GK Energy Limited: Powering Growth with Solar Pumps and Strategic Expansion in H1 FY26

GK Energy Limited, a prominent player in India's burgeoning solar energy sector, has reported a robust financial and operational performance for the first half of Financial Year 2026. The company, known for its pure-play EPC services in solar-powered agricultural water pump systems, showcased significant growth, driven by strong execution and strategic initiatives. For H1 FY26, GK Energy's consolidated revenue from operations surged to 728.83 Crore, marking an impressive 51.75% year-on-year increase from 419.66 Crore in H1 FY25. This strong top-line growth translated into substantial profitability, with EBITDA reaching 132.04 Crore, a 65.07% rise from 79.99 Crore in the previous year's first half. The EBITDA margin expanded to 20.20% from 18.96%. Profit After Tax (PAT) also saw a remarkable 63.26% year-on-year growth, climbing to 83.40 Crore from 51.08 Crore, with the PAT margin improving to 12.76% from 12.11%. These figures underscore the company's operational efficiency and strong market position.

The core of GK Energy's business, EPC services for solar pumps, continues to be the primary growth engine. The company installed 24,502 solar agri-pumps in H1 FY26, a substantial 50.77% increase compared to 16,251 pumps in H1 FY25. This accelerated activity was particularly strong in key states like Maharashtra and Rajasthan, benefiting from government initiatives such as the PM-KUSUM scheme and the Magel Tyala Saur Krushi Pump Yojana. Beyond solar pumps, the rooftop solar business is steadily emerging as a significant growth avenue, with 1.24 megawatts of rooftop capacity installed in H1 FY26. The company's asset-light business model, which involves sourcing components under its 'GK Energy' brand and flexible arrangements with installation providers, has been instrumental in achieving rapid scalability and maintaining service reliability.

Strategic Vision and Operational Excellence

GK Energy's management articulated a clear strategic vision, focusing on both organic growth and backward integration. The company is in the process of setting up a 1 gigawatt solar panel manufacturing facility in Solapur, Maharashtra, with land already acquired and work initiated. This move is aimed at ensuring self-consumption of solar panels, thereby mitigating supply chain constraints for DCR SPV modules and protecting margins. The facility is expected to be operational by September 2026 or earlier. Furthermore, GK Energy is proactively expanding its geographical footprint into high-potential states like Madhya Pradesh, Rajasthan, and Uttar Pradesh, where strong allocation pipelines under government schemes are anticipated. This expansion strategy is designed to diversify revenue streams and capitalize on the growing demand for solar solutions across India.

Addressing Challenges and Future Outlook

While celebrating strong growth, management also transparently addressed operational challenges. They acknowledged a delay in receivables, which extended to 135-192 days between September 2024 and September 2025. This was attributed to factors such as an aggressive monsoon, ongoing software integration, and the company's focus on its IPO. However, management assured that these issues are short-term and have largely been addressed, with expectations of normalizing receivables by Q3 FY26. The inventory turnover days also increased from 31 to 55 in H1 FY26, a planned increase to support higher installation volumes in the upcoming quarters. The company's total order book stood at a healthy 863.98 Crore as of September 30, 2025, comprising 846.15 Crore for solar pump systems and 17.83 Crore for rooftop solar projects, providing strong revenue visibility.

Looking ahead, GK Energy is optimistic about its future performance. Management guided for 70,000 to 75,000 pump installations for the full FY26, with a significant portion expected in H2, which is typically a stronger season. They also plan to increase operational capacity by 25-30% by April to meet growing demand. EBITDA margins are expected to remain stable or improve, supported by the asset-light model and backward integration. The company is actively participating in new tenders, including an empanelment for 1 lakh pumps under the Magel Tyala scheme, and anticipates further orders from PM-KUSUM. With a clear strategy, robust execution capabilities, and a focus on sustainable growth, GK Energy Limited is well-positioned to continue its upward trajectory in India's dynamic renewable energy landscape.