K.P. Energy Limited — Q4 FY25 earnings call

Call held 20 May 2025

Management summary

K.P. Energy delivered a robust financial performance in Q4 and full FY25, achieving record-high revenues and profits with significant year-on-year growth across all key metrics. The company highlighted a strong order book of 2.26 GW and an ambitious pipeline, particularly in CTU projects and offshore wind. Management expressed confidence in sustaining a high growth trajectory, driven by India's vast renewable energy potential and strategic expansion in its IPP and O&M segments.

Highlights

  • Q4 FY25 consolidated revenue surged 88% YoY to ₹408.6 crores, while full FY25 revenue grew 97% YoY to ₹958.5 crores, marking the highest ever quarterly and annual revenue.

  • Consolidated EBITDA for Q4 FY25 increased 91% YoY to ₹77.9 crores, and for full FY25, it doubled to ₹196.1 crores, demonstrating operational efficiencies.

  • Net Profit (PAT) for Q4 FY25 rose 84% YoY to ₹45.8 crores, and for full FY25, it grew 98% YoY to ₹115.3 crores.

  • Basic EPS for FY25 stood at ₹17.3 per share, a significant increase from ₹8.8 in the previous year.

  • The current order book stands at 2.26 GW in capacity and approximately ₹2,800 crores in monetary terms.

  • The company aims to expand its total IPP portfolio to 100 MW by the end of FY26-27 from the current 48.5 MW.

  • Management expects to secure new orders of close to 500 MW before September and projects a 60-70% year-on-year CAGR for the coming years.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹408.6 Cr
    YoY +88%
  • EBITDA
    ₹77.9 Cr
    YoY +91%
  • PAT
    ₹45.8 Cr
    YoY +84%

FY25

  • Revenue
    ₹958.5 Cr
    YoY +97%
  • EBITDA
    ₹196.1 Cr
    YoY +100%
  • PAT
    ₹115.3 Cr
    YoY +98%
  • Basic EPS
    ₹17.3
    YoY +96.6%

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

  • O&M Services
    ₹4.5 Cr Revenue (FY25)

Guidance & targets

Capacity

  • Total IPP Portfolio Capacity · by end of FY26-27 · High confidence 100 MW
    We as already specified earlier, we look forward to have 100 MW of total IPP in KP Energy up to by the end of FY26-27 and that is where we are working on.

    — Shabana Bajari, CFO

Order Inflow

  • New CTU Projects Order Inflow · before September · Medium confidence close to 500 MW
    You see basically that we are planning before September whatever our resource is available, we are planning to get about close to 500 MW or so.

    — Dr. Alok Das, Group CEO

Order Completion

  • KPI Green 1.2 GW IPP Order Order Completion · by October '26 · High confidence by October '26
    So over a period of time by October '26 is the final timeline, by which we shall be able to complete the entire order.

    — Shabana Bajari, CFO

O&M Revenue

  • O&M Revenue O&M Revenue · current financial year · Medium confidence Rs.6-6.5 crores
    And this year we had about Rs.4.5 crores of O&M revenue and we're looking forward to almost Rs.6-6.5 crores in this current financial year.

    — Shabana Bajari, CFO

Growth

  • CAGR Growth · year-on-year basis · High confidence 60% to 70%
    I would appreciate if you look into the statements of our Hon'ble CMD, Sir, where he has been already telling that the company is looking for 60% to 70% growth on a year-on-year basis and with all your good wishes and support and the hard work that the team has been doing we are able to excel.

    — Shabana Bajari, CFO

National Energy Target

  • Non-fossil fuel based energy National Energy Target · by 2030 · High confidence 500 GW
    while the total target of India by 2030 is 500 GW of non-fossil fuel based energy, wind typically has 100 GW, and of that 50 has been achieved. That leaves 50 which has been planned by 2030, which means even if you do it a simple average, it comes to 10 GW a year

    — Shabana Bajari, CFO

Risks & concerns

  • Offshore Wind Project Development Stage

    medium

    Offshore wind projects are in primitive stages in India, requiring 3-5 years for policy, allotment, and bidding processes to mature.

    Management acknowledged

  • CTU Project Delays due to Policy Clarity

    medium

    Central Transmission Unit (CTU) projects require time for contract finalization and clarity on power equations, which has caused delays.

    Management acknowledged

  • Grid Infrastructure Constraints

    low

    Management believes grid availability issues are typically the end client's scope and with government efforts ('One Grid, One Nation'), these will ease over time, not directly affecting KPEL.

    Analyst downplayed

Areas of evasion (1)

  • Specific CAPEX figure for FY26

Q&A highlights

2 direct
Offshore Wind Project Execution Vehicle Direct
Offshore is a very highly capital-intensive business and for bidding for the tender of offshore, you require strong finance. So from that point of view wherever it is required, we will bid as a group that is KPI Green and KPI Energy together, but the expertise of installing will be more with KP Energy, so together we will go wherever it is required.

Clarifies the group's collaborative strategy for capital-intensive offshore wind projects, leveraging both KPI Green's financial strength and KP Energy's execution expertise.

Asked by Ashish Rampuria

IPP Segment Margin Decline Direct
we will be going up with another project for IPP where we were to commission 28.6 MW and the average rate of that particular project consistently for 25 years is slightly lower than what we have in other projects. That is the reason why there is a small dip in the margin... That is Rs.2.43 paisa per unit for that particular project.

Provides a clear explanation for the observed dip in IPP margins, attributing it to a specific 28.6 MW project with a lower tariff rate of Rs.2.43 per unit compared to the usual Rs.6-6.5 per unit.

Asked by Pranjal Soni

Order Backlog Growth and Future Inflow Partial
The thing is this last whatever this pipeline, that was the discussion mainly this is in CTU kind of projects. So this will take for the contract and all these things requires little time... So based on these planning, whatever we have got about the 100 MW projects, so obviously we are now planning in a full pace. So that is why I've been telling that we can book the order before September and like that whatever the project pipelines, whatever is there in the discussion is going on, time-to-time, we will disclose, but today we cannot disclose all the name and all. But yes, there are a few projects under discussion and very actively. So that is why I told so that from September onwards you will get good news about that.

Addresses investor concerns about the order backlog's movement and provides a timeline (before September) for potential new CTU project announcements, indicating active discussions despite current delays in contract finalization.

Asked by Deepak Jindal

2 min read 5 chapters

Detailed narrative

Robust Financial Performance in Q4 and FY25

K.P. Energy reported exceptional financial results for Q4 and the full fiscal year 2025. Consolidated revenue for Q4 FY25 reached ₹408.6 crores, an 88% increase year-over-year from ₹217.4 crores. For the full FY25, revenue grew 97% to ₹958.5 crores, up from ₹485.5 crores in FY24. This strong top-line growth translated into significant profitability, with Q4 FY25 EBITDA at ₹77.9 crores (up 91%) and full FY25 EBITDA doubling to ₹196.1 crores. Net Profit (PAT) also saw substantial growth, reaching ₹45.8 crores in Q4 (up 84%) and ₹115.3 crores for the full year (up 98%), resulting in a basic EPS of ₹17.3 for FY25.

Significant Order Book and Execution Pipeline

The company maintains a strong order book, currently standing at 2.26 GW in capacity. In monetary terms, the outstanding order book is approximately ₹2,800 crores. Management noted that while the previous order book was ₹3,150 crores, the reduction reflects executed orders. A significant portion of the order book includes a 1.2 GW IPP project from KPI Green, which is targeted for completion by October 2026. The company is actively discussing new CTU-based projects and expects to secure new orders of around 500 MW before September, indicating a healthy pipeline for future growth.

Strategic Expansion in IPP and O&M Segments

K.P. Energy's current consolidated IPP portfolio stands at 48.5 MW, comprising both wind and solar projects. The company has an ambitious target to expand its total IPP capacity to 100 MW by the end of FY26-27, emphasizing the long-term annuity income and stability this segment provides. In the O&M segment, handled by its wholly-owned subsidiary KP Energy OMS Limited, the company covers over 546 MW. O&M revenue for FY25 was ₹4.5 crores, with a target to increase this to ₹6-6.5 crores in the current financial year, reflecting continued growth in recurring service income.

Future Growth Opportunities in Wind Energy

Management highlighted the immense potential in India's renewable energy sector, with a total potential of 1,164 GW. Specifically for wind energy, India's installed capacity is 51 GW as of April 2025, leaving significant untapped onshore potential. The company is also actively pursuing opportunities in offshore wind, with 70 GW identified potential, particularly in Gujarat and Tamil Nadu. While offshore projects are in early stages and expected to materialize in 3-5 years, KP Energy plans to bid as a group with KPI Green, leveraging combined financial strength and execution expertise.

Capital Expenditure and Debt Management

The company acknowledged that IPP expansion is a capital-intensive business. While a specific CAPEX plan for FY26 was not disclosed, management indicated that additional debt would be considered for future CAPEX, given the comfortable current debt-equity ratio. The focus is on balancing debt and equity to support the planned IPP growth to 100 MW by FY26-27. Resource creation, including land acquisition and wind potential mapping for over 10 GW, is underway, with a minimum timeline of 24 months for grid connectivity and project development.

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