German Green Steel keeps Bharuch project in CWIP at ₹71.1132 crore

German Green Steel and Power Limited, referred to here as German Green Steel, kept ₹71.1132 crore spent on its 9 MW hybrid wind-solar project at Bharuch, Gujarat, in capital work-in-progress at March 31, 2026. German Green Steel said the project could not be capitalised because it had not received the requisite commissioning approval from the competent authority.

Why is German Green Steel's Bharuch project still in CWIP?

German Green Steel's Bharuch project remains in capital work-in-progress, or CWIP, because the requisite approval for commissioning was outstanding at March 31, 2026. CWIP is the accounting classification for expenditure on assets that are under construction or otherwise not yet transferred to property, plant and equipment, or PPE. German Green Steel specifically identified the asset as a 9 MW hybrid wind-solar power project in Bharuch, Gujarat.

German Green Steel reported ₹71.1132 crore of expenditure incurred by the parent company for developing the Bharuch project at March 31, 2026. The disclosure does not identify a construction cost overrun, a missed original completion timeline or a temporary suspension as the reason for continued CWIP classification. Instead, it identifies the pending approval from the competent authority as the condition preventing capitalisation into PPE.

German Green Steel also stated that no CWIP project was overdue against its original planned completion timeline at March 31, 2026, March 31, 2025 or March 31, 2024. It further reported no project for which estimated cost had exceeded the original planned cost in those three reporting periods. Those statements distinguish the disclosed approval dependency from the schedule's separate tests for timing and cost exceptions.

How does the Bharuch balance compare with German Green Steel's total CWIP?

German Green Steel reported consolidated CWIP of ₹160.6548 crore at March 31, 2026, compared with ₹162.2155 crore at March 31, 2025 and ₹54.0106 crore at March 31, 2024. The FY2026 CWIP balance was ₹1.5607 crore lower than a year earlier, after the group had added ₹108.2049 crore to CWIP between March 31, 2024 and March 31, 2025.

The Bharuch disclosure is not fully comparable with the reported consolidated CWIP totals because it identifies expenditure incurred by the parent company, while the CWIP table reports the group's balance. The disclosed Bharuch amounts were ₹71.1132 crore at March 31, 2026, ₹82.3133 crore at March 31, 2025 and ₹91.3716 crore at March 31, 2024. In particular, the March 31, 2024 Bharuch amount exceeds the group's ₹54.0106 crore CWIP total, so the supplied information does not support a reliable multi-year concentration calculation.

The FY2026 figures nevertheless show that the Bharuch project was a substantial individually disclosed construction-stage balance within a group CWIP total of ₹160.6548 crore. Its continued classification depends on receipt of the commissioning approval, rather than on an announced revision to its cost estimate or original timetable. German Green Steel did not disclose an approval deadline, a revised commissioning date or a final project cost for Bharuch.

What does German Green Steel's CWIP ageing show?

German Green Steel classified all ₹160.6548 crore of CWIP at March 31, 2026 as projects in progress and reported no projects as temporarily suspended. The ageing schedule shows ₹122.3936 crore in the less-than-one-year band, ₹26.8906 crore in the one-to-two-years band and ₹11.3716 crore in the two-to-three-years band. No CWIP was placed in the more-than-three-years category.

The age profile became older during FY2026. At March 31, 2025, the group reported ₹138.8378 crore of projects in progress that were less than one year old and ₹23.3777 crore that were one to two years old, with no amount in the two-to-three-years band. By March 31, 2026, a ₹11.3716 crore balance had entered the two-to-three-years category, while the less-than-one-year category was lower.

German Green Steel's FY2026 schedule contains a minor arithmetic inconsistency: the individual projects-in-progress bands total ₹160.6558 crore, whereas the reported CWIP total and total row are ₹160.6548 crore. The difference is ₹0.001 crore, or ₹10,000. The Bharuch project is not separately allocated to an ageing band, so the disclosure does not establish its age category or link its pending approval to a particular ageing balance.

What other construction and power-asset changes occurred in FY2026?

German Green Steel disclosed that it commissioned a 16.2 MW Hydro Power Plant described as Solar & Wind during the year ended March 31, 2026. That plant's stated capacity was 7.2 MW greater than the 9 MW Bharuch hybrid project. The same disclosure therefore records two different outcomes in FY2026: commissioning of the 16.2 MW plant and continued CWIP treatment for Bharuch pending approval.

Gross tangible PPE increased to ₹555.3479 crore at March 31, 2026 from ₹393.1268 crore at March 31, 2025. Additions during FY2026 were ₹162.2211 crore, comprising ₹20.6617 crore of land, ₹12.6814 crore of buildings, ₹125.9362 crore of plant and machinery, and smaller additions in furniture, office equipment and vehicles. The Bharuch project was excluded from this PPE transition because German Green Steel said it had not been capitalised.

Net tangible PPE rose to ₹488.2927 crore at March 31, 2026 from ₹345.6298 crore at March 31, 2025, while accumulated depreciation reached ₹67.0552 crore from ₹47.497 crore. German Green Steel recorded ₹19.5582 crore of tangible-PPE depreciation in FY2026, compared with ₹14.6018 crore in FY2025 and ₹9.5595 crore in FY2024. The company did not disclose a depreciation rate, useful life or prospective depreciation charge for the Bharuch project.

How were borrowing costs treated while projects remained under construction?

German Green Steel capitalised ₹7.4467 crore of borrowing costs in FY2026, compared with ₹6.9657 crore in FY2025 and ₹61.15 lakh in FY2024. The average rate used to determine eligible borrowing costs was 11%, which German Green Steel described as the effective interest rate of the specific borrowing. The disclosure does not assign any part of the FY2026 capitalised borrowing cost to the Bharuch project.

German Green Steel said no borrowing costs were capitalised on other PPE under construction. This means the note identifies an aggregate CWIP-related borrowing-cost amount but does not provide a project-by-project allocation, including for the ₹71.1132 crore Bharuch expenditure. A later transfer of Bharuch from CWIP to PPE would require the disclosed commissioning condition to be met, but German Green Steel has not provided the expected timing.

Conclusion

German Green Steel's March 31, 2026 financial information shows that the 9 MW Bharuch hybrid wind-solar project remained a CWIP asset with ₹71.1132 crore of parent-company expenditure because commissioning approval had not been received. This differs from the FY2026 commissioning of a separate 16.2 MW Hydro Power Plant described as Solar & Wind, while consolidated CWIP stood at ₹160.6548 crore.

The next item to watch is the competent authority's commissioning approval, which German Green Steel identified as the reason Bharuch had not been capitalised. A later disclosure showing approval and a transfer from CWIP to PPE would clarify the project's accounting status; German Green Steel has not disclosed a target approval date, revised cost estimate or revised completion date.