KPI Green Energy Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

KPI Green Energy delivered a strong Q3 FY26, with significant revenue and EBITDA growth driven by robust execution. The company is expanding its project pipeline, including a large BESS project and international ventures in Botswana, while maintaining healthy margins. Management addressed concerns regarding working capital and input cost fluctuations, outlining mitigation strategies.

Highlights

  • Revenue of ₹676 crores, up 45% YoY, demonstrating sustained growth momentum.

  • EBITDA of ₹251 crores, reflecting a powerful 73% growth, indicating strong operational efficiency.

  • Profit After Tax (PAT) grew 48% to ₹126 crores in Q3 FY26.

  • 9-month revenue of ₹1,931 crores already exceeded FY25 full-year revenue of ₹1,752 crores.

  • Secured a landmark MOU with Botswana for a potential 5 GW renewable energy project, with an initial 500 MW planned in 2 years.

Concerns

  • Debtor and inventory days increased Q-on-Q and Y-o-Y, attributed to substantial growth and billing patterns, though expected to cool down in Q1 FY27.

  • New product initiatives like green hydrogen and EV fuel stations are in nascent stages and will take time to materialize and contribute meaningfully to revenue.

Key financials

2 periods

Headline

  • Total Revenue
    ₹676 Cr
    YoY +45%
  • EBITDA
    ₹251 Cr
    YoY +73%
  • PAT
    ₹126 Cr
    YoY +48%

9M

  • Total Revenue
    ₹1,931 Cr
    YoY +64%
  • EBITDA
    ₹701 Cr
    YoY +71%
  • PAT
    ₹354 Cr
    YoY +60%

What they filed

Q1 FY27: revenue up 30.1%, net profit down 6.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue310 483 488 386 501 +62%511 +6%592 +21%502 +30%
EBITDA82 122 135 148 187 +128%197 +61%246 +82%201 +36%
Net profit37 77 86 72 95 +157%99 +29%127 +48%67 −7%
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.

Order book

high confidence

Total value

₹5,500 Cr

as of 2025-12-31 quantified

37.5% QoQ

Inflow this quarter

₹1,500 Cr

Composition

  • Utility Scale (CIL, SJV, NTPC) (client type)
The EPC order book has seen substantial growth, with the majority being utility-scale projects, and the company is hedged against price variations.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed
    • 445 MW/890 MW standalone BESS project ₹1,000 Cr
    • Initial 500 MW project in Botswana ₹1,500 Cr
    For 445 MW/890 MW it will be at around INR 1,000 crores to INR 1,100 crores kind of a total investment that we expect in this particular project. ... for the 500-megawatt capacity, it would be around INR 1,500 to 1,700 crores kind of a total project cost.
  • Debt 1.5× EBITDA
    if you see my debt equity is 1.50 i.e. my total borrowing, which includes my short-term borrowing and long-term borrowing, it is 1.50:1, which is one of the best in the industry for companies which are into capex mode.

Guidance & targets

Capacity

  • GUVNL Solar Project Completion Capacity · by end of June · High confidence Majority of 250 MW capacity
    Going forward, our focus remains on completing the majority of the project capacity by the end of the June.

    — Salim Yahoo

  • Total Capacity Capacity · by 2030 · High confidence 10 gigawatt
    KPI Green Energy is firmly on track to achieve its long-term vision of 10-gigawatt capacity by 2030.

    — Salim Yahoo

  • Botswana Project Commissioning Capacity · in a couple of years · High confidence Initial 500-megawatt
    We are progressing rapidly on this opportunity and aim to commission an initial 500-megawatt project in a couple of years.

    — Salim Yahoo

  • IPP Commissioning Capacity · by March '26 · High confidence 1 gigawatt
    Yes, Gaurav, before we started the question and answer, I had given a speech. In that speech, I have already said that out of that 1 gigawatt, we have already charged and we have started injecting power for around 35 megawatt altogether. So it will be done in a piecemeal and we are very much in line to achieve our target over there.

    — Salim Yahoo

Profitability

  • IRR for GUVNL BESS Project Profitability · High confidence 13% to 14%
    the IRR will be around 13% to 14% that we are expecting in this project

    — Salim Yahoo

  • IRR for Botswana Project Profitability · High confidence better than 13%
    our IRR will be far better than what we are earning. ... Yes. It will be higher than that.

    — Salim Yahoo

  • Combined EBITDA Margin Profitability · High confidence 30% to 35%
    So combined, if you see the cumulative EBITDA will come around 30% to 35% kind of EBITDA.

    — Salim Yahoo

  • Combined PAT Margin Profitability · High confidence 18%
    And as we go down with other costs and everything, my PAT is around 18-odd percent.

    — Salim Yahoo

  • Sundrop EBITDA Margin Profitability · High confidence 25% to 30%
    And EBITDA as I told you is around -- if you look at the combined EBITDA, it would be around 25% to 30% in that range.

    — Salim Yahoo

Revenue

  • Revenue from 250 MW IPP Revenue · in the last quarter (Q4 FY26) · High confidence start generating revenue
    So we are expecting another 250 megawatt to start generating revenue in the last quarter.

    — Salim Yahoo

  • Sundrop Turnover Revenue · this year · Medium confidence INR 500 crores to INR 600 crores
    Yes, somewhere around INR500 crores to INR600 crores.

    — Salim Yahoo

  • IPP Recurring Revenue Revenue · FY27 · Medium confidence INR 300 crores
    So can I assume for FY '27, the number of units would be around, let's say, INR100 crores units and INR300 crores revenue.

    — Salim Yahoo

  • IPP Revenue Percentage of Total Revenue · by FY2030 · High confidence 25% to 30% minimum
    We are planning to have around 25% to 30% minimum. That is what we are targeting to push in.

    — Salim Yahoo

IPO

  • Sundrop IPO Timeline IPO · next financial year, most probably, the first half of the next financial year · High confidence H1 FY27
    we are expecting it in the next financial year, most probably, the first half of the next financial year, we're expecting to close it.

    — Salim Yahoo

Growth

  • Revenue Growth Growth · year-on-year · High confidence 50% to 60%
    But as we have told in our various public forums, we expect 50% to 60% growth year-on-year.

    — Salim Yahoo

Debt

  • Pledge Release Debt · by March '27 · High confidence release all pledge
    The target is around September 26 that we have given to the SBI that we will complete. And within then, 6 months, we will -- by March '27, we'll be able to release that.

    — Salim Yahoo

What to watch in Q4 FY26

Khavda Project Revenue Contribution

Q4 FY26
Current No revenue recognized in Q3 FY26
Target Revenue recognition to begin in Q4 FY26

Why it matters

Khavda is a significant IPP project (240 MW) whose revenue recognition was delayed, and its contribution will impact overall IPP segment performance.

now in the next quarter, we'll see the revenue from the Khavda because that is one major thing which we'll be seeing movement in our IPP.

Risks & concerns

  • Panel Price Volatility

    medium

    Rising silver prices and import restrictions from China could impact solar panel costs, but management states they are hedged through price variation clauses and inventory blocking.

    Analyst acknowledged

  • Increased Debtor and Inventory Days

    medium

    Debtor and inventory days increased Q-on-Q and Y-o-Y, attributed to substantial growth and concentration of billing in Q3, but expected to normalize in Q1 FY27.

    Analyst acknowledged

  • New Product Materialization Timeline

    medium

    Diversification into new products like green hydrogen and EV fuel stations are in nascent stages and will require time to materialize and contribute to revenue.

    Management acknowledged

Q&A highlights

7 direct
GUVNL BESS Project Investment and IRR Direct
For 445 MW/890 MW it will be at around INR 1,000 crores to INR 1,100 crores kind of a total investment that we expect in this particular project. ... the IRR will be around 13% to 14% that we are expecting in this project

Provides specific financial details for a significant new battery energy storage project, including investment size and expected returns.

Asked by Garvit Goyal

Impact of Silver Prices on Margins Direct
whatever contracts we do with GUVNL, the tender has a clause where we say that if there is an increase in the prices, it will automatically be factored in as an increase in the tariff. ... we block the stock immediately at the moment we fix the contract or when we sign the contract with the sales order.

Addresses a key input cost risk (rising silver prices for solar panels) and explains the company's hedging mechanisms and price variation clauses to protect margins.

Asked by Garvit Goyal

Botswana MOU Investment and Revenue Direct
for the 500-megawatt capacity, it would be around INR 1,500 to 1,700 crores kind of a total project cost. ... our IRR will be far better than what we are earning.

Clarifies the scope, initial investment, and financial attractiveness of the major international expansion into Botswana, highlighting the expected IRR.

Asked by Aman Soni

Status of Other MOUs (Green Hydrogen, EV Fuel Stations) Partial
hydrogen. Hydrogen is a new product altogether. So for that, it will take up time for it to materialize and to reach its life cycle. ... we are already working on those MOUs. So like the Gujarat MOU and everything.

Provides insight into the nascent stage and longer timeline for diversification into new energy segments like green hydrogen and EV fuel stations.

Asked by Aman Soni

IPP vs CPP Margin Impact Direct
as I grow, I will also grow my CPP. So that's the reason the margin will remain same. It will not get diluted. But if I only grow my CPP and not grow IPP, then my margin will go down.

Clarifies the company's strategy to maintain overall EBITDA margins despite a growing share of higher-margin IPP projects, due to simultaneous growth in the CPP segment.

Asked by Garvit Goyal

Khavda Project Revenue Recognition Direct
Khavda we had completed in FY '25, but the delay in the offtake of the unit was because of the government substation not completed which was in the scope of GUVNL. ... now in the next quarter, we'll see the revenue from the Khavda

Explains the reason for delayed revenue recognition from the Khavda IPP project and provides a clear timeline for its contribution to future revenues.

Asked by Parth Kotak

Sundrop IPO Timeline Direct
we are expecting it in the next financial year, most probably, the first half of the next financial year, we're expecting to close it. ... Sundrop will be focusing more on the battery energy storage system

Provides a specific timeline for the IPO of Sundrop Energy, a key subsidiary focused on the growing battery energy storage system (BESS) market.

Asked by Waseem Ali

Debtor and Inventory Days Increase Direct
One is that we are growing substantially. And automatically, as I told earlier also, whenever we book an order, we have to block the inventories. ... majority of the billing happens in the December and the March quarter, that's why the debtors stay down.

Addresses concerns about increased working capital metrics, attributing them to rapid growth and seasonal billing patterns, with an expectation of normalization.

Asked by Gaurav Sharma

2 min read 6 chapters

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.

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