KPI Green Energy Q2 revenue rises, profit falls 21%

KPI Green Energy Limited reported consolidated total revenue of Rs 741.50 crore for the quarter ended September 30, 2026, up 15.7% from a year earlier, while profit after tax fell 21.2% to Rs 91.94 crore. Higher finance costs, depreciation and other expenses outweighed the increase in revenue from power and solar power plant sales.

What did KPI Green Energy report in Q2?

KPI Green Energy reported revenue from operations of Rs 727.21 crore in the quarter ended September 30, 2026, compared with Rs 634.30 crore in the quarter ended September 30, 2025, an increase of 14.6%. Including other income, total revenue rose to Rs 741.50 crore from Rs 641.14 crore, while other income increased to Rs 14.28 crore from Rs 6.85 crore.

Profit before tax declined to Rs 130.53 crore from Rs 157.75 crore, even as revenue increased. Profit after tax was Rs 91.94 crore, compared with Rs 116.64 crore a year earlier, and basic earnings per share declined to Rs 4.17 from Rs 5.53. Diluted earnings per share was Rs 4.15, versus Rs 5.50 in the prior-year quarter.

Why did KPI Green Energy's profit decline despite revenue growth?

KPI Green Energy's finance costs increased sharply in the September quarter. Interest expense rose to Rs 79.06 crore from Rs 33.02 crore, while lease finance cost increased to Rs 13.26 crore from Rs 10.00 crore. Together, the two finance-cost lines were Rs 92.31 crore, compared with Rs 43.02 crore a year earlier.

Depreciation and amortisation increased to Rs 60.32 crore from Rs 31.61 crore, and other expenses rose to Rs 63.58 crore from Rs 36.17 crore. Total expenses increased 26.4% to Rs 610.96 crore, ahead of the 15.7% increase in total revenue. The company-reported operating margin, defined as earnings before interest, tax, depreciation and amortisation excluding other income divided by revenue from operations, fell to 30.97% from 35.96%.

How did KPI Green Energy perform against the preceding quarter and half year?

KPI Green Energy's revenue from operations increased 4.8% sequentially from Rs 693.84 crore in the quarter ended June 30, 2026, but profit after tax declined 2.8% from Rs 94.63 crore. Interest expense increased from Rs 67.74 crore in the June quarter, while depreciation and amortisation rose from Rs 50.95 crore.

For the six months ended September 30, 2026, revenue from operations increased 14.9% to Rs 1,421.05 crore from Rs 1,237.24 crore in the prior-year half. However, half-year profit after tax fell 18.2% to Rs 186.58 crore from Rs 227.96 crore. Profit before tax for the half year was Rs 261.40 crore, down from Rs 306.95 crore, extending the divergence between revenue and reported profit beyond the September quarter.

Which segments generated KPI Green Energy's revenue?

KPI Green Energy generated its September-quarter segment revenue from sales of power and solar power plants, which contributed Rs 727.21 crore compared with Rs 633.41 crore a year earlier. The sales-of-plot segment recorded no revenue in the quarter, against Rs 0.89 crore in the quarter ended September 30, 2025. The increase in revenue from operations therefore came from the power and solar power plant segment.

The power and solar power plant segment reported profit before tax and interest of Rs 148.63 crore, down from Rs 172.28 crore despite its revenue growth. Segment assets increased to Rs 11,486.65 crore at September 30, 2026, from Rs 5,740.74 crore a year earlier, while segment liabilities rose to Rs 8,119.17 crore from Rs 3,278.60 crore. The segment's capital employed was Rs 3,367.47 crore, compared with Rs 2,462.14 crore a year earlier.

How did KPI Green Energy's funding, assets and cash flow change?

KPI Green Energy's total assets were Rs 12,036.90 crore at September 30, 2026, compared with Rs 9,882.06 crore at March 31, 2026. Capital work-in-progress increased to Rs 2,544.84 crore from Rs 918.04 crore, while property, plant and equipment declined to Rs 4,369.47 crore from Rs 4,428.80 crore. Trade receivables increased to Rs 1,213.69 crore from Rs 791.83 crore over the six-month period.

Non-current borrowings increased to Rs 4,776.90 crore from Rs 3,666.00 crore, while current borrowings rose to Rs 1,183.64 crore from Rs 865.95 crore. The debt-equity ratio was 1.84 at September 30, compared with 1.49 at March 31, and the interest service coverage ratio was 3.07 against 5.40 in the prior-year quarter. Net cash generated from operating activities in the half year was Rs 405.92 crore, while investing activities used Rs 1,482.34 crore, including Rs 1,673.80 crore for fixed assets and capital work-in-progress.

What acquisition accounting matter did KPI Green Energy disclose?

KPI Green Energy disclosed that Sun Drops Energia Limited, its material subsidiary, acquired 1,07,47,750 equity shares, representing 62.90% of the paid-up equity share capital of DEK and Maveriks Green Energy Limited, on September 25, 2026. Sun Drops Energia allotted 10,00,500 compulsorily convertible preference shares to the target's shareholders under the share-swap arrangement.

KPI Green Energy said the group is still determining the fair value of identified assets and liabilities for purchase price allocation. Until that work is completed, the business combination has been recorded under Indian Accounting Standard 103 using provisional fair values. The company had 14 entities in its consolidated group, including DEK and Maveriks Green Energy Limited as a step-down subsidiary, according to the auditor's review report.

Conclusion

KPI Green Energy increased consolidated revenue by 15.7% in the September 2026 quarter, driven by sales of power and solar power plants, but profit after tax declined 21.2%. Finance costs, depreciation and other expenses increased faster than revenue, while capital work-in-progress, borrowings and segment assets rose materially during the half year.

The next disclosed matter to watch is the final purchase price allocation for the September 25, 2026 acquisition of DEK and Maveriks Green Energy Limited. KPI Green Energy has said the fair values of identified assets and liabilities remain provisional, so the final accounting may affect a later set of consolidated financial statements.