KPIGREEN - KPI Green Energy

📊 NSE: KPIGREEN 🏢 Construction 📅 Last Updated: 12/14/2025 9:02

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 76.5% YoY to INR 1,255.26 Cr in H1 FY26. The IPP segment provides high-margin annuity inflows with 90% EBITDA, while the CPP segment operates at 18-20% EBITDA margins.

Geographic Revenue Split

Revenue is primarily concentrated in Gujarat, India, with major solar sites in Bhalod, Bharuch, Sudi, Vilayat, and Jarsad. A significant MOU of INR 8,000 Cr was signed with the Government of Gujarat.

Profitability Margins

Profit After Tax (PAT) grew 67.7% YoY to INR 228 Cr in H1 FY26. Management expects PAT margins to potentially cross 20% as the high-margin IPP segment expands.

EBITDA Margin

Combined EBITDA margin stands at 32-33%. EBITDA increased 68% YoY to INR 449.3 Cr in H1 FY26, driven by operating leverage and disciplined cost control.

Capital Expenditure

Cash flow from investing activities was INR -1,017 Cr in H1 FY26, compared to INR -286 Cr in H1 FY25, reflecting aggressive asset ownership and project construction.

Credit Rating & Borrowing

ICRA reaffirmed an 'A (Positive)' rating for the company and 'AA+(CE)' for its Green Bond issue. Liquidity is considered adequate with cash and equivalents of INR 829 Cr as of Sept 30, 2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Solar Panels (purchased directly), MMS (Module Mounting Structures), PEB (Pre-Engineered Buildings), and galvanized steel structures.

Import Sources

Solar panels are purchased directly by the company, while steel structures are sourced from group flagship arm KP Green Engineering's upcoming plant at Matar, Gujarat.

Key Suppliers

KP Green Engineering (for structures), KP Energy (for windmill expertise and execution), and Bondada (subcontractor for specific execution orders).

Capacity Expansion

Current installed capacity is 1.07+ GW as of H1 FY26, with a planned expansion to 10+ GW by 2030. Orders in hand stand at 3.08+ GW.

Raw Material Costs

Raw material costs are managed through direct procurement of panels and arm's length transactions with group companies for structures to maintain 18-20% EBITDA in CPP.

Manufacturing Efficiency

The company operates 123 total sites and has a power evacuation capacity of 3.46+ GW, significantly exceeding current installed capacity to allow for rapid scaling.

📈 Strategic Growth

Expected Growth Rate

76.50%

Growth Strategy

Growth will be achieved by scaling to 10+ GW by 2030, expanding the IPP segment for stable annuity inflows, and entering emerging sectors like BESS, Green Hydrogen, and Green Ammonia.

Products & Services

Solar power, Wind power, Hybrid renewable energy, and EPC (Engineering, Procurement, and Construction) services for captive power plants.

Brand Portfolio

KP Group, KPI Green Energy.

New Products/Services

New segments include BESS (Battery Energy Storage Systems), Green Hydrogen, and Green Ammonia, which are currently being incubated in separate private group companies.

Market Expansion

Expansion into emerging sectors such as data centers, AI, and life sciences, alongside geographic expansion within India supported by a 6,680+ acre land bank.

Strategic Alliances

MOU with the Government of Gujarat for INR 8,000 Cr and collaborations with marquee investors like BlackRock, Vanguard, and Goldman Sachs.

🌍 External Factors

Industry Trends

The industry is shifting toward Hybrid (Solar-Wind) projects and BESS. KPI is positioning itself with a 10+ GW target and entry into Green Hydrogen to lead this transition.

Competitive Landscape

Competes with large conglomerates like Adani and Reliance in the renewable energy space, utilizing a brand-led 'KP Group' strategy.

Competitive Moat

Moat includes a massive 6,680+ acre land bank, 3.46+ GW evacuation infrastructure, and the 'KP' brand trademark. These are sustainable due to high entry barriers in power evacuation and land aggregation.

Macro Economic Sensitivity

Highly sensitive to interest rate movements due to the capital-intensive nature of RE projects and fixed-tariff PPAs.

Consumer Behavior

Increasing corporate demand for 'Green' power to meet ESG goals is driving the 18-20% margin CPP segment.

Geopolitical Risks

Social risks manifest in land acquisition disagreements; environmental risks are low as the company produces clean power reducing greenhouse gases.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by long-tenor PPAs (Power Purchase Agreements) and renewable energy permits. Compliance with SEBI Listing Regulations is maintained.

Environmental Compliance

Operational units are compliant with all environmental regulations and statutory permits, exhibiting low environmental risk.

Taxation Policy Impact

Utilizes accelerated depreciation and tax efficiency strategies associated with renewable asset ownership to improve first-year cash flows.

Legal Contingencies

No specific pending court case values in INR are disclosed; however, the company maintains a comprehensive internal control framework audited for effectiveness.