KPI Green Advances 40.96 MW Solar-Hybrid Portfolio Under CPP Segment

Gujarat-based KPI Green has recently received charging/energization approval for 40.96 MW of solar and wind–solar hybrid power projects. In a regulatory filing, the company stated that these projects are being developed under its Captive Power Producer (CPP) business segment.

KPI Green explained that the projects have been developed for its clients — KPI Green Energy and its subsidiary Sun Drops Energia. 

Strategic Execution & Revenue Visibility

Highlighting the strong execution pipeline and visibility, KPI Green said that it currently has three major Independent Power Producer (IPP) projects under development. As shared in the last quarter investors call, by Salim Yahoo, Chief Financial Officer (CFO), these projects include:

• 250 MW pure solar project — 350 MW DC equivalent

• 370 MW hybrid project — 679 MW DC equivalent

• 150 MW standalone wind project

Together, these projects represent a total execution size of ₹5,000 crore.

The company is targeting the completion of the 250 MW pure solar and 370 MW hybrid projects by September 2026, in a phased manner. Importantly, part commissioning and revenue recognition are expected to begin within the next few quarters, enabling early monetization and cash flow generation.

These projects are backed by 25-year long-term PPAs with GUVNL, described as one of the best paymasters, ensuring stable annuity income and reinforcing long-term earnings visibility.

Progress Under The IPP-CPP Segment

Yahoo mentioned that until Q1 FY26, KPI Green’s revenue mix stood at 12%–13% from IPP and 86%–87% from CPP. Going forward, the company is targeting 10 GW of capacity, with a plan to achieve a 25% revenue share from IPP and 75% from CPP. Based on this evolving mix, it aims to maintain an average realization of around ₹3/unit for future projects.

The company further stated that based on its existing portfolio and 1,511 MW DC upcoming IPP capacity, the current blended realization would average ₹3.5–₹3.6/unit.

Yahoo added that improving profitability depends on a higher share of IPP projects, as IPP yields better margins. He said, “Now it depends upon the mix of IPP and CPP as we go forward for the 10 gigawatts. So, that will define the revenue — or what we say, the profitability — also depends upon that. That’s why we want to increase the IPP, because it adds more to the profitability.”