KP Green Engg. — Q2 FY26 earnings call

Call held 21 Nov 2025

Management summary

KP Green Engineering reported a strong H1 FY26, achieving record revenue and profitability with significant YoY growth across key metrics. The company expanded its manufacturing capacity and operationalized new verticals, supported by a robust order book of INR1100 crores and an equivalent pipeline. Strategic MOUs for green energy infrastructure and the commissioning of Asia's largest galvanizing plant position the company for sustained growth, despite some investor concerns regarding promoter royalty and institutional holding.

Highlights

  • Consolidated total income of INR536 crores, up 101% YoY from INR266 crores in H1 FY25.

  • EBITDA of INR102 crores, grew 133% YoY.

  • Profit Before Tax (PBT) of INR78 crores, rose 116% YoY.

  • Profit After Tax (PAT) of INR58 crores, surged 112% YoY.

  • Order book reached approximately INR1100 crores, with an equivalent amount in the pipeline.

  • Asia's largest galvanizing plant is under commissioning, expected to start by December 2025.

  • New verticals (PEB, Heavy Engineering, Monopole, High Mast) are operational and receiving orders.

Concerns

  • Investor concern regarding 2% royalty payment on turnover to Mr. Faruk Patel, though management clarified its rationale.

  • Low institutional holding in the company, which management expects to improve with performance.

Key financials

  1. Total Income ₹536 Cr +101%YoY
  2. EBITDA ₹102 Cr +133%YoY
  3. PBT ₹78 Cr +116%YoY
  4. PAT ₹58 Cr +112%YoY
  5. ROE 24%

What they filed

Q4 FY26: revenue up 191.4%, net profit up 220.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue53 104 245 262 432 +715%532 +412%714 +191%
EBITDA9 18 33 40 68 +656%98 +444%147 +345%
Net profit5 11 24 27 46 +820%58 +427%77 +221%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,100 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹682 Cr

Execution

Majority of INR682 crores order will be executed in H2 FY26, with a small spillover to next year.

Composition

Mix 3 products
  • Solar/Renewable Energy (Solar, Wind) 50%
  • Transmission Line (GETCO, Evacuation) 30%
  • Other Products (Cable Tray, Crash Barriers) 20%

Share of order book by product

Pipeline

deal pipeline tcv

Pipeline is equivalent to the current order book.

The company has a strong order book and pipeline, enabling it to take on bigger orders and maintain growth momentum, with a strategic shift towards a higher external order mix.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed Smaller debt quantum or own funds for upcoming capex, avoiding capital market.
    • Capacity expansion to 4,00,500 metric tons per annum by FY26 end
    • Commissioning of Asia's largest galvanizing plant
    So, now the upcoming capex will not be a bigger one. It will be a smaller one. So, small, small additions will do. For that, I don't think we'll have to go to the capital market. So, I mean, smaller debt outcome quantum, we will be able to raise it on our own, because we also have a very good rating, A Category rating with KP Green Engineering, its first rating itself.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 60%-70%
    That minimum, we will grow at 60% to 70% that we said. Maximum, we didn't give the number. I mean, we can grow substantially.

    — Salim Yahoo

  • H2 Revenue Share Revenue · H2 FY26 · High confidence 60%
    So, 40% we have done in H1 or 40% and 60% usually happens in the H2. So, the same ratio will be maintained this year also. We will see that we will be maintaining 60% in the second half of this year.

    — Salim Yahoo

Capacity

  • Manufacturing Capacity Capacity · FY26 end · High confidence 4,00,500 metric tons per annum

    From 3,10,500 metric tons per annum today

    our current manufacturing capacity has now reached at 3,10,500 metric tons per annum, and we are on track to reach 4,00,500 metric tons per annum by the end of FY '26.

    — Salim Yahoo

  • Capacity Utilization Capacity · Peak point of time · Medium confidence 60%-70%
    But this entire capacity, we will be operating at 60% to 70% at a peak point of time.

    — Salim Yahoo

  • Capacity Utilization Capacity · FY28 · Medium confidence 50%-70%
    So that's why I am saying that 50% of the capacity will be utilized by FY '28, 50% to 60%, and we will go up to 70% also.

    — Salim Yahoo

Margin

  • EBITDA Margin Margin · FY26 and going forward · High confidence 15%-18%
    But we will be in the range of 15% to 18%, we are sure about. We will not be going below that.

    — Salim Yahoo

Vision

  • Renewable Energy Capacity Vision · 2030 · Low confidence 10 gigawatt
    we remain committed to our long-term vision of achieving 10 gigawatt by 2030.

    — Salim Yahoo

Order Book

  • Internal vs External Mix Order Book · Going forward · Medium confidence 30% internal, 70% external

    Previously 50% internal, 50% external → 30% internal, 70% external

    So, at present, the mix is 50-50. Going forward, we are planning to keep it at 30-70, 30-internal and 70-extra.

    — Salim Yahoo

What to watch in Q3 FY26

Galvanizing plant commissioning

next quarter
Current Under commissioning
Target Operational by December 2025

Why it matters

Successful commissioning is a major strategic milestone expected to enhance production efficiency and enable larger orders.

its Kettle that need to come from Germany, the Kettle has arrived and its installation has started and commissioning very soon, end of the December, think so, that galvanizing plant should start.

Risks & concerns

  • Royalty payments to promoter

    medium

    Investors are concerned about the 2% royalty on turnover paid to Mr. Faruk Patel.

    Analyst acknowledged

  • Competitive intensity in new segments (PEB)

    medium

    Analyst noted high competitive intensity in the Pre-Engineered Building (PEB) segment.

    Analyst acknowledged

  • Low institutional holding

    medium

    Analyst raised concern about the relatively low institutional holding in KP Green Engineering.

    Analyst acknowledged

Q&A highlights

6 direct
Royalty payment to promoter Direct
First, you need to understand that all the expenses of the brand are directly borne by Dr. Faruk Patel in his personal capacity. For example, when we recently advertised ourselves in the IPL, so all those expenses were directly paid by Faruk sir in the personal capacity. ... So, that's why we have kept it at 2% only, which is the minimum which is as per SEBI guidelines.

Addresses a key investor concern regarding payments to the promoter, clarifying the rationale and compliance with SEBI guidelines.

Asked by Rajesh Jain

Galvanizing plant impact on margins and revenue Direct
So, it is a part of the process. The only thing is that because of having a bigger galvanizing facility and everything, our process, our timeline reduces and we are able to deliver faster and we can get more orders of a bigger size and everything. That is there. As far as the galvanizing plant execution, when it will start and everything, I think Muinul bhai will throw some light on that. Muinul sir. ... Aakash, as I told you, it will impact our revenue because we will be able to take more and more orders of a bigger size and everything. But as far as margin is concerned, we will be able to maintain our margin.

Clarifies that the new galvanizing plant will enhance operational efficiency and revenue potential by enabling larger orders and faster delivery, but will not directly increase margins as it's a process, not a value-add product.

Asked by Akash Srivastav

Business model for green hydrogen and BESS MOUs Direct
Naturally, all these segments what we are getting into for KPI or KPE will require infrastructure and the infrastructure requirement of KP Group will be fulfilled by KP Green Engineering Only. So, that is clear that all the any business we take will require infrastructure and infrastructure, wherever infrastructure requirement comes, it is KP Green Engineering only.

Explains how KP Green Engineering will benefit from the group's strategic MOUs in new energy segments by providing the necessary infrastructure, ensuring internal demand.

Asked by Darshit Shah

Monopole division opportunity size and competitive advantage Direct
Actually, Monopole transmission line tower which has area used are very less. And in lattice type transmission line tower area is used is more. Means, for example, if you a take tower of 765 power grid. So, if the area consumed is 60 meter by 60 meter or 50 meter by 50 meter area, in comparison to them, this monopole is consumed 3 meter by 3 meter area. So, you can compare that a very small area, the monopole is installed. ... Because of that, in India, Asia's first, i.e., 3m x 3m, the monopole 3 meter dia, it will its caltrol and its galvanizing plant, hot dip galvanized and up to 14 meter is the length of our galvanizing kettle. So, we are the Asia's first galvanizing plant. thinking about future monopole, galvanizing will a huge contribution.

Highlights the significant space-saving advantage of monopoles over traditional lattice towers and KP Green Engineering's unique capability as Asia's first with a large galvanizing plant for such structures, indicating a strong competitive edge in a growing segment.

Asked by Shashi Kant

Low institutional holding Direct
See, if you look at my bigger company or our bigger company, KPI Green, okay, they have, there we have the likes of Vanguard, BlackRock. So, people are aware about KP Group and slowly, slowly, they will step into the other companies also. ... So, surely, they will keep on coming. And as far as the discussion, when we discuss for our KPI, so we also discuss for KP Energy and KP Green Engineering at the same time. So, they all are aware.

Addresses concerns about institutional investor participation, linking it to the broader KP Group's reputation and expecting increased interest in KP Green Engineering as it continues to perform.

Asked by Aniket Panda

Order book execution timeline for new INR682 crores order Direct
Yes, small will get spill over to next year. Majority will get in this half year itself.

Provides clarity on the execution timeline for the recently announced INR682 crores order, indicating that most of it will be recognized in the second half of FY26.

Asked by Deepak Jindal

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance Highlights

KP Green Engineering delivered a robust financial performance in H1 FY26, with consolidated total income reaching INR536 crores, marking an impressive 101% year-on-year growth. EBITDA surged by 133% to INR102 crores, while Profit Before Tax (PBT) rose 116% to INR78 crores. Profit After Tax (PAT) also saw significant growth, increasing by 112% year-on-year to INR58 crores, driven by strong operational efficiency and economies of scale.

Capacity Expansion and New Verticals

The company's manufacturing capacity has expanded to 3,10,500 metric tons per annum and is on track to reach 4,00,500 MTPA by the end of FY26. A major milestone is the commissioning of Asia's largest galvanizing plant, expected to be operational by December 2025, which will enhance production efficiency. KP Green Engineering also launched new verticals in Pre-Engineering Building, Heavy Engineering, Monopole, and High Mast, which have already started receiving orders and are establishing market presence.

Strong Order Book and Pipeline

KP Green Engineering secured new confirmed orders worth INR682 crores, contributing to a total order book of approximately INR1100 crores as of H1 FY26. The company also reported an equivalent amount in its pipeline, indicating strong future visibility. The order book composition is currently 50% internal (from KP Group companies) and 50% external, with a future target to shift to 30% internal and 70% external. Product-wise, 50% is from solar/renewable energy, 30% from transmission lines, and 20% from other products like cable trays and crash barriers.

Strategic Diversification and MOUs

The company is actively expanding into future-ready technologies through strategic MOUs. These include collaborations with Delta Electronics India for battery energy storage systems, green hydrogen, and EV charging infrastructure, as well as a JV with AHES, Korea, and GH2 Solar, India, for green ammonia. KP Green Engineering will fulfill the infrastructure requirements for these projects within the KP Group, reinforcing its commitment to sustainability-driven growth and leveraging its capabilities across the ecosystem.

Growth and Margin Outlook

Management reiterated its guidance for a minimum 60-70% revenue growth for FY26, with potential for higher. The company expects to achieve 60-70% capacity utilization at peak and 50-70% by FY28. EBITDA margins are projected to remain stable in the range of 15-18% for FY26 and beyond, attributed to customized product offerings and efficient execution. The company aims for a long-term vision of achieving 10 gigawatts in renewable energy by 2030.

Addressing Investor Concerns

Management addressed investor concerns regarding the 2% royalty payment to Mr. Faruk Patel, explaining that it covers brand creation and associated expenses borne personally by him, and is compliant with SEBI guidelines. While acknowledging the current low institutional holding, management expressed confidence that strong performance and the group's reputation would attract more institutional investors over time.

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