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    KPI Green Energy Limited

    KPIGREEN
    Power·11 Nov 2025
    Management Summary

    KPI Green Energy delivered a strong Q2 FY26, with significant revenue and PAT growth driven by robust execution and strategic financing initiatives. The company secured substantial debt funding for its IPP projects and expanded its order book, while also venturing into future-ready technologies. Management addressed investor concerns regarding EPS growth, project cancellations, and grid stability, reaffirming its growth trajectory and commitment to transparency.

    Highlights

    5

    • Revenue for Q2 FY26 grew by 78% year-on-year to ₹641.1 crores, demonstrating robust top-line expansion.

    • Profit after tax (PAT) for Q2 FY26 increased by 67% year-on-year to ₹117 crores, reflecting strong profitability.

    • Successfully secured a ₹3,200 crores term loan from State Bank of India for 250MW solar and 370MW hybrid projects, bolstering IPP growth.

    • Issued India's first externally credit-enhanced green bond of ₹670 crores, enhancing capital structure and investor confidence.

    • Current group-level portfolio stands at 6 gigawatts, with a clear long-term vision to achieve 10 gigawatts by 2030.

    Concerns

    3

    • Analyst raised concerns about EPS growth not aligning with company growth, attributing it to potential equity dilution.

    • Analyst questioned the impact of government directives on RE project cancellations and the readiness of grid infrastructure for rapid solar expansion.

    • Analyst expressed concern over the company's share price underperformance despite strong results, attributing it to market dynamics.

    What Changed2

    vs Q3 FY26

    Guidance items16 → 11 (-5)Risks discussed3 → 6 (+3)

    Key financials

    Single quarter

    12 metrics
    1. 01Revenue₹641.1 Cr+78%YoY
    2. 02EBITDA₹232.4 Cr+73%YoY
    3. 03PBT₹158 Cr+63.4%YoY
    4. 04PAT₹117 Cr+67%YoY
    5. 05EPS₹4.82

    Order Book

    high confidence

    Total Value

    3,610 MW

    as of 2025-09-30

    quantified

    Inflow this qtr

    396 MW

    Execution

    CPP order book to be closed by March '27

    Composition

    Mix2 contract types
    • IPP (under execution)33.2%
    • CPP (order book)66.8%

    Share of order book by contract type

    "The company is executing 1.2 GW of IPP orders and has a CPP order book of 2.41 GW, with new wins including 200MW solar for SJVN. The entire current CPP order book is expected to be closed by March '27."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Guidance & targets

    11
    CategoryTargetPriority
    Capacity
    Group Level Portfolio
    10 gigawatts
    		High
    Capacity
    IPP Capacity
    1.5 gigawatt
    		High
    Capacity
    IPP Capacity
    1.7 gigawatt
    		High
    Revenue
    IPP Revenue
    more than INR1,000 crores
    		High
    Revenue
    Sun Drops Energia Top Line Growth
    65% to 70% more than previous year
    		High
    Margin
    IPP EBITDA Margin
    around 90%
    		High
    Margin
    CPP EBITDA Margin
    18%-20%
    		High
    Profitability
    Sun Drops Energia PAT Margin
    16% to 18%
    		High
    Profitability
    Overall PAT Level
    more than 20%
    		Medium
    Profitability
    PAT
    INR1000 crores
    		Medium
    Other
    Sun Drops Energia Listing
    listing
    		High

    What to watch in Q3 FY26

    5

    IPP Revenue from Khavda Project

    by December '25 (Q3 FY26)
    CurrentDelayed due to government substation not ready
    TargetRevenue generation to commence

    Why it matters

    Realization of revenue from a significant 240MW IPP project, impacting overall top-line and profitability.

    So shortly, they have already expect to complete the GSS work by December,. So automatically, the revenue starts.

    Risks & concerns

    6
    RiskSeverity

    EBITDA margin compression

    Analyst questioned continuous EBITDA margin squeezing, but management provided figures showing H1 standalone KPI EBITDA margin increased and overall margin was stable. — Analyst acknowledged

    low

    EPS growth not aligning with company growth due to equity dilution

    Analyst raised concern about EPS growth. Management clarified no equity dilution in the last year and EPS has improved, attributing growth to capital-intensive IPP business. — Analyst acknowledged

    low

    Government RE project cancellations

    Analyst questioned the impact of government directives to cancel non-viable RE projects. Management stated KPI Green is unaffected as all its PPAs are signed and viable. — Analyst acknowledged

    low

    Grid infrastructure constraints and curtailment

    Analyst raised concerns about grid readiness for solar expansion. Management highlighted KPI's ample evacuation approvals and government's focus on grid enhancement and DSM mechanisms. — Analyst acknowledged

    low

    Share price underperformance and investor confidence

    Analyst noted the stock's underperformance despite strong results. Management attributed it to broader market dynamics, geopolitical conditions, and tariffs, emphasizing focus on execution. — Analyst acknowledged

    medium

    Related Party Transaction (RPT) concerns and transparency

    Analyst raised concerns about the perception of RPTs due to multiple 'KP' named companies. Management clarified arm's length transactions and committed to providing more transparency in future presentations. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “I mean, EBITDA in first half of last year was 37.52%. This time it is 35.79%. So, there is not a too much difference. There might be a slight difference because of the nature of sales booking that happens. ... There is a substantial increase again in the EBITDA. It has matched up with that. So, I don't see any squeeze in the EBITDA, so for that.”

    Analyst questioned margin compression, but management clarified that overall EBITDA margins were stable or improved on a standalone basis, attributing minor variations to sales booking.

    asked by Rajat Gupta

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Financial Performance in Q2 and H1 FY26

    KPI Green Energy reported a strong Q2 FY26, with revenue growing 78% year-on-year to ₹641.1 crores and PAT increasing 67% to ₹117 crores. For the first half of FY26, total revenue reached ₹1,255.26 crores, a 76.5% growth from the previous year, with EBITDA up 68% to ₹449.3 crores. The company's EPS for Q2 FY26 stood at ₹4.82, and for H1 FY26, it was ₹8.49, reflecting consistent profitability and operational leverage.

    02

    Strategic Financing and Capital Structure Enhancement

    The company achieved significant milestones in financing, securing a ₹3,200 crores term loan from State Bank of India for its 250MW solar and 370MW hybrid projects under a long-term GUVNL PPA. Additionally, KPI Green issued India's first externally credit-enhanced green bond of ₹670 crores, backed by a 65% GuarantCo guarantee. These initiatives reinforce investor confidence and strengthen the company's capital structure, supporting its large-scale IPP growth.

    03

    Expanding Order Book and Execution Pipeline

    KPI Green's order book continues to strengthen, with 1.2 gigawatts of IPP projects currently under execution and a CPP order book of 2.41 gigawatts. Recent CPP wins include 200MW solar with SJVN, 96MW BoS for Aditya Birla Renewables, and a 100MW repeat order from Avichal Power. The company's group-level portfolio stands at 6 gigawatts, with a long-term vision to reach 10 gigawatts by 2030, indicating a robust pipeline for future growth.

    04

    Venturing into Future-Ready Technologies and Diversification

    The company is strategically expanding into emerging sectors and future-ready technologies. It has signed MOUs with Delta Electronics India for collaboration on battery energy storage systems, green hydrogen, and EV charging infrastructure. A 1 MW green hydrogen prototype has been constructed in Matar, where testing for blending green hydrogen with LPG is commencing, demonstrating a commitment to sustainability-driven growth and technological innovation.

    05

    Addressing Sectoral Challenges and Investor Concerns

    Management clarified that government directives on cancelling non-viable renewable energy projects do not impact KPI Green, as all its IPP PPAs are signed and viable. Concerns regarding grid infrastructure readiness for solar expansion were addressed by highlighting KPI's 3.46 gigawatts of evacuation approvals and the government's focus on enhancing grid stability. The company also committed to releasing promoter pledge by March '27 and providing more transparency on related-party transactions in future presentations.

    06

    Subsidiary Performance and Future Listing Plans

    Sun Drops Energia, a subsidiary, reported a top line of approximately ₹125 crores in Q2 FY26 and is projected to achieve 65-70% year-on-year growth in the second half of the fiscal year, maintaining a PAT margin of 16-18%. The company plans to list Sun Drops Energia in the next financial year, aiming to unlock further value and provide additional growth avenues.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.