Oriana Power Ltd — Q4 FY25 earnings call

Call held 3 Jun 2025

Management summary

Oriana Power Ltd reported a strong FY25, exceeding revenue and PAT expectations with ₹987 crores and ₹150 crores+ respectively. The company demonstrated significant growth in its solar business, adding over 200 MW in FY25 and securing a robust order book of ₹2,500 crores. Strategic diversification into Battery Energy Storage Systems (BESS) and Green Hydrogen is underway, with substantial MOUs signed and clear capacity targets set for FY26 and 2030, positioning Oriana as a 'Gigawatt Era Company'.

Highlights

  • Achieved a revenue of ₹987 crores in FY25, surpassing the expectation of ₹800 crores.

  • Reported a PAT of ₹150 crores+, exceeding market expectations of ₹130-140 crores.

  • EBITDA for FY25 stood at ₹245 crores, growing 2.93 times.

  • Reduced debt to equity ratio to 0.53 and increased EPS to 79.52.

  • Delivered cumulatively 400 MW of solar capacity, with over 200 MW added in FY25 alone.

  • Secured an order book of over ₹2,500 crores as of the call date.

  • Signed MOUs worth ₹15,500 crores with state governments for renewable energy projects.

  • Targeting 1 GW+ cumulative solar capacity and 1 GW hour+ battery energy storage by FY26.

Key financials

  1. Revenue ₹987 Cr
  2. PAT ₹150 Cr
  3. EBITDA ₹245 Cr +193%YoY
  4. EPS ₹79.52
  5. Debt to Equity Ratio 0.53
  6. Current Ratio 1.47

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

  • Cumulative Solar Capacity Addition Capacity · by FY26 · High confidence 1 GW+
    This is what we have achieved last year and where we are heading from this vertical. So, we are targeting one GW plus capacity, cumulative addition, cumulative capacity by FY 26. That means typically, we are going to add another 600 MW this year.

    — Rupal Gupta

  • Additional Solar Capacity Capacity · FY26 · High confidence 600 MW
    That means additional capacity of 600 MW is being added or is planned to be added this year, which is tentatively I would say 2 and a half times of what we did last year. That's correct.

    — Rupal Gupta

  • Battery Energy Storage System (BESS) Capacity Capacity · FY26 · High confidence 1 GW hour+
    for the battery energy storage also we have set a target of one GW hour plus

    — Parveen Kumar

  • Electrolyser Capacity Capacity · by FY26 · Medium confidence 500 MW
    We are planning a 500 MW electrolyser capacity by FY 26, which is underway, and yes it is subject to geopolitical conditions and prices from China.

    — Anirudh Saraswat

  • Solar EPC Capacity Capacity · by 2030 · High confidence 6 GW
    by 2030 we will be a 6 GW EPC Company

    — Parveen Kumar

  • Solar IPP Capacity Capacity · by 2030 · High confidence 2.5 GW
    with an additional IPP of 2.5 GW.

    — Parveen Kumar

  • Battery Energy Storage System (BESS) Portfolio Capacity · by FY2030 · High confidence 3.5 GW hour
    Similarly for the BESS also we have made a commitment of 3.5 GW hour additional portfolio by FY 2030, but I think, with the current aggressive market requirements and opportunities which we are looking, this target can be achieved early than FY 2030.

    — Parveen Kumar

Revenue

  • Green Hydrogen Revenue Revenue · FY26 · High confidence 0
    And one more thing will not expect any revenue from hydrogen this particular year.

    — Anirudh Saraswat

  • Total Revenue Revenue · FY26 · Medium confidence ₹2,000-2,500 crores
    But yes, it could be in the range of somewhere between Rs. 2,000 to 2,500 Cr.

    — Anirudh Saraswat

Production

  • E-fuels Production Production · by 2028 · High confidence 50,000 MTPA
    And we would like to strengthen our production catastrophe of E-fuels by 50,000 MTPA by 2028.

    — Anirudh Saraswat

  • Green Hydrogen Production Production · by 2030 · High confidence 1 million metric ton per annum
    on the green ammonia or green hydrogen, or its derivative or hydrogen, we set a target of 1 million metric ton per annum by the year of 2030

    — Parveen Kumar

Revenue Mix

  • EPC Revenue Contribution Revenue Mix · FY26 · High confidence 80%
    EPC will be around 80% of the revenue of Oriana Power.

    — Anirudh Saraswat

  • BESS & Other Revenue Contribution Revenue Mix · FY26 · High confidence 20%
    the 20% of the total revenue will be contributed from the multiple other revenues like Battery Storage, Hydrogen, IPP.

    — Parveen Kumar

  • Solar Revenue Contribution Revenue Mix · FY27 · High confidence 70%
    So, in FY 27, 70% from solar and 30% from BESS CBG, a little bit from green hydrogen.

    — Anirudh Saraswat

  • BESS & CBG Revenue Contribution Revenue Mix · FY27 · High confidence 30%

    — Anirudh Saraswat

  • Solar Revenue Contribution Revenue Mix · After FY27 · Medium confidence 30-35%
    After that, yes, solar may come down to 30-35% BESS 30-35% and then hydrogen should take over from there.

    — Anirudh Saraswat

  • BESS Revenue Contribution Revenue Mix · After FY27 · Medium confidence 30-35%

    — Anirudh Saraswat

Profitability

  • BESS EBITDA Margin Profitability · High confidence 90-95%
    the total revenue is around again, a 90 to 95% is the EBITDA from the BESS projects also

    — Parveen Kumar

Corporate Governance

  • Main Board Migration Corporate Governance · August (tentative) · Medium confidence Yes
    Obviously hum log august me with the help of Varun Prabhakar Ji shayad hum main board par aajayge.

    — Anirudh Saraswat

Financial Reporting

  • Quarterly Results Financial Reporting · Next year onwards (maybe Dec quarter) · Medium confidence Start reporting
    Next year onwards We'll try to give quarterly results. December ka We'll see.

    — Anirudh Saraswat

Capex

  • Electrolyser Factory Investment Capex · High confidence 30 million dollar
    So, 30 million dollar would be needed, and 80% will be financed by bank, and 20% will be the equity in that thing, and we'll finance it from cash flow.

    — Anirudh Saraswat

Risks & concerns

  • Market volatility and geopolitical conditions impacting electrolyser prices

    medium

    The plan for 500 MW electrolyser capacity by FY26 is subject to geopolitical conditions and prices from China, and management is seeing volatility in the market.

    Management acknowledged

  • Execution delays in long-cycle projects (e.g., Green Hydrogen, IPP)

    medium

    Green Hydrogen projects take time to materialize, unlike solar, and IPP projects may show negative PAT initially due to commissioning costs before revenue recognition.

    Management acknowledged

  • Competition and limited margins in the solar EPC market

    low

    Management noted a period (Dec-Apr) where many players were taking orders with limited margins, leading Oriana to be conservative and selective.

    Management acknowledged

Areas of evasion (2)

  • Specific details on why their EBITDA margins are higher than peers (beyond 'selectivity')
  • Exact timeline for main board migration beyond 'August (tentative)'

Q&A highlights

2 direct
Conversion of MOUs into firm orders and revenue Direct
Amit Ji, these are the MOUs signed with the State Government. Because State government are facilitating various things like land connectivity and they are also addressing various issues on monthly basis. So, we are very fortunate that State governments in these times are addressing our issues on monthly basis. So, these things are going very fast. Yes, definitely these MOUs are not just MOUs we are already on the ground with these MOUs. The timeline of these MOU's are 4 to 5 years cumulatively.

Clarifies that the large MOUs are not firm orders but are actively being executed with government support, providing a long-term pipeline for growth over 4-5 years.

Asked by Amit Kumar

Reason for higher EBITDA margins compared to peers Partial
We are little selective, conservative taking the orders just by participating in the tenders, we believe in forming the projects on our own, but it our team gets engaged even 2 years or a year before, before we participate in the tender. So that is the larger reason, but I don't think that should be opened up to all in the public domain. But yes, our EBITDA margin is something where we are heavily focused. So, selective in choosing the right projects for Oriana Power

Management attributes higher margins to a selective project acquisition strategy and early engagement, but avoids full disclosure on specific competitive advantages, hinting at proprietary methods.

Asked by Amit Kumar

Trade receivables increase and positive cash flow Direct
Generally ye payments Q1 me realise hojati hai easily as you known it very well depend hum log PSUs ke sath kaam kre hai ya AA and AAA rated companies ke sath kaam kre there is no bad debts as such. ... waise bhi LC limits hoti hai humare pass, usually 90 days 120days credit mil jate hai islie cashflow acha rehta hai Q1 me ache se realise hojati hai.

Addresses investor concern about high trade receivables by explaining that Q4 billings are realized in Q1, working with creditworthy clients (PSUs, AA/AAA rated), and utilizing LC limits, ensuring healthy cash flow.

Asked by Amit Kumar

3 min read 7 chapters

Detailed narrative

Strong FY25 Financial Performance

Oriana Power Ltd delivered a robust financial performance in FY25, reporting a revenue of ₹987 crores, significantly exceeding the anticipated ₹800 crores. Profit After Tax (PAT) also surpassed expectations, reaching over ₹150 crores against a projected ₹130-140 crores. The company's EBITDA grew 2.93 times to ₹245 crores, demonstrating strong operational efficiency. Furthermore, the debt-to-equity ratio improved to 0.53, and EPS increased to 79.52, reflecting healthy financial management.

Solar Business Expansion and Order Book

In the solar business vertical, Oriana cumulatively delivered 400 MW of capacity, with over 200 MW added in FY25 alone. The company is currently executing more than 550 MW of capacity and has secured a strong order book exceeding ₹2,500 crores. Key projects include 128 MW for Dalmia Cement, 100 MW for JK Cement, 100 MW for Maharashtra State Electricity Company, and 71 MW for Bharat Petroleum. The company is also expanding into ISTS/CTU connected Solar Power Plants, targeting 1 GW+ cumulative solar capacity by FY26.

Strategic Diversification into BESS and Green Hydrogen

Oriana is making significant strides in Battery Energy Storage Systems (BESS) and Green Hydrogen. For BESS, the company has secured orders for 403 MWh and aims to add an additional 600 MWh, targeting a total portfolio of 3.5 GWh by 2030. In Green Hydrogen, Oriana has an allocation of 10,000 metric tons per annum capacity and is developing a 225 tons per day E-methanol project. A 500 MW electrolyser capacity is planned by FY26, with an investment of $30 million, 80% financed by bank and 20% from cash flow.

Long-Term Vision and Gigawatt Era Transition

The company envisions becoming a 'Gigawatt Era Company,' transitioning from megawatts to gigawatts. By 2030, Oriana targets to be a 6 GW EPC Company with an additional 2.5 GW in IPP for solar. For Green Hydrogen, the target is 1 million metric tons per annum production by 2030. Management expressed confidence that the BESS target of 3.5 GWh might be achieved earlier than FY30, driven by aggressive market requirements.

Government Support and MOUs

Oriana has signed significant Memorandums of Understanding (MOUs) with state governments, totaling ₹15,500 crores. This includes ₹10,000 crores with Rajasthan, ₹5,000 crores with Madhya Pradesh, and ₹500 crores with Assam. These MOUs, while not firm orders, are actively being executed on the ground, with state governments facilitating land and connectivity, which are crucial for large-scale renewable energy projects.

Operational Strategy and Margin Focus

Management emphasized a selective and conservative approach to project acquisition, focusing on bottom-line profitability and strong margins. They noted that while the company was 'silent' in declaring new orders during a period of limited margins in the market (Dec-Apr), they are now poised to secure a 'good chunk of orders' with better margins. The BESS segment is expected to yield high EBITDA margins of 90-95%.

Corporate Governance and Team Expansion

Oriana is strengthening its corporate governance and leadership team. The company recently received a 'Great Place To Work' certification and has expanded its workforce from 92 in 2024 to over 250 employees. Key additions include Mr. Varun Prabhakar as General Counsel, leading a new legal and corporate governance team. The company also plans to migrate to the main board and start reporting quarterly results from next year, possibly by the December quarter.

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