KPI Green Energy Powers Ahead with Record H1 FY26 Performance and Strategic Expansion

KPI Green Energy Limited, a leading player in India's renewable energy sector, has reported an exceptional financial performance for the first half of fiscal year 2026 (H1 FY26), demonstrating robust growth and strategic foresight. The company achieved its sixth consecutive quarter of record revenue and profitability, underscoring the effectiveness of its business model and execution capabilities. For H1 FY26, KPI Green Energy posted a total revenue of ₹1,255 Crore, a significant 77% year-on-year increase from ₹711 Crore in H1 FY25. This impressive top-line growth was complemented by a 68% rise in EBITDA to ₹449 Crore and a 68% surge in Profit After Tax (PAT) to ₹228 Crore, compared to ₹267 Crore and ₹136 Crore respectively in the previous year's corresponding period.

The company's performance was driven by strong contributions from both its Independent Power Producer (IPP) and Captive Power Producer (CPP) segments. The IPP segment accounted for 9% of the total revenue, generating ₹112.95 Crore, while the CPP segment contributed a substantial 91%, amounting to ₹1142.05 Crore. This balanced growth across segments highlights KPI Green Energy's diversified approach to the renewable energy market. The company's installed capacity reached 1.07 GW by H1 FY26, with orders in hand for 3.08 GW, indicating a robust pipeline for future growth.

Strategic Milestones and Future Growth Drivers

KPI Green Energy has been proactive in securing its future growth through several strategic initiatives. A significant milestone was the issuance of India's first externally credit-enhanced green bond, raising ₹670 Crore. This bond, backed by a 65% partial guarantee from GuarantCo and rated AA+(CE) by CRISIL and ICRA, reinforces investor confidence and strengthens the company's capital structure. Furthermore, a ₹3,200 Crore term loan sanction from State Bank of India's Project Finance Unit will support the development of 250 MW solar and 370 MW hybrid projects under a long-term GUVNL PPA.

In a move to diversify revenue streams and enhance market participation, KPI Green Energy secured a Category A Power Trading Licence from the Gujarat Electricity Regulatory Commission (GERC) on October 10, 2025. This license enables the company to trade electricity directly, optimizing power sales and tapping into open-access and energy trading opportunities. The company also signed a Memorandum of Understanding (MoU) with the Government of Gujarat on October 9, 2025, to invest ₹8,000 Crore in developing hydrogen and EV fuel stations across the state, projecting approximately 1,000 new employment opportunities.

Expanding its global footprint and technological capabilities, KPI Green Energy announced a global alliance with F Plus Healthcare Technologies on October 29, 2025. This partnership aims to develop green-energized modular data centers, life sciences, and advanced technology facilities, with initial deployments planned in India (Gujarat, Rajasthan, Andhra Pradesh) and future expansion across Asia, the Middle East, GCC, and Africa. The company also received Letters of Award (LOAs) from SJVN Limited on October 17, 2025, for a 200 MW (AC) Solar EPC & O&M Project valued at ₹696.50 Crore, further solidifying its presence in the Khavda Renewable Energy Park.

Addressing Investor Concerns and Outlook

During the recent earnings call, management transparently addressed investor queries regarding EBITDA margin fluctuations, EPS growth alignment with share price, and the status of promoter share pledges. They clarified that variations in EBITDA are primarily due to the nature of sales booking and seasonal factors, with expectations of improvement as new IPP projects become operational. The company reiterated its commitment to releasing promoter share pledges by March 2027, backed by terms in its SBI sanction letter. Concerns about related-party transactions were acknowledged, with a commitment to provide more granular disclosures in future presentations.

KPI Green Energy's management expressed confidence in achieving its ambitious target of 10 GW installed capacity by 2030, noting that the company is well ahead of its 2025 target. They anticipate IPP revenue to exceed ₹1,000 Crore with a 90% EBITDA margin once the new 1.2 GW IPP projects are fully installed. The company's robust land bank of 6,680+ acres and power evacuation capacity of 3,464 MW provide a strong foundation for sustained growth. By focusing on strategic partnerships, technological innovation, and disciplined execution, KPI Green Energy is well-positioned to capitalize on India's green energy transition and expand its leadership in the renewable power market.