KPI Green Energy wins 120 MW BESS deal in 2026

What KPI Green Energy disclosed on May 19

KPI Green Energy Limited informed stock exchanges on May 19, 2026 that its subsidiary, Sun Drops Energia Limited, has executed a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited (GUVNL). The agreement is for a 120 MW / 240 MWh independent power producer (IPP) standalone Battery Energy Storage System (BESS) project. This is the company’s second executed standalone BESS order from GUVNL. With this addition, KPI Green Energy said its cumulative executed standalone BESS portfolio has reached 565 MW / 1,130 MWh. The disclosure adds another large storage asset to the group’s pipeline alongside ongoing solar and wind activity in Gujarat.

Deal structure and bidding framework

The BESPA was executed under GUVNL’s Phase-VIII tariff-based competitive bidding process. KPI Green Energy also pointed to Viability Gap Funding (VGF) support routed through the Power System Development Fund (PSDF). The PSDF is a central government instrument used to make storage projects commercially viable, especially in a phase where battery costs are falling but are not yet fully at grid parity without subsidy support. In practical terms, the framework links project selection to competitive bidding while using VGF to bridge economics for utility-scale standalone storage. The arrangement is also notable because it places storage procurement in a structured, multi-phase series, indicating repeated tendering cycles in Gujarat.

Two Gujarat substations identified for the project

Under the agreement terms shared by the company, Sun Drops Energia will develop, own, and operate the project at two locations in Gujarat. The first site is 65 MW / 130 MWh at the 220kV Gariyadhar AIS Substation. The second site is 55 MW / 110 MWh at the 220kV Otha AIS Substation. The company described the project as a standalone BESS, meaning it is not packaged as co-located storage tied directly to a specific renewable plant in the disclosure. Location clarity matters for investors because substation linkage often signals where grid congestion, peak support, or balancing needs are being addressed.

How this order fits the earlier 445 MW BESS award

KPI Green Energy said the new 120 MW / 240 MWh order follows an earlier executed 445 MW / 890 MWh BESPA with GUVNL. Together, these two executed agreements are what the company used to describe its cumulative executed standalone BESS portfolio of 565 MW / 1,130 MWh. The earlier 445 MW / 890 MWh transaction had been presented as the company’s formal entry into utility-scale energy storage through Sun Drops Energia. The company has positioned the combined portfolio as significant in Gujarat and in India’s utility-scale battery storage landscape.

Stock reaction and key valuation markers

The order disclosure coincided with a positive move in the stock on May 19. KPI Green Energy’s shares rose 2.98% to ₹433.80 on the NSE, with an intraday high of ₹436.90 versus a previous close of ₹421.25. The company’s valuation markers cited in the update included a P/E of 18.07x and an approximate market capitalisation of ₹900.50 crore. The stock has recovered from its 52-week low of ₹335.65, but it remained 23% below its 52-week high of ₹563 at the time of the update. These figures frame how the market is currently pricing project wins alongside execution and funding considerations.

Dividend and board recommendation

Separately, the company noted that its Board recommended a total dividend of Re. 0.40 per share. This total comprises a Final Dividend of Re. 0.25 per share and a Special Dividend of Re. 0.15 per share. The disclosure provides context for shareholder returns while the company continues to add large-ticket projects across renewable generation and storage. It also signals that the company is pairing expansion with a defined dividend recommendation rather than deferring all cash flow toward growth.

Milestones: financing, bonds, licences, and capacity build-out

KPI Green Energy highlighted several strategic milestones, including a Canara Bank sanction of ₹979 crore and India’s first externally credit-enhanced green bond of ₹670 crore. The company also cited BESS project execution with GUVNL and receipt of pan-India power trading licences as key developments. On the operating side, KPI Green Energy stated it has surpassed 1 GW of energized IPP capacity from its 2.3 GW portfolio, representing 18x growth since FY21. The combination of financing milestones, licences, and energized capacity provides a broader context for how the company plans to scale beyond conventional solar generation.

Financial performance numbers referenced by the company

The wider set of information included FY26 profitability and growth details. KPI Green Energy reported a 49.2% rise in net profit to ₹155.5 crore in Q4 FY26. For FY26, consolidated net profit rose 57% to ₹509.2 crore from ₹325 crore in FY25, while revenue increased 54% to ₹2,696 crore from ₹1,735 crore. For the nine months ended FY26, total income was reported at ₹1,931 crore versus ₹1,177 crore in the corresponding period, with EBITDA at ₹701 crore and PAT at ₹354 crore. The company also disclosed Basic EPS of ₹16.77 for the nine-month period. These numbers were presented alongside higher borrowing and finance costs linked to rapid capacity expansion.

Other order wins and ongoing Gujarat execution

Alongside storage, the company referenced additional contracts and commissioning progress. It disclosed orders from Adani Group entities for a 300 MWac/405 MWdc solar project at Khavda, Gujarat, covering electrical AC-DC works, civil works, and equipment supply. It also said it commissioned 24.2 MW from its GUVNL project and secured orders including 152 MW floating solar EPC and 445 MW BESS projects. The company further noted commencement of operations for its 200 MW AC / 240 MW DC solar power project at Khavda Solar Park under a long-term PPA with GUVNL. In the FY26 order list cited, it mentioned a 300 MW wind project from SJVN Limited, a 150 MW wind project from GUVNL, and a 250 MW solar EPC project in Gujarat.

Key facts snapshot

Why the update matters for India’s storage market

The update is significant because it adds another executed agreement under a multi-phase competitive bidding program that includes VGF support. For the sector, this reinforces that standalone storage procurement is moving from pilot scale into larger, repeatable tenders where bankability improves through structured contracts and subsidy mechanisms. For KPI Green Energy, the second executed order from the same state utility highlights repeat participation in Gujarat’s storage tenders and expands a cumulative executed portfolio that the company itself describes as among the larger standalone BESS positions in the state.

Conclusion

KPI Green Energy’s May 19 disclosure centres on a 120 MW / 240 MWh standalone BESS agreement executed by Sun Drops Energia with GUVNL, with project locations specified at the Gariyadhar and Otha 220kV AIS substations. The order takes the company’s executed standalone BESS portfolio to 565 MW / 1,130 MWh and follows its earlier 445 MW / 890 MWh agreement. Next, investors will track project development progress under the Phase-VIII framework and how VGF support through the PSDF translates into timelines and execution milestones on the ground.