Orient Green Power Company Limited announced that India Ratings & Research Private Limited has revised the outlook to positive from stable while affirming the IND BBB- rating for its subsidiary Gamma Green Power Private Limited's bank loan facilities. The rating action covers total facilities worth INR761.90 million and reflects expectations of sustained operational and financial performance in the near term.

Rating Action Details

India Ratings has taken a comprehensive approach by combining the assessment of three entities - Gamma Green Power Private Limited (49.90MW wind capacity), Clarion Wind Farm Private Limited (80.28MW wind capacity), and Delta Renewable Energy Private Limited (25MW solar capacity) - factoring in cash flow fungibility across the entities.

Operational Performance Highlights

Gamma Green Power demonstrated resilient operational metrics during the trailing twelve months ending February 2026. The company achieved an average net plant load factor of 13.87%, showing improvement from previous periods despite regional wind speed variations.

Financial Performance and Debt Coverage

The company's financial metrics show significant improvement, particularly in interest coverage and debt management. Revenue from operations reached INR250.70 million in 9MFY26, while EBITDA margins expanded substantially to 75.00%.

Business Profile and Expansion

Gamma Green Power operates 121 wind turbine generators with an aggregate installed capacity of 49.93MW across Tamil Nadu and Gujarat. The company maintains long-term power purchase agreements extending until 2039 with commercial and industrial customers, ensuring stable cash flows. The project portfolio comprises WTGs with capacity ranging from 225KW to 2,000KW.

The company is currently executing an expansion project involving additional wind capacity of 9.90MW in Trichy, Tamil Nadu. As of March 2026, 6.60MW has been commissioned with the balance expected by end-April 2026. The expansion has achieved approximately 90.00% financial progress and is funded through additional debt of INR735.00 million.

Rating Strengths and Constraints

The rating reflects several positive factors including historical generation levels, firm offtake agreements, and comfortable debt service coverage. The presence of long-term PPAs with moderate-to-strong captive consumers and timely payment receipts within 15 days supports the rating.

However, the rating remains constrained by factors such as lower power generation from older equipment, under-construction risks from expansion activities, and inherent wind resource availability risks. The pledging of shares also constrains the rating profile.

Liquidity Position

Gamma Green Power maintains adequate liquidity with INR24.90 million in cash and unencumbered reserves as of February 2026, equivalent to approximately four months of debt servicing obligations. At the group level, Orient Green Power held INR1,725.50 million in cash, bank balance and short-term investments as of September 2025.

Orient Green Power Company Limited has announced the release of pledge on its investments in five subsidiaries following approval from its promoter SVL Limited. The company informed stock exchanges on April 01, 2026, that SVL Limited issued a No Objection Letter conveying its approval for the pledge release.

Subsidiary Investments Released from Pledge

The pledge release covers investments across five key subsidiaries with varying ownership percentages:

Background of Pledge Creation

The original pledge on these subsidiary investments was created in favor of SVL Limited, one of the promoters of Orient Green Power Company Limited. This pledge was established against loans extended to the company and its subsidiaries. The company had previously communicated the creation of this pledge to stock exchanges through intimations dated May 12, 2025 and June 24, 2025.

Regulatory Compliance

The announcement was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to the regulatory filing, the impact of the pledge release on the listed entity is stated as nil. The company has requested stock exchanges to take the information on record and acknowledge the same.

Corporate Structure Impact

The pledge release affects investments spanning both domestic and international subsidiaries, including the Netherlands-based Orient Green Power Europe BV. The subsidiaries operate primarily in the renewable energy sector, with several entities focused on wind farm operations. The release of these pledges provides the company with greater flexibility in managing its subsidiary investments without encumbrances.