GREENPOWER - Orient Green

📊 NSE: GREENPOWER 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 10:46

💰 Financial Performance

Revenue Growth by Segment

Generation revenue for Q3 and Q4 FY26 is expected to be similar to the previous year, plus or minus a few percent. Wind generation typically contributes 70% of annual revenue in Q1 and Q2, with the remaining 25-30% in Q3 and Q4.

Geographic Revenue Split

Operations are concentrated in South India, specifically Tamil Nadu and Andhra Pradesh, where the company's 402.3 MW wind portfolio is located. International subsidiaries in the Netherlands, Macedonia, and Croatia suggest a minor geographic split in asset holding.

Profitability Margins

Net profit margins have improved significantly due to a 20% reduction in finance costs. Standalone profit from continuing operations reached INR 8.46 Cr in FY25, compared to a loss of INR 5.69 Cr in FY24, marking a turnaround in core profitability.

EBITDA Margin

EBITDA remains stable as operating costs are fixed; however, net margins are expanding as interest costs decline. 60% of the recent profitability improvement is attributed to better wind conditions and 40% to operational efficiency gains.

Capital Expenditure

The company is investing INR 25 Cr to INR 30 Cr of internal generation into new capacity. This includes a 7 MW solar project due by December 2025 and an 18 MW solar project scheduled for completion by June 2026.

Credit Rating & Borrowing

Beta Wind Farm's rating was upgraded to IVR BBB/Stable, triggering a 25 basis point (0.25%) reduction in interest rates from IREDA. Total consolidated debt stands at approximately INR 525 Cr.

⚙️ Operational Drivers

Raw Materials

Natural wind and solar energy are the primary 'raw materials,' representing 0% of direct material cost. Operational costs are primarily fixed O&M (Operations and Maintenance) expenses.

Import Sources

Wind and solar resources are sourced locally at plant sites in Tamil Nadu and Andhra Pradesh, India.

Key Suppliers

Equipment and maintenance services are provided by specialized renewable energy vendors; component upgradation in Andhra Pradesh has specifically improved machine availability.

Capacity Expansion

Current wind capacity is 382 MW. Expansion includes 25 MW of solar power (7 MW by Dec 2025 and 18 MW by June 2026) to create a hybrid wind-solar portfolio.

Raw Material Costs

Direct raw material costs are negligible; however, operational efficiency improved PLF from 24.5% to 28% in Q2 FY26, a 14.3% increase in output efficiency.

Manufacturing Efficiency

Plant Load Factor (PLF) for the major asset (Beta) improved to 28% in Q2 FY26 from 24.5% YoY, driven by component upgrades and better wind availability.

Logistics & Distribution

Power is distributed through state-owned grids under long-term Power Purchase Agreements (PPAs) and to C&I customers.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

Growth will be achieved through a 25 MW solar expansion (6.5% capacity increase), brownfield acquisitions of PPA-based projects, and a 20% reduction in finance costs through deleveraging and credit rating upgrades.

Products & Services

Wind power, Solar power, and Renewable Energy Certificates (RECs).

Brand Portfolio

Orient Green Power, Beta Wind Farm, Bharath Wind Farm, Gamma Green Power.

New Products/Services

Solar power generation (25 MW) and hybrid wind-solar supply portfolios for C&I customers, expected to contribute to revenue starting Q3 FY26.

Market Expansion

Expansion into the Commercial & Industrial (C&I) space and PPA-based project acquisitions to diversify away from state utility dependency.

Market Share & Ranking

One of the leading renewable power generating companies in South India with a 17-year track record.

Strategic Alliances

Partnership with IREDA for long-term project financing and state utilities for long-term PPAs.

🌍 External Factors

Industry Trends

The industry is shifting toward hybrid wind-solar models to provide balanced 24/7 power; the company is positioning itself by adding 25 MW of solar to its 382 MW wind base.

Competitive Landscape

Intense competition from larger renewable players and exposure to regulatory changes in tariff structures and wind policies.

Competitive Moat

Moat is built on a 17-year operational track record and established grid connectivity in high-wind states; sustainability is supported by long-term PPAs and GBI incentives for 75.6 MW.

Macro Economic Sensitivity

Highly sensitive to interest rates; a 25 bps reduction on INR 525 Cr debt significantly impacts consolidated net profit.

Consumer Behavior

C&I customers are increasingly demanding hybrid (wind + solar) portfolios to meet green energy targets and ensure stable supply.

Geopolitical Risks

Minimal, as operations are primarily domestic, though international subsidiaries face local regulatory risks in Croatia and Macedonia.

⚖️ Regulatory & Governance

Industry Regulations

Subject to state wind policies and GBI (Generation Based Incentive) schemes which provide 50 paise per unit for 75.6 MW of assets.

Environmental Compliance

Fully compliant with renewable energy standards; 133.3 MW of assets are registered under the REC mechanism.

Taxation Policy Impact

The company is currently exempt from Corporate Social Responsibility (CSR) expenditure due to the adjustment of losses from earlier years.

Legal Contingencies

The company reported a loss of INR 30 Cr from discontinued operations in FY25; standalone financial statements reflect ongoing compliance with Sections 185 and 186 of the Companies Act.

⚠️ Risk Analysis

Key Uncertainties

Inherent wind variability (60% impact on profit variance) and regulatory changes in tariff structures pose the highest risks to sustained profitability.

Geographic Concentration Risk

High concentration in South India (Tamil Nadu and Andhra Pradesh), making the company vulnerable to regional wind patterns and state-specific policy shifts.