Ladies and gentlemen, good day and welcome to the KPI Green Energy Limited Q4 FY 2026 earnings conference call hosted by Share India Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to Mr. Harsh Patel from Share India Securities. Thank you and over to you, Harsh.
Thank you. Good morning, everyone. I would like to congratulate the management on very good set of numbers on behalf of Share India Securities. I welcome you all for Q4 FY 2026 earnings conference call of KPI Green Energy. We are pleased to have with us the management team represented by Mohmed Sohil Dabhoya, the Whole-time Director, Alok Das, Group Chief Executive Officer, Salim Yahoo, Chief Financial Officer of the company. We will have the opening remarks from the management, followed by question and answer session. Thank you. Over to you, Vinod.
Okay. Thank you. Thank you. Good morning, everyone. Myself, Vinod Jain, Head Investor Relations. On behalf of management team, I would like to extend a very warm welcome to all our investors, shareholders, and other participants for today's earning call for quarter four and FY 2025, 2026 for KPI Green Energy. Joining us on the call are Whole-time Director, Group CEO and CFO, who have already been introduced. They will take us through the financial and the operational performance for the quarter and year. Let me tell you that financial year 2025, 2026 has been another strong and excellent year for the company with robust operation and financial performance. As committed during the year, we reported strong growth on top line EBITDA, PAT, and cash profit, which will be detailed by our CFO, Mr. Salim Yao.
During the year, we secured several strategic project wins across solar, wind, BESS, emerging segment like floating solar and the power trading license from the CERC, while continuing to strengthen our long-term IPP portfolio and power evacuation infrastructure. At KPI Green, we remain committed to building an integrated renewable energy platform with a strong execution capability, technology-led operation, and long-term value creation for all the stakeholders. Now, I would like to hand over the call to Mr. Salim Yahoo for the financial and operational overview. Thank you and over to Mr. Salim Yahoo.
Good morning, everyone. On behalf of KPI Green Energy Limited, I extend a warm welcome to all our investors, analysts, shareholders and participants joining us today for the earnings conference call for the quarter and financial year ended March 31, 2026. I hope all of you have had the opportunity to go through our audited financial results and the investor presentation uploaded on the stock exchange. FY 2025, 2026 has been another landmark year for KPI Green Energy Limited. The company has delivered strong growth across all key financial and operational parameters, supported by continued execution strength, a diversified renewable portfolio, and a clear focus on building long-term sustainable value. Our journey over the past five years reflect the strength and scalability of our business model. During this period, our compounded growth has been remarkable with 92% CAGR in sales and 104% CAGR in profit.
This demonstrates that KPI Green is well aligned with India's renewable energy requirement and is consistently creating sustainable value for shareholders. For the last three years, we have built not just projects, but strong momentum. Our total assets have grown more than double every year, rising from INR 2,436 crore in FY 2024 to INR 4,792 crores in FY 2025, and further reaching INR 9,882 crore this year in FY 2026. This growth reflects our disciplined investment in renewable assets, land evacuation infrastructure, and execution capabilities. Moving to the financial performance, for FY 2026, our total income stood at INR 2,742 crores as compared to INR 1,755 crores in FY 2025, registering a strong growth of 56% year-on-year.
Earnings Before Interest, Taxes, and Depreciation increased to INR 1,006 crores as compared to INR 581 crores in FY 2025, reflecting growth of 73%. Profit After Tax stood at INR 509 crores as compared to INR 325 crores in FY 2025, registering growth of 57% YOY. For quarter F4 FY 2026, total income stood at INR 810 crore. Earnings Before Interest, Taxes, and Depreciation stood at INR 305 crores and PAT stood at INR 155 crore. This reflects strong momentum in the closing quarter of the year and demonstrate our ability to execute at scale while maintaining profitability. Our balance sheet has also strengthened significantly. Net worth increased to INR 3,273 crores in FY 2026 from INR 2,630 crores in FY 2025.
While as fixed assets grew to INR 5,427 crores, reflecting our continued investment in renewable energy asset and future growth capacity. Cash flow from operation activities improved to INR 424 crores in FY 2026 compared to INR 208 crore in FY 2025. Moving on to operational and portfolios. On the operational front, KPI Green continued to scale its renewable portfolio across both IPP and CPV segment. As on March 31, 2026, our installed capacity stood at over 1.62 gigawatt with work-in-progress capacity of over 4.64 gigawatt. Our installed plus upcoming portfolio has reached approximately 6.26 gigawatt, comprising 2.57 gigawatt under IPP segment and 3.69 gigawatt under CPV segment.
Our expanding IPP portfolio is expected to generate more than 390 crore units annually, strengthening the company's recurring revenue base and improving long-term visibility of earnings. With long tenure PPAs, strong execution capabilities, and integrated project development expertise, we are building a platform that combines growth with predictable cash flows. During the year, we secured several important project win across solar, wind, floating solar, green hydrogen, and battery energy storage. This includes 150 MW wind project with GEOL, 445/890 MWh standalone BESS project. Again, 120 MW/240 MWh standalone BESS project, 142 MW floating solar project, 250 MW solar project from SGVN, 1.13 GW solar battery balance of plant project from Adani Group, and 300 MW wind project from SGVN.
On the financial segment, I mean, sustainable financial milestone that we have achieved, one of the defining milestone for us was the successful listing of India's first externally credit-enhanced green bond. This was INR 670 crores 5-year instrument carrying 8.50 coupon rate with quarterly amortization backed by a 65% partial guarantee from GuarantCo, which is an international private infrastructure development group. The instrument was rated AA+ (CE) by CRISIL and ICRA. This innovative structure broadened our investor base among long tenure domestic institutions and set a new benchmark for sustainable finance in India. More importantly, it reinforces the market confidence in KPI Green's business model, governance standards, and renewable growth platform. We are pleased to highlight that KPI Green has received both interstate trading license from CERC and intrastate trading license from GERC.
This enables us to participate in pan-India power market exchange and bilateral contracts, thereby creating wider market access, better realization opportunities, and enhanced portfolio flexibility. Looking ahead, our focus remain on strengthening the IPP portfolio, expanding the CPP businesses, and building capabilities in future growth segments such as battery energy storage system, green hydrogen, floating solar, offshore wind, pump storage, and energy trading. Our strategy is to build an integrated renewable energy platform with strong execution capabilities, predictable annuity revenue, and long-term value creation for all the stakeholders. As India accelerates sustainable energy transition, KPI Green is well-positioned to contribute meaningfully through scale, execution, innovation, and disciplined financial management. We remain committed to timely execution, strong governance, sustainable growth, and consistent value creation for all our stakeholders. I thank you for all the support that has been provided by all our stakeholders.
With this, I would like to thank all our shareholders also, lenders, customers, employees, partners, regulators for their continuous trust and support. I now request the moderator to open the floor for question and answers.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Pandya from Viome. Please go ahead.
Hi, Deep. Am I audible?
You're not sounding that clear, Mr. Pandya.
Hi, am I audible now?
Yes, please go ahead.
Yes. Congratulations on the great set of numbers.
Thank you.
My question was towards one of our subsidiaries, Sun Drops Energia.
We are also a shareholder in that company. I wanted to get some idea on the H2 numbers, and Q4 numbers. Also, what is the status of the DRHP filing and the eventual listing?
Thank you, Aditya, for the co-compliment. Speaking about SunDrop, which is, you know, a subsidiary of KPI at present, the top line of SunDrop this year was INR 586 crores, which was substantial growth, with a PAT, with a PBT of INR 130 crores and a PAT of INR 97 crores. With respect to the IPO of SunDrop has been, you know, we are going to do all the battery energy storage system. That is the BESS, which is an upcoming segment. That segment is been dedicated to SunDrop. SunDrop will be coming up shortly with the filing of DRHP for the IPO with the object of battery energy storage system, along with the battery energy manufacturing also is in line with us.
Shortly you'll see the, you know, interaction in this particular company more. Growth also is there on the top line as you have seen. This year we have grown again substantially. Next year also we have a substantial target of growing this company going forward.
Understood. I think I missed the part where, I think you didn't mention the timeline for listing.
This year we are, as we told, no? This year, this financial year we'll be doing the listing for SunDrop.
Understood. Okay. Thank you. Thank you.
Thank you. The next question is from the line of Shrenik Mehta from IndoArab Wealth. Please go ahead.
Hi. My question is about the overall IPP strategy. FY 2026, you saw revenue growth of almost 56%.
-growth of 57%. The EPS has grown only 49% and the stock has derated. Our interest cost is up almost 130% to INR 182 crore against the IPP contribution, which is only 9%. You have almost 1.6 gigawatt of IPP energies over FY 2027 and 2028 that will come up. What will be the peak interest burden that the P&L will absorb? At what point of time do you expect this IPP pack to cross the interest plus the depreciation and the dilution lag? The question is largely that when does this transition become EPS accretive rather than EPS dilutive on a per share basis?
Yeah. Thank you, Ashish. I think if I summarize your question, you want to understand when is the break-even going to happen and when we'll see the positive impact on the financials from the IPP segment, right?
Yeah. Also the peak interest burden, what we'll have.
Yes. Yes. Yeah. First of all, let me just explain you the interest cost, why it has increased. If you see last year, last year we had, you know, done an QIP because of which, you know, we have repaid some of portion of our long-term loans and short-term loans. Because of which the interest cost in the last year was seen very less compared to this year. This year we have added more capacity. We have taken, we have started 250 MW, 370 MW, and then also Khavda 240 MW. IPP is a segment which, you know, we, it's a CapEx burden, so automatically the interest cost has increased this year. The peak interest cost approximately would be at around INR 300 odd crore.
If you see the initial phase, when you see the business when it starts, the IPP segment comes in a phase-wise manner. If you first see that, you know, out of this 1 GW you'll find 250, then three, another 250, coming up over a period of time. The revenue will start coming in. FY 2027-2028 is where we will see the full year operation of this IPP, what we have taken in hand, and then you'll see the, you know, within that stability period will also go. You'll find that majority of the thing. Whereas the break-even of any IPP project would be around six to seven years. You'll see a strong cash flow coming from FY 2027-2028 in the IPP segment.
Okay. We can expect that the ROE of the company will continue to decline even until FY 2028.
Not decline. See, as I'm telling you, we are doing it in a phase-wise manner. If you have the PPA that we have signed with the government institutions like GUVNL, there we have a clause that we can set up the plants in the batches of 25 megawatt, 50 megawatt. The revenue also starts coming up. What happens is that, you know, it also reduces my interest cost. Automatically you'll find that it will not be that much burden in the construction phase also, because while constructing the other portion of the plant, some portion will automatically start generating revenue. Though maybe the COD of that will be in the end of September 2027, but before that, you know, 50%, 60% of the plant is already started generating revenue.
You'll see a mixed, you know, impact on the financial. We will not see too much of, you know, impact of interest or, you know, too much of impact of other cost. At the same time, there will be also revenue which will come up. Yes, the exact, you know, the impact will come only in 2027-2028 when the entire plant is done and we start seeing the revenue flowing in.
Yeah. That is probably the reason why the stock has been underperforming. You know, your ROC has been dropping almost from 18%-19% to around 13%-14%. Probably from what you're explaining, it may further drop in the next one or two years before it starts to climb up.
Not one or two years. I think, you know, most probably, this year we'll have little bit, you know, we will curtail the drop this year itself, and next year we'll see again ROIC coming back to the earlier levels. That is what we are targeting.
Okay. All right, thank you.
Thank you.
Thank you. The next question is from the line of Ayush Sharma, an individual investor. Please go ahead.
Yeah, hi. My question is on this evacuation. In FY 2024, the evacuation was 1.6 gigawatt, and in FY 2025 it was decreased to approximately 3.26 gigawatt, which is a 100% decrease YoY. This year, evacuation has only increased to 3.56. It is 10% of the previous year. What is the reason which you are seeing that only very less increase in the YoY evacuation overall?
Ayush, your question we are not able to understand exactly. What you are looking at in FY 2025 it was, you are saying 3.9 gigawatt, right? As per the presentation.
3.26. Yeah. FY 2025 it was 3.26.
Okay.
You can just open the presentation of the last year, same quarter.
June event, 20 you are talking about, right? Yes.
Yeah, evacuation.
Yeah.
This year has increased to 3.59%.
Yes, yes.
3.59 gigawatt, which is 10%.
Yeah, yeah. See, evacuation, there is a process of evacuation, getting approval or getting the evacuation in your kitty. The process is that you have to apply, you have to check wherever there is an evacuation. We have applied multiple. Maybe, you know, this year you have not seen too much of reaction, but there are multiple evacuations which have been applied. We have applied in different companies also because we have multiple other companies. We apply in individual companies, where we can set up the project and later on transfer that evacuation to KPI. Rest be assured that evacuation is substantial at our end. We have also applied it. You'll find the growth in evacuations. Evacuation is not a bottleneck for our growth.
We have already been growing because of these two factors, land bank and power evacuation. This will be the growth runners for our business going forward also.
Okay. My next question is on the Botswana project. Have you started the project work there? Have you done the groundwork ready there?
Your voice is cracking, by the way. Ayush, your voice is cracking.
I'm sorry to interrupt, Mr. Sharma. Your voice is not audible.
Am I audible now?
It is sounding muffled to us.
Hello. Am I audible now?
It's still the same actually, Mr. Ayush. Can you please check the connection of yours and please rejoin the queue. In the meanwhile, we'll take the next question, which is from the line of Parth Kotak from Plus 91 Asset Management. Please go ahead.
Hi. Thanks for taking my question. Salim, sir, congratulations to you and your team for a good set of numbers. Sir.
Thank you.
bookkeeping questions. What is our current CPP order book in terms of rupees crores?
Yeah. That is the only question. Current CPP order book, if you see, we have approximately INR 5,246 crore of order book on the CPP side.
Okay, perfect. Secondly, sir, we've seen substantial increase in inventory, about a 4x increase in inventory and 2x increase in inventory days. What's the strategy there?
If you see what is the inventory in our balance sheet is approximately INR 1,000 plus Crores, right?
Right. INR 1,400 odd crores.
Yes, INR 1,400 odd crore. If you look at the order book that I told you, INR 5,246 crore, right?
Right.
Hello? Hello. If you see.
Yes. Yes, sir.
The inventory that I'm holding is only 40% of, you know, 30%-40%. I have to keep on, you know, building up the inventory so I can execute the orders in a timely manner. That's the reason if you see, we have stocked inventory because we have huge order which has lined up and we have to execute it, them in the upcoming quarters.
Perfect, sir. Perfect. That makes sense.
I think 30%-40% inventory is a reasonable thing.
Sure. Sir, if I may just squeeze in one last question and then I will join back in the queue. If you can give us an update on the Botswana project, that would be helpful.
Yeah. We have already set up company in Botswana. We are also I mean that Botswana company will be a subsidiary of a company which will be in GIFT City, which will be 100% subsidiary of KPI. We have done all the groundwork for setting up the company. All the approvals have been taken place so that we can infuse funds from, you know, as per the overseas direct investment policies of under FEMA. All those procedure has been done. We have set up a team over there.
The team, we have taken offices over there, we are shortly be signing the PPAs with in Botswana or in the neighboring countries so that we can start working on our first commitment of 500 MW by end of FY, by end of December 2027. That is there already in process.
Okay. Thank you, sir. I'll join back the queue.
Thank you. The next question is from the line of Ankit Panda, an individual investor. Please go ahead.
Hi, sir. My question is regarding the growth outlook of the company. Like, what is the expected growth in revenue and PAT you are expecting in % basis this financial year?
Ankit, as you know, our honorable CMD, Dr. Faruk Patel, has on various public domain or on the televisions have given the commitment that we are, you know, binded to grow at a rate of 40% to 50% year-on-year. We will, we'll try to maintain that growth structure. As far as the profitability is concerned, as profitability is very strong, we'll try to maintain that profitability by figuring out how the mix of IPP and the CPP will help us to maintain that profitability.
Okay, sir. Thank you so much.
Thank you. The next question is from the line of Mithil Bhuva from unlistedindia.com. Please go ahead.
Hi, sir. Thank you for taking the question. My first question is on the grid stabilization.
I'm sorry to interrupt you, Mr. Mithil, but we are unable to hear you clearly, sir.
You're able to hear me now?
Yes, better. Please go ahead.
Yeah. Yeah. My first question is on grid stabilization charges which have been imposed in many states. What is the impact on the CPP segment for KPI?
Can you just elaborate your question? I mean, we are not able to understand.
Yeah.
What are the charges here?
There are grid stabilization charges which have been imposed in Maharashtra. We have heard from multiple sources that this is the add-on to the bills that everyone is getting in the rooftop solar and in the CPP also. Just asking, does it have any impact on the CPP segment for KPI?
Yeah. I'm Alok Das speaking. Basically, grid stabilization charges, Maharashtra policy newly introduced. Actually we are not doing any project in the rooftop particularly. We are exploring some new policy declared about, base compatible of 50% mandatory for under that, the policy declared recently. We as a KPI are evaluating the project feasibility in the state of Maharashtra and how that charges and assessing. When if, I mean, all these things are calculated, we will be try to see that what kind of charges they are getting. Grid stabilization charges, we are just evaluating how it is impacting to our project feasibility. As of today, we are not sure how much it will be impacted. For CPP sectors.
Because in the Maharashtra there's a huge captive charges, so we are sure it can stabilize somewhere else. We need to see a detailed evaluation for that.
These charges have not been applied in the Gujarat and other states?
Grid stabilization charges in Gujarat is not there. We are not finding this thing there in the other states also. This policy recently declared, probably we have to see that how it is impacting that.
Okay. My next question is on land bank. What is the percentage that we own and what is the percentage of that breakup?
Yeah, approximately 800 to 1,000 acres is out of 7,210 acres, which was shown in the presentation.
Okay.
800 to 1,000 acre is something which is owned by us.
Okay.
The rest all is 26-27 years kind of a lease agreement with the farmers or the private party.
Okay. Okay, sir, my next question is like CPP addition, we have done around 210 MW this year. If you see even last year we did 165 odd MW. How do we plan to scale up this to a very big, because we have a huge capital work in progress. What is the addition for this year, what we are aiming at?
You're talking about the CPP, right?
Yeah, CPP. This year I guess we had added 210 MW as per your presentation. How do we scale up such a huge order book which is pending actually? This year, what is the target?
If you see, you know, in the CPP segment, we do billing on milestone basis, whereas the addition of the capacity is shown in the presentation only when we complete the entire project.
Comparing apple to apple it will not be right thing over here.
Okay.
We do the business. Sometimes you might see that in some quarter we might add up a huge capacity because we have just completed that project which was being worked on for almost a year.
Okay.
There will always be an addition gap. Rest be assured, we have strong execution capability and a strong order book in this particular year also.
How much, this year, how much we are planning at, like, to execute? What is the yearly, target that we have from here on?
See, yearly target, as I told in the previous question, we have, you know, committing to grow at 40% to 50% year on year. This year also-
Even on CPP?
Yes, it will be on the both sides.
Around 500 megawatts can we expect, sir, this year?
See, I, commitment on the capacity cannot be given, but on the top line or the revenue side, we can tell you 40%-50%. Capacity, as I told you, depends upon the completion of the entire project, then only we add the capacity.
Sure. My last question is on the IPP. The Khavda project got executed, it got last year, in 2025. Have we lost on the revenue since when, from when did we start the billing, and how much revenue did we miss actually, like, on this?
We have already started the billing.
Okay.
We have already started the billing in the Khavda project. The revenue or the billing got delayed. The plant was ready, everything was ready, but the GSS, the government substation, which was in the scope of the, you know, GSECL, they were not able to complete and that's the reason the, you know, revenue got little bit delayed. With that delay, they have already agreed for extending the PPA terms. Whenever they completed the PPA terms of 25 years, it start post that only.
Okay. Our return on capital employed gets impacted so badly, right? Because of this. The one year postponement.
No, no.
See, not a one-year postponement.
Okay
you know, I think, six to seven month postponement which has happened. After that also they are agreeing. For example, if they have completed a portion of it, they are allocating that, okay, fine, out of the 240, if they have completed 120, I can infuse 120 MW of power to them, and they would pay for that. They're, in piecemeal also they are, you know, accommodating us. I think also at the end they are increasing the tenure of the PPA. I don't think there is a too much impact, you know.
Okay. Now the whole project, the revenue has started?
It's almost started. Some portion of the capacity of GSECL, the government substation, is still pending. They will complete by, I think, in this quarter end they will complete it, and post that the entire revenue will start immediately. As per present, we are getting the partial revenue, whatever is completed.
Okay. Okay. Sir, thank you so much, sir. Thank you so much for answering all the questions.
Thank you.
Thank you, sir.
Thank you.
Thank you. The next question is from the line of CA Vansh from Serene Alpha Analytics. Please go ahead.
Hello, sir. I'm audible?
Yes, you're audible.
Yes, sir. My first question is, sir, on this, increase in the prices of, the inputs that we procure, which will be solar modules, steel and copper. How we are planning to protect our EBITDA margins because of this input cost pressure?
When you talk about the input cost, the major input costs are the panels, turbine, right? Which, which are, you know, almost 60%-70% of the entire project cost. Wherever we have with material contracts. Okay? In this input cost, we already, if you see why we have built up the stock, to hedge this pricing also. That is the reason, if you see, we have given advances to our turbine manufacturers, we have given advances to our panel manufacturers. We have taken stock on our book so that we can, you know, curtail, you can, we can safeguard ourself from the increasing price of the input cost, and that's the reason we are able to maintain our profitability margin also.
Okay. My second question is, sir, on this, promoter pledge. Could you help us understand that, what is the roadmap or timeline, to bring this pledge down?
We already, I mean, in the last call also, quarter call, we have stated that. We already have sanction from State Bank of India, where, you know, around 50% of the promoter share are pledged. These were long-term, I mean, long back before IPO, these shares were pledged to give a collateral security for upcoming project. Now, SBI has already sanctioned and given us in the current sanction of INR 3,000 crore, which they have given for 250, 370 MW. They have given the approval for release of pledge once we complete the COD of this project. Within 3 months after that, I think by March 27th, all the pledge will be released by the bank.
Okay, sir. My last question is, sir, on the guidance part.
Go ahead.
We are saying about 50%-60%, but now we are saying about 40%-50%. Could you help us understand why there is a decrease?
Your voice is cracking. I mean, can you repeat the question?
Yeah. I actually I was asking that earlier we are speaking about 50%-60% growth guidance. Now we are speaking about 40%-50%. Could you help us understand why this decrease?
There I don't see any decrease. 50-60 is there and 40-50 is there. 50 is common in both the place. If you look at all other companies, I don't think any other companies in the similar segment or any other segment are showing a year-over-year 40%-50% growth. In spite of this conditions, we have shown that growth. In spite of the geopolitical conditions, in spite of the, you know, the what we say, the slowdown in the economy, we have been able to grow. I think we should appreciate in spite of this, we have been able to maintain and give fulfill the commitment that we have given.
Okay, sir. Okay, thanks. All the best for future.
Thank you very much.
Thank you. The next question is from the line of Pratik Giri from Shubhlaxmi Research. Please go ahead.
Hi. Thank you for the opportunity. I hope I'm audible.
Yes.
Gentlemen, thank you. I have a few questions on the broader industry level developments which we have been reading and noticing in the last few months. My first question is on. Probably the Government has, from four RE-IAs, probably now only SECI is the only RE-IA. I wanted to get your opinion on how this will shape up the RE sector going forward. We saw significant tendering, you know, in 2022, 2023, probably 2024 also. There was some slowdown. How are you looking at this decision taken by, you know, the leadership of converting four into one, rather converging 4 into 1 RE-IA?
This is your first question?
Yeah, that is the first question.
Okay. Let me answer one by one. The thing is like this, you are telling the RE scenario today. Today you see that what growth is coming in India, today, you know, there is a power demand is about 6%-7% CAGR. Today, if you see that, non-fossil fuel is a penetration idea of Government of India. They have directed about 500 gigawatt is to be installed, and out of 500 gigawatt, 220 gigawatt only for the solar-led, and total that capacity happened about 280 gigawatt non-fossil fuel. Now there is a 54% then the penetrations are there as in today. There's a target to complete the 500 gigawatt, about 45-50 gigawatt per year.
Last year, if you see that, solar and wind combination close to 50 gigawatt installed. Now question is, to looking into the peak demand and making the CAGR and market growth is about the 40-50 gigawatt per year is the value additions. There are two, three things are coming. SECI, they are coming with the bidding process for the remaining, that how to fulfill for that. To support to that bidding, whatever the IPP sectors they are having your all sort of, you know, the resources, land and peak connectivity. All the bidders are quite equipped to submit that quotations and et cetera. Each state also they are coming for the bidding process. Obviously that growth trajectory remains same.
Because of the new technology like BESS compatibility, green hydrogen and floating solars is also coming. Some of the state like declared as a new, the RE jurisdiction like Odisha, they are declared as a RE destination. Obviously to go to that milestone, the 2030 and beyond to that 2030, like green hydrogen policy that has been declared, the free transmission charges up to 2035. Looking into this concept, we are pretty confident the market is wide, big, and all stakeholders are ready to fulfill to that the directives given by Government of India. Yes.
Understood, sir. If you can just, you know, add on to the impact of just one RE-IA, will it lead to, you know, more clearer policy structure, more clearer tendering process going ahead and clearer connectivity challenges getting sorted out because of only one RE-IA, SECI? Will it lead to that, or what is your opinion on that, sir?
You see, single RE-IA has given a clear-cut directive for tendering process and all that SECI is the single point body today. They have been given clear-cut instruction that SECI will be the single point of. Previously there are multiple. Now last four MRE meeting, it has been very clearly told. That directive is very clear to fulfill that SECI will be taking the leading role for that. I think that they are now quite equipped and they are making the all sort of necessary structures. I mean, how to implement to that implementing, the, you know, agency as you said. Personally, I was there in the meeting, obviously we are very confident this is the only agency who can take it forward.
Understood. Understood. My second question is on, you know, the reports which we keep reading about, and not just news sources, even CERC writes about it, about the curtailment of renewable energy, you know, during the peak hours. Probably there's a significant number both in solar and wind. I know this is, you know, beyond our control because this is probably largely a transmission issue. I just wanted to get your understanding, you know, what is the clarity we are getting from the transcos on, you know, getting this issue sorted out. If this continues, probably RE addition will also get hampered in my limited understanding. If you can throw some light there. The transmission issues which we are facing because of curtailment is happening. Yes, over to you.
Now you see, basically curtailment issue is a much discussed topic today in the centrally. Now they are taking that how to address that curtailment and at the same time, if the curtailment happened, how to mitigate to that risk of the curtailment. This is a discussion topic today. Now they are taking how to create a green corridor for the proper power allocation, proper load flow study, so that whatever the power allocation is coming, that can be given and properly that utilized by the load dispatch center to each zone, like in WRLDC, that NLDC and other thing. It is under the discussion.
Mostly, topic is coming 2, 3 predominant state where the curtailment has been found and how to address during peak time of generation, both, predominant 2 sources of the solar and wind. Now it is in the discussion, how that the PGCIL already come to the tendering, that how to create a early kind of power allocation to address to the curtailment issue. It is being discussed all the transco and distribution company, not only central CERC, all sort of ERC also there in the participant. This is the coming time, probably some solution will come. How fast that the project can come. Today, most of these CTU projects, they are coming 2028, 2029, 2030.
That augmentation of power allocation systems are just now way to, you know, create all sort of facilities to address that curtailment issue. That is a dynamic situation. It will be going like that round.
Understood, sir. As of now, there's no deadline for the solution for all this. These all are under discussion and probably will certify in coming quarters, in coming months. Right, sir?
Yes, that is a dynamic situation, not is a concrete decision has come from CERC level or some of the verdict has come from CERC level what kind of process we should follow. Yeah.
Got it. Got it. I have few more questions. Will try to, you know, get an opportunity again. Thank you.
Thank you.
Thank you. The next question is from the line of Monish Kumar, an individual investor. Please go ahead.
Good morning, sir, and congratulations on a very good set of numbers.
Thank you.
My question is that, what will be the portfolio addition in the IPP segment in the coming first six months of the year? With the increase in the portfolio of IPP, can we expect any increase in margins?
Monish, IPP portfolio, if you see that, you know, we have already won a couple of tenders out of which, you know, these 2, 50-70 is already, you know, partially energized and remaining is getting energized. Over and above that, we have already got, you know, financial closure as well as disbursement and working on 150 MW wind, which is again in KPI. Other than that, there is an achievement also which we have yet not signed the PPA, which is expected to come. The IPP portfolio is expected to increase. As you know, the IPP segment, you know, gives you a very strong EBITDA. It's around 85%-90% of EBITDA.
Automatically, once the IPP portfolio capacity increases in this overall revenue segment, it will improve the profitability as we go forward.
Got it, sir. My second question is that the EPC segment also likely to grow. Will the margins stay there or, will the overall EBIT margin of the entire portfolio is going to rise?
See, as we grow the EPC segment, You're right that, you know, the combination has to be seen that how much EPC segment increases and how much IPP segment increases. That combination are always, you know, we always try to see that, you know, our margins are maintained or they are improved. We'll always keep in mind that, you know, our IPP portfolio increase to an extent where it will improve our margin or it will keep the margin stable. The EPC is also growing substantially, as you are aware, that, you know, we have already have INR 5,000 crore of order book in EPC segment also. The more the EPC segment, the margin will come little bit, you know, will get a little bit strained.
We are increasing the IPP segment also to that extent so that we are able to maintain this healthy margin what we are earning right now.
Okay, sir. That would be from my side. Thank you. Thanks a lot. All the best.
Thank you. The next question is on the line of Falguni, an individual investor. Please go ahead. Falguni, please go ahead with your question. Your line is unmuted.
Hello.
Yes, now you are. Please go ahead.
Hi to all the team members and management. First of all, congratulations on a strong and very superb numbers.
Thank you.
Thank you, Falguni.
Yeah, my question is regarding cash flow. As the company continues scaling rapidly, okay, how should investors-
Yeah.
Look at operation, operating cash flow generation and working capital?
As we are growing, you know, the working capital requirement is more on the EPC business. We have strong EPC business.
That's why if you see my working capital has also increased substantially, which has increased our interest costs also. At the same time, we are able to maintain healthy cash flow. With the increase in the working capital, our cash flows are not same. If you see that we have grown almost 100% on the cash flow last year, which were around INR 200 crore, has almost crossed 100%, and as we have crossed INR 400 crore on the cash flow side. We are very cautious and we see to it that we have a proper mix between the working capital that we are utilizing and the revenue that we are clocking with this, with that working capital, so that our operating cash flows are always positive. At the same time, we have CapEx and everything.
We keep in mind that our operating cash flows are positive and CapEx comes from our long-term investments all only. That's why we have been able to give this better numbers or good numbers than this.
All right. Understood. Thank you so much for the great clarification.
Thank you very much.
Thank you. The next question is from the line of Ayush Sharma, an individual investor. Please go ahead. Mr. Sharma, please go ahead with your question.
Yeah. Just wanted to know that, as you previously mentioned, that the Botswana project will be, you know, funded by some subsidiary, step-down subsidiary for KPI, which will be a kind of new entity. Right. Just wanted to understand that what will be the equity mix with that be just like Sun Drops Energia, where the 50% holding will be with the KPI and rest of will be, you know, exposed privately. How that will be done? Just wanted to have a sense on that.
As I said in my earlier answer also, you know, the Botswana company will be a step-down subsidiary of KPI. As per the ODI rules of FEMA, four times of the net worth of the parent company can be invested into the international step-down subsidiary. We are leveraging on the net worth of KPI also, because ultimately it will be a step-down subsidiary, so the consolidation will happen at KPI level. We will leverage on KPI's strong network, which is going to go stronger rather, and then start working on that equity portion, how we'll get in the equity. We have other options on like InvIT and everything, which we might think at that time.
At present, the first commitment of 500 megawatt, we are very comfortable with the existing net worth of KPI, where a portion can be invested for the equity portion. Rest all we already have in principle approval from various international funds for investing into Botswana first.
Awesome. Thank you.
Thank you. The next question is from the line of Parth Kotak from Plus91 Asset Management. Please go ahead.
Hi, thanks for the follow-up. Just 1 clarification on the CPP order book. You mentioned it's INR 546 crores. At the end of the last quarter, if I remember correctly, in the concall we had mentioned that we have an order book of about INR 6,000 crores. This quarter we have an execution of about INR 700+ crores and further addition of about one gigawatt, as I can see from the presentation. I was under the impression that order book in CPP would be well above INR 10,000 crores. If you can just help me understand what's my disc-
No. If you see, I'll give you an exact calculations, you know, out of the total capacity in the order book. Out of this INR 5,406 crore, INR 1,500 crore is already executed.
Okay.
There is another INR 3,679 which is there. I'm only counting about the bigger order book. There are a lot of smaller orders also. If you see, we have added one bigger one, like, we had Aditya Birla, we had Adani Green, we have multiple orders in Sunrock also. CPP order book, what we are showing is the total new order book plus whatever is left from the previous order book that was pending till now.
Okay. Got it.
In the small order, we have multiple small orders in Sunrock, which we have not factored in over there. Yeah.
Got it. Sir, I just want to understand if you are confidently, I think in FY 2027, given the current order book, we will do a 40%-50% growth.
FY 2027, especially in 2028, 2029 on a higher base, do you think we can still continue to grow at 30%, 40% on the CPP side?
Yes, because if you see, you know, there is a huge market. As we are seeing that, you know, the way the world is moving toward renewable energy, we have substantial order books. A lot of tenders are coming, as Dr. Alok Das had also specified on, you know, We had a discussion with stakeholders, government stakeholders. We are sure that, you know, we will be able to contribute, you know, 40%-50% growth YOY with the existing order book and with the new order book that we'll be taking over in this year and the next year.
Yeah.
Also in addition to that, you know, there are so many tenders that happened and by what Salim Yahoo was telling, we have just got order from Adani Green Energy and other things. Similar, there are so many IPP customer, they need some sort of partner for their execution partner, whereby we are also talking some of the new funnel for such type of activity. Obviously there is a profile where we can really stick into that our target and that thing. There are more than 20, 30 gigawatt projects are to be scheduled to be commissioned for next two years.
Sure, sir. Thanks. Thanks.
Yeah.
That's very helpful.
Thank you. The next question is from the line of Kartik Sharma from Anand Rathi Institutional Equities. Please go ahead.
Hi, sir. Am I audible?
Yes, absolutely.
Hi, sir. Thanks for taking the question, and congratulations on a great set of numbers.
Thank you.
I just have one question on each of your segment, IPP and CPP. We have 1.61 approximately WIP in the IPP segment. Can you give us some CODs for the work in progress?
See, I'll give you the CODs for the work in progress. Like 250 MW we have, you know, October 2026. Another 370 MW we have again October 2026. The new 150 MW we have November 2027. The other one, there is another 300 MW achievement, which we cannot give the COD because the PPA is yet to be signed. Once you sign the PPA, you get approximately 18-24 months for signing that. Yeah.
Got it. Okay, sir. Thank you. On the CPP side, from the previous participant, just continuing on that, can you just give us some highlight on as to what realization do we get on our EPC business?
EPC business, if you see my, you know, EBITDA on EPC business is approximately 16%-18%, sometimes depending upon the kind of a project. The project with material, it might have a different margin. If it is only balance of plant or, you know, it's only EPC business without material, then it is a different margin. You know, combined you can see that, you know, we are, on the EPC side, we get around 16%-18% margin. On the IPP side, we have around 85% odd margin. Combined EBITDA of the company comes at around 33%-36%.
Yeah. Understood, sir. With that, I understand that is the margin, but I wanted to understand the realization. For example, you have given your, let's say your order book is around, like you said, INR 5,246 crores. How do we convert that into megawatt or gigawatt? What is the number or conversion ratio that you use?
If I look at this 5246 in a broader sense, it might go up to 2.7 gigawatt. There are orders which are, you know, with material, without. If I calculate the amount of, you know, each order with the capacity will not tie up because some projects are with material, some are without material. That's why. 2.7 gigawatt is something that you can, you know, around about the size of the orders that we have on the EPC side.
Okay. This INR 2.7 is including the module procurement and the turbine procurement.
That's why. 2.7 is the size of the order. In some orders, there might not be module, might not be part of it. In some orders it might be part of it.
You got a breakup for that? Is there a breakup for that?
Yes.
How much is with and without?
Yeah. No, no. We cannot give that breakup in the public domain.
Okay.
Because it's our business strategy, you know. But otherwise everybody will come to know what is our pricing and everything, right?
Understood. Understood, sir. Fair point. Okay. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Disha from Sapphire Capital. Please go ahead.
Hello. Am I audible, sir?
Yes, Disha, you are.
Yes, thank you so much for this opportunity, and congratulations for a good set of number.
Thank you.
Firstly, sir, on the BESS segment side, I just want to know what sort of growth do you see in that segment and how, what are the EBITDA margins that we see in these projects?
In Battery Energy Storage System, I'll just give you a brief. This is one upcoming you know, segment. The reason is that, you know, majority of the solar power has, you know, there's a issue of, you know, FDRE on the renewable energy power. Battery will bring that big dispatch renewable energy kind of a system, which most of the you know, institutions, government institution or the DISCOM want. Margins depend upon different rules because there at present there are the Viability Gap Funding and everything. Government is supporting this Battery Energy Storage System. I think the margin will be something on, because a lot of project will be on the rental, where you have to provide the rental services of setting up the battery system and providing the power.
Margin will not be as lucrative as an IPP or something, but it will be at a decent range. Majority of the, you know, depends upon the pricing at which you win the tender. Exact margin cannot be stated. I would request Dr. Alok Das also to give a little bit on the scenario how the battery energy storage system segment is shaping up in coming.
You see, basically, why this Battery Energy Storage System are being, you know, the most of the states have considered because of, you know, discipline in power, because mostly the renewable energy today mostly dominated by wind and solar. Wind is coming on the day little, not inconsistent, but nighttime is more. Solar, they are coming in the daytime, but night there is nothing. Just to maintain a discipline based on the demand of the state distribution company. There is a concept has come, storage. Now that storage come to the Battery Energy Storage, where daytime they can use the surplus power. Day and night they can store in the battery. When the state distribution company require the power, so that is to be discharged. That is the concept that's coming, the Battery Energy Storage.
If that battery energy storage is coming, it just a part of the system, there's a good discipline would be coming. That market today is coming enormous. I mean, all states, be it Rajasthan, Maharashtra, even has declared that the policy. Gujarat has declared the policy. That target in gigawatt scale. If you take the gigawatt scale battery, that is what the market is coming. What rate, I mean, I mean it should discharge, depend on the demand curve or all the distribution curve when it is your TODs or time of the day tariff slots. They will define the tariff by which the battery will discharge. It is a very, very primitive stage, very, very initial stage, how the whole system would be working.
This is what we can gather, what tariff would be coming. Market is, because today there is a mandatory that BESS should be a part of the system. Otherwise, renewable energy cannot be compatible with the grid management system. That is a mandatory requirement for the battery storage.
Right. Right. What is the current order book that we have for the BESS?
At present on the BSS or the Battery Energy Storage System, we have 2 major orders. You know, we have 445 oblique eight.
INR 890.
890 MWh, which we have won that tender. Another 1 is 120/240 MWh. These two orders we already have, which are signed. I mean, the end user is end customer is GUVNL. We have got that order book present.
Overall, sir, how do you see the pipeline and what sort of order inflow are we targeting for FY 2027?
Most of the biddings are coming, be it from the SECI and all states, they are coming on the bidding process. The pipeline, as I said, it is a pan-India basis. There are, you know, gigawatt scale bidding is coming, and mostly KPI is participating most of the bid. Obviously it is because it is a CERC coming as a mandatory option, so we are in the pathway to participate in the bid. Most of the battery energy storage is coming through bid only. So that is what we are planning for that.
Okay. That's it from my side. Thank you so much, and all the best.
Thank you.
Thank you. The next question is from the line of Anil Sarin from K16 Advisors. Please go ahead.
Thank you for the opportunity. Just wanted some clarity in the recently declared results. One. The other income has gone up from roughly INR 20 crores to roughly INR 45 crores. Why is that? Two. The depreciation has more than doubled. Three. The finance charges have more than doubled. If you could throw light on these three aspects.
Okay. If you see, the other income has increased substantially on account of interest on fixed deposit and amount that we had got throughout the year. Because of this, the other income has increased substantially. If you look at the depreciation portion, we have added assets. If you add the assets, automatically the depreciation portion, you know, increases with the add in the assets. If you see on the asset side, we have increased substantially on the KPI asset council level also, if you see. Last year, you know, the asset side was around INR 2,000-INR 3,000. As I told in my opening remarks also, the asset has almost increased to INR 5,000+ kind of a thing.
On the finance cost, which has increased substantially, if you remember last year, we had done a QIP. We had done this QIP had raised funds due to which we were net due at some point of time. During that period, the interest cost was not available at, I mean, was not there, because of which the last year interest seemed to be lower. This year we have increased on our working capital limits also because we have increased on the top line, and due to which the interest cost has also increased substantially.
Got it. Sorry, you were saying something. Please complete.
No, no. You can go ahead. No.
Okay. The debtor days have sort of gone down, but the inventory days have gone up. If you could throw some light on that.
The inventory days, as I told you know, we have a huge order book. For that to, you know, the geopolitical conditions, we know that the availability of turbine panels will be an issue. We have infused funds in stocking up the inventory. 30%-40% of the order book that I have, I at present have inventory, which is a decent size. Debtor days, we have, I mean, we have been able to, you know, get at, you know, what we say the payments on time and everything. Debtor days, if you compare with the increase in the top line, debtors have been at the same level. That's why at a days level it looks little bit reduced. Inventory, yes, inventory we have added.
As I told earlier in my earlier question also, to cater to our upcoming orders, we have to execute it in a timely manner. To avoid any delay on account of geopolitical conditions, we asked piling up the inventory, and we have added the inventory so that we can execute in a timely manner.
Got it. That's nice to know. Your capacity to be delivered. Right now we are on the IPP side, we are a little shy of a gigawatt, some 964 or something.
Yeah.
Please, correct me if I'm wrong.
Right. Right.
Where at the halfway mark in the current financial year, fiscal 2027, what would this capacity, IPP capacity stand at? And once we complete fiscal 2027, what would be the capacity at that point in time?
996, which was as of 31st March 2026. Okay. Today I'm sitting, we have already crossed the 1 GW mark. As I told, in my earlier answer also that, you know, whatever capacity that we are doing on IPP, we can do it in a phase-wise manner. We have already got the CEIG approvals and everything, and we have already crossed the 1 GW. Total capacity, if I look at, you know, on a DC level, I might go above 1. with this and the existing capacity of approximately, you know, 500+ and 1. 1.6 or 1.7 GW is something that we'll be adding up. Majority of which will be this year. Partially I think, we'll go in case if it is available.
We are planning to get it in this financial year, 1.7 gigawatt on the IPP side.
Got it. Correspondingly, what I have noticed, and you may please enlighten me more about it, that gradually the EBITDA margin is increasing quarter by quarter.
In the fourth quarter it went up to 36.6% without counting other income. Can one expect that the EBITDA margin will go further high as the share of IPP increases?
That is what is our game plan also, that increase the IPP portion in the overall mix of IPP and CPP. At the same time, you know, if I keep on increasing my top line with CPP also because I have to increase that business also. We are sure that, you know, our EBITDA will grow. I mean, if I reduce the CPP, automatically the margins will grow, but my top line will curtail to some extent. We don't want that. We want the margins to be as we have done. We need to be maintained. We don't want it to go down or increase only. At the same time, CPP business should also increase.
Okay. This is more of a broader industry question. See, the Indian government has recently got a scare and a shock from the Iran war situation. One would imagine that there would be better appreciation of renewable energy. Do you see any change in the way policymakers are behaving with you in terms of wanting greater renewable energy, and thereby does that translate into better business opportunities for you? Not to mention, I mean, you anyway are growing very, very well. As a result of the Iran, U.S. conflict, any changes in the environment that you are seeing?
Yes, sir. Now this is a complete paradigm shifts are happening in India because we are mostly dependent on the fuel import in the economy. Now there's a clear-cut directives from the central government. You should use maximum non-fossil fuel-based resources, which means renewables is coming in the very much limelight. Now this government authorized ministry has been taking a very strong steps at how to utilize and how to potential mapping very fast. That whole demand of India, which is, this will be heating up to the 300, you know, megawatt per day, something like that, your demand is coming. Peak demand today is coming about 256 gigawatt, and this is expected about 300 gigawatt.
To map that demand, there's a clear-cut directive maximum renewable energy has to be explored. Be it rural or urban or just any kind of that industry, it is to be gone through a project by renewable energy. For example, even the steel industries they need the hydrogen. Previously it is the coal-based. Now there are clear-cut directives it is to be green hydrogen-based. Now green hydrogen, the obligation that is driven by the policy, it is been declared already. By 2035, they have given certain relaxation in the transmission charges so that all industry for green hydrogen, they can go for such type of industry, number one.
Number two, even the agri volt, all kind of agricultures where the maximum diesel, etc., now the government is declaring, "So you have to go for the solar installation." That market is coming more than, if you ask me that market is more than 1.2 GW. 1.2 GW market is there short term, and long term it should be much more GW scale even for the agricultural. If it is all captive projects, all kind of that industrial use, it has been given directives, at least they should go for the renewable energy initiatives. Government is not for there, what about the renewable purchase obligation? There is coming a policy it is to be mandated now. All company, they should go. This is their demand to meet to obligatory by the renewable energy only.
It is to be regulated by the state distribution company and also state regulatory system. These are the few changes being adopted by the Government of India and State Government. With that hope, we are expecting being a KPI. It is a good platform for an opportunity to scale forward.
Great. No, thank you. Just one follow-up, one question on that. In fact, I have two. I will just save the first one first. That, you know, the operating cash flow has improved quite well actually. It has more than doubled this year, which is a positive development. As you go ahead with greater and greater IPP, what will happen to the operating cash flow and the OCF flow through? Today, roughly whatever I can see, around 44%-45% of the declared EBITDA has been delivered as cash flow in the hands of the company. If you can comment on how the cash flow will evolve as IPP becomes more dominant. Unless, I mean, you are saying that CPP also is keeping pace, so the balance will not change. I just wanted to know.
Yeah
good thing OCF has gone up, but, what is the outlook on OCF?
We have to understand that IPP is a segment which gives us a very strong cash flows. One is because of its strong EBITDA. At the same time, IPP does not require any working capital. Increase in IPP will have very, you know, it can reserve a positive impact on the cash flows because it adds to the net cash accruals but doesn't take anything in the working capital. Just like CPP, it, you know, it requires working capital. IPP doesn't require working capital. You can understand if there is a working capital, automatically your cash flow from operations get hit if there is a lot of, you know, working capital which is utilized.
Here it is clear cut that IPP increase will increase the cash flow and will have very good positive impact on the overall operating cash flows of the company. That was the reason, one of the reason for having this good numbers on the cash flow side also.
Okay, okay. This on the BESS side, B-E-S-S, BESS side, is the profitability more or unchanged or lower than your regular business of IPP and EPC that you do?
Regular IPP business has got an EBITDA of around 85%-90%, which we might not see, provided, I mean, if there is a very good BESS project which has come with a very good, what is the pricing, it can give up to that extent. At present, we have not seen any BESS project which can give up to 85%-90% of EBITDA margin.
Okay. In fact, in this one though you will be having Viability Gap Funding. It seems that the battery prices haven't come down enough that on its own it becomes a viable project. Including the VGF, what margins can one expect in a BESS project?
See, I told you, no? The expecting margin because all the tenders have been floated at different pricing. VGF is also at different. Somewhere it is, you know, INR 18 lakh per MW or somewhere it is INR 27 lakh. Different, you know, tenders have been bid at different prices. Speaking about the margin, yes, there is not a very strong margin, but there are margin depending upon the at what pricing the projects have been taken and how they will get executed. Because again, the battery and technology, whether you are using lithium, whether you are using sodium, that is also dependent upon the technology that you might be using and the pricing at which the batteries are taken.
These batteries have 25 years?
No. Batteries have 12 years kind of a PP.
Okay. No, no.
Yeah. Just hold on. I'm sorry. I know You see, just your question about this, battery storage, what Salim was telling, yes, that is very much correct. Now, you see, VGF can be a long-term solution. When that India is driving towards, you know, 250 GWh by 2030. Whatever VGF first has been declared, later on, there should be some facility management to be created in-house in India, and most of the company is doing like that way. When this volume come, obviously there should be cost reductions. As on today, the scenario, what he told, Mr. Salim, that is the situation today.
Okay. No, thank you. Thank you, sir. What would be the IRR of a BESS project? What is the IRR of an IPP project?
Your sound was not very clear.
Let me say again. The equity IRR of the regular IPP projects, in the past you have mentioned, I think it is 15%, 16% or so. Maybe it is higher, I don't know. You can please clarify. Compared to that, what is the equity IRR of a BESS project?
I think we are losing your half of the words. We are not able to hear.
Your voice is breaking.
Operator, is there any issue at our side or operator?
Can you hear me better now? Can you hear me better now? Hello?
Yes.
Yes, sir. This is better.
Is it better now? I'll repeat my question.
No, it is cracking in the middle. I mean, we are not able to hear the entire sentence. We are able to miss out on some words, sir.
Okay. Give me one last chance. Otherwise we will switch. We can go to the next speaker.
Yes, we can. You can just join the queue.
Mr. Salim, you are audible, sir. Please go ahead.
Okay. Thank you.
I am audible, but the question, participant who is asking question, we are not able to hear them.
Yeah, the participant's name is Mr. Anil Sarin. Even, sir, right now he is audible. Let him go ahead with his question.
No, even your voice is a little bit I mean, it's cutting.
Oh, okay. One last chance, and then we can move to the next speaker. If you can, please give me a chance.
Still there's a problem, sir. I think you can communicate to us, and we can revert to you.
Mr. Sarin, I believe the management is unable to hear us. Can you please rejoin the queue or you can communicate with the management?
Yeah, sure. Please. All right.
Thank you.
Next speaker. Yeah.
We'll move to the next question, which is from the line of Ashish Rampuria, an individual investor. Please go ahead.
Hi, Salimji, is my voice audible to you?
I think even we are not audible. I mean, the operator itself is not audible properly. There is some gap between the sentences that we are hearing.
Let me please check the connection for management. Just give me a moment. Ladies and gentlemen, please stay connected. Ladies and gentlemen, thank you for patiently holding. Sir, you may please go ahead. We have the questioner, Mr. Ashish Rampuria. Sir, you can go ahead with your question.
Sure.
Madam, your voice is not clear. It is breaking in between.
It is still breaking, operator. I think they are in a bad network.
I think there is some system glitch, yeah.
There is some glitch.
Mr. Rampuria, sir, are you able to hear me clearly?
I can hear you, but I think they cannot hear us. I think the management's still in a bad network.
Yes. I was just confirming with management. Sir, are you able to hear us? Ladies and gentlemen, please stay connected. Ladies and gentlemen, thank you for patiently holding. We have management line reconnected. Over to you, sir.
Perfect. Okay. Salimji, can you hear me?
Yes, yes, Ashish.
Hi. Salim, Ashish here. See, Salim,
Hi
I've been seeing the company for quite some time. Farugji historically used to talk about 70%-80% CAGR till FY 2030, then it became 60%-70%. Last two quarters he was speaking 50%-60% CAGR. Last three, four days in interviews now he started talking 40%-50% CAGR. I'm all talking till FY 2030. Is there a structural slowdown that you all are seeing, hence this forecast of growth is reducing? If you can just throw some light on that.
Let's see. CAGR what we have shown, it's around 50%, 60% or 40%, 50%. We are growing at a very strong pace. We already said that. Okay. Now, if you look at, you, if I ask somebody, you tell me, companies which are growing at 40%-50%, 50%-60% in the renewable sector. There are hardly any company which has grown at this pace. We are growing at a very. It also depends upon the sector. If the sector, if you see what growth it was giving earlier, the sector growth has also little bit, what we say, curtailed. At the same time, we have not curtailed too much. We have grown at a very good rate. We are expecting to come at a 40%-50% rate, growth rate, in the upcoming years also.
Got it. I mean, fair enough. I'm not questioning whether it's slow or I'm just trying to understand, if I look at the last two, three -year journey or even longer journey, we were speaking of a higher CAGR every year, and I'm talking about longer, I'm not talking of one year, and we are sort of now highlighting a lower value.
Yeah
which is okay.
Yeah, that's what. You know, at that time, if you see, the sector was very promising at that time also, right now also. With the geopolitical conditions, you know, you have seen some kind of, you know, what we say, less acceleration, I would say. I won't say slowdown. It's a less acceleration compared to what acceleration was there earlier. We are also in line with the same acceleration. We are growing in the same pace. It's only that the overall. If you see, we might grow at more than 60%-70% also, depending upon if the sector gives you that support. It has to be also the geopolitical condition to be taken into consideration while we look at the sector.
When we gave that CAGR, the sector was very promising and very booming. The acceleration of, to that extent has not been in the sector. That's why if you see, we are also growing at the same pace where the sector has, you know, slowed the acceleration. We are, again, I'm reiterating this to, for my shareholders and stakeholders that this is something what we have, you know, achieved over a period of time and we are maintaining that growth strategy or the growth momentum which we have shown over a period of time.
Fair enough. Currently we are saying 40%-50% CAGR till FY 2013.
Yes.
Is that the understanding? Fair. Okay. Secondly, if I look at it also last two years in the investor presentation, we are seeing we'll go to nearby states, right?
Your voice is cracking.
Is it audible? Is it better now? Hello.
Again.
Can you hear me, Salim Yahoo?
Yes. Yes.
I think we have been talking about nearby states for quite some time, and obviously, I think I saw the recent order of Rajasthan. In your investor presentation, we are highlighting Odisha, CPP Telangana, other states. Where are we on that journey? Are we going?
Not able to hear.
Hello.
Again, voice is breaking. Operator.
Sir, actually Mr. Rampuria is clearly audible to me.
Madam, we are not able to hear you. Neither you also, I mean. We are having issue. I mean, your voice is also breaking.
Okay, let me just check. Just a moment. Ladies and gentlemen, thank you for patiently holding. We have management reconnected. Over to you, sir
Okay.
Yeah.
Thanks. Can you hear me, Salim?
Yes, yes, Ashish Rampuria. Sorry for the technical glitch which, you know, you have to wait for that.
No, no, it happens.
Okay.
No, no, it happens all the time. No, no, don't worry. See, the nearby states, Salimji, we have been talking it for quite some time, right? I think I saw some progress on the Rajasthan front. What about other states, right? When do we expect that we'll be able to venture out to those states?
You see, the thing is like this. Now today we are venturing into Rajasthan, as you said very correctly. We have already entered some of the states like Karnataka. We have already taken some of the projects to be some of the resources we have taken, so we'll be doing some projects there. We are also participating in the state of the Odisha for their bidding process of floating solar initiative. These states, when they are coming on the bidding process, we are, I mean, in the, you know, queue to participate for there. In a nutshell, I mean, apart from Gujarat, we are there in Rajasthan, Odisha and Karnataka, and we are now planning to enter into the MP also and Maharashtra.
Got it. Tell me, Maharashtra was my question, right? Like, because I think Maharashtra has announced a very strong focus on renewables. We entered or won a project about two years ago, but I've not seen too much traction in Maharashtra. Any reason why Maharashtra was not a focus for us?
You see, Maharashtra now, very recent, they have declared with the base compatible projects. Now they have declared more than 100 kW, just any project to be based on the base. Now there's a lot of tractions coming in the Maharashtra, particularly, those projects who need the round-the-clock operation data centers and all. There are some policy also declared just in favor of renewable energy. We are getting a lot of traction. At present, we are in the search of good resources because you know that renewable energy should come always in the grid connectivity and land-
Yeah.
Et cetera. KPI is already doing some of the searching for all sort of resource very advanced stage. You will be getting very fast, you know, hearing from our side about some Maharashtra projects are happening.
Got it. Any color on your order pipeline? I mean, not I think reported order pipe value is part of the pipeline that's already won. In terms of bids that we have placed, any color on that?
On the bid pipeline.
Yeah.
4-5 MW bid which we are, you know, trying to participate in.
You mean four to five gigawatts, right?
gigawatt. Yes, yes.
Four to five gigawatt overall bid.
What should we expect as in terms of our win ratio for these 4 to 5 based on historical?
In the past, our win ratio has been at 75%. Going forward, we'll be very selective. We'll select high margin kind of tenders, and we'll try to gain as much as, you know, the faster execution kind of tenders. We'll focus more on that.
Got it. Botswana, any update? Have we moved on the 500 MW? Have we got that consult from the, I mean?
I already answered that question that, yes, we have.
Sorry, I joined a bit late. I will hear, right. No worries.
Not an issue. Yes, I mean, we have already moved ahead substantially. Companies are formed. It's a subsidiary of KPI, and very shortly you'll see the PPA getting signed, and we'll be starting with our execution.
Got it. Thank you. Appreciate it, and all the best.
Thank you.
Thank you.
Thanks.
Thank you. The next question is from the line of Monish Kumar, an individual investor. Please go ahead.
Thank you for the follow-up, sir. My question, is, with respect to, the IPP, debit. Hello?
Yeah, please carry on.
Mr. Kumar, please go ahead with your question. We have lost the line for Mr. Kumar. We'll move to the next question, which is from the line of CA Vansh from CA & Alpha Analytics. Please go ahead.
Thank you for the opportunity again, sir. I have a question that, this BESS revenue, when will this start contributing to our top line, by FY 2027 or FY 2028?
You're talking about the IPP project, right?
This BESS, B-E-S-S, Battery Energy Storage System.
BESS. BESS, I think, you know, we'll complete it in this financial year most probably, and next year, 2027, 2028 we'll find, you know, the revenue getting clocked into our, you know, top line of SunRoam.
By FY 2028, right?
27, 28, yeah. Fine.
Okay, sir.
Thank you. Thank you. Ladies and gentlemen, that was the last question for today. With that, I now hand the conference over to management for closing comments.
Yeah. Thank you. Now our Whole-Time Director, Mr. Mohmed Sohil Yusufbhai Dabhoya, he will then brief on the operational part of our business.
Yes.
Thank you, Mr. Jain. Good afternoon, ladies and gentlemen. I would like to take this opportunity to highlight how we see our growth trajectory in the coming years. We are now growing at a strong pace of 40%-50% YOY. Our team is fully equipped and well prepared to support this growth journey. We are on track to achieve our 10 gigawatt target by 2030, and we are confident that we will reach this milestone ahead of schedule. Our vision extends beyond India. We aim to expand globally and develop renewable energy projects in international markets, leveraging our proven execution capabilities and industry expertise. At the same time, our strategic focus is to increase the share of our IPP business, which will help us build a stable annuity income stream for the next 25 years. Thank you.
Thank you once again for your continued trust and support. We remain committed to creating long-term value for all our stakeholders. Thank you. Thank you. Over to you, Mr. Jain.
Thank you. At last, I would like to convey my heartiest thanks to all the participants for their active participation. I hope that we have been able to reply to all your queries to your fullest satisfaction. Once again, we look forward to your continued support and confidence in the company and company's operations. Thank you. Thank you very much.
Thank you. On behalf of Share India Securities, that concludes this conference. Thank you for joining us. You may now disconnect your line.