GK Energy says Rs 3,000 crore FY27 revenue hinges on PM-KUSUM

GK Energy Limited said it is on track for Rs 3,000 crore of FY27 revenue only if PM-KUSUM rolls out and starts well in Q3, with the scheme’s benefits expected from Q4 onward. Without PM-KUSUM, management said GK Energy can still grow close to 40% in the current year while maintaining a two-digit profit after tax, or PAT, margin.

Can GK Energy reach Rs 3,000 crore revenue in FY27?

Yes, GK Energy said Rs 3,000 crore of FY27 revenue is achievable if PM-KUSUM rolls out on time and starts well. In response to an analyst’s question on whether FY26 revenue could be doubled to Rs 3,000 crore in FY27, Chairman and Managing Director Gopal Kabra said there was “no question at all” that GK Energy was on track for that number if the scheme was in place. The statement was conditional rather than a standalone forecast.

The timing is central to management’s explanation: PM-KUSUM is expected to arrive in Q3, while commercial benefits are expected from Q4 onward. The FY27 outcome therefore depends not only on a scheme announcement but also on it progressing into operational activity, including the solar-pump cycle of survey, installation, dispatch, reporting, inspection and payment.

GK Energy did not provide a numerical FY28 revenue target during the call. Kabra said the company would be able to give such an indication when PM-KUSUM was closer to maturity. That distinguishes the Rs 3,000 crore figure, which depends on policy-led market acceleration, from the close-to-40% growth outlook that management said could be delivered without the scheme.

When does GK Energy expect PM-KUSUM to affect revenue?

GK Energy expects PM-KUSUM to roll out in Q3 and to contribute from Q4 onward. Kabra said he had given the same Q3 timing indication for the previous six months, including during the prior financial year’s results and the Q1 results. He therefore rejected the view that the scheme was delayed relative to GK Energy’s own timetable.

Management said technical discussions were continuing on possible product upgrades because reports underlying the scheme had been available for more than five years. GK Energy said it had provided feedback as an implementer and expected suggested changes to be incorporated. The call did not specify which changes would be accepted, the exact Q3 announcement date, or the number of installations that an updated scheme could support.

The policy dependence is consequently two-stage. PM-KUSUM must first be rolled out in Q3 and then begin sufficiently well for Q4 installation and execution activity to support the FY27 target. GK Energy’s comments leave unresolved the final scheme design, state-level implementation and the pace of beneficiary vendor selection after empanelment.

What growth does GK Energy expect without PM-KUSUM?

GK Energy said it can grow close to 40% in the current year even without PM-KUSUM. Management did not state the revenue base to which the growth rate applies in this exchange, but presented it as the outlook if the scheme did not arrive. Kabra also said GK Energy intends to maintain a two-digit PAT margin.

Solar rooftop is one of the businesses cited alongside solar pumps. An analyst referred to an institutional rooftop order of about Rs 450 crore, while GK Energy said it was seeking repeatable opportunities and developing a retail rooftop channel. Management said rooftop margins would be slightly lower than those in pumping, but not by much, and put rooftop cash-in and cash-out requirements at 45 to 60 days.

GK Energy is also developing battery energy storage systems, or BESS, under a model in which it plans to own BESS plants, receive power from distribution companies, or DISCOMs, and sell power back to DISCOMs. Management said the proposed model would provide fixed revenue for 15 years from installation. It did not disclose a revenue or margin contribution from BESS, so the business cannot be used to quantify the close-to-40% growth outlook.

How is GK Energy managing supply and working capital for growth?

GK Energy said it had confirmative agreements for 875 megawatts of module and cell supply in the current year, following purchases of close to 300 megawatts from two cell manufacturers last year. Management said it does not intend to backward integrate into manufacturing, preferring an asset-light model and supplier relationships spread across states to reduce product transportation distances.

The supply planning addresses domestic-content-requirement, or DCR, cells and modules, which an analyst identified as an industry procurement issue. Kabra said GK Energy did not expect a shortage of DCR cells or modules, citing the 875-megawatt arrangements. He also said close to 40 gigawatts of cell capacity had been installed, with another 60 to 70 gigawatts in process, and expected cells to become a commodity in one to one-and-a-half years.

Working capital remains linked to the solar-pump project cycle. GK Energy said it received Rs 375 crore in October after the first half ended, reducing its calculated receivable days to 128. Management expects year-end receivables of 120 to 150 days at most, compared with roughly 200 days visible at the first-half end before that collection was included.

GK Energy said solar-pump payments are received from government schemes rather than farmers, while farmers deposit their own share upfront before vendor selection. Management described receivable days as a pan-India average shaped by the sequence of survey, installation, dispatch, reporting and inspection. By comparison, it said rooftop operations require 45 to 60 days of cash flow, materially shorter than the 120-to-150-day solar-pump receivable expectation.

Why is GK Energy expanding states selectively?

GK Energy said it is present in only six to seven states and intends to expand in a controlled manner rather than seek presence in 20 states. Management said the geographies it targets represent more than 70% of the market it seeks over the medium term. It said expanding into another 15 states to address the remaining 30% could add an unwanted burden to the balance sheet.

Management said GK Energy may eventually add one or two states once it is confident about building local presence and service capability. It cited an established base in Haryana, Rajasthan and Uttar Pradesh, and said it had already executed a few thousand pumps in Madhya Pradesh. This approach contrasts with broad geographic expansion, but management did not identify the next state it expects to enter.

GK Energy described solar-pump competition as an empanelment and beneficiary-selection process rather than a conventional single order award. Once vendors are empanelled, management said beneficiaries select them based on brand, service and network. That structure means any PM-KUSUM-led acceleration would depend on both state market access and the ability to convert beneficiary selections into completed installations.

Conclusion

GK Energy’s Rs 3,000 crore FY27 ambition is a conditional policy-and-execution outcome rather than an unconditional revenue forecast. Management says it can grow close to 40% without PM-KUSUM, supported by solar pumps, rooftop activity and planned BESS operations, but the larger target requires a Q3 rollout followed by Q4 execution under the scheme.

The next event to watch is whether PM-KUSUM’s technical discussions result in a Q3 rollout and whether activity begins in Q4 as management expects. Investors can also monitor whether receivable days move toward management’s 120-to-150-day year-end range after the Rs 375 crore October collection, and whether the 875-megawatt supply arrangements support execution without DCR cell or module constraints.