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KP Energy Limited: Company Report

Stock Snapshot

  • Sector: Clean Energy

  • Market Cap: ₹3153 Cr

  • TTM PE: 27.4x

  • Sectoral PE Range: 50–90

  • PE Remark: Below sector range

  • BSE Code: 539686


Company Profile

KP Energy Limited specializes in providing end-to-end balance of plant (BoP) solutions for wind energy projects, covering design, engineering, procurement, construction, and commissioning. The company serves prominent clients such as Bhathwari Technologies, Aditya Birla Renewables, ABREL (RJ) Projects, and NTPC Renewable Energy. Beyond BoP services, KP Energy is expanding its footprint as an Independent Power Producer (IPP) and operations & maintenance (O&M) provider, with a vision to achieve a 10+ GW portfolio by 2030 under the KP Group umbrella.


Key Growth Triggers

Robust Renewable Portfolio

  • Total Portfolio: Over 3.3 GW, with 2.3 GW of projects in hand and 1 GW of installed capacity, including Central Transmission Utility (CTU) and State Transmission Utility (STU) projects.

  • IPP and O&M Assets: Owns 48.5 MW of operational IPP assets and manages an O&M portfolio of 546+ MW.

  • Recent Commissioning:

    • Apr 2025: Commissioned 23.1 MW wind power as part of a wind-solar hybrid project in Bhavnagar, Gujarat, for Aditya Birla Renewables, featuring 11 Suzlon S120 WTGs (2.1 MW each).

    • Feb 2025: Commissioned 2.8 MW wind power at Vagra, Bharuch, increasing IPP capacity to 48.5 MW.

    • Jan 2025: Commissioned 6.3 MW ISTS-connected wind power at Sidhpur, part of a 250.8 MW project for Apraava Energy.

Strategic Expansion

  • Ambitious Target: KP Group aims for 10+ GW by 2030, with a focus on expanding IPP assets.

  • Offshore Wind Opportunities: Exploring 1–2 GW offshore wind projects in Gujarat and Tamil Nadu, leveraging advanced 4x MW turbines for higher Plant Load Factor (PLF).

  • New Orders:

    • May 2025: Ordered 20 Senvion 4.2M160 WTGs for a hybrid power project in Bharuch, Gujarat, with deliveries slated for Q4 FY26.

    • Nov 2024: Secured 1003.7 MW EPCC orders from KPI Green Energy for renewable energy projects.

    • Sep 2024: Approved a 30 MW wind IPP project with Gujarat Urja Vikas Nigam Limited (GUVNL), set for completion in Q4 FY25.

Technological Advancements

  • Windcube LIDAR: Integrated advanced LIDAR technology for enhanced wind resource assessment, improving project efficiency and output predictability.

  • High-Capacity WTGs: Collaborating with major OEMs for 4.2 MW Wind Turbine Generators, enhancing energy generation capabilities.

Financial Reinforcement

  • Jul 2024: Board approved issuance of 6.9L warrants at ₹412/share, raising ₹28.4 Cr for promoter Dr. Faruk G. Patel.

  • Fixed Asset Growth: Fixed assets grew 2.4x from ₹174 Cr (Mar 2024) to ₹420 Cr (Mar 2025), signaling significant infrastructure investment.


Financial Performance

Quarterly Highlights

  • Q4 FY25 (Mar 2025):

    • Sales: ₹401 Cr, up 94% YoY (from ₹207 Cr in Mar 2024).

    • Net Profit: ₹46 Cr, up 84% YoY (from ₹25 Cr).

    • QoQ Growth: Sales up 90%, Net Profit up 74%.

  • Q3 FY25 (Dec 2024):

    • Sales: ₹212 Cr, up 2.6x YoY (from ₹82 Cr).

    • Net Profit: ₹26 Cr, up 2.9x YoY (from ₹9 Cr).

    • QoQ Growth: Sales up 7%, Net Profit up 4%.

  • Q2 FY25 (Sep 2024):

    • Sales: ₹199 Cr, up 2.8x YoY (from ₹70 Cr).

    • Net Profit: ₹25 Cr, up 3.1x YoY (from ₹8 Cr).

  • Q1 FY25 (Jun 2024):

    • Sales: ₹127 Cr, up 12% YoY (from ₹113 Cr).

    • Net Profit: ₹18 Cr, up 20% YoY (from ₹15 Cr).


Annual Performance (FY18–FY25)

Year

Sales (₹ Cr)

Op Profit (₹ Cr)

Net Profit (₹ Cr)

OPM (%)

NPM (%)

Mar-18

60

10

2

17%

3%

Mar-19

158

33

19

21%

12%

Mar-20

75

11

1

15%

1%

Mar-21

72

18

6

25%

8%

Mar-22

250

34

18

14%

7%

Mar-23

438

71

44

16%

10%

Mar-24

473

86

58

18%

12%

Mar-25

939

176

115

19%

12%

  • Revenue Growth: Sales grew 2.1x from ₹438 Cr (FY23) to ₹939 Cr (FY25).

  • Profitability: Net profit increased 2.6x from ₹44 Cr (FY23) to ₹115 Cr (FY25).

  • Margins: Operating Profit Margin (OPM) and Net Profit Margin (NPM) remained stable at 18–20% and 12–15%, respectively, reflecting operational efficiency.


Key Red Flags

  • Rising Borrowings: Total borrowings surged from ₹23 Cr (Mar 2022) to ₹246 Cr (Sep 2024), indicating increased financial leverage.

  • Trade Receivables: Increased significantly from ₹20 Cr (Mar 2022) to ₹325 Cr (Sep 2024), potentially signaling delayed payments from clients.

  • Debtor Days: Rose from 49 days (Mar 2023) to 200 days (Mar 2024), highlighting potential cash flow concerns.


Shareholding and Promoter Activity

  • Promoter Holding: Stable at 44.8–45.0% over the past year.

  • Recent Transactions:

    • Mar 2025: Promoter bought 2.8k shares at ₹393/share (₹11L).

    • Feb 2025: Promoter purchased 2k shares at ₹408/share (₹8L).

    • Oct 2024: Mavira Growth Opportunities Fund acquired 4L shares at ₹465/share (₹18.6 Cr).

    • Jul 2024: Issued 6.9L warrants to promoter Dr. Faruk G. Patel at ₹412/share (₹28.4 Cr).

    • Mar–May 2024: Directors and relatives sold shares worth ₹87L–₹1.07 Cr, raising concerns about insider confidence.


Share Price Movement (Jun 2024–Apr 2025)

Month

Price (₹)

Jun-24

411

Jul-24

415

Aug-24

394

Sep-24

456

Oct-24

594

Nov-24

620

Dec-24

539

Jan-25

396

Feb-25

374

Mar-25

371

Apr-25

371

  • Peak: ₹620 (Nov 2024), reflecting strong market confidence post-Q2 FY25 results.

  • Volatility: Sharp decline to ₹371 (Mar–Apr 2025), possibly due to profit booking or market corrections.


Strategic Partnerships and Market Positioning

  • Feb 2025: Signed an MoU with the Government of Madhya Pradesh for 1.8 GW of solar, wind, hybrid, BESS, and biomass projects.

  • Aug 2023: Partnered with Mahatma Phule Renewable Energy for renewable energy projects in Maharashtra.

  • Apr 2023: Collaborated with Tristar Transport LLC (UAE) for eco-friendly energy solutions across multiple regions.


Outlook

KP Energy is well-positioned to capitalize on India’s renewable energy boom, driven by its strong order book (2 GW), technological advancements, and strategic partnerships. The company’s focus on expanding its IPP portfolio and exploring offshore wind opportunities aligns with India’s clean energy ambitions. However, investors should monitor rising borrowings and trade receivables, which could impact short-term liquidity. With a TTM PE of 27.4x (well below the sectoral range of 50–90), KP Energy appears undervalued, making it an attractive investment for those betting on India’s renewable energy growth.

 
 
 
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