Orient Green Power Company Limited

Orient Green Power has made significant strides in expanding and diversifying its capacity. The company successfully commissioned its first 7 MW solar power project in Q3 FY26. Additionally, contracts were closed for 28 MW of new Greenfield capacity, comprising 18 MW of solar and 10 MW of wind, alongside a 6 MW wind repowering project. These 34 MW of new capacity are targeted for commissioning by April-May and June 2026, respectively, and are expected to add Rs. 36 crores to EBITDA per annum.

The company demonstrated robust financial performance for the nine months ended Q3 FY26. Total income increased by 16% year-on-year to Rs. 268.95 crores, while EBITDA rose by 14% year-on-year to Rs. 187.3 crores. Net profit saw a substantial growth of nearly 54% year-on-year, reaching Rs. 88.13 crores. This improved profitability was primarily driven by favorable wind patterns, better machine availability, and a significant decline in finance costs of over 20%.

Q3 FY26 saw total income at Rs. 40.06 crores and EBITDA at Rs. 17.07 crores, broadly in line with the previous year's corresponding quarter. However, the company reported a loss before exceptional items^📎 of Rs. 18.16 crores, an improvement of 17% compared to Rs. 21.81 crores in Q3 FY25. Management attributed the subdued Q3 performance to the seasonal nature of wind power, with lower generation typically experienced in the second half of the fiscal year.

Orient Green Power's debt profile saw positive developments with the bulk of its debt upgraded to BBB, which is anticipated to further optimize borrowing costs. The current total debt stands at Rs. 507 crores with a blended interest cost of 9.15% post refinancing. The company expects to draw down approximately Rs. 120 crores of debt in the next quarter to fund the new wind capacity, and is exploring fundraising possibilities for its FY27 CAPEX plans.

The newly approved Tamil Nadu Repowering Policy is a significant milestone, with Orient Green Power being the first to commission under it. The policy allows for relaxed spacing norms between turbines, enabling more efficient land use. The 6 MW repowering project is expected to increase the Plant Load Factor (PLF) from low single digits (6-7%) to over 30%, contributing Rs. 7-7.5 crores in EBITDA. The company is evaluating the remaining 35 MW of its 45 MW older assets for future repowering based on economic viability and site suitability.

The company maintains its long-term ambition to become a 1 GW size company. While 34 MW of new capacity is underway, achieving the 1 GW target through organic acquisition is acknowledged to be a time-consuming process. Management is in discussions regarding this target and expects to provide further updates in the next couple of quarters. The focus remains on deploying higher capacity turbines, expanding solar capacity, and developing hybrid wind-solar projects to build a more balanced portfolio.