K.P. Energy Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

K.P. Energy delivered strong financial performance in Q2 FY26, with robust growth across revenue, EBITDA, and PAT, driven by operational efficiencies and a healthy order book. The company is actively expanding its IPP portfolio and pursuing large-scale EPC projects, positioning itself for sustained growth in India's rapidly expanding renewable energy sector, particularly in wind and hybrid solutions. Management expressed confidence in achieving its full-year revenue growth targets and leveraging group synergies for future expansion.

Highlights

  • Total revenue for Q2 FY26 rose by 50% YoY to INR 303.5 crore.

  • EBITDA for Q2 FY26 grew 57% YoY to INR 68.6 crore.

  • Profit After Tax (PAT) for Q2 FY26 increased by 44% YoY to INR 35.9 crore.

  • Half-year EPS improved significantly by 41% to INR 9.15.

  • Operating cash flow for H1 FY26 sharply increased from INR 6 crore to INR 85 crore.

  • The company's order book stands at over 2.2 Gigawatts, valued at approximately INR 2,900 crores.

  • Consolidated IPP portfolio is 48.5 Megawatt, with quarterly unit generation rising from 0.69 crore to 2.75 crores.

  • CARE Ratings upgraded KP Energy's credit rating two notches to A- with a Stable outlook.

Key financials

2 periods

Q2 FY26

  • Total Revenue
    ₹303.5 Cr
    YoY +50.2%
  • EBITDA
    ₹68.6 Cr
    YoY +57%
  • PAT
    ₹35.9 Cr
    YoY +44.2%
  • EPS
    ₹5.36
    YoY +43.3%

H1 FY26

  • Operating Cash Flow
    ₹85 Cr
    YoY +1,316.7%
  • Total Revenue
    ₹524.1 Cr
    YoY +55.4%

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.

Guidance & targets

Revenue

  • Full-year revenue growth Revenue · FY26 · Medium confidence 50-60%

    Previously 60-70% → 50-60%

    As our honorable CMD sir has already been talking about 50% to 60% growth in terms of the revenue, we look forward to the same.

    — Shabana Bajari, CFO

Capacity

  • IPP commissioning Capacity · within next year (by Sep/Dec) · High confidence 50 Megawatt
    And the balanced 50 Megawatt is what we are looking forward to commission it within the next year. So, until September of next year, we look forward to have another 50 Megawatt to be constructed and put to use, if not by September, by at least December.

    — Shabana Bajari, CFO

  • KP Group renewable capacity Capacity · by 2030 · High confidence 10 Gigawatt
    The KP Group, of which KP Energy is a major pillar, now has nearly 2 Gigawatt of renewable capacity and aims to reach more than 10 Gigawatt by the year 2030.

    — Affan Faruk Patel, Whole-Time Director

  • KP Energy's share of 10 GW group target Capacity · by 2030 · Medium confidence ~40%
    And remaining, I think, it will come from KP Energy. So, you can understand that it would be around 60% to 40% at the motamuti figure that we would look at it.

    — Salim Yahoo, Group CFO

Order Book

  • Current order book Order Book · current · High confidence 2.2+ Gigawatt (INR 2,900 crores)
    The order book currently stands at 2.2 plus Gigawatt, inching us closer to the ambitious target of 10 Gigawatt on the Group level...

    — Shabana Bajari, CFO

Bid Pipeline

  • Bid pipeline Bid Pipeline · expecting results by end of next month · Medium confidence ~3 Gigawatt
    So, as I said before, around 3 Gigawatt is already in bid and we are expecting results by the end of next month.

    — Shabana Bajari, CFO

Profitability

  • Margins Profitability · coming quarters · High confidence on the same line
    Yes, more or less they will be on the same line.

    — Shabana Bajari, CFO

Risks & concerns

  • Delay in order finalization due to PPA execution

    medium

    Orders expected in September were delayed as the company awaits PPA execution from clients, with expectations for flow by December '25.

    Analyst acknowledged

  • Lack of clear financial bifurcation for group-level MoUs

    medium

    Analysts expressed confusion regarding how group-level green hydrogen and EV MoUs would translate into specific projects and revenue for KP Energy versus other group entities.

    Analyst partial

  • Stricter Deviation Settlement Mechanism (DSM) and potential impact on profitability

    medium

    New stringent regulations regarding DSM could lead to more penalties, and PPA tariffs might rise, potentially impacting revenue and profitability, though management outlined strategies to tackle this.

    Analyst acknowledged

Areas of evasion (2)

  • precise financial allocation of group-level MoUs to KP Energy
  • specific value of the 3 GW pipeline

Q&A highlights

2 direct
Bifurcation of green hydrogen/EV MoUs between KP Group entities (KP Energy vs KPI Green) Partial
If it is a wind, it will go to KP Energy. If it is a solar, it will go to KPI Green... it depends upon the final stage where the green hydrogen plant comes over.

Analysts sought clarity on how group-level MoUs translate into specific business for KP Energy, but management's explanation remained somewhat vague on concrete allocation numbers.

Asked by Amit Vora

Revision of full-year revenue growth guidance from 60-70% to 50-60% Direct
So, I would not call it a downgrade. I would tell that the impact, there are two impacts which constitute the impact in terms of revenue. One is the seasonality... Number two, it also depends on the type of order structure, the billing breakup...

This question directly addressed a perceived downgrade in guidance, prompting management to explain the factors influencing revenue booking and seasonality rather than a change in growth trajectory.

Asked by Gaurav

Skepticism in the wind energy sector, stricter Deviation Settlement Mechanism (DSM), and grid support Direct
We as KP Group and KP Energy both are tackling this in two ways, right? Our forecasting and scheduling center... partnered with IBM... entering the trading segment... Wind is the first natural solution to grid power.

This question addressed key regulatory and market risks, and management provided a detailed, multi-pronged strategy for mitigation and leveraging these changes for growth, including technology and trading.

Asked by Nishant Shah

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q2 FY26

K.P. Energy reported a robust Q2 FY26, with total revenue increasing by 50% year-over-year to INR 303.5 crore. EBITDA saw a significant jump of 57% to INR 68.6 crore, while Profit After Tax (PAT) grew 44% to INR 35.9 crore. For the first half of FY26, total income rose 55% to INR 524.1 crore, and operating cash flow dramatically increased from INR 6 crore in H1 FY25 to INR 85 crore in H1 FY26, reflecting improved operational efficiency.

Healthy Order Book and Bid Pipeline

The company's current order book stands at over 2.2 Gigawatts, valued at approximately INR 2,900 crores, which management believes positions them well for future growth. Additionally, K.P. Energy has a bid pipeline of around 3 Gigawatts, with results expected by the end of next month. While some orders expected in September were delayed due to pending PPA executions, management anticipates these orders to flow in by December 2025.

IPP Portfolio Expansion and Margin Outlook

K.P. Energy's consolidated IPP portfolio is 48.5 Megawatt, comprising both wind and solar projects. The company aims to commission an additional 50 Megawatt within the next year, by September or December. Management expects margins to improve as the IPP portfolio scales, citing benefits from larger quantum and operational efficiencies, and anticipates current margin levels (around 22%) to be sustainable in coming quarters.

Group Synergies and Green Hydrogen Initiatives

The KP Group, of which K.P. Energy is a major pillar, aims to reach over 10 Gigawatts of renewable capacity by 2030. New MoUs for green hydrogen and EV charging stations are group-level initiatives, with KP Energy contributing wind components and KPI Green contributing solar, depending on project feasibility and location. Management clarified that the UAE MoU also involves both group companies for supplying RTC power to data centers and life science projects.

Addressing Sector Skepticism and Regulatory Changes

Management addressed concerns regarding skepticism in the wind energy sector and stricter Deviation Settlement Mechanism (DSM). They highlighted India's vast wind potential (1,164 GW) and low current installation (52 GW). To mitigate DSM risks, KP Group is leveraging its R&D center with IBM partnership for energy tracking and plans to enter the energy trading segment. They emphasized wind's role in grid stability and the company's strategic positioning as one of the few wind operators in India.

Pan-India Presence and Future Growth Drivers

While predominantly in Gujarat, K.P. Energy serves clients across India, facilitated by Central Transmission Unit (CTU) connectivity. Gujarat remains a key focus due to favorable policies and wind potential, but the company is actively exploring other states like Rajasthan and Madhya Pradesh, with bid pipelines in these regions. The shift towards hybrid power for Round-The-Clock (RTC) energy supply is seen as a significant growth driver, with KP Energy capable of executing both wind and solar EPC components.

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