Orient Green Power Company , a player in the renewable energy sector, faces a financial setback following a recent Delhi High Court decision. The court rejected the company's appeal against an arbitration ruling in its ongoing dispute with S M Milkose Limited.

Financial Impact

As a result of this legal development, Orient Green Power will be required to recognize an additional provision of ₹3.17 crore in its financial statements for the current quarter. This provision is a direct consequence of the court's decision to uphold the arbitration ruling.

Legal Proceedings

The case highlights the ongoing legal challenges faced by companies in the energy sector. The rejection of Orient Green Power's appeal by the Delhi High Court marks a significant milestone in the dispute between the company and S M Milkose Limited.

Implications for Investors

The additional provision of ₹3.17 crore is likely to impact the company's financial performance for the quarter. Investors and stakeholders should take note of this development as it may affect the company's short-term financial outlook.

While the full details of the dispute between Orient Green Power and S M Milkose Limited are not provided, the outcome of this legal proceeding underscores the importance of monitoring ongoing litigation in assessing a company's financial health and potential risks.

Investors and analysts will likely be watching closely to see how this additional provision affects Orient Green Power's overall financial performance and whether it will have any long-term implications for the company's operations or strategic decisions.

Orient Green Power Company Limited , a leading renewable energy producer, has reported a robust financial performance for the second quarter of fiscal year 2026, with significant improvements in both revenue and profitability. The company's strategic focus on operational efficiency and capacity expansion has yielded positive results, setting the stage for future growth.

Financial Highlights

For the quarter ended September 2025, Orient Green Power reported:

The company's performance for the first half of FY26 was equally impressive:

Operational Performance

The company attributed its strong performance to two key factors:

1. Better wind generation, contributing approximately 60% to the improved results.
2. Enhanced machine availability, accounting for about 40% of the performance boost, following the completion of major maintenance upgrades.

Financial Management

Orient Green Power has made significant strides in improving its financial health:

• Finance costs declined by over 20% due to improved credit ratings and timely repayments.
• The company received a ₹16 crore refund from lenders for excess interest charged in earlier periods.
• Current debt levels stand at ₹525 crores, with the company expecting surplus cash flows of ₹25-30 crores for reinvestment.

Capacity and Expansion Plans

Orient Green Power currently operates 382 MW of wind assets and has ambitious plans for growth:

• 25 MW of solar projects are under development.
• A 7 MW solar project is expected to be commissioned by December 2025.
• The company is targeting a total capacity of 1000 MW through both organic growth and potential inorganic acquisitions.

Future Outlook

While specific timelines for reaching the 1000 MW capacity target remain uncertain, the company is exploring various avenues for growth:

1. Organic expansion, including repowering existing assets.
2. Potential inorganic acquisitions to accelerate capacity addition.
3. Diversification into solar power to complement its wind portfolio and better serve customers seeking a mix of renewable energy sources.

Orient Green Power's strong quarterly results and clear growth strategy position it well in India's expanding renewable energy sector. As the company continues to focus on operational excellence and strategic expansion, it aims to capitalize on the increasing demand for clean energy solutions in the country.

Investor Conference Call Highlights

In a recent investor call, the company's management provided additional insights:

• The improved performance was attributed to a combination of better wind conditions (60%) and operational efficiency (40%).
• The company is exploring a mix of in-house and third-party maintenance for its wind turbines to optimize performance and costs.
• Orient Green Power is cautiously optimistic about the regulatory environment, particularly in Tamil Nadu, where policy changes are expected to be more prospective than retrospective.
• The company is seeing improved payment cycles from state utilities, with good cash flows from its Andhra Pradesh assets.

As Orient Green Power continues to strengthen its position in the renewable energy sector, investors and industry observers will be keenly watching its progress towards the ambitious 1000 MW capacity target and its ability to maintain the current growth trajectory.