KP Energy FY26 crosses INR 1,500 crore revenue as order book stays strong

KP Energy Limited ended FY26 with its largest scale-up yet. Consolidated total income rose to INR 1,506 crore, up 57 percent from FY25. EBITDA increased to INR 328 crore, up 68 percent year-on-year, while profit after tax rose to INR 181 crore, up 57 percent. The fourth quarter was the strongest quarter of the year, with total income of INR 634 crore and PAT of INR 79 crore.

The company positions itself as an end-to-end wind and wind-solar hybrid solutions provider, with its core business anchored in balance-of-plant execution and EPC delivery. Alongside this, it is building two additional engines: an O&M platform that can generate recurring service revenue and an IPP portfolio that can evolve into longer-duration annuity cash flows.

FY26 financial performance and what changed in Q4

For FY26, revenue from operations was reported at INR 1,497 crore versus INR 939 crore in FY25. EBITDA margin improved to 22 percent from 20 percent, while PAT margin remained stable at 12 percent. In Q4 FY26, revenue from operations was INR 632 crore, EBITDA was INR 133 crore, and PAT was INR 79 crore, all materially higher than Q4 FY25.

From a cash flow perspective, management acknowledged that operating cash flows were lower than the prior year, and attributed this largely to increased inventory. In the earnings call, the CFO explained that inventory was built to secure supply chains for upcoming projects given geopolitical uncertainty. The company remained operating-cash-flow positive in FY26, but the working capital intensity rose.

Execution-led model remains the growth driver

In the earnings call, management described the EPC and infrastructure development segment as the engine of the business. The CFO disclosed segment revenue for FY26 at INR 1,451.69 crore, up 59 percent year-on-year. This underscores that KP Energy remains primarily an execution company at this stage, benefiting from India’s rising wind and hybrid installation activity.

The company also highlighted a meaningful order pipeline. Management stated that the order book is nearly 2 GW with a total value of about INR 3,000 plus crore, providing multi-year revenue visibility. During Q&A, the company also said that about 230 MW of new orders were added in the last quarter. Another disclosure that helped investors gauge concentration was the split between group and non-group orders. Management said around 50 percent of the order book is from group entities and 50 percent is outside the group, while the referenced pipeline is outside the group.

A notable structural development in FY26 was the receipt of an inter-state electricity trading licence from the Central Electricity Regulatory Commission. In the presentation, the licence is positioned as enabling pan-India market access for green power. In the call, management also said power trading typically involves advance payments, suggesting limited incremental working capital pressure from this activity relative to EPC.

O&M platform and IPP portfolio are being built for earnings quality

KP Energy is also scaling two businesses that can improve earnings predictability over time.

First is O&M. The presentation mentions an O&M portfolio of 646 MW. The company also described its network operations centre as a centralized monitoring hub driven by SCADA dashboards, automated alerts and IBM Maximo Renewables. In the earnings call, the CFO stated that O&M quarterly revenue in Q4 FY26 rose to INR 5.13 crore, describing it as an annuity-style stream that should expand as the installed base grows.

Second is the IPP portfolio. The presentation states the company has an IPP portfolio of 248.5 MW, of which 48.5 MW is operational, with the balance under execution. The snapshot also indicates 200 MW of IPP projects in hand. In Q&A, management referred to two 100 MW IPP projects, with one PPA signed and the other still pending, and indicated a 24-month timeline from the date of PPA for execution. One timeline example mentioned execution from 15 April 2026 to 15 April 2028.

IPPs also bring the reality of generation variability. In the call, management acknowledged a marginal decline in Q4 IPP generation and revenue, attributing it to seasonal wind performance rather than operational issues.

Balance sheet movement, working capital and funding costs

FY26 balance sheet growth was sharp, consistent with the execution ramp. Net worth increased to INR 522 crore from INR 312 crore. At the same time, current liabilities expanded to INR 1,777 crore from INR 528 crore, and current assets rose to INR 2,127 crore from INR 734 crore.

Management linked these movements to inventory build-up and supply chain planning. In Q&A, the CFO stated that debtor levels were not the driver and remained broadly consistent as a share of revenue, while inventory was the key swing factor for operating cash flow. The CFO also indicated that the cash conversion cycle varies by customer and typically ranges from about 100 to 150 days.

On the cost of debt, management suggested that with the upcoming IPP projects, project debt would be planned and that expected interest cost could range from 7.5 percent to 8.5 percent depending on the cycle.

Outlook: growth, market tailwinds and optionality in offshore

Management’s tone on sector outlook was constructive, pointing to wind capacity additions and rising demand for hybrid and round-the-clock power. In the call, the CFO referenced MNRE data that India added 6.05 GW of wind capacity in FY26, and discussed the national targets for wind additions by 2030. In Q&A, the company said it expects 40 percent to 50 percent growth in the coming year and added that it has sufficient orders in hand.

Offshore and nearshore wind was discussed as an emerging opportunity, but management was clear that the segment is early in India. The company said policy, tariff structures and viability support are still evolving, with NIWE and MNRE involved in validation and consultations. KP Energy stated it is preparing to engage with customers and potential consortium partners once the policy framework becomes clearer.

Takeaways

KP Energy’s FY26 results reflect a company that has scaled quickly on the back of wind and hybrid execution demand, while maintaining margins and improving its credit profile. The visibility from a nearly 2 GW order book, together with the build-out of O&M and IPP, can improve earnings durability over time. The key area to track is working capital intensity, as management itself linked operating cash flow softness to inventory build-up for supply chain security. If execution remains strong and working capital normalizes as inventory converts into billings, the financial model could look cleaner in the years ahead.