CARE Ratings Limited has reaffirmed the credit ratings for KP Energy Limited (KPEL), a key player in the renewable energy sector. The reaffirmation comes on the back of significant growth in the company's operations and a robust order book position.

Credit Ratings and Facility Enhancement

CARE Ratings has maintained KPEL's Long-term bank facilities rating at CARE A-; Stable, while the Long-term/Short-term bank facilities are rated CARE A-; Stable/CARE A2+. Notably, the company has seen an increase in its credit facilities:

Operational and Financial Performance

KPEL has demonstrated remarkable growth in its scale of operations. Key highlights include:

• Total operating income grew by 97% in FY25 compared to FY24.
• Order book increased from ₹1,320.00 crore as of June 1, 2024, to ₹3,086.00 crore as of June 30, 2025.
• Successful completion of a 28.6MW wind independent power production project in Vagra, Gujarat, without cost or time overruns.

Financial Metrics

The company's financial performance remains strong:

Strengths and Challenges

KPEL's rating strengths include:

• Experienced promoter group with an established track record in the renewable infrastructure sector.
• Significant growth in order book, providing medium-term revenue visibility.
• Healthy profit margins, with PBILDT margin at 18.86% in FY25.

However, the company faces challenges such as:

• Moderate capital structure with overall gearing at 1.17x as of March 31, 2025.
• Working capital intensive operations with a gross current asset period of 263 days in FY25.
• Geographical concentration of revenue profile, with the entire order book concentrated in Gujarat.

Future Outlook

CARE Ratings has maintained a stable outlook for KPEL, expecting the company to sustain its financial risk profile. This outlook is based on KPEL's established market position, healthy order book, and long-standing customer relationships.

The company plans to expand operations in Maharashtra, Madhya Pradesh, and Rajasthan, which could help diversify its geographical presence. Additionally, KPEL is in the process of raising equity of ₹28.38 crore through share warrants, which may further strengthen its capital structure.

As KPEL continues to grow and execute its order book, investors and stakeholders will be watching closely to see how the company manages its working capital requirements and geographical expansion plans in the competitive renewable energy sector.

KP Energy , a leading wind project developer in India, has announced its financial results for the quarter and half year ended September 30, 2025, showcasing robust growth across key financial metrics.

Financial Highlights

The company reported total income of ₹524.00 crores in H1 FY2026, representing a 55% year-on-year increase from ₹337.00 crores in H1 FY2025. EBITDA grew 59% to ₹118.00 crores compared to ₹74.00 crores in the previous year.

Here's a breakdown of KP Energy's key financial metrics for H1 FY2026:

Notably, Profit After Tax surged 442% to ₹61.00 crores from ₹11.00 crores in H1 FY2025. The company's earnings per share increased 441% to ₹9.15 from ₹1.69.

Operational Highlights

• Cash flow from operating activities improved significantly to ₹85.00 crores compared to ₹6.00 crores in the previous year.
• The company maintains a total renewable portfolio of 1,994 MW.
• KP Energy has an operational IPP asset base of 48.5 MW.

Business Overview

KP Energy operates in renewable energy solutions with a focus on wind and hybrid projects. The company's strong financial performance and strategic positioning in the renewable energy sector demonstrate its potential for continued growth in the evolving energy landscape.

With the Indian government's push for clean energy and the increasing demand for sustainable power solutions, KP Energy appears well-positioned to capitalize on these opportunities and contribute to the country's renewable energy goals.