Oriana Power Ltd — Q2 FY26 earnings call

Call held 25 Nov 2025

Management summary

Oriana Power Ltd delivered strong H1 FY26 results, marked by significant revenue and PAT growth, and an upgraded credit rating. The company is aggressively expanding its footprint across the entire renewable energy value chain, with ambitious targets in BESS and green hydrogen, supported by strategic partnerships. Management expressed high confidence in achieving its revised targets and transitioning to the mainboard by August 2026, while maintaining a disciplined approach to profitability.

Highlights

  • Consolidated Revenue reached ~Rs. 781.18 crores, growing 2.17x YoY from Rs. 359 crores.

  • Consolidated PAT increased 2.5x YoY to ~Rs. 121.63 crores from Rs. 48.57 crores, with a PAT margin of ~15.57%.

  • Credit rating upgraded from BBB+ to A- stable by Crisil.

  • Secured a joint development agreement with Actis GP LLP for 1 GW of RE assets, expected to generate ~Rs. 4,000 crores revenue in the next 2 years.

  • Revised BESS target significantly upwards from ~3.5 GWh to ~20 GWh by 2030.

  • Awarded 60 KTPA of Green Ammonia, projected to yield ~Rs. 313 crores in annual recurring revenue after 2028.

  • Targeting mainboard migration by August 2026.

  • Debt-Equity ratio improved to 0.50 from 0.69.

Key financials

  1. Consolidated Revenue ₹781.18 Cr +117%YoY
  2. Consolidated PAT ₹121.63 Cr +150%YoY
  3. Consolidated EBITDA ₹181.74 Cr
  4. Consolidated PAT Margin 15.6%
  5. Consolidated Basic EPS ₹59.77 +140%YoY
  6. Debt-Equity Ratio 0.5

What they filed

Q4 FY26: revenue up 223.5%, net profit up 165.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue64 319 360 628 781 +1120%1,032 +224%
EBITDA11 69 75 159 180 +1536%218 +216%
Net profit6 49 49 110 122 +1933%130 +165%
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

Capacity

  • EPC Capacity Capacity · by 2026 March · High confidence 2 GW+
    we are targeting 2 GW+ as an EPC Company.

    — Parveen Kumar

  • BESS Pipeline Capacity · coming year · High confidence 2 GWh
    the 2 GWh is our pipeline for battery energy storage, which we are targeting in coming year of time.

    — Parveen Kumar

  • Green Ammonia Annual Production Capacity Capacity · 3 years from agreement signing · High confidence 60 KTPA
    recently, we got awarded 60 KTPA of Green Ammonia. which is the annual production capacity for green ammonia, and this agreement will be signed with the central PSU, SECI with the support of, and this project is we have a timeline of 3 years from the signing of the agreement; this is the consumption side profile.

    — Parveen Kumar

  • RE Assets Development (with Actis) Capacity · 2 years · High confidence 1 GW
    We have signed a joint development agreement with Actis GP LLP for development of ~1 GW of RE assets under their platform... for the period of 2 years under this agreement.

    — Anirudh Saraswat

  • BESS Target Capacity · by 2030 · High confidence 20 GWh

    Previously 3.5 GWh → 20 GWh

    Yes, we have revised our target of BESS from ~3.5 GWh to ~20 GWh by 2030.

    — Anirudh Saraswat

  • Data Center Capacity Capacity · by 2030 · Medium confidence 100 MW
    A target of 100 MW has been set for 2030, but at this stage we cannot say too much about it.

    — Anirudh Saraswat

  • EPC Share of BESS Target Capacity · till 2030 · High confidence 10 GWh
    So, we are targeting till 2030: ~10 GWh in EPC, ~5 GWh in build, own and operate mode, and ~5 GWh power in the recycling mode, that project developments.

    — Anirudh Saraswat

  • Build, Own, Operate Share of BESS Target Capacity · till 2030 · High confidence 5 GWh

    — Anirudh Saraswat

  • Recycling Share of BESS Target Capacity · till 2030 · High confidence 5 GWh

    — Anirudh Saraswat

Revenue

  • Annual Recurring Revenue from Green Ammonia Revenue · after 2028 · High confidence Rs. 313 Cr
    This ensures an annual recurring revenue of ~Rs. 313 Cr., but this revenue will come after 2028.

    — Anirudh Saraswat

  • Revenue Generation from Actis JV Revenue · next 2 years · High confidence Rs. 4,000 plus Cr
    this ~1 GW is somewhere around, 4,000 crores, which will give good profitability, because it's not about a regular EPC contract, It's more than that, it's about Project development.

    — Anirudh Saraswat

  • Overall Revenue Revenue · FY26 · High confidence over Rs. 2,000 crores

    Previously Rs. 2,500 Cr → over Rs. 2,000 crores

    So, definitely, we're trying to get over 2,000 crores

    — Anirudh Saraswat

  • Overall Revenue Revenue · FY28 · High confidence over Rs. 1,000 crores
    FY26, FY27, FY28 definitely, they are going to achieve over a thousand crores in 2028.

    — Anirudh Saraswat

Other

  • Land Acquired Other · as on date · High confidence 3500+ Acres
    more than 3500 Acres of land has been acquired in Oriana Power for further development of renewable energy projects.

    — Parveen Kumar

  • Net Worth Other · in 2-3 years · Medium confidence Rs. 3,000 Cr
    in 2-3 years Oriana's net worth will cross ~Rs. 3,000 Cr.

    — Anirudh Saraswat

  • Mainboard Migration Eligibility Other · August 2026 · High confidence August 2026
    So, by August 2026, we are eligible to file an application for the main board.

    — Varun Prabhakar

Capex

  • Equity Committed (by Actis) Capex · 2 years · High confidence USD 100 million
    with funds of ~USD100 million equity committed for the period of 2 years under this agreement.

    — Anirudh Saraswat

Revenue Mix

  • Solar Revenue Share Revenue Mix · FY26 · High confidence 90%
    In FY26, ~90% of revenue will be from solar, ~10% from BESS.

    — Anirudh Saraswat

  • BESS Revenue Share Revenue Mix · FY26 · High confidence 10%

    — Anirudh Saraswat

  • Solar Revenue Share Revenue Mix · FY27 · High confidence 60%
    In FY27, ~60% from solar and ~40% from BESS.

    — Anirudh Saraswat

  • BESS Revenue Share Revenue Mix · FY27 · High confidence 40%

    — Anirudh Saraswat

  • Solar Revenue Share Revenue Mix · FY28 · High confidence 30%
    In FY28, ~30% from solar, ~50% from BESS, and ~20% from hydrogen.

    — Anirudh Saraswat

  • BESS Revenue Share Revenue Mix · FY28 · High confidence 50%

    — Anirudh Saraswat

  • Hydrogen Revenue Share Revenue Mix · FY28 · High confidence 20%

    — Anirudh Saraswat

Profitability

  • Green Ammonia Project IRR Profitability · High confidence 23-24%
    definitely, the IRR is better. It's somewhere around - I'll give you a one-part figure - it's somewhere around 23-24%, which is better than generation and storage.

    — Anirudh Saraswat

Risks & concerns

  • Competition in Solar EPC and BESS segments

    medium

    Management acknowledges new players entering the market but emphasizes Oriana's unique position, timing, customer base, and strategic approach of not bidding aggressively in low-margin scenarios.

    Analyst acknowledged

  • Working capital cycles and collection of receivables in long-cycle projects

    medium

    Management states that project cycles are long, especially during monsoon, and larger projects take more time to collect receivables, but they are actively focusing on this aspect.

    Analyst acknowledged

  • Government policy changes, curtailment, and grid bottlenecks impacting renewable capacity auctions

    low

    Management believes these issues have minimal impact on Oriana as their focus is on C&I and DISCOM-related projects, not utility-scale, and they see opportunities in storage to mitigate grid limitations.

    Analyst downplayed

Areas of evasion (1)

  • Granular financial details of the Actis deal due to NDA.

Q&A highlights

2 direct
Oriana's positioning and strategy in the evolving renewable energy sector Direct
In the renewable energy sector, on the generation side, we are quite matured in solar energy. We are targeting things differently with funds, with AA and AAA-rated clients... Then storage — BESS is something which is the need of the hour... On the hydrogen side, yes, you can say we have already started taking orders, and we are in discussion with licenses, technology partners, and other things.

This question allowed management to articulate their comprehensive strategy across solar, BESS, and green hydrogen, emphasizing their focus on high-rated clients and strategic partnerships for sustainable growth.

Asked by Mr. Jatin (Invest Savvy PMS)

Details regarding the Actis deal, including completion timeline, margins, and accounting treatment Partial
So, in FY2026, we are expecting monetization of almost 100+ MW in this particular year. The transaction may happen at the end of March or in the first week of April... Deal margins are good. Right now, this is all I can say, I cannot say more about the Actis deal... we will treat this basis as Accounting Standard 13.

While some details were withheld due to NDA, management provided clarity on the expected timeline for revenue recognition from the Actis deal and confirmed favorable margins, which is crucial for investor understanding.

Asked by Mr. Naman Kasat

Viability of BESS projects given record low auction rates in the market Direct
Sir, whether it is viable or not, we are not the most appropriate people to judge... In our own economics, it seemed a little tight, so we did not go that aggressive... sometimes the market needs its own correction period... we just want to wait for some time, because there could be a possibility that they are on the aggressive participant side.

This revealed management's disciplined approach to project selection, prioritizing profitability and waiting for market corrections rather than engaging in aggressive, low-margin bidding, which is a key risk mitigation strategy.

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Financial Performance and Credit Rating Upgrade

Oriana Power reported robust consolidated financials for H1 FY26, with revenue reaching approximately Rs. 781.18 crores, marking a 2.17x growth from Rs. 359 crores in the previous period. Consolidated PAT also saw significant growth, increasing 2.5x to approximately Rs. 121.63 crores from Rs. 48.57 crores, resulting in a healthy PAT margin of ~15.57%. The company's credit rating was upgraded from BBB+ to A- stable by Crisil, reflecting improved financial health and operational strength, with the Debt-Equity ratio decreasing to 0.50 from 0.69.

Strategic Diversification Across the RE Value Chain

The company is strategically transitioning from a pure solar EPC player to an integrated Renewable Energy (RE) company, covering the entire value chain from generation through storage to consumption. This expansion includes solar, wind, hybrid, battery energy storage (BESS), green hydrogen, and e-fuels. Management emphasized a strong focus on the consumption segment, aiming to cover the 'whole value chain of the RE domain' for future growth and increased profitability.

Ambitious Capacity Expansion and BESS Target Revision

Oriana Power is targeting 2 GW+ EPC capacity by March 2026 and has a 2 GWh pipeline for battery energy storage in the coming year. A significant highlight is the upward revision of the BESS target from ~3.5 GWh to ~20 GWh by 2030, with 800+ MWh already added. This revised target includes ~10 GWh for EPC, ~5 GWh for Build-Own-Operate, and ~5 GWh for recycling, demonstrating aggressive growth plans in the storage segment.

Key Partnerships and Green Hydrogen Initiatives

A major development is the joint development agreement with Actis GP LLP for 1 GW of RE assets, backed by ~USD 100 million in equity, projected to generate ~Rs. 4,000 crores in revenue over the next two years. In the green hydrogen sector, Oriana was awarded 60 KTPA of Green Ammonia, expected to yield ~Rs. 313 crores in annual recurring revenue after 2028. The company is also exploring Carbon Capture, Utilization, and Storage (CCUS) and targeting 200,000 tons per annum of green hydrogen production by FY28.

Geographic Expansion and Project Development Focus

Oriana is strategically expanding into new geographies such as Rajasthan, Haryana, Tamil Nadu, Andhra Pradesh, and Chhattisgarh, having already secured over 3500+ acres of land for renewable energy projects. The company's focus is on 'shawl-ready projects' and project development, prioritizing profitability over aggressive bidding in highly competitive markets. They have successfully commissioned Rajasthan's first group captive open access project and the largest project in Goa under virtual net metering.

Future Revenue Mix and Mainboard Migration Outlook

Management provided a clear revenue mix guidance, projecting solar to contribute 90% in FY26, 60% in FY27, and 30% in FY28. Concurrently, BESS is expected to grow its share to 10%, 40%, and 50% respectively, with hydrogen contributing 20% by FY28. The company is targeting overall revenue of over Rs. 2,000 crores for FY26 and expects to be eligible to file for mainboard migration by August 2026, with preparations actively underway.

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