Orient Green Power FY26 profit up 70%: key drivers

Orient Green Power Company Limited (BSE: 533263), a Chennai-based renewable power producer, reported its highest-ever consolidated net profit in FY26 even as the March quarter remained weak due to seasonally low wind availability. The company also made the audio recording of its Q4FY26 Investors and Analysts Call available on its website, following the call held on May 13, 2026.

The FY26 performance was supported by favourable wind patterns in the first half, commissioning of the company’s first solar power plant of 7 MW in December 2025, and a one-off interest refund of about ₹16 crore. At the same time, Q4FY26 reflected a typical low-wind quarter, along with higher depreciation and maintenance costs.

FY26 result at a glance

For the year ended March 31, 2026, Orient Green Power reported consolidated total income of ₹315.57 crore, up 13% from ₹278.89 crore in FY25. Consolidated EBITDA rose 10% to ₹205.45 crore from ₹187.31 crore, while the EBITDA margin stood at 65% versus 67% a year ago.

Consolidated net profit for FY26 came in at ₹71.57 crore, a 70% increase over ₹42.01 crore in FY25. The company described this as the highest net profit in its operating history.

The Board of Directors approved the audited financial results at its meeting on May 11, 2026. The audited standalone and consolidated results for the quarter and year ended March 31, 2026 were also disclosed via a newspaper advertisement dated May 12, 2026 in Financial Express (English) and Makkal Kural (Tamil), under the relevant SEBI (LODR) disclosure requirements.

Q4FY26: income and EBITDA softened, loss widened

In Q4FY26, consolidated total income fell 2% year-on-year to ₹46.62 crore from ₹47.63 crore. EBITDA declined 19% to ₹18.15 crore from ₹22.53 crore, with the EBITDA margin moving to 39% from 47%.

The consolidated net loss for Q4FY26 was ₹16.56 crore, compared with a loss of ₹15.09 crore in Q4FY25. Management attributed the quarter’s softer revenue to lower wind availability, noting that Q4 is typically a low-wind quarter. The company also said there were no issues related to power evacuation or tariffs.

Consolidated financial snapshot (as disclosed)

What drove FY26 profit growth

The company linked FY26 performance to three key factors: favourable wind patterns, the addition of solar generation, and finance cost benefits. Management said wind patterns were particularly supportive in the first half of FY26, improving generation and revenues.

The commissioning of the first solar plant of 7 MW in December 2025 also supported the topline. In addition, profits benefited from a one-off refund of excess interest charged in earlier years or periods, disclosed at about ₹16 crore.

Finance costs also moved lower due to a decline in overall debt and interest rates. Interest costs declined from ₹71.99 crore to ₹57.18 crore in FY26, a reduction of about 21%.

Capacity additions: wind expansion and solar pipeline

Orient Green Power reported additions and contracted capacity in both wind and solar.

• The company commissioned its first solar power plant of 7 MW in December 2025.
• A total of 9.9 MW of wind capacity was added in FY26 through 3 x 3.3 MW larger capacity turbines.
• The company has contracted to add another 17.6 MW solar capacity, which it described as under construction.

Management also indicated that these projects are expected to contribute meaningfully to annual revenue and EBITDA once operating under normal conditions.

Repowering initiative under Tamil Nadu policy

Beyond capacity additions, the company said it has taken initiatives to improve operating efficiencies by repowering about 7.8 MW of old wind turbine capacity. Management described this as a first under Tamil Nadu’s new repowering policy.

While the FY26 disclosure highlighted the initiative, the company also flagged that Q4 profitability was impacted by higher depreciation and maintenance costs. This was cited among the negative points affecting quarterly performance.

Borrowings, liquidity and interest rate improvements

The company’s financial and liquidity position was described as improved, with enhanced credit ratings for key subsidiaries. It also disclosed a 45 basis point reduction in interest rates at a material subsidiary.

As of March 31, 2026, consolidated non-current borrowings stood at ₹411.76 crore and consolidated current borrowings were ₹91.63 crore.

On debt servicing, management said loan repayment is ongoing, and surplus cash flow is being used for early loan payments.

Corporate actions and investor communications

The board accorded in-principle approval for the merger of two wholly owned subsidiaries, Bharath Wind Farm Limited (BWFL) and Orient Green Power Europe B.V. (OGPE), into the holding company, subject to shareholder and statutory approvals.

Following the earnings conference call held on May 13, 2026, the company made the audio recording available on its website, citing compliance with SEBI Regulation 30.

Stock context and valuation signals cited

The data provided referenced a GF Value of ₹14.02 and tagged the stock as “Modestly Undervalued.” It also noted a one-day move of -2.74% and performance figures of 1Y +3.51% and 5Y +611.76%.

At the same time, the negative points section flagged that the company is undervalued compared to other listed renewable energy companies, which it said can affect shareholder returns.

Risks and execution questions highlighted

The company’s disclosures also pointed to operational and strategic uncertainties that investors typically track in renewable portfolios. Negative points included the challenge of reaching a 1 GW renewable energy target amid market volatility and financing constraints.

It also flagged uncertainty around timelines for strategic initiatives and asset acquisitions. Separately, the seasonal nature of wind availability was underscored in the Q4 discussion, with management stating the revenue decline was due to lower wind availability rather than evacuation or tariff issues.

What to watch next

Near-term investor focus is likely to remain on execution of the contracted 17.6 MW solar addition, the performance of the expanded 9.9 MW wind capacity under normal wind conditions, and progress on debt reduction given the interest cost sensitivity.

Updates on the proposed subsidiary mergers, along with any further disclosures under SEBI (LODR) regulations, will also be key milestones as the company moves into FY27.