K.P. Energy Ltd Management Discussions

Economic Overview

Indian economy

Indias economy in 2026 continues to stand out for its resilience and dynamism amid a global environment shaped by conflict and elevated energy prices. As per the latest global outlook assessments published in mid-2026, Indias real GDP grew by an estimated 7.7% in FY26, among the strongest expansions recorded by any large economy during the year, and growth is projected in the range of 6.4-6.6% for FY27, rising to 67-7.2% for FY28, retaining Indias status as the fastest- growing major economy in the world, following growth of 7.1% in FY25.

Forecast revisions through the year have favoured India. The June 2026 round of global projections raised Indias forecasts for FY27 and FY28 by 0.1 and 0.6 percentage points respectively over the January 2026 round, even as projections for most large economies were lowered, a clear signal of relative resilience. This came against a backdrop in which global growth is expected to slow to about 2.5-3.0% in 2026, the weakest pace since the pandemic, on account of the conflict in the Middle East and elevated energy prices.

Indias growth is underpinned by strong momentum in private consumption and services activity. Indias growth rate stands well above the 3.8% average projected for emerging market and developing economies in 2026 and Chinas projected 4.6%. Emerging and developing Asia, led by India, is expected to remain the fastest-growing region in the world over the forecast horizon, and South Asia, anchored by India, is projected to grow 6.3% in 2026 and 6.9% in 2027, the fastest among developing regions.

As a large importer of crude oil and natural gas,

India remains exposed to the elevated energy prices resulting from the war in the Middle East; and terms- of-trade deterioration across oil-importing Asian economies has worsened inflation outlooks and placed pressure on exchange rates. Equally, the rising share of renewable energy in generation and declining energy intensity have made economies more resilient to energy price shocks than in earlier episodes, reinforcing the strategic value of accelerating domestic clean energy capacity.

Global conditions are expected to improve gradually, with activity firming through 2027-28 as energy supplies recover, monetary easing resumes, and trade strengthens, conditions under which Indias growth is projected to accelerate further. Global headline inflation is expected to rise in 2026 on higher energy and food prices before easing through 2027, while world trade growth slows before recovering.

In summary, India enters FY27 with strong momentum, upgraded forecasts, and a decisive role as an anchor of global growth. The national aspiration of a developed, USD 30 trillion economy by 2047 implies sustained expansion in manufacturing, infrastructure, and per capita energy consumption. Rising electricity demand and the imperative of energy security place renewable energy, and wind energy in particular, at the centre of Indias growth and investment cycle over the coming decade, translating into a durable, policy- backed demand runway for the renewable energy value chain.

Source: IMF, World Economic Outlook Update (July 2026), World Bank, Global Economic Prospects (June 2026)

Industry Overview

Indias Renewable Energy Landscape

FY26 was a landmark year for Indias energy transition. Indias total installed power capacity stood at 532.7 GW as on March 31, 2026, of which non-fossil fuel sources contributed 283.46 GW, comprising 274.68 GW of renewable energy, including large hydro, and 8.78 GW of nuclear power, taking the non-fossil share to more than 53% of the total. India had already achieved the milestone of 50% of installed capacity from non-fossil sources in June 2025, five years ahead of its 2030 commitment under the Nationally Determined Contribution, and renewable energy capacity has grown 3.59 times since March 2014.

Capacity addition in FY26 was unprecedented. India added 55.3 GW of non-fossil capacity during the year, the highest increase recorded in any year and nearly double the previous high of 29.5 GW achieved in FY25. Solar led with an addition of 44.61 GW, almost double the previous year and against a target of 34 GW, taking cumulative solar capacity to 150.26 GW, while wind recorded its highest-ever annual addition of 6.05 GW, 46% higher than the previous record of 4.15 GW set in FY25. The installed mix as on March 31,2026 comprised fossil fuel at 249.27 GW (46.8%), solar at 150.26 GW (28.2%), wind at 56.09 GW (10.5%), hydro at 56.58 GW (10.7%), and nuclear and bio energy at 20.53 GW (3.8%).

Generation trends mirror this build-out. Total power generation in FY26 was 1,845.921 billion units (bu), with non-fossil sources contributing 29.2%. Generation from renewable sources excluding large hydro rose 21.1% to 308.813 BU; wind generation grew fastest among major sources, up 27.3% at 106.089 BU, while solar generation grew 20.4% to 173.525 BU. In July 2025, renewables met 51.5% of instantaneous system demand at a load of 203 GW, the highest-ever share recorded at any point in time. Measured over the full year, renewables excluding large hydro accounted for about 16.7% of generation, and non-fossil sources for 29.2%.

Electricity demand continues to set records. Peak demand touched about 271 GW in May 2026, and as per the CEAs Generation Adequacy Plan (March 2026), all-India peak demand is projected to rise to 345 GW by FY30 and 459 GW by FY36, with electrical energy requirement growing at 6.41% annually to 3,365 BU. Total installed capacity is projected to nearly double, from 532.7 GW as on March 31,2026 to 1,121 GW by FY36, with non-fossil sources constituting about 70% of that mix. Within this, the CEA projects wind capacity to expand from 63 GW in FY27 to 155 GW by FY36, an addition of over 90 GW in a decade that will require a sustained step-up in annual wind commissioning.

Energy storage is emerging as the critical enabler of this transition. The National Electricity Plan projects a battery storage requirement of 47.24 GW/236.22 GWh by 2031-32, and the Generation Adequacy Plan envisages total storage capacity of 174 GW/888 GWh by FY36. The Government has approved Viability Gap Funding of 55,400 crore for 30 GWh of standalone battery storage to catalyse deployment, enabling firm, dispatchable renewable supply in which wind plays a central role.

Indias global standing strengthened during the year. India ranks 3 rd globally in renewable energy installed capacity as per IRENAS Renewable Energy Statistics 2026, having moved ahead of Brazil with 250.52 GW as of December 2025, against a world total of 5,149 GW, and ranks 4 th in installed wind power capacity. Globally, 2025 was the best year ever for the wind industry, with a record 164.6 GW of new installations, 40% higher than 2024, taking cumulative capacity to 1,299 GW, according to GWECs Global Wind Report 2026.

Policy support deepened through the year. The GST rate on renewable energy devices was reduced from 12% to 5% with effect from September 22,2025; CERC notified a defined ISTS charges waiver trajectory for renewable energy and storage projects in June 2025; the Renewable Consumption Obligation framework was unified under the Energy Conservation Act., with a dedicated wind component introduced to ensure sustained demand; and about 5787 crore was released under the Green Energy Corridor during FY26 for evacuation infrastructure, alongside about 345 GW of declared Renewable Energy Potential Zones enabling advance transmission planning.

In conclusion, Indias renewable energy landscape in FY26 was defined by record capacity additions, a majority non-fossil installed capacity mix achieved well ahead of schedule, and a firmly anchored 500 GW nonfossil target for 2030. With demand rising, policy visibility improving, and both solar and wind scaling rapidly, the sector offers a multi-year growth runway for developers, investors, and the infrastructure value chain, and wind, with its distinct grid value, is central to it.

Source: MNRE & PIB (April 2026), CEA, Ministry of Power via ET Energy (May 2026), CEA Generation Adequacy Plan 2035-36, GWEC Global Wind Report 2026

Indias Wind Energy Opportunity

Wind energy sits at the core of Indias clean energy strategy. Installed wind capacity stood at 56.09 GW as on March 31, 2026, about 10.5% of the total installed mix, ranking India 4th globally in cumulative wind capacity. FY26 marked a decisive acceleration: the 6.05 GW added during the year was the highest-ever annual wind addition, and the Government has set clear targets of 100 GW of wind capacity by 2030 and 156 GW by 2036, implying an additional opportunity of about 44 GW over the period to 2030.

Record Additions and Global Standing

Indias wind resurgence is now visible in global rankings. According to GWECs Global Wind Report 2026, India added 6.34 GW in calendar year 2025, an 85% increase over 2024 and a record high since 2017, reclaiming its position as the worlds 3rd largest wind market by annual installations, behind only China and the United States. Indias cumulative capacity of 54.5 GW as of January 2026 ranks 4th globally and 2nd in the Asia Pacific after China. The pipeline remains strong, with about 28 GW of wind capacity under implementation.

Vast Resource Base

Indias gross wind power potential is estimated at 1,163.9 GW at 150 metres above ground level, and 695.5 GW at 120 metres, as assessed by the National Institute of Wind Energy (NIWE) through more than 900 wind-monitoring stations nationwide. Current installed capacity represents under 5% of this potential.

Rajasthan & Gujarat hold majority of the assessed potential, while emerging states such as Madhya Pradesh, Telangana, and Odisha have been identified by MNRE as priority geographies for the next phase of wind deployment.

Winds Grid Value

Wind carries distinct system value in Indias evolving grid. Nearly 45% of wind generation occurs during peak demand hours, complementing solar power, which fades through the evening peak, and strengthening grid reliability. With wind generation growing 27.3% in FY26 to 106.089 BU, this profile makes wind indispensable to round-the-clock and firm renewable supply formats.

Manufacturing and Cost Competitiveness

Indias wind turbine manufacturing capacity has grown from 10 GW in 2014 to about 24 GW as of March 2026, with 70-80% indigenisation achieved across key components and strong domestic supply chains for blades, towers, and gearboxes. GWEC ranks India as the second-largest hub in the Asia Pacific for onshore wind turbine assembly and key component production, and the Union Budget 2026 extended concessional customs duties on critical wind components to deepen localisation. With the commercial and industrial segment, including captive users, contributing about 75% of FY26 wind additions, demand is increasingly market-led and cost-driven.

Policy Framework

A comprehensive policy architecture supports sustained growth in the sector:

O

Procurement visibility: A dedicated bidding trajectory of 10 GW of wind capacity per year

a

Assured demand: A dedicated wind component under Renewable Purchase Obligations

»

Generation Based Incentive: 5500 crore disbursed during FY26

W

Contracts for Difference: A 500 MW pilot to reduce price volatility and provide revenue certainty to developers

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Task Force: Constituted in January 2026 to address regulatory, land, transmission, and implementation challenges

6»

Green Energy Open Access Rules: Enabling direct procurement of renewable power by industries

ALMM framework: Strengthening quality assurance and investor confidence

In addition, the National Repowering and Life Extension Policy (2023) unlocks about 25.4 GW of repowering potential from wind turbines below 2 MW, with repowered projects required to deliver at least 1.5 times the earlier annual generation

Source: MNRE & PIB (Global Wind Day 2026), CEA, NIWE, GWEC Global Wind Report 2026

Assessed Wind Potential at 150 m (GW)

(l Rajasthan 284.2

Gujarat 180.8

i3 Maharashtra U3. 9

(4 Karnataka 169.3

5 Andhra Pradesh 123.3

6 Tamil Nadu 95 . 1

7 Madhya Pradesh 55.4

8 Telangana 54 . 7

I Whats Powering the Wind Upcycle

Indias wind sector has entered a structural upcycle. Record power demand, firming policy support, new procurement formats, and better technology are converging to create multi-year visibility for wind capacity addition, and for the engineering, construction, and O&M value chain that builds it. The key drivers include:

Rising power demand

Peak demand touched a record of about 271 GW in May 2026 and is projected by the CEA at 345 GW by FY30 and 459 GW by FY36

Policy and pipeline

Targets of 100 GW wind by 2030 and 156 GW by 2036, backed by a dedicated 10 GW per year wind bidding trajectory

Hybrid, RTC and FDRE procurement

Tenders pairing wind with solar and storage is getting priority by MNRE, another big support system for wind

Offshore beginnings

57,453 crore Viability Gap Funding for the first 1 GW off Gujarat and Tamil Nadu, against 70 GW of identified potential and target of 30 GW by 2030

Repowering

About 25.4 GW of sub-2 MW turbines eligible for repowering, with a mandated generation uplift of at least 1.5 times

Higher-capacity turbines

4-5 MW+ platforms at hub heights of 120-160 metres, improving PLFs and project economics

GST reduction

Rate on renewable energy devices cut from 12% to 5% effective September 22, 2025, lowering the cost of projects

Grid value

Nearly 45% of wind generation occurs during peak demand hours, reinforcing winds role in meeting the evening peak

Each of these drivers translates directly into a larger opportunity for wind-focused infrastructure companies. The CEA projects wind capacity to grow from 63 GW in FY27 to 155 GW by FY36, implying average annual additions of about 9-10 GW, well above even the record FY26 run-rate. Firm and dispatchable procurement expands the scope of work per megawatt, with battery storage requirements projected at 236.22 GWh by 2031-32 under the National Electricity Plan. GWEC projects 41 GW of additions in India over 2026-2030, while repowering of ageing fleets in Tamil Nadu, Maharashtra, and Gujarat opens an additional re-EPC and O&M opportunity on existing high-wind sites.

Source: MNRE & PIB, Ministry of Power, CEA Generation Adequacy Plan 2035-36, NIWE, GWEC Global Wind Report 2026

Offshore & Nearshore Wind

Offshore and nearshore wind represent the next frontier for Indias wind industry. NIWE has identified 70 GW of offshore wind energy potential across four zones each off the coasts of Gujarat and Tamil Nadu. Offshore projects deliver PLFs of 45-50%, against 30-35% for onshore wind, require minimal land, and provide consistent generation that makes them a key component of round-the-clock power. Globally, cumulative offshore wind capacity crossed 90 GW in 2025, and GWEC projects annual global offshore additions to more than triple, from 9 GW in 2025 to 33 GW in 2030. India, which has no offshore wind capacity installed as on date, has also set a target of 30 GW by 2030.

Potential offshore & nearshore zones identified by NIWE off the coasts of Gujarat and Tamil Nadu

The Government has moved from planning to execution support. The Union Cabinet has approved a Viability Gap Funding scheme with a total outlay of 57,453 crore, comprising 56,853 crore for the first 1 GW of offshore wind projects, 500 MW each off the coasts of Gujarat and Tamil Nadu, and 5600 crore for the upgradation of two ports. The first 1 GW is expected to generate about 3.72 BU annually and avoid 2.98 Million tonnes of CO2 per year, while seeding an ecosystem targeted at an initial 37 GW of offshore development entailing about 54.5 lakh crore of investment. Sites are allocated under lease with seabed exclusivity, with an ISTS waiver available up to 2032.

Momentum is building through international partnerships, including the India-UK Offshore Wind Taskforce launched in February 2026 and the renewed India-Denmark cooperation MoU, even as tendering is recalibrated after limited participation in earlier rounds, with GWEC expecting fresh offshore tenders during 2026. For the balance of plant specialists, offshore and nearshore wind opens an entirely new market spanning ports, foundations, evacuation, and marine logistics, with nearshore projects a natural first step for capabilities built onshore in Gujarat and Tamil Nadu.

Source: MNRE & PIB, NIWE, GWEC Global Wind Report 2026

Hybrid Renewable Energy Projects

Wind-solar hybrid projects have moved to the centre of Indias renewable energy strategy. Hybrid plants combine wind turbines and solar, often supplemented by Battery Energy Storage Systems (BESS), to leverage the complementary generation profiles of the two resources: solar peaks during the day, while wind generation often rises in the evening, at night, and through the monsoon months. The result is a higher capacity utilisation factor (CUF), a flatter and more predictable output curve, and optimal use of land and evacuation and transmission infrastructure shared across the two technologies. With nearly 45% of wind generation occurring during peak demand hours, hybridisation directly addresses the grids growing need for firm, dispatchable renewable power.

Procurement has shifted decisively in this direction. New capacity additions are increasingly being driven by hybrid and Firm and Dispatchable Renewable Energy (FDRE) tenders, and MNRE has prioritised hybrid and Round-the-Clock (RTC) renewable projects to improve grid efficiency. Regulatory enablers are aligning as well: CERCs non-solar-hour connectivity framework improves transmission utilisation for wind-heavy hybrids, Green Energy Open Access Rules allow industries to procure hybrid power directly, and the dedicated wind component under renewable purchase obligations ensures baseline demand for the wind element of hybrid portfolios. The shift is visible in auction activity as well: GWEC estimates that around one-third of global onshore wind auction volumes outside China in 2025 came from the Asia Pacific region, primarily India.

Energy storage completes the hybrid proposition. The National Electricity Plan projects BESS requirements of 47.24 GW/236.22 GWh by 2031-32, and the Government has approved Viability Gap Funding of 55,400 crore for 30 GWh of standalone BESS, at 518 lakh per MWh, to catalyse deployment. As storage costs decline, wind- solar-storage combinations are increasingly winning RTC and FDRE tenders, converting variable renewable energy into firm capacity that can substitute conventional generation, while commanding a larger scope of engineering and construction work per project.

For the wind value chain, hybridisation expands the addressable market on several fronts: larger balance of plant and EPC scope per project, including solar blocks, storage integration, and common evacuation infrastructure; pooling substations and transmission assets serving multiple technologies; and longer- duration O&M contracts spanning wind, solar, and storage assets, with turbine platforms of 4-5 MW+ at 120-160 metre hub heights raising energy capture per site. Gujarat, with 180.8 GW of assessed wind potential, abundant solar resource, and established evacuation corridors, is among the most attractive geographies in India for utility-scale hybrid development.

With the CEA projecting wind capacity to nearly triple to 155 GW and solar capacity to more than triple to 509 GW by FY36, hybridisation of the two, increasingly backed by storage, will be a defining feature of Indias next decade of capacity addition. GWEC projects 41 GW of wind additions in India over 2026-2030, much of it within hybrid and FDRE frameworks. Hybrid projects are no longer a niche, they are becoming the default architecture for firm renewable supply, and companies with proven wind-solar hybrid execution capabilities are structurally advantaged in this transition.

Source: MNRE & PIB, GWEC Global Wind Report 2026, CEA (Generation Adequacy Plan 2035-36), Ministry of Power

Company Overview

KP Energy Limited is a prominent leader in the Indian wind energy sector, distinguished by its advanced and comprehensive Balance of Plant (BOP) solutions that drive the sustainable development of large utility-scale wind and wind-solar hybrid farms. Headquartered in Gujarat, India, the Company manages the complete lifecycle of wind energy projects - from conceptualization and site identification to construction, commissioning, and ongoing operations and maintenance through its post-commissioning lifecycle. KP Energys comprehensive service portfolio includes site preparation, construction, erection, power evacuation, and O&M, ensuring seamless project execution and delivery. The Company has energised a cumulative installed capacity of 1.57+ GW, holds 2.16+ GW of projects in hand, and its total renewable portfolio now stands at 3.73+ GW.

With a strong commitment to sustainability and innovation, KP Energy integrates all critical activities required for utility-scale wind farm development, offering turnkey solutions that streamline project delivery. This holistic approach positions the Company as a key contributor to Indias renewable energy transition, supporting a greener future through reliable and efficient wind power infrastructure.

Business Model

KP Energy structures its operations around 3 core segments, each integral to its leadership in Indias wind energy market:

Project-Based Revenue: Engineering, Procurement, Construction, and Commissioning (EPCC)

This segment encompasses the end-to- end development of wind and wind-solar hybrid farms, including site identification, land and evacuation infrastructure, construction, and project commissioning, ensuring efficient and timely project delivery.

Annuity-Based Revenue: Independent Power Producers (IPP)

As an IPP, KP Energy develops, owns, and operates wind and solar assets, directly contributing to Indias renewable energy capacity. Units generated under the IPP portfolio rose from 3.9 crore kWh in FY25 to 9.5 crore kWh in FY26.

Annuity-Based Revenue: Operations and Maintenance (O&M)

Through its wholly owned subsidiary,

KP Energy OMS Limited, the Company focuses on the effective management and maintenance of wind energy BOP infrastructure, ensuring long-term reliability and optimal performance of wind farms.

By leveraging expertise across these 3 segments and fostering operational synergies, KP Energy has established itself as a comprehensive service provider in utility-scale wind farm development.

The Companys ongoing emphasis on innovation and sustainability continues to drive growth and reinforce its leadership in the Indian wind energy sector.

MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)

Business Performance Discussion

KP Energy delivered another record year in FY26, delivering new highs across all key performance indicators. The Company achieved a significant increase in its top line, with Total Income rising 57%

YOY to 51,506 Crores from 5958 Crores in FY25, and Revenue from Operations growing 59% to 51,497 Crores.

Profitability strengthened further. EBITDA grew 68%

YOY to 5328 Crores from 5196 Crores in FY25, with the EBITDA margin improving from 20% to 22%, while Profit After Tax rose 57% YOY to a record 5181 Crores from 5115 Crores. Earnings Per Share increased from 517.29 to 527.07, Cash Profit grew 72% YOY to 5239 Crores, and the Companys net worth expanded 67% to 5522 Crores.

This robust financial performance was underpinned by strong project execution and enhanced operational efficiency. KP Energy has now successfully energized wind and hybrid energy projects exceeding 1.57 GW in its lifetime, encompassing both CTU and STU projects, and its continued investment in technology- led execution & operational excellence has been instrumental in compressing delivery timelines while scaling volumes.

Key Financial Ratios

Financial Ratios	FY26	FY25	Change	Remarks
Debtors Turnover	6.07	3.19	90.61%	The Trade Receivables Turnover Ratio increased during the year, primarily due to a significant increase in revenue while the average trade receivables decreased as compared to the previous year.
Inventory Turnover	1.33	4.08	-67.28%	The Inventory Turnover Ratio has decreased primarily due to a significant increase in the average inventory levels.
Interest Coverage Ratio	7.49	8.85	-15.35%	-
Current Ratio	1.20	1.37	-12.55%	-
Debt Equity Ratio	0.76	0.74	1.81%	-
Operating Profit Margin (%)	21.33%	18.84%	13.21%	-
Net Profit Margin (%)	12.09%	12.10%	-0.04%	-
Return of Equity	34.59	36.67	-5.69%	-

Technology Initiatives

KP Energy continues to implement several cutting- edge technological initiatives to enhance operational efficiency and project execution across the project lifecycle. Recognizing the accelerating pace of technological innovation and its potential to drive organizational performance, the Company has proactively integrated these advancements across its operations.

Project Capabilities

KP Energys in-house Wind Resource Assessment (wra) capabilities deliver accurate, high-resolution wind data analysis using advanced modelling tools, on-site measurements, and GIS mapping. The team operates 45+ wind masts across the region along with Windcube LiDAR technology, enabling precise site suitability evaluation, calibration, and robust power curve measurements. High-resolution, real-time wind data across multiple altitudes supports optimized site selection, energy yield estimation, and project bankability, enabling early detection of high-wind land resources and faster, more reliable wind farm design. Key benefits include enhanced data accuracy, robust site suitability analysis, improved calibration, advanced analytics, and versatile wind data exploration, all contributing to operational continuity and project reliability.

To further strengthen operational oversight, KP Energy leverages KP Groups centralized Network Operations Centre (NOC), which serves as the monitoring hub for the Groups solar and wind assets across 285+ clients. Built on the latest cloud-based technologies with SCADA integration, the NOC enables real-time tracking of key equipment such as inverters, WTGs, and Weather Monitoring Systems (WMS), with Al- based alerts and automated daily, weekly, and exception reporting. This supports rapid fault detection and response, preventive maintenance deployment. and comprehensive asset, inventory, and warranty management, and has underpinned 100% O&M contractual compliance to date. This centralized approach has been instrumental in maintaining generation guarantees and maximum uptime across geographically dispersed sites.

KP Groups NOC platform is built on IBM Maximo for Renewables, and taking into account this systems superior performance, IBM has published a global case study recognizing KP Groups NOC as a benchmark for digital operations in the renewable energy sector.

Organizational Efficiencies

Beyond project execution, KP Energy has prioritized organizational efficiency and digital transformation. The integration of SAP Business One has streamlined core business functions, including financial management, sales, procurement, inventory, production planning, business intelligence, and reporting, enabling agile, data-driven decisionmaking. In parallel, the Keka platform automates human resource processes such as attendance, leave, performance evaluation, and expense monitoring, enhancing data accuracy, compliance, and communication across the organization, delivering deeper operational insights in support of sustainable and profitable growth.

These technological initiatives underscore KP Energys commitment to leveraging innovation to optimize operations, enhance efficiency, and ensure sustainable growth.

Outlook

With the accelerating deployment of wind and hybrid energy projects and the consistent enhancement of its capabilities, KP Energy maintains a positive outlook for its core Engineering, Procurement, Construction, and Commissioning (EPCC) business segment.

The Company holds 2.16+ GW of projects in hand, providing multi-year revenue visibility and enabling a targeted and selective approach to new growth opportunities. Landmark IPP order wins during FY26 include a 100 MW ISTS-connected wind power project awarded by SECI at a tariff of ?3.67 per unit, and a Letter of Intent from GUVNL for a 100 MW wind project, comprising 50 MW base capacity and a 50 MW greenshoe option, tariffed at E3.44 per unit & tariffed at ?3.43 per unit, respectively.

The order book is also healthy in the EPC portfolio: a

99 MW wind EPC project for Inox Renewable Solutions, and hybrid wind-solar EPC mandates of 40.8 MW from Enerparc Energy and 91.4 MW from JK Paper, including O&M scope. During the year, the Company also received a Category-V inter-state electricity trading licence from CERC, enabling participation in pan-India power markets.

KP Energy continues to break new ground in wind resource deployment, having distinguished itself as the first company to advance South Gujarat with the installation of Indias first Make in India 4.2 MW- 160 wind turbine, and works with major OEMs on WTG platforms of up to 5.x MW. The Company has undertaken a BOP initiative to explore offshore wind participation to the tune of 1-2 GW in Gujarat and Tamil Nadu, and has received in-principle approval for 100 MW of ISTS connectivity.

In the IPP segment, the portfolio has grown to 248.5 MW, comprising 48.5 MW of operational assets and 200 MW under execution, anchoring annuity revenues alongside the O&M portfolio of 646+ MW. Supported by the KP Groups ambitious target of surpassing 10 GW by 2030, and Indias 100 GW wind roadmap, KP Energy is well positioned for sustained, profitable growth and long-term value creation.

Risks and concerns

Impact

Operating within a dynamic renewable energy sector, KP Energy is subject to evolving government regulations and policies. Changes in wind energy policy, bidding frameworks, tariffs, duties, or evacuation and connectivity norms can affect project timelines, costs, and industry economics, requiring agile adaptation to preserve business stability and predictability.

Mitigation Strategies

Continuous Monitoring and Engagement: The Company proactively tracks regulatory developments at central and state levels, engages with stakeholders and industry associations, and participates in consultations to help shape favourable frameworks. Diversified exposure across CTU and STU networks, and the newly received CERC trading licence, reduce dependence on any single regulatory pathway, while scenario planning for bidding and tariff changes maintains policy foresight.

Impact

KP Energys revenue streams are closely linked to capital expenditure in the wind energy sector by IPPs, CPPs, and C&I customers. Slowdowns in investment cycles, delays in tender rollout, or deferral of customer CAPEX can adversely affect order inflows and financial performance.

Mitigation Strategies

Strengthening Customer Relationships: The Company prioritizes long-term partnerships with IPPs, CPPs, and corporates, supported by its delivery track record and repeat business.

Diversification of Revenue Streams: A balanced platform across EPCC, O&M, IPP, and power trading, together with growing hybrid and FDRE demand, reduces reliance on any single revenue stream and adds annuity stability.

Impact

Project development involves multiple risks, including securing permits, land acquisition, logistics, and Right-of- Way (RoW) challenges, along with grid connectivity timelines and equipment supply constraints. These factors can lead to delays and cost overruns, negatively affecting profitability.

Mitigation Strategies

Comprehensive Risk Assessment: Each project undergoes structured risk evaluation covering land, RoW, permits, and logistics, with mitigation plans developed upfront.

Enhanced Planning and Execution: In-house Wind Resource Assessment, detailed feasibility studies, and robust project management and securing land and Power evacuation in advance reduce the likelihood of delays and overruns.

Collaboration and Partnerships: The Company works closely with local authorities, communities, OEMs, and suppliers to streamline development and address uncertainties effectively.

Internal Control Systems and Their Adequacy

The Company maintains robust internal control systems appropriate to its size and the nature of its business. These systems are designed to safeguard assets, prevent unauthorized use or disposition, and ensure that all transactions are properly authorized, accurately recorded, and reported in accordance with the Companys policies and applicable regulations. The adequacy of internal controls is reviewed periodically by the Audit Committee and management, and improvements are implemented on an ongoing basis to enhance their effectiveness.

Human Resource Development and Employee Relations

At KP Energy, we recognize that our employees are our most valuable asset and the cornerstone of our growth. We are committed to investing in their professional development and positioning ourselves as an employer of choice within the industry. As on March 31, 2026, our team strength stood at 445+, including 285+ engineers and 66+ professionals drawn from premier institutions. During the year, KP Group and IIM Ahmedabad concluded an 11-month Leadership Programme for 28 future energy leaders.

Guided by our core values of teamwork, trust, and action, we cultivate a culture of collaboration and mutual respect, promoting harmonious employee relations at all levels. We are proud of our Great Place to Work certification, which affirms our dedication to an exceptional work culture, and initiatives such as the Gigawatt Gala award ceremony celebrate outstanding employee achievements. During the year, KP Group crossed the milestone of 1 GW of installed IPP capacity in renewable energy across wind and solar. To mark the achievement, the Group hosted the Gigawatt Gala, an evening dedicated to the teams whose work made the milestone possible. The event recognised individual and team contributions across project development, execution, and operations, and reflected our conviction that milestones of this scale are built by people.

Cautionary statement

Statements in the Management Discussion and Analysis and other parts of the report describing the Companys objectives, projections, estimates and expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include economic and political conditions in India and other countries, in which the Company may operate.

Other factors that may impact the Companys operations include volatility in interest rates, changes in government regulations and policies, tax laws, statutes, and other incidental factors. The Company does not intend to update these statements.