KPI Green Energy (542323) Q2 24/25 earnings summary

Executive summary

• Achieved record revenue and profitability in H1 FY2025, with revenue up 75% year-over-year and PAT nearly doubling, driven by strong execution and operational excellence.

• Installed capacity surpassed 507 MW, with targets to reach 10 GW by 2030 and a robust order book supporting future growth.

• Zero net-debt position as of September 30, 2024, with positive rating outlook upgrade by ICRA.

• Strategic initiatives include expansion in IPP and CPP segments, adoption of advanced technologies, and geographic diversification.

• Attracted marquee investors and appointed a new group CEO to strengthen management for future growth.

Financial highlights

• H1 FY2025 revenue reached ₹711.3 crore, up 75% year-over-year; EBITDA grew 87% to ₹266.9 crore; PAT doubled to ₹135.9 crore.

• Basic EPS for H1 FY2025 was ₹11.03, up 76% from last year.

• PAT margin improved by 238 bps year-over-year to 19.1%.

• Interest coverage ratio rose to 4.70x from 3.23x year-over-year.

• Interim dividend of 4% (₹0.20 per share) declared for FY25.

Outlook and guidance

• Revenue growth for FY2025 expected in the range of 60%-70% over last year, with PAT margin guidance at 16%-18% and potential to rise to 20%-22% as IPP mix increases.

• Targeting 10 GW installed capacity by 2030, with a robust order book of 2.41+ GW as of September 2024 and ongoing expansion into new Indian states and international markets.

• Focus on expanding hybrid (solar + wind) portfolio and geographical diversification.

• Signed PPAs with GUVNL for 620 MWAC (917 MWp DC), with projects expected operational by June 2026, set to boost IPP revenue and margins.

• Upgraded long-term credit rating to [ICRA] A with a Positive outlook.