Sembcorp Green Infra — DRHP Analysis
Filed with SEBI on
Sembcorp Green Infra Limited is a renewable independent power producer (IPP) in India with 3.60 GW of operational capacity and an additional 4.04 GW/GWh under-construction pipeline. The company is raising up to Rs 3,750.00 crore via a 100% fresh issue to prepay debt and fund general corporate purposes.
Central question
Can Sembcorp Green Infra successfully scale its 4.04 GW/GWh under-construction pipeline and maintain high bid win rates while navigating public utility customer concentration and supplier disputes?
The issuer demonstrates predictable cash flow generation driven by long-tenor PPAs (~23-year weighted average) and high operating cash conversion. However, high reliance on public procurement entities like SECI and ongoing arbitration with equipment suppliers require continuous post-listing oversight.
Offer structure
| Total issue size | ₹3,750 Cr |
| Fresh issue | ₹3,750 Cr |
| Offer for sale | ₹0 Cr |
| Price band | Not yet announced |
Debt repayment and general corporate purposes
Proceeds are proposed to be utilized towards repayment/prepayment of certain borrowings and for general corporate purposes.
What it sells
Who pays: Central and state government entities (including Solar Energy Corporation of India Ltd) and commercial and industrial (C&I) private offtakers.. What it sells: Renewable power generated from utility-scale and complex wind, solar, and hybrid/FDRE configurations with battery storage.. How it delivers: Generates power across 3.60 GW operational capacity with high in-house O&M management and secured transmission grid connectivity.. How it earns: Long-term sale of electricity under fixed-tariff Power Purchase Agreements (PPAs) with weighted average tenors exceeding 23 years..
Restated financials
| Period | Revenue | EBITDA | PAT | EPS | ROE |
|---|---|---|---|---|---|
| Fiscal 2024 | ₹2,249.18 Cr | ₹359.36 Cr | |||
| Fiscal 2025 | ₹2,318.29 Cr | ₹298.83 Cr | |||
| Fiscal 2026 | ₹2,652.5 Cr | ₹371.08 Cr | 0.94 |
Business model
Sembcorp Green Infra Limited is a renewable independent power producer (IPP) in India developing, operating, and maintaining utility-scale and complex renewable energy projects across wind, solar, and hybrid/FDRE configurations with battery storage.
- The company operates as a renewable independent power producer in India with 3.60 GW of Operational Capacity across wind, solar, and complex hybrid projects. (3.60 GW, As at March 31, 2026) — Positions the issuer among the top 10 largest renewable IPPs in India by operational capacity. [1]
- Revenue from operations is primarily earned from the long-term sale of electricity generated at operational projects under PPAs. (92.06%, Fiscal 2026) — Demonstrates long-term revenue visibility, with revenue from power generation contributing 92.06% of total income in Fiscal 2026. [1]
- Operational projects and contracted under-construction projects have long-term weighted average PPA terms of over 23 years. (23.02 years PPA term for Operational Projects, As at March 31, 2026) — Secures stable, long-tenor cash flows with government and private counterparties. [1]
Open questions: What is the detailed breakdown of commercial and industrial (C&I) private offtakers versus government entities across the pipeline?
Growth thesis
Growth is driven by doubling operational capacity via a 4.04 GW/GWh under-construction pipeline, winning high-margin complex hybrid/FDRE project tenders, and leveraging flexible EPC models and in-house O&M.
- The company has an Under Construction Capacity of 4.04 GW/GWh, including 2.61 GW of renewable energy capacity and 1.43 GWh of BESS capacity. (4.04 GW/GWh under construction, As at March 31, 2026) — Provides clear visibility to more than double the current operational asset base of 3.60 GW (ratio of 1.12x). [1]
Open questions: What is the targeted commercial operation date (COD) schedule across each of the 21 under-construction project phases?
Offer & ownership
The initial public offering comprises a fresh issue of equity shares aggregating up to Rs 37,500.00 million, with 100% pre-issue equity shareholding held by Promoter Sembcorp Utilities Pte Ltd.
- The IPO consists of a Fresh Issue of Equity Shares aggregating up to Rs 37,500.00 million. (Rs 37,500.00 million, DRHP stage) — The capital raised will be utilized for debt repayment and general corporate purposes without any offer-for-sale component in the DRHP. [1]
- Sembcorp Utilities Pte Ltd holds 100% of the pre-issue equity share capital of the company. (3,980,409,875 Equity Shares (100.00%), As on date of DRHP) — Affirms complete ownership and control under the Sembcorp group prior to the fresh issuance. [1]
Open questions: Will the company execute the permitted Pre-IPO placement of up to Rs 7,500.00 million prior to RHP filing?
Financials
The company has demonstrated consistent revenue and EBITDA growth across Fiscals 2024 to 2026, delivering high EBITDA margins (>74%) and strong operating cash flows, alongside moderate financial leverage.
- Revenue from operations reached Rs 26,524.95 million in Fiscal 2026, growing from Rs 22,491.77 million in Fiscal 2024. (Rs 26,524.95 million, Fiscal 2026) — Reflects capacity additions and expanding renewable power generation. [1]
- Restated profit for the year was Rs 3,710.83 million in Fiscal 2026, compared to Rs 2,988.29 million in Fiscal 2025 and Rs 3,593.58 million in Fiscal 2024. (Rs 3,710.83 million, Fiscal 2026) — Confirms steady bottom-line profitability across three years of audited restated accounts. [1]
- Net cash generated from operating activities was Rs 19,866.27 million in Fiscal 2026, up from Rs 18,914.12 million in Fiscal 2025. (Rs 19,866.27 million, Fiscal 2026) — Demonstrates robust operating cash conversion supporting heavy capital expenditure. [1]
- Total borrowings stood at Rs 126,233.77 million as of March 31, 2026 with a Net Debt to Equity ratio of 1.52x. (Rs 126,233.77 million borrowings; 1.52x Net Debt/Equity, As at March 31, 2026) — Quantifies the company's capital intensity and existing leverage profile. [1] [2]
- As of March 31, 2026, the company reported total assets of ₹225,396.51 million. (₹225,396.51 million, As at March 31, 2026) — Reflects the total consolidated asset base of the company as at March 31, 2026. [1]
- As of March 31, 2025, the company reported total assets of ₹195,282.12 million. (₹195,282.12 million, As at March 31, 2025) — Reflects the total consolidated asset base of the company as at March 31, 2025. [1]
- As of March 31, 2024, the company reported total assets of ₹169,882.56 million. (₹169,882.56 million, As at March 31, 2024) — Reflects the total consolidated asset base of the company as at March 31, 2024. [1]
- As of March 31, 2026, the company reported total equity of ₹76,200.51 million. (₹76,200.51 million, As at March 31, 2026) — Reflects the total consolidated equity of the company as at March 31, 2026. [1]
- As of March 31, 2025, the company reported total equity of ₹63,027.26 million. (₹63,027.26 million, As at March 31, 2025) — Reflects the total consolidated equity of the company as at March 31, 2025. [1]
- As of March 31, 2024, the company reported total equity of ₹58,239.35 million. (₹58,239.35 million, As at March 31, 2024) — Reflects the total consolidated equity of the company as at March 31, 2024. [1]
Open questions: What is the projected interest cost savings post the planned Rs 30,000.00 million debt prepayment?
Moat & defensibility
The company's competitive defensibility stems from its large-scale portfolio, strong in-house wind and solar O&M capabilities, strategic grid connectivity already secured in key states, and backing from Singapore-listed Sembcorp Industries Ltd.
- The company maintains significant in-house O&M operations across its wind and solar generation base. (57.93% wind and 99.43% solar operated in-house, As at March 31, 2026) — In-house O&M provides operational control, lowering operating costs and enabling better plant availability and PLF optimization. [1]
- The company has secured grid connectivity for its entire under-construction pipeline, avoiding severe transmission interconnection bottlenecks in key renewable states. (4.04 GW/GWh connectivity in place, As at March 31, 2026) — Securing early grid connectivity represents a key competitive barrier given lengthy grid allocation timelines. [1]
- High bid success ratio in complex renewable tenders demonstrates competitive technical and pricing capabilities. (77.15% Complex Projects Bid Success Ratio in Fiscal 2026, Fiscal 2026) — Demonstrates differentiated ability to win complex, higher-tariff hybrid and FDRE project auctions. [1]
Open questions: How will long-term tariff competitiveness in complex FDRE bids evolve as battery energy storage system costs fluctuate?
Governance
The Board consists of six directors, including three independent directors and one woman director, chaired by Vipul Tuli, conforming to SEBI LODR corporate governance standards.
- The Board of Directors comprises six directors: one Managing Director, two Non-Executive Directors, and three Independent Directors. (6 Directors (50% Independent), As on DRHP date) — Meets regulatory mandates for board independence and committee formation under SEBI LODR. [1]
- Audit Committee is chaired by Independent Director Radhey Shyam Sharma. (Radhey Shyam Sharma (Chairperson), With effect from August 6, 2026) — Ensures independent governance and oversight over financial reporting, internal controls, and related party transactions. [1]
Open questions: Are there any ongoing related party commitments with fellow subsidiaries outside of the standard technical services agreement with Sembcorp India Private Limited?
Risks
Key operational risks include high customer concentration among top offtakers, dependency on government procurement entities, risks of project execution delays and liquidated damages, and significant litigation with equipment suppliers like Siemens Gamesa.
- Top 10 offtakers contributed 75.10% of gross revenue from power generation (billed) in Fiscal 2026, with Solar Energy Corporation of India Ltd accounting for 24.43%. (75.10% (Top 10), 24.43% (SECI), Fiscal 2026) — High customer concentration exposes the company to counterparty payment delays or contractual disputes. [1] [2]
- 85.40% of Operational Capacity and 90.24% of Total Contracted Capacity is contracted under PPAs with central or state government entities with limited negotiation flexibility. (85.40% Operational Capacity, As at March 31, 2026) — Fixed-tariff contracts with public utilities limit the company's ability to pass on cost escalations. [1]
Open questions: What is the estimated timeline for resolution of the SIAC and Indian arbitration proceedings with Siemens Gamesa?
Valuation framework
Valuation parameters are awaiting price inputs as the Price Band, Floor Price, Cap Price, and post-issue share count are unannounced in the DRHP.
- The issue price band and number of equity shares to be issued in the fresh offer remain unannounced at the DRHP stage. (Price Band: [●], DRHP stage) — Downstream valuation multiples (P/E, EV/EBITDA, P/B) cannot be calculated until the Price Band is filed in the Red Herring Prospectus. [1]
- Basic and diluted EPS for Fiscal 2026 stood at Rs 0.94 per share on restated consolidated basis. (Rs 0.94, Fiscal 2026) — Forms the historical trailing earnings baseline for downstream P/E multiple calculation upon Cap Price announcement. [1]
- Net Asset Value per equity share was Rs 23.47 as of March 31, 2026. (Rs 23.47, As on March 31, 2026) — Represents the pre-issue book value per share input for subsequent price-to-book valuation. [1]
Open questions: What will be the final Price Band and post-issue market capitalization determined during the Book Building Process?
What the filing leaves open
- Analysis is based strictly on the provided DRHP excerpts and excludes external industry knowledge or later-stage RHP pricing documents.
- Forward valuation multiples remain awaiting price band announcement in subsequent filings.