This article first appeared on GuruFocus .
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Total Income:INR2,742 crores in FY26, up 56% from INR1,755 crores in FY25.
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EBITDA:INR1,006 crores in FY26, a 73% increase from INR581 crores in FY25.
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Profit After Tax (PAT):INR509 crores in FY26, up 57% from INR325 crores in FY25.
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Q4 FY26 Total Income:INR810 crores.
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Q4 FY26 EBITDA:INR305 crores.
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Q4 FY26 PAT:INR155 crores.
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Net Worth:Increased to INR3,273 crores in FY26 from INR2,630 crores in FY25.
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Fixed Assets:Grew to INR5,427 crores in FY26.
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Cash Flow from Operations:Improved to INR424 crores in FY26 from INR208 crores in FY25.
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Installed Capacity:Over 1.62 gigawatts as of March 31, 2026.
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Work in Progress Capacity:Over 4.64 gigawatts.
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Installed Plus Upcoming Portfolio:Approximately 6.26 gigawatts.
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Green Bond Listing:INR670 crores five-year instrument with 8.50% coupon rate.
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Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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KPI Green Energy Ltd ( BOM:542323 ) reported a strong financial performance for FY26, with a 56% year-on-year increase in total income and a 57% increase in profit after tax.
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The company has achieved a remarkable compounded annual growth rate (CAGR) of 92% in sales and 104% in profit over the past five years.
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KPI Green Energy Ltd has expanded its renewable portfolio significantly, with an installed capacity of over 1.62 gigawatts and a work-in-progress capacity of over 4.64 gigawatts.
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The company successfully listed India's first externally credit-enhanced green bond, raising INR670 crores with a five-year instrument carrying an 8.50% coupon rate.
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KPI Green Energy Ltd has secured several strategic project wins across solar, wind, floating solar, and battery energy storage, enhancing its long-term growth prospects.
Negative Points
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The company's interest cost increased by 130% to INR182 crores, impacting the overall profitability.
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There is a concern about the declining return on equity (ROE), which has dropped from 18%-19% to around 13%-14%, with expectations of further decline before improvement.
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The stock has underperformed due to concerns about the EPS growth lagging behind revenue and profit growth.
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The company faces challenges in maintaining its growth trajectory, with a revised guidance of 40%-50% CAGR, down from previous higher expectations.
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There are ongoing concerns about grid stabilization charges in certain states, which could impact the company's CPP segment.
Q & A Highlights
Q: Can you provide an update on the IPO plans for Sundrop Energy, a subsidiary of KPI Green Energy? A: Sundrop Energy, a subsidiary of KPI Green Energy, reported a top line of INR586 crores with a PAT of INR97 crores. The company plans to file for an IPO this financial year, focusing on the battery energy storage system (BESS) segment.
Q: What is the expected timeline for the breakeven of the IPP segment, and what will be the peak interest burden on the P&L? A: The peak interest cost is expected to be around INR300 crores. The IPP segment is expected to start generating strong cash flows by FY27-28, with the breakeven occurring around six to seven years. The revenue will start coming in phases, reducing the interest burden over time.
Q: What is the current status of the Botswana project, and how will it be funded? A: KPI Green Energy has set up a subsidiary in Botswana, which will be a step-down subsidiary of KPI. The company has completed all necessary groundwork and approvals, and plans to sign PPAs by December 2027. The project will leverage KPI's strong net worth for funding.
Q: How does KPI Green Energy plan to manage the increase in inventory and working capital requirements? A: The company has increased its inventory to ensure timely execution of its substantial order book, which stands at INR5,246 crores for the CPP segment. This strategy is aimed at mitigating risks related to geopolitical conditions and ensuring timely project execution.
Q: What is the growth outlook for KPI Green Energy, and how does it plan to achieve its targets? A: KPI Green Energy aims to grow at a rate of 40% to 50% year-on-year, with a focus on increasing its IPP portfolio to build a stable annuity income stream. The company is on track to achieve its 10-gigawatt target by 2030 and plans to expand into international markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
