Summary
K.P. Energy Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 28, 2026, 04:30 P.M.
Event Participants
Executives 5 Affan Faruk Patel, Alok Das, Salim Yahoo, Shabana Bajari, Vinod Jain
Analysts 6 Aniket Panda, Ashish Jindal, Darshil Pandya, Harsh Patel, Parth Kotak, Shikha Mehta
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue (Consolidated) | ₹347.6 crores | +63% YoY; Highest ever quarterly revenue for a Q3 period. |
| EBITDA (Consolidated) | ₹77.2 crores | +75% YoY; Reflects operational improvements and consistent execution. |
| Profit Before Tax (PBT) | ₹57.5 crores | +69% YoY; Driven by strong top-line growth and disciplined cost management. |
| Profit After Tax (PAT) | ₹41.3 crores | +57% YoY; 9M FY26 PAT reached ₹102.7 crores (+48% YoY). |
| Basic EPS | ₹6.18 | +56% YoY from ₹3.96; 9M FY26 EPS stands at ₹15.36. |
| Order Book | 2.18 gigawatts | Valued at ₹2,600+ crores; Includes approx. 70% from KPI Green and 30% external. |
| IPP Portfolio | 48.5 megawatts | Combined wind and solar; Targeting 100 MW by FY 2027-28. |
| O&M Portfolio | 644+ megawatts | Revenue generated via end-to-end data-driven diagnostics and BOP maintenance. |
| IPP Generation | 2.21 crore units | Significant increase from 0.73 crore units in Q3 FY25. |
Geographic & Segment Commentary
- EPC Business: Operations are predominantly Gujarat-based, focusing on wind and hybrid projects. The segment contributed ₹328 crores to the current quarter’s revenue, with a strategic shift toward larger turbine platforms (4MW and 5MW class).
- Independent Power Producer (IPP): Currently operates 48.5 MW with a roadmap to reach 100 MW. Management indicated that new IPP projects are in the final stages of materialization to support long-term recurring revenue.
- Operations & Maintenance (O&M): The portfolio has crossed 644 MW, offering end-to-end support for Balance of Plant (BOP) components. This segment provides stable, high-margin annuity income as the installed base grows.
Company-Specific & Strategic Commentary
- Integrated Service Model: KP Energy differentiates itself as the only player providing end-to-end solutions from land identification and transmission infrastructure to O&M. This model reduces execution risk and shortens project timelines.
- Leadership & Governance: The company has strengthened its management by onboarding 28 IIM Ahmedabad alumni across various leadership roles to improve financial discipline and scalability.
- Resource Management: Management maintains a low dependency on external infrastructure by building in-house expertise in EHV (Extra High Voltage) lines and substations.
- Strategic Hedging: To protect margins against raw material volatility, the company naturally hedges by booking turbine prices at the time of order and stocking inventory for evacuation lines.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 50% - 60% YoY for FY26 | Based on a solid ₹2,600 crore order book and pending high-value orders. |
| Order Book Execution | 12 - 18 months | Current 2.18 GW pipeline to be executed over the next year and a half. |
| IPP Capacity | 100 MW by FY 2027-28 | Focus on expanding the internal power generation portfolio to increase margins. |
| New Order Inflow | ~500 MW - 800 MW (Pipeline) | Expected closure of major hybrid and BOS projects within Q4 FY26. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory & Policy | Delays in Gujarat-based projects due to connectivity procedures and evolving regulatory frameworks for offshore wind. |
| Client Concentration | Approximately 70% of the current order book value is derived from the parent/group entity, KPI Green Energy. |
| Execution Timelines | Offshore wind projects typically involve long gestation periods of three to five years before contributing to revenue. |
Q&A Highlights
Order Pipeline & New Bookings
- Question: Why hasn’t the anticipated order flow materialized in the last two quarters? (Darshil Pandya)
- Answer: Delays were due to Gujarat policy and regulatory framework changes regarding connectivity. However, the company is at the final stages of closing major hybrid and BOS orders, expected to be announced in Q4 FY26 (Alok Das).
Order Book Valuation
- Question: What is the rupee value of the 2.18 GW order book? (Parth Kotak)
- Answer: The value is roughly ₹2,600+ crores. Realization per megawatt varies, but a typical wind project including Balance of Plant (BOP) and turbines ranges from ₹7.5 to ₹8 crores per megawatt (Shabana Bajari).
Group Synergy & Merger
- Question: Would merging KPI Green and KP Energy reduce related party transactions and improve value? (Ashish Jindal)
- Answer: Management views wind and solar as distinct verticals requiring specialized teams. While KPI focuses on solar/IPP, KP Energy provides the wind expertise. There are no current plans to merge (Salim Yahoo).
Financial Position & Dilution
- Question: Is equity dilution required to meet the 50%-60% growth target? (Aniket Panda)
- Answer: Internal accruals and cash flows are currently sufficient. Recent warrant issues provided necessary equity, and no further dilution is planned for the near term (Salim Yahoo).
Key Takeaway
KP Energy delivered a robust performance in Q3 FY26, with consolidated revenue growing 63% YoY to ₹347.6 crores and PAT increasing 57% to ₹41.3 crores. The company is successfully leveraging its integrated “land-to-grid” execution model, currently managing a massive 2.18 GW order book valued at over ₹2,600 crores. Strategic focus remains on executing the 70% of the order book linked to group entity KPI Green while aggressive bidding for non-group hybrid and BOS projects (estimated 500-800 MW pipeline) continues. While regulatory hurdles in Gujarat have slightly delayed order announcements, management expects a significant “outpouring” of new contracts in Q4 FY26. The company remains well-positioned to meet its 50-60% annual growth guidance, backed by a maturing O&M portfolio and a clear roadmap to double its IPP capacity to 100 MW by 2028.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: