KPI Green Energy Limited has once again attracted market attention after announcing its Q3 and nine months financial results for FY26, along with the declaration of its third interim dividend. The Board of Directors approved the results in its meeting held on January 21, 2026, and the outcome reflects the company’s consistent execution in India’s fast-growing renewable energy sector.

The company, which operates primarily in solar power generation, captive power projects, and solar park development, has continued to benefit from rising demand for clean energy, strong order execution, and improving operational efficiencies. The latest financial performance shows that KPI Green Energy is not only growing its top line but also maintaining healthy profitability and margins, a key factor for long-term investors.

Strong Q3 FY26 Financial Performance

For the quarter ended December 31, 2025, KPI Green Energy reported robust consolidated revenue from operations, driven mainly by higher power generation and execution of solar power plant projects. The company’s consolidated revenue stood at ₹66,286 lakh, reflecting strong growth compared to the corresponding period last year.

The profit before tax for the quarter also showed a significant improvement, supported by operational leverage and controlled costs. After accounting for taxes, the net profit attributable to equity shareholders remained strong, highlighting management’s focus on efficiency and scale.

On a nine-month basis, the company delivered impressive numbers. Consolidated revenue from operations reached approximately ₹1,90,010 lakh, while net profit after tax crossed ₹35,000 lakh. This kind of growth over nine months indicates strong execution capabilities and sustained demand for renewable power solutions.

Segment-wise Performance Highlights

KPI Green Energy operates mainly through two business segments:

1. Revenue from Sale of Power and Solar Power Plants

2. Revenue from Sale of Plots

The solar power and power plant segment continues to be the primary growth driver. During Q3 FY26, this segment contributed the bulk of revenues and profits, supported by higher capacity utilisation and new project additions. The sale of plots segment, though relatively smaller, also contributed positively during the quarter.

The segment profit before tax and interest from the power segment remained strong, reflecting better operational margins. This shows that the company is scaling up without significantly compromising profitability, which is a positive sign in a capital-intensive industry like renewable energy.

Margins and Cost Control

One of the most encouraging aspects of KPI Green Energy’s results is the stability in margins. The company reported a healthy EBITDA margin of around 36% on a consolidated basis, which is impressive for a renewable energy player.

The net profit margin also remained strong at around 18–19%, indicating effective cost control, optimal financing structure, and efficient project execution. Employee costs, finance costs, and depreciation have increased in absolute terms due to capacity expansion, but as a percentage of revenue, they remain well managed.

This margin profile gives KPI Green Energy a competitive advantage, especially when many players in the renewable space struggle with thin margins and high leverage.

Balance Sheet Strength and Debt Position

As of December 31, 2025, KPI Green Energy’s balance sheet reflects improving financial strength. The net worth of the company stood at over ₹2,76,000 lakh on a consolidated basis, supported by retained earnings and steady profit growth.

The debt-to-equity ratio remains under control, indicating that the company is balancing growth with financial prudence. The interest coverage ratio and debt service coverage ratio also remain comfortable, suggesting that the company can easily meet its interest and principal repayment obligations.

Importantly, the company has confirmed compliance with all covenants related to its rated, listed, secured NCDs of ₹670 crore, including maintaining a minimum security cover of 1.20x. This adds confidence for lenders as well as investors tracking balance sheet risk.

Cash Flow and Liquidity Position

KPI Green Energy continues to generate stable operating cash flows from its power generation assets. Long-term power purchase agreements and captive power arrangements ensure predictable revenue streams, which help in servicing debt and funding expansion.

The current ratio remains comfortable, indicating adequate liquidity to meet short-term obligations. This is particularly important in a project-heavy business where working capital management plays a crucial role.

Dividend Announcement Boosts Investor Sentiment

Along with the financial results, the Board of Directors declared a third interim dividend of 4%, amounting to ₹0.20 per equity share of face value ₹5 each for FY26. The record date is January 28, 2026, and the dividend will be paid within 30 days from the date of declaration.

This dividend announcement highlights management’s confidence in cash flows and long-term business visibility. For investors, regular dividends from a growth-oriented renewable energy company are an added positive, balancing growth with shareholder returns.

Standalone Performance Remains Solid

On a standalone basis, KPI Green Energy also reported strong numbers for Q3 and nine months ended December 31, 2025. Standalone revenue from operations for the quarter stood at over ₹51,000 lakh, while nine-month revenue crossed ₹1,39,700 lakh.

Standalone net profit after tax for the nine-month period remained healthy, supported by the core power generation business. This indicates that even without subsidiaries and SPVs, the parent company remains fundamentally strong.

Auditor’s Review and Compliance

The statutory auditors, K A Sanghavi & Co LLP, have issued a limited review report on both standalone and consolidated financial results. The auditors have stated that nothing has come to their attention that causes them to believe that the financial results are materially misstated.

There were no emphasis of matter observations, which further strengthens the credibility of the reported numbers. The company has also complied with SEBI (LODR) Regulations, including Regulations 30, 33, and 52.

Business Model Strength and Growth Drivers

KPI Green Energy’s business model focuses on independent power producer (IPP) projects, captive solar power plants, and solar park development. The company benefits from:

• Rising demand for renewable and green energy in India

• Supportive government policies and renewable targets

• Long-term power purchase agreements ensuring revenue visibility

• Strong execution capabilities and in-house project development expertise

The company’s presence across multiple SPVs also helps in risk diversification and efficient capital deployment.

Risks and Challenges to Watch

While the financial performance is strong, investors should remain aware of certain risks:

• Regulatory changes in renewable energy policies

• Interest rate fluctuations, which can impact finance costs

• Execution delays due to land acquisition or grid connectivity issues

• Dependence on government incentives and state utilities

However, KPI Green Energy’s consistent track record and improving balance sheet provide some comfort against these risks.

Outlook for Investors

Looking ahead, KPI Green Energy appears well positioned to benefit from India’s long-term renewable energy growth story. The company’s strong order pipeline, stable cash flows, improving margins, and disciplined capital structure support a positive medium- to long-term outlook.

The declaration of an interim dividend further strengthens investor confidence, while consistent quarterly performance suggests that management execution remains on track.

For investors tracking the renewable energy sector, KPI Green Energy’s Q3 FY26 results reinforce its position as a fundamentally strong and execution-focused player, making it a stock worth closely monitoring in the coming quarters

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