K.P. Energy Limited — Q1 FY26 earnings call

Call held 7 Aug 2025

Management summary

K.P. Energy reported a strong Q1 FY26, achieving its highest-ever quarterly revenue and EBITDA, both growing 63% year-on-year. This performance was driven by robust execution and operational efficiencies, with PAT increasing 40%. The company highlighted its integrated end-to-end EPC solutions in the wind segment and its growing IPP portfolio, which is now fully operational at 48.5 MW. Management expressed confidence in future order inflows and maintaining profitability, despite the capital-intensive nature of IPP projects.

Highlights

  • Consolidated Revenue for Q1 FY26 stood at ₹220.6 crores, marking a 63% YoY increase.

  • Consolidated EBITDA for Q1 FY26 was ₹49.6 crores, also up 63% YoY.

  • Profit After Tax (PAT) for Q1 FY26 reached ₹25.4 crores, a 40% YoY growth.

  • Basic EPS for Q1 FY26 was ₹3.81, reflecting a 39% YoY increase.

  • The current order book stands at 2.22 GW, with a value of approximately ₹3,000+ crores, exclusively for KP Energy's EPC contracts.

  • The consolidated IPP portfolio is 48.5 MW, fully operational, comprising 37 MW wind and 11.5 MW solar.

  • Management expects an order inflow by Q2 FY26 and aims to maintain EBITDA margins at 21-22%.

  • Quarterly unit generation for Q1 FY26 rose to 2.65 crore units, up from 0.98 crore units in Q1 FY25.

Key financials

  1. Revenue ₹220.6 Cr +63%YoY
  2. EBITDA ₹49.6 Cr +63%YoY
  3. PBT ₹34.8 Cr +51%YoY
  4. PAT ₹25.4 Cr +40%YoY
  5. Basic EPS ₹3.81 +40%YoY
  6. Order Book 2.22 GW
  7. IPP Portfolio 48.5 MW
  8. O&M Portfolio 595 MW
  9. Quarterly Unit Generation ₹2.65 Cr +170%YoY

What they filed

Q1 FY27: revenue up 135.9%, net profit up 4.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue199 212 401 220 301 +51%345 +63%632 +58%519 +136%
EBITDA40 43 70 48 66 +65%75 +74%131 +87%60 +25%
Net profit25 26 46 25 36 +44%41 +58%79 +72%26 +4%
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.

Segment breakdown

SegmentRevenue ContributionGross MarginGross Margin (Max)EBITDA Margin
EPC Segment95%15%18%15%
Power Sale (IPP)5%65%75%65%
O&M Segment1%———

Guidance & targets

Revenue & Profitability

  • FY26 Revenue & EBITDA Revenue & Profitability · FY26 · High confidence crossing all the committed thresholds
    And with a 2.2 gigawatt of orders already on hand, which constitutes roughly about Rs. 3,000 plus crores of order book in terms of value, I am definitely very confident that we will be crossing all the committed thresholds.

    — Shabana Bajari, CFO

Order Inflow

  • New Orders Order Inflow · Q2 FY26 · Medium confidence expecting an order in flow
    lots of orders in the pipeline and as already announced by our honorable CMD we are expecting an order in flow by Quarter 2 and that is what we are looking at.

    — Shabana Bajari, CFO

Other Income

  • Quarterly Other Income Other Income · Quarterly basis (FY26) · High confidence 1-1.10 crores
    on a quarter-to-quarter basis, you can expect about 1-1.10 crores roughly on quarterly basis. That will be normalized.

    — Shabana Bajari, CFO

Order Book Execution

  • Completion of Sep 2024 Order Book (2 GW, Rs. 3,350 crores) Order Book Execution · March/May 2026 · High confidence complete it by March or even May '26
    However when you look from the contractual perspective and when you look from our client perspective, our overall timelines are larger. I mean, when you look at contracts, they have a timeline up to October '26 whereas we are envisaging and we are looking forward to complete it by March or even May '26 for that matter.

    — Shabana Bajari, CFO

IPP Capacity Addition

  • IPP Capacity Addition IPP Capacity Addition · coming months · Medium confidence 20 megawatt
    This quarter we may look for 20 megawatt to be added in the coming months, not maybe this quarter but in the coming months we are looking for that out of the 50 megawatt which we have a target and in such a scenario, yes there is a possibility that we may have a larger contribution from the IPP side.

    — Shabana Bajari, CFO

  • IPP Capacity Addition IPP Capacity Addition · coming quarters · Medium confidence slight addition
    As I said before that we are looking for an addition to IPP in a phased manner with the 50 megawatt yet to be executed. So, there will be slight addition in the coming quarters.

    — Shabana Bajari, CFO

Profitability

  • EBITDA Margin Profitability · Rest of FY26 · High confidence maintaining more or less the same margin
    We are consistently focused on the cost control and also the operating efficiencies and we look forward to maintaining more or less the same margin.

    — Shabana Bajari, CFO

Risks & concerns

  • Capital-intensive nature of IPP projects and potential impact on balance sheet

    medium

    Management plans to phase out the remaining 50 MW IPP target to avoid heavily loading the balance sheet with debt, indicating a cautious approach to capital allocation.

    Management acknowledged

  • High interest costs and depreciation impacting PAT growth

    medium

    PAT growth (40%) lagged EBITDA (63%) due to a 93% rise in interest costs and increased depreciation stemming from the capitalization of IPP assets, a direct consequence of the company's growth strategy.

    Analyst acknowledged

  • Seasonality affecting revenue booking and operations

    low

    Management acknowledged that monsoon season impacts solar generation but noted that wind generation improves, balancing the overall impact, and the company plans execution to mitigate seasonality.

    Analyst acknowledged

Areas of evasion (2)

  • Specific competitors
  • Separate KP Energy capacity targets (beyond group level)

Q&A highlights

1 direct, 1 evasive
Difference in margin profiles between KP Energy (wind EPC) and KPI Green (solar EPC/IPP) Partial
while the solar execution is a time bound activity and a faster activity whereas if you look at the number of activities which are a part of a wind execution in terms of the permissions, the liasoning and also the overall from concept to commissioning what we talk about, the number of activities are much higher and that is the reason why the site mobilization normally takes a longer period compared to solar.

This question directly addresses the profitability disparity within the group, highlighting the operational complexities and longer project cycles in wind EPC compared to solar, which impacts investor expectations on margin convergence.

Asked by Akhilesh Kumar

Lack of specific capacity addition targets for KP Energy, despite a group-level 10 GW target Evasive
As a group level as on today we have a capacity of 5.9 gigawatt. So, what our Dr. Faruk Patel has suggested 10 gigawatt as our vision for as a group level. So, that is what KPI and KP Energy all together we made a group target of 10 gigawatt.

Investors seek clear, company-specific targets to assess individual growth and contribution within a larger group, and the lack of such a target for KP Energy makes it challenging to evaluate its standalone trajectory.

Asked by Akhilesh Kumar

Competitive landscape in the EPC segment and KP Energy's differentiators Direct
We have almost more than 500 windmill across. So, if you see very few players, see, we are one of the players who has capability of solar as well as wind... BOP expertize is very scarce today in India... the entire set of activities under one EPC contractor is something which is not very easily found.

Understanding KP Energy's unique selling propositions, such as its hybrid project capability, end-to-end EPC solutions, and specialized BOP expertise, is crucial for assessing its competitive advantage and long-term market position.

Asked by Shikha Mehta

3 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Performance Driven by Execution

K.P. Energy reported a robust start to FY26 with consolidated revenue reaching ₹220.6 crores, a significant 63% increase year-on-year from ₹135.2 crores in Q1 FY25. This marks the highest-ever quarterly revenue for any Q1. Consolidated EBITDA also grew by 63% to ₹49.6 crores, up from ₹30.4 crores in the prior year, reflecting strong operational efficiencies. Profit After Tax (PAT) increased by 40% to ₹25.4 crores, and Basic EPS rose by 39% to ₹3.81, demonstrating consistent growth.

Expanding Order Book and Project Pipeline

The company's current order book stands at 2.22 GW, valued at over ₹3,000 crores, exclusively for KP Energy's EPC contracts. Management expressed high confidence in crossing all committed thresholds for FY26 revenue and EBITDA, with execution timelines ranging from 12 to 24 months for various projects. An internal target is set to complete the September 2024 order book (2 GW, ₹3,350 crores) by March or May 2026, ahead of the contractual deadline of October 2026.

Strategic Focus on IPP Portfolio Growth and Margins

KP Energy's consolidated IPP portfolio is fully operational at 48.5 MW, comprising 37 MW of wind and 11.5 MW of solar projects. The company plans to add another 20 MW to its IPP capacity in the coming months, as part of its 50 MW target, funded through internal accruals to manage debt. IPP projects offer significantly higher gross margins of 65-75% compared to EPC's 15-18%, and management anticipates an upward movement in overall margins as the IPP segment and O&M activities expand.

EPC Segment Dominance and Competitive Advantage

The EPC segment continues to be the primary revenue driver, contributing 95% of the total revenue, with power sales (IPP) at 5% and O&M at 1%. KP Energy emphasizes its unique position as an end-to-end EPC contractor in the wind segment, offering services from wind resource analysis to grid integration and commissioning. The company also highlights its capability as a hybrid player (solar and wind) and its ownership of two large cranes, which provide a competitive edge in logistics and execution.

Offshore Wind and Market Demand Outlook

Management acknowledged the nascent stage of offshore wind in India, with initial 1 GW projects in Gujarat and Tamil Nadu expected to materialize in 5 years. While current onshore tariffs are around ₹3.5 per unit, offshore projects would require a minimum tariff of ₹10-15 per unit with VGF to be viable. The overall demand for renewable energy remains 'tremendously high,' with an annual requirement of over 40 GW to meet India's 2030 target of 500 GW, which KP Energy is actively addressing through resource creation.

Profitability Impact from Interest and Depreciation

Despite strong revenue and EBITDA growth, PAT growth of 40% lagged due to a 93% rise in interest costs and increased depreciation. This is attributed to the capitalization of IPP assets, particularly the 28.7 MW wind plant energized in Q4 FY25. Management expects an increased tax impact with higher turnover but aims to maintain EBITDA margins at 21-22% for the rest of FY26 through cost control and operational efficiencies.

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