Thank you and good afternoon everyone, and congratulations on a very good set of numbers. On behalf of Share India Securities, I welcome you all to Q3 FY26 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 question and answer session. Thank you and over to you, sir.

[foreign language]

Hi, good afternoon. Myself Vinod Jain.

I have recently joined as a President Investor Relationships. I am almost one month old baby.

We are here to present and discuss the quarterly and nine months performance of KPI Green Energy Limited. Harshit has already introduced that we have with us Dr.

Alok Das who is our Group CEO, Mr. Sohil Dabhoya who is the Whole-Time Director, and Mr.

Salim Yahoo who is the Group's CFO. Now, I hand over to Group CFO to present the quarterly and nine-month performance.

Thank you.

Thank you, Vinod. Good afternoon everyone.

I am Salim Yahoo, Chief Financial Officer of KPI Green Energy Limited. It is my pleasure to present the financial and operational highlights for the third quarter and the nine-month period ended December 31, 2025.

Once again, we are proud to share that KPI Green Energy has delivered yet another landmark performance, marking our seventh consecutive quarter of highest-ever revenue and achieving our best-ever results for the nine-month period. This sustained momentum underscores our robust execution capabilities and our ability to scale rapidly across our solar and hybrid portfolio.

Starting with our quarterly performance, our total revenue for quarter three FY25-26 stood at ₹676 crore, a strong 45% YoY growth. Our EBITDA increased to ₹251 crore, reflecting a powerful 73% growth.

Similarly, profit before tax rose to ₹170 crore, marking a 48% increase, while profit after tax stood at ₹126 crore, also growing by 48% compared to the same quarter last year. Speaking about the nine-month figures, for the first nine months of the financial year, our total revenue reached ₹1,931 crore, a 64% increase over the previous year.

Just to highlight that the previous year, we had done ₹1,700 crore in the entire year, and we have already crossed that mark in the nine months. EBITDA for the period grew ₹701 crore, up 71%, and profit after tax reached ₹354 crore, registering a 60% growth.

These results highlight our focus on operational efficiency and disciplined financial management. I would like to highlight a significant milestone regarding our 250 MW GUVNL solar project.

I am pleased to share that we have just commissioned 24.2 MW AC, that is 35 MW DC, of this project, and we are ahead of schedule. Importantly, we will be recognizing part-commissioning revenues from this project starting next month.

Going forward, our focus remains on completing the majority of the project capacity by the end of June. Our order book and strategic pipeline continues to expand and diversified rapidly.

During quarter three, we secured 142 MW floating solar EPC contract from GSECL at Kadana Dam and received a letter of intent from GUVNL for 445 MW / 890 MWh standalone BESS project supported by viability gap funding. Further, we received balance of plant supply and onsite services orders from Adani Green totaling 350 534 MW at Khavda.

Additionally, we have signed a landmark MOU with Government of Botswana for a large-scale renewable energy generation and energy storage with a potential capacity of approximately 5 GW. We are progressing rapidly on this opportunity and aim to commission an initial 500 MW project in a couple of years.

In conclusion, with record-breaking revenue, strong execution across our GUVNL projects, and a clear global expansion strategy, KPI Green Energy is firmly on track to achieve its long-term vision of 10 GW capacity by 2030. We expect this to achieve before our targeted date of 2030.

I thank you all for your support, and I thank you for continued trust and support that KPI Green Energy Limited has received. I will be happy now to take the question and answer.

We can open the floor for question and answer. Thank you very much.

Hello. Am I audible?

Garvit, you're audible.

Good afternoon and congrats for a good set of numbers.

Thank you.

First question is regarding the LOI that we got from GUVNL for BESS. Can you put some more color on it in terms of investment we will be doing here and the kind of IRR we are expecting from this project, and when will this LOI will be converting into the confirmed order?

That's the first question.

Yeah. You're talking about the BESS project, right?

GUVNL 445 MW and 890 MWh?

Yes,

sir. We have received the LOI.

We are just finalizing on this, but the IRR we are expect around 13% to 14% is something that we are expecting in this project depending upon the viability. Because the battery prices are fluctuating and we expect them to go downward trend.

We expect that we will be able to achieve the 13% to 14% IRR. Shortly, we'll be doing the financial closure.

A lot of our existing lenders have shown interest in associating with us for this particular project, BESS project. We have a very good interest from the market, from the lenders, and we have very good opportunities.

We're associating with some of the top brains for executing this project when it comes to the EPC on their designing and other parts also.

You did not mention the amount of investment are we committing here?

I told. Just a second.

This is around 445 MW, right? It will be at around ₹2,000 to ₹3,000 crore kind of a total investment that we expect in this particular project along with the renewable power also.

Understood. Sir, recently, because of a significant jump in the silver prices and we understand silver is one of the key commodity getting used in the solar panels and cells as well, and silver paste, it is getting imported from China because China is having the significant processing capacity their own.

They are putting some restrictions on export of these key components. In this scenario, how are we looking towards it?

If the costs get increased because of the shortage of supply or increase in the imports, how KPI Green is going to manage its margins, sir?

See, there are two aspects to this. One aspect is that domestic manufacturing capacity has also increased substantially, okay?

The prices have settled down when it comes to the panel. As far as KPI is concerned, KPI is not a manufacturer of a panel, okay?

You need to understand that whatever contracts we do with GUVNL, the tender has a clause which says that if there is an increase in the prices, it will automatically factor in the increase in the tariff. We are safeguarded from that.

Similarly, when we sign an EPC contract with private players or anything, there also we have that we block the stock immediately the moment we fix the contract, or we sign the contract or sales order. At that time, we also block the material.

We are naturally hedged over there. As far as the bigger EPC contracts are concerned, automatically there also the price clause is there that in case if there is an increase in the prices of the panels beyond some extent, 5% or something, then it automatically can be passed on to the customer.

We are well, you can say, hedged or well safeguarded ourselves in our all kind of businesses.

The ₹6,000 crore order book that we are currently having, is it correct understanding that for entire order book, we are having the price variation clause inbuilt?

Yes. If this ₹6,000 crore order book, if it is also where we have the entire plant setup and building, also there are an order of balance of plants, okay?

Wherever we have an order, the ₹6,000 in this 6,000 majority is the utility scale. What we call at utility scale is the CIL, SJVN, all government entities, NTPC.

There we already have a clause in that, we don't have to worry about that. As far as private, I told you, we have already built up the inventory for the private orders that came.

Hello.

Hello. Aman.

Sir, my question is on the MOU of ₹36,000 crore investment in Botswana. I just wanted to understand who is going to invest such a big amount?

Is it the government of Botswana will finance it and KPI Green is supposed to leverage its EPC capabilities or how is it going to work? Also, what is the size of revenue do we anticipate from this particular project over the next 1 to 2 years, sir?

See, we have already disclosed in the public domain that in next 1 to 2 years, we are looking at 500 MW capacity out of the 5 GW. The rest will come later on.

For 500 MW capacity, it will be around ₹1,500 to ₹1,700 kind of a total project cost. For that, equity is already there.

A lot of lenders are also keen that they want to join hands with us for setting up this thing. Initially, we can have.

After that, we can look at various other options. We can look at InVIT, we can look at different ways or our calling in for some investors in our Botswana entity.

That is something that we have to plan after we complete this 500 MW. Initially, we will be setting up 500 MW in next couple of years.

After that, for the next 5 GW. Yes, this entire project will be IPP project for KPI, and power will be sold to the Botswana and its neighboring countries.

There is no investment from the government, but there will be a lot of support on the signing of PPAs and taking power purchase and using the transmission lines and all. That will be supported by the Botswana government.

What is the IRR do we anticipate, sir?

Naturally, see, we are at present building up for this 500 MW. We don't work below 12% IRR when it comes to any project, we will try to maintain that.

I think if you look at the tariff in Botswana is higher than what we have in India, automatically my IRR will be far more better than what I'm earning in India.

Got it. For the current projects, GUVNL projects, we are expecting 13%, there you are saying it will be better than 13%?

Yeah. It will be higher than this.

Perfect. Secondly, if I look at your last 6 months, we have filed a lot of information about many initiatives, being it the MOU with the South Korea on green hydrogen and ammonia, or receiving the Category 1 power trading license, or the MOU with the Government of Gujarat for establishing the hydrogen and EV EV fuel stations.

I just want to hear from you the further updates on all of these MOUs because I'm not seeing anything on this part. I understand that the things takes their own time, but at least you can share share the tentative timeline and active status of these MOUs.

When can we expect all of these initiatives to start generating to the revenue in a meaningful manner, sir?

Aman, as you said, these all are, for example, hydrogen. Hydrogen is a new product altogether when it comes to for a humanity.

It's a new product. For that, it will take up time for it to materialize and to reach its lifecycle of a product.

Automatically, all this has to start with an idea. It has to start with an MOU.

We have started over there. Until unless you start, you'll not be able to finish the race.

We are working on that. Actually, sometime what happens if you look at the trajectory of solar, when it started, it was very slow, and slowly slowly, it started because there has to be a price parity that has to come into the picture.

From that point of view, but as far as the other MOUs are concerned, we are already working on those MOUs. For the Gujarat MOU and everything.

We are infusing funds, we are setting up plants in Gujarat. Those are part of those MOUs only.

The MOU states that we will be investing so much in Gujarat, we are already investing in Gujarat more and more. That MOUs are already in place.

As far as the new projects are concerned or new products are concerned, it will take time, and we will as and when we have major news in that, will surely disclose that on the BSE and NSE also for our investors.

Good afternoon, sir. Congratulations for fantastic numbers.

My question is for Salim, sir. Actually, part of the question was already asked by the earlier participant.

I wanted to just get a broad understanding that during February 2025 concall, there was a question raised on IRA like tariffs in US due to which the panel prices fell down and there was a concern that it would be affecting our margins. Now, the reverse has been happening since, say, December end.

The panel prices have shot up, and the earlier participant was raising concern on silver prices as well. Whether the panel prices go up or down, the margins will remain intact is what I wanted to understand.

The other thing is the various products which have come up like battery energy storage system and green hydrogen and floating solar, you have entered into all these new products. I want to know how will it impact the net profit margins in the coming, say, 2 to 3 years?

Will it remain stable at 18%? We have been maintaining 17% to 18% till now.

See, I'll just take your second question first. The new product, as I told you, they are at a nascent stage.

Right now it is at a nascent stage, we'll not be able to disclose that what is the margin impact because this product itself has to complete its lifecycle. Then only will we be able to explain because the prices will keep on moving, there will be a lot of change and everything.

As far as the margin impact because of the panel prices, I already explained that. One is IPP where we do our own plant, so that doesn't have any impact on the margin because it's a CapEx for me.

That is a funding and CapEx added, automatically it will only generate a power, and when they sell the power, the revenue comes. My IPP is not going to impact.

CPP, as far as CPP is concerned, I already explained that if it is a private customer, we immediately, the moment we sign sales order, we confirm the order, at that time, we immediately block our panels also. We factor in that our pricings should be such that our profit margins are maintained.

As far as the bigger contracts are concerned like CIL and SJVN, there we already have a clause in the tenders that which said that in case if the prices of the panel or the product goes too high beyond 5% or range or something, then they will be relooking at the pricing that have been fixed earlier.

Sir. Thank you, sir.

I'll join back the queue. All the best for the coming quarters, sir.

Thank you.

Thank you. Thank you.

Hi, sir. Sir, just one question on our IPP business.

In FY25, we ended the year with 503 MW. I'm assuming a large portion of this would be Khavda, right?

Because otherwise, this year, the unit generation should be northwards of 80-odd crore units. Please correct if I'm wrong somewhere.

Khavda, we had completed in FY25, but the delay in that offtake of the unit was because of the government substation not completed. The government has completed the substation recently in December, now in the next quarter, we'll see the revenue from the Khavda because that is one major thing which we will be seeing movement in our IPP.

Interesting, sir. Interesting.

In all probability, we should reach the quarterly run rate of whatever that number is of say 20 crore units per quarter from the fourth quarter onwards if my understanding is correct.

See, we will be targeting that only. Usually, when the plant is set up, there is a stability period.

There will be a stability period where there's a checking and everything keeps on happening. Hopefully, we'll try to match that the quarterly target that which has been given.

In case, there will be a short up and down because of the stability because the plant is new, it has to stable. After that, a quarter or something, then it will be stable, then it will keep on generating the same revenue for next 25 years.

Super, sir. Super.

I think that's all from my end, and I will join back the queue for further questions. Sure.

Hello. Yes.

Good afternoon, everyone. I think first of all, congratulations for your good set of numbers.

I think one question which you already answered, I think 240 MW this Khavda project is not yet synchronized. It has to be synchronized in Jan something or in Feb something?

What do you think?

No, I said that the substation, government substation, which has to take the power from us where we have to input our power, that substation was not ready till December. Now, it has ready and they have charged it also.

Now, they have started taking the power. We have started offtaking the power to the government substation.

It means in this quarter, quarter four,

we can expect the revenue in this quarter, right? Yes, yes.

Okay. Second question is, Mr.

Salim, that your SunDrops IPO, when do you expect to bring this IPO? What will be the timeline?

See, we are expecting in the next financial year, most probably in the first half year of the next financial year, we're expecting to close it. The reason for that, we are expecting big orders in BESS because SunDrops will be focusing more on battery energy solar system, which is a new product altogether.

Once we have that good object also, we will float the IPO as early as possible, most probably in the first half of the next financial year.

Okay. Okay.

Okay. Okay.

Great. Thank you.

Thank you so much for this, sir. Thank you.

Good afternoon, sir. Congratulations on an excellent set of results.

My question is to Salim, sir. I hope you're doing well.

My question is regarding the 1 GW IPP commissioning by March '26 as it was discussed in our last concall. Are we on track to commission that?

Yes, Gaurav. Before we start the question-answer, I had given a speech.

In that speech, I have already said that out of that 1 GW, we have already charged and we have started sending power for 50 35 MW altogether. It will be done in a piecemeal, and we are very much in line to achieve our target over there.

Sir. Thank you.

I'll rejoin the queue for further questions.

Sure.

Congratulations for the continued growth, sir. Just question on the IPP part.

As of this quarter, maybe how much IPP MW is actually contributing to revenue, and how do you see maybe the year-ending and maybe first half of this next year and also the end of next year, how much MW might be actually contributing to the revenue?

See, in this, if you see, I'll just explain. Just hold on.

Sure. My IPP is around 500 MW installed capacity.

Out of this capacity, as we discussed a couple of minutes back, that 240 MW was Khavda which the government substation was not energized. That's why you're not able to see the revenue over there.

In coming quarters, you'll see the revenue from that. You can see that 50% of this was energized in March only, but the revenue started post that.

Also 50 MW hybrid which we have set up, which is also with GUVNL, that also started generating revenue. We have got revenue in Jan also, Jan, Feb, March.

We are expecting another 250 will start generating revenue in the last quarter, and after that, it will continue. If you can say that actual what megawatt has given is around 250 MW is something that which has sorry, 200 MW is something that has given us the revenue in this 9 months.

Okay. Okay.

Understood. Sir, on the CPP, basically the margin seems a bit higher just for this quarter.

If a 9% is the IPP revenue, but the overall consolidated margins were around 36%. The CPP margin seems maybe 30%, 31%, but on a regular basis, we have 20% or 22%.

If this is correct, maybe could you help me understand what has caused this almost 10% jump in the margin?

Yeah. Let me explain you.

See, IPP adds to the bottom line. IPP EBITDA is around 85% to 90%.

Okay? Because I don't have any cost once I set up the plant, okay?

My EBITDA is around 80% to 85% to 90%, whereas CPP is around 18% to 20%. Combined, if you see, the cumulative EBITDA will come around 30% to 35% kind of EBITDA.

As we go down with other costs and everything, my PAT is around 18-odd percent. Reason for getting very good margin in the CPP also is that we have evacuation, we have land bank.

We charge a premium because we can give plant within shortest period. All those factors help me to charge a premium for that, and we have that long-standing our track record of execution.

Whatever I do for CPP, I have my IPP plants over there also. The customer is quite comfortable with us that these are not a fly-by-night operator or somebody who's going to close the shop.

As far as the utility scale are concerned, you can understand that. Because we are at a big scale now, we have economies of large scale, so that help us to reduce the pricing and earn the profit margin over there.

Thanks so much, sir, answering the question. Thank you.

Thanks.

[foreign language]

Hi, sir. Am I audible?

Sahil, you're audible.

Hello?

Yeah. Congrats for

excellent set of numbers.

Thank you, Sahil.

Sir, given the current leverage and pledging levels, how does management balance growth, debt reduction, and shareholder value creation as the share has quite underperformed?

See, Sahil, you need to understand the share has not underperformed. It's the external factors that are impacting, and it is not impacting KPI, it is impacting all over the market because of the uncertainty in the world economy or you can say the relationship between countries and uncertainty over there.

As far as your concern on the debt-equity, if you see my debt-equity is 1.95. My total borrowing, which includes my short-term borrowing and long-term borrowing, it is 1.95:1, which is one of the best in the industry for a companies which are into CapEx mode.

Right? You might see if you compare it with other big players, there are players with a six 6:1 and all this.

I am very well placed when it comes to the debt-equity, and as far as the results are concerned, we have been giving good results year-on-year, quarter-on-quarter. There is nothing that from the company's side.

It is only the economic factors, external factors which are impacting, and that is impacting every company whether it is doing good or bad. There, nobody has a control.

Once there is a stability in the international market, automatically you'll see the prices going up.

Correct. Thank you so much.

That helps a lot. Thank you and all the best, sir.

Thank you.

Thank you.

Thank you for the opportunity. I have a bunch of questions, but given the paucity of time, I'll just stick to one.

There is a lot of orders that we keep hearing about. It would be nice if you told us what was the previous quarter ending order book and only for CPP, because IPP is your own perhaps, speaking only for myself, I'm more interested in what you're doing for third parties in terms of order book.

What is the new incremental order book, and what is the CPP closing order book? After you tell me this, if you could also tell me the scale is increasing quite a bit.

If you can talk about your organization building to address this dramatically higher scale of operations, I wonder or I worry that you may not be able to execute. If you could answer these two questions for me, I'd be grateful.

See, I'll just touch up this question, and I'll also give to my colleague, our CEO, Dr. Alok sahab, before he's pitching in.

If you look at our presentation also, on the CPP segment, The order book in the FY25 quarter last quarter of FY25, which was at 1.96 on the CPP side, has gone up to 2.57 GW. There is a substantial growth in the order book.

As far as the individual breakup is concerned, I'll just let Alok sir to speak like

that. Here good afternoon.

Basically, your question was there the segmented about IPP and CPP, right? If you ask questions, if you see that Q2 Q2 of FY26, CPP was 2,426 MW.

Q3 of FY26 is 2,572 MW. I'm just segmented only for the CPP.

Similarly, just to give a hint about IPP, there was a 1,726 and Q3, it has come 2,171. It is there in the public domain also.

We have

Also I would like to throw light on your fear factor of whether we will be able to execute or not. There's one factor which we need to understand that whenever we complete an order, until and unless we complete the entire order, for example, if I have 500 MW, until and unless I complete the entire 500 MW, I might not put it on the board that I have completed 500, though I might book the revenues because I might have done 200 MW, but entire order is complete only after that we put.

That there will always be a little bit gap between what is being seen in the presentation because we don't put until and unless we complete the entire order. That's why if the growth is there, the revenue is booked, that means there is a progress that is happening, and now we are going to big orders.

Until we complete the big order, we will not. Suddenly you might see in one quarter, you might see 500, 600 MW added to it, we might have completed one order, big order over there.

The revenue for that has come over a period of time in different quarters that we have.

Got it. Just one additional one, that now that you will be getting Khavda revenue which was due to evacuation problem, you were not able to book the revenue, would the combined or the blended EBITDA margin go up materially from what it was in the third quarter?

As you roll forward to the next year, not only the top line will go up, but due to the nature of the mix, the IPP is very high margin, blended margin would be going up sharply?

No. No, the reason is that, simultaneously, I'm also increasing my CPP portfolio.

My growth in CPP will automatically net off the profit that is added from the IPP. Automatically, once I increase my CPP, if you see, my top line is growing at a 50% to 60% year-on-year.

That growth is coming from the CPP business mostly. Even if we add more and more, it will not have major impact until and unless I have something like 1 GW or 2 GW added to the IPP portfolio immediately.

Then only it will grow. At the same time, you can understand that CPP will not remain constant, it will increase.

Automatically, in value terms, EBITDA will increase, but the margin terms, it will most probably remain in the same ratio.

That means EBITDA and top line will grow at a similar ratio or similar percentage in the coming year?

Yes, they will remain at the similar percentage. We'll be able to maintain them.

In absolute terms, they will increase.

No, absolutely, but that it won't be that top line moving by X and the bottom line will move X plus something?

See, I am saying again that the margin will remain same. For example, if the top line is increasing, it will be on that top line, your absolute profitability will increase and the margin will remain same.

Margin will not increase. That's what I'm trying to say.

Great. Thank you very much.

You would not be raising any equity in the coming year?

Nothing at present, we have no ideas on that. We will surely, if there is something, we'll disclose that on the BSE.

Anil, I also like to clarify on the initial question you had asked, right, where you mentioned the order book, we had shared the megawatt number, but I believe you want the numbers in monetary terms. With monetary terms, we are comfortably ₹5,500-plus crore order book only for EPC as of this quarter.

Got it. The increment has been in rupee terms, increment for this quarter gone by?

Yes, that's

Sorry. Can you repeat that question?

The increase during the quarter in the rupee value of order book? Like we are at 5,500 now, previous quarter ending, we were at what rupee value?

It was around 4,000-odd crore, and this quarter, we have 5,500. There is also some which is added, and also some which we have completed, you can say that's refilled kind of a thing.

Oh, wonderful. Wonderful.

Such a marvelous rate of growth. Now, thank you very much.

Thank you.

Hi. I had a question on the subsidiary SunDrops Energy.

I wanted to know what was the revenue for this quarter and what is the current capacity that we have there?

In this quarter, we have approximately 150-odd crore done in SunDrops. We expect because, as I told you, there are a lot of orders which billing has to be done and it will mostly get completed in the last quarter.

We expect the last quarter will be a bumper again for SunDrops.

Okay. Any revenue targets for next year going forward?

See,

we have our targets, we can say. As we have told in our various public forums, we expect 50% to 60% growth year-on-year, that is the minimum, but we might surpass that in SunDrops as far as.

Okay. The capacity that we have currently?

See, the capacity, you're talking about the IPP?

Yeah.

See, now when we are entering into BESS, it will not be right to just match the capacity because there will be a battery energy storage system also that we'll be adding to SunDrops. So Okay.

Renewable energy capacity and there is also EPC business, DREBP and other project that we are doing in SunDrops. Capacity-wise, if we add, there will be around 400 plus 800 MW of BESS, battery energy storage, that we'll be adding up in the next.

Okay. Thank you, sir.

That was all my side.

Hi. Thanks for the follow-up.

Just one question on our subsidiary's IPO only. What is the purpose behind bringing this IPO, and are the existing shareholders going to get the shareholder quota while applying for the IPO?

See, Garvit, this SunDrops has a motive of setting up the entire battery energy storage system businesses and also doing smaller projects which are 35 MW and below kind of a project. The purpose or the object is to enter into battery energy storage system, which is a separate business altogether, and also cater to the MSME or the small clientel which also are into the power business, which also is very big sector for us.

Idea is that. As far as the quota and everything is concerned, there is no decision as of now on the quota or anything, but once we declare the draft red herring prospectus, at that time, we will declare on the quotas and everything.

No, sir. Actually, the reasons you mentioned, these are not aligning with bringing the IPO.

IPO maybe you are bringing just because of raising the funds or something like that. Is that the thought process behind bringing the IPO, or what?

See, as I told you, the IPO is for battery energy storage system. We are setting up a separate vertical for SunDrops, that is battery energy storage system, and that is a new project altogether or a product altogether, and that requires lot of funding.

That's why we are diluting ourselves and getting the IPO in SunDrops so that we can excel ourselves in the battery energy storage system, which is also a requirement of the renewable energy power that is being generated in our other companies.

Okay. What will be the holding of KPI Green in that company after the IPO, sir?

I can assure that KPI will always be the majority stakeholder. It will have 51% and upwards.

Means that numbers will continue to get consolidated in KPI Green, right?

Yes, yes, yes. We have that plan.

We'll consolidate in KPI.

Understood. Understood.

Just regarding the pledge part, although you mentioned last time also, we are seeking to the pledge to be released by March '27. What is the progress on that side?

Can it not happen it should be in a phased manner and by '27, it should be 0% pledge holding? Should it not be like that way?

See, the condition of the pledge, as I explained last time also, was that once we complete this 1 GW project which we have taken funding from SBI, SBI said that, "Once you complete this project, after that, within 6 months, I'll remove all the pledge." The target is around September or something that we have given to the SBI that we will complete the 1 GW by September '26, and within 6 months or something, by March '27, we'll be able to release that.

Now, project, we have already energized 35 MW out of that 250 MW. We will be energizing some in February.

Pledge cannot happen with that they will release a couple of shares this month and next month. It's a total procedure.

There's a legality which has to be taken into consideration and everything. It is only after completion of everything project, after that they will get the COD, and then they will give us the release of the pledge.

Understood, sir. In continuation to the earlier participant when he was trying to understand about the margins profile of IPP business, you mentioned 80% to 85% kind of EBITDA we will be having in the IPP segment.

Once that mix is going to be towards the IPP segment, let's say currently we are having 20% from IPP, if that mix is going towards the 30%, fundamentally the overall EBITDA margin should increase. Why you are saying that EBITDA margins will remain the same?

That's I'm not able to understand.

Nayak. Garvit, are you expecting me to not increase the CPP business?

If I'm not doing the CPP business, that's why my EBITDA margin No.

That's what I'm saying.

Let me complete. First of all, 9% is my IPP revenue as on date, okay, from the total thing.

Now, to move from 9% to 20% also, it will take lot of time because my CPP is also growing substantially. If I have ₹6,000 crore order right now, and if I complete, The next year, it might go up to ₹4,000 crore.

For ₹4,000 crore, I need to have that much revenue from IPP. You need to understand that as I grow, I will also grow my CPP.

That's the reason the margin will remain same. It will not get diluted.

If I only grow my CPP and not grow IPP, then my margin will go down. To maintain the

Because CPP is also expected to grow at a faster rate only.

Yes. Right.

Understood. I think that's all from my side, and all the best for the future.

Thank you. Thanks.

Hello, sir. Good afternoon.

Congratulations on the Q3 numbers. Am I audible?

Yes. You're audible.

Sir, you have done an MOU with Government of Botswana for 5 GW. The whole KPI Group has done that.

I want to understand what is the percentage of KPI Green Energy in this 5 GW? How much exactly KPI Green Energy will hold?

See, you're asking about KPI Green, right? Correct.

Yeah.

KPI Green will be the leader in this particular. There will be a lot of IPP project which will be set up in Botswana company which will somehow be consolidated to the KPI Green only.

Automatically, and whatever the EPC work and everything will go to either if it is a wind, it will go to KP Energy, and the infrastructure requirement will go to KP Green Engineering. That's why we have signed with a group, because the entire group is into renewable energy at various verticals.

It will benefit everyone. The entire plant or the IPP plant will be mostly with the KPI Green, either through subsidiaries, step-down subsidiaries, or direct.

Understood. Can I assume that the IPP segment KPI Green will own, the solar part at least?

Yes. EPC segment will be either to KP Energy when it comes to wind.

As solar, they will do it. Then material, as I told you, will come from KP Green Engineering.

Understood. Makes sense.

Sir, one more thing, our debtor and inventory days have increased Q-o-Q and year-on-year. Are we expecting to settle it down in the upcoming quarters or it will remain same?

See, two things in this. One is that we are growing substantially, and automatically, as I told earlier also, whenever we book an order, we have to lock the inventory, and that's why you can see the inventory have gone up.

As the quarter end, majority of the billing happens in the December and the March quarter. That's why the debtor stays high.

It will cool down as we go forward in the month of April and everything. Again, March will be seeing a little bit spike, and then again April, May, June, you'll see the cooling down of that debtors and inventory also.

Sir,

what kind of return on equity are we expecting on overall business?

See, we have usually been around 20% to 24% kind of a return on equity that we are being giving. As you know that this quarter we don't present the balance sheet, so that's why we are not given this quarter figures on the return on equity, but we will be in the range of 20% to 24%.

Thank you, sir. Thanks so much.

Hi. Thanks for taking my question.

I just wanted to understand what sort of CPP and IPP execution we can do on a full-year basis?

Sorry, Ritesh. If you can just a little bit clarify on your question.

What kind of CPP and IPP execution we have done in the quarter,

or No. For the full year, what kind of execution can we do for this financial year?

Okay. When it comes to the IPP, as I told you, we have planned to have 1 GW by September '26.

This year, a proportion of that will also be energized by March. On the CPP side, as I told you, it's amount-wise we will be growing, but installation, as we complete the entire project, then only we'll count it as an fully installed.

That's why you'll see the revenue coming up in the next quarter and the quarters after there whatever the orders that we have, but the capacity will slowly increase as we go forward.

Okay. Just back-of-the-envelope calculation, last year we did roughly around 447 MW in CPP.

Can we expect roughly around 600 to 800 MW 600 is what we have already done by Q3, around 800 is what we can expect by the Q4 end?

You can expect 800 or more than that also because the last quarter is my bumper quarter.

Fair enough. That's one thing.

Also, I just wanted to understand, from what I understood, correct me if I'm wrong, in regards to the panel costing, for CPP for our private customers, we block the panel cost as and when we get the orders. For the bigger orders, we have the cost escalation clause that basically insulates our panel price rise.

Now, what I want to understand is for the IPP contracts, for that order book, how are we taking the costs?

See, in IPP also, if you read the PPAs that we have signed with GUVNL and everything, there also the clause is there that if there is a substantial increase in the panel prices before blocking the panel or anything, automatically the tariff will be revised. That clause safeguards me when it comes to the IPP, my IRR doesn't get hit.

Okay. Will that lead to some sort of slow down in terms of execution just in case the price parity doesn't match up between both the parties?

No. See, it won't slow down because the lender is also aware that if the prices go up, lender will increase the cost of the project and automatically whatever extra funding is required, they will do the funding.

I don't think that impact anywhere the speed of the project. We have been executing, and you need to understand panel is the last step in the execution.

Before that, there is infrastructure and everything. Panel is just setting up the panel.

It only takes 20%, 30% of the entire time, whereas the infrastructure takes 70% to 80% of the time. It nowhere has any impact on my speed.

Fair enough, that's it from my end. Thanks for the opportunity.

Thanks.

Hello, sir. Am I audible?

Yes, Paras, you're audible.

Thank you so much for this opportunity. It's my first interaction with you, and it's a privilege.

Sir, do we have any plans on acquiring O&M contracts from other IPP producers, wind and solar?

Paras, we have, as you are aware, that we have in-house robotic cleaning, we have network operation centers, which is one of the USP of our businesses. At present, we have on our hand whatever our existing projects or our own projects are there, we are focusing on that.

As we go forward, surely we have that on our plans that when we go forward, we'll utilize or we encash this capability or USP that we have. At that time, we will surely look into taking bigger projects for operation and maintenance.

Exactly. The question came from the kind of capabilities that you guys have already built in-house, so that was the reason for my question.

Currently, how large is your O&M book? Can you publish that from now and the kind of revenues that we'd be generating going forward?

Whatever IPP I am doing or CPP I am doing, every O&M is done by my in-house O&M companies only.

Okay. It's a part of the order book, is it?

The initial contract that is there?

Yes, for example, my IPP as on date which is energized is around 520 MW, and we are expecting to reach to 2.17 GW. All those will be O&M with my O&M company.

Similarly, CPP also going to 2.57 GW, whatever capability I have energized that all are done by my O&M companies.

Okay. May I ask one more question?

Sorry, but in the interest of time and others also, if you can just again join back the queue, that will be helpful. Yeah?

Okay. I'll do that.

Thank you. Thanks so much.

Hello. Good afternoon, sir.

My question is regarding the year-on the quarter-on-quarter growth growth was around 45% in PAT, but the previous quarter, it was around 60% like year-on-on year. Like are we expecting a slowdown because because of the, solar glut and all?

Or are we on track of achieving 50%, 60% growth next year also?

If you see the 9-month figures, if you compare, we are at around 60% growth. We are maintaining that, and we'll maintain that.

There is no slowdown or anything. We already have an order book in hand, and we have very good execution capabilities.

We have inventories with us. I don't think there will be any impact on that, and we will grow at whatever we have committed around 50% to 60% year-on-year.

Okay. Last question, sir.

Regarding the government budget, do you have any specific expectations from this budget which will help in increasing the boost towards renewable energy?

See, our honorable CMD, Dr. Faruk Patel, has already given on various public forums, he has given the expectations that is.

Whatever expectations are from our CMD sir, the same expectation we have. Dr.

Alok, if you can just highlight those expectations. Yeah.

The thing is like this, as per our CMD has suggested, the policy is very conducive. Country is moving for 500 GW.

Just to motivate the people and all because most of this in a distribution company they are coming, our CMD has suggested there's the renewable purchase obligation is a tool. That's to be enforced.

Rule will be there, but that there is an enforcement mechanism. That should be the one criteria.

Second guidance given by our CMD about green corridor in terms of the infrastructure development of power education. Lands are there.

The power education corridor established, obviously that type of trajectory of 500 GW can be achieved. These are the two guidelines given by our CMD to consider during this budget.

Okay. Thank you, sir.

Thank you. Thank you.

Hi, good afternoon, sir. Many of our competitors are talking about entering into transmission EPC as well, but we haven't heard anything from you on this.

Can you throw some light on this?

If we get an opportunity, we always look at having an inorganic growth also. Organically, we are growing very good, as you're aware that is.

We will surely look at it. At present, when it comes to the transmission EPC, for our project, we are doing our own transmission lines and everything.

It is not a new arena for us or a sector for us. We have already been into that.

It's only that how we get into this particular arena and take outside orders. We will surely look into that.

We have been discussing internally also to expand inorganically also. We have something on the table.

As soon as something becomes constructive, we'll surely disclose that in the public.

Additionally, sir, if you can throw some light on our IPP revenue percentage to a total revenue by let's say FY2030?

We are planning to have around 25% to 30% minimum. That is what we are targeting portion.

Let's see how it goes forward because by FY2030, I'm talking about, okay? Because IPP, you need to understand That's a bit conservative.

That's what I'm saying, but I'm

Sorry. Please.

Yeah. I'm saying, see, we have Botswana as you are aware that everything.

Although simultaneously, we are also increasing on the CPP side, automatically there will be an increase in both the segments. We are not only in Botswana, we'll also go to other countries and we are setting up in other continents or something.

We have huge plans about that. A conservative plan that we have is minimum 25% to 30% is that we will try to put in IPP because we know that IPP is something which will give us long-term revenue and gives a very comfort also to the investors and the stakeholder.

Just a query regarding the Botswana project. Roughly maybe around 2 years, we have a target of 500 MW.

Is maybe a faster land pooling with Botswana having a huge land resource considered as maybe one of the factors because compared to maybe say state of Gujarat where maybe land might be spread across multiple regions, and continuous land in Botswana, is that seen as maybe the triggers to maybe have this shorter implementation time of 2 years for 500 MW when we have finished 500 MW in India maybe over a course of 5 or 6 years, sir?

See, as I told earlier also, we have very good support from the Botswana government. That can that is the reason we are entering Botswana.

They have, they have promised us to support on the PPA side also, signing it with the neighboring countries. They have very good evacuation infrastructure, and land availability is also there.

That's the reason we are going, and we know that these two factors, when the government support is there on the evacuation and the land, setting up a plant will not take too much time. We we are aware that these two things are managed by the government, it will be done fast.

That's the reason we are given in a short-term, we are given. Once we set up the 500 MW, because we'll have to set up our team over there and everything, that takes time.

Otherwise, for me, 500 MW, 1 year is also more than enough if I have a full 1 year without any season, I'll complete we can complete 500 MW. We have done in the past

also. Completely understood, sir.

Thanks so much, and all the best for the future. Thank you.

Yeah. One of my previous participants talked about SunDrops revenue, and you talked about the guidance also.

I want to add upon that question is that what is the current PAT, and what is the EBITDA margin, and what future PAT can we expect from this SunDrops IPO?

As I told earlier also, SunDrops we are focusing on BESS, battery energy storage system, which is a big segment which is developing right now. We are allocating SunDrops for that particular business along with its existing business of 35 MW and below kind of a project for MSME and small enterprises and everything.

Retail business like DREBP and everything. Our vision is that this battery energy storage system is expected to grow substantially just like renewable, but going forward, all renewable energy project will have to compulsory have a battery energy storage system.

Because of that, we have a separate entity which will look into this particular segment which is going to grow big. That's the reason we've also come up with an IPO for that, which will require funds for setting up the battery storage system.

Got it. What is the EBITDA margins can we expect, and PAT numbers you can provide us?

See, at present, the EBITDA margin are same in the lines of what KPI is also doing at a consolidated level. It's not totally different.

At present, it has the same business. It's only that it has a smaller capacity of IPP, and it also has a CPP.

At present, you will see the margin would be at around a range of combined EBITDA would be around 25% to 30% kind of a percent, and then PAT would be around 17% to 18% kind of a thing. That won't be too much difference.

Once we enter into BESS, there will be a different margin because BESS will also act as a EPC or a service provider for saving the power from other sources also and selling it in the open market also. All these factors will be taken into consideration.

At that time, the price margins might fluctuate depending upon the project cost, depending upon the various factors, the demand and supply for the battery energy storage.

Next year, what you expect a total turnover?

As we told, in all our companies, we expect 50% to 60% minimum growth year-on-year. This year,

this year what is the turnover expected?

We are talking about financial year '26. That's what I'm saying.

This year, we expect around what we have done last year, we expect 60% growth on that.

Last year, what was the turnover of SunDrops? That

was around just a second, around 300, that's what we So,

This year, you must be targeting a ₹500 crore approx?

Yes. Somewhere around ₹500 to ₹600.

Okay. Thank you.

Hi. My question is on account of debtors.

How much is the debtor's percentage of currently debtor days as of December, or if you can share the value?

See, as of December, the debtor turnover ratio is around 133 days, which was around 90. As I told you, these are my two bumper quarters, December and March.

During that period, majority of the billing happens in the December and the March, you'll find a spike which will eventually cool down when you go into April, May.

Got it. Also, my question is on account of how much is the company that you have going with for IPO, how much is its financials composite of the entire 9 months ₹1,900 crore of revenue?

How much that contributes both on revenue, EBITDA, and PAT?

Right now, approximately I have done 300-odd crore out of 100 1,900 crore. Okay?

So, 100 Around you can say that 1,700 is coming from KPI and its other subsidiary, and 300 is from SunDrops. SunDrops,

okay. How much would be EBITDA of that ₹700 crore for SunDrops?

No, no. ₹300 crore is the top line in 9 months.

That's what we have done with. We have done 50-odd In SunDrops,

right?

In SunDrops. Yeah.

EBITDA, as I told you, is around, if you look at combined EBITDA, it would be around 25% to 30% in that range.

In SunDrops. All right.

Any guidance for SunDrops how much would be going ahead in terms of

See, EBITDA margin will be maintained, and as far as other things are concerned, we will be hitting our growth of 50% to 60% minimum

on the top line.

We will expect around ₹500 to ₹600 crore top line with an EBITDA of 25% to 30%.

All right. Of the entire order book, how much is SunDrops order book?

Can you help me with that number as well?

Other order book would not be, but it would be around ₹400 to ₹500-odd crore would be SunDrops order book because they are retail orders, small small orders, so that will be about. There is enough for the quarter and upcoming first quarter of the next year.

All right. Thank you.

Thanks.

A couple of questions. This is on the IPP side and the recurring revenue that we will be generating.

Can I assume for FY27, the number of units would be around, let's say, 100 crore units and ₹300 crore revenue? What is the trajectory for IPP recurring revenue for the next 2 to 3 years?

See, as I said, once we complete this 1 GW, what we are right now 250 and 370 on the AC side and DC side, if we add that our 50 also. Automatically, we are expecting the revenue to grow substantially.

Exact revenue is something that which, because it's a stability period as I told earlier, and first year of operation, you'll always have fluctuations on the units that are generated, also on the season that you see. There had been elongated rainfall this year.

All those factors will have. It cannot say, but yes, we will grow as we go forward, we'll grow.

This revenues are for next 25 years, that is sure, because PPAs are for next 25 years.

Okay. The 1 GW that

Yeah, go ahead. Yeah.

FY27, we'll complete the 1 GW, FY 26-27, and the revenue of that 1 GW will start coming from FY27-28.

Okay. FY28, what could be the peak revenue once this has materialized and stabilized for IPP?

See, we have already in our presentation we have mentioned that 300 crore kind of a unit generation that we have. There is a slide in our presentation also which clearly says that we expect around 300 crore units, and they are at the rate of ₹3 on an average.

You can then figure it out. Got it.

Thank you.

Thank you again, sir. Sir, when can we expect the first orders from the states of Madhya Pradesh, Odisha, and Andhra Pradesh?

See,

we have already started working over there. We need to understand when we take an order, EPC order I can get I think, I know, floating solar we have got order which is I think in the state of Odisha.

No, this is Dr. Alok speaking.

Now because wherever we have signed an MOU like MP or the Odisha, that is the government. They are coming with a floating solar.

For example, Odisha, they are coming with the EOI and all. Now it is started moving.

Odisha itself, there's a 5 GW potentials are there. First of 100 100 MW bid has been floated, we are participating there.

Something like other state, they are coming with the like that following the model what Gujarat is doing. Now, in Odisha, they declared recently the renewable energy state by the tariff.

These are the future destination where the project are expected in future, particularly solar and floating solar there in Odisha. MP, there's a hybridization are coming.

KPI are doing the resource creation because most of the regulatory framework work under the hybrid projects. Because now the regulatory says wind cannot give the solution, solar cannot give the solution.

There's time series data, generation and consumption, there's a sync. That is why every state is coming for the hybrid project or round-the-clock operations.

What KPI is doing today, we are creating a resource for all state like Rajasthan, MP, and Odisha. You will get the timely some sort of good news out of that state.

Okay. Sir, what are our plans for the data center opportunity, and when does our MOU with INOX show some results in the next 1 year, 2 years?

You see, INOX that whatever we have done, we have already started our state. We are having their dialogue between the company.

We'll be starting first probably some smaller capacity in the state of Gujarat, and after that, we'll be timely disclose that thing. That discussions are on with INOX, how to joint venture both the company can do that.

Yeah. The data center opportunity, because we are doing a massive build-out of data centers in India in the next 5 to 10 years, how do you plan to play that opportunity?

What is that? Data center.

Data center MOU to sign. Data center.

Yeah. In the data center, there is the data center when it's coming to data center, we are having the data center need the round-the-clock operation power, and for that, a particular place like we are now planning some multiple states planning.

That data center needs the gigawatt scale power, and they need for the wind, solar, and storage. All are under study now.

Obviously, storage under data center will be coming some couple of time, and needs to be in sync with the various state policies. We are having some study, particularly Maharashtra, some state in Gujarat, we are under study.

Obviously, it is in a nascent stage. We will come back to you on this issue.

By when, sir, could we expect something concrete on the data center opportunity?

This data center will be whatever the data center, whatever the inquiry will come, generally it takes about a 24-month time for the execution. Obviously, from the RFQ level to execution would take 2 years' time.

Most of the grid connectivity which is coming from the central, so that is coming till '28, '29. You can see that time that kind of trajectory where all the data center will work under central grid.

Okay. Okay.

Thank you so much. I'll get back in the queue.

Thank you.

Sir, I just wanted to ask regarding the someone rightly said that we have the signed project with Odisha, Madhya Pradesh, and all. When are we planning that the bulk orders we can receive at the company level?

You see, thing is like let's say for Rajasthan, we have already got that in BOS contract under you might be knowing from NTPC, we have already got from Rajasthan. That is under planning stage.

Also the same state, we are creating a resource for our small scale retail customer there in Rajasthan. MP, as I said in the previous call, so that is a resource is under creation.

Because that is to be done. Odisha already they have floated the inquiry, and we are participating over there.

Sir, the CMD Faruk Patel said that we are looking for projects like Botswana in South Korea also. Any light when can we expect the agreement or MOU to be signed?

See, our sir had already said that we will be setting up the entire plant or the infrastructure in Botswana, and we will be dispatching power also to the neighboring countries. When neighboring countries, South Africa is there, Zambia is there, Ghana is there.

We'll have a base or we'll have the infrastructure in Botswana, and we will start selling power to all the neighboring countries also. That is what is the thought process.

Yes, as we go forward, when we increase in scale and if there is a requirement, we might enter South Africa also for setting up the infrastructure. No, no.

I meant South Korea.

Korea.

South Korea is about hydrogen. That is in a nascent stage, as I told earlier.

Hydrogen is a new product, and it is in a nascent stage. There are a lot of R&D which are going on.

We have already set up our own 1 MW hydrogen plant in our plant, we are very confident that we will be speeding up on this segment

also. Just to top up to Salim, what I'm telling, because green hydrogen as that we have already started our prototype inventions for that in our factory, number one.

Number two, when it is the green hydrogen, there is a directive from the government, 5 million metric ton has been directive where they need to have a green hydrogen means they should provide particular state land and P facilities. We have already taken some of our initiatives for the port development where it is to be export back to Korea.

These are the planning, we are making all dots separately. We will be making all dots together.

During the course of the time, we'll just let you know what is the trajectory and when we can export for that.

Okay. That answered my question.

Just one request. I know KP Green Engineering publishes half-year results.

Just one request will be if you can shed some light on when you are planning to migrate it to mainboard, that will be great. See,

there's a regulation that we have to minimum a couple of years you have to be on the SME, and after that, as soon as we pass that regulation, we will surely migrate to the mainboard because we have done for our existing companies, we would also like to migrate to the mainboard with that.

Okay. You people are doing a great job.

Thank you for answering all my questions.

Thank you. Thank you.

Sir, thank you again, sir. Sir, I wanted to ask you, now till 2030, we are pretty clear that the Government of India will be executing that 500 GW target that they have, but looking beyond that, the delta in increase of capacity will not be what it was in the decade that's going on.

Sir, what are your plans? How do you plan to keep growing?

Will you cross boundaries? Will you go to the African nations, the Middle East nations?

What is your long-term mission for the growth of the company beyond 2030? I'm assuming we'll be executing till 2030, I'm assuming execution will be perfect.

What beyond 2030?

Paras, if you see, our focus has earlier also, and we have increased our focus on IPP. When I say IPP, this is my 25 years annuity income.

Automatically, whatever I do or set up, for example, if today I'm setting up 1 GW by next year, and then after 5, then 10 GW, this will keep on increasing, and majority of this portion will increase on the IPP side. Once I set up an IPP, I have revenue for next 25 years.

That is what is going to be constant over there. As far as the other projects are concerned, if you see, we have already diversified into multiple things.

We are into hydrogen, which are the new upcoming sector or the segment in the renewable energy, and green hydrogen, in offshore. We have planned that as we go forward, if there is a change or a shift in the renewable energy with some newer products, we will always be there, whether it is an operation maintenance, whether it is offshore, whether it is green hydrogen, whether it is battery energy storage system.

We have been constantly updating ourselves or improving ourselves from what we were last year, and we will surely catch up by 20 After 2030, we'll have clear game plan what we will be there after 2030. To give a comfort, IPP segment will always be there, which will be keep on generating revenue for you with an EBITDA of 85% to 90%.

Which regions in the world do you see the most opportunity apart from India going forward? Like which parts of the globe do you see?

I told you. We see a lot of opportunity in the African continent, and that's why we are setting up in Botswana because the power tariffs are very good over there, and there is availability of what do we say, the land that is there.

Infrastructure is also to an extent is there. We can strengthen that infrastructure.

We see that there is a lot of opportunity in these countries. The best part is that Botswana has the best radiation on the earth, so that is one of the key factor when it comes to solar.

All these factor, whatever what we say the tick marks are fulfilled in Botswana. That's why we see that African countries are one which or the continent is one where we see a lot of traction in the upcoming years.

Okay. Would you be going through a JV or do you plan to go through with this individually in the future, like when you do more work in Africa?

Most probably we will plan in such a way that we want consolidation at a KPI level. Our KPI will get strengthened as we go forward.

There might be to an extent there will be a JV, but 51% will be held by either through step-down subsidiaries or directly by KPI.

You have concrete plans with regards to all of this.

Yes, yes. Yes.

Okay.

Okay. Thank you so much, sir.

Thank you.

Thank you.

Thank you, and I hope that we have given our answer to the satisfaction of the all the investors. Once again, thanks for all your support from the investing community.

Thank you. Thank you very much.