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Q1-2026 Earnings Call
AI Summary
Earnings Call on Aug 6, 2025
Record Revenue: KPI Green Energy reported its fifth consecutive record quarter, with total revenue reaching INR 614 crores, up 75% YoY.
Profit Growth: Profit after tax jumped 68% to INR 111 crores, while EBITDA rose 64% to INR 217 crores.
Strong Order Book: The company has over INR 5,000 crores of IPP projects and INR 4,000 crores of CPP orders in hand, supporting growth visibility.
Margin Outlook: PAT margins are expected to remain stable in the 16–18% range despite rapid top-line growth.
BESS Expansion: KPI Green is targeting INR 3,000–4,000 crores in battery energy storage system (BESS) tenders, with a strategic partnership with Delta Electronics.
Capacity Growth: Installed and upcoming IPP and CPP capacity now totals 4 GW, with major projects scheduled for phased completion by September 2026.
Debt Position: Debt-to-equity remains conservative at 0.5:1 and is expected to stay below 2:1 despite upcoming NCD issuance.
Guidance Reaffirmed: Management is confident of achieving 60–70% revenue growth for the year, in line with previous guidance.
KPI Green Energy delivered a record-setting quarter, with 75% year-on-year revenue growth to INR 614 crores and 68% growth in profit after tax. This performance marks the company's fifth consecutive record quarter, driven by strong execution in both its independent power producer (IPP) and captive power producer (CPP) segments.
The company holds over INR 5,000 crores of IPP projects and approximately INR 4,000 crores of CPP orders in hand, providing solid revenue visibility for fiscal years 2026 and 2027. Additionally, there is a robust pipeline of tenders for both traditional solar/wind/hybrid and battery energy storage system (BESS) projects, with the pipeline exceeding INR 8,000–9,000 crores.
Installed and upcoming IPP and CPP capacity now totals 4 GW, supported by a land bank of over 6,000 acres and more than 3.2 GW of power evacuation capacity. Major projects, including 250 MW solar and 370 MW hybrid installations, are scheduled for phased completion by September 2026, with some capacity additions and revenue recognition expected to begin within the next few quarters.
PAT margins are expected to remain stable in the 16–18% range, aided by the high-margin IPP business (EBITDA 75–80%) and steady performance in the CPP segment (EBITDA ~20%). Management noted that margins fluctuate due to the mix of service and supply billing, but the growth in IPP share should help sustain overall profitability.
KPI Green has entered the battery energy storage system (BESS) space, targeting INR 3,000–4,000 crores in tenders and focusing on both small and large-scale projects. A subsidiary, Sun Drops Energia, will spearhead most BESS efforts, with technology partnership from Delta Electronics. Management sees BESS as a future growth area and expects to maintain healthy margins in this evolving segment.
Current debt-to-equity is a conservative 0.5:1, and even after issuing INR 700 crores in new NCDs, management expects the ratio to remain below 2:1. No further equity dilution is planned in the near term, and the company aims to keep leverage well below industry averages.
The main risks identified are execution-related, particularly around land and transmission (evacuation) availability. However, the company has already secured substantial evacuation approvals and land banks, and management expressed high confidence in their ability to execute due to their long experience and robust project preparation.
Regarding changes in government policy, such as the phase-out of ISTS charge waivers, management clarified that KPI Green is insulated as it does not currently participate in ISTS projects. The company sees strong ongoing demand in the renewables sector due to government targets and the replacement of conventional power plants.
Ladies and gentlemen, good day, and welcome to the KPI Green Energy Limited Q1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Harsh Patel. Thank you, and over to you, sir.
Thank you, and good evening, everyone. I would like to congratulate KPI Green on a very good set of numbers. On behalf of Share India Securities, I will welcome all to Q1 FY '26 Earnings Conference Call of KPI Green Energy.
We are pleased to have with us the management team represented by Mr. Sohil Dabhoya, the Whole-Time Director; Dr. Alok Das, Group CEO; and Mr. Salim Yahoo, Chief Financial Officer of the company.
We will have the opening remarks from the management followed by Q&A session. Thank you, and over to you, sir.
Hello, everyone. Good evening, and welcome all to the KPI Green Energy conference call. Speaking first is Siddharth here, part of the Chairman's office at KP Group. And it's a privilege for me to introduce you to the conference call of a company which is passionately committed to powering India's sustainable future. Today, we stand at the forefront of the very impressive and very fast-growing renewable energy transition industry within India, and we are dedicated to developing a clean, innovative power solutions for the Indian landscape.
As you would be well aware and for new investors who are joining in as well, our whole strength lies in harnessing our EPC expertise, both through the in-built expertise we have gained since our incorporation in 2008 as well as leveraging the key strengths of our other sister companies, which are part of KP Group.
We are not just building power plants. We're building a cleaner tomorrow. We strive to be a trusted partner in India's energy journey, contributing to meaningful and national sustainability goals. As you would be aware, through the various network channels that we are pushing out, we are also progressing very fast on the technology front here, having state-of-the-art O&M, NOC and robot facilities that we incorporate in our project.
Now I would let our CFO, Mr. Salim Yahoo, speak over what the performance has been in the last quarter and what we are aiming for in the future going ahead. Salim, sir, over to you.
Thank you, Siddharth. Good afternoon, everyone. I'm Salim Yahoo, CFO of KPI Green Energy Limited, and I extend a warm welcome to all investors, analysts, stakeholders who have joined us today for the quarter 1 FY '25-'26 earnings call of KPI Green Energy Limited.
We are pleased to report yet another record-breaking quarter, making our fifth consecutive quarter of highest ever revenue driven by strong execution, customer trust and continued expansion across both our IPP, that is independent power producer and CPP that is captive power producer segment.
Speaking about the key highlights of this quarter. On the financial side, if I give the synopsis of the financials, total revenue stood at INR 614 crores, a robust growth of 75% over INR 350 crores in quarter 1 of FY '25. EBITDA rose to INR 217 crores, a 64% increase. PBT or profit before tax came in at INR 149 crores, up 64% from INR 91 crores last year. Profit after tax grew by 68% to INR 111 crores compared to INR 66 crores in quarter 1 of FY '25. The basic EPS grew by 44%, reaching INR 5.28 from INR 3.66. We also generated INR 163 crores in cash profit, marking a strong 92% year-on-year growth. Our financial performance reflects disciplined execution, prudent capital allocation and strong annuity income from our growing IPP portfolio.
A bit highlight on the strategic projects and the revenue visibility. We currently have three major IPP projects under execution, a 250-megawatt solar project on the AC side. On the DC, it will be calculated as 350-megawatt DC, a 370-megawatt hybrid project. On the DC side, it will be 679-megawatt DC. And 150-megawatt stand-alone wind projects. Together, this project represent a total execution size of INR 5,000 crores. We are targeting completing -- completion of the 250-megawatt pure solar 370-megawatt hybrid project by September '26 in a phased manner.
Importantly, part commissioning and revenue recognition are expected to begin within the next few quarters, leading to an early monetization and cash flow generation. These are backed by 25 years long-term PPA signed with GUVNL one of the best remaster, ensuring a stable annuity income and further enhancing our long-term earnings visibility.
On the strategic development side, during our quarter, we have undertook several initiatives to enhance our leadership and technological edge in the renewable space. We received LOI that is a letter of intent from GUVNL for our 150-megawatt grid-connected wind project, bolstering our hybrid pipeline. We signed three strategic MOUs with Delta Electronics India, focusing on battery energy storage system, green hydrogen and EV charging infrastructure advanced solar PV inverters. These alliances combine Delta Global Technology with KPI proven execution to deliver a next-generation clean energy solution in India and globally.
The overall snapshot of the company as on June 30, 2025, end of the quarter, it stands at installed and upcoming IPP capacity stands at 1.7 gigawatt, installed and upcoming CPP capacity of 2.3-plus gigawatts, a total cumulative portfolio of 4 gigawatts, a land bank of 6,275 acres. Along with that, we have power evacuation capacity of over 3.2 gigawatts. Orders in hand exceeds 3 gigawatts, including capacities where LOI is awaited. Presence across 108 project sites in multiple DISCOMs and CTUs. We have network operations center with IBM Maximo Renewables for a real-time monitoring and performance optimization.
In conclusion, quarter 1 of FY '26 has laid a strong foundation for an ambitious year ahead. With robust financial strategic alliance over 3 gigawatt in order and growing IPP portfolio of 503-plus megawatts, we remain committed to deliver sustainable value to all our stakeholders.
I sincerely thank our investors, partners, employees, Board members, stakeholders for our -- for your continued trust and belief in the KPI Green Energy mission.
We now open the floor for your questions and answers. Thank you very much.
[Operator Instructions] Our first question comes from the line of Manav, an investor.
Congratulations sir on a good set of numbers. My question is regarding on pledge, pledge shares. So when we had the December con call, it was mentioned that the loan has already been repaid and you guys are already in talks with SBI to release the pledge. Is there any update on that?
Yes. Manav, we have already sent the request letter to SBI. And SBI has already taken it in and the request is going to go into the Board because we are one of the biggest in Surat, if you compare, we are the biggest customer of SBI.
So that is already proposed and SBI has given verbally green signal for that, only that it has to be approved in the Board, and it will take a little time for the procedure to be completed. But nevertheless, we have already given the request and we have showed our intention to release this pledge from SBI also.
Any tentative time line, sir, if you can tell us?
Sir, SBI -- see, I cannot control the Board meeting of SBI. So I can assure you what we see that by next quarter, I think we will have constructive, at least approvals and sanctions from SBI. Later on, the pledge and the formalities and everything might take time, but we are gung-ho that SBI Board will approve it...
Our next question comes from the line of CA Garvit Goyal from Nvest Analytics Advisory LLP.
Congrats for a decent execution. My question is on the sector level. Like do you see any change in the sector, which can negatively impact KPI Green like the current environment we are seeing. There is a change in stance by government on the waiver of ISTS charges, right? So do you see any impact of this on newer order inflows in the industry and thus impacting the KPI Green? And for that matter, any kind of negative stance that the government is taking. Do you see any such changes happening at the industry level, which can impact our order inflows in near to medium term?
Yes, Ravi, this is Dr. Alok speaking on KPI. Thing is like this, whatever we are doing the project today, it is restricted to state bidding on under STU. While going forward, your question about ISTS, that benefit, which is sunset has happened in month of June.
So if you see that policy, it is a trajectory. So if there is a project beyond 2025, so firstly, it is 100%, then 75%, then that type of trajectory is there. So obviously, if any project is coming to the ISTS, so obviously, there is some delta decrement is there, while they are taking into the -- your tariff coating in the bidding process. As for the KPI is concerned, we are not even today participating in any kind of ISTS project. So we are insulated for that.
So this kind of thing is not going to impact any projected order inflows at the internal level, right?
Yes, yes, yes.
Understood. And secondly, on the guidance part, this quarter was pretty decent despite early monsoon and all. Do you think like we will be able to easily outperform the guidance that we have given earlier for this year?
So see, if you ask today, there is a total gigawatt pending out of government guidance of this 500 gigawatt, 230 to completed. So balance there is a 45 gigawatts. And if you see the total bidding process happened, the tender process and all, so it is all happening. So whatever direction and guidance is coming, but still there's a demand because of now that conventional power plant is being replaced by the nonconventional power plant. So where this type of guidance, even I don't personally feel this should affect to the growth of the industrial.
Actually, sir, I'm asking on the KPI POV. Like this year, we have -- earlier, we have given the guidance of 60% to 70% top line growth.
Yes, I got your point. So Garvit, if you look at this quarter also, we have done 60% to 70% of growth on all the parameters, whether it is revenue, whether it's profitability and everything. So we are pretty much on the line, and we are quite confident that we'll be able to touch the guidance which was given by our Chairman and Managing Director, Dr. Faruk sir. So we will be able to achieve that most of.
Our next question comes from the line of Aman Soni from Nvest Analytics Advisory LLP.
My question is already answered.
Our next question comes from the line of Deekshant B. from DB Wealth.
Firstly, congratulations on good execution in this quarter. So firstly, we have seen that the rainy season has been a bit more in the Q2. So what kind of execution are we seeing in Q2? Will the seasonality hit us in Q2 versus Q1 now?
See, if you see the seasonality in the solar or you say renewable energy, the rainy season, there is less of execution that you happen to see usually all across the sector. But what happens, there is also a component that we can build the supply component during that period and sell. So we are that we will be in line with what we have shown in the past. The quarter 2 will also be in line with what we have done in the previous year quarter 2.
So yes, there might be a slight curtailment because of the rainy season, but we will be able to cover it up going forward.
Sir, secondly, the question is on our PAT margins. As we are now ramping up even our IPP execution, what kind of PAT margins can we expect?
IPP, if you look at my IPP portfolio, as I go forward, my IPP has an EBITDA of around 85% to 90%, upcoming IPP project, which I've already set up now and the new upcoming projects also. So IPP adds to the bottom line. So we expect that as we increase the IPP component in our revenue mix, our PAT margin, we will be able to sustain our PAT margin what we are showing right now.
Sir, so question being that right now, let's say, we are saying that for the next few years, we expect a 50% to 70% growth. I'm assuming, let's say, 60%. So what kind of PAT margins can we see on the 60%, 70% growth trajectory?
See, even if 60%, 70% growth, see, my IPP is -- what we say is fixed with the PPA rates. My PPA rate won't change. And my IPP provides me strong PAT margin. So accordingly, I don't see too much curtailment into the PAT margin, but it will be in the range of 15% to 20%. That is what I see. Today, it is around 16%, 17%. So we will be able to maintain that.
Okay. Sir, lastly, the previous participant also asked this question, but I just want to understand that we have a great sort of execution capability. The upside is looking very strong for us. But what is it the risk that we are seeing internally that can go wrong because there is government involved and there are delays by government that is normal. So that is an uncontrollable for everyone in the industry. But apart from that, what kind of negative risk that we see that cannot be sort of -- that we may not be seeing right now, but the management is able to see it better?
See, in any renewable energy project, the major risk that is execution risk. And in the execution risk, the two main component or the hurdles, I would say, are the availability of the land and the evacuation, that is the transmission. And these two things, if you see, at present, I have 3-plus gigawatt of evacuation approval with me. I have 6,000-plus acres of land bank available with me. So these are the major. So I don't see -- after that, execution capability, we have more than a decade -- two decades of experience in execution on the ground level. So if I see the probability of any hurdle getting created is very less, very less. I mean success rate may be around 95% to 96%. Over and above that, I don't see any other factor because even the PPA that we have signed are 25 years long-term PPA, they are signed. So those are also into the place. So I don't see any -- and the counterparty is GUVNL, Gujarat Urja Vikas Nigam, which is a topmost A-rated DISCOM out of all the DISCOMs that are there in the country.
So we have taken utmost care that none of the risk factors should have any upper hand compared to the success of this particular projects and everything. So other than what you said, the government policies or anything, we don't have any other risk factor that is there.
And sir, what about our sister company KPEL.
You're talking about KP Energy, right?
Yes.
Yes. So we have a call of KP Energy tomorrow also. You can connect on that on the KPG. So we'll also explain. There also, it is a very good stellar result that we have given.
[Operator Instructions] Our next question comes from the line of Ashish Rampuria, an investor.
I think first question is that ICRA rating report, they mentioned that for one of the IPP, the project cost has reduced by INR 700 crores, if I remember correctly. Any reason for that?
See what happened when we first calculated the project design, when we did the first design, it was a tracker-based design. So at that time, the AC/DC ratio was 1:1 only. Later on, when we saw that the land was getting bifurcated into multiple small pieces, so then we had to go for a fixed design. So for getting the same PLF in the fixed design, we had to increase the AC/DC ratio. So now the AC/DC ratio is 1:4. So because of that, the cost of the project got a little bit higher compared to what it was calculated earlier.
So does it mean we also get higher PLF and hence higher realization or revenue remain same.
No, no. See, what happens that your revenue also will increase, not to the extent of increase because what happens when you do a tracker base, you get a PLF around 23%. And when you do a fix, you get a PLF around 19% to 20%. But the number of panel increases in a fixed base. So automatically, but still, I mean, the fixed base will have a higher revenue compared to tracker base revenue.
Got it. But you say that the IRR will get impacted or barely minimum impact or slightly.
IRR will slightly improve.
Will improve.
Yes.
Perfect. Second, I think you had mentioned that I think the last con call that hopefully, by the end of this quarter or during this quarter, we should hear about large wins that should even take care of the revenue for FY '28. Any color on that?
Sorry, I didn't get your question properly. In the previous quarter, what was that was...
So you mentioned from a pipeline perspective, there are big orders in pipeline that will not only take care of revenue for FY '27, but even to a large extent for FY '28. So any color on that pipeline and you said that you should be able to announce that end of first quarter or during second quarter?
As I told you, orders in hand, I'm talking about the CPP business. IPP, I already spoke that INR 5,000 crores projects are in pipeline. So they are getting executed. On the CPP side, we have approximately 1.8 gigawatt of order book, which is in the pipeline and not the pipeline, but the orders in hand, you can say that itself is around INR 4,000 crores. So automatically, there will be also '26, '27 as we go forward, there is in the pipeline. This order will keep on adding more and more order to this.
Got it. No, but I think you were referring to some particularly large size orders that [indiscernible] Is there any progress on that, that you offered last time?
So last time, I mean, if you see, we have got [ JEEVAN ] order after that CIL order was also infused. Now we have got the IPP 150-megawatt GUVNL order also got added to that. So there are some tenders which we are already bid and we expect them to win and mostly on the BESS side also, battery energy storage system, which we are expected to get in this quarter, majority of the tenders will be out. So we are expected to -- because our success ratio is around 80% to 90% in case wherever we are bid.
Got it. Sir, my last question before I join the queue. On BESS, if you can give some color because I think that's not an established business for us. How are we looking at BESS? Is this the vehicle that the group for BESS going forward.
Can you repeat? Your voice is cutting. If you can step a little back from the mic.
No, I was saying for BESS business, if you can give some color, how is the group looking at it? I will KPI Green be the vehicle for BESS business? What is the potential that we see and any targets that we have for BESS going forward?
Yes. So BESS, we have targeted our subsidiary, Sun Drops Energia Private Limited for setting up the BESS business so that we have a focused approach over there because smaller project and BESS, we will start with a smaller project. So as per our management thought process, we'll push majority of the BESS business with Sun Drops. And a bigger utility scale project, if it comes, very high big utility scale with big institutions, then only we'll put that in the KPI. But overall consolidation, it will happen at KPI consolidated.
Our next question comes from the line of Akhilesh Kumar, an investor.
I wanted to know about one subsidiary we are planning to list some time. I wanted to know why we are keeping so many subsidiaries, which again are in the same line of business, doing EPC for solar and want to list it separately. Why don't we keep it as it is like we have other subsidiary as a wholly owned?
Okay. Let me just explain you. If you look at any of the bigger players, whether it is Adani, whether it is Adani Green Energy or whether it is Mahindra Renewables or Aditya Birla Renewables, these people have separate, separate SPVs, which you can call them as a subsidiary, 100% SPVs. So the reason for that usually is that they have a special separate project have a separate SPVs or a subsidiary.
In case of KPI, so that's a phenomenon of this particular characteristic of this business because capital-intensive business, every banker or lender would like to have a ring-fence kind of a situation where they can target their own assets or look after their own assets.
In case of KPI, we only have -- the major subsidiary that we have was KPI Green Energy and Sun Drops. And now we have added KPark, where also the plant is there, and Miyani, where we have the connectivity.
If you look at the KPI now takes into its fold only the utility scale or a bigger sized project, where we have signed PPAs with GUVNL or we are doing one big project of CIL and everything. When it comes to 0 to 35 megawatts, those kind of projects and best project will be taken into Sun Drops. So there has a clearcut demarcation and 35 and about till 100 megawatts, we will be putting into KPIG Energia.
The reason is that these are different, different customer sets. And accordingly, we have kept it differently. The reason -- again, I mean, if you see Sun Drops has got its marketing team and everything, whereas KPI has its own tender team because there are big project only comes in a tender kind of a form.
Similarly, KPIG Energia, there is a separate corporate team, which looks after the orders of more than 35 megawatt up to 100. Recently -- I mean, today, we have uploaded approximately 96 megawatts of Aditya Birla Renewables. So there are separate teams, separate execution capabilities that needs to be tied up in separate resources also. Like I have 100 -- I have 500 megawatt of evacuation approval at one place. For that, I will require a bigger project. Whereas in a small project, I require 11 kV kind of -- because I have 20 megawatt or 30 megawatt in that particular substation, I can get it done over there. So that is the reason because of the characteristic of the business, we have kept separate lease to them.
Okay. Got it. So what was the subsidiary which we discussed last call that will be like planning to list again?
That was Sun Drops. That is Sun Drops Energia Private Limited. And hopefully, I mean, we will be listing that. We have already started the process of collecting the documents and everything. We'll be filing the DRHP for that subsidiary.
So that is not exactly an SPV for a particular project, but that is kind of multiple projects inside.
It was a 100% subsidiary. Now we did a pre-IPO, a small portion. And that's why KPI still is a majority holder or the parent company in that subsidiary also.
So we don't follow SPV kind of a structure in SPV, you can only do one project in that SPV. If you add another lender, it will create a problem. Whereas in subsidiary, you can add two, three. So at least you'll get some. So creating 100 of SPVs will be a big problem. So that's why because we also do CPP. You need to understand that if I do IPP and CPP together, I get the benefit of taxation. Whatever profit I earn from the CPP, that can be set off against the depreciation that I'm getting on the IPP. So that's the reason I keep subsidiary and not an SPV, small, small SPV.
Okay. Got it. And on the IPP project, where you said that as per the credit report, INR 700 crores cost escalation, that was on one particular project or it was on a whole for IPP what we have on hand?
No, the project which I told you, 250 megawatt and 370 megawatts for that project, the cost escalation.
So how much impact it might have on bottom line?
It's not an escalation. It's just what we say, it's not a cost escalation. It's a change in the design, and that's why the cost has been as per the design. So it is not what we call it as a cost escalation. This is the -- that is the price of that design, and this is a price of design. So for example, if I want to say, earlier, it was BMW and now it is Mercedes. So the Mercedes will have a higher cost compared to BMW kind of a thing. So it's a design change, not a cost escalation.
Okay. Got it. And I want to just thank you for, like say, your nice presentation for -- I have been following the group for a long time for maybe three, four years, and it has always been very elaborate.
Just wanted to give one feedback. Can you keep your group level things in a single sales slide or separately? Because somewhere we are talking about KPI, we will be doing this for handling this. somewhere we are writing KP Group kind of like say, hydrogen and all. So it kind of confuses shareholders like...
Thank you for your appreciation. I take your suggestion. We'll also try to inculcate one slide in all the presentation, which will speak about the group altogether at.
Yes, exclusively. Exclusively for separating because when we are talking about hydrogen and green hydrogen, ammonia and gas and all those projects, but which is not specific to either KPI or KPEL, we can separate it so that we don't get confused with the orders or the targets at all.
No issues. No issues. We'll keep that in mind. Thanks for the research.
Our next question comes from the line of Gaurav Sharma from G.S. Enterprises.
My question is to Mr. Salim sir. Congratulations on an excellent set of results. I just want to know the time line of completion of our 1.2 gigawatt IPP and 1.8 gigawatt CPP.
See September '26 is our time line that we are targeting. So hopefully, we'll complete that 1.2 gigawatt of DC capacity that is [ 53 70 ] AC capacity.
Okay. And what was the order book value of the 1.8 gigawatt CPP?
Around INR 4,000-plus crores.
Is that the billed amount or the unbilled amount?
No, no. This is the order in hand, what we are talking, 1.8 gigawatt...
Yes, I got that. But has that come into our sales? Or is it due because we do the billing on a milestone basis, right?
It will be billing on a milestone basis. So I mean, you cannot compare the execution capacity vis-a-vis the revenue because every milestone has got a different -- for example, there might be a service portion, there might be a supply portion. So it will be difficult to calculate. But overall, 1.8 gigawatt comes up to INR 4,000-plus crores of order book altogether.
INR 4,000 crores revenue is still to come?
Yes, that's what I'm talking. 1.8 gigawatt, if I execute this entire order book that I have, the total calculates up to INR 4,000-plus crores. So it kind of INR 4,100 crores, INR 4,200 crores.
Our next question comes from the line of [ Anil Sarin from K16 Advisors ].
I must appreciate the way you people are executing not just in recent quarter, but over the past many years. At least I have -- I've been in the market for around 31 years now. I haven't seen so too many other companies that can execute at the level at which the KPI Group is executing. So all credit to management and the promoters.
I just have some suggestions. Your PPT is very informative, and it gives almost all the things that one would need to make up one's mind about the investment prospects. However, if you could add operational data like how many megawatts was delivered in the quarter in CPP and also the revenue breakup between CPP and IPP, that would further educate people like myself. Right now, it's not immediately apparent, but you would agree that on a quarterly basis, I mean, these are foundational things that need to be put upfront, and it would really add value to your presentation, if you would do that.
Yes, I understand. It is not immediately apparent because we give the total revenue. And since the total financials or the P&L or what we said the income statement is uploaded on the BSE and NSE, there we have clearly mentioned what is from the IPP, from the sale of power, from the sale of plant. So it is over there. Nevertheless, we will try to add it over here also so that gives more clarity to you, okay? And any other thing that you said was on the capacity that you are seeing, right? So there is one slide which speaks about the capacity of IPP capacity of CPP also.
The only thing you want that how much done for the quarter, it becomes -- that also, if you see, it is already mentioned on the slide, which is, I think, Slide #5 in our presentation. If you see that there's a CPP capacity installed in the quarter, if you see it's 0.5 gigawatt, orders in hand is 1.8 gigawatts. So all those data is there.
I think -- I mean, I understand it is very -- I mean, for a layman, it becomes a little bit difficult. I take your point. Next time, we'll present it in a way that it's more visible and more upfront rather than into figures and charts only, yes.
Yes, yes. And just one question I had regarding the question asked by the earlier participants and your answer to that regarding the ICRA rating, et cetera, and the cost escalation.
Somehow -- I mean, just by listening to it, I felt that some further elaboration was required. That is if the cost goes up, the revenue will not go up. So if the cost is going up, then how the IRR will not suffer? I would think that the IRR would come down if the cost goes up and the revenue remains the same.
No, no, no. I think there was a little bit understanding issue over here. I'm saying the cost goes up accordingly, the revenue because the PLF also goes up. There's a difference between fixed and tilled -- fixed and tracker-based what we say, the solar panel other systems.
So in case of tracker base, you have a PLF of 23%. And in case of what we say fixed, it is around 19% to 20%. Now what happens in tracker based, we do 1:1. That is every. For 250 megawatt, I'll put panel up to 250 megawatts only. But in case of fixed, I have -- because I have to achieve the PLF that was given by the -- units that I have to achieve. So in that case, I increase the number of panels. So as I increase the number of panel, the cost goes up. But simultaneously, it will have a more PLF compared to what altogether the tracker based will give you.
So here, it is 23. If I do 1:4, that every panel will have a 0.4 additional panel. So automatically, the number of panel increases, the generation increases, automatically, the revenue will also to that extent, increase. And simultaneously the IRR will not get impacted too much.
Okay. So you mean GUVNL or the entity that is signing the PPA, they are okay with extra output from the...
Yes, because we are giving them the PLF, which is we have -- what we say, PLF range that you have to give PLF, for example, I'm signing for a PLF of 20 or terms of the contract say that's 15% to 20% kind of addition I can give. So I'm adding that 15% to 20%.
And that allows you to maintain the IRR...
Yes, That allows me to maintain the IRR.
Increase in the CapEx.
Yes, yes.
Our next question comes from the line of Karthik Sharma from Anand Rathi Institutional Equities.
Congratulations on the great set of numbers. I hope I'm audible. I recently saw the interview of Mr. Patel on Money 9 earlier this afternoon. I see that the company has an ambitious target of 10 gigawatts of portfolio. So could you help us understand the revenue potential from this? And especially how much of that is expected to come from IPP versus CPP segment once they are fully commissioned? And also, is there an average per megawatt revenue realization or a benchmark you work with for IPP versus CPP projects?
See at present, if you see my IPP/CPP revenue mix is around 12% to 13% last year, it was against IPP and against which CPP was 86% to 87%. Going forward, we have an ambitious target of 10 gigawatt in which we plan to have at least 25% of revenue coming from IPP business and remaining 75% from the CPP business.
If I tell you the existing IPP that I have in hand, if I calculate all together, my average will come around INR 3.5 or INR 3.6 per unit. because I have almost 1,511 megawatt DC capacity, which is upcoming.
So looking forward at 10 gigawatt also, we'd like to maintain that INR 3 per unit kind of average for the revenue. Now it depends upon the mix of IPP and CPP as we go forward for the 10 gigawatt. So that will define the revenue define -- what we said, the profitability also depend upon that. That's why we want to increase the IPP because it adds more to the profitability.
Understood, sir. Understood. I just have one more question, if I can real quick. While your EBITDA margins improved quarter-on-quarter, they were yet down year-on-year. Could you walk us through the key drivers of this volatility and your approach to margin stabilization going forward?
This is an important thing we need to understand is the seasonality of the -- that is for the IPP and for the other CPP also, there is a seasonality. So what happens when we have -- we bill on a milestone basis. So when we build the service component, at that time, my margins are a little bit higher. And when I build the supply component or the material component, the margin. So there is depend upon the way I do the billing, my margins will keep on rotating in some of the quarters. And the finally, it will be at around PAT margin of 16% to 18% kind of a margin.
Next question comes from the line of Hardik Gandhi from HPMG Shares and Securities Private Limited.
Congratulations on an absolutely good set of numbers. Just two questions from my end. What would be the rate of the new green bonds at which we are issuing?
I think, today only we have uploaded the rating, AA+ from CRISIL and another rating agency has also given. So you can understand it is the second highest rating after AAA and which is one of the best rating when it concerned. So we are -- we have yet not decided on the rate, but we will try to get the lucrative rate from the market because this entire bond is guaranteed by GuarantCo, which is a AAA entity when it comes to Indian rating. So most probably, we will try to keep it as lean as possible so that we can get good benefit out.
Understood. Understood, sir. So any ballpark number like 7.5%, 8% or is it on a higher side?
If you ask any CFO, my ballpark will be 0%. I would like to get it at 0%. But most probably, looking at the current market, somewhere around 8-ish or something we would like to close it.
Understood. Understood. Sir, and on the BESS front, can you help elaborate what is your strategy going on, you mentioned that we'll be starting with smaller projects and you have a hit rate of 80% to 90% of the upcoming tenders. That is your ideal hit rate in the new tenders.
So I just wanted to know what kind of revenue or order book are we expecting just from BESS front? And what would be the time line just assuming that if you get one small order versus state order, like a big order, what would be the time line to execute? And what would be the margins on that front?
For these projects also time line -- yes, I got it. For these projects also time line would be around two years to kind of -- one to two years kind of time line between 18 to 24 months kind of a time line that will be given by the -- depending upon different projects will have different time line.
Margins, I mean, BESS is a very -- what we say, very evolving kind of a business. So margin, I mean, we will be tracking the margins very closely, but we will always try to have a healthy margin on this. We will not compromise too much on the margin. But yes, I mean, the business is new, and we want to enter this business. We'll have an existing kind of a margin, which will give us a better stability also, but we want to enter this because this is a future because only BESS can give you RTC around the clock and the stability in the power for a green energy power.
Yes, sir. So any -- just like revenue target revenue, how much are we expecting from it or order book? Like just the size of tender maybe like which we will be targeting.
Yes. I can tell you the pipeline. Tender, I can tell you the tender pipeline that we have already decided to bid for is around INR 3,000 crores to INR 4,000 crores of tenders pipeline...
Understood. And that will be in which states like just Gujarat, Maharashtra?
No, no, no. We will be in Maharashtra, we'll be in Gujarat, we'll be in Rajasthan, we will be in different states also for Andhra Pradesh.
And this is in at least first half of the year. Is that assumed -- sorry, second half of the year?
Yes, mostly because the tenders are expected to be in the second half.
Our next follow-up question comes from CA Garvit Goyal from Nvest Analytics Advisory LLP.
Sir, just a follow-up on the BESS this kind of project that you spoke about INR 3,000 crores pipeline for which we will be bidding for. The technology part, will it be in-house technology for KPI?
As I said in my opening remarks, we have already signed an MOU with Delta. So we will -- we have collaborated with Delta specifically for this BESS technology. So we'll be -- our association will help us to cater to the latest technology in the BESS from Delta.
Understood. And secondly, in your PPT, you mentioned about solar panel robust cleaning. So is this product are we able to sell in the open market? And over the years, we will be able to generate a new revenue stream for us.
At present, my own requirement, I'm trying to fulfill because I have around 5.9 gigawatt of executed plus upcoming projects and everything, so which requires you. So if you see last -- previous presentation of quarter 4 was around 180 mega robots. Now it is 500-plus robots we have installed. So we are trying to fulfill our internal requirement. Post that, it's a management call that they will decide whether they want to commercialize this particular product or they want to go into O&M and get the operational maintenance done for others also.
Understood. And lastly, on this subsidiary listing, we mentioned about we will be listing it separately. Will the existing investors get the shares of this subsidiary because otherwise, it will lead to earnings dilution, right?
As per -- if you look at, there is no system which -- see, KPI is the holder of this company, okay? When it does the listing, it will dilute 25%, and that will be in the open market. So yes, you can apply from the IPO section and then you can get -- if you're lucky, you can get the shares directly also from the market.
In the IPO, there will be shareholders right?
No, yes. See, at present, there's no such scheme from SEBI or something that existing shareholders quota or something which I have not heard about. I mean, nevertheless, we value our existing shareholders also, but we can't give separately as a carve out and give out any portion to it.
And after the dilution of this 20%, will that entity still be consolidated in KPI Green? Like KPI will be the majority shareholder even after the dilution.
At any given point of time, we'll see to it that KPI Green holds more than 51% in Sun Drops.
The next question comes from the line of Ashish Rampuria, an investor.
Yes, INR 3,000 crores to INR 4,000 crores that we said pipeline is for BESS, right?
Right.
And beyond that, the typical solar and hybrid that we do, what is the pipeline for that?
So as I told you, pipeline for the solar and hybrid might go up INR 4,000 crores to INR 5,000 crores another in that. What I'm talking is pipeline that where we have tenders where we are bidding, we are doing for -- so around INR 4,500 crores any given point of time we've INR 4,000 crores to INR 5,000 crores pipeline where people are discussing my BD team or tender team is working on it...
So we are saying over between INR 8,000 crores to INR 9,000 crore pipeline we have between BESS and the erstwhile work that we did on solar and wind and hybrid and so on and so forth. Would that be fair statement?
Yes. Just to clarify, I'm Dr. Alok. See, basically, this is all the bidding process is happening pan-India basis. And we being a KPI, we are target to participate to the bid. And based on the procedure of the bid, we target for that type of CapEx investment by which we can get the order. So it is not typically pipeline where we confirm it is our order confirmed. So it is a target to participate to the bid.
No, fair enough. Yes, I understood that. Fair enough. I also, I think back to back in the four, five days, we had announced four subsidiaries, I'm forgetting names, the same name and then one, two, three, four. What were those subsidiaries created for?
Those are for getting the evacuation in different states. So as we are expanding to different states, we need evacuation in the state. So that's why we have to form separate companies for getting those evacuation.
Got it. Okay. And I think we got the evacuation capacity at ISTS level about 600-odd megawatts. Any progress and color on that? Are we looking at CPP, IPP there and so on and so forth?
Yes. On this, whatever we have got about 642 plus -- 642 plus KPI. And for that, there are various type of discussion is under pipeline, and you will be getting a good response in appropriate time very shortly.
Got it. Fair enough. And any color that you want to share on the other states and international, if there's any progress, meaningful progress?
For the other states, there are particularly you know in the domain, there are three states we have signed our MOU. And there also, we are trying to create a resource like land and PE vacation, and it is under process. And based on this, we should participate in the future. It is already there in place also.
Got it. And international, any update?
Internationally, to be it is under stage of discussion, probably we cannot disclose here now. So we'll be getting the appropriate news while going forward.
Our next question comes from the line of Soham from Investments.
Yes, sir, this 1.2 gigawatt IPP, which is in work in progress we have shown in our PPT, this will be added by September 2026, right?
Yes.
Sir, so this 1.2 will be added in one go or we'll be having in a phased manner?
It will be in a phase-wise manner. So we will start adding from this financial year, and we'll keep on adding to the next financial year.
So by FY '26 and what installed capacity we will be having in IPP we are expecting like?
So all in place is around, IPP, if you see 171 plus 240 plus 50 and that is with DC capacity 503 megawatts that is existing capacity that we have plus 1.2. So it will be 1.7 gigawatt kind of a capacity that will be.
No. By FY '26 end, this year end, what installed capacity we will be having like we'll be adding it in phased manner, right?
So this financial year, it depends upon our execution run rate. So we -- execution run rate can be different at different time depending upon the seasonality also. But at least we plan to have half of this capacity of 1.2 gigawatts to get before this financial year.
Okay, sir. Understood. And sir, like you said that last year, our IPP share was like 13% of our revenue and this quarter, it is 10%. So going forward, with this 60%, 70% top line growth we are expecting for this year, what would be the IPP share are expecting?
So our target is around 25% should be the IPP share. But going forward, I think by end of this year, we might move up to 17%, 18% kind of.
Okay, sir. And on the unit generation side, sir, last year Q1, what installed capacity did we?
So last year, if you see my capacity was around 171. If I talk about the running capacity, 171 megawatt was up and running. The new capacity, which I installed during the last quarter was 240 and 250. So altogether, 240 and -- 240 and 92 megawatts. So this capacity have the capacity of generating unit of 65 crore units. But this will come in the upcoming October or post September because the COD of that particular of the GSS, what we call as government substation is going to happen by September. So post that, this will also be up. So this time, what we generated unit of 6.9 crore units, they were generated from the -- our existing 171-megawatt capacity that we have already running.
Okay, sir, understood. So by year-end, sir, what units we can expect from the current...
So you can take out of this 65 crore unit, 50% because six months, it will be running. So around 35 crore additional unit over and above what 171mgawatt capacity has given me.
Our next question comes from the line of Shubhankar Gupta from Equitree Capital.
So just two questions from my end. So I was actually confused in the PPT that so far, we've installed around 1 gigawatt of capacity. So within that, how much of it is getting utilized so far? That is one. And what is the split between CPP and IPP thus far in total in aggregate? That is one.
Second is I want to understand the revenue unit economics, that is revenue per megawatt in CPP and revenue per megawatt in IPP. I think what you mentioned earlier was CPP revenue is a complete total order book of 1,800 megawatt, it is INR 4,000 crores, which would around INR 2 crores, INR 2.5 crores per megawatt. Is that correct? And then what are the economics?
I think you have multiple questions. If I go line by line. The first question was about the utilized capacity in this particular, right? So as I told you, particularly in this particular quarter, if you see, I have the energized the portion which has generated revenue is 171 megawatts. Total capacity of the IPP I have is around 0.5 gigawatt, that is 504 megawatts, yes. But out of that 250 and 92 was something -- 240 and 92 was something which was energized in the last -- this quarter only. So the revenue will start coming from the third quarter onwards. Yes.
What was the second question you said?
So just want to understand the revenue economics for both CPP and IPPs. So I think one of the questions, you said that INR 4,000 crores, if you complete the whole CPP, INR 4,000 crores will be, which would be INR 2.2 crores per megawatt. So if that is what is the same split for IPP as well...
No, no. Let me explain. This INR 4,000 crores or 1.8 gigawatt, INR 3,000 crores, INR 4,000 crores, it includes order with panel and without panel also. In some cases, I have orders, they are only BOP orders, you can say, that is without panel. So I don't think per megawatt, you can say 2.4, it is around 3.5 to 3.25 kind of max to max 3.75 on the solar side. On the wind side, per megawatt can go up to INR 7 crores to INR 7.5 crores. But some cases, we have got utility scale orders we have got, they are without -- like, for example, Aditya Birla order is without panels or without turbines. So in that case, I'm only doing the BOP portion. So that's why the calculation is not right to get the entire order book into divided by the megawatt, you get -- you will not get the exact per megawatt.
Okay. Okay. So what would the per megawatt look like for both CPP is the question still?
As I told you, so let's look it out from the solar point of view and from the wind point of view. So solar will be around 3.25 to 3.5, 3.6 also per megawatt and the wind will be from 7 to 7.5.
Okay. And that is for wind and solar, what about IPP, like is there any thing exact revenue which we derive per megawatt?
See, naturally, IPP is my own product. So automatically, the margin of the CPP will not be part of that. But what I'm giving orders for the CPP. So automatically, you can understand the margins that I have. I'll not explain you what margin I'm doing because that is not something which I've explaining on this public call.
No. Got it, sir. Got it. If you don't mind just one more question, a very small one.
Yes.
EBITDA for the whole firm for this quarter was somewhere around 30%, 35%, right, 34% to be exact. And then you say that 75%, 80% is the EBITDA for the IPP, right? So if I just calculate, EBITDA for CPP will be somewhere between 30% and 35%. Is that correct?
No, no, no. EBITDA would be somewhere around 20% for CPP. See, you need to -- you can't look at -- you have to look at the weighted average. How much is the contribution of the CPP and how much is the contribution of the IPP, then only you'll be able to get. But if I want to calculate my EBITDA for IPP would be around 75% to 80% and my EBITDA on CPP is around 20%. So blended EBITDA will be around 30% to 32%.
[Operator Instructions] Our next question comes from the line of Akhilesh Kumar, an investor.
I wanted to know about the debt level as of this quarter. I can't see anything on our PPT. And with the upcoming INR 700 crores NCD, what will be our debt-to-equity ratio and whether we will be still maintaining 1.5 as communicated.
My present debt level in this quarter, if you calculate, it will be 0.5:1. That is I'm very low leverage, you can say. With the NCD and the upcoming project also, we will not cross 2:1. So we are very much in a comfortable position in spite of doing the CapEx.
Okay. It will help us, like if you can put that thing in PPT, the absolute and that ratio as well.
Yes. Naturally, whenever every quarter when we start raising at that time, the debt equity, balance sheet comes out only during half year and full year financials. So at that time, we'll surely put that. But I have given you this quarter also, we -- at present, we are 0.5.
So our target is 1 to 1.5 or...
No, no, Max to max, I said, is not our target. We'll try to keep it below that only. But max to max, we might reach up to 2:1 with the existing tie-ups and the projects that are coming.
So with the current...
The industry, if you are seeing, industry are at 5, 6, big players are at 6 to 7 kind of, yes.
With big pipeline of projects in hand and the upcoming tenders, what we are planning, do you see that to maintain that ratio, we need to raise again further.
Actually, see, we have done our projections. And on that basis I'm telling you. And me being a rating guy, we always keep a track of the debt to equity.
I mean to say like whether we need to raise further equity as well to maintain that ratio for upcoming?
No. At present, I don't think any equity or dilution is required by the promoter to maintain this debt and equity. But at least for next couple of years, I don't think anything is required because our profitability is also strong, so that adds to the net worth.
Okay. So in the near future, when we are seeing that our -- it will be peaking out, like say, kind of stabilizing or it will every quarter, it will keep going up?
No, no, no. See, it depends upon the growth pattern. If we are seeing the growth pattern, we are growing substantially. That's why we are trying to keep it 2:1. But as I told you, the moment -- see, there will be repayments, there will be additional profitability that we will be increasing with the growth in the top line and everything.
So these -- what we say, the levels will be maintained by us at present, at least for two to three years. After that, surely, I mean, depending upon the business, depending upon the market situations or everything, we will take a call on that. But we will never let ourselves more leverage because that is a very risky position.
Our next follow-up question comes from Gaurav Sharma from G.S. Enterprises.
I want to know what will be the capacity of CPP by March '26 that we can install?
As I told you, the CPP capacity as on the order book that I have in hand is 1.8 gigawatt. I might execute, but CPP capacity depends upon milestone basis. So we might book the revenue, but we only book the capacity as completed when we complete the entire project. So it is very difficult to tell you that exactly how much capacity will be there. But yes, I mean, if you see the revenue-wise, I mean, we will do 60% to 70% growth in the revenue also.
Our next question comes from the line of Ajit Sethi from Eiko Quantum Solutions.
Sir, as we have good orders in hand, what kind of revenue growth we are targeting for FY '27?
As whatever we do in FY like last year, we did INR 1,700 crores. So you can count 50%, 60% of growth from there to '26 and again, 60% growth from there to '27 because we have a huge pipeline also.
Similar PAT margin, 16% to 18%, right?
Yes. We will try to maintain a slight here and there, but we'll try to maintain the PAT margin.
Our next question comes from the line of Samrat Shah, an investor.
Congratulations for the wonderful results. My question is regarding the net profit margin. We are maintaining a steady margin of 18%. Now if you have given the guidance of IPP share going up from 13% to, say, 17% to 18% for this particular financial year and overall target is of 25%. shouldn't the net profit margin also have an expansion?
If you see the first quarter margins because of a lot of service component, the first quarter margins are usually on a higher side. Then second quarter, it little bit tapers down, as I explained in the previous question also. So we will be able to maintain the margin.
The more we do the IPP, it will help me to maintain the margin and not grow the margin because accordingly, CPP -- correspondingly, CPP will grow substantially also at the same time because we are growing 60% to 70%. So my CPP has to grow. So to net of that growth of CPP, CPP is earning me around EBITDA of 20% and IPP is around 75% to 80%. So to net of that growth of CPP, I have to increase my IPP also. So IPP again, I mean, the margins will be maintained. For the maintenance of margin, we are increasing the IPP also simultaneously.
Okay. And one follow-up question, sir. I wanted to know what is the current workforce that you are having in KPI Green Energy? How much of it has been increased from previous year? And what is the target workforce that you -- because I see here and there that you are hiring a lot of -- I mean, the advertising for hiring in KPI. So I wanted to know what is the target for the next financial year as well.
See, we are growing and every growing organization requires new hands and experienced people, professional people. So we are reaching out to the market to hire new and new minds, additional people. So at present, altogether, I think 800 to 900 workforce is there. And there are a lot of engineers, chartered accountants, there are stalwart from the industries. So we are adding this year-on-year because as we grow, we don't want to get curtailed on our executions or anything because of the shortfall of manpower or anything. So if you see on my slide, around 560 itself is in KPI.
Okay. And what is the target, sir, for this financial year, any ballpark number if you could give?
See, manpower ballpark, you cannot decide. It's about proper utilization of the manpower that is more important. So I mean, I can add more and more people. But finally, I mean, revenue per person is something that we keep on tracking, and that's good.
Our next question comes from Deekshant B. from DB Wealth.
Sir, you have mentioned that we have evacuation of around 3 gigawatts and around land parcel of around 6,000 acres. Does this include the September guideline that we have given, the orders that we will be executing by September 2026. Is this inclusive of that? Or is this over and above that?
No, no. This is inclusive of September also, whatever orders we have. This 3.2 gigawatt includes that 1 point whatever we are executing right now.
So the evacuation and the land parcel is majorly for the orders that are going to be utilized till September.
Yes. But evacuation and land, evacuation -- acquisition and the land acquisition is a real-time process. every day, I mean, there is some or the other which is added to this, and we keep on adding this. If you see my presentation, there is a track which is shown about the land acquisition over a period of time and also about evacuate.
So it's a real process. We keep on adding this more and more. quarter-on-quarter, year-on-year, we'll be adding more because we focus on the pipeline that we have. And accordingly, we have to keep our resources ready for those pipeline when it converts into order.
Okay. Got it. Sir, secondly, you have mentioned that for the next two, three -- because we will be doing a lot of capital raise from debt and from IPO proceeds. So this is the promoter holding that is now stable. Do you think the stable promoter holding will be for the next two to three years?
Yes, yes, it will be around. At present KPI, promoter is holding 48.70 something, and it will be stable for the next couple of years.
Okay. Sir, lastly, we don't have a lot of DII holdings in our sort of company. We have good FII holdings. Sir, a suggestion that do you think it would be a good idea for us to do more road shows to get more interest of DII because we are clearly growing and the market is looking at us.
Yes. See, I mean, in the presentation, we have only mentioned majorly the FII. There are DII holdings also. But going forward, like, for example, the INR 700 crores bond which we are raising, it will be majorly focusing the insurance companies and all. So we are focusing on adding more and more DII into this.
Nevertheless, I mean, we are happy that somebody like Vanguard, BlackRock, one of the marquee names in the international market who is investing in a company so that is also a good thing for us. Slowly, slowly DII will also drop in once we show more and more size wise.
Sure, sir. That's just a humble suggestion from my side.
We'll take a suggestion. Well, we'll try to get more visibility in the market.
Our next question comes from Sumant Kumar, an investor.
Yes. Sir, this is again about BESS. I have heard of some of the contracts that have gone to the competition on the BOO model, right? So the thing that I want to understand is like in IPP, where we own the asset as compared to CPP, which is basically an EPC work that we do for them, right? Similarly, for BESS, when it is coming on BOO, would we have to do the capital investment? So hypothetically, if you are targeting a revenue of around INR 3,000 crores, does it mean that we would be investing this INR 3,000 crores upfront and then it will be recovered from...
So on the BOO what we look at, it's a build, operate and own kind of a model, okay? Now in this, it is the battery is a service we provide, okay? So for that, the battery entire system is to be built by us.
Now that's the reason we are coming with an IPO in Sun Drops and we are raising the equity over there so that we can invest that much funds over there. And naturally, when it build operate and own, it will automatically be on your books, and we will be raising in Sun Drops for that particular. present Sun Drops doesn't have any too much of debt and everything. But as we grow, then if we happen to click the entire INR 2,000 crores or INR 3,000 crores of orders execution. So mostly, it will be on our books.
So the company will have to do the capital investment upfront and then we would be recovering the money over.
Yes. That's the reason. I mean, the object of the IPO is also somewhat to that extent only.
Next question comes from Rishabh Choudhary, an investor.
My question is more on the industry, if the government has invited the bids again for the tender that has gone to Gensol and if KPI is participating in those?
See, a few of the tenders government has already -- I mean, which was recently, but it was very low. So we participate, but we didn't went aggressive with that. So government has already -- I mean, NTPC tender, which was won by Gensol is already out in the public and it is already won by, I think, [indiscernible]. So that is open in the market. So everybody knows that.
Our next question comes from Akhilesh Kumar, an investor.
I wanted to understand more about our evacuation capacity and the transmission lines like say, in fiscal, I don't have much idea, but there were certain reports in the media where it says that around 25% of projects in Gujarat and other states were stuck because of the evacuation capacity -- sorry, transmission lines delay or other problem. So when we say we have enough evacuation capacity, that means we have already the infrastructure for evacuation in place or those things we are going to plan or do?
So the evacuation, when I talk about the evacuation 3.26 gigawatt of evacuation in place that we have already blocked the substation where we have approval that this particular substation capacity is now allocated to KPI. So that is -- in that, some portion we have already done our substation, PSS substation. We have drawn the line from there to the GSS government substation also.
Okay. So what kind of, let's say, transmission think the issues might have come delayed? How it may impact us? Like those things has to be done with DISCOMs, right?
Sorry, can you just clarify your question?
Like there has to be expanding of transmission lines and infrastructure. I'm not very technically aware of that, but the...
I would call in our CMD, sir. He has just arrived on the call. So he will be the best person because he's master of that evacuation lines and everything. He has been doing him for more than two decades. Dr. Faruk sir will be...
What is the question? Can you please repeat the question so I can give you some [indiscernible].
I think the question that you are asking, correct me if I'm wrong, that evacuation is an issue at present. The government doesn't have that much capacity or evacuation or the transmission lines are the issues. So...
For us, that is not an issue because we have already 3.2 gigawatt evacuation with us. And more in Gujarat, especially the government of Gujarat, they have already planned for the five years, INR 1 lakh crores investment in the transmission line. And all over India also, the government are thinking on this way only, and they are making the very heavy infrastructure for the transmission line. This transmission line is not the new issue. It is from the beginning. It's like a road. You are making manufacturing a car, but your road is not there, who will be -- that will be the topic. that will be the topic.
But in our case, in your company, you are safe enough still, say, two to three years expansion you have already taken in your DC portfolio and the say, DISCOM or the GETCO. There is two transmission lines. One is GETCO and one is DISCOM. So DISCOM always be -- there is some small, small issues come and we resolve. And in GETCO's a big transmission line means there you can get it 1 year before or say, two years before like that. So I think in your company transmission line or the evacuation is not an issue.
Okay. Great to hear that. Actually, I was worried like because we are growing at a faster pace, but the news says that okay, transmission lines growth is not keeping up the pace with the growth in our renewal.
No, no. We have enough white line. So we can grow the picture, no problem.
Okay. That's it from my side. And nice to see Mr. Patel again coming back to the conference call after first, I think he was there. I think.
Thank you very much. Actually, I was not aware. Today, I was somewhere else, and I was in some TV interview. So just I come to know that and I have joined. Thank you. Do I know your name, please?
Akhilesh.
Where are you from, Akhilesh?
I'm in Bangalore.
You are in Bangalore. Okay. Very nice. In Bangalore, we have one supplier, Mr. -- panel manufacturer. Manjunatha, Emmvee. The oldest panel manufacturer in India is from Bangalore.
And on panels, like can you let me know how the prices for us, like say, we buy on the Indian net. So how it is trending for us?
No, no. It's -- we always in also, we have hedged the panel of 1.7 gigawatt already hedged on the today's rate. So if in the future, if the rate goes up, we don't have a problem. And if there is something from any other side, also, we don't have a problem because all Indian manufacturers.
As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thanks, everyone. Thanks to all the investors, shareholders, concerned person for joining this call. This was the end to our conference call of KPI quarter 1 FY '26. We would be having this call again in the next quarter, and we expect all of you to join back again.
Finally, it's a really great comprehension that all of you are so interested and the questions that we had are really engaging and really dive into the matter that opens up our both operational and executional capabilities. So right on the point that the questions were asked. And it feels like everybody is a part of our company, and you have made us feel so.
For the final closing comments, I'll just hand over the call to our Whole-Time Director, Sohil Dabhoya. And one final remark for -- from Dr. Faruk Patel, who we have the privilege of joining us for this conference call after a long time. Sohil, sir, over to you.
Good afternoon, and thank you for your trust and support. It gives us strength and motivation to move forward. At KPI Green Energy, we believe in growing with purpose and building a better future together. Let's continue this journey with the same belief and energy. Thank you once again.
Thank you sir. And just last couple of words from Faruk sir.
Thank you again. And again, I always appreciate the concern and the guideline given to us by your people. And I always appreciate your concern things, and I'm looking forward the next con call and I'm giving you the promise that you will be very happy in next con call more than this quarter. And that is my promise to you people, and we are doing the work from all management and from the all Board of Directors. I really thank to all of you. Thank you.
With that, I think we close the call. Thanks, everyone.
Thank you. On behalf of KPI Green Energy Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.