KPI Green Energy Lines up Sundrop Energia IPO, Sharpens Focus on Storage and EPC Pipeline

KPI Green Energy delivered its ‘seventh consecutive quarter of highest ever revenue’ in Q3 FY26, led by execution across its solar and hybrid portfolio. The company reported total revenue of INR 676 crore, up 45 percent year-on-year, EBITDA of INR 251 crore (up 73 percent), and profit after tax of INR 126 crore (up 48 percent). For the first nine months, it reported revenue of INR 1,931 crore (up 64 percent) and profit after tax of INR 354 crore (up 60 percent).

Here’s a peek into the company’s plans, strategies, and operations expected ahead.

Sundrop Energia IPO for BESS strategy

KPI Green Energy has plans to list its subsidiary Sundrop Energia in the first half of the next financial year, with the IPO primarily aimed at funding a dedicated battery energy storage system (BESS) business.

Sundrop is expected to act as the group’s platform for energy storage, focusing on projects of 35 MW and below, catering to MSMEs and smaller customers, while also hoping for a promising market ahead. 

The company clarified that the IPO is being pursued to raise capital for scaling the storage vertical, describing BESS as a “separate business altogether” requiring significant funding.

KPI Green Energy said it will retain majority ownership in Sundrop post-listing, targeting a minimum 51 percent stake, with the subsidiary’s financials continuing to be consolidated.

At present, Sundrop’s profitability broadly mirrors the group’s profile. Management indicated Sundrop’s combined EBITDA margin is around 25–30 percent, with profit after tax margins of 17–18 percent, noting that margins could evolve as the storage business scales.

Sundrop Financials and Near-term Outlook

Sundrop generated approximately INR 150 crore of revenue in Q3 FY26 and around INR 300 crore in the nine months of the financial year. For FY26, it indicated a growth trajectory of about 60 percent, implying an annual revenue of roughly INR 500 crore.

EPC Wins and Project Pipeline 

During the quarter, KPI Green Energy secured a 102 MW floating solar EPC contract from Gujarat State Electricity Corporation Limited (GSECL). It also received a letter of intent for a 445 MW public solar project supported by viability gap funding.

Management said the 445 MW project is expected to deliver an internal rate of return of 13–14 percent, with estimated total investment in the range of INR 2,000–3,000 crore. It added that discussions on financial closure are underway, with interest from existing lenders.

In addition, the company received balance-of-plant supply and on-site services orders from Adani Green Energy for 305 MW of capacity.

CPP Order Book Expands to 2.57 GW; EPC Crosses INR 5,500 Cr

KPI Green Energy said its captive power producer (CPP) order book increased to 2.572 GW in Q3 FY26, up from 2.426 GW in the previous quarter. Management also pointed to a sharp rise from around 1.96 GW at the end of FY25, reflecting sustained inflows.

In value terms, the company said its EPC order book stands at over INR 5,500 crore, compared with about INR 4,000 crore earlier, noting that the net movement reflects both fresh orders and execution during the quarter.

Margin Protection and Execution 

Addressing concerns around input cost volatility, management said EPC and IPP contracts include price-variation clauses that allow pass-through of significant increases in module or equipment costs. For private CPP customers, the company said it locks in inventory soon after contract signing to protect margins.

On the IPP side, management said PPAs include provisions to revise tariffs if input costs rise materially before procurement, ensuring project returns remain intact.

IPP Ramp-up and Commissioning Update

KPI Green Energy said revenue contribution from its IPP portfolio is expected to improve from Q4 FY26, following the completion of a government substation that had delayed offtake at the Kaura project. It cautioned that initial quarters typically involve a stabilisation period before generation normalises.

The company also said it has commissioned 24.2 MW AC (35 MW DC) of a 250 MW solar project and expects part-commissioning revenues to begin from next month, with the bulk of capacity targeted for completion by the end of June.