KPI Green Energy Q1 FY27 Results (NSE: KPIGREEN)
Signal: Margin expansion
The read
The quarter shows an operating-margin recovery to 34.12%, up 786bps YoY, but the trajectory is not yet clean: Power & Solar Power Plant segment profit fell 27.4% YoY and interest expense rose 139.2%, causing consolidated PAT to decline 15.0% despite 15.1% revenue growth; the next thesis test is whether project commissioning and asset additions convert into cash earnings without another step-up in leverage.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹693.84 Cr | +15.1% | -12.8% |
| Net profit | ₹94.63 Cr | -15.0% | |
| EPS | ₹4.34 | -17.8% | |
| EBIT margin | 34.12% |
P&L walk
Consolidated revenue increased to ₹69,384.02 lakh, +15.1% YoY but -12.8% QoQ, while operating margin improved to 34.12% from 26.26% YoY; however, segment result fell 27.4% YoY and higher interest expense of ₹6,774.13 lakh, +139.2% YoY, drove PAT down 15.0% to ₹9,463.28 lakh.
Segments
Power & Solar Power Plant remained the group engine at ₹69,297.63 lakh of revenue, +15.0% YoY, but its segment result fell 27.4% YoY to ₹13,373.45 lakh; plot sales remained immaterial at ₹86.39 lakh, while subsidiaries/SPVs materially lifted consolidated revenue and profit.
Key positives
- Consolidated revenue reached ₹69,384.02 lakh, +15.1% YoY, led by Power & Solar Power Plant revenue of ₹69,297.63 lakh, +15.0% YoY.
- Reported operating margin expanded to 34.12% from 26.26% YoY, a 786bps recovery.
- Power & Solar Power Plant segment assets rose 125.5% YoY to ₹10,46,137.73 lakh, consistent with continued capacity and project-base expansion.
- The consolidated group includes subsidiaries and SPVs contributing reviewed revenue of ₹19,465.52 lakh and profit after tax of ₹2,805.39 lakh.
Key concerns
- Consolidated PAT fell 15.0% YoY to ₹9,463.28 lakh even as revenue grew 15.1%, showing weak conversion of revenue growth into bottom-line growth.
- Interest expense rose 139.2% YoY to ₹6,774.13 lakh, while the consolidated interest service coverage ratio declined to 3.22x from 5.68x YoY.
- Power & Solar Power Plant segment result declined 27.4% YoY to ₹13,373.45 lakh despite 15.0% revenue growth, indicating pressure below the segment revenue line.
- Receivable days increased to 127.20 from 96.60 YoY, which could increase working-capital funding needs as the asset base expands.
Research and educational content only. Not investment advice.