Thank you, Bharat. Good morning, everyone.

On behalf of Ernst & Young, I welcome you to the Q1 FY27 earnings conference call of KPI Green Energy Limited. We are pleased to have with us senior management team from the company represented by Mr.

Sohil Dabhoya, the Whole-time Director, Dr. Alok Das, Group CEO, Mr.

Salim Yahoo, former Chief Financial Officer, and Mr. Vinod Jain, President, Investor Relations.

We will have the opening remarks from the management followed by a question-and-answer session. On that note, let me hand over the call to Mr.

Vinod Jain. Over to you, Mr.

Jain.

Thank you, Cyril. Good morning, everyone.

Myself Vinod Jain, Head of Investor Relations at KPI Green Energy. On behalf of management team, I would like to extend a very warm welcome to all of our investors, analysts, stakeholders, and other participants for today's Q1 FY27 earnings call and for your continued interest and support.

Leadership team has already been introduced by Mr. Cyril.

I would like to briefly touch upon few important leadership developments during the quarter. We are delighted to welcome Professor Sunil Maheshwari as Vice Chairman and Mr.

Rajesh Srivastava as Whole-time Director. Both leaders having decades of experience across strategy, governance, business transformation, renewable energy, infrastructure, and organization leadership further strengthen the depth and capability of our board as we enter the next phase of growth.

We are also pleased to welcome Mr. Kapil Kriplani as incoming Group CFO.

His extensive experience in finance, capital market, and strategic growth initiatives will be a valuable addition as we continue to scale the business and strengthen our institutional platform. Please note that company has published its results and has uploaded the investor presentation yesterday.

I trust that all of you have had the opportunity to review them. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature.

Such forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ from those anticipated. While these statements are based on management's current beliefs and assumptions, investors are cautioned not to place undue reliance on them while making their investment decisions.

With that, now I hand over the call to Mr. Salim Yahoo, our CFO, for his brief address followed by the question-and-answers.

Thank you, and over to Mr. Salim Yahoo.

Thank you, Vinod. Good morning, everyone, and a warm welcome to all of you, those who are there on today's call.

On behalf of KPI Green Energy Limited, I extend a warm welcome to all our investors, analysts, shareholders, and participants joining us today for the earnings conference call for the quarter ended June 30, 2026. I hope all of you have had the opportunity to go through our unaudited financial results and the investor presentation uploaded on the stock exchange.

KPI Green Energy Limited has made a strong start to the financial year FY26-27. The company has continued to deliver healthy growth in revenue and operating profit, backed by consistent execution, a diversified renewable portfolio across IPP and CPP segments, and a clear focus on building long-term sustainable value.

Our journey over the past 5 years reflects the strength and scalability of our business model. During this period, our compounded growth has been remarkable with a 92% CAGR in revenue, 104% CAGR in profit.

This demonstrates that KPI Green Energy Limited remains well aligned with India's renewable energy requirement and continues to create sustainable value for shareholders. Speaking about the financial performance for quarter one FY27, our total income stood at ₹710 crore as compared to ₹614 crore in FY quarter one FY26, registering growth of 16% Y-o-Y.

On the similar line, EBITDA increased to ₹262 crore as compared to ₹217 crore in the corresponding quarter, reflecting a growth of 21% year-on-year. Our EBITDA margin has improved to 37% from 35%, reflecting the operating strength of our portfolio.

Profit after tax for the quarter stood at ₹95 crore as compared to ₹111 crore in quarter one FY26. I would like to take some time and like to explain this clearly.

The year-on-year movement in PAT reflects higher depreciation and finance cost on rapidly growing asset base. As we commission new IPP capacity, the associated depreciation and interest are recognized upfront, while the full revenue and earning contribution of these assets materialize progressively over the year.

Cash profits, which is a better measure of the underlying cash generation of the business, actually grew at 6% year-on-year basis to ₹173 crore as compared to ₹163 crore in quarter one FY26. We expect the full earning contribution of the newly commissioned assets to build through the remainder of FY27.

It is also worth noting that our quarter one FY27 unit generation under the IPP portfolio has grown nearly 4 times year-on-year, and the generation achieved in this single quarter already exceeds 65% of the entire FY26 generation. This reflects the scale of our annuity base and the growing recurring revenue engine of the company.

Speaking about the operational and portfolio highlights, on the operational front, KPI Green continues to scale its renewable portfolio across IPP and CPP segment. As of June 30, 2026, our portfolio has reached approximately 6.94 GW, up 71% year-on-year from 4.06 GW a year ago.

This comprises an installed capacity of 1.87 GW and work-in-progress capacity of 5.07 GW. Of the total portfolio, 2.57 GW is under IPP and 4.37 GW is under the CPP segment.

During the year gone by, we commissioned 0.85 GW of capacity while booking a further 2.88 GW of fresh orders, taking overall capacity from 4.06 GW to 6.94 GW in a single year. This reflects both our execution strength and continued strong demand for our double-engine IPP plus CPP business model.

Our expanding IPP portfolio is expected to generate more than 390 crore units annually at a full run-rate, strengthening the company's recurring revenue base and improving the long-term visibility of earnings. With long tenor 25 years PPA, strong execution capabilities, and integrated project development expertise, we are building a platform that combines growth with predictable cash flows.

We have also continued to strengthen our key execution enablers. Our strategic land bank now stands at 8,657 acres, and our power evacuation capacity has reached 5.10 GW, both of which secures our project pipeline and support faster, lower risk conversation of orders into operating capacity.

During the quarter, we also successfully expanded our geographical footprint into Rajasthan, taking our total number of sites to 133. Speaking about the projects that we won, we continue to make strong progress across our key growth platform.

In battery energy storage, our 565 MW / 1,130 MWh BESS has been executed, and financial closure is under process. In floating solar, we are actively executing 142 MW EPC order for Kadana Dam in Gujarat.

In our 150 MW wind project in GUVNL, the PPA has been signed and financial closure has been achieved, and the PPA signing of our 300 MW SJVN-backed wind project is under process. We have also secured both interstate trading license from the CERC and intrastate trading license from the GERC, and energy trading is being undertaken on a pilot basis, creating wider market access and better realization opportunities.

Speaking about the international expansion, KPI Green is also expanding international footprint to strengthen its global market presence. In Botswana, we have signed an MOU with the government for 5 GW of renewable energy, with planning for first 500 MW phase underway.

In the UAE, through a global alliance with the Farnek Group and F+ Healthcare Technologies, execution is underway for the solar power project integrated with battery energy storage system awarded to our subsidiary, Sun Drops Energia Limited, to power containerized data center facilities. Our balance sheet and financing profile remains robust.

We continue to build on the successful listing of India's first externally credit enhanced green bond, a ₹670 crore, a 5-year instrument carrying 8.50% coupon with quarterly amortization, backed by 65% partial guarantee from GuarantCo, and which is AA+ rated by CRISIL and ICRA. This continues to reinforce the market confidence in KPI Green business model, governance standard, and renewable growth platform.

Looking ahead, our focus remains on strengthening the IPP portfolio, expanding the CPP business, and building capabilities in future growth segments such as BESS, battery energy storage system, green hydrogen, floating solar, offshore wind, pumped storage, and energy trading. Our strategy is to build an integrated renewable energy platform with strong execution capabilities, predictable annuity revenue, and long-term value creation for all the stakeholders.

As India accelerates its renewable energy transition, KPI Green is well positioned to contribute meaningfully through scale, execution, innovation, and disciplined financial management. We remain committed to timely execution, strong governance, sustainable growth, and consistent value creation for all our stakeholders.

With this, I would like to thank all our shareholders, lenders, customers, employees, partners, and regulators for their continued trust and support. I now request the moderator to open the floor for question-and-answer session.

Hello. I hope I'm audible.

Congratulations on the great start for FY27. I have a couple of questions.

Given the expansion of our IPP segment, could you give us some color on how you see the debt and cash position evolving going forward?

IPP segment, at present, we are at a very comfortable leverage, as you can say. We are at around 2 point a couple of figures over there.

Going forward also, if you see the way we are adding our profitability, the way we have already expensed out the debt which was to be taken for our bigger project, that is around 250 and 370 MW. Going forward, I think the debt and equity will be in the comfortable position of 3:1 max-to-max, which will be long-term debt to net worth.

That is it.

Understood, sir. Also if you could give us some color on how our pipeline is shaping up for FY27 and '28?

If you could give us some quarterly if you could give us some quarterly run-rate?

See, as I told you, our IPP segment has energized substantial portion of our existing projects in hand. The CPP also, I have an order book of approximately ₹5,000-plus crore.

Going forward, there is enough order book in hand on the CPP side, and IPP revenue also, as I told in my initial talk that the IPP segment from here will show a better strong upward trajectory. The reason is that all the expenses have been expensed out, and now the revenue has started coming in.

Since it was billed in a phase-wise manner, the revenue will slowly, slowly it will start getting up stronger and stronger. Going forward, I think the coming up quarters will have a far more better performance than what we have seen this quarter also.

Understood, sir. Just about the order book that you just spoke about, if you is there with the data centers coming up, are we targeting any is there any share of data centers in the order book?

If you could give us give us some numbers.

Good morning. Dr.

Alok speaking. Basically, data center is the latest entrant and also opportunist horizon that in the RE sectors.

Generally, data center needs our round-the-clock operations. Nowadays, every data center needs the two things like the round-the-clock operations and all.

Yes, as a KPI, we are in touch with some of the data center people, and some sort of inquiry is going on. I think it is a continuous process.

As and when it is to be materialized, obviously, it should be known to all the stakeholders.

Understood, sir. I have more questions, but I'll join the queue again so that others can also get a chance.

Thanks.

No issues.

Welcome.

Hi, sir. Thanks for taking my question.

Sir, I have a couple of questions. One, on inventory, we saw a large buildup towards the end of the last financial year.

If you can update on the inventory position today, and do we expect inventory to come down probably when we announce the next quarter results?

Yeah. If you see the inventory as on March, you have seen the inventory buildup has been there.

It has come down to some extent in this quarter, and we expect it to go down further as we go ahead. The reason for building the inventory was two, three factors.

One was that since the geopolitical conditions were getting worsened, a lot of material we had to pile up because the availability of material, we don't want it to create a delay in our execution capability. From that point of view, we have added the inventory and stocked up the inventory.

As we go forward, it will slowly, slowly come down as we complete our projects and everything.

That's encouraging, sir. Sir, second question is on Botswana.

We did mention in the opening remarks that 500 MW is under execution. One, when can we see some revenue contribution from this project?

This will be IPP, right?

Botswana will be IPP. Botswana project, the KPI's has a subsidiary in GIFT City now, and under the GIFT City, Botswana company will be a subsidiary of GIFT City.

We have already acquired land over there, 1.5 acres of land has already been 5 acres of land has already been acquired.

500 acres.

500 acres of land has already been acquired. We are at a very advanced stage of signing the PPA also.

Shortly, I think we'll see. By execution point of view, I think this year we'll not see any revenue.

Coming years, we'll start seeing revenues in the Botswana project also.

That's great, sir. Sir, lastly on Sun Drops, before I jump back in the queue, if you can give me what kind of PAT we've generated in Sun Drops compared to last year, that would be helpful.

See, Sun Drops, this quarter, if I want to say, I have already done ₹154, ₹155 crore with a PAT of ₹26-odd crore. It has shown a very good profitability of 17-odd percent.

Since Sun Drops doesn't have any big IPP the way we had in KPI, because of which the KPI PAT was little down. Sun Drops has done an EBITDA of ₹42 crore.

Altogether, you can see that Sun Drops cash profit is also ₹30-odd crore. Going forward, Sun Drops has a very good future.

We are adding up battery energy storage system over there. We are adding the battery energy manufacturing over there.

As you are aware that we are coming with a Sun Drops IPO. We have a strong order book, and Sun Drops, I think this year only on the IPP and CPP side if I look at, we will cross ₹1,500-odd crore of top line this year in Sun Drops.

That's great, sir. That's all from my side.

I will jump back in the queue. Thanks.

Thank you.

Hello. Am I audible?

Yes, Aman, you're audible.

Hi, good morning. I had three questions.

First is on the growth part. While we have maintained our margins on a broader basis, our execution was very slow as compared to our guidance in this quarter, right?

What is the reason for that, because for this time, I'm not seeing any early monsoons or anything like that. Can you help us to understand for not showing 40%, 50% Y-o-Y kind of growth that we have been doing earlier?

Secondly, how we should look at the revenue and the margin numbers for full-year FY27? That's my first question.

Yeah. See, I don't think there was, what we say, a slowdown in the execution.

We have done execution, substantial execution. Now if you see the growth in the revenue is around 16% to 20%.

We were expecting 20%, 30%, but it is also a lot of other factors. We have utility-scale projects where the billing takes some time, because there are institutions like Coal India Limited, Adani Group, and we have Aditya Birla Group.

This got postponed to the next quarter. Coming forward, if you see that the growth we have committed for the 30% to 40% year-on-year, that is something that which we will be able to maintain.

Also on the margin, I have already said that the margin impact is a temporary impact because of the depreciation and the interest. As the stabilization period gets over of these plants, the full revenues start coming in.

It will jump back to the levels that we had seen in the past.

When you are saying 30%, 40% growth, this is different from what your chairman and Mr. Faruk yesterday mentioned in the YouTube interview.

He was speaking about 40%, 50% CAGR. Just wanted to have some clarity on

I understand. See, 40%, 50% growth we have said earlier also, but you need to understand there are geopolitical conditions, I'm just factoring that and being a little bit conservative.

It's not that if we get 50% growth, we'll go to 60 also. It's not that we will curtail ourselves, but the way the geopolitical conditions are coming up, a lot of things are creating as an hurdle for the executions and everything.

From that point of view, I am being a little bit conservative being a finance guy. If we get an opportunity, if these conditions settle down, we will surely jump to what 50%, 60%, whatever the chairman had earlier said.

We will come back to that.

Can you help us to understand a bit more on what kind of impact are you facing in terms of the geopolitical situation? Is it in the terms of the Yeah, sure.

Yeah. See, if you understand, geopolitical condition, the major impact is from the fuel.

Now you understand that a lot of component goes into a solar plant. You have cables, you have steel, you have other ROW issues, you have logistics.

All these factor have got impacted, and if you've seen, majority of the industries have been impacted because of the geopolitical conditions. We cannot say that we are very much averse to it.

We try to maintain it, though we are not as highly impacted as some who are directly involved into the fuel, but we have been impacted because the components that which we use, majorly steel. MMS structure is a steel.

Evacuation towers is a steel. Then we have cables.

These are major components which are impacting. That's the reason we also have impacted to an extent.

We have absorbed some portion of that, and some portion we have passed on to the customers. That has been a factor for us also.

Got it. You mentioned about the stabilization period.

How long we can expect this period to be? Because even if we are growing the top line, because of increased interest cost and depreciation, we will not be able to see any benefit in the terms of the bottom line, right, during this period?

How long investor should look like this period going to be there?

See, if you look at the lenders' point of view, they give a stabilization period of 1 year, okay? Now if you see that in spite of stabilization period, in this quarter, we have done 65% of what we have done in the entire last year.

This clearly shows that my plants have almost in the phase of running in a full-fledged. I expect that in upcoming quarters, you will see the full benefit of the plants.

Automatically, it will then generate the same revenue, it will generate the same profitability that we expect.

How we should look at interest cost and depreciation for rest of the year, for full-year FY27?

See, now the debt has already been taken, and the IDC that we call the interest during construction has been utilized since we have completed the project, a portion of the project. As we go forward, you will have the full interest cost which is coming up for the project, but at the same time, revenue will also get stronger, it will be able to sustain both the things and then maintain the profitability.

Okay. Just last question if I may.

In the interview given by Mr. Faruk yesterday, he mentioned that in this financial year, your focus will be more on the governance side, right?

I wanted to understand more on this front, because we have continuously highlighted our concerns in the past with respect to high pledge percentage and domestic institutions not being on the cap table. Can you throw some little light on this where these issues stand in your governance framework right now, and what else you are looking to cater to?

Yesterday, what he mentioned was it is not about any issues of governance, it is more about the change in the auditors. We have changed our auditors, we have added people in the board, and that is for better guidance, because BDO is in the top five, and we have added BDO as our auditors.

We have to bring better practices, better processes, and for that purpose, we are adding experts in the industry. That is what he wanted to highlight on the governance point.

Got it. Thank you very much, sir, and all the best for the future.

I just want this whole separation between IPP and CPP. The way we are increasing our weightage on the IPP Question?

Shrenik, your voice is cracking. Can you repeat the question?

Okay. Am I audible now?

Yes.

Okay. I just wanted to understand going forward, are you thinking about any changes in the proportion between IPP and CPP?

The way we have increased our weightage for the IPP, it's definitely straining our balance sheet. We are continuously seeing additional equity being infused.

The EPS growth for the first time has come in the negative. The execution of IPP is still a lot in the pipeline, and this is very capital-intensive, and very different from the original model of KPI which was more of CPP.

Looking at the strain that this is building up, are we looking at changing anything in terms of the proportion for the future between the CPP and IPP?

See, as we have earlier in our concalls also said that we will try to maintain IPP at a level of 20-odd percent of the total revenue mix. The reason is that this is a long-term revenue, and it's a very strong revenue.

You can understand IPP gives me an EBITDA of 85% to 90%. It is a sustainable growth for next 25 years.

Once I put an IPP, I don't have to worry about the profitability or the top line and all those things. As far as the IPP concerned, still I am at a very good comfortable leverage position.

I'm still at below 3. I might go up to 3 because all the loans have already been taken of the upcoming project, and we are just executing those projects.

Majority of the project, we have a deadline of September, we'll try to close all the project by September, and the revenue of the part portion of those projects have already started coming in. From that point, I think that my EPS this quarter was down because of the PAT level, because, as you see, EBITDA has been very strong as compared to the previous quarter also.

From that point of view, this is a temporary phenomenon, which will get covered as we stabilize the projects. As I told you that this IPP project, once they stabilize, they will give me a strong profitability, and then EPS will also come back to its original level.

We invest in the company to have a growing EPS, not bringing it to a normal level.

Shrenik, but you need to understand every project has a life cycle, okay? Whenever any project, for example, any factory if you put here, it doesn't start with 100% utilization on the day one.

It takes over a period of time, and that is called the life cycle of a project. Those project life cycle has its own phases.

We are going through that phases, but believe me, if it had been a cash profit less, I can understand. If it had been EBITDA less, I can understand there is a concern.

PAT, you can clearly seen that it's a depreciation, which is a non-cash item majority, and it's only the interest cost, which will also get paid off as we start. The major portion is that you have to focus on is that the generation has grown substantially.

What I did in the full year, 65% of that I've already completed in this first quarter. I have three more quarters.

You can understand the amount of revenue generation that will happen in the IPP going forward is substantial, and you can see EPS will go from the past level to further stronger level as we go forward because of the IPP business.

Let me put this slightly differently. I totally understand your point, and totally understand your perspective as well.

A typical IPP has a much lower ROE, and our ambitions in KPI are much, much higher. In order to invest for the IPP, if we have a ROE of 15%, 18%, we can't have a growth rate of 40%, 50% as has been stated by the company.

That difference will always be required to be financed by an external source, either through equity or debt. This gap is what probably is a challenge for the company right now.

No. Shrenik, you are losing out on one factor.

When you invest, you not only look at the returns on equity, but you also look at the appreciation of the shares, okay? If I give you an example, simple example, if you look at Acme, Acme is a pure kind of an, you can say, IPP, majority IPP kind of.

Look at the PE that Acme is getting. Once we go into that state, automatically your appreciation is also market cap will grow substantially, and as you grow market cap substantially, I presume, as an investor, even as I would rather look at more on appreciation of the share price rather than the return on equity or the dividend that I'm getting.

That's the point we are looking at. We're looking that once we add more and more IPP, we'll get a better PEs from the market, and appreciation of your share will be substantial.

That has been the history with the KPI. When it's started, it has already given 100 times returns to the stakeholder, and we abide by that.

We will give returns, and that's why we have focusing more on IPP, that we get a better returns and automatically EPS increases, and the PE of the company also increases, which increases the market cap.

We keep our fingers crossed. Thank you.

Thanks for the opportunity. One thing I wanted to understand that the gross margins for the CPP segment for KPI Energy and KPI Green, both have fallen substantially.

Is this a one-time issue, or is this the new normal gross margin that we are going to see in the coming years or coming quarters?

See, gross margin, as I told you, one of the factor for the impact on the margin is the geopolitical issues. The cost of a lot of balance of plant, logistics, everything has impacted this, and that's the reason it might have tapered down.

What can we expect going forward for the CPP segment only?

For the CPP, if the issues get resolved, I might jump back to my existing, but there's also a lot of other factor. If you've seen, we were expecting that the issue getting resolved 6 months back only, but it is again and again resurfacing.

That impact, geopolitical conformation is something which we cannot judge right now because the way it went in the past year. We are saying, but as soon as this things improve, we will be able to jump back to our margins.

The impact on margins for KPI Green in gross is still only 300 bps. In KP Energy, EBITDA margins have fallen from 22% to 12%.

How do we investor see to all of this, because there was a hint that margins may dip a little, but not from 22% to 12%. That is our major concern.

See, if you see, KPI along with its existing business has got IPP support. There are some costs which is shared with the IPP, and because of which, the KPI margins, you can say, a little bit better compared.

EPC business, if you see overall, KP Energy is purely, you can say, on the EPC side. From that point of view, it has a little bit more impact of the geopolitical conditions.

For example, I have a crane, which is there in this So I'm utilizing the same crane for the EPC business. Automatically, the cost gets divide and everything.

It is the economies of scale which also factor in. KP Energy itself is an EPC driven business, so that's why it had a more impact compared to this.

You are saying you will be able to get back to 20% in coming quarters, right?

It depends upon the factors also, geopolitical conditions and everything, but we are keen on getting back to our old levels.

What do we expect then

Hi, sir. Congratulations for the good set of numbers.

My question would be related to earlier that you said about the incremental interest and depreciation cost that will be coming higher, but the revenue will be set off the interest and depreciation cost. Just want to understand for the bookkeeping that what would be the incremental interest and depreciation as per the investment that you have made?

See, whatever interest cost, the existing debt what we have taken, now as I told you that my IDC, interest during construction, which is part of the project, which is financed by the lenders, has got over. Now the entire interest will get booked as an expenses.

It doesn't get capitalized. From that point of view, but at the same time, revenue has started, automatically, I have revenue to service that interest.

Now the revenue goes into phase-wise manner, it will full-fledged. For example, 40%, 50% revenue we have booked this.

Going forward, we'll increase 60%, 70%, 80%, 90%. Once it's fully energized or fully stabilized, then we can figure out that the revenue has been able to and give us a good profitability also.

Okay. Any number that you can give us specific for the FY27 or the coming quarter of interest and depreciation?

See, everything depends upon the generation, right? That solar, wind is a seasonal matter.

Until and unless I see the generation, because next quarter also is a lower compared to other quarters in the renewable energy because it has got rains and everything. That also is a factor which will

Okay. Got.

Thank you.

Hello. Sir, thank you so much for the opportunity.

We are currently having an IPP capacity of 1 GW, right? What is the peak cash flows after interest that we expect?

See, I can tell you, my IPP business gives me an EBITDA of 85% to 90%. Post-EBITDA, there are not too much of cost, okay?

It's a

depreciation and interest cost. What's

the annual interest cost?

Annual interest cost would be at around see, our rate of interest is very lucrative at 8.5% or something. Mhm.

If I calculate by 8.5, it's around ₹450-odd crore should be the total full my capacity of ₹5,000-odd crore of debt and something coming into picture. Then my annual interest cost the full year with the entire capacity I can say that 27 20 would be at around ₹450-odd crore.

Okay. What would the annual peak EBITDA we are expecting?

Peak EBITDA, see, 1 GW, I can expect 85% to 90% is EBITDA. I am expecting at least my top line coming from my IPP segment going forward minimum it will be upwards of ₹1,000 crores.

Okay. Do we expect to be at the peak capacity this year itself?

I can expect it in the third or the fourth quarter. The second quarter is a little bit because it's rainy and everything, it will offset.

Third or the fourth quarter, we can expect it.

Understood. That's it from my side.

Thank you so much.

Thank you.

Hi. Sir, in addition to the previous participant, I just wanted to understand when can we achieve this 1,000 CR mark from IPP segment?

That is the full capacity utilization of the IPP segment?

Next financial year, I can tell you that you can enjoy and more than ₹1,000 crore. 1,000 is a very conservative number, I would say.

It will be upward of ₹1,000 crore, I'm saying.

Okay. Can you also let me know particularly to IPP segment, what will be the depreciation there?

See, depreciation, if I look at, it's around Companies Act, it would be around 10% to 15%. As per Income-tax Act, we get 40% depreciation benefit, and that's the biggest part that helps my cash profits.

Okay. Can you let me know what is the total investments we have made?

I just wanted to understand what will be the absolute depreciation we will be

We are still We are still capitalizing the assets and everything. The total investment might go upwards of ₹5,000, ₹6,000 crore in the asset side as we go forward in 2027 till 2027-2028.

It will go in a phase-wise manner.

If even I look at ₹5,000, ₹6,000 CR total investment, and you are speaking about 15% depreciation, right, in the books? It will be in the range of ₹750 to ₹900 CR depreciation you will be having each year, right?

Where is the profit then? ₹850 CR EBITDA we will be doing, ₹450 CR will go into the interest side of

it. See, I said conservative is only for that 1 GW what we are doing.

We already have 500 GW which is already done. You're not counting all those things also, where we have very less depreciation.

Altogether, if you see, the business will be able to generate ₹1,500 to ₹1,600-plus of your revenue. Minimum, that's I'm saying.

Okay. Still, I'm really not getting how we are going to

Actually, I should get some clarity now. I'm asking one question.

Yes, let him complete. Go ahead.

Yeah. Ma'am, just trying to understand even if we take ₹1,500 CR, right, peak revenue, 85% you are saying, it will be EBITDA of more than ₹1,200 CR, right?

On that, you are saying ₹450 CR will be your interest cost, and based on the depreciation numbers, even if I account for ₹700 CR, all together, my expense, after EBITDA expense will be 1,150, and I am doing the EBITDA of 1,200. Then the profit from IPP segment is before tax is only 50 CR.

I'm just trying to understand that, sir.

See, that it is if you are to see the my IPP is all around 1,600, as I told you, is something that full scale when I start. Out of that, 80 85 85% to 90%, it is 1,600 into if I take 90% is 1,500 is my what I say as an EBITDA.

Out of that, interest cost would be around 450. I still have 1,000-odd crore which is left, okay?

Now depreciation, it would be at around I think the depreciation is something which is a calculation. It's around 5 to 10 5% to 10 5%, because it's 25-year plant.

That calculation because plant and machinery has got 15%. Here it is 5% because it's a 25-year plant.

That calculation is what something that we missed out.

Okay? Okay.

85% is EBITDA.

Understood. Yeah.

Thanks.

Hello. Am I audible?

Subhash.

Yeah. Thanks you for clearing so many questions.

I have been your investor for so many years, and I've always believed in the management delivering whatever they guided in the past. I see that you had guided 16% to 18% of PAT margin for FY27, and I see that in Q1, it is quite low.

Do you expect to cover it in at least H2 of the year so that ultimately for FY27, you end up at 16% to 18% PAT margin?

See, quarter three and four is somewhere I am seeing, because see, quarter two again is a rainy season and it has got seasonality where the renewable energy

Sorry. That's why I asked would you cover in H2 H2, that is Q3 and Q4, right?

H2 yeah, H2, we will try H2, we will be covering a portion of it, but full-fledged, what we say, the benefit of the plants, you can see in 2027-2028.

FY27 PAT margin will not be close to the guidance of 16% to 18%, right? It'll be a much lesser.

Do you want to revise that guidance?

It will, as I told, quarter three and four, we will try to whatever the gap which was created in first and the second quarter, we'll try to get covered up as the plant goes toward a more stabilization period. It would be a little bit lesser, I think, compared to what we had shown in the past.

FY27-2028, when the full plant is stabilized, we expect it to jump back to the older levels. Right,

understood that FY27 to sorry, FY28 will be great because of IPP plants in which you have invested right now will be stabilized, and there margins will be higher. I understood that, but for FY27, do you want to revise the PAT margin?

Like you had said 16% to 18% before. What would be

So I told I told you that that that will be a lesser. Now depending upon the seasonality, if my plants better perform because see, it is all the seasonality, but it will be lesser compared to what it was earlier.

That is something which I Fine, but

what is that number?

That's what I'm saying, it depends on seasonality. It's upon wind, it's upon the sun, it's upon the rainy seasons.

All those factors, because my IPP segment adds to the bottom line, and IPP segment depends upon the generation. The generation, as we see, if, what we say, the season is in my favor, more on my favor, more winds and everything because I've got hybrid plants, then the wind is on my side, I can say.

Then I can come back in a better or try to match up with what I did last year. Again, I'm telling, I don't expect it because we have lost this quarter.

Now upcoming quarter also will not season. There are two quarters which we have lost, because of which there will be a dip.

I cannot guide that dip right now because it is not like a manufacturing plant where I can put in raw material and. The raw material is totally seasonality.

On that basis, it is depend.

Okay. My another last question was, you mentioned that for KPI Green, you mentioned one of the strongest reason for the drop in the margins was because of the realization of depreciation and finance costs in the current quarter, but the revenues will be generated in the future quarters, which will cover up the lost margins right now, right?

In the case of KPEL, the revenue has grown up significantly, but still the margins have come down so badly, I would say. Is it because of the geopolitical tensions alone there in KPEL?

Could you specify what are the geopolitical tensions? In which sectors you are facing the trouble?

Okay. Can I speak now?

See, two things you have to see. If you look at the EBITDA of KPI, it has been at the similar levels.

Only the interest and depreciation cost which has major impact. As I had told in the earlier question also, the geopolitical condition has impacted, but it has impacted more to KP Energy because of its nature of totally into EPC business.

Here it is, I don't think even 1% or 2% of the top line will come from the any IPP projects over there. Here it is 17%, 18% coming from the IPP project.

That's also that the cost gets bifurcated into the what do we say, IPP and CPP when it comes to KPI. In KP Energy, it is totally on the cost.

It's become very difficult. Also, it is more of a wind.

The cost over there, the ROW issues over there are far more compared to that in a solar or this plant.

It's solely because of the geopolitical tensions. The other part of my question was the sectors in which you are facing the trouble.

Where are you facing sir?

We are facing on the cost side. We are not facing on the sales side, right?

It's the cost side which we are facing, and sectors, you can say cables, you can say MMS structures, you can say also on the ROW, logistic of all those things, cranes, everything. Every cost goes up, no?

Because even crane we have to hire for year and everything, all the diesel, everything goes up. You need to understand that it is.

Okay. I think that's all.

Thank you so much. Yeah.

Thank you.

Sir, am I audible?

Yes, Sunil. Thanks.

Thank you. I think most of the questions have already been answered, but I think I have one basic question.

We keep talking about the revenue guidance across KPI, KPGL, KP Energy, and all of them, right? I think one which got completely off-guard in terms of the EBITDA guidance, right?

I understand in KPI Green, well the EBITDA was maintained, but the interest cost and depreciation has finally shooted up significantly. I have couple of questions.

One, do we continue to see around ₹250-odd crores for this year? Depreciation around ₹200-odd crores for the entire year?

See, the calculation that we are looking at interest cost, the loan has been disbursed in a phase-wise manner. The interest cost will be in a phase-wise manner.

The calculating of that because it's a phase-wise, every time we take a disbursement, it becomes that it gets calculated. Then there is portion of IDC which was utilized.

Exact calculation for this particular year because again I'm telling you, it's a stabilization period. It is very difficult to factor what cost exactly come.

Similarly, depreciation also, a portion of the plant when we capitalize and everything, the depreciation starts into it. It is, we are doing this projects in a phase-wise manner.

Once we get a COD, it is called commissioning of the plant, then we put to use. As per the law, only when we put to use, we can charge the depreciation.

As we do in a phase-wise manner, we get the depreciation in a phase-wise manner. Both the factors, you can say, is a real-time basis calculation.

Anything to assess at present, because we are still energizing the plant, we are still taking a portion of the disbursement, at this juncture, it is not. As we told in our earlier questions, that the full-fledged in 2027-2028, whatever be the depreciation cost in our previous question, we have also already mentioned that, right?

Because if I look at the March 2026 borrowing, right, it is about ₹5,200-odd crores, correct? There could be an additional borrowing which could have happened the last 3 months or so, right?

Let's take from a March standpoint, out of the ₹5,200-odd crores, how much has been amortized out of this ₹5,200-odd crores? If you can just give me a ballpark number, I'm not looking at the exact figure.

If we say ₹1,000 crores has been accounted for, then the remaining ₹4,200 crores is what going to get accounted for in subsequent years?

As you are aware, in the quarter, we don't prepare the balance sheet. We prepare the balance sheet in the half-yearly only.

Full-fledged amortization is something which it's a what we say, internal data, which I will not be able to tell you. As I told you, it is going in a phase-wise manner.

By the end of this year, you'll see the entire plant being energized and stabilization also will happen by that and next year will get. Exact figures of amortization or the depreciation, it will happen in a phase-wise manner.

Since the balance sheet happens only in the half-yearly, we will not be able to disclose this at this moment.

No prob. That's fair.

I have one question on KP Energy if I may. I know there is a concall later in the evening at 5:00 p.m., but I would request

I have already answered a couple of questions on the KP Energy also with this. Yeah?

It would be good if you can just join because others also would like to have a chance for asking questions, right?

Sure, no problem.

I request you to can join again in the KP Energy concall, okay?

The revenue guidance for KPI, we continue to maintain that 50%, 60% what we have said earlier for the FY27?

That also I answered that we are keen in increasing that to that level, but the geopolitical conditions, lot of factors are which will play as we go forward. Our guidance as per our CMD sir is that we will grow at that level and then we'll try to maintain that levels.

Fair. Fair enough.

Thank you.

Hello. Am I audible?

Yes, Samrat, you are audible. Yes, you are audible.

Good morning, sir. Congratulations for a good set of numbers.

We've seen a growth in revenue. Most of my questions are answered.

I just wanted to know that I heard about the interest and depreciation cost. I'll directly stick to the PAT numbers.

On a conservative basis, if I see a 30% revenue growth as you guided in this concall, the revenue comes to around ₹3,500 crores. If the net profit margin, if you say that Q2 is also going to be impacted because of the monsoon, and H2 will have a jump.

Can I expect a NPM to be at around 15%? The PAT comes to around 520 odd crores.

Will the PAT number be at least closer to the last year, or it'll be lesser than last year is I wanted to know.

See, as I told you, going forward, the stabilization of the plant is a major factor which will in there. As far as what we have projected, we are being conservative because of the geopolitical condition, but we are trying to match with whatever the CMD sir had already said in this.

Absolute terms, it will surely grow. The PAT will grow compared to the absolute terms.

The percentage is something which we will have to figure it out depending upon the various factors like the top line growth and everything. Absolute term, I assure you that we'll grow compared to what we have done in the last year.

Sir, in this particular concall, if we look at the word geopolitical being used, I think in most of the answers this particular term has been used. If you compare it with your previous concalls right from the first ever concall that you've made, I think this is the first time that we are using geopolitical.

However, what I feel is it is just the interest and depreciation cost that has impacted the net profit margin. Your OPMs have been maintained.

Going forward, will we be expecting geopolitical conditions impacting our company a lot more than it was impacting earlier is my question?

See, in the previous concall, whenever somebody asked us, it's more on the sales side. On the sales side, it is not affecting me, but on the cost side is something because I have EPC businesses.

EPC businesses, as I told in my earlier also, and why we said it is because I already bifurcated into KP Energy and KPI Green, and I told you that if you look at KPI Green, EBITDA, it has also grown, I said. The geopolitical condition is more related to the EPC businesses compared to the IPP business.

IPP business, we have already factored the cost and everything, and the revenue is coming not from exports or anything, but. The EPC business is my majority, around 83% is my total revenue comes from the EPC business.

Those business will hit because of the various cost factors, your cable cost, your logistic cost, your MMS structure cost. All these factor will impact the EPC business.

That's what we are trying to say.

Fine, sir. Sir, that's it from my end, and I would like to wish you all the best since I know that you've given your resignation and moving forward.

It was fantastic talking to you in your all the previous concalls, and thank you very much for the tremendous growth that you have given to the company as well as the shareholders. I've been invested in this company since 2021 of July.

I've seen my investments grow a lot under your leadership as well. I thank the entire management team of the KP Group, and wish you all the best.

Samrat, thank you for your kind words, and I would like to say that the management is still there. People come and go, but at the same time, it is in very good hand, and you'll see your investment growing in multiple fold as you go forward again.

Yeah? I wish you best for.

Thank you. Thank you, sir.

Am I audible? Yeah.

Yes, Nishant. Yeah.

Okay.

My question is, despite the company's growth doubling, market cap has fallen by nearly 50%, right, and the stock is trading at a PE roughly half the sector. This represents a clear disconnect between business performance and shareholder value.

What does management believe is driving this continued weakness in the share price, and what concrete actions are being taken to restore long-standing investor confidence and, more importantly, attract institutional investors?

See, the share price is not something which is controlled by the management or anything. You need to understand.

Management has taken cautious call. Like if you see one of the action is that we have hired now BDO, which is one of the top five, as our auditor.

This is a positive very positive action which has been taken to increase the confidence of the stakeholders, of the lenders, and everything. This, I think, will go a long way to increase the and at the same time, promoter has also increasing the stake.

If you see, he has already given for warrants, promoter group company Khemas has purchased shares. Promoter has been very positive on the growth of the company, and that's why he has increased his stake.

If you look at any other companies, promoter today is almost 51%-plus. He has majority stake in this company.

You can be assured that management is taking steps and to increase the trust which is there with the investors. All right.

Before I move to the second question, nothing on attraction to institutional investors, right, because that has been a concern. See,

institutional investors are still there. If you see my presentation, also we have Vanguard, we have Abu Dhabi Investment Fund, we have Morgan Stanley, we have Bengal pension funds, right?

All those institutional investors are still there. Blackstone is also there.

All these are still there in this script. You don't have to worry about that.

It's a temporary phase which sometimes retail investors are unable to understand, and that's why there a little bit, you can say, a decline of. On that continuity, it's a priority of the management.

The last question, the cash flow from the last quarter?

Sorry?

The cash flow from last quarter.

Cash flow from last quarter. If you can see, can add the depreciation on the part I can say, my PAT is around ₹94 crore.

Plus if I add the depreciation portion, which is around ₹45 crore, approximately you can say 140 150 ₹140, ₹150 crore is the cash flow from operation.

Okay. Thank you.

Yeah. That's it.

Thank you, everyone. Now I will request Mr.

Sohil Dabhoya to say some words.

Good afternoon, everyone. I would like to extend my heartfelt thanks to all our investors for joining today's earnings call.

Your continued trust, confidence, and unwavering support in KPI Green Energy mean a great deal to us. We truly value the faith you have placed in our company, and we remain committed to creating long-term value for our all stakeholders.

Before we conclude, I would also like to take a moment to express our sincere gratitude to Mr. Salim Yahoo, who has been an integral part of our journey and has made significant contribution to the financial strength and growth of our journey.

Salim is stepping away due to personal family commitments, and on behalf of the board, the management team, and all our investors, I would like to thank him for his dedication, professionalism, and invaluable service. We wish him and his family the very best for the future.

At the same time, it gives me great pleasure to welcome Mr. Kapil Kriplani as our new Chief Financial Officer.

Kapil brings with him rich experience and deep financial expertise, and we are confident that he will play a key role in supporting the company's next phase of growth and value creation. Kapil, welcome to the KPI Green family.

We look forward to your leadership and contribution. With that, I would now like to invite Mr.

Kapil Kriplani to say a few words and address our valued investors. Kapil, over to you.

Good afternoon, all, and thank you to the Whole-time Director for kind words. I thank the management for the warm welcome.

I also give my best regards to Mr. Salim and hope to transit from him to next level in the future.

We hope for the continued growth which we have shown in last 4 years. I look forward to work with all the stakeholders and create value for all these shareholders.

Thank you very much. That's the end of the call.

Thank you, everyone, for your active participation in the call. Hope we have been able to answer all your queries satisfactorily.

For any additional query, you feel free to write to us at our email address given on our website as well as our investor presentation. We look forward to staying in touch with you for any further interaction.

Thank you very much.