This article first appeared on GuruFocus .
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Consolidated Total Income:INR520.97 crore in Q1 FY27, up approximately 126% year-on-year from INR220.6 crore in Q1 FY26.
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Revenue from Operations:INR519.46 crore, compared with INR219.54 crore in the same quarter last year.
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Infrastructure Development Revenue:INR504.75 crore, up approximately 142% from INR208.25 crore in Q1 FY26.
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O&M Business Revenue:INR2.94 crore, up from INR1.16 crore in the prior-year quarter.
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Sale of Parts Revenue:INR11.78 crore, compared with INR10.14 crore in Q1 FY26.
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Gross Margin:Approximately 20% in Q1 FY27, down from 28% in Q4 FY26, a sequential contraction of about 8 percentage points.
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Gross Profit:Approximately INR102 crore in Q1 FY27, reflecting about 56% of the exceptional Q4 FY26 base.
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Profit Before Tax:INR37.44 crore, compared with INR34.75 crore in Q1 FY26.
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Profit After Tax:INR26.08 crore, compared with INR25.42 crore in the year-ago quarter.
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Depreciation:INR9.18 crore for the quarter.
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Finance Costs:INR15.43 crore for the quarter.
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Order Book:2.16 gigawatts valued at over INR2,250 crore at the end of Q1 FY27.
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Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated total income surged 126% YoY to INR520.97 crore, demonstrating strong execution and scale.
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Order book remains robust at 2.16 GW valued at over INR2,250 crore, providing strong revenue visibility.
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O&M business revenue grew significantly to INR2.94 crore from INR1.16 crore YoY, showing progress in recurring revenue streams.
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Successfully commissioned the 50.4 MW Vaki wind project in July 2026, showcasing execution capabilities.
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Management is selectively pursuing new orders, focusing on quality and profitability, with a large pipeline available.
Negative Points
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Gross margin contracted sharply to ~20% from 28% in Q4 FY26, due to geopolitical disruptions, supply chain issues, and higher right-of-way costs.
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Profit after tax growth was minimal (INR26.08 crore vs INR25.42 crore YoY) despite a 126% revenue increase, indicating significant margin pressure.
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The company faces ongoing challenges from grid and transmission infrastructure bottlenecks, leading to curtailment risks and project delays.
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Order book value declined from ~INR3,000 crore to INR2,250 crore, partly due to de-scoping of existing orders, raising concerns about order quality.
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Management refrained from providing clear margin guidance, citing an uncertain operating environment, which may worry investors.
Q & A Highlights
Q: Can we expect margins to revert back to Q4/Q3 levels, or is this the new normal? A: Shabana Belim, CFO, stated that Q1 should not be considered an exact representative going forward, but the company also does not want to assume immediate normalization of the environment. Margins depend on the project stage and mix of projects being executed. The company has already factored the cost impact into Q1 and will try to compensate with operating efficiency going forward. She declined to give a specific margin guidance number.
Q: Are we still holding on to the 40% to 50% top-line growth guidance for FY27? A: Shabana Belim, CFO, revised the guidance down to 30% to 40% growth. She noted that while the company has substantial orders in hand and internal targets are higher, the cautious guidance considers on-ground situations such as right-of-way (ROW) costs and farmer protests in Gujarat that could impact execution timelines.
Q: What is the current order book value and how much is from related parties? A: Shabana Belim, CFO, confirmed the order book stands at 2.16 gigawatts valued at approximately INR2,250 crores as of June 30, 2026. In terms of value, about 50% is from related parties (KPI Green) and the balance 50% is from non-related parties.
Q: What is the current IPP portfolio size and how will it evolve? A: Shabana Belim, CFO, stated the current IPP capacity is 48.5 megawatts (11.5 MW solar and 37 MW wind), fully operational. The company has signed PPAs for an additional 200 megawatts (100 MW each) with sovereign entities, with a 24-month execution period from April 2026. Once commissioned, this is expected to add approximately INR200 crores to the IPP segment top line, bringing total IPP capacity to 248.5 MW.
Q: Why has the pace of order inflows slowed despite strong momentum in the wind segment? A: Shabana Belim, CFO, explained that the company is being selective in picking up orders. The company evaluates each order based on cost components, execution capabilities, and region-specific factors like ROW costs and grid availability. While the pipeline is larger than 2 gigawatts, the company is being "picky and choosy" to avoid blocking resources on unfavorable projects.
Q: Have the margins bottomed out, and can we expect better performance going forward? A: Shabana Belim, CFO, said that based on current visibility, the company has factored the cost impact into its current working and does not envisage any immediate further fall in margins. However, there are factors beyond the company's control, and the company will rely on optimizing operating efficiencies to protect profitability.
Q: What is the company's revenue ambition and key milestones for FY30? A: Shabana Belim, CFO, mentioned the group target of 10 gigawatts by 2030, covering KPI Green and KP Energy. The company is close to achieving this target and will soon revise the group target. Company-specific targets will also be published in the near future.
Q: Why has the order book value declined from INR3,000 crores to INR2,250 crores despite executing only INR500 crores? A: Shabana Belim, CFO, explained that the gap of approximately INR250 crores represents orders the company is currently evaluating whether to continue or de-scope. The company has factored this possibility into the conservative INR2,250 crore figure provided to investors.
Q: What is the status of expansion beyond Gujarat, particularly in Karnataka, Rajasthan, and Madhya Pradesh? A: Shabana Belim, CFO, stated that Karnataka is an opening where the company is planning to set up a project, with advanced-stage discussions. The company has tied up connectivity, land, EHV, and PSS, with about 30% of the required work already acquired. For Rajasthan and Madhya Pradesh, the company is working on grid connectivity solutions to avoid curtailment issues before venturing into those states.
Q: Are there price escalation clauses in the current order book to mitigate geopolitical cost pressures? A: Shabana Belim, CFO, clarified that contracts are distinct and separate for different projects, and not every contract has the same clauses. The company is exploring force majeure clauses where possible, but projects at certain stages may not be able to attract such clauses. The company is looking for the best possible optimum solution for the situation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
