K.P. Energy Ltd Management Discussions

Economic Overview

Indian economy

India’s economy in 2025 stands out for its resilience and dynamism amid a challenging global environment, according to the latest publications from the IMF and the World Bank. According to the IMF, India’s GDP growth is projected to be at 6.2% for 2025 and 6.3% for 2026, maintaining its status as the fastest-growing major economy in the world. This forecast reflects the impact of global trade tensions and policy uncertainties that have affected economies worldwide.

The World Bank, in its January 2025 update, had projected India’s growth at 6.7% for the fiscal year 2025-26, but revised this figure to 6.3% in April 2025, citing a slowdown in public investment and persistent global economic weakness.

Despite these downward revisions, India’s growth remains robust, especially when compared to other major economies. The IMF highlights that India’s growth rate is more than double the global average forecast of 2.8% for 2025. This impressive performance is underpinned by several key drivers. Private consumption, particularly in rural areas, has shown notable recovery, supported by improved agricultural output and government welfare initiatives. The services sector continues to be a major engine of growth, with strong performances in information technology, financial services, and tourism. Government-led infrastructure development, especially in transportation and energy, has provided additional impetus, although public capital expenditure has not met earlier targets.

Private investment is expected to gain momentum in the coming months, bolstered by the Reserve Bank of India’s accommodative monetary policy and ongoing regulatory reforms aimed at improving the business climate. However, the manufacturing sector’s growth has been relatively subdued, constrained by weak export demand and lasting supply chain disruptions. The external sector faces additional challenges, as global trade policy shifts and economic slowdowns in key markets have dampened export prospects. As a result, the current account deficit is projected to widen moderately, although it remains manageable within the broader context of India’s macroeconomic stability.

India’s economic ascent is also reflected in its global rankings. In 2025, India is set to become the world’s fourth-largest economy by nominal GDP, overtaking Japan with an estimated GDP of $4.19 trillion. Looking ahead, projections indicate that India will surpass Germany by 2028, securing the position of the third-largest economy globally.

This rapid rise is seen by the IMF as part of a broader shift in global economic power, with India outpacing most other major economies in both growth rate and absolute size.

Nevertheless, some risks remain. Ongoing global trade disputes, could weigh on investor sentiment and economic performance. The IMF warns of potential spill overs from rising trade tariffs and volatility in global financial markets, which could affect capital flows and exchange rates. Both institutions stress the importance of continued reforms in infrastructure, financial inclusion, and the regulatory environment to sustain growth and enhance resilience.

In summary, India’s strong economic trajectory, driven by resilient domestic demand, a vibrant services sector, and strategic policy initiatives. While challenges persist-especially in manufacturing and exports - India’s fundamentals remain sound, and its role as a key anchor of global growth is increasingly recognized. The confidence expressed by these leading international institutions underscores India’s evolving position as a major force in the global economy, poised for further advancement in the years ahead.

Industry overview Indian renewable energy landscape

According to the International Energy Agency’s World Energy Outlook, the global supply of renewable energy is projected to reach 4,550 GW by 2040, and India is set to play a significant role in this expansion. Over the past decade, India’s installed renewable power generation capacity has grown at a compound annual growth rate (CAGR) of 15.29% between FY16 and FY25, reflecting one of the fastest adoption rates among major economies. As of January 2025, India’s total installed renewable energy capacity reached an impressive 165.2 GW, a figure that underscores the country’s rapid progress in this sector. This capacity now accounts for 45.5% of the nation’s total installed power capacity, a remarkable shift from the fossil fuel-dominated energy mix of previous decades.

The Government of India’s vision for the future is even more ambitious. India aims to achieve 450 GW of installed renewable energy capacity by 2030, with over 60% of this - roughly 280 GW - expected to come from solar power alone. This target not only positions India as a global leader in solar energy but also opens up massive investment opportunities, estimated at US$ 221 billion by 2030. The Ministry of New and Renewable Energy has set an even higher goal of 500 GW of nonfossil-based electricity generation capacity by 2030, in line with the Prime Minister’s announcement at COP26. In 2023, the country added 13.5 GW of renewable energy capacity, corresponding to an investment of around 474,000 Crores (US$ 8.90 billion), signalling the scale and pace of ongoing efforts.

The momentum is not limited to central government initiatives. States like Karnataka have set their own ambitious targets, aiming to add approximately 38 GW of renewable energy capacity by FY35, with nearly half of that expected by FY30. Such regional efforts complement the national agenda, ensuring that the transition to clean energy is both broad-based and inclusive.

The impact of these investments and policies is evident in the continuous rise in power generation from renewable sources. In December 2024, power generation from renewables (excluding hydro) stood at 19.77 billion units (BU), up from 16.76 BU in December 2023.

For the period between April and December 2024, renewable energy sources generated 189.48 BU, up 10% YOY, marking a significant increase from 172.48 BU in the same period the previous year. These figures highlight not only the growing capacity but also the increasing reliability and contribution of renewables to India’s energy grid.

India’s achievements in wind energy are equally noteworthy. The country now ranks fourth globally in terms of total installed wind power capacity, reflecting its long-standing commitment to harnessing this resource. The National Electricity Plan (Transmission) further supports the renewable sector by aiming to boost interregional transmission capacity to 168 GW by 2031-32.

This involves adding 191,474 circuit kilometres of transmission lines and 1,274 GVA of transformation capacity, including 33.25 GW of high-voltage direct current (HVDC) links, cross-border interconnections, and increased private sector participation to enhance grid efficiency and reliability.

Solar energy, in particular, has witnessed a phenomenal rise. India added 16.4 GW of solar capacity during January-September 2024, marking a 167% YOY increase. By September 2024, India’s cumulative installed solar capacity stood at 89.1 GW, with utility-scale projects making up over 86% and rooftop solar accounting for nearly 14%.

Solar power now constitutes approximately 20% of India’s total installed power capacity and more than 44% of its renewable energy capacity, underscoring its central role in the country’s clean energy strategy.

Realizing these ambitious targets, however, requires substantial investment. Moody’s estimates that India will need between US$ 190 billion and US$ 215 billion over the next seven years to achieve the 500 GW renewable energy capacity target by 2030. Additionally, another US$ 150 billion to US$ 170 billion will be necessary for electricity transmission, distribution, and energy storage infrastructure.

These figures highlight the scale of financial mobilization required and the critical role of both public and private sector investment in driving the transition.

Despite the impressive progress, challenges remain. Grid integration of variable renewable sources, land acquisition for large-scale projects, and the need for technological advancements in storage and transmission are persistent hurdles. The government and industry stakeholders are addressing these issues through policy reforms,

innovative financing mechanisms, and the adoption of advanced technologies such as smart grids and battery storage. The focus on enhancing interregiona transmission capacity, encouraging private sector participation, and fostering cross-border energy cooperation are strategic steps toward overcoming these obstacles.

In conclusion, Indias renewable energy landscape in 2025 is characterized by rapid growth, ambitious targets, and a strong policy framework. With nearly half of its power capacity now coming from non-fossil sources and solar energy at the forefront, India is well on its way to achieving its 2030 goals. The sector’s growth not only contributes to energy security and environmental sustainability but also offers vast economic opportunities, positioning India as a global leader in the clean energy transition. The coming years will be crucial as the country seeks to scale up investments, enhance grid infrastructure, and integrate cutting-edge technologies to realize its vision of a sustainable and prosperous energy future.

Indian wind energy sector

Strategic Vision and National Targets

Indias wind energy sector is a cornerstone of the country’s ambitious clean energy transition. The government has launched several strategic initiatives, including a target of 500 GW of renewable energy capacity by 2030 (with 140 GW from wind), a net zero goal by 2070, and the ‘National Green Hydrogen Mission’. These initiatives are designed to drive both energy security and sustainable growth.

India’s wind energy sector is witnessing strong growth, with 3.4 GW of new capacity added in 2024 -the highest annual installation level since 2017 - bringing total capacity to 48.16 GW. India ranks 4^th globally in total wind installations, with 48.16 GW of onshore wind capacity, making it the 2^nd largest wind market in the Asia Pacific region after China. This growth is the result of decades of policy support, technological advancements, and a robust domestic manufacturing ecosystem.

Growth Trajectory and Capacity Outlook

Indias wind sector has experienced a resurgence, with over 4 GW of new wind power capacity installed in 2024-25, a significant increase over previous years. The Global Wind Energy Council (GWEC) projects a continued recovery, revising its onshore wind outlook for 2024- 2028 to 22.8 GW. According to the National Electricity Plan, installed wind capacity is estimated to reach around 73 GW by 2026-27 and 122 GW by 2031-32. Despite this momentum, a sizable gap remains between projected growth and the governments 140 GW wind target for 2030.

Policy and Regulatory Framework

The central government, through the Ministry of New and Renewable Energy (MNRE), has outlined an ambitious procurement trajectory, mandating annual bids of 50 GW for solar, wind, and hybrid projects from FY24 to FY28.

Following the governments announcement that it was targeting 50 GW of renewable energy and 10 GW of onshore wind bids per year between 2023 and 2027 through single-stage/e-reverse auction bidding, last year saw a surge in activity. By the end of December 2024, nearly 27.3 GW of projects had been awarded, either as standalone wind or as wind components of hybrid projects. Gujarat, Tamil Nadu, Maharashtra, Rajasthan and Karnataka led the way for Indias 2024 wind energy auctions.

Wind Energy Auctions in India (2024)

Key policy enablers include:

. An onshore wind auctions target of 10 GW annually over the 2023- 2027 period via single-stage/e- reverse auctions

. Wind-specific renewable purchase obligations (RPOs) from 2023 to 2030

. High demand from the C&l segment

. Inter-State Transmission System charges waiver up to June 2025 (i.e., installation will peak in 2025)

. Plans to upgrade the transmission network to integrate 48 GW onshore wind capacity by 2030

. Policy measures in support of wind power procurement

. Mandated minimum renewable energy share for DISCOMs and green electricity purchase options for consumers

. Timely disbursal of payments by DISCOMs

. Revised‘National Repowering & Life Extension Policy for Wind Power Projects - 2023’

Waivers on Inter-State Transmission System (ISTS) charges for projects commissioned before June 2025 have also reduced costs and encouraged interstate power sales. The allowance of 100% Foreign Direct Investment (FDI) under the automatic route has attracted international capital and expertise, fostering technology transfer and innovation.

Manufacturing and Cost Competitiveness

India’s wind energy industry is supported by a strong domestic manufacturing sector, with an annual production capacity of around 18 GW for wind turbine components. This has reduced import dependence and fostered a vibrant ecosystem of suppliers and skilled labour. Wind power remains cost-competitive, with recent auction tariffs ranging from 42.43 to 43.17 per kWh, though supply chain and financing challenges have recently increased prices.

India is strategically positioned for wind manufacturing expansion, benefiting from the "China +1" approach adopted by global supply chain factors. Domestic manufacturing is sufficient to meet onshore wind demand through 2030, with potential for export growth if capacity is scaled up.

Offshore Wind: Progress and Prospects

ndia is making significant strides in offshore wind. The first offshore wind seabed tender has been finalized, with a revised strategy paper outlining 3 models to award 37 GW of capacity by 2030. Offshore wind lease rules have been released, and in February 2024,

SECI announced a 4 GW offshore wind seabed leasing in Tamil Nadu. Viability gap funding (VGF) has been approved for an initial 1 GW of offshore wind, along with an ISTS waiver up to 2032.

To realize offshore wind potential, India must address market barriers such as port and grid infrastructure readiness, vessel availability, supply chain strategy, off take assurance, streamlined permitting, community partnership, and skilled workforce development. The successful award of offshore wind tenders is expected to attract investments in domestic offshore wind manufacturing, with incentives from central and state governments playing a crucial role.

Outlook

India’s wind energy sector is poised for robust growth, underpinned by a clear policy roadmap, strong manufacturing base, and increasing private sector participation.

The sector is central to India’s decarbonization strategy, supporting industrial decarbonization and the sustainability commitments of Indian and multinationa corporations. With continued policy support and market reforms, wind energy will play a pivotal role in India’s clean energy transition, economic development, and climate resilience in the years ahead.

Challenges and Barriers

Despite positive momentum, several challenges persist:

Transmission infrastructure bottlenecks and grid connectivity delays

Protracted land acquisition and right- of-way clearances

Policy Consistency and regulatory clarity, especially at the state level

Increased turbine prices due to commodity inflation and higher financing costs.

State-level issues with right of way, PPA sanctity, delayed payments, and land allocation

Hybrid Renewable Energy Projects

The wind-solar hybrid energy space in India has rapidly emerged as a strategic solution to the challenges of renewable energy integration, grid stability, and cost optimization. As of September 2024, India’s operational wind-solar hybrid project capacity stood at ~7.7 GW, with a robust project pipeline of nearly ~30 GW, underscoring the sector’s accelerating momentum and growing investor confidence, as per Mercom India. Hybrid systems, which combine wind turbines and solar photovoltaic (PV) panels - often supplemented by Battery Energy Storage Systems (BESS) - leverage the complementary generation profiles of wind and solar resources. Solar power typically peaks during the day, while wind generation often rises at night or during monsoon months, resulting in a more stable and predictable overall power output. This synergy not only reduces intermittency but also allows for higher capacity utilization factors (CUF), making hybrid plants more efficient and reliable than standalone wind or solar projects.

The Indian government has recognized the strategic value of hybridization and has introduced supportive policies and regulatory frameworks to accelerate deployment. The Ministry of New and Renewable Energy (MNRE) has facilitated large-scale hybrid tenders, with the Solar Energy Corporation of India (SECI) playing a pivotal role in auctioning hybrid capacities. Recent auctions have demonstrated the economic viability of these projects: for instance, a 1,200 MW wind-solar hybrid tender in 2024 saw tariffs in the range of R3.43-3.46 per kWh, with a minimum CUF requirement of 30%. In comparison, recent standalone wind and solar auctions yielded tariffs of R3.60-3.70 per kWh (wind, CUF 22%) and R2.48 per kWh (solar, CUF 17%), respectively. The higher CUF and competitive tariffs of hybrid projects highlight their ability to optimize transmission infrastructure and reduce overall capital costs, making them attractive to both developers and distribution companies, as per Ember.

Major projects are now underway to harness the full potential of hybrid systems. Notably, India has announced a 13 GW hybrid renewable energy park in Ladakh, integrating solar, wind, and battery storage across the Pang, Debring, and Kharnak regions. This ambitious initiative not only aims to maximize renewable generation in a high-potential area but also i ncludes the development of a dedicated interstate transmission system under the Green Energy Corridor (GEC-11) program to evacuate power to demand centers in northern India. Such projects exemplify the scale and complexity of India’s hybrid ambitions, which are increasingly seen as essential for meeting national renewable energy targets and ensuring grid reliability.

The advantages of wind-solar hybrid systems extend beyond grid stability and cost savings.

By diversifying generation sources, hybrid plants enhance energy security, reduce reliance on fossil fuels, and offer a pathway to energy independence for remote or underserved regions. Advanced control systems, such as SCADA, are integral to these projects, enabling real-time monitoring, optimization, and seamless integration with smart grids. Battery storage further enhances the value proposition by enabling time-shifting of excess generation and providing ancillary services to the grid.

Despite these benefits, the sector faces challenges related to land acquisition, timely grid connectivity, and the need for streamlined auction and approval processes. Addressing these issues is critical to unlocking the full potentia of hybrids and meeting the government’s ambitious renewable energy targets. As India’s energy mix evolves, wind-solar hybrid systems are poised to play a central role in delivering reliable, affordable, and sustainable power, driving the nation closer to its decarbonization goals and reinforcing its leadership in the global renewable energy transition.

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 farms. Headquartered in Gujarat, India, the Company manages the complete lifecycle of wind and wind-solar hybrid energy projects - from conceptualization and site identification to construction, commissioning, and ongoing operations and maintenance through its postcommissioning 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+ GW, with an additional 2.26+ GW in the pipeline.

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 renewable 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)		Annuity-Based Revenue: Operations and Maintenance (O&M)		Annuity-Based Revenue: Independent Power Producers (IPP)
This segment encompasses the end-to-end development of wind and wind-solar hybrid farms, including site identification, construction, and project commissioning, ensuring efficient and timely project delivery.		KP Energys O&M division focuses on the effective management and maintenance of wind energy BOP infrastructure, ensuring long-term reliability and optimal performance of wind farms.		As an IPP, KP Energy develops, owns, and operates wind and solar assets, directly contributing to India’s renewable energy capacity and supporting the nation’s shift toward sustainable power sources.
96.9%	1+ GW	2.5%	546+ mw	0.5%	48.5 mw
Revenue Contribution	Cumulative Capacity Energised	Revenue Contribution	Cumulative O&M Portfolio	Revenue Contribution	Cumulative Energy Generation Capacity (IPP)

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.

Business performance discussion

KP Energy has demonstrated exceptional financial performance in recent years, establishing new records across all parameters & key performance indicators. The Company achieved a significant increase in its top line, with Revenue from Operations reaching R939 Crores in FY25 — a 99% year-on-year growth compared to R473 Crores in the previous financial year.

Profitability also improved markedly, as EBITDA doubled from R98 Crores in FY24 to Rs. 196 Crores in FY25, reflecting a 100%year-on-year increase. As a result, Profit After Tax reached a record high of R115 Crores, representing a 98% rise over the previous year’s Rs. 58 Crores. Earnings Per Share also surged, increasing from Rs. 8.8 in FY24 to R17.3 in FY25.

This robust financial performance was underpinned by strong project execution and enhanced operational efficiency.

KP Energy has now successfully energized renewable energy projects exceeding 1 GW in its lifetime, encompassing both CTU and STU projects. The Company’s ongoing commitment to leveraging advanced technology to streamline operations and accelerate project delivery timelines has been instrumental in achieving these results.

Key Financial Ratios

Financial Ratios	FY25	FY24	Change	Remarks
Debtors Turnover	3.19	2.97	7.23%	-
Inventory Turnover	4.08	3.62	12.73%	-
Interest Coverage Ratio	8.85	9.15	-3.29%	-
Current Ratio	1.37	1.33	2.97%	-
Debt Equity Ratio	0.74	0.52	41.72%	Debt Equity Ratio has significantly increased due to the loan pertaining to the 28.60MW IPP plant being availed during the current year.
Operating Profit Margin (%)	18.82%	18.11%	3.93%	-
Net Profit Margin (%)	12.10%	12.51%	-3.30%	-
Return of Equity	36.67	32.34	13.40%	-

Technology Initiatives

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

Project Capabilities

KP Energy has adopted Windcube LIDAR (Light Detection and Ranging) technology to significantly improve wind resource assessment and analysis. This state-of-the- art system enables precise site suitability evaluations, calibration, and power curve measurements, providing high-resolution, real-time wind data across multiple altitudes. Key benefits include enhanced data accuracy, robust site analysis, improved calibration, advanced analytics, and versatile wind data exploration, all of which contribute to greater operational continuity and project reliability.

To further strengthen operational oversight, KP Energy has invested in a centralized Network Operations Center (NOC). The KP NOC serves as the central monitoring hub for assets distributed across geographically diverse locations. Leveraging the latest cloud- based technologies, the NOC enables real-time data capture, monitoring, and fault management. It supports rapid fault detection and response, comprehensive asset management, inventory control, and warranty tracking, ensuring efficient management of hardware, software, and spare parts. This centralized approach has been instrumental in maintaining a 100% generation guarantee for the plant to date. With SCADA integration enabling real-time tracking of all key equipment such as Inverters, Weather Monitoring Systems (WMS), and Multifunction Meters (MFM), the NOC ensures maximum uptime and immediate fault detection.

KP Group’s NOC platform is built on IBM Maximo for Renewables, and taking into account this system’s superior performance, IBM has published a global case study recognizing KP Group’s 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 financia management, sales, customer management, procurement, inventory, production planning, business intelligence, and reporting. This comprehensive platform delivers deeper operational insights and enables agile, data-driven decision-making, supporting sustainable and profitable growth.

Additionally, KP Energy utilizes the Keka platform for human resource management. This solution automates and streamlines HR processes such as leave management, attendance tracking, performance evaluation, and expense monitoring. By leveraging Keka, KP Energy enhances data accuracy, ensures compliance, and fosters improved communication among HR, management, and employees, driving operational excellence and continuous improvement.

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

Outlook

With the increasing deployment of wind and hybrid energy projects, coupled with the consistent enhancement of its operational and project capabilities, KP Energy maintains a positive outlook for its core Engineering, Procurement, Construction, and Commissioning (EPCC) business segment. This outlook is underpinned by a robust project pipeline, with over 2.26 GW of projects currently in hand. Such a substantial order pipeline provides the Company with multiyear revenue visibility and enables a targeted & selective approach to pursuing new growth opportunities.

In addition, KP Energy is actively exploring strategic initiatives, including the development of 1-2 GW offshore wind projects in Gujarat and Tamil Nadu, and has distinguished itself as the first Company to advance wind resource deployment in South Gujarat. These efforts, alongside the ambitious renewable energy targets set by the Government of India — aiming for 500 GW of installed renewable energy capacity, including 140 GW of wind power by 2030 — further strengthen the Companys growth prospects.

KP Energys strategic vision extends beyond its core EPCC operations to encompass significant investments in the Independent Power Producer (IPP) segment. Building on the current capacity of its 48.5 MW renewable energy portfolio, the Company has set an ambitious target to expand its IPP capacity to 100 MW by the end of FY27.

Looking forward, KP Energy has established a comprehensive strategic roadmap to reinforce its position within the IPP segment and capitalize on the substantial growth opportunities in the EPCC segment with capacity installations in the renewable energy sector. These initiatives are expected to drive sustained long-term profitability. Concurrently, the Companys Operations and Maintenance (O&M) business is poised for growth in line with the expansion of the EPCC segment, with an existing O&M portfolio exceeding 546 MW. This integrated growth strategy ensures sustainable, long-term growth, and value creation for the Company.

Risks and concerns

	Impact	Mitigation Strategies
Regulatory Risk	Operating within the dynamic renewable energy sector, KP Energy is subject to evolving government regulations and policies. Changes in wind energy policies or power evacuation infrastructure can significantly affect industry performance and Company operations. Unfavorable regulatory adjustments may disrupt business stability and predictability, requiring agile adaptation to mitigate associated challenges.	Continuous Monitoring and Engagement: KP Energy proactively monitors regulatory developments to anticipate and adapt to changes in the policy landscape. The Company actively engages with stakeholders, participates in industry associations, and provides feedback to help shape favorable regulatory frameworks.
Business Vulnerability	KP Energy’s revenue streams are closely linked to capital expenditures in the wind energy sector, primarily driven by Independent Power Producers (IPPs) and Captive Power Producers (CPPs). Fluctuations in capital investment cycles, such as reduced spending by IPPs or CPPs, can adversely impact financial performance. Proactive risk management is essential to ensure sustainable growth amid these dynamics.	Strengthening Customer Relationships: The Company prioritizes long-term partnerships with IPPs and CPPs, delivering value-added services to enhance loyalty and maintain a stable customer base committed to ongoing capital investments.
		Diversification of Revenue Streams: KP Energy seeks to diversify its revenue sources by expanding into project development, operations and maintenance, and power generation as an IPP. This approach reduces reliance on a single revenue stream and increases resilience against fluctuations in capital expenditure cycles.
Project Development	Project development involves multiple risks, including securing permits, land acquisition, logistics, and Right-of-Way (RoW) challenges. These factors can lead to project delays, cancellations, or write-offs, negatively affecting profitability. Delays often result in cost overruns, further impacting financial performance.	Comprehensive Risk Assessment: Each project undergoes thorough risk assessment to identify potential challenges and develop mitigation plans, particularly concerning permits, land acquisition, logistics, and RoW.
		Enhanced Project Planning and Execution: KP Energy continually improves project planning and management processes through detailed feasibility studies, optimized timelines, and robust project management, reducing the likelihood of delays and cost overruns.
		Collaboration and Partnerships: The Company works closely with local authorities, communities, and suppliers to streamline project development, foster strong partnerships, and address uncertainties effectively, minimizing potential obstacles.

Internal Control Systems and Their Adequacy

The Company maintains robust internal control systems that are appropriate for its size and nature of business. These systems are designed to ensure the safeguarding of assets and prevent unauthorized use or disposition. They also ensure that all transactions are properly authorized, accurately recorded, and reported in accordance with the Companys policies and procedures. The adequacy of the internal control systems has been reviewed by the Audit Committee and management, resulting in necessary improvements being implemented 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. Guided by our core values of teamwork, trust, and action, we strive to maintain strong, positive relationships with our workforce.

We are proud to have received the ‘Great Place to Work certification, which affirms our dedication to fostering an exceptional work culture, supporting employee growth, and ensuring a positive workplace environment. Throughout the year, we cultivate a culture of collaboration and mutual respect, promoting harmonious employee relations at all levels. Initiatives such as the ‘Miracle Milestone award ceremony for invaluable contribution of employees for outstanding performance for commissioning of Vagra IPP Projects.

Additionally, our extensive training programs, both internal and external, equip employees with the tools necessary to excel in their roles. A key recent initiative was KP Group partnering with IIM Ahmedabad for Leadership Excellence Program to groom next-generation leaders through immersive executive sessions.

Cautionary statement

Statements in the Management Discussion and Analysis and other parts of the report describing the Company’s 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 Company’s 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.