized at a point in time upon transfer of control of the software license, and revenue allocated to the maintenance service is generally recognized over time on a straight-line basis during the maintenance term. Revenues related to sales of software licenses were not material for the fiscal years ended March 31, 2024, 2023 and 2022 respectively.
Contract estimates
Accounting for contracts for which revenue is recognized over time requires Nextracker to estimate the expected margin that will be earned on the project. These estimates include assumptions on the cost and availability of materials including variable freight costs. Nextracker reviews and updates its contract-related estimates each reporting period and recognizes changes in estimates on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, Nextracker recognizes the total loss in the period it is identified.
Contract balances
The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities (deferred revenue) on the consolidated balance sheets. Nextracker’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. When billing occurs subsequent to revenue recognition, a contract asset results. Contract assets of $397.1 million and $298.0 million as of March 31, 2024 and March 31, 2023, respectively, are presented in the consolidated balance sheets, of which $141.4 million and $116.3 million, respectively, will be invoiced at the end of the projects as they represent funds withheld until the products are installed by a third party, arranged by the customer, and the project is declared operational. The remaining unbilled receivables will be invoiced throughout the project based on a set billing schedule such as milestones reached or completed rows delivered.
During the fiscal years ended March 31, 2024 and 2023, Nextracker converted $152.3 million and $74.9 million deferred revenue to revenue, respectively, which represented 72% and 70%, respectively, of the beginning period balance of deferred revenue.
Remaining performance obligations
As of March 31, 2024, Nextracker had $294.9 million of the transaction price allocated to the remaining performance obligations. The Company expects to recognize revenue on approximately 76% of these performance obligations in the next 12 months. The remaining long-term unperformed obligation primarily relates to extended warranty and deposits collected in advance on certain tracker projects.
Practical expedients and exemptions
Nextracker has elected to adopt certain practical expedients and exemptions as allowed under ASC 606, such as (i) recording sales commissions as incurred because the amortization period is less than one year, (ii) not adjusting for the effects of significant financing components when the contract term is less than one year, (iii) excluding collected sales tax amounts from the calculation of revenue and (iv) accounting for the costs of shipping and handling activities that are incurred after the customer obtains control of the product as fulfillment costs rather than a separate service provided to the customer for which consideration would need to be allocated.
Inflation Reduction Act of 2022 Vendor Rebates
On August 16, 2022, the Inflation Reduction Act of 2022 IRA was enacted into law, which includes a new corporate minimum tax, a stock repurchase excise tax, numerous green energy credits, other tax provisions, and significantly increased enforcement resources. Section 45X of the Internal Revenue Code of 1986, as amended 45X Credit was established as part of the IRA and is a per-unit tax credit earned over time for each clean energy component domestically produced and sold by a manufacturer.
The Company has executed agreements with certain suppliers to ramp up its U.S. manufacturing footprint. These suppliers produce 45X Credit eligible parts, including torque tubes and structural fasteners, that will then be incorporated into a solar tracker. The 45X Credit was eligible for domestic parts manufactured after January 1, 2023. The Company has contractually agreed with these suppliers to share a portion of the economic value of the credit related to Nextracker's purchases in the form of a vendor rebate. The Company accounts for these vendor rebate amounts as a reduction of the purchase price of the parts acquired from the vendor and therefore a reduction of inventory until the control of the part is transferred to the customer, at which point the Company recognizes such amounts as a reduction of cost of sales on the consolidated statements of operations and comprehensive income. For certain immaterial vendor rebates related to purchases that occurred prior to the execution of the agreement, the Company capitalized the cumulative impact of the vendor rebates, the
total of which is to be amortized over the life of the associated contract with the supplier, as a reduction of the prices of future purchases. During the fourth quarter of fiscal 2024, due to additional guidance published and after discussion with its vendors, the Company determined the amount of the 45X Credit vendor rebates it expects to receive in accordance with the vendor contracts and recognized a cumulative reduction to cost of sales of $121.4 million related to 45X Credit vendor rebates earned on production of eligible components shipped to projects starting on or after January 1, 2023. As of March 31, 2024, the Company had approximately $125.4 million in vendor rebates receivable included in other current assets, and approximately $3.0 million of deferred vendor consideration included in accrued expense on the consolidated balance sheet.
Fair value
The fair values of Nextracker’s cash, accounts receivable, and accounts payable approximate their carrying values due to their short maturities.
Concentration of credit risk
Financial instruments which potentially subject the Company to concentrations of credit risk are primarily accounts receivable, derivative instruments, and cash and cash equivalents.
Customer credit risk
Nextracker has an established customer credit policy, through which it manages customer credit exposures through credit evaluations, credit limit setting, monitoring and enforcement of credit limits for new and existing customers. Nextracker performs ongoing credit evaluations of its customers’ financial condition and makes provisions for credit losses based on the outcome of those credit evaluations. Nextracker evaluates the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collections and the age of past due receivables. To the extent Nextracker identifies exposures as a result of credit or customer evaluations, Nextracker also reviews other customer related exposures, including but not limited to contract assets, inventory and related contractual obligations.
The following table summarizes the activity in Nextracker’s allowance for credit losses during fiscal years 2024, 2023, and 2022:

Balance at
beginning
of year		Charges/(recoveries) to costs and expenses (1)Deductions/
Write-Offs		Balance at
end of
year
Allowance for credit losses:(In thousands)
Year ended March 31, 2022$3,595 $(21)$— $3,574 
Year ended March 31, 2023$3,574 $(1,054)$(752)$1,768 
Year ended March 31, 2024$1,768 $2,197 $(93)$3,872 
(1) Charges and recoveries incurred during fiscal years 2024 and 2023 are primarily for costs and expenses or bad debt and recoveries related to various distressed customers.
One customer accounted for greater than 10% of revenue in fiscal years 2023, and 2022, with revenue of $331.0 million, and $196.2 million, respectively, and greater than 10% of the total balance of accounts receivable, net of allowance for credit losses on receivables and contract assets as of March 31, 2024 and 2023, with balances of approximately 12% and 15%, respectively. This customer accounted for less than 10% of revenue in fiscal year 2024.
Additionally, another customer accounted for greater than 10% of revenue in fiscal year 2024 with revenue of $426.1 million, and greater than 10% of the total balance of accounts receivable, net of allowance for credit losses on receivables and contract assets as of March 31, 2024 with balances of approximately 16%.
Accounts receivable, net of allowance
Nextracker’s accounts receivable are due primarily from solar contractors across the United States and internationally. Credit is extended in the normal course of business based on evaluation of a customer’s financial condition and, generally, collateral is not required. Trade receivables consist of uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 90 days of the invoice date. Management regularly reviews outstanding accounts receivable and provides for estimated losses through an allowance for credit losses. In evaluating the level of the allowance for credit losses, Nextracker makes judgments regarding the customers’ ability to make required payments, economic events and other factors. As the financial conditions of Nextracker’s customers change, circumstances develop or additional information becomes available, adjustments to the allowance for credit losses may be required. When deemed uncollectible, the receivable is charged against the allowance.
Product warranty
Nextracker offers an assurance type warranty for its products against defects in design, materials and workmanship for a period ranging from five to ten years, depending on the component. For these assurance type warranties, a provision for estimated future costs related to warranty expense is recorded when they are probable and reasonably estimable, which is typically when products are delivered. The estimated warranty liability is based on our warranty model which relies on historical warranty claim information and assumptions based on the nature, frequency and average cost of claims for each product line by project. When little or no experience exists, the estimate is based on comparable product lines and/or estimated potential failure rates. These estimates are based on data from Nextracker specific projects. Estimates related to the outstanding warranty liability are re-evaluated on an ongoing basis using best-available information and revisions are made as necessary.
The following table summarizes the activity related to the estimated accrued warranty reserve for the fiscal years ended March 31, 2024 and 2023:
As of March 31,
20242023
(In thousands)
Beginning balance$22,591$10,485
Provision (release) for warranties issued (1)(4,459)13,099
Payments(5,621)(993)
Ending balance$12,511$22,591
(1)During fiscal year ended March 31, 2023, the Company identified a specific design issue with a non-core product, and recorded an additional $8.7 million charge to cost of sales on its consolidated statement of operations and comprehensive income, related to future remediation costs, which may include replacement parts and services.
Inventories
Nextracker’s inventory primarily consists of finished goods to be used and to be sold to customers, including components procured to complete the tracker system projects.
Prior to the separation from Flex, inventories were stated at the lower of cost (on a first-in, first-out basis) or net realizable value. Effective from the date of the spin-off, management elected to state its inventory at the lower of cost, determined on a weighted average basis, or net realizable value. This change in policy resulted in an immaterial impact to the Company's consolidated financial statements for the periods presented.
Property and equipment, net
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are recognized on a straight-line basis over the estimated useful lives of the related assets, with the exception of building leasehold improvements, which are depreciated over the term of the lease, if shorter. Repairs and maintenance costs are expensed as incurred. Property and equipment is comprised of the following:
Depreciable life
(In years)		As of March 31,
20242023
(In thousands)
Machinery and equipment
3 - 8
$10,623 $9,062 
Leasehold improvements
Up to 5
5,168 4,302 
Furniture, fixtures, computer equipment and software
3 - 7
11,783 10,080 
Construction-in-progress—3,051 1,111 
30,625 24,555 
Accumulated depreciation(21,389)(17,300)
Property and equipment, net$9,236 $7,255 
Total depreciation expense associated with property and equipment was approximately $4.1 million, $3.4 million, and $2.7 million in fiscal years 2024, 2023 and 2022, respectively.
Nextracker reviews property and equipment for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of property and equipment is determined by comparing the carrying amount to the lowest level of identifiable projected undiscounted cash flows the property and equipment are expected to generate. An impairment loss is recognized when the carrying amount of property and equipment exceeds the fair value. Management determined there was no impairment for the fiscal years ended March 31, 2024, 2023 and 2022.
Deferred income taxes
For purposes of these consolidated financial statements, prior to the IPO, Nextracker taxes were calculated on a stand-alone basis as if Nextracker completed separate tax returns apart from Flex (“Separate-return Method”). Following the IPO, Nextracker Inc. files a separate tax return. The income taxes as presented herein for the pre-IPO period, allocate current and deferred income taxes of Flex to Nextracker, in a manner that Nextracker believes as systematic, rational, and consistent with the asset and liability method prescribed by ASC 740, Income Taxes. Accordingly, as stated in paragraph 30 of ASC 740, total amounts allocated to Nextracker may not be indicative of Nextracker’s condition had Nextracker been a separate stand-alone entity during the pre-IPO periods presented.
Following the IPO, Nextracker accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. Nextracker recognizes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Nextracker accounts for uncertain income tax positions by recognizing the impact of a tax position in its consolidated financial statements when Nextracker believes it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authorities based on the technical merits of the position.
Income taxes
We operate in numerous states and countries and must allocate our income, expenses, and earnings under the various laws and regulations of each of these taxing jurisdictions. Accordingly, our provision for income taxes represents our total estimate of the liability for income taxes that we have incurred in doing business each year in all our locations. Annually, we file tax returns that represent our filing positions with each jurisdiction and settle our tax return liabilities. Each jurisdiction has the right to audit those tax returns and may take different positions with respect to income and expense allocations and taxable earnings determinations. Because the determination of our annual income tax provision is subject to judgments and estimates, actual results may vary from those recorded in our financial statements. We recognize additions to and reductions
in income tax expense during a reporting period that pertains to prior period provisions as our estimated liabilities are revised and our actual tax returns and tax audits are completed.
Tax receivable agreement
The Company has recorded a liability of $391.6 million and $230.3 million as of March 31, 2024 and 2023, respectively, which is included in TRA liabilities and other liabilities on the consolidated balance sheets, representing 85% of the estimated future tax benefits subject to the Tax Receivable Agreement ("TRA"). In U.S. federal, state and local income tax or franchise tax that we realize or are deemed to realize (determined by using certain assumptions) as a result of favorable tax attributes, will be available to us as a result of certain transactions contemplated in connection with our IPO, exchanges of Class A common stock or cash and payments made under the TRA. The actual amount and timing of any payments under these agreements, will vary depending upon a number of factors, including, among others, the timing of redemptions or exchanges by members of Nextracker LLC, the price of our Class A common stock at the time of the redemptions or exchanges, the extent to which such redemptions or exchanges are taxable, the amount and timing of the taxable income we generate in the future and the tax rate then applicable, and the portion of our payments under the tax receivable agreements constituting imputed interest. Estimating future taxable income is inherently uncertain and requires judgment. In projecting future taxable income, we consider our historical results as well as assumptions related to future forecasts for our various businesses by location. The impact of any changes in the total projected obligations recorded under the tax receivable agreements as a result of actual changes in the geographic mix of our earnings, changes in tax legislation and tax rates or other factors that may impact our actual tax savings realized will be reflected in income before taxes in the period in which the change occurs.
Goodwill and other intangibles assets
In accordance with accounting standards related to business combinations, goodwill is not amortized; however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Nextracker reviews identified intangible assets and goodwill for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Nextracker also tests goodwill at least annually for impairment. Refer to Note 5 for additional information about goodwill and other intangible assets.
Other current assets
Other current assets include short-term deposits and advances of $104.7 million and $29.3 million as of March 31, 2024 and 2023, respectively, primarily related to advance payments to certain vendors for procurement of inventory. In addition, it includes $125.4 million in vendor rebates receivable related to the 45X Credit as further described above under the section "Inflation Reduction Act of 2022 Vendor Rebates."
Deferred tax assets and other assets
Includes deferred tax assets of $438.3 million and $257.1 million as of March 31, 2024 and 2023, respectively, primarily related to the Company's investment in Nextracker LLC as further described in Note 13.
Accrued expenses
Accrued expenses include accruals primarily for freight and tariffs of $43.2 million and $44.6 million as of March 31, 2024 and 2023, respectively. In addition, it includes $39.2 million and $15.2 million accrued payroll as of March 31, 2024 and 2023, respectively.
TRA liability and other liabilities
TRA liability and other liabilities primarily include the liability of $391.6 million and $230.3 million as of March 31, 2024 and 2023, respectively, related to the amount expected to be paid to Yuma, Yuma Sub, TPG and the TPG affiliates as further described in Note 13. Additionally, the balance includes the long-term portion of standard product warranty liabilities of $6.4 million and $11.8 million, respectively, and the long-term portion of deferred revenue of $69.3 million and $35.8 million as of March 31, 2024 and 2023, respectively.
Redeemable non-controlling interests
Prior to the separation from Flex, the balance of the redeemable non-controlling interests was reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings and other comprehensive income, or its estimated maximum redemption amount. The resulting changes in the estimated maximum redemption amount used to be recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital.
The following table present a reconciliation of the change in redeemable non-controlling interests for the periods presented:
Fiscal year ended March 31,
20242023
(In thousands)
Balance at beginning of period$3,560,628 $— 
Establishment of non-controlling interests— 265,564 
Net income attributable to redeemable non-controlling interests171,937 2,446 
Reclassification of redeemable non-controlling interest(622,292)— 
Tax distributions(64,365)— 
Redemption value adjustments822,635 3,292,618 
Effect of spin-off from Flex(3,868,543)— 
Balance at end of period$— $3,560,628 
Stock-based compensation
Stock-based compensation is accounted for in accordance with ASC 718-10, Compensation-Stock Compensation. The Company records stock-based compensation costs related to its incentive awards. Stock-based compensation cost is measured at the grant date based on the fair value of the award. Compensation cost for time-based awards is recognized ratably over the applicable vesting period. Compensation cost for performance-based awards with a performance condition is reassessed each period and recognized based upon the probability that the performance conditions will be achieved. The performance-based awards with a performance condition are expensed when the achievement of performance conditions are probable. The total expense recognized over the vesting period will only be for those awards that ultimately vest and forfeitures are recorded when they occur. Refer to Note 7 for further discussion.
Leases
Nextracker is a lessee with several non-cancellable operating leases, primarily for warehouses, buildings, and other assets such as vehicles and equipment. The Company determines if an arrangement is a lease at contract inception. A contract is a lease or contains a lease when (i) there is an identified asset, and (ii) the customer has the right to control the use of the identified asset. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date for Nextracker’s operating leases. For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date. The Company has elected the short-term lease recognition and measurement exemption for all classes of assets, which allows Nextracker to not recognize ROU assets and lease liabilities for leases with a lease term of 12 months or less and with no purchase option Nextracker is reasonably certain of exercising. Nextracker has also elected the practical expedient to account for the lease and non-lease components as a single lease component, for all classes of underlying assets. Therefore, the lease payments used to measure the lease liability include all of the fixed considerations in the contract. Lease payments included in the measurement of the lease liability comprise the following: fixed payments (including in-substance fixed payments) and variable payments that depend on an index or rate (initially measured using the index or rate at the lease commencement date). As Nextracker cannot determine the interest rate implicit in the lease for its leases, the Company uses an estimated incremental borrowing rate as of the commencement date in determining the present value of lease payments. The estimated incremental borrowing rate is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms.
The lease term for all of Nextracker’s leases includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that Nextracker is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.
As of March 31, 2024 and 2023, current operating lease liabilities were $3.9 million and $1.9 million, respectively, which are included in other current liabilities on the consolidated balance sheets and long-term lease liabilities were $13.6 million and $1.5 million, respectively, which are included in other liabilities on the consolidated balance sheets. ROU assets are included in other assets on the consolidated balance sheets. Refer to Note 3 for additional information about Leases.
Recently issued accounting pronouncement
Accounting Standards Update ("ASU") 2023-07, Segment Reporting - Improvement to Reportable Segment Disclosures- In November 2023, the FASB issued a new accounting standard which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The annual reporting requirements of the new standard will be effective for the Company beginning in fiscal year 2025 and interim reporting requirements beginning in the first quarter of fiscal year 2026, with early adoption permitted. The Company expects to adopt the new guidance in fiscal year 2025 with an immaterial impact on its consolidated financial statements.
ASU 2023-09, Improvements to income Tax Disclosures - In December 2023, the FASB issued a new accounting standard to expand the disclosure requirements for income taxes, specifically related to rate reconciliation and income taxes paid. The new standard is effective to the Company beginning in fiscal year 2026 with early adoption permitted. The Company expects to adopt the new guidance in fiscal year 2026 with an immaterial impact on its consolidated financial statements.
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Leases
 12 Months Ended
Mar. 31, 2024
Lessee Disclosure [Abstract]  
Leases Leases
Nextracker has several commitments under operating leases for warehouses, buildings, and equipment. Leases have initial lease terms ranging from one year to five years.
The components of lease cost recognized under ASC 842 Leases were as follow (in thousands):
Fiscal year ended March 31,
202420232022
Operating lease cost$2,281$1,922$1,769
Amounts reported in the consolidated balance sheet as of March 31, 2024 and 2023 were as follows (in thousands, except weighted average lease term and discount rate):
As of March 31,
20242023
Operating Leases:
Operating lease ROU assets$17,390 $3,337 
Operating lease liabilities$17,457 $3,394 
Weighted-average remaining lease term (In years)4.32.6
Weighted-average discount rate5.6 %4.7 %
Other information related to leases was as follows (in thousands):
Fiscal year ended March 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,299$1,928$1,818
Non-cash investing activity:
Lease liabilities arising from obtaining ROU assets$15,873$756$1,718
Future lease payments under non-cancellable leases as of March 31, 2024 are as follows (in thousands):
Operating Leases
Fiscal year ended March 31,
2025$4,722 
20264,552 
20274,619 
20283,103 
20292,599 
Total undiscounted lease payments19,595 
Less: imputed interest2,138 
Total lease liabilities$17,457 
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Revenue
 12 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Based on Topic 606 provisions, the Company disaggregates its revenue from contracts with customers by those sales recorded over time and sales recorded at a point in time. The following table presents Nextracker’s revenue disaggregated based on timing of transfer—point in time and over time for the fiscal years ended March 31, 2024, 2023 and 2022:
Fiscal year ended March 31,

202420232022
(In thousands)
Timing of Transfer
Point in time$35,268$50,516$127,924
Over time2,464,5731,851,6211,329,668
Total revenue$2,499,841$1,902,137$1,457,592
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Goodwill and intangible assets
 12 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets
Goodwill
Goodwill relates to the 2015 acquisition of Nextracker LLC and the 2016 acquisition of BrightBox by Flex on behalf of Nextracker LLC. As of March 31, 2024 and 2023, goodwill totaled $265.2 million, respectively and is not deductible for tax purposes.
The Company evaluates goodwill for impairment at the reporting unit level annually, and in certain circumstances, such as when there is a change in reporting units or whenever there are indications that goodwill might be impaired. The Company performed its annual goodwill impairment assessment on January 1, 2024, and assessed qualitative factors to determine whether it is more likely or not that the fair value of its reporting units is less than its carrying amount. The qualitative
assessment required management to make various judgmental assumptions including but not limited to macroeconomic conditions, industry and market considerations, cost factors, financial performances, change in stock price. Management assessed each factor and evaluated whether the evidence, in aggregate, would indicate that it is more likely than not that the Company's reporting unit is less than its carrying amount. As a result of the qualitative assessment of its goodwill, the Company determined that no impairment existed as of the date of the impairment test because the fair value of its reporting unit exceeded its carrying value.
Other intangible assets
Nextracker amortizes identifiable intangible assets consisting of developed technology, customer relationships, and trade names because these assets have finite lives. Nextracker’s intangible assets are amortized on a straight-line basis over the estimated useful lives. The basis of amortization approximates the pattern in which the assets are utilized over their estimated useful lives. No residual value is estimated for any intangible assets. The fair value of Nextracker’s intangible assets is determined based on management’s estimates of cash flows and recoverability.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. An impairment loss is recognized when the carrying amount of an intangible asset exceeds its fair value. Nextracker reviewed the carrying value of its intangible assets as of March 31, 2024 and 2023, and concluded that such amounts continued to be recoverable.
The components of identifiable intangible assets are as follows:
As of March 31, 2024As of March 31, 2023
(In thousands)Weighted-average remaining useful life (in years)Gross
carrying
amount		Accumulated
amortization		Net
carrying
amount		Gross
carrying
amount		Accumulated
amortization		Net
carrying
amount
Trade name and other intangibles4.7$3,000$(1,454)$1,546$2,500$(1,179)$1,321
The gross carrying amount of intangible assets are removed when fully amortized. Total intangible asset amortization expense recognized in operations during the fiscal years ended March 31, 2024, 2023 and 2022 are as follows:
Fiscal year ended March 31,

202420232022
(In thousands)
Cost of sales$275$250$4,043
Selling general and administrative expense—9574,422
Total amortization expense$275$1,207$8,465
Estimated future annual amortization expense for the above amortizable intangible assets are as follows:
Amount
(In thousands)
Fiscal year ending March 31,
2025$350
2026350
2027350
2028321
2029175
Thereafter—
Total amortization expense$1,546
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The Transactions
 12 Months Ended
Mar. 31, 2024
Stockholders' Equity Note [Abstract]  
The Transactions The Transactions
The Company and Nextracker LLC completed the following reorganization and other transactions in connection with the IPO (collectively, referred to as the “Transactions”):
•Immediately prior to the completion of the IPO, the Company issued 128,794,522 shares of its Class B common stock to Yuma, Yuma Sub, and TPG Rise (not inclusive of those held by affiliated blocker corporations – see below) immediately following the Transactions and before giving effect to the IPO.
•Immediately prior to the completion of the IPO and as permitted under and in accordance with the limited liability company agreement of Nextracker LLC in effect prior to the IPO (the “Prior LLC Agreement”), TPG Rise exercised its right to have certain blocker corporations affiliated with TPG Rise each merge with a separate direct, wholly-owned subsidiary of the Company, with the blocker corporations surviving each such merger, in a transaction intended to qualify as a tax-free transaction. In connection with such blocker corporations’ mergers, the investors in each such blocker corporation received a number of shares of the Company’s Class A common stock with a value based on the Series A Preferred Units held by such blocker corporation for a total of 15,279,190 shares of the Company’s Class A common stock.
•Immediately prior to the closing of the IPO, Nextracker LLC made a distribution in an aggregate amount of $175.0 million (the “Nextracker LLC Distribution”). With respect to such Nextracker LLC Distribution, $21.7 million was distributed to TPG Rise and $153.3 million to Yuma and Yuma Sub in accordance with their pro rata units of Nextracker LLC. The Nextracker LLC Distribution was financed, in part, with net proceeds from the $150.0 million term loan under the senior credit facility with a syndicate of banks (the "2023 Credit Agreement"), as further discussed in Note 9.
•The Company used all the net proceeds from the IPO ($693.8 million) to purchase 30,590,000 Nextracker LLC common units from Yuma at a price per unit equal to $22.68.
•In connection with Yuma’s transfer to the Company of 30,590,000 Nextracker LLC common units, a corresponding number of shares of the Company’s Class B common stock held by Yuma were canceled.
•In connection with the IPO, the Company's repurchased all 100 shares of common stock previously issued to Yuma for an immaterial amount.
On February 8, 2023, the Company amended and restated its certificate of incorporation to, among other things, authorize 900,000,000 shares of $0.0001 par value Class A common stock, 500,000,000 shares of $0.0001 par value Class B common stock, and 50,000,000 shares of par value $0.0001 preferred stock.
On February 13, 2023, the members of Nextracker LLC entered into the Third Amended and Restated Limited Liability Company Agreement of Nextracker LLC (the "LLC Agreement") to, among other things, effect the Transactions described above and to appoint the Company as the managing member of Nextracker LLC. As of March 31, 2024, the Company beneficially owns 140,773,223 LLC common units after the completion of the IPO, the Transactions, the follow-on offering and the Spin Transactions described below.
The 2023 follow-on offering
On July 3, 2023, Nextracker completed an underwritten offering of 18,150,000 shares of Class A common stock, of which 15,631,562 shares were offered and sold by the Company and 2,518,438 shares were offered and sold by certain of the Company’s stockholders for approximately $662.5 million in total gross proceeds, including the full exercise of the underwriters’ option to purchase additional shares of Class A common stock. The Company received net proceeds of $552.0 million. The entire net proceeds from the sale of shares by Nextracker were used by Nextracker to acquire 14,025,000 Nextracker LLC common units from Yuma, and 1,606,562 Nextracker LLC common units from TPG Rise. Simultaneously, 14,025,000 and 1,606,562 shares of Class B common stock were surrendered by Flex and TPG, respectively, and cancelled.
As a result of this follow-on offering (referred to as the “Follow-on”), as of the closing date on July 3, 2023:
•Approximately $1.8 million of offering costs were paid by Flex.
•Immediately following the completion of the Follow-on, Flex (through Yuma and Yuma Sub), owned 74,432,619 shares of Class B common stock, representing approximately 51.45% of the total outstanding shares of the Company's outstanding common stock.
•Additionally, TPG owned 8,140,341 shares of Class B common stock representing approximately 5.63% of the total outstanding shares of the Company's outstanding common stock.
•The Company beneficially owned 62,053,870 LLC units, representing approximately 42.91% of the total common units of Nextracker LLC.
Exchange Agreement
The Company, Nextracker LLC, Yuma, Yuma Sub and TPG entered into an exchange agreement (the “Exchange Agreement”) under which Yuma, Yuma Sub and TPG (or certain permitted transferees thereof) have the right, subject to the terms of the Exchange Agreement, to require Nextracker LLC to exchange Nextracker LLC common units (together with a corresponding number of shares of Class B common stock) for newly-issued shares of Class A common stock of the Company on a basis, or, in the alternative, the Company may elect to exchange such Nextracker LLC common units (together with a corresponding number of shares of Nextracker Class B common stock) for cash equal to the product of (i) the number of Nextracker LLC common units (together with a corresponding number of shares of Class B common stock) being exchanged, (ii) the then-applicable exchange rate under the Exchange Agreement (which will initially be one and is subject to adjustment) and (iii) the Class A common stock value (based on the market price of our Class A common stock), subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and other similar transactions; provided further, that in the event of an exchange request by an exchanging holder, Nextracker may at its option effect a direct exchange of shares of Class A common stock for Nextracker LLC common units and shares of Class B common stock in lieu of such exchange or make a cash payment to such exchanging holder, in each case pursuant to the same economic terms applicable to an exchange between the exchanging holder and Nextracker LLC. As Nextracker LLC interests are redeemable upon the occurrence of an event not solely within the control of the Company, such interests are presented in temporary equity on the consolidated balance sheets.
The Separation Transactions
On October 25, 2023, Flex announced its plan to effect a spin-off of all of its remaining interests in Nextracker pursuant to the Merger Agreement to be effected through the following transactions (together, the “Spin Transactions”): (i) a court-approved capital reduction of Flex to be carried out pursuant to Section 78G of the Singapore Companies Act (the “Capital Reduction”), (ii) a distribution of all the shares of the common stock, par value $0.001, of Yuma (the “Yuma Common Stock”), which was a wholly-owned subsidiary of Flex that, directly or indirectly, held all of Flex’s remaining interest in Nextracker, by way of a distribution in specie to Flex shareholders (the “Spin Distribution”), (iii) the merger of Yuma with and into Yuma Acquisition Corp., with Yuma surviving the merger as a wholly-owned subsidiary of Nextracker (the “Merger”) and pursuant to which each share of Yuma Common Stock outstanding immediately prior to the Merger would automatically convert into the right to receive a number of shares of the Company's Class A common stock based on the Exchange Ratio (as defined in the Merger Agreement) (with cash payments to holders of shares of Yuma Common Stock in lieu of any fractional shares of our Class A common stock in accordance with the terms of the Merger Agreement), and (iv) the merger of Yuma with and into a wholly-owned limited liability company subsidiary of Nextracker, with such limited liability company surviving the merger as a wholly-owned subsidiary of Nextracker, undertaken shortly following the completion of the Merger.
On January 2, 2024, Flex closed the spin-off of all of its remaining interests in Nextracker to Flex shareholders. Immediately prior to the spin-off, Flex held 100% of the shares of Yuma Common Stock, and Yuma held, directly and indirectly through Yuma Sub, (i) 74,432,619 shares of Nextracker’s Class B common stock, par value $0.0001 per share, representing approximately 51.48% of the total outstanding shares of Nextracker’s common stock, based on the number of shares of Nextracker’s common stock outstanding as of December 29, 2023 and (ii) 74,432,619 of the common units of Nextracker LLC, representing approximately 51.48% of the economic interest in the business of Nextracker.
In addition to the Spin Distribution, Flex and Nextracker consummated the Merger, with Yuma surviving the Merger as a wholly-owned subsidiary of Nextracker. As a result of the Merger, each share of Yuma Common Stock issued and outstanding as of immediately prior to the closing of the Merger was automatically converted into the right to receive a number of shares of Class A common stock of the Company, based on an Exchange Ratio (as defined below), with cash payments to holders of shares of Yuma Common Stock in lieu of any fractional shares of Class A common stock of the Company in accordance with the terms of the Merger Agreement. The “Exchange Ratio” is equal to the quotient of (i) 74,432,619, which is the number of shares of Class A common stock of Nextracker held by Yuma and Yuma Sub (assuming the exchange by Yuma and Yuma Sub of all Nextracker LLC common units, together with a corresponding number of shares of Class B common stock of the Company
held by Yuma and Yuma Sub, for shares of Class A common stock of the Company) divided by (ii) the number of issued and outstanding shares of Yuma Common Stock immediately prior to the effective time of the Merger.
As the Merger represents a business combination of entities under common control, the transaction was accounted for in accordance with ASC 805-50, Business Combinations – Related Issues. Upon consummation of the Merger, the assets and liabilities of Yuma, particularly the redeemable interest in Nextracker, were recognized at their carrying value on the date of transfer as a transaction under common control. Once acquired, the redeemable noncontrolling interest was derecognized at its carrying amount. In addition, the Company recognized the issuance of its Class A common stock as consideration of the acquisition of Yuma, with the difference between the carrying value of the redeemable noncontrolling interest acquired and the par value of the Class A common stock recorded in additional paid-in capital.
Tax distributions
During fiscal year 2024, and pursuant to the LLC Agreement, Nextracker LLC made pro rata tax distributions to its non-controlling interest holders (Yuma, Yuma Sub and TPG) in the aggregate amount of approximately $66.9 million (Refer to Note 13).
v3.24.1.1.u2
Stock-based compensation
 12 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement, Additional Disclosure [Abstract]  
Stock-based compensation Stock-based compensation
The Company adopted the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan in April 2022 (the “LLC Plan”), which provides for the issuance of options, unit appreciation rights, performance units, performance incentive units, restricted incentive units and other unit-based awards to employees, directors, and consultants of the Company. Additionally, in connection with the IPO in February 2023, the Company approved the Second Amended and Restated 2022 Nextracker Inc. Equity Incentive Plan (the “NI Plan,” and collectively with the LLC Plan, the “2022 Plan”) to reflect, among other things, that the underlying equity interests with respect to awards issued under the LLC Plan shall, in lieu of common units of Nextracker LLC, relate to Class A common stock of Nextracker for periods from and after the closing of the IPO.
The 2022 Plan is administered by the Board or such other committee appointed by the Board. Awards granted under the 2022 Plan expire no more than 10 years from the grant date. The 2022 Plan authorized the grant of 12.9 million equity-based awards. As of March 31, 2024, the Company had approximately 5.1 million equity-based awards available for grant under the 2022 Plan.
During fiscal year 2024, the Company granted the following three types of equity-based compensation awards to its employees under the 2022 Plan:
•Restricted incentive unit awards ("RSU"), whereby vesting is generally contingent upon time-based vesting with continued service over a three-year period from the grant date, with a portion of the awards vesting at the end of each year.
•Options awards, whereby such awards will cliff-vest on the third anniversary of the grant date, subject generally to continuous service through vesting date; and
•Performance based vesting awards ("PSUs") whereby vesting is generally contingent upon (i) time-based vesting with continued service through March 31, 2026, and (ii) the achievement of certain metrics specific to the Company, which could result in a range of 0 - 300% of such PSUs ultimately vesting. The earned PSUs will cliff-vest on March 31, 2026.
On the date any performance-based vesting requirement is satisfied, the award holder will become vested in the number of awards that have satisfied the time-based vesting requirement, if any.
At the time of the completion of the Spin Transactions as described in Note 6, the Company assumed outstanding options, RSUs and PSUs granted to its employees pursuant to Flex’s 2017 Equity Incentive Plan, which were converted (based on the same value of the unvested awards) into options, RSUs and PSUs to purchase or receive an adjusted number of shares of Class A common stock pursuant to the 2022 Plan.
Stock-based compensation expense
The following table summarizes the Company’s stock-based compensation expense:
Fiscal year ended March 31,

202420232022
(In thousands)
Cost of sales$10,764$12,794$1,526
Selling, general and administrative expenses38,32519,2001,522
Research and development7,694——
Total stock-based compensation expense (1)$56,783$31,994$3,048
(1)Prior to the separation from Flex as described in Note 6, the expense included an allocation of Flex’s corporate and shared functional employee expense of immaterial amounts. Additionally, during fiscal year 2024, an immaterial number of awards were forfeited due to employee terminations.
Cumulative expense upon IPO and modification of awards
In connection with the IPO and the approval of the NI Plan, all awards previously issued under the LLC Plan were determined to be modified. The modification of the awards granted under the LLC Plan, pre-IPO, were concluded to qualify as a Type I probable-to-probable modification (in accordance with ASC 718-20-55), which resulted in an increase in the total fair value of such awards of $12.3 million, with the Company recording an immaterial amount of incremental stock-based compensation expense related to such modification during the fiscal year ended March 31, 2023.
Considering that the vesting of the awards granted under the 2022 Plan was contingent on an IPO, which occurred on February 9, 2023, the Company recognized $23.3 million of cumulative stock-based compensation expense for all awards outstanding under the 2022 Plan as of that date.
As of March 31, 2024, the total unrecognized compensation expense for unvested awards under the 2022 Plan and the related remaining weighted average period for expensing is summarized as follow:
Unrecognized compensation expense
(in thousands)
Weighted- average remaining period
(in years)
Options$17,490 2.0
RSU42,218 0.8
PSU (1)23,213 1.4
Total unrecognized compensation expense$82,921 
(1)Excludes the expense associated to 292,958 PSUs awards that do not meet the criteria for a grant date under ASC 718 as of March 31, 2024.
Determining fair value — RSU awards
Valuation and Amortization Method - The Company determined the fair value of RSUs granted in fiscal year 2024 under the 2022 Plan based on the closing price per share of its Class A common stock as of the grant date of the awards. The compensation expense is generally recognized on a straight-line basis over the respective vesting period.
The valuation of RSUs granted under the 2022 Plan, during fiscal year 2023 (prior to the IPO) was determined in accordance with the guidance provided by the American Institute of Certified Public Accountants Practice Aid, “Valuation of Privately-Held-Company Equity Securities Issued as Compensation.” Application of these approaches involves the use of estimates, judgment and assumptions that are highly complex and subjective, such as those regarding our expected future revenue and EBITDA, discount rates, market multiples, the selection of comparable companies and the probability of possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact our valuations as of each valuation date and may have a material impact on the valuation of our common stock.
Determining fair value — Options and PSU awards
Valuation and Amortization Method - The Company estimated the fair value of Options awards granted in fiscal year 2024 under the 2022 Plan, using a Black-Scholes option pricing model.
The fair values of Options awards granted in fiscal year 2023 and PSU awards granted in fiscal years 2024 and 2023, under the 2022 Plan, were estimated using Monte-Carlo simulation models, which is a probabilistic approach for calculating the fair value of the awards.
The compensation expense is generally recognized over the respective vesting period for the awards. For awards without performance conditions, the expense is recognized on a straight-line basis, for awards with a performance condition, the expense is recognized on a graded basis.
Expected volatility - Volatility used in the Black-Scholes option pricing, or in the Monte Carlo simulation, is derived from the historical volatility of Nextracker's Peer Group. The service period of options and PSU awards granted in fiscal year 2024 is three years, respectively. The service period of options and PSU awards granted in fiscal year 2023 is four years, and three years respectively.
Risk-Free Rate assumptions - The Company bases the risk-free interest rate used in the Monte Carlo simulation based on the continuously compounded risk-free rate in the Monte Carlo simulations to calculate the drift rate of the Company and peer group stock prices. The risk-free rate of return was calculated using the U.S. Treasury daily yield curve.
The fair value of the Company's awards granted under the 2022 Plan was estimated based on the following assumptions:
Fiscal year ended March 31,
20242023
Expected volatility65%
65% - 70%
Expected dividends—%—%
Risk-free interest rate
3.8% - 4.6%
2.5% - 2.7%
Awards activity
The following table summarizes the RSU awards activity under the 2022 Plan:
Fiscal year ended March 31,
2024
Number of RSUsWeighted average grant date fair value per share
Unvested RSU awards outstanding, beginning of fiscal year2,002,419 $20.40
Granted1,381,092 41.55
Vested(538,811)21.33
Forfeited (1)(126,567)26.93
Unvested RSU awards outstanding, end of fiscal year2,718,133 $31.37
(1)Awards forfeited due to employee terminations.
The weighted average grant date fair value of RSU awards granted during the fiscal year ended March 31, 2023 was $17.03 per award and the weighted average modification date fair value was $20.40 per award as of February 9, 2023. The total fair value of RSUs vested during the fiscal year ended March 31, 2024 was $13.2 million. There were no RSUs vested during the fiscal year ended March 31, 2023.
The following table summarizes the PSU awards activity under the 2022 Plan:
Fiscal year ended March 31,
2024
Number of PSUsWeighted average grant date fair value per share
Unvested PSU awards outstanding, beginning of fiscal year219,713 $23.01
Granted (1)787,763 54.77
Vested— —
Forfeited— —
Unvested PSU awards outstanding, end of fiscal year (2)1,007,476 $47.01
(1)Includes 220 thousand PSUs awards related to the second tranche of performance-based awards granted in fiscal year 2023 that met the criteria for a grant date under ASC 718 as the performance metrics for these awards were determined during fiscal year 2024. Additionally, includes 131 thousand PSU awards representing the number of awards achieved above target levels based on the achievement of the performance-based metrics for the first tranche of PSU awards granted in fiscal 2023.
(2)Excludes 293 thousand PSUs award related to the third tranche of performance-based awards granted in fiscal year 2023 that do not meet the criteria for a grant date under ASC 718 as of March 31, 2024. The performance-based metrics for the third tranche of the PSUs were not yet determined as of March 31, 2024.
The weighted average grant date fair value of the PSU awards granted during the fiscal year ended March 31, 2023 was $19.35 per award and the weighted average modification date fair value was $23.01 per award as of February 9, 2023.
Additional information for the PSUs awarded is further detailed in the table below:
Range of shares that may be issued
Year of grant
Performance end date
Targeted number of awards as of March 31, 2024Weighted average grant date fair value per shareMinimumMaximum
Fiscal 2023March 31, 2024219,704$55.26—439,408(1)
Fiscal 2023 (2)March 31, 2025292,958$——585,916(1)
Fiscal 2024March 31, 2026436,675$54.53—1,310,025(3)
(1)Payouts can range from 0% to 200% of the applicable Tranche targets based on the achievement levels of the Company's Total Shareholder Return ("TSR"), as determined in the Restricted Incentive Unit Award Agreement under the 2022 Plan for performance-based vesting awards.
(2)Third tranche of PSUs granted in fiscal year 2023 that do not have a grant date or measurement date as of March 31, 2024.
(3)Payouts can range from 0% to 300% based on the achievement of certain metrics specific to the Company.
As of March 31, 2024, the Company expects to issue the approximately 160% of shares related to the first tranche of PSU awards granted in fiscal year 2023, and up to 200% of shares related to the second tranche of PSU awards granted in fiscal
year 2023 that meet the criteria for a grant date during fiscal year 2024, provided continued service from the employees through April 6, 2025.
The following table summarizes the Options awards activity under the 2022 Plan:
Fiscal year ended March 31,
2024
Number of OptionsWeighted average exercise price
Options awards outstanding, beginning of fiscal year2,692,619 $21.00
Granted489,732 39.24
Exercised— —
Forfeited (1)(30,949)21.00
Options awards outstanding, end of fiscal year3,151,402 $23.84
Options awards exercisable as of end of fiscal year— —
Options awards vested and expected to vest, end of fiscal year3,151,402 $23.84
(1)Awards forfeited due to employee terminations.
The weighted average grant date fair value of Options awards granted during the fiscal year ended March 31, 2024 was approximately $24.95 per award. The weighted average grant date fair value of Options awards granted during the fiscal year ended March 31, 2023 was estimated to be $5.17 per award and the weighted average modification date fair value was $6.30 per award as of February 9, 2023. The weighted average remaining contractual life for Options awards outstanding and Options awards vested and expected to vest as of March 31, 2024, is 8.2 years.
The aggregate intrinsic value of Options awards outstanding and Options awards vested and expected to vest as of March 31, 2024 is $102.2 million. No Options awards vested during the fiscal years ended March 31, 2024 and 2023.
The following table presents the composition of options outstanding and exercisable as of March 31, 2024:

Options outstandingOptions exercisable
Range of Exercise PriceNumber of Shares OutstandingWeighted average remaining contractual life (years)Weighted average exercise priceNumber of shares exercisableWeighted average exercise price
<$2019,617 1.5$9.8919,617 $9.89
$20.00 - $40.002,661,670 7.8$21.002,661,670 $21.00
$40.00 - $60.00470,115 9.2$40.47470,115 $40.47
3,151,402 8.0$23.843,151,402 $23.84
Out of the 3.2 million options outstanding as of March 31, 2024, approximately 2.7 million options were granted in fiscal year 2023 whereby vesting was tied to certain performance metrics specific to the Company. The vesting information for these shares is further detailed in the table below.
Range of shares that may be issued (1)
Targeted number of awards as of March 31, 2024Weighted average fair value per shareMinimumMaximumOptions Performance Period end date
Year of grant
Fiscal 20232,661,670$6.30—2,661,670March 31, 2026
v3.24.1.1.u2
Earnings Per Share
 12 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Earnings per share Earnings per share
Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders of the Company by the weighted-average number of shares of Class A common stock outstanding during the applicable periods.
Diluted earnings per share reflects the potential dilution from stock-based compensation awards. The potential dilution from awards was computed using the treasury stock method based on the average fair market value of the Company's common stock for the period. Additionally, the potential dilution impact of Class B common stock convertible into Class A was also considered in the calculation.
The computation of earnings per share and weighted average shares outstanding of the Company's common stock since the IPO is presented below:
Fiscal year ended March 31, 2024
February 9, 2023 - March 31, 2023

IncomeWeighted average shares outstandingPer ShareIncomeWeighted average shares outstandingPer Share
NumeratorDenominatorAmountNumeratorDenominatorAmount
(In thousands except share and per share amounts)
Basic EPS
Net income attributable to Nextracker Inc. common stockholders$306,24177,067,639$3.97$1,14345,886,065$0.02
Effect of Dilutive impact
Common stock equivalents from Options awards (1)1,089,554377,316
Common stock equivalents from RSUs (2)1,268,9231,291,346
Common stock equivalents from PSUs (3)558,73392,388
Income attributable to non-controlling interests and common stock equivalent from Class B common stock$189,97467,299,481$2,44698,204,522
Diluted EPS
Net income$496,215147,284,330$3.37$3,589145,851,637$0.02
(1)During fiscal year ended March 31, 2024, approximately 0.5 million of Options awards, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No Options awards were excluded from the computation of diluted earnings per share in the fiscal year ended March 31, 2023.
(2)During fiscal year ended March 31, 2024, an immaterial amount of RSU awards were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No RSU awards were excluded from the computation of diluted earnings per share in the fiscal year ended March 31, 2023.
(3)During fiscal year ended March 31, 2024, no PSU awards, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No PSU awards were excluded from the computation of diluted earnings per share in the fiscal year ended March 31, 2023.
v3.24.1.1.u2
Bank borrowings and long-term debt
 12 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Bank borrowings and long-term debt Bank borrowings and long-term debt
On February 13, 2023, the Company and Nextracker LLC (the "LLC"), as the borrower, entered into a senior credit facility with a syndicate of banks (the “2023 Credit Agreement”) comprised of (i) a term loan in the aggregate principal amount of $150.0 million (the “Term Loan”), and (ii) a revolving credit facility in an aggregate principal amount of $500.0 million (the “RCF”). The RCF is available to fund working capital, capital expenditure and other general corporate purposes.
As of March 31, 2024 and 2023, the Company had $147.7 million and $147.1 million, respectively, outstanding under the term loan, net of issuance costs, of which $144.0 million and $147.1 million, respectively, are included in long-term debt and $3.7 million and nil, respectively, are included in other current liabilities on the consolidated balance sheets.
The RCF is available in U.S. dollars, euros and such currencies as mutually agreed on a revolving basis during the five-year period through February 11, 2028. A portion of the RCF not to exceed $300.0 million is available for the issuance of letters of credit. A portion of the RCF not to exceed $50.0 million is available for swing line loans. Subject to the satisfaction of certain conditions, the LLC will be permitted to incur incremental term loan facilities or increase the RCF commitment in an aggregate principal amount equal to $100.0 million plus an additional amount such that the secured net leverage ratio or total net leverage ratio, as applicable, is equal to or less than a specified threshold after giving pro forma effect to such incurrence. As of March 31, 2024, the Company had approximately $434.3 million outstanding under the RCF, net of $65.7 million of outstanding letters of credit.
The obligations of the LLC under the 2023 Credit Agreement and related loan documents are jointly and severally guaranteed by the Company, certain other holding companies (collectively, the “Guarantors”) and, subject to certain exclusions, certain of the LLC’s existing and future direct and indirect wholly-owned domestic subsidiaries.
As of the closing of the 2023 Credit Agreement, all obligations of the LLC and the guarantors are secured by certain equity pledges by the LLC and the Guarantors. However, if the LLC’s total net leverage ratio exceeds a specified threshold, the collateral will include substantially all of the assets of the LLC and the Guarantors and, if the LLC meets certain investment grade conditions, such lien will be released.
The Term Loan requires quarterly principal payments beginning on June 30, 2024 in an amount equal to 0.625% of the original aggregate principal amount of the Term Loan. From June 30, 2025, the quarterly principal payment will increase to 1.25% of the original aggregate principal amount of the Term Loan. The remaining balance of the Term Loan and the outstanding balance of any RCF loans will be repayable on February 11, 2028. Borrowings under the 2023 Credit Agreement are prepayable and commitments subject to being reduced in each case at the LLC’s option without premium or penalty. The 2023 Credit Agreement contains certain mandatory prepayment provisions in the event that the LLC or its restricted subsidiaries incur certain types of indebtedness or, subject to certain reinvestment rights, receive net cash proceeds from certain asset sales or other dispositions of property.
Borrowings in U.S. dollars under the 2023 Credit Agreement bear interest at a rate based on either (a) a term secured overnight financing rate (“SOFR”) based formula (including a credit spread adjustment of 10 basis points) plus a margin of 162.5 basis points to 200 basis points, depending on the LLC’s total net leverage ratio, or (b) a base rate formula plus a margin of 62.5 basis point to 100 basis points, depending on the LLC’s total net leverage ratio. Borrowings under the RCF in euros bear interest based on the adjusted EURIBOR rate plus a margin of 162.5 basis points to 200 basis points, depending on the LLC’s total net leverage ratio. The LLC will is required to pay a quarterly commitment fee on the undrawn portion of the RCF commitments of 20 basis points to 35 basis points, depending on the LLC’s total net leverage ratio. The interest rate for the Term Loan is 6.92% (SOFR rate of 5.20% plus a margin of 1.72%) as of March 31, 2024.
The 2023 Credit Agreement contains certain affirmative and negative covenants that, among other things and subject to certain exceptions, limit the ability of the LLC and its restricted subsidiaries to incur additional indebtedness or liens, to dispose of assets, change their fiscal year or lines of business, pay dividends and other restricted payments, make investments and other acquisitions, make optional payments of subordinated and junior lien debt, enter into transactions with affiliates and enter into restrictive agreements. In addition, the 2023 Credit Agreement requires the LLC to maintain a consolidated total net leverage ratio below a certain threshold. As of March 31, 2024, the Company was in compliance with all applicable covenants under the 2023 Credit Agreement, the Term Loan and the RCF.
The term loan which is categorized as Level 2 on the fair value hierarchy, bears interest at the applicable SOFR rate as of disbursement date, plus a spread based on certain financial metrics for the last twelve-month period and therefore the carrying amount approximate the fair value as of March 31, 2024. The effective interest rate for the Company's long-term debt was 7.12%, and 6.90% for fiscal years ended March 31, 2024 and 2023, respectively.
Scheduled repayments of the Company's bank borrowings and long-term debt are as follows:
Amount
Fiscal year ended March 31,
(In thousands)
2025$3,750 
20267,500 
20277,500 
2028131,250 
Total$150,000 
v3.24.1.1.u2
Supplemental Cash Flow Disclosures
 12 Months Ended
Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Supplemental cash flow disclosures Supplemental cash flow disclosures
The following table represents supplemental cash flow disclosures of non-cash investing and financing activities:
Fiscal year ended March 31,
202420232022
Non-cash investing activity:(In thousands)
Unpaid purchases of property and equipment$1,596$206$138
Non-cash financing activity:

TRA revaluation$23,823$—$—
Reclassification of redeemable non-controlling interest$622,292$—$—
Capitalized offering costs$—$(5,331)$5,331
Legal settlement paid by Parent (1)$—$20,428$—
Paid-in-kind dividend for Series A redeemable preferred units$—$21,427$—
Settlement of assets and liabilities with Parent$—$52,529$—
(1)amount presented in fiscal year 2023 is net of insurance recovery of $22.3 million related to the Company's litigation settlement in July 2022.
v3.24.1.1.u2
Relationship with Flex
 12 Months Ended
Mar. 31, 2024
Related Party Transactions [Abstract]  
Relationship with Flex Relationship with Flex
On January 2, 2024, Nextracker became a fully independent company upon completion of the Spin Transactions, as described in Note 6, and Flex ceased to be a related party on that date. The Company continues to have significant agreements with Flex, which is further detailed below under the section "Agreements with Flex."
Prior to the IPO, Nextracker was managed and operated in the normal course of business by Flex. Accordingly, certain shared costs were allocated to Nextracker and reflected as expenses in these consolidated financial statements. Nextracker’s management and the management of Flex considered the expenses included and the allocation methodologies used to be reasonable and appropriate reflections of the historical Flex expenses attributable to Nextracker for purposes of the stand-alone financial statements up until the IPO. However, the expenses reflected in these consolidated financial statements may not be indicative of the expenses that would have been incurred by Nextracker during the periods presented if Nextracker historically operated as a separate, stand-alone entity during such period, which expenses would have depended on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. In addition, the expenses reflected in the consolidated financial statements may not be indicative of expenses that Nextracker will incur in the future.
Allocation of corporate expenses prior to the IPO and spin-off
The consolidated financial statements for the period prior to the IPO, include expense allocations for certain functions provided by Flex, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, and stock-based compensation. These expenses were allocated to Nextracker on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount or other measure.
During the fiscal years ended March 31, 2023 and 2022, Nextracker was allocated, $5.2 million and $13.0 million, respectively, of general corporate expenses incurred by Flex. Of these expenses $3.4 million and $9.9 million, respectively, were included within selling, general and administrative expenses and $1.8 million and $3.1 million, respectively, were included in cost of sales in the consolidated statements of operations and comprehensive income. An immaterial amount of general corporate expenses incurred by Flex was allocated to Nextracker during the fiscal year 2024 for the period prior to the spin-off.
Risk management
Prior to the IPO, Nextracker paid a premium to Flex in exchange for the coverage provided related to insurance of insurance for property, casualty, product liability matters, auto liability, and workers’ compensation, and various excess policies. In fiscal years 2023 and 2022, the policies with significant premiums included the Marine Cargo/Goods in Transit and the multiple Errors and Omissions policies all through various insurance providers. Expenses related to coverage provided by Flex reflected in the consolidated statements of operations and comprehensive income and were immaterial for fiscal years 2023 and 2022.
Cash management and financing prior to the IPO and spin-off
Prior to the IPO, Nextracker participated in Flex’s centralized cash management programs. Disbursements were independently managed by Nextracker.
All significant transactions between Nextracker and Flex that were not historically cash settled were reflected in the consolidated statement of cash flows, for the period prior to the IPO, as net transfers to parent as these were deemed to be internal financing transactions. All intra-company accounts, profits and transactions have been eliminated. The following is a summary of material transactions reflected in the accumulated net parent investment during the fiscal years ended March 31, 2023 and 2022:
Fiscal year ended March 31,
2023 (3)
2022
(In thousands)
Corporate allocations (excluding stock-based compensation expense)$1,483$9,999
Transfer of operations to Nextracker (1)(39,025)(2,934)
Net cash pooling activities (2)(35,240)(35,490)
Income taxes41,23819,550
Net transfers to Parent
$(31,544)$(8,875)
(1)Primarily represents certain international operations where related income and/or losses are included in Nextracker’s consolidated statements of operations. Cash was also collected by the international operations on behalf of Nextracker, for which Nextracker and Flex do not intend to settle in the future. For the fiscal year 2023, the balance includes the legal settlement paid by Flex.
(2)Primarily represents financing activities for cash pooling and capital transfers.
(3)Represents transactions reflected in accumulated net parent investment through February 8, 2023.
The cash balance reflected in the consolidated balance sheets consist of the cash managed and controlled by Nextracker. Prior to the IPO, when Nextracker was a controlled entity of Flex, Nextracker's U.S. operations participated in the Flex cash pooling management programs intra-quarter; all outstanding positions were settled or scheduled for settlement as of each quarter end. Cash pooling activities during the period prior to the IPO were reflected under net transfers from Parent in the consolidated statements of redeemable interest and stockholders' deficit / parent company deficit and the consolidated statements of cash flows. As of the date of the separation with Flex, Nextracker no longer participates in the Flex cash pooling management programs and no cash pool payable was outstanding as of March 31, 2024.
Prior to the separation from Flex, due to related parties related to balances resulting from transactions between Nextracker and Flex subsidiaries that were historically cash settled. Nextracker purchased certain components and services from other Flex affiliates of $67.1 million, and $47.7 million for the fiscal years ended March 31, 2023 and 2022, respectively.
During the period prior to the IPO, Flex also administered on behalf of Nextracker payments to certain freight providers as well as payrolls to certain employees based in the U.S. Nextracker’s average due to related parties balance was $37.5 million and $36.5 million for the fiscal years ended March 31, 2023 and 2022 respectively. All related cash flow activities are under net cash used in operating activities in the consolidated statements of cash flows. Subsequent to the separation and as of March 31, 2024, transactions with Flex are no longer reported as related party transactions.
As of March 31, 2024, the Company had $38.6 million of receivables from and $19.3 million of payables to Flex, which are presented as other current assets and other current liabilities, respectively, on the consolidated balance sheets.
The Nextracker LLC Distribution
Immediately prior to the closing of the IPO, the LLC made the Nextracker LLC Distribution of $175.0 million. With respect to such Nextracker LLC Distribution, $21.7 million was distributed to TPG Rise and $153.3 million to Yuma and Yuma Sub in accordance with their pro rata Nextracker LLC common units. The Nextracker LLC Distribution was financed, in part, with net proceeds from the $150.0 million term loan under the 2023 Credit Agreement, as further discussed in Note 9.
Agreements with Flex
•Umbrella agreement - In February 2023, Nextracker Brasil Ltda., an indirect, wholly-owned subsidiary of Nextracker Inc., and Flextronics International Technologia Ltda., an affiliate of Flex, entered into an umbrella agreement (the “Umbrella Agreement”) that governs the terms, conditions and obligations of a strategic commercial relationship between Nextracker Inc. and Flex for the sale of the Company’s solar trackers in Brazil. The Umbrella Agreement is renewable automatically for successive one-year periods, unless a party provides written notice to the other parties that such party does not intend to renew within at least ninety days prior to the end of any term.
•Transition Services Agreement— The Company and the LLC entered into a transition services agreement with Flextronics International USA, Inc. ("FIUI"), pursuant to which FIUI and its subsidiaries agreed to provide the Company and its subsidiaries with various services.
•Employee Matters Agreement— The Company and Nextracker LLC entered into an employee matters agreement with Flex that governs Nextracker’s and Flex’s compensation and employee benefit obligations with respect to the employees and other service providers of each company, and generally allocates liabilities and responsibilities relating to employment matters and employee compensation and benefit plans and programs. Under the terms of the employee matters agreement, at the time of the completion of the Spin Transactions, Nextracker assumed outstanding options, RSUs and PSUs granted to its employees pursuant to Flex’s 2017 Equity Incentive Plan (or other applicable equity incentive plan of Flex), which were converted into options, RSUs and PSUs to purchase or receive an adjusted number of shares of Class A common stock pursuant to the 2022 Plan (or other applicable equity incentive plan of Nextracker). The term of the employee matters agreement is indefinite and may only be terminated or amended with the prior written consent of both Nextracker and Flex, and is expected to remain in effect in accordance with its terms following the Spin Transactions.
•Tax Matters Agreement—Immediately prior to the Spin Distribution, Nextracker, Flex and Yuma entered into a tax matters agreement (the “Tax Matters Agreement”) which governs the rights, responsibilities and obligations of such parties with respect to taxes (including taxes arising in the ordinary course of business and taxes incurred as a result of the Spin Distribution and the Mergers), tax attributes, tax returns, tax contests and certain other matters.
v3.24.1.1.u2
Commitments And Contingencies
 12 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
Litigation and other legal matters
Nextracker has accrued for a loss contingency to the extent it believes that losses are probable and estimable. The amounts accrued are not material, but it is reasonably possible that actual losses could be in excess of Nextracker’s accrual. Any related
excess loss could have a material adverse effect on Nextracker’s results of operations or cash flows for a particular period or on Nextracker’s financial condition.
On February 6, 2024, pursuant to the LLC Agreement, Nextracker LLC made pro rata tax distributions in an aggregate amount of $94.3 million to the common members of the LLC, including an aggregate of $48.5 million to Yuma Acquisition Sub LLC and Yuma Subsidiary, Inc. As of the date of the tax distribution, Yuma Acquisition Sub LLC and Yuma Subsidiary Inc. were wholly-owned subsidiaries of Nextracker Inc. On February 1, 2024, Flex sent a dispute notice to Nextracker Inc. asserting that Flex is entitled to the distribution that was subsequently made to Yuma Acquisition Sub LLC and Yuma Subsidiary, Inc. and demanding payment of that amount to Flex. Nextracker Inc. is evaluating the dispute notice and it is too early to determine the likelihood that the Company will be required to make any such payments to Flex in the future.
v3.24.1.1.u2
Income Taxes
 12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income taxes
The domestic and foreign components of income before income taxes were comprised of the following:
Fiscal year ended March 31,
202420232022
(In thousands)
Domestic$576,009$117,115$45,259
Foreign31,988 51,968 19,849 
Total$607,997 $169,083 $65,108 
The provision for income taxes consisted of the following:
Fiscal year ended March 31,
202420232022
Current:
(In thousands)
Domestic$65,286$35,244$13,558
Foreign7,904 18,238 5,974 
Total$73,190 $53,482 $19,532 
Deferred:
Domestic30,496 (8,660)(6,173)
Foreign8,096 2,928 836 
Total$38,592 $(5,732)$(5,337)
Provision for income taxes$111,782 $47,750 $14,195 
The domestic statutory income tax rate was 21% in fiscal years 2024, 2023 and 2022. The reconciliation of the income tax expense expected based on domestic statutory income tax rates to the expense (benefit) for income taxes included in the consolidated statements of operations is as follows:
Fiscal year ended March 31,
202420232022
(In thousands)
Income taxes based on domestic statutory rates$127,679$35,508$13,673
Effect of tax rate differential2,165 7,487 2,638 
FDII Deduction(9,055)(3,235)(1,583)
Foreign disregarded entities5,574 11,020 — 
Foreign tax deduction— (3,659)— 
Change in TRA Liability(12,416)— — 
Amount allocated to Non-controlling interest(41,348)(1,671)— 
Stock-based compensation— — (424)
State7,810 4,535 880 
Change in State Effective Rate31,279 — — 
Guaranteed payment on Series A Preferred Units— (4,500)(875)
Other94 2,265 (114)
Provision for income taxes$111,782 $47,750 $14,195 
The components of deferred income taxes are as follows:
As of March 31,
20242023
Deferred tax liabilities:
(In thousands)
Foreign taxes$(14,319)$(458)
Fixed assets(3)(54)
Others(763)(2,230)
Total deferred tax liabilities(15,085)(2,742)
Deferred tax assets:
Stock-based compensation15,629 2,222 
Net operating loss and other carryforwards5,032 5,467 
Investment in Nextracker LLC409,716 249,377 
Foreign Tax Credits9,455 — 
Others5,908 1,598 
Total deferred tax assets445,740 258,664 
Valuation allowances(1,173)(1,528)
Total deferred tax assets, net of valuation allowances444,567 257,136 
Net deferred tax asset$429,482$254,394
The net deferred tax asset is classified as follows:
Long-term asset$438,272 $254,767 
Long-term liability(8,790)(373)
Total$429,482$254,394
The Company has recorded deferred tax assets of approximately $3.9 million related to tax losses and other carryforwards. These tax losses and other carryforwards will expire at various dates as follows:
Expiration dates of deferred tax assets related to operating losses and other carryforwards
(In thousands)
2025 - 2030$— 
2031 - 2036189 
2037 - Post— 
Indefinite3,671 
Total$3,860 
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended March 31, 2024. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth.
On the basis of this evaluation, as of March 31, 2024, a valuation allowance account of $1.2 million related to a foreign jurisdiction has been recorded to recognize only the portion of the deferred tax asset that is most likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth.
As of March 31, 2024, the Company has provided for earnings in foreign subsidiaries that are not considered to be indefinitely reinvested and therefore subject to withholding taxes on $14.0 million of undistributed foreign earnings, recording a deferred tax liability of approximately $1.4 million thereon.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Fiscal year ended March 31,
202420232022
(In thousands)
Balance, beginning of fiscal year$434$440$465
Impact from foreign exchange rates fluctuation(85)(6)(25)
Balance, end of fiscal year$349$434$440
Nextracker and its subsidiaries file federal, state, and local income tax returns in multiple jurisdictions around the world. With few exceptions, Nextracker is no longer subject to income tax examinations by tax authorities for years before 2018.
The Company recognizes interest and penalties accrued related to unrecognized tax benefits within the Company’s tax expense. The Company had approximately $0.5 million accrued for the payment of interest and penalties as of March 31, 2024 and 2023, respectively.
Tax Receivable Agreement
On February 13, 2023, Nextracker Inc. entered into a tax receivable agreement (the “Tax Receivable Agreement” or "TRA") with the LLC, Yuma, Yuma Sub, TPG Rise and the following affiliates of TPG Rise: TPG Rise Climate Flash Cl BDH, L.P., TPG Rise Climate BDH, L.P. and The Rise Fund II BDH, L.P. (collectively, the “TPG Affiliates”). The Tax Receivable Agreement provides for the payment by Nextracker Inc. to Yuma, Yuma Sub, TPG and the TPG Affiliates (or certain permitted transferees thereof) of 85% of the tax benefits, if any, that Nextracker Inc. is deemed to realize under certain circumstances as a result of (i) its allocable share of existing tax basis in tangible and intangible assets resulting from exchanges or acquisitions of outstanding Series A Preferred Units or common units of the LLC (collectively, the “LLC Units”), including as part of the Transactions or under the Exchange Agreement, (ii) increases in tax basis resulting from exchanges or acquisitions of LLC Units and shares of Nextracker Inc.'s Class B common stock (including as part of the Transactions or under the Exchange Agreement), (iii) certain pre-existing tax attributes of certain blocker corporations affiliated with TPG Rise that each merged with a separate direct, wholly-owned subsidiary of Nextracker Inc., as part of the Transactions, and (iv) certain other tax benefits related to Nextracker Inc. entering into the Tax Receivable Agreement, including tax benefits attributable to payments under the Tax Receivable Agreement. Prior to the Spin Transactions, Yuma and Yuma Sub assigned their respective rights under the Tax Receivable Agreement to an entity that remains an affiliate of Flex.
As of March 31, 2024 and 2023, a liability of $391.6 million and $230.3 million, respectively, was recorded for the expected amount to be paid to Flex affiliate, TPG and the TPG affiliates, which is included in TRA liability and other liability on the consolidated balance sheets. Separately, a deferred tax asset of $409.7 million and $249.4 million has been booked as of March 31, 2024 and 2023, respectively, reflecting Nextracker's outside basis difference in Nextracker LLC, which is included in deferred tax assets and other assets on the consolidated balance sheets. The difference between the liability and the deferred tax asset was recorded to additional paid-in-capital on the consolidated balance sheets.
During fiscal year 2024, the Company incurred $28.4 million of other tax related income driven by the reduction in its liability under the TRA due to a decrease in its forecasted estimated state effective tax rate. These tax related income have been presented in other (income) expense, net on the consolidated statement of operations for the fiscal year ended March 31, 2024.
Tax distributions
During fiscal year 2024, and pursuant to the LLC Agreement, Nextracker LLC made pro rata tax distributions to its non-controlling interest holders (Yuma, Yuma Sub and TPG) in the aggregate amount of approximately $66.9 million.
Pillar Two
The Organization for Economic Co-operation and Development (“OECD”), a global policy forum, issued the Pillar Two Global Anti-Base Erosion rules, which a global minimum tax of 15% would apply to multinational groups with consolidated financial statement revenue in excess of EUR750 million. Nearly all OECD member jurisdictions have agreed in principle to adopt these provisions and numerous jurisdictions including jurisdictions where the Company operates, have enacted these rules effective January 1, 2024. The Company has evaluated the impact of these rules and currently believes they will not have a material impact on financial results through 2026 due to certain transitional safe harbors. The Company will continue to monitor and refine its assessment as further guidance is made available.
v3.24.1.1.u2
Segment Reporting
 12 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment reporting
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or a decision-making group, in deciding how to allocate resources and in assessing performance. Resource allocation decisions and Nextracker’s performance are assessed by its Chief Executive Officer, identified as the CODM.
For all periods presented, Nextracker has one operating and reportable segment. The following table sets forth geographic information of revenue based on the locations to which the products are shipped:
Fiscal year ended March 31,

2024
2023
2022
(In thousands)
Revenue:
U.S.$1,702,61168%$1,298,59668%$904,94662%
Rest of the World797,23032%603,54132%552,64638%
Total$2,499,841$1,902,137$1,457,592
The United States is the principal country of domicile.
The following table summarizes the countries that accounted for more than 10% of revenue in fiscal years 2024, 2023, and 2022. Revenue is attributable to the countries to which the products are shipped.
Fiscal year ended March 31,
202420232022
(In thousands)
Revenue:
U.S.1,702,611 68 %1,298,596 68 %$904,94662%
Brazil281,272 11 %295,846 16 %188,36813%
No other country accounted for more than 10% of revenue for the fiscal years presented in the table above.
As of March 31, 2024 and 2023, property and equipment, net in the United States was $9.0 million and $7.2 million, respectively, which represents substantially all of the Company's consolidated property and equipment, net. No other countries accounted for more than 10% of property and equipment, net as of March 31, 2024 and 2023.
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Pay vs Performance Disclosure      
Net income $ 306,241 $ 1,143 $ 0
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.1.u2
Insider Trading Policies and Procedures
 12 Months Ended
Mar. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.24.1.1.u2
Summary Of Accounting Policies (Policies)
 12 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable interest entities ("VIE") and consolidation
Variable interest entities (“VIE”) and consolidation
Subsequent to the IPO, the Company's sole material asset is its member’s interest in Nextracker LLC. In accordance with the Nextracker LLC Operating Agreement, the Company was named the managing member of Nextracker LLC. As a result, the Company has all management powers over the business and affairs of Nextracker LLC and to conduct, direct and exercise full control over the activities of Nextracker LLC. Class A common stock issued in the IPO do not hold majority voting rights but hold 100% of the economic interest in the Company, which results in Nextracker LLC being considered a VIE. Due to the Company's power to control the activities most directly affecting the results of Nextracker LLC, the Company is considered the primary beneficiary of the VIE. Accordingly, beginning with the IPO, the Company consolidates the financial results of Nextracker LLC and its subsidiaries. Nextracker LLC common units held by Yuma, Yuma Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of Yuma ("Yuma Sub"), TPG Rise and the following affiliates of TPG: TPG Rise
Climate Flash Cl BDH, L.P., TPG Rise Climate BDH, L.P. and The Rise Fund II BDH, L.P. (collectively, the “TPG Affiliates”) were presented on the consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests,” up until the separation with Flex as redemption was outside of the control of the Company. As of March 31, 2024, redemption is no longer outside the control of the Company subsequent to the spin-off from Flex, and therefore the non-controlling interests owned by TPG Affiliates are now presented on the consolidated balance sheets as permanent equity under the caption "non-controlling interests."
Basis of presentation
Basis of presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for reporting financial information. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary to present the Company's financial statements fairly have been included.
Prior to the Transactions (as described in Note 6), Nextracker did not operate as a separate entity and stand-alone separate historical financial statements for Nextracker were not prepared. Accordingly, the consolidated financial statements for the period preceding the Transactions were derived from Flex’s historical accounting records and were presented on a carve-out basis and include allocations of certain costs from Flex incurred on Nextracker’s behalf. Such costs may not have represented the amounts that would have been incurred had Nextracker operated autonomously or independently from Flex during the period preceding the Transactions. All intercompany transactions and accounts within Nextracker have been eliminated.
The balance of the redeemable non-controlling interests was reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses and other comprehensive income or loss, or its estimated maximum redemption amount. The resulting changes in the estimated maximum redemption amount (increases or decreases) were recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. Prior to the separation from Flex, these interests were presented on the consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests" as redemption was outside of the control of the Company. As of March 31, 2024 (after the separation from Flex), due to the fact that the redemption is no longer outside the control of the Company, the non-controlling interests are now presented on the consolidated balance sheets as permanent equity under the caption "non-controlling interests."
Foreign currency translation
Foreign currency translation
The reporting currency of the Company is the United States dollar (“USD”). The functional currency of the Company and its subsidiaries is primarily the USD. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other (income) expense, net in the accompanying consolidated statements of operations and comprehensive income when realized, and were not material for the fiscal years ended March 31, 2024, 2023, and 2022.
Use of estimates
Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Estimates are used in accounting for, among other things, impairment of goodwill, impairment of long-lived assets, allowance for credit losses, provision for excess or obsolete inventories, valuation of deferred tax assets, warranty reserves, contingencies, operation accruals, and fair values of awards granted under stock-based compensation plans. Due to the long-term economic effects of the COVID-19 pandemic and geopolitical conflicts (including the Russian invasion of Ukraine and the Israel-Hamas conflict), there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to the COVID-19 pandemic and the Russian invasion of Ukraine and the Israel-Hamas conflict. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences maybe material to the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the consolidated financial statements.
Revenue recognition
Revenue recognition
The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers (“ASC 606”) for all periods presented. In applying ASC 606, the Company recognizes revenue from the sale of solar tracker systems, parts, extended warranties on solar tracker systems components and software licenses along with associated maintenance and support. In determining the appropriate amount of revenue to recognize, the Company applies the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) Nextracker satisfies a performance obligation. In assessing the recognition of revenue, the Company evaluates whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations. Further, the Company assesses whether control of the product or services promised under the contract is transferred to the customer at a point in time or over time.
The Company’s contracts for specific solar tracker system projects with customers are predominantly accounted for as one performance obligation because the customer is purchasing an integrated service, which includes Nextracker’s overall management of the solar tracker system project and oversight through the installation process to ensure a functioning system is commissioned at the customer’s location. The Company’s performance creates and enhances an asset that the customer controls as the Company performs under the contract, which is principally as tracker system components are delivered to the designated project site. Although the Company sources the component parts from third party manufacturers, it obtains control and receives title of such parts before transferring them to the customer because Nextracker is primarily responsible for fulfillment to its customer. The Company’s engineering services and professional services are interdependent with the component parts whereby the parts form an input into a combined output for which it is the principal, and Nextracker could redirect the parts before they are transferred to the customer if needed. The customer owns the work-in-process over the course of the project and Nextracker’s performance enhances a customer-controlled asset, resulting in the recognition of the performance obligation over time. The measure of progress is estimated using an input method based on costs incurred to date on the project as a percentage of total expected costs to be incurred. The costs of materials and hardware components are recognized as control is transferred to the customer, which is typically upon delivery to the customer site . As such, the cost-based input measure is considered the best measure of progress in depicting the Company’s performance in completing a tracker system.
Contracts with customers that result in multiple performance obligations include contracts for the sale of components and solar tracker system project contracts with an extended warranty and/or which include the sale of software solutions.
For contracts related to sale of components, Nextracker’s obligation to the customer is to deliver components that are used by the customer to create a tracker system and does not include engineering or other professional services or the obligation to provide such services in the future. Each component is a distinct performance obligation, and often the components are delivered in batches at different points in time. Nextracker estimates the standalone selling price (“SSP”) of each performance obligation based on a cost plus margin approach. Revenue allocated to a component is recognized at the point in time that control of the component transfers to the customer.
At times, a customer will purchase a service-type warranty with a tracker system project. Nextracker uses a cost plus margin methodology to determine the SSP for both the tracker system project and the extended warranty. The revenue allocated to each performance obligation is recognized over time based on the period over which control transfers. The Company recognizes revenue allocated to the extended warranty on a straight-line basis over the contractual service period, which is generally 10 to 15 years. This period starts once the standard workmanship warranty expires, which is generally 5 to 10 years from the date control of the underlying tracker system components is transferred to the customer. To date, revenues recognized related to extended warranty were not material.
Nextracker generates revenues from sales of software licenses of its TrueCapture and NX Navigator offerings, which are often sold separately from the tracker system. Software licenses are generally sold with maintenance services, which include ongoing security updates, upgrades, bug fixes and support. The software license and the maintenance services are separate performance obligations. Nextracker estimates the SSP of the software license using an adjusted market approach and estimates the SSP of the maintenance service using a cost plus margin approach. Revenue allocated to the software license is recognized at a point in time upon transfer of control of the software license, and revenue allocated to the maintenance service is generally recognized over time on a straight-line basis during the maintenance term. Revenues related to sales of software licenses were not material for the fiscal years ended March 31, 2024, 2023 and 2022 respectively.
Contract estimates
Accounting for contracts for which revenue is recognized over time requires Nextracker to estimate the expected margin that will be earned on the project. These estimates include assumptions on the cost and availability of materials including variable freight costs. Nextracker reviews and updates its contract-related estimates each reporting period and recognizes changes in estimates on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, Nextracker recognizes the total loss in the period it is identified.
Contract balances
The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities (deferred revenue) on the consolidated balance sheets. Nextracker’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. When billing occurs subsequent to revenue recognition, a contract asset results. Contract assets of $397.1 million and $298.0 million as of March 31, 2024 and March 31, 2023, respectively, are presented in the consolidated balance sheets, of which $141.4 million and $116.3 million, respectively, will be invoiced at the end of the projects as they represent funds withheld until the products are installed by a third party, arranged by the customer, and the project is declared operational. The remaining unbilled receivables will be invoiced throughout the project based on a set billing schedule such as milestones reached or completed rows delivered.
During the fiscal years ended March 31, 2024 and 2023, Nextracker converted $152.3 million and $74.9 million deferred revenue to revenue, respectively, which represented 72% and 70%, respectively, of the beginning period balance of deferred revenue.
Remaining performance obligations
As of March 31, 2024, Nextracker had $294.9 million of the transaction price allocated to the remaining performance obligations. The Company expects to recognize revenue on approximately 76% of these performance obligations in the next 12 months. The remaining long-term unperformed obligation primarily relates to extended warranty and deposits collected in advance on certain tracker projects.
Practical expedients and exemptions
Nextracker has elected to adopt certain practical expedients and exemptions as allowed under ASC 606, such as (i) recording sales commissions as incurred because the amortization period is less than one year, (ii) not adjusting for the effects of significant financing components when the contract term is less than one year, (iii) excluding collected sales tax amounts from the calculation of revenue and (iv) accounting for the costs of shipping and handling activities that are incurred after the customer obtains control of the product as fulfillment costs rather than a separate service provided to the customer for which consideration would need to be allocated.
Inflation Reduction Act of 2022 Vendor Rebates
On August 16, 2022, the Inflation Reduction Act of 2022 IRA was enacted into law, which includes a new corporate minimum tax, a stock repurchase excise tax, numerous green energy credits, other tax provisions, and significantly increased enforcement resources. Section 45X of the Internal Revenue Code of 1986, as amended 45X Credit was established as part of the IRA and is a per-unit tax credit earned over time for each clean energy component domestically produced and sold by a manufacturer.
The Company has executed agreements with certain suppliers to ramp up its U.S. manufacturing footprint. These suppliers produce 45X Credit eligible parts, including torque tubes and structural fasteners, that will then be incorporated into a solar tracker. The 45X Credit was eligible for domestic parts manufactured after January 1, 2023. The Company has contractually agreed with these suppliers to share a portion of the economic value of the credit related to Nextracker's purchases in the form of a vendor rebate. The Company accounts for these vendor rebate amounts as a reduction of the purchase price of the parts acquired from the vendor and therefore a reduction of inventory until the control of the part is transferred to the customer, at which point the Company recognizes such amounts as a reduction of cost of sales on the consolidated statements of operations and comprehensive income. For certain immaterial vendor rebates related to purchases that occurred prior to the execution of the agreement, the Company capitalized the cumulative impact of the vendor rebates, the
total of which is to be amortized over the life of the associated contract with the supplier, as a reduction of the prices of future purchases. During the fourth quarter of fiscal 2024, due to additional guidance published and after discussion with its vendors, the Company determined the amount of the 45X Credit vendor rebates it expects to receive in accordance with the vendor contracts and recognized a cumulative reduction to cost of sales of $121.4 million related to 45X Credit vendor rebates earned on production of eligible components shipped to projects starting on or after January 1, 2023. As of March 31, 2024, the Company had approximately $125.4 million in vendor rebates receivable included in other current assets, and approximately $3.0 million of deferred vendor consideration included in accrued expense on the consolidated balance sheet.
Fair value
Fair value
The fair values of Nextracker’s cash, accounts receivable, and accounts payable approximate their carrying values due to their short maturities.
Concentration of credit risk
Concentration of credit risk
Financial instruments which potentially subject the Company to concentrations of credit risk are primarily accounts receivable, derivative instruments, and cash and cash equivalents.
Customer credit risk
Nextracker has an established customer credit policy, through which it manages customer credit exposures through credit evaluations, credit limit setting, monitoring and enforcement of credit limits for new and existing customers. Nextracker performs ongoing credit evaluations of its customers’ financial condition and makes provisions for credit losses based on the outcome of those credit evaluations. Nextracker evaluates the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collections and the age of past due receivables. To the extent Nextracker identifies exposures as a result of credit or customer evaluations, Nextracker also reviews other customer related exposures, including but not limited to contract assets, inventory and related contractual obligations.
The following table summarizes the activity in Nextracker’s allowance for credit losses during fiscal years 2024, 2023, and 2022:

Balance at
beginning
of year		Charges/(recoveries) to costs and expenses (1)Deductions/
Write-Offs		Balance at
end of
year
Allowance for credit losses:(In thousands)
Year ended March 31, 2022$3,595 $(21)$— $3,574 
Year ended March 31, 2023$3,574 $(1,054)$(752)$1,768 
Year ended March 31, 2024$1,768 $2,197 $(93)$3,872 
(1) Charges and recoveries incurred during fiscal years 2024 and 2023 are primarily for costs and expenses or bad debt and recoveries related to various distressed customers.
One customer accounted for greater than 10% of revenue in fiscal years 2023, and 2022, with revenue of $331.0 million, and $196.2 million, respectively, and greater than 10% of the total balance of accounts receivable, net of allowance for credit losses on receivables and contract assets as of March 31, 2024 and 2023, with balances of approximately 12% and 15%, respectively. This customer accounted for less than 10% of revenue in fiscal year 2024.
Additionally, another customer accounted for greater than 10% of revenue in fiscal year 2024 with revenue of $426.1 million, and greater than 10% of the total balance of accounts receivable, net of allowance for credit losses on receivables and contract assets as of March 31, 2024 with balances of approximately 16%.
Accounts receivable, net of allowance
Accounts receivable, net of allowance
Nextracker’s accounts receivable are due primarily from solar contractors across the United States and internationally. Credit is extended in the normal course of business based on evaluation of a customer’s financial condition and, generally, collateral is not required. Trade receivables consist of uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 90 days of the invoice date. Management regularly reviews outstanding accounts receivable and provides for estimated losses through an allowance for credit losses. In evaluating the level of the allowance for credit losses, Nextracker makes judgments regarding the customers’ ability to make required payments, economic events and other factors. As the financial conditions of Nextracker’s customers change, circumstances develop or additional information becomes available, adjustments to the allowance for credit losses may be required. When deemed uncollectible, the receivable is charged against the allowance.
Product warranty
Product warranty
Nextracker offers an assurance type warranty for its products against defects in design, materials and workmanship for a period ranging from five to ten years, depending on the component. For these assurance type warranties, a provision for estimated future costs related to warranty expense is recorded when they are probable and reasonably estimable, which is typically when products are delivered. The estimated warranty liability is based on our warranty model which relies on historical warranty claim information and assumptions based on the nature, frequency and average cost of claims for each product line by project. When little or no experience exists, the estimate is based on comparable product lines and/or estimated potential failure rates. These estimates are based on data from Nextracker specific projects. Estimates related to the outstanding warranty liability are re-evaluated on an ongoing basis using best-available information and revisions are made as necessary.
The following table summarizes the activity related to the estimated accrued warranty reserve for the fiscal years ended March 31, 2024 and 2023:
As of March 31,
20242023
(In thousands)
Beginning balance$22,591$10,485
Provision (release) for warranties issued (1)(4,459)13,099
Payments(5,621)(993)
Ending balance$12,511$22,591
(1)During fiscal year ended March 31, 2023, the Company identified a specific design issue with a non-core product, and recorded an additional $8.7 million charge to cost of sales on its consolidated statement of operations and comprehensive income, related to future remediation costs, which may include replacement parts and services.
Inventories
Inventories
Nextracker’s inventory primarily consists of finished goods to be used and to be sold to customers, including components procured to complete the tracker system projects.
Prior to the separation from Flex, inventories were stated at the lower of cost (on a first-in, first-out basis) or net realizable value. Effective from the date of the spin-off, management elected to state its inventory at the lower of cost, determined on a weighted average basis, or net realizable value. This change in policy resulted in an immaterial impact to the Company's consolidated financial statements for the periods presented.
Property and equipment, net
Property and equipment, net
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are recognized on a straight-line basis over the estimated useful lives of the related assets, with the exception of building leasehold improvements, which are depreciated over the term of the lease, if shorter. Repairs and maintenance costs are expensed as incurred. Property and equipment is comprised of the following:
Depreciable life
(In years)		As of March 31,
20242023
(In thousands)
Machinery and equipment
3 - 8
$10,623 $9,062 
Leasehold improvements
Up to 5
5,168 4,302 
Furniture, fixtures, computer equipment and software
3 - 7
11,783 10,080 
Construction-in-progress—3,051 1,111 
30,625 24,555 
Accumulated depreciation(21,389)(17,300)
Property and equipment, net$9,236 $7,255 
Total depreciation expense associated with property and equipment was approximately $4.1 million, $3.4 million, and $2.7 million in fiscal years 2024, 2023 and 2022, respectively.
Nextracker reviews property and equipment for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of property and equipment is determined by comparing the carrying amount to the lowest level of identifiable projected undiscounted cash flows the property and equipment are expected to generate. An impairment loss is recognized when the carrying amount of property and equipment exceeds the fair value. Management determined there was no impairment for the fiscal years ended March 31, 2024, 2023 and 2022.
Deferred income taxes
Deferred income taxes
For purposes of these consolidated financial statements, prior to the IPO, Nextracker taxes were calculated on a stand-alone basis as if Nextracker completed separate tax returns apart from Flex (“Separate-return Method”). Following the IPO, Nextracker Inc. files a separate tax return. The income taxes as presented herein for the pre-IPO period, allocate current and deferred income taxes of Flex to Nextracker, in a manner that Nextracker believes as systematic, rational, and consistent with the asset and liability method prescribed by ASC 740, Income Taxes. Accordingly, as stated in paragraph 30 of ASC 740, total amounts allocated to Nextracker may not be indicative of Nextracker’s condition had Nextracker been a separate stand-alone entity during the pre-IPO periods presented.
Following the IPO, Nextracker accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. Nextracker recognizes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Nextracker accounts for uncertain income tax positions by recognizing the impact of a tax position in its consolidated financial statements when Nextracker believes it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authorities based on the technical merits of the position.
Income taxes
Income taxes
We operate in numerous states and countries and must allocate our income, expenses, and earnings under the various laws and regulations of each of these taxing jurisdictions. Accordingly, our provision for income taxes represents our total estimate of the liability for income taxes that we have incurred in doing business each year in all our locations. Annually, we file tax returns that represent our filing positions with each jurisdiction and settle our tax return liabilities. Each jurisdiction has the right to audit those tax returns and may take different positions with respect to income and expense allocations and taxable earnings determinations. Because the determination of our annual income tax provision is subject to judgments and estimates, actual results may vary from those recorded in our financial statements. We recognize additions to and reductions
in income tax expense during a reporting period that pertains to prior period provisions as our estimated liabilities are revised and our actual tax returns and tax audits are completed.
Tax receivable agreement
Tax receivable agreement
The Company has recorded a liability of $391.6 million and $230.3 million as of March 31, 2024 and 2023, respectively, which is included in TRA liabilities and other liabilities on the consolidated balance sheets, representing 85% of the estimated future tax benefits subject to the Tax Receivable Agreement ("TRA"). In U.S. federal, state and local income tax or franchise tax that we realize or are deemed to realize (determined by using certain assumptions) as a result of favorable tax attributes, will be available to us as a result of certain transactions contemplated in connection with our IPO, exchanges of Class A common stock or cash and payments made under the TRA. The actual amount and timing of any payments under these agreements, will vary depending upon a number of factors, including, among others, the timing of redemptions or exchanges by members of Nextracker LLC, the price of our Class A common stock at the time of the redemptions or exchanges, the extent to which such redemptions or exchanges are taxable, the amount and timing of the taxable income we generate in the future and the tax rate then applicable, and the portion of our payments under the tax receivable agreements constituting imputed interest. Estimating future taxable income is inherently uncertain and requires judgment. In projecting future taxable income, we consider our historical results as well as assumptions related to future forecasts for our various businesses by location. The impact of any changes in the total projected obligations recorded under the tax receivable agreements as a result of actual changes in the geographic mix of our earnings, changes in tax legislation and tax rates or other factors that may impact our actual tax savings realized will be reflected in income before taxes in the period in which the change occurs.
Goodwill and other intangibles assets
Goodwill and other intangibles assets
In accordance with accounting standards related to business combinations, goodwill is not amortized; however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Nextracker reviews identified intangible assets and goodwill for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Nextracker also tests goodwill at least annually for impairment. Refer to Note 5 for additional information about goodwill and other intangible assets.
Other current assets
Other current assets
Other current assets include short-term deposits and advances of $104.7 million and $29.3 million as of March 31, 2024 and 2023, respectively, primarily related to advance payments to certain vendors for procurement of inventory. In addition, it includes $125.4 million in vendor rebates receivable related to the 45X Credit as further described above under the section "Inflation Reduction Act of 2022 Vendor Rebates."
Deferred tax assets and other assets
Deferred tax assets and other assets
Includes deferred tax assets of $438.3 million and $257.1 million as of March 31, 2024 and 2023, respectively, primarily related to the Company's investment in Nextracker LLC as further described in Note 13.
Accrued expenses
Accrued expenses
Accrued expenses include accruals primarily for freight and tariffs of $43.2 million and $44.6 million as of March 31, 2024 and 2023, respectively. In addition, it includes $39.2 million and $15.2 million accrued payroll as of March 31, 2024 and 2023, respectively.
TRA liability and other liabilities
TRA liability and other liabilities
TRA liability and other liabilities primarily include the liability of $391.6 million and $230.3 million as of March 31, 2024 and 2023, respectively, related to the amount expected to be paid to Yuma, Yuma Sub, TPG and the TPG affiliates as further described in Note 13. Additionally, the balance includes the long-term portion of standard product warranty liabilities of $6.4 million and $11.8 million, respectively, and the long-term portion of deferred revenue of $69.3 million and $35.8 million as of March 31, 2024 and 2023, respectively.
Redeemable non-controlling interests
Redeemable non-controlling interests
Prior to the separation from Flex, the balance of the redeemable non-controlling interests was reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings and other comprehensive income, or its estimated maximum redemption amount. The resulting changes in the estimated maximum redemption amount used to be recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital.
The following table present a reconciliation of the change in redeemable non-controlling interests for the periods presented:
Fiscal year ended March 31,
20242023
(In thousands)
Balance at beginning of period$3,560,628 $— 
Establishment of non-controlling interests— 265,564 
Net income attributable to redeemable non-controlling interests171,937 2,446 
Reclassification of redeemable non-controlling interest(622,292)— 
Tax distributions(64,365)— 
Redemption value adjustments822,635 3,292,618 
Effect of spin-off from Flex(3,868,543)— 
Balance at end of period$— $3,560,628 
Stock-based compensation
Stock-based compensation
Stock-based compensation is accounted for in accordance with ASC 718-10, Compensation-Stock Compensation. The Company records stock-based compensation costs related to its incentive awards. Stock-based compensation cost is measured at the grant date based on the fair value of the award. Compensation cost for time-based awards is recognized ratably over the applicable vesting period. Compensation cost for performance-based awards with a performance condition is reassessed each period and recognized based upon the probability that the performance conditions will be achieved. The performance-based awards with a performance condition are expensed when the achievement of performance conditions are probable. The total expense recognized over the vesting period will only be for those awards that ultimately vest and forfeitures are recorded when they occur. Refer to Note 7 for further discussion.
Leases
Leases
Nextracker is a lessee with several non-cancellable operating leases, primarily for warehouses, buildings, and other assets such as vehicles and equipment. The Company determines if an arrangement is a lease at contract inception. A contract is a lease or contains a lease when (i) there is an identified asset, and (ii) the customer has the right to control the use of the identified asset. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date for Nextracker’s operating leases. For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date. The Company has elected the short-term lease recognition and measurement exemption for all classes of assets, which allows Nextracker to not recognize ROU assets and lease liabilities for leases with a lease term of 12 months or less and with no purchase option Nextracker is reasonably certain of exercising. Nextracker has also elected the practical expedient to account for the lease and non-lease components as a single lease component, for all classes of underlying assets. Therefore, the lease payments used to measure the lease liability include all of the fixed considerations in the contract. Lease payments included in the measurement of the lease liability comprise the following: fixed payments (including in-substance fixed payments) and variable payments that depend on an index or rate (initially measured using the index or rate at the lease commencement date). As Nextracker cannot determine the interest rate implicit in the lease for its leases, the Company uses an estimated incremental borrowing rate as of the commencement date in determining the present value of lease payments. The estimated incremental borrowing rate is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms.
The lease term for all of Nextracker’s leases includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that Nextracker is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.
As of March 31, 2024 and 2023, current operating lease liabilities were $3.9 million and $1.9 million, respectively, which are included in other current liabilities on the consolidated balance sheets and long-term lease liabilities were $13.6 million and $1.5 million, respectively, which are included in other liabilities on the consolidated balance sheets. ROU assets are included in other assets on the consolidated balance sheets. Refer to Note 3 for additional information about Leases.
Recently issued accounting pronouncement
Recently issued accounting pronouncement
Accounting Standards Update ("ASU") 2023-07, Segment Reporting - Improvement to Reportable Segment Disclosures- In November 2023, the FASB issued a new accounting standard which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The annual reporting requirements of the new standard will be effective for the Company beginning in fiscal year 2025 and interim reporting requirements beginning in the first quarter of fiscal year 2026, with early adoption permitted. The Company expects to adopt the new guidance in fiscal year 2025 with an immaterial impact on its consolidated financial statements.
ASU 2023-09, Improvements to income Tax Disclosures - In December 2023, the FASB issued a new accounting standard to expand the disclosure requirements for income taxes, specifically related to rate reconciliation and income taxes paid. The new standard is effective to the Company beginning in fiscal year 2026 with early adoption permitted. The Company expects to adopt the new guidance in fiscal year 2026 with an immaterial impact on its consolidated financial statements.
v3.24.1.1.u2
Summary Of Accounting Policies (Tables)
 12 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Allowance for Doubtful Accounts
The following table summarizes the activity in Nextracker’s allowance for credit losses during fiscal years 2024, 2023, and 2022:

Balance at
beginning
of year		Charges/(recoveries) to costs and expenses (1)Deductions/
Write-Offs		Balance at
end of
year
Allowance for credit losses:(In thousands)
Year ended March 31, 2022$3,595 $(21)$— $3,574 
Year ended March 31, 2023$3,574 $(1,054)$(752)$1,768 
Year ended March 31, 2024$1,768 $2,197 $(93)$3,872 
(1) Charges and recoveries incurred during fiscal years 2024 and 2023 are primarily for costs and expenses or bad debt and recoveries related to various distressed customers.
Summary of Product Warranty
The following table summarizes the activity related to the estimated accrued warranty reserve for the fiscal years ended March 31, 2024 and 2023:
As of March 31,
20242023
(In thousands)
Beginning balance$22,591$10,485
Provision (release) for warranties issued (1)(4,459)13,099
Payments(5,621)(993)
Ending balance$12,511$22,591
(1)During fiscal year ended March 31, 2023, the Company identified a specific design issue with a non-core product, and recorded an additional $8.7 million charge to cost of sales on its consolidated statement of operations and comprehensive income, related to future remediation costs, which may include replacement parts and services.
Summary of Property, Plant and Equipment Repairs and maintenance costs are expensed as incurred. Property and equipment is comprised of the following:
Depreciable life
(In years)		As of March 31,
20242023
(In thousands)
Machinery and equipment
3 - 8
$10,623 $9,062 
Leasehold improvements
Up to 5
5,168 4,302 
Furniture, fixtures, computer equipment and software
3 - 7
11,783 10,080 
Construction-in-progress—3,051 1,111 
30,625 24,555 
Accumulated depreciation(21,389)(17,300)
Property and equipment, net$9,236 $7,255 
Summary of Redeemable Noncontrolling Interest
The following table present a reconciliation of the change in redeemable non-controlling interests for the periods presented:
Fiscal year ended March 31,
20242023
(In thousands)
Balance at beginning of period$3,560,628 $— 
Establishment of non-controlling interests— 265,564 
Net income attributable to redeemable non-controlling interests171,937 2,446 
Reclassification of redeemable non-controlling interest(622,292)— 
Tax distributions(64,365)— 
Redemption value adjustments822,635 3,292,618 
Effect of spin-off from Flex(3,868,543)— 
Balance at end of period$— $3,560,628 
v3.24.1.1.u2
Leases (Tables)
 12 Months Ended
Mar. 31, 2024
Lessee Disclosure [Abstract]  
Summary of the components of lease cost recognized
The components of lease cost recognized under ASC 842 Leases were as follow (in thousands):
Fiscal year ended March 31,
202420232022
Operating lease cost$2,281$1,922$1,769
Summary of amounts reported in the consolidated balance sheet
Amounts reported in the consolidated balance sheet as of March 31, 2024 and 2023 were as follows (in thousands, except weighted average lease term and discount rate):
As of March 31,
20242023
Operating Leases:
Operating lease ROU assets$17,390 $3,337 
Operating lease liabilities$17,457 $3,394 
Weighted-average remaining lease term (In years)4.32.6
Weighted-average discount rate5.6 %4.7 %
Summary of other information related to leases
Other information related to leases was as follows (in thousands):
Fiscal year ended March 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,299$1,928$1,818
Non-cash investing activity:
Lease liabilities arising from obtaining ROU assets$15,873$756$1,718
Summary of future lease payments under non-cancellable leases
Future lease payments under non-cancellable leases as of March 31, 2024 are as follows (in thousands):
Operating Leases
Fiscal year ended March 31,
2025$4,722 
20264,552 
20274,619 
20283,103 
20292,599 
Total undiscounted lease payments19,595 
Less: imputed interest2,138 
Total lease liabilities$17,457 
v3.24.1.1.u2
Revenue (Tables)
 12 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Nextracker's Revenue Disaggregation The following table presents Nextracker’s revenue disaggregated based on timing of transfer—point in time and over time for the fiscal years ended March 31, 2024, 2023 and 2022:
Fiscal year ended March 31,

202420232022
(In thousands)
Timing of Transfer
Point in time$35,268$50,516$127,924
Over time2,464,5731,851,6211,329,668
Total revenue$2,499,841$1,902,137$1,457,592
v3.24.1.1.u2
Goodwill and intangible assets (Tables)
 12 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Intangible Assets
The components of identifiable intangible assets are as follows:
As of March 31, 2024As of March 31, 2023
(In thousands)Weighted-average remaining useful life (in years)Gross
carrying
amount		Accumulated
amortization		Net
carrying
amount		Gross
carrying
amount		Accumulated
amortization		Net
carrying
amount
Trade name and other intangibles4.7$3,000$(1,454)$1,546$2,500$(1,179)$1,321
Summary of Intangible Asset Amortization Expense Total intangible asset amortization expense recognized in operations during the fiscal years ended March 31, 2024, 2023 and 2022 are as follows:
Fiscal year ended March 31,

202420232022
(In thousands)
Cost of sales$275$250$4,043
Selling general and administrative expense—9574,422
Total amortization expense$275$1,207$8,465
Summary of Future Annual Amortization Expense
Estimated future annual amortization expense for the above amortizable intangible assets are as follows:
Amount
(In thousands)
Fiscal year ending March 31,
2025$350
2026350
2027350
2028321
2029175
Thereafter—
Total amortization expense$1,546
v3.24.1.1.u2
Stock-based compensation (Tables)
 12 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement, Additional Disclosure [Abstract]  
Schedule of Employee Service Share Based Compensation Allocation of Recognized Period Costs
The following table summarizes the Company’s stock-based compensation expense:
Fiscal year ended March 31,

202420232022
(In thousands)
Cost of sales$10,764$12,794$1,526
Selling, general and administrative expenses38,32519,2001,522
Research and development7,694——
Total stock-based compensation expense (1)$56,783$31,994$3,048
(1)Prior to the separation from Flex as described in Note 6, the expense included an allocation of Flex’s corporate and shared functional employee expense of immaterial amounts. Additionally, during fiscal year 2024, an immaterial number of awards were forfeited due to employee terminations.
Summary of Unrecognized Compensation Expense For Unvested Awards
As of March 31, 2024, the total unrecognized compensation expense for unvested awards under the 2022 Plan and the related remaining weighted average period for expensing is summarized as follow:
Unrecognized compensation expense
(in thousands)
Weighted- average remaining period
(in years)
Options$17,490 2.0
RSU42,218 0.8
PSU (1)23,213 1.4
Total unrecognized compensation expense$82,921 
(1)Excludes the expense associated to 292,958 PSUs awards that do not meet the criteria for a grant date under ASC 718 as of March 31, 2024.
Summary of Fair Value of the Company's Awards Granted Under the 2022 Plan
The fair value of the Company's awards granted under the 2022 Plan was estimated based on the following assumptions:
Fiscal year ended March 31,
20242023
Expected volatility65%
65% - 70%
Expected dividends—%—%
Risk-free interest rate
3.8% - 4.6%
2.5% - 2.7%
Summary of RSU Awards and PSU Awards Activity
The following table summarizes the RSU awards activity under the 2022 Plan:
Fiscal year ended March 31,
2024
Number of RSUsWeighted average grant date fair value per share
Unvested RSU awards outstanding, beginning of fiscal year2,002,419 $20.40
Granted1,381,092 41.55
Vested(538,811)21.33
Forfeited (1)(126,567)26.93
Unvested RSU awards outstanding, end of fiscal year2,718,133 $31.37
(1)Awards forfeited due to employee terminations.
The following table summarizes the PSU awards activity under the 2022 Plan:
Fiscal year ended March 31,
2024
Number of PSUsWeighted average grant date fair value per share
Unvested PSU awards outstanding, beginning of fiscal year219,713 $23.01
Granted (1)787,763 54.77
Vested— —
Forfeited— —
Unvested PSU awards outstanding, end of fiscal year (2)1,007,476 $47.01
(1)Includes 220 thousand PSUs awards related to the second tranche of performance-based awards granted in fiscal year 2023 that met the criteria for a grant date under ASC 718 as the performance metrics for these awards were determined during fiscal year 2024. Additionally, includes 131 thousand PSU awards representing the number of awards achieved above target levels based on the achievement of the performance-based metrics for the first tranche of PSU awards granted in fiscal 2023.
(2)Excludes 293 thousand PSUs award related to the third tranche of performance-based awards granted in fiscal year 2023 that do not meet the criteria for a grant date under ASC 718 as of March 31, 2024. The performance-based metrics for the third tranche of the PSUs were not yet determined as of March 31, 2024.
Summary of Additional Information PSUs Awarded
Additional information for the PSUs awarded is further detailed in the table below:
Range of shares that may be issued
Year of grant
Performance end date
Targeted number of awards as of March 31, 2024Weighted average grant date fair value per shareMinimumMaximum
Fiscal 2023March 31, 2024219,704$55.26—439,408(1)
Fiscal 2023 (2)March 31, 2025292,958$——585,916(1)
Fiscal 2024March 31, 2026436,675$54.53—1,310,025(3)
(1)Payouts can range from 0% to 200% of the applicable Tranche targets based on the achievement levels of the Company's Total Shareholder Return ("TSR"), as determined in the Restricted Incentive Unit Award Agreement under the 2022 Plan for performance-based vesting awards.
(2)Third tranche of PSUs granted in fiscal year 2023 that do not have a grant date or measurement date as of March 31, 2024.
(3)Payouts can range from 0% to 300% based on the achievement of certain metrics specific to the Company.
Summary of Options Awards Activity
The following table summarizes the Options awards activity under the 2022 Plan:
Fiscal year ended March 31,
2024
Number of OptionsWeighted average exercise price
Options awards outstanding, beginning of fiscal year2,692,619 $21.00
Granted489,732 39.24
Exercised— —
Forfeited (1)(30,949)21.00
Options awards outstanding, end of fiscal year3,151,402 $23.84
Options awards exercisable as of end of fiscal year— —
Options awards vested and expected to vest, end of fiscal year3,151,402 $23.84
(1)Awards forfeited due to employee terminations.
Summary of Vesting Information The vesting information for these shares is further detailed in the table below.
Range of shares that may be issued (1)
Targeted number of awards as of March 31, 2024Weighted average fair value per shareMinimumMaximumOptions Performance Period end date
Year of grant
Fiscal 20232,661,670$6.30—2,661,670March 31, 2026
Share-Based Payment Arrangement, Option, Exercise Price Range
The following table presents the composition of options outstanding and exercisable as of March 31, 2024:

Options outstandingOptions exercisable
Range of Exercise PriceNumber of Shares OutstandingWeighted average remaining contractual life (years)Weighted average exercise priceNumber of shares exercisableWeighted average exercise price
<$2019,617 1.5$9.8919,617 $9.89
$20.00 - $40.002,661,670 7.8$21.002,661,670 $21.00
$40.00 - $60.00470,115 9.2$40.47470,115 $40.47
3,151,402 8.0$23.843,151,402 $23.84
v3.24.1.1.u2
Earnings Per Share (Tables)
 12 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The computation of earnings per share and weighted average shares outstanding of the Company's common stock since the IPO is presented below:
Fiscal year ended March 31, 2024
February 9, 2023 - March 31, 2023

IncomeWeighted average shares outstandingPer ShareIncomeWeighted average shares outstandingPer Share
NumeratorDenominatorAmountNumeratorDenominatorAmount
(In thousands except share and per share amounts)
Basic EPS
Net income attributable to Nextracker Inc. common stockholders$306,24177,067,639$3.97$1,14345,886,065$0.02
Effect of Dilutive impact
Common stock equivalents from Options awards (1)1,089,554377,316
Common stock equivalents from RSUs (2)1,268,9231,291,346
Common stock equivalents from PSUs (3)558,73392,388
Income attributable to non-controlling interests and common stock equivalent from Class B common stock$189,97467,299,481$2,44698,204,522
Diluted EPS
Net income$496,215147,284,330$3.37$3,589145,851,637$0.02
(1)During fiscal year ended March 31, 2024, approximately 0.5 million of Options awards, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No Options awards were excluded from the computation of diluted earnings per share in the fiscal year ended March 31, 2023.
(2)During fiscal year ended March 31, 2024, an immaterial amount of RSU awards were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No RSU awards were excluded from the computation of diluted earnings per share in the fiscal year ended March 31, 2023.
(3)During fiscal year ended March 31, 2024, no PSU awards, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No PSU awards were excluded from the computation of diluted earnings per share in the fiscal year ended March 31, 2023.
v3.24.1.1.u2
Bank borrowings and long-term debt (Tables)
 12 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Scheduled repayments of the Company's bank borrowings and long-term debt
Scheduled repayments of the Company's bank borrowings and long-term debt are as follows:
Amount
Fiscal year ended March 31,
(In thousands)
2025$3,750 
20267,500 
20277,500 
2028131,250 
Total$150,000 
v3.24.1.1.u2
Supplemental Cash Flow Disclosures (Tables)
 12 Months Ended
Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Schedule Of Represents Supplemental Cash Flow Disclosures
The following table represents supplemental cash flow disclosures of non-cash investing and financing activities:
Fiscal year ended March 31,
202420232022
Non-cash investing activity:(In thousands)
Unpaid purchases of property and equipment$1,596$206$138
Non-cash financing activity:

TRA revaluation$23,823$—$—
Reclassification of redeemable non-controlling interest$622,292$—$—
Capitalized offering costs$—$(5,331)$5,331
Legal settlement paid by Parent (1)$—$20,428$—
Paid-in-kind dividend for Series A redeemable preferred units$—$21,427$—
Settlement of assets and liabilities with Parent$—$52,529$—
(1)amount presented in fiscal year 2023 is net of insurance recovery of $22.3 million related to the Company's litigation settlement in July 2022.
v3.24.1.1.u2
Relationship with Flex (Tables)
 12 Months Ended
Mar. 31, 2024
Related Party Transactions [Abstract]  
Summary of Material Transactions Reflected in Accumulated Net Parent Investment The following is a summary of material transactions reflected in the accumulated net parent investment during the fiscal years ended March 31, 2023 and 2022:
Fiscal year ended March 31,
2023 (3)
2022
(In thousands)
Corporate allocations (excluding stock-based compensation expense)$1,483$9,999
Transfer of operations to Nextracker (1)(39,025)(2,934)
Net cash pooling activities (2)(35,240)(35,490)
Income taxes41,23819,550
Net transfers to Parent
$(31,544)$(8,875)
(1)Primarily represents certain international operations where related income and/or losses are included in Nextracker’s consolidated statements of operations. Cash was also collected by the international operations on behalf of Nextracker, for which Nextracker and Flex do not intend to settle in the future. For the fiscal year 2023, the balance includes the legal settlement paid by Flex.
(2)Primarily represents financing activities for cash pooling and capital transfers.
(3)Represents transactions reflected in accumulated net parent investment through February 8, 2023.
v3.24.1.1.u2
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Income before Income Tax, Domestic and Foreign
The domestic and foreign components of income before income taxes were comprised of the following:
Fiscal year ended March 31,
202420232022
(In thousands)
Domestic$576,009$117,115$45,259
Foreign31,988 51,968 19,849 
Total$607,997 $169,083 $65,108 
Summary of Components of Income Tax Expense (Benefit)
The provision for income taxes consisted of the following:
Fiscal year ended March 31,
202420232022
Current:
(In thousands)
Domestic$65,286$35,244$13,558
Foreign7,904 18,238 5,974 
Total$73,190 $53,482 $19,532 
Deferred:
Domestic30,496 (8,660)(6,173)
Foreign8,096 2,928 836 
Total$38,592 $(5,732)$(5,337)
Provision for income taxes$111,782 $47,750 $14,195 
Summary of Effective Income Tax Rate Reconciliation The reconciliation of the income tax expense expected based on domestic statutory income tax rates to the expense (benefit) for income taxes included in the consolidated statements of operations is as follows:
Fiscal year ended March 31,
202420232022
(In thousands)
Income taxes based on domestic statutory rates$127,679$35,508$13,673
Effect of tax rate differential2,165 7,487 2,638 
FDII Deduction(9,055)(3,235)(1,583)
Foreign disregarded entities5,574 11,020 — 
Foreign tax deduction— (3,659)— 
Change in TRA Liability(12,416)— — 
Amount allocated to Non-controlling interest(41,348)(1,671)— 
Stock-based compensation— — (424)
State7,810 4,535 880 
Change in State Effective Rate31,279 — — 
Guaranteed payment on Series A Preferred Units— (4,500)(875)
Other94 2,265 (114)
Provision for income taxes$111,782 $47,750 $14,195 
Summary of Deferred Tax Assets and Liabilities
The components of deferred income taxes are as follows:
As of March 31,
20242023
Deferred tax liabilities:
(In thousands)
Foreign taxes$(14,319)$(458)
Fixed assets(3)(54)
Others(763)(2,230)
Total deferred tax liabilities(15,085)(2,742)
Deferred tax assets:
Stock-based compensation15,629 2,222 
Net operating loss and other carryforwards5,032 5,467 
Investment in Nextracker LLC409,716 249,377 
Foreign Tax Credits9,455 — 
Others5,908 1,598 
Total deferred tax assets445,740 258,664 
Valuation allowances(1,173)(1,528)
Total deferred tax assets, net of valuation allowances444,567 257,136 
Net deferred tax asset$429,482$254,394
The net deferred tax asset is classified as follows:
Long-term asset$438,272 $254,767 
Long-term liability(8,790)(373)
Total$429,482$254,394
Summary of Operating Loss Carryforwards These tax losses and other carryforwards will expire at various dates as follows:
Expiration dates of deferred tax assets related to operating losses and other carryforwards
(In thousands)
2025 - 2030$— 
2031 - 2036189 
2037 - Post— 
Indefinite3,671 
Total$3,860 
Summary of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Fiscal year ended March 31,
202420232022
(In thousands)
Balance, beginning of fiscal year$434$440$465
Impact from foreign exchange rates fluctuation(85)(6)(25)
Balance, end of fiscal year$349$434$440
v3.24.1.1.u2
Segment Reporting (Tables)
 12 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Summary of Geographic Information of Revenue The following table sets forth geographic information of revenue based on the locations to which the products are shipped:
Fiscal year ended March 31,

2024
2023
2022
(In thousands)
Revenue:
U.S.$1,702,61168%$1,298,59668%$904,94662%
Rest of the World797,23032%603,54132%552,64638%
Total$2,499,841$1,902,137$1,457,592
The United States is the principal country of domicile.
The following table summarizes the countries that accounted for more than 10% of revenue in fiscal years 2024, 2023, and 2022. Revenue is attributable to the countries to which the products are shipped.
Fiscal year ended March 31,
202420232022
(In thousands)
Revenue:
U.S.1,702,611 68 %1,298,596 68 %$904,94662%
Brazil281,272 11 %295,846 16 %188,36813%
v3.24.1.1.u2
Description of Business and Organization of Nextracker Inc - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
Jul. 03, 2023
Feb. 13, 2023
Feb. 10, 2023
Mar. 31, 2024
Jan. 02, 2024
Mar. 31, 2023
Dec. 19, 2022
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Number of shares repurchased during the period (in shares)   100          
Common stock, shares, outstanding (in shares) 62,053,870            
Yuma, Inc              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Number of shares repurchased during the period (in shares) 14,025,000            
TPG Rise              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Number of shares repurchased during the period (in shares) 1,606,562            
Common Class A              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Common stock, shares, outstanding (in shares)       140,773,223   45,886,065  
Common Class B              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Common stock, shares, outstanding (in shares)       3,856,175   98,204,522  
IPO | Common Class A              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Issuance of Class A common stock sold in follow-on offering (in shares)   30,590,000          
Sale of stock price per share (in USD per share)   $ 24.00          
Proceeds from the IPO   $ 693.8          
Payments for underwriting expense   $ 40.4          
Follow-on Offering, Company Shares | Common Class A              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Number of shares issued in transaction (in shares) 15,631,562            
Follow-on Offering              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Consideration received on transaction $ 552.0            
Follow-on Offering | Common Class A              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Number of shares issued in transaction (in shares) 18,150,000            
Yuma, Inc. | Nextracker Inc              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Noncontrolling interest, ownership percentage by parent             100.00%
TPG Rise | Common Class A              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Issuance of Class A common stock sold in follow-on offering (in shares)     15,279,190        
TPG Rise | Common Class B              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Stock repurchased and retired during period (in shares) 1,606,562            
Common stock, shares, outstanding (in shares) 8,140,341            
Flex Ltd | Common Class A              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Common stock, shares, outstanding (in shares) 74,432,619            
Flex Ltd | Common Class B              
Organization Consolidation And Presentation Of FinancialS tatements [Line Items]              
Stock repurchased and retired during period (in shares) 14,025,000            
Common stock, shares, outstanding (in shares) 74,432,619       74,432,619    
Shares cancelled (in shares) 74,432,619            
v3.24.1.1.u2
Summary Of Accounting Policies - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Mar. 31, 2021
Product Warranty Liability [Line Items]        
Contract assets $ 397,123 $ 297,960    
Unbilled receivables current 141,400 116,300    
Contract with customer liability revenue recognized $ 152,300 $ 74,900    
Performance obligation amount recognized as a percentage of contract with customers liability of the previous period 72.00% 70.00%    
Revenue remaining performance obligation $ 294,900      
Percentage of remaining performance obligation to be recognized as revenue in the next twelve months 76.00%      
Cost of sales reduction, after rebate $ 121,400      
Receivable, after rebate 125,400      
Accrued expenses, after rebate 3,000      
Depreciation on property plant and equipment 4,100 $ 3,400 $ 2,700  
Liability for uncertain tax benefits $ 349 434 440 $ 465
Percentage of future tax benefits representing uncertain tax benefits 85.00%      
Short-term deposits and advances $ 104,700 29,300    
Deferred tax assets and other assets non current 474,612 273,686    
Accrued Freight and Tariffs 43,200 44,600    
Accrued payroll $ 39,200 $ 15,200    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities    
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] TRA liability and other liabilities TRA liability and other liabilities    
Other Noncurrent Liabilities        
Product Warranty Liability [Line Items]        
Standard product warranty liability non current $ 6,400 $ 11,800    
Contract with customers liability non current 69,300 35,800    
Operating lease liabilities non current 13,600 1,500    
Other Current Liabilities        
Product Warranty Liability [Line Items]        
Operating lease liabilities current 3,900 1,900    
Nextracker Inc        
Product Warranty Liability [Line Items]        
Deferred tax assets and other assets non current 438,300 257,100    
Tax Receivable Agreement        
Product Warranty Liability [Line Items]        
Liabilities relating to tax receivable agreement and others non current 391,600 230,300    
Revenue Benchmark | Customer Concentration Risk | Customer One        
Product Warranty Liability [Line Items]        
Revenue from contract with customers excluding assessed tax   $ 331,000 $ 196,200  
Revenue Benchmark | Customer Concentration Risk | Customer Two        
Product Warranty Liability [Line Items]        
Revenue from contract with customers excluding assessed tax $ 426,100      
Accounts Receivable And Contract With Customer Assets | Customer Concentration Risk | Customer One        
Product Warranty Liability [Line Items]        
Concentration risk percentage 12.00% 15.00%    
Accounts Receivable And Contract With Customer Assets | Customer Concentration Risk | Customer Two        
Product Warranty Liability [Line Items]        
Concentration risk percentage 16.00%      
Minimum        
Product Warranty Liability [Line Items]        
Extended warranty term of revenue recognition 10 years      
Standard warranty term of revenue recognition 5 years      
Trade receivables, term 30 days      
Standard product warranty term 5 years      
Minimum | Revenue Benchmark | Customer Concentration Risk | Customer One        
Product Warranty Liability [Line Items]        
Concentration risk percentage   10.00% 10.00%  
Minimum | Accounts Receivable And Contract With Customer Assets | Customer Concentration Risk | Customer Two        
Product Warranty Liability [Line Items]        
Concentration risk percentage 10.00%      
Maximum        
Product Warranty Liability [Line Items]        
Extended warranty term of revenue recognition 15 years      
Standard warranty term of revenue recognition 10 years      
Trade receivables, term 90 days      
Standard product warranty term 10 years      
Nextracker LLC        
Product Warranty Liability [Line Items]        
Variable interest entity ownership percentage 100.00%      
v3.24.1.1.u2
Summary Of Accounting Policies - Summary of Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of year $ 1,768 $ 3,574 $ 3,595
Charges/(recoveries) to costs and expenses 2,197 (1,054) (21)
Deductions/ Write-Offs (93) (752) 0
Balance at end of year $ 3,872 $ 1,768 $ 3,574
v3.24.1.1.u2
Summary Of Accounting Policies - Summary of Product Warranty (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]    
Beginning balance $ 22,591 $ 10,485
Provision (release) for warranties issued (4,459) 13,099
Payments (5,621) (993)
Ending balance $ 12,511 $ 22,591
v3.24.1.1.u2
Summary Of Accounting Policies - Summary of Product Warranty - Footnote (Details)
$ in Millions
 12 Months Ended
Mar. 31, 2024
USD ($)
Cost of sales  
Product Warranty Liability [Line Items]  
Product Warranty Expense $ 8.7
v3.24.1.1.u2
Summary Of Accounting Policies - Summary of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Property, Plant and Equipment [Line Items]    
Property, plant and equipment $ 30,625 $ 24,555
Accumulated depreciation (21,389) (17,300)
Property and equipment, net 9,236 7,255
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment $ 10,623 9,062
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Depreciable life (In years) 5 years  
Property, plant and equipment $ 5,168 4,302
Furniture, fixtures, computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment 11,783 10,080
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment $ 3,051 $ 1,111
Minimum | Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Depreciable life (In years) 3 years  
Minimum | Furniture, fixtures, computer equipment and software    
Property, Plant and Equipment [Line Items]    
Depreciable life (In years) 3 years  
Maximum | Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Depreciable life (In years) 8 years  
Maximum | Furniture, fixtures, computer equipment and software    
Property, Plant and Equipment [Line Items]    
Depreciable life (In years) 7 years  
v3.24.1.1.u2
Summary Of Accounting Policies - Summary of Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Equity, Attributable to Noncontrolling Interest [Roll Forward]      
Balance at beginning of period $ 3,560,628 $ 0  
Establishment of non-controlling interests 0 265,564  
Net income attributable to redeemable non-controlling interests 171,937 2,446  
Reclassification of redeemable non-controlling interest (622,292) 0 $ 0
Tax distributions (64,365) 0  
Redemption value adjustments 822,635 3,292,618  
Effect of spin-off from Flex (3,868,543) 0  
Balance at end of period $ 0 $ 3,560,628 $ 0
v3.24.1.1.u2
Leases - Additional Information (Details)
Mar. 31, 2024
Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract 5 years
v3.24.1.1.u2
Lesses - Summary Of The Components Of Lease Cost Recognized (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Lessee Disclosure [Abstract]      
Operating lease cost $ 2,281 $ 1,922 $ 1,769
v3.24.1.1.u2
Leases - Summary Of Lessee Of Operating Lease (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Lessee Disclosure [Abstract]    
Operating lease ROU assets $ 17,390 $ 3,337
Operating lease liabilities $ 17,457 $ 3,394
Weighted-average remaining lease term (In years) 4 years 3 months 18 days 2 years 7 months 6 days
Weighted-average discount rate 5.60% 4.70%
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Deferred tax assets and other assets Deferred tax assets and other assets
v3.24.1.1.u2
Leases - Summary Of Other Information Related To Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Lessee Disclosure [Abstract]      
Operating cash flows from operating leases $ 2,299 $ 1,928 $ 1,818
Lease liabilities arising from obtaining ROU assets $ 15,873 $ 756 $ 1,718
v3.24.1.1.u2
Leases - Summary Of Future Lease Payments Under Non-cancellable Leases (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Lessee Disclosure [Abstract]    
2025 $ 4,722  
2026 4,552  
2027 4,619  
2028 3,103  
2029 2,599  
Total undiscounted lease payments 19,595  
Less: imputed interest 2,138  
Operating lease liabilities $ 17,457 $ 3,394
v3.24.1.1.u2
Revenue - Summary of Nextracker's Revenue Disaggregation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenue $ 2,499,841 $ 1,902,137 $ 1,457,592
Point in time      
Disaggregation of Revenue [Line Items]      
Total revenue 35,268 50,516 127,924
Over time      
Disaggregation of Revenue [Line Items]      
Total revenue $ 2,464,573 $ 1,851,621 $ 1,329,668
v3.24.1.1.u2
Goodwill and intangible assets - Additional Information (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 265,153 $ 265,153
v3.24.1.1.u2
Goodwill and intangible assets - Summary of Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Net
carrying
amount $ 1,546  
Trade name and other intangibles    
Finite-Lived Intangible Assets [Line Items]    
Weighted-average remaining useful life (in years) 4 years 8 months 12 days  
Gross
carrying
amount $ 3,000 $ 2,500
Accumulated
amortization (1,454) (1,179)
Net
carrying
amount $ 1,546 $ 1,321
v3.24.1.1.u2
Goodwill and intangible assets - Summary of Intangible Asset Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Finite Lived Intangible Assets Amortization Expense [Line Items]      
Total amortization expense $ 275 $ 1,207 $ 8,465
Cost of sales      
Finite Lived Intangible Assets Amortization Expense [Line Items]      
Total amortization expense 275 250 4,043
Selling general and administrative expense      
Finite Lived Intangible Assets Amortization Expense [Line Items]      
Total amortization expense $ 0 $ 957 $ 4,422
v3.24.1.1.u2
Goodwill and intangible assets - Summary of Future Annual Amortization Expense (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 350
2026 350
2027 350
2028 321
2029 175
Thereafter 0
Total amortization expense $ 1,546
v3.24.1.1.u2
The Transactions - Additional information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jul. 03, 2023
Feb. 13, 2023
Feb. 12, 2023
Feb. 10, 2023
Mar. 31, 2024
Jan. 02, 2024
Oct. 25, 2023
Mar. 31, 2023
Feb. 08, 2023
Shareholders equity and redeemable preferred units [Line Items]                  
Distribution in an aggregate amount     $ 175.0            
Number of shares repurchased during the period (in shares)   100              
Preferred stock, shares authorized (in shares)                 50,000,000
Common stock, shares, outstanding (in shares) 62,053,870                
Common stock, shares, outstanding, percentage owned 42.91%                
Proceeds from (payments to) noncontrolling interests         $ 66.9        
Yuma, Inc                  
Shareholders equity and redeemable preferred units [Line Items]                  
Number of shares repurchased during the period (in shares) 14,025,000                
Common stock, par or stated value per share (in USD per share)             $ 0.001    
TPG Rise                  
Shareholders equity and redeemable preferred units [Line Items]                  
Number of shares repurchased during the period (in shares) 1,606,562                
TPG Rise                  
Shareholders equity and redeemable preferred units [Line Items]                  
Distribution in an aggregate amount     21.7            
Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Common stock, shares authorized (in shares)         900,000,000     900,000,000 900,000,000
Common stock, par or stated value per share (in USD per share)         $ 0.0001     $ 0.0001 $ 0.0001
Common stock, shares, outstanding (in shares)         140,773,223     45,886,065  
Common Class B                  
Shareholders equity and redeemable preferred units [Line Items]                  
Common stock, shares authorized (in shares)         500,000,000     500,000,000 500,000,000
Common stock, par or stated value per share (in USD per share)         $ 0.0001     $ 0.0001 $ 0.0001
Common stock, shares, outstanding (in shares)         3,856,175     98,204,522  
TPG Rise | Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Issuance of Class A common stock sold in follow-on offering (in shares)       15,279,190          
TPG Rise | Common Class B                  
Shareholders equity and redeemable preferred units [Line Items]                  
Stock repurchased and retired during period (in shares) 1,606,562                
Common stock, shares, outstanding (in shares) 8,140,341                
Common stock, shares, outstanding, percentage owned 5.63%                
Flex Ltd                  
Shareholders equity and redeemable preferred units [Line Items]                  
Common stock, shares, outstanding, percentage owned 51.45%                
Flex Ltd | Yuma, Inc.                  
Shareholders equity and redeemable preferred units [Line Items]                  
Noncontrolling interest, ownership percentage by parent           100.00%      
Flex Ltd | Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Common stock, shares, outstanding (in shares) 74,432,619                
Flex Ltd | Common Class B                  
Shareholders equity and redeemable preferred units [Line Items]                  
Stock repurchased and retired during period (in shares) 14,025,000                
Common stock, shares, outstanding (in shares) 74,432,619         74,432,619      
Yuma, Inc.                  
Shareholders equity and redeemable preferred units [Line Items]                  
Distribution in an aggregate amount     $ 153.3            
Yuma, Inc. | Common Class B | Nextracker LLC                  
Shareholders equity and redeemable preferred units [Line Items]                  
Common stock, par or stated value per share (in USD per share)           $ 0.0001      
Noncontrolling interest, ownership percentage by parent           51.48%      
Subsidiary, shares owned, parent (in shares)           74,432,619      
IPO                  
Shareholders equity and redeemable preferred units [Line Items]                  
Distribution in an aggregate amount       $ 175.0          
IPO | Nextracker Inc.                  
Shareholders equity and redeemable preferred units [Line Items]                  
Common unit outstanding (in shares)   140,773,223              
IPO | Two Thousand Twenty Three Credit Agreement                  
Shareholders equity and redeemable preferred units [Line Items]                  
Proceeds from term loan       $ 150.0          
IPO | Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Issuance of Class A common stock sold in follow-on offering (in shares)   30,590,000              
Proceeds from the IPO   $ 693.8              
IPO | Yuma, Inc                  
Shareholders equity and redeemable preferred units [Line Items]                  
Issuance of Class A common stock sold in follow-on offering (in shares)       30,590,000          
Distribution in an aggregate amount       $ 153.3          
Proceeds from the IPO       $ 693.8          
Common unit price per unit (in USD per share)       $ 22.68          
IPO | Yuma, Inc | Common Class B                  
Shareholders equity and redeemable preferred units [Line Items]                  
Issuance of Class A common stock sold in follow-on offering (in shares)       128,794,522          
IPO | TPG Rise                  
Shareholders equity and redeemable preferred units [Line Items]                  
Distribution in an aggregate amount       $ 21.7          
Follow-on Offering                  
Shareholders equity and redeemable preferred units [Line Items]                  
Consideration received on transaction $ 552.0                
Follow-on Offering | Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Number of shares issued in transaction (in shares) 18,150,000                
Sale of stock, consideration received on transaction, gross $ 662.5                
Follow-on Offering | Flex Ltd                  
Shareholders equity and redeemable preferred units [Line Items]                  
Payments of stock issuance costs $ 1.8                
Follow-on Offering, Company Shares | Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Number of shares issued in transaction (in shares) 15,631,562                
Follow-on Offering, Certain Stockholder Shares | Common Class A                  
Shareholders equity and redeemable preferred units [Line Items]                  
Number of shares issued in transaction (in shares) 2,518,438                
v3.24.1.1.u2
Stock-based compensation - Additional information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Feb. 09, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Incremental stock-based compensation expense   $ 12.3  
Weighted average remaining contractual life of options awards vested and expected to vest 8 years 2 months 12 days    
Options outstanding (in shares) 3,151,402 2,661,670  
Share-Based Payment Arrangement      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Weighted average modification date fair value (in usd per share)     $ 6.30
Weighted average grant date fair values (in USD per share) $ 24.95 $ 5.17  
Aggregate intrinsic value of options awards outstanding $ 102.2    
Aggregate intrinsic value of options awards vested and expected to vest $ 102.2    
Options awards vested during the period (in shares) 0 0  
Options      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Options outstanding (in shares) 3,151,402 2,692,619  
PSU      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Weighted average modification date fair value (in usd per share)     23.01
Weighted average grant date fair values (in USD per share) $ 19.35    
Granted (in USD per share) 54.77    
Common stock equivalents from RSUs      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Granted (in USD per share) $ 17.03    
Weighted average modification date fair value (in USD per share)     $ 20.40
Options awards vested during the period (in shares) 13,200,000 0  
Maximum      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Number of shares available for grant (in shares)   2,661,670  
Expected term for expected volatility of awards granted 4 years    
Minimum      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Number of shares available for grant (in shares)   0  
Expected term for expected volatility of awards granted 3 years    
2022 Plan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Incremental stock-based compensation expense   $ 23.3  
2022 Plan | Share-Based Payment Arrangement      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Number of grants authorized (in shares) 12,900,000    
Number of shares available for grant (in shares) 5,100,000    
2022 Plan | Options      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Award vesting period 3 years    
2022 Plan | Maximum | Share-Based Payment Arrangement      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Award, expiration period 10 years    
2022 Plan | Maximum | PSU      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Range of options awards vesting percentage 300.00%    
2022 Plan | Minimum | PSU      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Range of options awards vesting percentage 0.00%    
v3.24.1.1.u2
Stock-based compensation - Schedule of Employee Service Share Based Compensation Allocation of Recognized Period Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 56,783 $ 31,994 $ 3,048
Cost of sales      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 10,764 12,794 1,526
Selling general and administrative expense      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 38,325 19,200 1,522
Research and development      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 7,694 $ 0 $ 0
v3.24.1.1.u2
Stock-based compensation - Summary of Unrecognized Compensation Expense for Unvested Awards (Details)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Unrecognized compensation expense (in thousands) $ 82,921
Options  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Unrecognized compensation expense (in thousands) $ 17,490
Weighted- average remaining period (in years) 2 years
RSU  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Unrecognized compensation expense (in thousands) $ 42,218
Weighted- average remaining period (in years) 9 months 18 days
PSU  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Unrecognized compensation expense (in thousands) $ 23,213
Weighted- average remaining period (in years) 1 year 4 months 24 days
v3.24.1.1.u2
Stock-based compensation - Summary of Unrecognized Compensation Expense for Unvested Awards - Footnote (Details) - shares
Mar. 31, 2024
Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Unvested awards outstanding (in shares) 292,958  
Common stock equivalents from PSUs    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Unvested awards outstanding (in shares) 1,007,476 219,713
v3.24.1.1.u2
Stock-based compensation - Summary of Fair Value of the Company's Awards Granted Under the 2022 Plan (Details) - 2022 Plan
 12 Months Ended
Mar. 31, 2024
Rate
Mar. 31, 2023
Rate
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected volatility 65.00%  
Expected dividends 0.00% 0.00%
Minimum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected volatility 65.00%  
Risk-free interest rate 3.80% 2.50%
Maximum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected volatility 70.00%  
Risk-free interest rate 4.60% 2.70%
v3.24.1.1.u2
Stock-based compensation - Summary of RSU Awards and PSU Awards Activity (Details) - $ / shares
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Number of shares    
Granted (in shares) 220,000 131,000
Unvested awards outstanding, end of the fiscal year (in shares) 292,958  
Restricted Stock    
Number of shares    
Unvested awards outstanding, beginning of the fiscal year (in shares) 2,002,419  
Granted (in shares) 1,381,092  
Vested (in shares) (538,811)  
Forfeited (in shares) (126,567)  
Unvested awards outstanding, end of the fiscal year (in shares) 2,718,133 2,002,419
Weighted average grant date fair value per share    
Unvested awards outstanding, beginning of fiscal year (in USD per share) $ 20.40  
Granted (in USD per share) 41.55  
Vested (in USD per share) 21.33  
Forfeited (in USD per share) 26.93  
Unvested awards outstanding, end of fiscal year (in USD per share) $ 31.37 $ 20.40
PSU    
Number of shares    
Unvested awards outstanding, beginning of the fiscal year (in shares) 219,713  
Granted (in shares) 787,763  
Vested (in shares) 0  
Forfeited (in shares) 0  
Unvested awards outstanding, end of the fiscal year (in shares) 1,007,476 219,713
Weighted average grant date fair value per share    
Unvested awards outstanding, beginning of fiscal year (in USD per share) $ 23.01  
Granted (in USD per share) 54.77  
Vested (in USD per share) 0  
Forfeited (in USD per share) 0  
Unvested awards outstanding, end of fiscal year (in USD per share) $ 47.01 $ 23.01
v3.24.1.1.u2
Stock-based compensation - Summary of RSU Awards and PSU Awards Activity - Footnote (Details) - shares
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-Based Payment Arrangement, Additional Disclosure [Abstract]    
Granted (in shares) 220,000 131,000
Unvested awards outstanding (in shares) 292,958  
v3.24.1.1.u2
Stock-based compensation - Summary of Additional Information PSUs Awarded (Details) - $ / shares
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Targeted number of awards (in shares) 292,958  
Minimum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares)   0
Maximum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares)   2,661,670
Awards with grant date and measurement date | Share-Based Payment Arrangement, Tranche One    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Targeted number of awards (in shares) 219,704  
Weighted average grant date fair value per share (in USD per share) $ 55.26  
Awards with grant date and measurement date | Share-Based Payment Arrangement, Tranche Two    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Targeted number of awards (in shares) 292,958  
Weighted average grant date fair value per share (in USD per share) $ 0  
Awards with grant date and measurement date | Minimum | Share-Based Payment Arrangement, Tranche One    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 0  
Awards with grant date and measurement date | Minimum | Share-Based Payment Arrangement, Tranche Two    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 0  
Awards with grant date and measurement date | Maximum | Share-Based Payment Arrangement, Tranche One    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 439,408  
Awards with grant date and measurement date | Maximum | Share-Based Payment Arrangement, Tranche Two    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 585,916  
Awards without a grant date and measurement date    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Targeted number of awards (in shares) 436,675  
Weighted average grant date fair value per share (in USD per share) $ 54.53  
Awards without a grant date and measurement date | Minimum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 0  
Awards without a grant date and measurement date | Maximum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 1,310,025  
v3.24.1.1.u2
Stock-based compensation - Summary of Additional Information PSUs Awarded - Footnote (Details) - Common stock equivalents from PSUs
Mar. 31, 2024
Mar. 31, 2023
Minimum | Share-Based Payment Arrangement, Tranche One    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Payout range 0.00%  
Minimum | Share-Based Payment Arrangement, Tranche Two    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Payout range 0.00%  
Maximum | Share-Based Payment Arrangement, Tranche One    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Payout range 160.00% 200.00%
Maximum | Share-Based Payment Arrangement, Tranche Two    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Payout range 300.00%  
v3.24.1.1.u2
Stock-based compensation - Summary of Options Awards Activity (Details)
 12 Months Ended
Mar. 31, 2024
$ / shares
shares
Number of Options  
Options awards outstanding, beginning of fiscal year (in shares) 2,661,670
Options awards outstanding, end of fiscal year (in shares) 3,151,402
Number of options, Options awards exercisable as of end of fiscal year (in shares) 3,151,402
Weighted average exercise price  
Options awards outstanding, end of fiscal year (in USD per shares) | $ / shares $ 23.84
Weighted average exercise price (in USD per share) | $ / shares $ 23.84
Options  
Number of Options  
Options awards outstanding, beginning of fiscal year (in shares) 2,692,619
Granted (in shares) 489,732
Exercised (in shares) 0
Forfeited (in shares) (30,949)
Options awards outstanding, end of fiscal year (in shares) 3,151,402
Number of options, Options awards exercisable as of end of fiscal year (in shares) 0
Number of options, Options awards vested and expected to vest, end of fiscal year (in shares) 3,151,402
Weighted average exercise price  
Options awards outstanding, beginning of fiscal year (in USD per shares) | $ / shares $ 21.00
Granted (in USD per share) | $ / shares 39.24
Exercised (in USD per share) | $ / shares 0
Forfeited (in USD per share) | $ / shares 21.00
Options awards outstanding, end of fiscal year (in USD per shares) | $ / shares 23.84
Weighted average exercise price (in USD per share) | $ / shares 0
Weighted average exercise price, Options awards vested and expected to vest, end of fiscal year (in USD per share) | $ / shares $ 23.84
v3.24.1.1.u2
Stock-based compensation - Share-Based Payment Arrangement, Option, Exercise Price Range (Details) - $ / shares
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Options outstanding    
Options outstanding (in shares) 3,151,402 2,661,670
Weighted average remaining contractual life (years) 8 years  
Weighted average exercise price (in USD per share) $ 23.84  
Options exercisable    
Number of shares exercisable (in shares) 3,151,402  
Weighted average exercise price (in USD per share) $ 23.84  
Less than $20    
Options outstanding    
Options outstanding (in shares) 19,617  
Weighted average remaining contractual life (years) 1 year 6 months  
Weighted average exercise price (in USD per share) $ 9.89  
Options exercisable    
Number of shares exercisable (in shares) 19,617  
Weighted average exercise price (in USD per share) $ 9.89  
$20.00 - $40.00    
Options outstanding    
Options outstanding (in shares) 2,661,670  
Weighted average remaining contractual life (years) 7 years 9 months 18 days  
Weighted average exercise price (in USD per share) $ 21.00  
Options exercisable    
Number of shares exercisable (in shares) 2,661,670  
Weighted average exercise price (in USD per share) $ 21.00  
$40.00 - $60.00    
Options outstanding    
Options outstanding (in shares) 470,115  
Weighted average remaining contractual life (years) 9 years 2 months 12 days  
Weighted average exercise price (in USD per share) $ 40.47  
Options exercisable    
Number of shares exercisable (in shares) 470,115  
Weighted average exercise price (in USD per share) $ 40.47  
v3.24.1.1.u2
Stock-based compensation - Summary of Vesting Information (Details) - $ / shares
 12 Months Ended
Mar. 31, 2023
Mar. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Targeted number of awards (in shares) 2,661,670 3,151,402
Weighted average fair value per share (in USD per share) $ 6.30  
Options    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Targeted number of awards (in shares) 2,692,619 3,151,402
Minimum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 0  
Maximum    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Range of shares that may be issued (in shares) 2,661,670  
v3.24.1.1.u2
Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 2 Months Ended 12 Months Ended
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Basic EPS        
Net income available to Nextracker Inc common stockholders, Income numerator $ 1,143 $ 306,241    
Net income available to Nextracker Inc common stockholders, Weighted average shares 45,886,065 77,067,639 [1] 45,886,065 [1]  
Net income available to Nextracker Inc common stockholders, Per share amount $ 0.02 $ 3.97 [1] $ 0.02 [1]  
Effect of Dilutive impact        
Income attributable to non-controlling interests, Income numerator $ 2,446 $ 189,974 $ 2,446 $ 0
Income attributable to non-controlling interest and common stock equivalent from Class B common stock , Weighted average shares outstanding (in shares) 98,204,522 67,299,481    
Diluted EPS        
Net income available to Nextracker Inc. common stockholders, Income numerator $ 3,589 $ 496,215    
Net income and comprehensive income, Weighted average shares outstanding (in shares) 145,851,637 147,284,330 [1] 145,851,637 [1]  
Net income and comprehensive income, Per Share (in USD per share) $ 0.02 $ 3.37 [1] $ 0.02 [1]  
Common stock equivalents from option awards        
Effect of Dilutive impact        
Common stock equivalents (in shares) 377,316 1,089,554    
Diluted EPS        
Income attributable to non-controlling interest and common stock equivalent from Class B common stock , Weighted average shares outstanding (in shares)   500,000 0  
Common stock equivalents from RSUs        
Effect of Dilutive impact        
Common stock equivalents (in shares) 1,291,346 1,268,923    
Common stock equivalents from PSUs        
Effect of Dilutive impact        
Common stock equivalents (in shares) 92,388 558,733    
[1]
(1) For fiscal year 2023, basic and diluted income per share is applicable only for the period February 9, 2023 through March 31, 2023, which is the period following the initial public offering ("IPO") and the related Transactions. See Note 8 for the calculation of shares used in the computation of earnings per share and the basis for the computation of earnings per share.
v3.24.1.1.u2
Bank borrowings and long-term debt - Additional information (Details) - Two Thousand Twenty Three Credit Agreement - USD ($)
$ in Millions
 12 Months Ended
Feb. 28, 2023
Mar. 31, 2024
Mar. 31, 2023
Feb. 13, 2023
Debt Instrument [Line Items]        
Long-term debt, term       5 years
Debt instrument, basis spread on variable rate, financial metric period   12 months    
Long-Term Debt        
Debt Instrument [Line Items]        
Long-Term line of credit   $ 144.0 $ 147.1  
Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Credit spread basis points, adjustment 0.10%      
Debt instrument, interest rate, effective percentage   7.12% 6.90%  
Debt Instrument, basis spread on variable rate   1.72%    
Minimum | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis points 1.625%      
Minimum | Base Rate        
Debt Instrument [Line Items]        
Basis points 0.625%      
Minimum | Eurodollar        
Debt Instrument [Line Items]        
Basis points 1.625%      
Maximum | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis points 2.00%      
Maximum | Base Rate        
Debt Instrument [Line Items]        
Basis points 1.00%      
Maximum | Eurodollar        
Debt Instrument [Line Items]        
Basis points 2.00%      
Term Loan        
Debt Instrument [Line Items]        
Line of credit facility, maximum borrowing, capacity       $ 150.0
Long-Term line of credit   $ 147.7 $ 147.1  
Term Loan | Other Current Liabilities        
Debt Instrument [Line Items]        
Long-Term line of credit   $ 3.7 $ 0.0  
Term Loan | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Debt instrument, interest rate, effective percentage   6.92%    
Revolving Credit Facility        
Debt Instrument [Line Items]        
Line of credit facility, maximum borrowing, capacity       $ 500.0
Long-Term line of credit   $ 434.3    
Revolving Credit Facility | Minimum        
Debt Instrument [Line Items]        
Debt instrument, periodic payment, percent of original principal       0.625%
Quarterly commitment fee on the undrawn portion 0.20%      
Revolving Credit Facility | Maximum        
Debt Instrument [Line Items]        
Long-Term line of credit       $ 100.0
Debt instrument, periodic payment, percent of original principal       1.25%
Quarterly commitment fee on the undrawn portion 0.35%      
Letter of Credit        
Debt Instrument [Line Items]        
Long-Term line of credit   $ 65.7   $ 300.0
Swing Line Loans        
Debt Instrument [Line Items]        
Long-Term line of credit       $ 50.0
v3.24.1.1.u2
Bank borrowings and long-term debt - Scheduled repayments of the Company's bank borrowings and long-term debt (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Debt Disclosure [Abstract]  
2025 $ 3,750
2026 7,500
2027 7,500
2028 131,250
Total $ 150,000
v3.24.1.1.u2
Supplemental cash flow disclosures - Summary Of Represents Supplemental Cash Flow Disclosures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]      
Unpaid purchases of property and equipment $ 1,596 $ 206 $ 138
TRA revaluation 23,823 0 0
Reclassification of redeemable non-controlling interest 622,292 0 0
Capitalized offering costs 0 (5,331) 5,331
Legal settlement paid by Parent 0 20,428 0
Paid-in-kind dividend for Series A redeemable preferred units 0 21,427 0
Settlement of assets and liabilities with Parent $ 0 $ 52,529 $ 0
v3.24.1.1.u2
Supplemental cash flow disclosures - Summary Of Represents Supplemental Cash Flow Disclosures - Footnote (Details)
$ in Millions
 12 Months Ended
Mar. 31, 2024
USD ($)
Supplemental Cash Flow Elements [Abstract]  
Insurance recoverable set off $ 22.3
v3.24.1.1.u2
Relationship with Flex - Additional information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 12, 2023
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Related Party Transaction [Line Items]        
Net transfers to Parent     $ (31,544) $ (8,875)
Accounts payable   $ 456,639 211,355  
Distribution in an aggregate amount $ 175,000      
Term Loan | Two Thousand Twenty Three Credit Agreement        
Related Party Transaction [Line Items]        
Proceeds from term loan 150,000      
Yuma, Inc.        
Related Party Transaction [Line Items]        
Distribution in an aggregate amount 153,300      
TPG Rise        
Related Party Transaction [Line Items]        
Distribution in an aggregate amount $ 21,700      
Related Party | Flex Ltd        
Related Party Transaction [Line Items]        
Net transfers to Parent     5,200 13,000
General and administrative expense     3,400 9,900
Cost of good sold and services sold     1,800 $ 3,100
Related party transaction purchases from related party   67,100 47,700  
Debt Issuance costs, gross   37,500 $ 36,500  
Receivables   38,600    
Accounts payable   $ 19,300    
v3.24.1.1.u2
Relationship with Flex - Summary of Material Transactions Reflected in Accumulated Net Parent Investment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Related Party Transaction [Line Items]    
Net transfers to Parent $ (31,544) $ (8,875)
Corporate allocations (excluding stock-based compensation expense)    
Related Party Transaction [Line Items]    
Net transfers to Parent 1,483 9,999
Transfers of Operations to Nextracker    
Related Party Transaction [Line Items]    
Net transfers to Parent (39,025) (2,934)
Net cash pooling activities    
Related Party Transaction [Line Items]    
Net transfers to Parent (35,240) (35,490)
Income taxes    
Related Party Transaction [Line Items]    
Net transfers to Parent $ 41,238 $ 19,550
v3.24.1.1.u2
Commitments and Contingencies - Additional Information (Details)
$ in Millions
Feb. 06, 2024
USD ($)
Noncontrolling Interest [Line Items]  
Noncontrolling interest, pro rata tax distribution to noncontrolling interest holders $ 94.3
Yuma, Inc  
Noncontrolling Interest [Line Items]  
Noncontrolling interest, pro rata tax distribution to noncontrolling interest holders $ 48.5
v3.24.1.1.u2
Income Taxes - Summary of Income before Income Tax, Domestic and Foreign (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]      
Domestic $ 576,009 $ 117,115 $ 45,259
Foreign 31,988 51,968 19,849
Income before income taxes $ 607,997 $ 169,083 $ 65,108
v3.24.1.1.u2
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Current:      
Domestic $ 65,286 $ 35,244 $ 13,558
Foreign 7,904 18,238 5,974
Total 73,190 53,482 19,532
Deferred:      
Domestic 30,496 (8,660) (6,173)
Foreign 8,096 2,928 836
Total 38,592 (5,732) (5,337)
Provision for income taxes $ 111,782 $ 47,750 $ 14,195
v3.24.1.1.u2
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]      
Income taxes based on domestic statutory rates $ 127,679 $ 35,508 $ 13,673
Effect of tax rate differential 2,165 7,487 2,638
FDII Deduction (9,055) (3,235) (1,583)
Foreign disregarded entities 5,574 11,020 0
Foreign tax deduction 0 (3,659) 0
Change in TRA Liability (12,416) 0 0
Amount allocated to Non-controlling interest (41,348) (1,671) 0
Stock-based compensation 0 0 (424)
State 7,810 4,535 880
Change in State Effective Rate 31,279 0 0
Guaranteed payment on Series A Preferred Units 0 (4,500) (875)
Other 94 2,265 (114)
Provision for income taxes $ 111,782 $ 47,750 $ 14,195
v3.24.1.1.u2
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 31, 2023
Deferred tax liabilities:    
Foreign taxes $ (14,319) $ (458)
Fixed assets (3) (54)
Others (763) (2,230)
Total deferred tax liabilities (15,085) (2,742)
Deferred tax assets:    
Stock-based compensation 15,629 2,222
Net operating loss and other carryforwards 5,032 5,467
Investment in Nextracker LLC 409,716 249,377
Foreign Tax Credits 9,455 0
Others 5,908 1,598
Total deferred tax assets 445,740 258,664
Valuation allowances (1,173) (1,528)
Total deferred tax assets, net of valuation allowances 444,567 257,136
Net deferred tax asset 429,482 254,394
The net deferred tax asset is classified as follows:    
Long-term asset 438,272 254,767
Long-term liability (8,790) (373)
Total $ 429,482 $ 254,394
v3.24.1.1.u2
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Feb. 13, 2023
Income Tax Contingency [Line Items]      
Deferred tax assets $ 3,860    
Deferred tax assets tax losses and other carryforwards 3,900    
Deferred tax assets valuation allowance 1,173 $ 1,528  
Undistributed earnings of foreign subsidiaries 14,000    
Deferred tax liability 1,400    
Unrecognized tax benefits interest and penalties expense 500    
Percentage of tax benefits on tax receivable agreement     85.00%
Deferred tax asset  tax receivable agreement 409,700 249,400  
Other tax related income 28,400    
Proceeds from (payments to) noncontrolling interests 66,900    
Tax Receivable Agreement      
Income Tax Contingency [Line Items]      
Liabilities relating to tax receivable agreement and others non current $ 391,600 $ 230,300  
v3.24.1.1.u2
Income Taxes - Summary of Operating Loss Carryforwards (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Operating Loss Carryforwards [Line Items]  
Total $ 3,860
2025 - 2030  
Operating Loss Carryforwards [Line Items]  
Total 0
2031 - 2036  
Operating Loss Carryforwards [Line Items]  
Total 189
2037 - Post  
Operating Loss Carryforwards [Line Items]  
Total 0
Indefinite  
Operating Loss Carryforwards [Line Items]  
Total $ 3,671
v3.24.1.1.u2
Income Taxes - Summary of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning of fiscal year $ 434 $ 440 $ 465
Impact from foreign exchange rates fluctuation (85) (6) (25)
Balance, end of fiscal year $ 349 $ 434 $ 440
v3.24.1.1.u2
Segment Reporting - Summary of Geographic Information of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Revenue, Major Customer [Line Items]      
Revenue $ 2,499,841 $ 1,902,137 $ 1,457,592
U.S. | Geographic Concentration Risk | Revenue Benchmark      
Revenue, Major Customer [Line Items]      
Revenue $ 1,702,611 $ 1,298,596 $ 904,946
Concentration risk percentage 68.00% 68.00% 62.00%
Rest of the World | Geographic Concentration Risk | Revenue Benchmark      
Revenue, Major Customer [Line Items]      
Revenue $ 797,230 $ 603,541 $ 552,646
Concentration risk percentage 32.00% 32.00% 38.00%
Brazil | Geographic Concentration Risk | Revenue Benchmark      
Revenue, Major Customer [Line Items]      
Revenue $ 281,272 $ 295,846 $ 188,368
Concentration risk percentage 11.00% 16.00% 13.00%
v3.24.1.1.u2
Segment Reporting - Additional Information (Details)
$ in Thousands
 12 Months Ended
Mar. 31, 2024
USD ($)
segment
Mar. 31, 2023
USD ($)
segment
Mar. 31, 2022
segment
Revenue, Major Customer [Line Items]      
Number of operating segments | segment 1 1 1
Number of reportable segments | segment 1 1 1
Property and equipment, net | $ $ 9,236 $ 7,255  
Geographic Concentration Risk | Revenue Benchmark | Other than U.S. and Brazil      
Revenue, Major Customer [Line Items]      
Concentration risk percentage 10.00% 10.00%  
Geographic Concentration Risk | Revenue Benchmark | U.S.      
Revenue, Major Customer [Line Items]      
Concentration risk percentage 68.00% 68.00% 62.00%
Geographic Concentration Risk | Property, plant and equipment | U.S.      
Revenue, Major Customer [Line Items]      
Property and equipment, net | $ $ 9,000 $ 7,200