K.P. Energy Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

K.P. Energy delivered a strong Q3 FY26, reporting significant growth across key financial metrics driven by robust execution and a healthy order book. The company outlined ambitious targets for IPP capacity expansion and international growth, particularly in Botswana, while maintaining confidence in its financial discipline and ability to mitigate risks like raw material price volatility. Management expects Q4 FY26 to be one of its highest ever, supported by anticipated new order bookings.

Highlights

  • Consolidated Revenue for Q3 FY26 grew 63% YoY to INR 347.6 crores.

  • Consolidated EBITDA for Q3 FY26 increased 75% YoY to INR 77.2 crores.

  • Consolidated PAT for Q3 FY26 rose 57% YoY to INR 41.3 crores.

  • Basic EPS for Q3 FY26 stood at INR 6.18, a 56% YoY increase.

  • Current order book is 2.18 gigawatts, valued at approximately INR 2,600 plus crores.

  • Target to achieve 100 megawatts of IPP portfolio by FY27-28, with 48.5 MW already completed.

  • Current order book execution timeline is projected between 12 to 18 months.

  • Operation & Maintenance (O&M) service portfolio has crossed 600 megawatts.

Key financials

  1. Consolidated Revenue ₹347.6 Cr +63%YoY
  2. Consolidated EBITDA ₹77.2 Cr +75%YoY
  3. Consolidated PAT ₹41.3 Cr +57%YoY
  4. Basic EPS ₹6.18 +56%YoY
  5. Order Book Value ₹2,600 Cr
  6. Realization per MW ₹7.5 Cr

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

Order Booking

  • New Order Booking Feedback Order Booking · Q4 FY26 · Medium confidence Very good feedback
    Probably, next quarter, you will be getting very good feedback about the order booking, particularly some of the hybrid projects and some of the BOS projects.

    — Alok Das, Group Chief Executive Officer

Performance

  • Q4 Performance Performance · Q4 FY26 · Bullish confidence One of the highest Q4 ever
    We definitely expect our Q4 to be also one of the highest Q4 ever.

    — Shabana Bajari, Chief Financial Officer

Order Book Execution

  • Current Order Book Completion Timeline Order Book Execution · next 12-18 months · High confidence 12 to 18 months
    And we expect a timeline between 12 to 18 months over different orders over the period which we will be closing this order book.

    — Shabana Bajari, Chief Financial Officer

Capacity

  • Group Level Capacity Capacity · Long-term · Medium confidence 10 gigawatt
    inching us closer to the ambitious target of 10 gigawatt on the group level.

    — Shabana Bajari, Chief Financial Officer

  • Botswana Capacity (Phase 1) Capacity · next couple of years · High confidence 500 megawatt
    by next couple of years, we'll first build the 500 megawatt in Botswana.

    — Salim Yahoo, Chief Financial Officer – KPI Green Energy Limited

  • Botswana Capacity (Long-term) Capacity · by 2030 · High confidence 5 gigawatt
    Post that we are expected to, by 2030, we are expected to reach our goal of 5 gigawatt.

    — Salim Yahoo, Chief Financial Officer – KPI Green Energy Limited

  • KP Energy IPP Portfolio Capacity · by 2027-28 · High confidence 100 megawatt
    our target at KP Energy is to have 100 megawatt of IPP overall by 2027-28.

    — Shabana Bajari, Chief Financial Officer

Bid Pipeline

  • Non-KPI Bid Pipeline Bid Pipeline · Short-term · Medium confidence 500 megawatt
    just in a nutshell, you can take for near about 500 megawatt should be a pipeline for that.

    — Alok Das, Group Chief Executive Officer

Risks & concerns

  • Policy and Regulatory Framework Deferment

    medium

    Management stated that certain policy and regulatory framework deferment has been happening, impacting order booking, but they are nearing closure on some orders.

    Management acknowledged

  • Raw Material Price Increase

    low

    Management explained they hedge naturally when booking orders and pass on any price escalation beyond a certain portion to the customer, mitigating the risk.

    Analyst acknowledged

Q&A highlights

2 direct
Delays in New Order Bookings Partial
there are certain policy and regulatory framework deferment has been happening because of, some sort of connectivity procedures and all. But nothing the less, we are almost on the closure of some of the orders. Probably, next quarter, you will be getting very good feedback about the order booking...

Analysts were concerned about the lack of new order announcements despite previous anticipation. Management acknowledged delays due to regulatory issues but expressed confidence in closing orders soon, pushing expectations to the next quarter.

Asked by Darshil Pandya

Future Growth Trajectory and Equity Dilution Direct
internal inflows are quite sufficient enough. Recently, if you have seen, we have raised warrants through which some portion of equity has also come into the company... But at present, we have quite sufficient. The cash flows are very good. So, we don't need any kind of dilution at present.

This question addressed the sustainability of high growth rates (50-60%) and potential capital needs. Management clearly stated that current cash flows and recent warrant issuance provide sufficient capital, ruling out equity dilution for now.

Asked by Aniket Panda

Non-KPI Bid Pipeline and Order Book Composition Direct
Whatever the bid pipeline is coming, about 100 megawatt, this is directly bidding. And another non-bid, that should be another 700 to 800 megawatt... So, just in a nutshell, you can take for near about 500 megawatt should be a pipeline for that.

Analysts sought clarity on the company's independent growth prospects beyond KPI Green Energy. Management provided specific figures for the non-KPI bid pipeline, indicating a substantial future order flow from external clients.

Asked by Shikha Mehta

2 min read 7 chapters

Detailed narrative

Robust Q3 FY26 Financial Performance

K.P. Energy reported a strong financial quarter for Q3 FY26, with consolidated revenue reaching INR 347.6 crores, marking a 63% year-on-year growth. Profitability also saw significant improvement, as consolidated EBITDA grew by 75% YoY to INR 77.2 crores. The company's Profit After Tax (PAT) increased by 57% YoY to INR 41.3 crores, translating to a Basic EPS of INR 6.18, up 56% from the previous year.

Healthy Order Book and Execution Outlook

The current order book stands at a substantial 2.18 gigawatts, entirely comprising CPP (Captive Power Project) projects, with an estimated value of over INR 2,600 crores. Management projects an execution timeline of 12 to 18 months for these orders. The realization per megawatt for these projects is approximately INR 7.5 to INR 8 crores, including the cost of turbines.

Strategic IPP Portfolio Expansion

K.P. Energy is actively pursuing its target of establishing a 100-megawatt IPP (Independent Power Producer) portfolio by FY27-28. Currently, 48.5 megawatts have been completed, with the remaining 51.5 megawatts expected to be completed ahead of schedule. This expansion is part of the group's broader ambition to achieve 10 gigawatts of capacity.

Anticipated Q4 Growth and New Order Bookings

Despite some policy and regulatory deferments impacting recent order bookings, management expressed confidence in securing new orders, particularly for hybrid and BOS (Balance of System) projects, with positive feedback expected in the next quarter. The company is highly optimistic about Q4 FY26, anticipating it to be 'one of the highest Q4 ever' in terms of performance.

International Expansion and Offshore Wind Opportunities

The company has outlined plans for international expansion, starting with building 500 megawatts in Botswana within the next couple of years, aiming for a total of 5 gigawatts by 2030. Domestically, K.P. Energy is also eyeing the offshore wind sector, aligning with the Indian government's target of 1 gigawatt by 2030, with project movements expected to commence next year.

Financial Prudence and Risk Mitigation Strategies

Management confirmed positive cash flow from operations for the nine-month period and stated that internal inflows, supplemented by recent warrant issuance, are sufficient to fund growth, negating the need for equity dilution at present. To counter raw material price volatility, the company employs natural hedging strategies and incorporates escalation clauses in contracts to pass on costs beyond a certain threshold to customers.

Non-KPI Bid Pipeline and Revenue Contribution

The non-KPI bid pipeline includes approximately 100 megawatts from direct bidding and an additional 700 to 800 megawatts for EPC and BOS contracts. In total, a pipeline of around 500 megawatts is anticipated from non-KPI sources. For Q3 FY26, revenue from KPI Green Energy contributed over INR 250 crores out of the total INR 328 crores from the EPC business, with 70% of the current order book originating from KPI.

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