KP Energy current liabilities rose 190% to Rs 1,738 crore

KP Energy Limited reported first-half financial year 2027 (H1 FY27) consolidated current liabilities of Rs 1,738 crore, up 190% year on year, as total assets and liabilities rose 118% to Rs 2,765 crore and current assets increased 193% to Rs 2,196 crore.

What changed in KP Energy's H1 FY27 balance sheet?

KP Energy's consolidated balance-sheet total rose to Rs 2,765 crore in H1 FY27 from Rs 1,268 crore in H1 FY26, an increase of 118%. On the funding side, net worth increased 55% to Rs 581 crore from Rs 376 crore, while non-current liabilities increased 53% to Rs 447 crore from Rs 292 crore.

The largest movement was in short-term balances. Current liabilities rose by Rs 1,138 crore, from Rs 600 crore in H1 FY26 to Rs 1,738 crore in H1 FY27, whereas current assets rose by Rs 1,446 crore, from Rs 750 crore to Rs 2,196 crore. The presentation states that the consolidated balance-sheet figures are rounded to the nearest crore.

The Rs 1,497 crore increase in total assets was mainly represented by the Rs 1,446 crore rise in current assets. Fixed assets increased by Rs 45 crore to Rs 559 crore, or 9%, while other non-current assets rose by Rs 6 crore to Rs 10 crore, according to the H1 FY27 summary.

How did KP Energy's debt and equity position change?

KP Energy reported debt of Rs 455 crore in H1 FY27, compared with Rs 277 crore in H1 FY26, an increase of Rs 178 crore. Equity, excluding minority interest as defined in the presentation, rose from Rs 377 crore to Rs 582 crore over the same comparison, while the debt-to-equity ratio moved to 0.78x from 0.73x.

The balance-sheet summary separately reports net worth of Rs 581 crore in H1 FY27 and Rs 376 crore in H1 FY26. Those figures are rounded, and the presentation does not provide a line-by-line reconciliation between its debt measure of Rs 455 crore and reported current and non-current liabilities of Rs 1,738 crore and Rs 447 crore.

Interest cost rose alongside the higher reported debt measure, reaching Rs 33 crore in H1 FY27 from Rs 18 crore in H1 FY26, a 77% increase. In the second quarter of FY27 (Q2 FY27), interest cost was Rs 17 crore versus Rs 9 crore a year earlier, while profit before tax was Rs 39 crore compared with Rs 54 crore in Q2 FY26.

What do KP Energy's assets indicate about working-capital movement?

KP Energy's current assets increased 193% to Rs 2,196 crore in H1 FY27, far faster than fixed assets, which increased 9% to Rs 559 crore from Rs 514 crore. Other non-current assets rose from Rs 4 crore to Rs 10 crore, a 150% increase, but remained a small part of the Rs 2,765 crore total asset base.

Using the reported categories, current assets exceeded current liabilities by Rs 458 crore in H1 FY27, compared with Rs 150 crore in H1 FY26. This is a simple subtraction of Rs 2,196 crore less Rs 1,738 crore, versus Rs 750 crore less Rs 600 crore; the presentation does not disclose the underlying components of either balance.

The comparison shows that the Rs 1,446 crore increase in current assets accounted for most of the Rs 1,497 crore increase in total assets between H1 FY26 and H1 FY27. Fixed assets added Rs 45 crore in the same period, so the reported expansion was concentrated in current rather than fixed-asset balances.

Current liabilities increased by Rs 1,138 crore, which was Rs 308 crore less than the increase in current assets during the comparison. The presentation gives the 190% and 193% changes in these categories but does not identify the individual receivable, inventory, payable or other balance components behind the movements.

How did cash flow and earnings move with the larger balance sheet?

KP Energy generated cash flow from operating activities of Rs 66 crore in H1 FY27, down 22% from Rs 85 crore in H1 FY26. Cash used in investing activities was Rs 63 crore, compared with Rs 105 crore a year earlier, while cash flow from financing activities was Rs 2 crore versus Rs 23 crore.

The resulting net increase in cash and cash equivalents was Rs 6 crore in H1 FY27, compared with Rs 3 crore in H1 FY26. Cash and cash equivalents at period-end were Rs 12 crore, up from Rs 5 crore, after beginning H1 FY27 at Rs 6 crore rather than Rs 2 crore in the comparable prior-year period.

Revenue from operations rose 103% to Rs 1,058 crore and total income rose 103% to Rs 1,062 crore in H1 FY27. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8% to Rs 127 crore, while the EBITDA margin was 12%, down from 23% in H1 FY26.

Total expenses climbed 130% to Rs 934 crore in H1 FY27 from Rs 406 crore in H1 FY26. Profit after tax was Rs 53 crore, 13% below Rs 61 crore a year earlier, and the profit-after-tax margin was 5% compared with 12% in the previous first half.

In Q2 FY27 alone, revenue from operations rose 79% to Rs 539 crore from Rs 301 crore in Q2 FY26. EBITDA declined 6% to Rs 65 crore from Rs 69 crore, while profit after tax declined 25% to Rs 27 crore from Rs 36 crore.

Conclusion

KP Energy's H1 FY27 accounts show a balance-sheet expansion from Rs 1,268 crore to Rs 2,765 crore, led by higher current assets and current liabilities. Debt increased to Rs 455 crore, debt-to-equity reached 0.78x, and operating cash flow declined to Rs 66 crore despite total income of Rs 1,062 crore.

The next disclosed development to watch is the KP Group business-structure realignment, under which KP Energy is planned to serve as the dedicated wind engineering, procurement and construction platform. Its disclosed scope includes wind projects of all capacities and wind-led hybrid, firm and dispatchable renewable energy, and round-the-clock projects above 50 megawatts, while the wider group has committed FY32 targets of 10 gigawatt-peak owned generation, 10 gigawatt-peak third-party engineering, procurement and construction, and 10 gigawatt-hours of battery storage.