Concall AI

GP Eco — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

GP Eco Solutions India Limited reported a strong H1 FY26 with revenue growing 45% YoY to INR 121.94 crores, EBITDA doubling to INR 15.4 crores, and PAT increasing over 112% to INR 10.40 crores. The company is progressing with its BESS manufacturing facility, expected to be operational by Q4 FY26, and aims for significant revenue growth and margin expansion in the coming years, targeting 80% CAGR over three years. Management addressed concerns regarding potential oversupply in the BESS market and the need for skilled manpower.

Highlights

Revenue stood at INR 121.94 crores, reflecting a 45% YoY growth.
EBITDA doubled to INR 15.4 crores, growing at a rate of 101.4%.
PAT increased over 112% to INR 10.40 crores.
Battery energy storage systems manufacturing facility is on track to commence commercial operations by Q4 FY26.
Targeting to secure 50 megawatt hour of BESS orders by March FY26.

Concerns

Analyst raised concerns about potential oversupply in the BESS market.
Management noted a lack of experienced manpower in the BESS industry in India.
GST regulation changes led to deferral of INR 150 crores of business from Q1 to Q2.

Key financials

01 Revenue ₹121.94 Cr +45%YoY
02 EBITDA ₹15.4 Cr +101.4%YoY
03 PAT ₹10.4 Cr +112%YoY
04 EBITDA Margin 12.6%
05 PAT Margin 8.5%

What they filed

Q4 FY26: revenue up 565.9%, net profit up 3200.0% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY24	Q2 FY25	Q4 FY25	Q2 FY26	Q4 FY26
Revenue	44	83	163	121	293 +566%
Expenses	42	76	154	106	249
EBITDA	2	7	9	15	44 +2100%
Margin	5%	9%	5%	12%	15%
Other income	0	1	0	0	3
Interest	1	1	1	2	5
Depreciation	0	0	0	1	1
Profit before tax	1	7	7	13	41 +4000%
Tax rate	39%	26%	25%	23%	20%
Net profit	1	5	6	10	33 +3200%
EPS	42.50	4.18	4.84	8.79	25.12

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

₹30 Cr

as of 2025-11-13 quantified

Execution

targeting to secure somewhere around 50 megawatt hour by March

Pipeline

other

pipeline of 20-30 megawatt hour from Oriana

Current order book of 30 MWh, with a target to secure 50 MWh by March FY26, and an additional pipeline of 20-30 MWh from Oriana.

Source: Q&A

Capital allocation

high confidence

Capex Capex disclosed
- Investment for 3 GWh BESS manufacturing facility (2.5 GWh added to existing 0.5 GWh) ₹35 Cr
The investment is somewhere around INR 30 to INR 40 crores of investment is there.
Debt Gross ₹72 Cr
- New borrowing Debt increased from INR 33 crores to INR 72 crores in six months, mostly long-term for factory setup. ₹39 Cr
your debt has increased from INR 33 crores to INR 72 crores in six months. And how much is this for long-term project loan and how much is this for working capital, sir? Ma'am, basically, it is mostly the long term only.
Liquidity Liquidity disclosed Company receives 85% of project cost within one to two months, indicating efficient working capital management.

So, 85% of the project cost or the product cost we get within a span of one month or two months maximum once the design and everything and the technical approvals are there.

Guidance & targets

Revenue

Revenue Revenue · FY26 · High confidence INR 700-750 crores

Approximately, you can calculate, sir. It is 3x growth, which we have committed.

— Deepak Pandey
Revenue Growth Revenue · FY27 · High confidence 5x

And '27, it will be 5x.

— Deepak Pandey
Revenue Growth Revenue · FY28 · High confidence 7x

And with that run rate, you see, it is the 7x growth into '28.

— Deepak Pandey
Revenue CAGR Revenue · next 3 years · High confidence 80%

We are confident of achieving 80% of CAGR as discussed in the question-and-answer session also, 80% CAGR in revenue over the next three years

— Deepak Pandey

Margin

EBITDA Margin Margin · FY26 · High confidence 13-14%

Yeah, 13% to 14% approximately.

— Deepak Pandey
EBITDA Margin Margin · next 3 years · High confidence 17-18%

And over next three years, what we have communicated 17% to 18% will be there.

— Astik Mani Tripathi

Capacity

BESS Manufacturing Facility Operational Capacity · Jan/Feb FY26 · High confidence 3 GWh

have created a three gigawatt of facility, which will be operational by January, February in this FY26 only.

— Deepak Pandey
BESS Manufacturing Capacity Capacity · FY28 · High confidence 5 GWh

scaling from 500 megawatt hour to a 3 gigawatt hour and further to 5 gigawatt hour by financial year 2028.

— Deepak Pandey
Solar Module Facility Capacity · FY27 · High confidence 1.2 GW

Our 1.2 gigawatt top one solar module facility... '27 will be coming up to the 1.2 gigawatt.

— Deepak Pandey
Solar Cell Plant Capacity · FY27-28 · High confidence 3 GW

and 3 gigawatt solar cell plant manufacturing is under development, and we will create a complete backward integration manufacturing base by FY2728.

— Deepak Pandey

Order Inflow

BESS Order Target Order Inflow · March FY26 · High confidence 50 MWh

this financial year, we are targeting to secure somewhere around 50 megawatt hour by March

— Deepak Pandey

Market Share

Utility BESS Market Share Market Share · next financial year · Medium confidence 10%

So for that, we are aiming to have 10% market share.

— Deepak Pandey

What to watch in Q3 FY26

BESS Facility Commercial Operations

Next quarter (Q3 FY26)

Current On track for Q4 FY26 (Jan/Feb 2026)

Target Commercial operations commenced

Why it matters

Crucial for revenue growth and market share targets in the BESS segment, validating the company's strategic pivot.

Our battery energy storage systems, desk manufacturing facility is on track to commence commercial operations by Q4 FY26

Risks & concerns

Potential Oversupply in BESS Market
medium

Analyst raised concerns about many players entering the BESS market, potentially leading to oversupply, though management emphasized growing demand and evolving technology.

Analyst acknowledged
Lack of Experienced Manpower in BESS
medium

Management highlighted that BESS is a new field in India, leading to a scarcity of experienced manpower, and the company is investing in building its team.

Management acknowledged
Impact of GST Regulation Changes on Revenue
low

GST regulation changes caused INR 150 crores of business to be deferred from Q1 to Q2, impacting H1 revenue, but these orders are now being executed.

Management acknowledged

Q&A highlights

7 direct

Demand-Supply Dynamics in BESS Market Partial

Sir, we have to just understand that this is a technology which is under evolution right now. And this is just around the corner wherein the industry needs this to fulfil the peak hour saving, then the TOD demands and the electricity demands for the stability of the electricity demand.

Analyst questioned potential oversupply due to many new entrants, while management emphasized evolving technology and growing demand, without providing specific demand-supply estimates.

Asked by Tushar Sarda

Investment and Margins for BESS Facility Direct

The investment is somewhere around INR 30 to INR 40 crores of investment is there. ... Somewhere around 15% margins are there which we can increase with our value chain and the purchasing strength and the facility which we are implementing.

Clarified the capital expenditure for the new 3 GWh BESS facility and the expected profit margins, indicating strong profitability potential.

Asked by Tushar Sarda

Status of Ghana Government MoU Direct

So, sir, MoU has not been signed. That is some wrong information. It is still under consideration. They had invited us to Ghana to understand the existing potential and whatever the requirement which we can meet. So, that is still pending.

Corrected market perception regarding international MoUs, clarifying that discussions are ongoing but no agreements have been signed yet, providing a realistic timeline for international expansion.

Asked by Abhishek Agarwal

Discrepancy in Revenue Growth Targets Direct

Sir, the revenue growth, which we have projected in last con call is exactly the same. And the YoY growth, which we have given in the presentation also, that is also in line. The only 50% CAGR, which is posted in the system, that is, if you see, over a period of three years, we are going to cater somewhere around 80% of CAGR.

Addressed confusion regarding various revenue growth figures, clarifying the long-term CAGR target of 80% over three years.

Asked by Abhishek Agarwal

Increase in Debt and its Utilization Direct

your debt has increased from INR 33 crores to INR 72 crores in six months. And how much is this for long-term project loan and how much is this for working capital, sir? Ma'am, basically, it is mostly the long term only.

Provided clarity on the significant increase in debt, attributing it to long-term projects for factory setup, and management's plan to offset it with future profits.

Asked by Tripti Shukla

Positive Cash Flow from New BESS Unit Direct

No. As in FY26, we have the best facilities is around the corner, 80% work has been done in the systems. The machines are about to reach by December. And from January end, the first few products will be rolled out also from our factory.

Gave a timeline for when the new BESS manufacturing unit is expected to start production and contribute to cash flow, indicating near-term operationalization.

Asked by Tripti Shukla

H2 EPC Project Execution Status Direct

Sir, by December, we'll be completing somewhere around, you can say, INR 40 to INR 50 crores का projects हमारे handover हो जाएंगे by December. And the balance will be executed by January, February and March.

Provided specific milestones for the execution of EPC projects in H2 FY26, offering visibility on revenue recognition for the second half of the fiscal year.

Asked by Ankur Gulati

October Revenue Performance Direct

In October, sir, the revenue is on a lower side. But from November, the revenues will be on a higher side. And in October, if we say, we have booked somewhere around INR 80 crores, INR 90 crores of business already is booked, but it is due to be built and delivered.

Explained the lower October revenue due to GST changes but highlighted strong bookings for the month, indicating a recovery in revenue in subsequent months.

Asked by Nitin Kapoor

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance

GP Eco reported robust H1 FY26 results with revenue reaching INR 121.94 crores, marking a 45% YoY increase. Profitability saw even stronger growth, with EBITDA doubling to INR 15.4 crores (101.4% YoY growth) and PAT increasing over 112% to INR 10.40 crores. This consistent performance underscores the strength of their integrated model and focus on execution excellence, despite some revenue deferrals due to GST regulation changes.

BESS Manufacturing and Expansion Strategy

The company's battery energy storage systems (BESS) manufacturing facility is on track to commence commercial operations by Q4 FY26, scaling from 500 MWh to 3 GWh, and further to 5 GWh by FY28. This expansion, backed by an investment of INR 30-40 crores for the 3 GWh facility, aims to position GP Eco among India's top integrated energy storage manufacturers. Management expects approximately 15% margins from this segment, leveraging competitive pricing and a shorter supply lead time of three months compared to international players.

EPC Business and Technology Initiatives

In the EPC business, GP Eco has achieved a cumulative 120 MW of installed and under-execution projects, including INR 60.5 crores in KUSUM projects and a 95 MWp flagship solar EPC contract. The company also introduced Senergy, an IoT-based SCADA for smart monitoring, and Invergy Electric for next-generation electrical panels. These initiatives integrate AI and IoT for intelligent energy management, enhancing the company's technological capabilities.

International Expansion and Market Share Targets

GP Eco is actively pursuing international expansion, with MoUs under consideration with the Ghana government and the European Union for storage solutions, expected to materialize next year. The company aims for a 10% market share in the utility-based BESS segment, leveraging its competitive pricing and three-month supply lead time. Management believes its international standard products will make it a key competitive player in global markets.

Capital Structure and Working Capital Management

The company's debt increased from INR 33 crores to INR 72 crores over six months, primarily for long-term projects related to factory setup. Management expressed confidence that returns from these investments would offset the debt, maintaining a healthy debt-equity ratio within two years. They also highlighted efficient working capital management, receiving 85% of project cost within one to two months, minimizing the need for external fundraising for project execution.

Future Outlook and Growth Projections

GP Eco projects significant growth, targeting INR 700-750 crores in revenue for FY26 (3x growth) and an 80% CAGR in revenue over the next three years. The company aims for an EBITDA margin of 13-14% for FY26, further expanding to 17-18% in the next three years. This growth is expected to be driven by investments in BESS, solar manufacturing, and integrated project execution, positioning GP Eco as a comprehensive clean energy platform.

This is an AI-generated summary of a publicly available earnings call transcript.

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