KP Energy Limited Q2 revenue rose 79% but margin fell to 12%

In the second quarter of fiscal year 2027 (Q2 FY27), KP Energy Limited reported revenue from operations of Rs 539 crore, up 79% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell to 12% from 23%. Total expenses increased 102% to Rs 475 crore, leaving EBITDA at Rs 65 crore, 6% below Rs 69 crore in Q2 FY26.

Why did KP Energy’s Q2 FY27 margin fall?

KP Energy’s margin fell because total expenses rose faster than income in Q2 FY27. Total income increased by Rs 238 crore, from Rs 303 crore in Q2 FY26 to Rs 541 crore, while total expenses increased by Rs 240 crore, from Rs 235 crore to Rs 475 crore. As a result, EBITDA declined by Rs 4 crore despite the increase in income.

KP Energy’s reported EBITDA margin was therefore 11 percentage points lower than a year earlier, at 12% in Q2 FY27 versus 23% in Q2 FY26. The presentation provides consolidated income-statement totals but no segment-wise expense split or management explanation for the Rs 240 crore increase in quarterly costs. It establishes the arithmetic behind the compression without identifying a specific operating cause.

How did higher costs affect KP Energy’s profit after tax?

KP Energy’s PAT declined 25% to Rs 27 crore in Q2 FY27 from Rs 36 crore in Q2 FY26. Profit before tax fell 28% to Rs 39 crore from Rs 54 crore, following lower EBITDA, an Rs 8 crore increase in interest cost and an Rs 3 crore increase in depreciation and amortisation. Interest cost was Rs 17 crore in Q2 FY27, compared with Rs 9 crore a year earlier.

KP Energy’s PAT margin fell to 5% in Q2 FY27 from 12% in Q2 FY26, according to the consolidated statement. Basic earnings per share (EPS) declined 25% to Rs 4.00 from Rs 5.36. Cash profit decreased 15% to Rs 40 crore from Rs 47 crore, remaining below the prior-year quarter despite the 78% rise in total income.

What does KP Energy’s first-half FY27 performance show?

KP Energy’s first half of fiscal year 2027 (H1 FY27) revenue from operations more than doubled to Rs 1,058 crore from Rs 520 crore in H1 FY26, a 103% increase. Total income similarly rose 103% to Rs 1,062 crore from Rs 524 crore. However, total expenses increased 130% to Rs 934 crore from Rs 406 crore, exceeding the income growth rate.

KP Energy reported H1 FY27 EBITDA of Rs 127 crore, up 8% from Rs 118 crore in H1 FY26, while the EBITDA margin declined from 23% to 12%. H1 FY27 PAT fell 13% to Rs 53 crore from Rs 61 crore, and PAT margin reduced to 5% from 12%. Unlike the quarterly comparison, first-half EBITDA increased in absolute terms, but the margin remained at the lower 12% level.

KP Energy’s financing and non-cash charges also increased during H1 FY27. Interest cost rose 77% to Rs 33 crore from Rs 18 crore, while depreciation and amortisation rose 66% to Rs 18 crore from Rs 11 crore. Consequently, profit before tax declined 15% to Rs 76 crore from Rs 89 crore, and basic EPS declined 14% to Rs 7.85 from Rs 9.15.

How did KP Energy’s balance sheet and cash flow change?

KP Energy reported debt of Rs 455 crore at H1 FY27, compared with Rs 277 crore at H1 FY26, while equity increased to Rs 582 crore from Rs 377 crore. Debt to equity consequently moved to 0.78 times from 0.73 times. The company notes that equity in this comparison excludes minority interest, and the displayed debt and equity figures are rounded to the nearest crore.

KP Energy’s consolidated balance sheet showed net worth of Rs 581 crore at H1 FY27, up 55% from Rs 376 crore, while current liabilities rose 190% to Rs 1,738 crore from Rs 600 crore. Current assets increased 193% to Rs 2,196 crore from Rs 750 crore. Fixed assets rose 9% to Rs 559 crore from Rs 514 crore, a slower increase than the movement in current assets and current liabilities.

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 in the prior-year half, while cash flow from financing activities declined to Rs 2 crore from Rs 23 crore. Cash and cash equivalents at the end of the period were Rs 12 crore, compared with Rs 5 crore a year earlier.

Conclusion

KP Energy’s Q2 FY27 figures show a divergence between revenue growth and operating profitability: revenue from operations rose 79% to Rs 539 crore, but EBITDA declined 6% to Rs 65 crore as expenses grew 102%. The effect extended to net profit, with PAT falling 25% to Rs 27 crore and EBITDA margin reducing to 12% from 23%.

What to watch next is whether income growth exceeds the pace of expense growth, because the H1 FY27 margin also stood at 12% despite revenue from operations increasing 103% to Rs 1,058 crore. The presentation provides no future margin target or expense-reduction plan, while interest cost was 77% higher at Rs 33 crore in H1 FY27 and debt to equity was 0.78 times.