Target: ₹562
Current Market Price (CMP): ₹435.20
KPI Green Energy has reported strong financial results for Q4-FY26 and the entire fiscal year, surpassing projections despite experiencing setbacks in power evacuation related to its recently commissioned 376 MW GUVNL Independent Power Producer (IPP) project in Khavda, Gujarat. For FY26, the company reported a year-on-year growth of 55.3% in revenue, 70% in EBITDA, and 49% in profit after tax (PAT), reaching ₹2,696 crore, ₹958 crore, and ₹476 crore, respectively.
The significant growth was largely attributed to the Company’s captive power production (CPP) segment, which experienced a robust 61.2% year-on-year increase, driven by strong operational execution. In Q4-FY26, KPI Green Energy energized an additional 447 MW, bringing its total operational capacity to 975 MW. The total units generated rose 64.5% on a year-over-year basis, amounting to 41 crore units, although this fell short of internal targets because of delays in project commercialization.
Following a compelling FY26 performance, the company has adjusted its forecasts for FY27 and FY28 upwards by 10% to 24% across revenue, EBITDA, and PAT, supported by increasing contributions from its high-margin IPP business, which boasts EBITDA margins around 85-90%. The Battery Energy Storage System (BESS) capacity is expected to become fully operational by FY27, likely starting revenue contributions from FY28 onward. However, recent warrant issuances to promoters may result in a roughly 5% equity dilution, which could slightly affect earnings per share (EPS) growth.
Considering the strong operational momentum, a robust order backlog, and increasing contributions from the high-margin IPP business, the analysts have maintained a “Buy” rating for KPI Green Energy, setting a target price of ₹562, which reflects a valuation of 18 times the FY27 estimated EPS of ₹31.2.
Published on May 13, 2026
