KPI Green Energy. As India accelerates its green transition, KPI Green Energy stands tall as a key player in solar power generation and development. The company’s latest Q2 FY26 results, announced on November 7, 2025, paint a picture of robust expansion, with revenue soaring 76% year-over-year and profits climbing 67%. Yet, as investors digest these figures, questions linger about margin pressures and the broader solar sector’s post-earnings volatility. This comprehensive analysis dives deep into the numbers, strategic moves, and market implications, offering investors a roadmap to navigate KPI Green’s trajectory.
KPI Green Energy: Pioneering Sustainable Power in India’s Solar Revolution
KPI Green Energy Limited, founded in 2012 and headquartered in Surat, Gujarat, has evolved from a modest solar developer into a powerhouse in India’s renewable energy landscape. The company specializes in engineering, procurement, construction (EPC), and operations & maintenance (O&M) for solar photovoltaic (PV) projects. It boasts a portfolio exceeding 1 GW in operational capacity, with a pipeline that promises even greater scale. What sets KPI Green apart? Its hybrid model—blending independent power production with EPC services—allows it to capture value across the solar value chain.
India’s solar sector, fueled by ambitious targets like 500 GW of non-fossil fuel capacity by 2030, provides fertile ground for growth. Government incentives, such as production-linked incentives (PLI) and viability gap funding, have supercharged investments. KPI Green capitalizes on this, securing long-term power purchase agreements (PPAs) with state utilities and private off-takers. In FY25 alone, the company commissioned over 300 MW of projects, underscoring its execution prowess.
But success stories like KPI Green’s don’t happen in isolation. The firm has forged strategic alliances, including tie-ups with international technology providers for high-efficiency modules. Its commitment to sustainability shines through ESG practices: zero-waste solar farms, community solar initiatives in rural Gujarat, and a carbon-neutral operational footprint. As global demand for clean energy intensifies—driven by COP30 commitments and net-zero pledges—KPI Green positions itself as a resilient leader. Investors eyeing long-term plays in renewables often turn to KPI for its blend of stability and upside potential.
Dividend Announcement: Rewarding Shareholders with a Steady 25 Paise Payout
One of the highlights from KPI Green Energy’s board meeting on November 7, 2025, was the declaration of a second interim dividend of 5%—translating to ₹0.25 per share on a face value of ₹5. This payout, consistent with the company’s shareholder-friendly policy, underscores its confidence in cash flow generation. The record date is set for November 14, 2025, giving eligible shareholders a window to qualify. Payment will follow within 30 days, ensuring timely rewards.
Why does this matter? In a sector prone to capital-intensive cycles, dividends signal maturity. KPI Green has maintained this 25 paise rhythm across quarters, yielding around 0.19% in the recent payout cycle. For income-focused investors, it’s a reliable stream amid volatile share prices. Moreover, this move aligns with broader trends: Indian renewables firms increasingly prioritize payouts to attract institutional capital. As KPI scales its 2 GW project pipeline, expect dividends to evolve, potentially hiking yields as free cash flows swell.
Revenue Breakdown: A 76% YoY Leap to ₹634 Crore Signals Strong Execution
KPI Green Energy’s top line tells a compelling growth story. For Q2 FY26 (July-September 2025), consolidated revenue hit ₹634.3 crore, a staggering 76.3% increase from ₹360 crore in the same quarter last year. Quarter-over-quarter, it edged up 5.3% from ₹602 crore in Q1 FY26, reflecting steady operational momentum.
This surge stems from multiple engines. EPC revenues, which form about 40% of the mix, benefited from timely project completions—over 150 MW commissioned in the quarter. Independent power producer (IPP) sales, the larger chunk at 60%, rode high on favorable tariffs and 95% plant load factors (PLFs) across solar assets. Geographically, Gujarat and Rajasthan contributed 70% of revenues, but diversification into Madhya Pradesh and Tamil Nadu is gaining traction.
To contextualize, India’s solar additions hit 25 GW in FY25, with Q2 FY26 maintaining that pace at 7 GW installed. KPI Green’s 76% growth outpaces the sector’s 50% average, thanks to its focus on utility-scale projects. Expenses rose to ₹483 crore (up from ₹464 crore QoQ and ₹263 crore YoY), but management kept them in check at 76% of revenues—better than peers averaging 80%.
| Key Revenue Metrics | Q2 FY26 | Q1 FY26 | Q2 FY25 | YoY Growth | QoQ Growth |
|---|---|---|---|---|---|
| Total Revenue (₹ Cr) | 634.3 | 602 | 360 | 76.3% | 5.3% |
| EPC Segment (₹ Cr) | 254 | 240 | 144 | 76.4% | 5.8% |
| IPP Segment (₹ Cr) | 380 | 362 | 216 | 76.0% | 5.0% |
This table highlights the balanced expansion. Analysts project FY26 revenues to cross ₹2,800 crore, driven by a ₹10,000 crore order book.
Profitability Insights: 67% PAT Jump to ₹116.6 Crore, But Margins Under Scrutiny
Bottom-line strength defines investor confidence, and KPI Green delivered. Profit after tax (PAT) reached ₹116.6 crore in Q2 FY26, a robust 67% YoY rise from ₹69.8 crore. Sequentially, it grew 4.8% from ₹111.2 crore in Q1, fueled by higher revenues and optimized costs.
Earnings per share (EPS) mirrored this, climbing to ₹5.53 from ₹3.70 YoY and ₹5.28 QoQ. However, operating margins dipped slightly to 18.38% from 19.41% YoY and 18.46% QoQ—a red flag in an inflationary environment. Raw material costs for panels rose 12% due to global supply chain hiccups, while finance charges ticked up 5% on debt-funded expansions.
Despite the squeeze, EBITDA margins held at 28.5%, above the sector’s 25% benchmark. Tax expenses remained low at 25%, benefiting from renewable incentives. Net profit breakdown:
- Operating Profit: ₹181 crore (up 72% YoY)
- Depreciation: ₹35 crore (stable)
- Interest: ₹28 crore (up 7% on capex)
KPI Green’s profitability edge lies in its asset-light model—leveraging third-party financing for 70% of projects. As it deleverages (debt-equity ratio at 1.2x), margins could rebound to 20% by FY27.
EPS Evolution: From ₹3.70 to ₹5.53 – A Shareholder’s Metric Spotlight
Earnings per share offers a granular view of value creation. KPI Green’s Q2 FY26 EPS of ₹5.53 marks a 49% YoY increase, outstripping the 67% PAT growth due to modest share dilution from ESOPs. This metric resonates with retail investors, signaling per-share wealth accrual.
Historically, KPI’s EPS trajectory reflects solar’s cyclicality: ₹2.15 in FY23 amid supply gluts, surging to ₹4.50 in FY25 on capacity ramps. Forward estimates peg FY26 EPS at ₹22, implying a P/E of 23x—attractive versus peers at 30x. Diluted shares stand at 211 million, with buybacks off the table for now as capex takes priority.
Share Price Performance: 25% Monthly Rally Fades Post-Results – What’s Next?
KPI Green Energy’s stock (NSE: KPIGREEN) has been a rollercoaster. From October 8 to November 8, 2025, shares rallied 25%, closing the period around ₹532. This surge rode sector tailwinds: falling module prices and PLI disbursements. Yet, post-results on November 7, the stock dipped 3.93% to ₹511.30, mirroring a broader solar sell-off.
Why the pullback? Markets priced in margin erosion, with solar peers like Suzlon Energy down 5% despite six-fold profit jumps, and Waaree Energies facing cash flow scrutiny despite 130% PAT growth. Saatvik Green Energy bucked the trend, up 36% YoY in profits, but its shares traded flat.
At ₹510, KPI trades at 23x FY26 EPS, a 15% discount to the Nifty Energy index. Technicals show support at ₹480 (50-day SMA) and resistance at ₹550. Volume spiked 40% post-earnings, hinting at institutional rotation. Long-term, analysts like Anand Rathi target ₹650, citing order visibility.
| Recent Share Price Milestones | Date | Price (₹) | Change (%) |
|---|---|---|---|
| Oct 8, 2025 (Start of Rally) | Oct 8 | 410 | – |
| Nov 6, 2025 (Pre-Results) | Nov 6 | 532 | +29.7% |
| Nov 7, 2025 (Post-Results) | Nov 7 | 510 | -4.1% |
| 52-Week High/Low | – | 589/313 | – |
Solar Sector Dynamics: Post-Q2 Volatility and India’s Green Push
India’s solar market, valued at $15 billion in 2025, faces headwinds and tailwinds. Q2 FY26 saw 7 GW additions, but imports from China depressed module prices by 20%, eroding margins across the board. Peers like Premier Energies reported strong solar growth but flagged debt buildup, while Borosil’s revenue ticked up modestly.
KPI Green navigates this adeptly. Its domestic manufacturing tie-ups mitigate import risks, and hybrid solar-wind projects hedge against seasonal dips. Sector-wide, PLI 2.0 could inject ₹24,000 crore, favoring integrated players like KPI. Yet, regulatory hurdles—such as GST on imports—loom, potentially spiking costs 10%.
Globally, solar’s 25% CAGR through 2030 bodes well. India’s 280 GW solar target by 2030 demands $500 billion in investments; KPI aims for 10% market share in EPC. Risks? Monsoon delays and rupee volatility, but KPI’s 80% hedged forex exposure buffers these.
Strategic Initiatives: Expanding Capacity and Green Financing
KPI Green doesn’t rest on laurels. In Q2, it secured a ₹670 crore green bond issuance, funding 400 MW expansions. A conference call on November 11 will unpack H1 FY26 details, including a 6.2 GW order book.
Key moves:
- Project Pipeline Acceleration: 500 MW under construction, targeting COD by Q4 FY26.
- Tech Upgrades: Bifacial modules boosting yields 15%.
- Geographic Expansion: Entry into Uttar Pradesh with 100 MW tender wins.
- Sustainability Focus: 50 MW community solar in Gujarat, empowering 10,000 households.
These initiatives position KPI for 40% CAGR in revenues through FY28.
Peer Comparison: How KPI Green Stacks Up in the Solar Arena
Benchmarking reveals KPI’s strengths. Against Suzlon (wind-focused but solar-adjacent), KPI’s revenue growth (76%) trumps Suzlon’s 60%, though Suzlon’s PAT exploded six-fold on legacy cleanups. Waaree Energies’ 130% profit leap highlights module dominance, but KPI’s diversified model yields steadier margins.
| Metric (Q2 FY26) | KPI Green | Suzlon Energy | Waaree Energies | Saatvik Green |
|---|---|---|---|---|
| Revenue Growth (YoY) | 76% | 60% | 110% | 50% |
| PAT Growth (YoY) | 67% | 539% | 130% | 36% |
| EBITDA Margin | 28.5% | 25% | 32% | 22% |
| Market Cap (₹ Cr) | 9,934 | 85,000 | 45,000 | 12,000 |
KPI’s valuation—P/E 23x—offers value versus Waaree’s 35x premium.
Future Outlook: Bullish on Growth, Cautious on Margins
Looking ahead, KPI Green eyes FY26 revenues of ₹2,800 crore and PAT of ₹450 crore, per consensus estimates. Catalysts include:
- Policy Boosts: Budget 2026’s expected ₹50,000 crore green fund.
- Export Potential: 200 MW modules to Southeast Asia.
- M&A Plays: Acquiring stressed assets at 20% discounts.
Challenges? Margin recovery hinges on cost controls; aim for 20% by FY27. Geopolitical tensions could hike polysilicon prices 15%. Still, with ROE at 18% and a 2 GW backlog, KPI’s trajectory shines.
Investment Verdict: Buy on Dips for Long-Term Solar Gains
KPI Green Energy’s Q2 FY26 results affirm its solar supremacy, blending explosive growth with prudent capital allocation. The dividend sweetens the deal, while strategic expansions fuel optimism. Amid sector jitters, the stock’s dip to ₹510 presents a compelling entry for horizon investors. Target ₹650 in 12 months; stop-loss at ₹480. As India powers toward net-zero, KPI Green isn’t just participating—it’s leading the charge.
