Detailed Narrative
Strong Q3 and 9M FY26 Financial Performance
KPI Green Energy reported robust financial results for Q3 FY26, with total revenue reaching INR 676 crores, a 45% year-on-year growth. EBITDA surged by 73% to INR 251 crores, and Profit After Tax (PAT) increased by 48% to INR 126 crores. For the nine months ended December 31, 2025, the company's total revenue was INR 1,931 crores, marking a 64% increase, already surpassing the previous full year's revenue of INR 1,752 crores.
Strategic Capacity Expansion and Project Pipeline
The company is actively expanding its capacity with significant projects underway. It commissioned 24.2 MW AC (34.4 MW DC) of its 250 MW GUVNL solar project and aims to complete the majority by June. A Letter of Intent (LOI) was received for a 445 MW/890 MW standalone Battery Energy Storage System (BESS) project from GUVNL, with an estimated investment of INR 1,000-1,100 crores and an expected IRR of 13-14%.
International Expansion into Botswana
KPI Green Energy signed a landmark MOU with the government of Botswana for a large-scale renewable energy generation and storage project with a potential capacity of approximately 5 gigawatts. The company plans to commission an initial 500 MW project in Botswana within a couple of years, with an estimated cost of INR 1,500-1,700 crores. This project is expected to yield an IRR better than 13%.
Order Book and Margin Management
The EPC order book stands at over INR 5,500 crores as of Q3 FY26, reflecting an inflow of approximately INR 1,500 crores this quarter. Management emphasized that margins are protected against input cost fluctuations through price variation clauses in large utility-scale contracts and inventory blocking for private EPC orders. Despite the increasing share of higher-margin IPP projects, overall EBITDA margins are expected to remain stable at 30-35% due to simultaneous growth in the CPP segment.
Subsidiary IPO and Diversification into BESS
The company plans an IPO for its subsidiary, Sundrop Energy, in the first half of the next financial year (H1 FY27). Sundrop will focus on the battery energy storage system (BESS) business, which is seen as a rapidly developing and capital-intensive segment. This strategic move aims to scale up the BESS vertical and cater to MSME and small clientele, with Sundrop's revenue targeted at INR 500-600 crores this year.
Working Capital and Debt Management
Debtor and inventory days increased in Q3 FY26, which management attributed to substantial growth and the concentration of billing in the December and March quarters. They anticipate these metrics will normalize📎 in April/May (Q1 FY27). The company maintains a healthy debt-equity ratio of 1.50:1 and expects the release of pledged shares related to its 1 GW project by March 2027, following project completion by September 2026.