Summary
KPI Green Energy Limited - Q3 FY26 Earnings Call Summary Wednesday, January 28, 2026 2:00 P.M.
Event Participants
Executives 5 Dr. Alok Das (Group CEO), Moh. Sohil Yusuf Dabhoya (Whole Time Director), Salim Yahoo (CFO), Siddharth Thakur (EA to CMD), Vinod Jain (President – Investor Relations)
Analysts 11 Abhi Shah, Aman Soni, Anil Sarin, Aniket Panda, Ashish Jindal, Garvit Goyal, Gaurav Sharma, Nupur Gandhi, Paras Karania, Parth Kotak, Ritesh Bhagwati
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue (Q3) | ₹676 crores | +45% YoY; Marks the seventh consecutive quarter of record revenue. |
| Total Revenue (9M) | ₹1,931 crores | +64% YoY; Already exceeded the full-year FY25 revenue of ₹1,752 crores. |
| EBITDA (Q3) | ₹251 crores | +73% YoY; Driven by operational efficiency and favorable project mix. |
| EBITDA (9M) | ₹701 crores | +71% YoY; Growth supported by higher-margin IPP and premium CPP pricing. |
| Profit After Tax (Q3) | ₹126 crores | +48% YoY; Maintained PAT margins around 18-19%. |
| Profit After Tax (9M) | ₹354 crores | +60% YoY; Strong execution across Solar and Hybrid segments. |
| Order Book | ₹6,000+ crores | Significant jump from ₹4,000 crores in Q2; includes 1.96 GW in CPP segment. |
| EPC Order Book | ₹5,500+ crores | Absolute monetary value of the third-party execution pipeline. |
| Debt-Equity Ratio | 1.50:1 | Management considers this optimal for a capex-heavy industry. |
| IPP Capacity | 520 MW | Includes 240 MW Khavda project now energized; 1 GW target by Sept 2026. |
Geographic & Segment Commentary
- Captive Power Producer (CPP): The segment reached a cumulative capacity of 2,572 MW in Q3 FY26. Management charges a premium for CPP due to its extensive land bank and evacuation infrastructure, allowing for rapid execution. The order book grew from 1.60 GW to 1.96 GW during the quarter.
- Independent Power Producer (IPP): Currently contributes ~9% of total revenue with an EBITDA margin of 85-90%. The 240 MW Khavda project faced revenue delays due to GUVNL substation readiness but began injecting power in Q4. Management targets 25-30% revenue contribution from IPP by 2030 to provide annuity-based income.
- International (Botswana): Signed a landmark MOU for 5 GW of renewable capacity. Initial focus is a 500 MW project (₹1,500-1,700 crore cost) to be commissioned within two years. Botswana offers superior solar radiation, high tariffs, and government support for PPAs with neighboring countries.
Company-Specific & Strategic Commentary
- Battery Energy Storage Systems (BESS): Received LOI from GUVNL for a 445 MW/890 MW project with an expected investment of ₹1,000-1,100 crores. Management anticipates a 13-14% IRR, supported by viability gap funding (VGF).
- Subsidiary IPO (Sun Drop Energy): Planned for H1 FY27 to fund the BESS vertical and MSME retail business. KPI Green will maintain a majority stake (>51%), and the entity will continue to be consolidated.
- In-house O&M: Leveraging robotic cleaning and network centers to manage 520 MW of internal assets. Management plans to monetize these capabilities by bidding for third-party O&M contracts as the book scales to over 2 GW.
- New Frontiers: Progressing on a 1 MW green hydrogen prototype and evaluating offshore wind and data center opportunities (24-month execution cycle).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 50% - 60% YoY | Minimum growth target maintained for FY27 based on current order book. |
| IPP Capacity | 1,000 MW by Sept 2026 | Backed by SBI funding; 250 MW currently under energization. |
| Group Vision | 10 GW by 2030 | Management expects to achieve this multi-geography target ahead of the 2030 deadline. |
| IPP Revenue Mix | 25% - 30% by 2030 | Strategic shift to increase share of high-margin annuity income. |
Risks & Constraints
| Risk | Context |
|---|---|
| Input Cost Volatility | Rising silver and panel prices impact margins. Mitigated by price variation clauses in utility tenders and inventory blocking for private CPP orders. |
| Execution Delays | External factors like government substation readiness delayed Khavda revenue. Management is now diversified across states (Odisha, MP) to reduce concentration. |
| Promoter Pledge | Current pledge tied to SBI project funding for the 1 GW IPP. Management targets 0% pledge by March 2027 following project COD and legal releases. |
Q&A Highlights
BESS Profitability and Funding
- Question: What are the investment and IRR expectations for the GUVNL BESS project? (Garvit Goyal)
- Answer: Investment is ₹1,000-1,100 crores for 445 MW/890 MW. Expected IRR is 13-14%. Multiple existing lenders have expressed interest in the financial closure (Salim Yahoo).
Botswana Investment Rationale
- Question: Who will fund the ₹36,000 crore Botswana investment? (Aman Soni)
- Answer: It is an IPP project for KPI Green. The first 500 MW (₹1,500-1,700 cr) is backed by existing equity and interested lenders. Future scaling may involve InvIT structures or strategic investors (Salim Yahoo).
Revenue Recognition for Khavda
- Question: When will the 240 MW Khavda IPP project contribute to revenue? (Waseem Ali)
- Answer: The government substation was energized in December. Revenue will start flowing from Q4 FY26, targeting ~20 crore units per quarter in FY27 (Salim Yahoo).
Margin Sustainability
- Question: Why will blended margins not increase as IPP share grows? (Garvit Goyal)
- Answer: CPP is growing at a faster absolute rate than IPP. While IPP has 90% EBITDA, the massive volume growth in 20%-margin CPP offsets the blended percentage increase (Salim Yahoo).
Key Takeaway
KPI Green Energy delivered a strong Q3 FY26 with a 45% YoY revenue jump to ₹676 crores, marking its seventh consecutive quarter of record growth. The company successfully navigated evacuation delays at its 240 MW Khavda site, with full revenue contribution expected from Q4. Strategically, the firm is pivoting toward complex energy solutions, evidenced by the 445 MW BESS LOI from GUVNL and the massive 5 GW Botswana MOU, which leverages superior solar radiation and higher regional tariffs. With an EPC order book exceeding ₹5,500 crores and a 1 GW IPP target for September 2026, management remains confident in maintaining a 50-60% annual growth trajectory. While input costs and promoter pledges remain points of scrutiny, the aggressive diversification into BESS and international IPP markets positions KPI Green to achieve its 10 GW vision ahead of 2030.
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