KPIGREEN - KPI Green Energy Limited Share Price

Management provided a positive outlook during the earnings call for KPI Green Energy Limited, focusing on a robust growth trajectory in both the operational and financial aspects of the company. For Q3 FY26, the total revenue reached INR 676 crores, reflecting a 45% year-over-year growth. EBITDA surged to INR 251 crores, marking a 73% increase, while profit before tax rose to INR 170 crores (up 48%), and profit after tax was recorded at INR 126 crores, also an increase of 48%.

For the nine-month period ending December 31, 2025, total revenue reached INR 1,931 crores, representing a 64% increase year-over-year, already surpassing last year's annual revenue of INR 1,752 crores. EBITDA for this period was INR 701 crores, a growth of 71%, and profit after tax reached INR 354 crores, up by 60%.

Looking forward, management emphasized the goal of achieving a long-term vision of 10 gigawatts of capacity by 2030, with expectations to reach this target well before the deadline. Specific major forward-looking points include the commissioning of 250 megawatts of the GUVNL solar project, with revenues expected to begin from parts of this project in the following month. Additionally, the company secured substantial contracts, including a 152-megawatt floating solar EPC contract from GSECL and plans for a 445 MW/890 MW standalone BESS project supported by viability gap funding.

KPI Green has also signed an MOU with the Government of Botswana for a significant renewable energy initiative, projecting an initial 500-megawatt project in a couple of years, with expected IRR above 12%. The overall strategy indicates a focus on expanding its order book, currently standing at INR 6,000 crores, and maintains clauses to protect margins despite rising material costs due to price fluctuations.

Q1: Can you provide more color on the LOI from GUVNL for BESS, including investment and expected IRR?

A1: We've received the LOI for the 445 MW/890 MW BESS project and expect an IRR of around 13% to 14%. The total investment for this project is projected to be about INR 1,000 to 1,100 crores. We are finalizing details and anticipate financial closures soon, given strong interest from lenders.

Q2: How will you manage costs in light of rising silver prices affecting solar panels?

A2: We're hedged against price fluctuations because contracts include clauses allowing tariff adjustments for raw material price increases. Also, we've blocked material costs by securing contracts early, ensuring margins remain stable throughout our projects.

Q3: Could you detail the investment for the MOU with Botswana? What are the anticipated revenues?

A3: The MOU involves a total investment of INR 36,000 crores, but our immediate focus is on a 500 MW project costing INR 1,500 to 1,700 crores. We're aiming for an IRR above 12%, likely higher than the IRR from our GUVNL project, with power sold to Botswana and neighboring countries.

Q4: What's the current status of MOUs related to green hydrogen and ammonia?

A4: Developing hydrogen is complex and will take time. While we've initiated work in Gujarat, these MOUs are at various stages. Our focus remains on establishing projects in Gujarat, which will be part of the broader hydrogen initiative over the long term.

Q5: What about your Sundrop IPO and expected timeline?

A5: We expect the Sundrop IPO in the first half of next financial year. This aligns with anticipated demand in the battery energy storage system market, and the IPO will facilitate funding for this new venture.

Q6: Can you confirm the target for the 1-gigawatt IPP commissioning by March '26?

A6: Yes, we are on track to complete 1 gigawatt of capacity progressively, having already charged around 35 MW. We are confident in achieving targeted milestones within the expected timeline.

Q7: What can we expect for your IPP generation capacity and revenue over the next few years?

A7: Our current IPP capacity is about 500 MW, with expected quarterly generation of around 20 crore units. As we advance, we aim for higher capacities; thus, revenue from IPP will continue expanding steadily over the next 25 years due to our long-term PPAs.

Q8: How would you respond to shareholder concerns about leveraging and long-term growth?

A8: Our debt equity ratio stands at 1.50:1, which is low by industry standards. While external economic factors influence share performance, we remain focused on generating consistent results and maintaining financial stability through strategic growth and sound management practices.

Q9: Describe the expected impact of the 500 MW Botswana project on your overall growth.

A9: The Botswana project underscores our strategy in international markets. The supportive government and existing infrastructure allow for quicker implementation, facilitating our revenue generation from renewable energy exports to neighboring countries.

Q10: Can you elaborate on your plans to pursue markets beyond India post-2030?

A10: Post-2030, we see significant opportunities in Africa, especially in solar projects due to favorable conditions. We aim for a minimum of 25% to 30% revenue generation from the IPP segment, reinforcing our commitment to sustainable growth and exploring new markets while expanding our current capabilities.