KPI Green Energy Ltd Management Discussions

Economic overview

Global economy

The global economy in 2026 is navigating the crosscurrents of war and technology. Global growth is projected at 3.0% for 2026 and 3.4% for 2027, down from the average of 3.5% observed in 2024-25. Two opposing forces are shaping economic activity: the negative supply shock induced by the war in the Middle East, and the positive momentum of the global technology cycle, driven by advances in artificial intelligence (AI) and its adoption.

The impact varies widely across countries, depending on their exposure to the conflict and their position in the technology value chain. Energy prices remain roughly 25% higher than prewar levels, with the average petroleum spot price projected at about USD 89 per barrel for 2026, an increase of 32% over 2025. Global headline inflation is expected to rise from 4.1% in 2025 to 4.7% in 2026, before declining to 3.9% in 2027, indicating that the disinflation trend in place since early 2024 has stalled. World trade volume growth is projected to slow sharply from 5.0% in 2025 to 3.5% in 2026, before recovering to 4.3% in 2027, reflecting earlier front-loading of shipments, the drag from tariffs, and the gradual adjustment of supply chains.

Regionally, advanced economies are projected to grow by 1.7% in 2026 and 1.8% in 2027. The United States is expected to grow by 2.3% in 2026, supported by fiscal policy, accommodative financial conditions, and continued technology-related business investment, while the Euro Area at 0.9%, Japan at 0.6%, and the United Kingdom at 1.0% face subdued prospects owing to higher energy prices and weak momentum. Emerging market and developing economies (EMDEs) are forecast to grow by 3.8% in 2026 before recovering to 4.5% in 2027. Chinas growth is projected to slow to 4.6%, as higher oil prices, protracted uncertainty, and structural headwinds weigh on activity, whereas India remains among the fastest-growing major economies. Risks to the economic outlook are more balanced than in April but still tilted to the downside. Renewed conflict in the Middle East could extend commodity price volatility, disrupt supply chains, and weigh on financial conditions; trade fragmentation could accelerate; and a correction in technology-driven expectations could trigger sharp repricing in equity markets, with eroded policy buffers amplifying any shock. Upside risks stem from a swifter-than-expected normalization in energy markets, stronger technology investment, and durable cooperation that lowers trade barriers.

On policy, the IMF emphasizes restoring price stability, supported by clear communication, central bank independence, and strong financial oversight, while rebuilding fiscal buffers through temporary and targeted support that preserves price signals. The Fund also cautions that energy-related fiscal support should remain targeted and be withdrawn as the shock abates so that price signals are preserved. Significantly for the energy sector, the IMF underlines that faster adoption of renewable and energy-efficient technologies can strengthen energy security, contain vulnerability to future price shocks, and support climate goals. Structural reforms that promote energy security, AI readiness, and domestic rebalancing, alongside strengthened international cooperation, are viewed as essential for lifting medium-term growth.

In summary, the global economy in 2026 is characterized by slower and uneven growth, renewed inflationary pressures, and elevated uncertainty, and the clean energy transition has emerged within it as both a resilience imperative and a durable investment opportunity.

Source: IMF, World Economic Outlook Update (July 2026)

Indian economy

India retains its position as the fastest-growing major economy in a global environment shaped by conflict, elevated energy prices, and technology-led divergence. 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. Growth is projected in the range of 6.4–6.6% for FY27 and 6.7–7.2% for FY28, supported by strong momentum in private consumption and services activity. On a calendar-year basis, growth is projected at 7.0% for 2026 and 6.4% for 2027. This trajectory stands well above the 3.8% average projected for emerging market and developing economies in 2026 and Chinas projected 4.6%, underscoring the breadth of Indias domestic demand engine. Forecast revisions through the year have also favored 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. Global headline inflation is expected to rise in 2026 on higher energy and food prices before easing through 2027, and world trade growth is set to slow before recovering. South Asia, anchored by India, is projected to remain the fastest-growing developing region, with regional growth of 6.3% in 2026 and 6.9% in 2027, and emerging and developing Asia led by India, is expected to continue outpacing every other region over the forecast horizon.

Indias macroeconomic position nonetheless warrants careful navigation of the current commodity cycle. As a large importer of crude oil and natural gas, India is exposed to the elevated energy prices resulting from the war, terms-of-trade deterioration across oil-importing Asian economies has worsened inflation outlooks and placed pressure on exchange rates, prompting an upward repricing of expected policy paths. Elevated geopolitical uncertainty and commodity price volatility could also affect external demand and investment flows into emerging markets. At the same time, the rising share of renewable energy in generation and the declining energy intensity of output have made economies more resilient to energy price shocks than in earlier episodes, a dynamic that has been an important factor in the global economys better-than-feared performance. The medium-term picture remains structurally powerful: the aspiration of a developed economy by 2047 implies sustained expansion in manufacturing, urbanisation, infrastructure, and per capita energy consumption. Rapidly rising electricity demand and the national priority of energy security directly underpin the multi-year investment cycle in renewable energy discussed in the sections that follow.

In conclusion, India enters FY27 with strong momentum and improving visibility. With growth of 6.4–6.6% projected for FY27, rising toward 6.7–7.2% in FY28, India is expected to remain the principal engine of global growth.

Industry overview

Indias Renewable Energy Landscape

FY26 was a landmark year for Indias energy transition. Total non-fossil fuel installed capacity reached 283.46 GW as on March 31, 2026, comprising 274.68 GW of renewable energy, including large hydro, and 8.78 GW of nuclear power, within a total installed power capacity of 520.5 GW as on January 31, 2026. India achieved the milestone of 50% of its cumulative installed electric power capacity from non-fossil fuel sources in June 2025, five years ahead of its 2030 target under the Nationally Determined Contribution (NDC) to the Paris Agreement. Renewable energy capacity excluding large hydro has expanded from 471 GW in FY16 to 223.3 GW in FY26, reflecting a compound annual growth rate (CAGR) of 16.8%.

The renewable mix is led by solar power at 150.26 GW, followed by wind at 56.09 GW, large hydro at 51.41 GW, bio energy at 11.75 GW, and small hydro at 5.17 GW. Capacity addition in FY26 was unprecedented: 55.3 GW of non-fossil capacity was added during the year, the highest increase recorded in any year and nearly double the previous high of 29.5 GW achieved in FY25. Solar accounted for 44.6 GW of this addition, while wind recorded its highest-ever annual addition of 6.05 GW, up 46% over the 4.15 GW added in the previous year. Overall, renewable energy capacity has grown 3.59 times since March 2014.

Generation trends mirror the capacity build-out. Indias total power generation reached 1845.92 billion units (BU) in FY26, with the share of non-fossil sources at 29.2%. Generation from renewable sources excluding large hydro rose 21% to 308.83 BU, with solar generation growing 20.4% to 173.525 BU and wind generation growing 27.3% to 106.089 BU. In July 2025, renewables met 51.5% of the countrys total electricity demand of 203 GW, the highest-ever share of renewables in electricity generation. Demand indicators remain equally strong: India met an all-time-high peak demand of 242.49 GW during FY26 with a national energy shortage of just 0.03%, while peak demand touched a record of about 271 GW in May 2026.

Indias global standing strengthened during the year. As per IRENAs Renewable Energy Statistics 2026, India ranks 3rd globally in renewable energy installed capacity, with 250.52 GW as of December 2025, moving ahead of Brazil, and stands 4th in installed wind power capacity. Per capita electricity consumption has risen 52.6% since 2013-14 to 1,460 kWh in 2024-25, yet continues to offer substantial headroom as incomes rise, indicating a long runway of electricity demand ahead.

Indias resource base can support multi-decade expansions. NISEs scientific assessment of September 2025 estimates feasible ground-mounted solar potential at 3,343 GWp, against the earlier 2014 estimate of 749 GWp, while its 2026 study maps an additional 102 GWp of floating solar potential across reservoirs. NIWE estimates wind potential at 1,164 GW at 150 metres above ground level, and the Ministry of Power estimates pumped storage potential of about 258 GW, of which only around 7 GW has been developed. With installed renewable capacity at 274.68 GW, India has so far tapped only a small fraction of its commercially exploitable renewable resource.

Policy direction remains firmly anchored to the target of 500 GW of installed electricity capacity from non-fossil sources by 2030, announced at COP26. To evacuate this capacity, the National Electricity Plan envisages transmission investment of Rs9.16 lakh crore by 2032, designed for a peak demand of 458 GW, alongside about 345 GW of declared Renewable Energy Potential Zones that enable advance transmission planning and provide visibility to developers and investors.

Indias Renewable Sector: A Structural Upcycle

Indias renewable sector is transitioning from an early scale-up phase into a structural, multi-year upcycle, underpinned by record demand, firming policy, and a decade of visible pipeline. The CEAs Generation Adequacy Plan (March 2026) projects all-India peak demand to rise from 289 GW in FY27 to 459 GW by FY36, a CAGR of 5.58%, with electrical energy requirement growing at 6.41% annually to 3,365 BU. To serve this demand reliably, total installed capacity is projected to nearly double from 520.5 GW to 1,121 GW by FY36, with non-fossil capacity of about 786 GW constituting approximately 70% of the total, as against 52% in January 2026. Solar is the workhorse of this build-out, expanding from 176 GW in FY27 to 509 GW by FY36, the largest incremental addition of any source, with wind growing from 63 GW to 155 GW.

Demand tailwinds are reinforced by structural policy support. The Renewable Consumption Obligation (RCO) framework notified by the Ministry of Power in September 2025 mandates renewable consumption of 35.95% in FY27, rising to 43.33% by 2029-30, for distribution licensees as well as open access and captive consumers. The GST rate on renewable energy devices was reduced from 12% to 5% effective September 22, 2025, lowering project costs, while CERCs June 2025 regulations provide a defined ISTS charges waiver trajectory for renewable energy and storage projects. The Green Energy Corridor received about Rs787 crore during FY26 for evacuation infrastructure, and new market instruments, including Virtual Power Purchase Agreement guidelines, a Contract for Difference pilot for 500 MW, and the compliance carbon market under the Carbon Credit Trading Scheme, have deepened offtake avenues.

Energy storage forms the backbone of the next phase. The National Electricity Plan projects a BESS 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. To catalyse this, the Government has approved Viability Gap Funding of Rs5,400 crore for 30 GWh of standalone BESS at Rs18 lakh per MWh, within VGF schemes targeting 43,220 MWh of storage addition. Alongside the Viksit Bharat vision of a USD 30 trillion economy by 2047, these demand, policy, and storage vectors provide the sector visibility of a decade-long growth runway.

Indias solar energy sector

Indias solar energy sector has emerged as the fastest-growing and most dynamic renewable energy market globally. In FY26, the sector delivered its strongest year on record, crossing the 150 GW milestone of cumulative installed capacity, driven by the countrys immense solar potential, decisive policy support, a rapidly expanding domestic manufacturing base, and accelerating adoption across utility-scale, distributed, and commercial and industrial (C&I) segments.

India is endowed with vast solar resources, with average irradiance ranging from 3.5 to 5.5 kWh per square metre per day across much of the country. NISEs scientific assessment estimates feasible ground-mounted solar potential of 3,343 GWp using only about 6.69% of identified feasible wasteland, far above the earlier 2014 estimate of 749 GWp.

Remarkable Growth and Capacity Expansion in FY26

Indias cumulative installed solar capacity surged to 150.26 GW as on March 31, 2026, up from 105.65 GW in March 2025. The 44.61 GW added during FY26, against a target of 34 GW, was the highest-ever annual solar addition, almost double the previous record of 23.83 GW set in FY25, and included the highest-ever addition in a single month of 6.66 GW. As of March 2026, this capacity stood distributed as:

110.43 GW from utility-scale ground-mounted solar projects

25.73 GW from rooftop solar installations

14.10 GW from PM-KUSUM and off-grid solar systems

Distributed solar was a defining theme of the year, contributing 16.31 GW, about 36% of the total addition, comprising 8.71 GW of rooftop solar and 7.67 GW under PM-KUSUM. The C&I segment, including captive projects, contributed about 16 GW, roughly 34% of the years solar additions, reflecting the steepening economics of captive renewable supply for industry.

Expansion of Domestic Solar Manufacturing

Indias solar module manufacturing capacity expanded from about 74 GW in March 2025 to about 172 GW as on March 31, 2026, an addition of roughly 98 GW in a single year, and from just 23 GW in 2014. Eight of the twelve manufacturers under the Production Linked Incentive (PLI) scheme for high-efficiency modules have commenced production across the value chain, and the ALMM pathway for ingot-wafer manufacturing has been announced for June 2028, deepening vertical integration of the supply chain. Growing self-reliance is visible in trade data: imports of solar modules fell about three-fold, from USD 2,152 Million in FY25 to USD 758 Million in FY26 (till January 2026). Anti-dumping and countervailing duties on solar glass were imposed during the year, while customs duty exemptions on key raw materials for encapsulant and interconnect manufacturing were extended.

Policy Support and Government Initiatives

The Government continues to play a pivotal role in accelerating the solar energy sector through a comprehensive policy framework and targeted incentives. Key initiatives during FY26 include:

1. GST Reduction on Renewable Energy Devices

The GST rate on renewable energy devices and parts used in their manufacture was reduced from 12% to 5% with effect from September 22, 2025, reducing the landed cost of solar equipment for project developers, DISCOMs, rooftop installers, and captive users.

2. Waiver of Interstate Transmission System (ISTS) Charges

CERCs Sharing of Inter-State Transmission Charges and Losses (Fourth Amendment) Regulations, 2025, issued in June 2025, provide a defined ISTS waiver trajectory for renewable energy and BESS projects, including extensions for delays not attributable to the generator, supporting inter-state renewable power sales.

3. Renewable Consumption Obligation (RCO)

The Ministry of Powers notification of September 27, 2025 established a unified RCO framework under the Energy Conservation Act, subsuming earlier RPO targets. The trajectory rises from 33.01% in FY26 to 43.33% by 2029-30, with a specific distributed renewable energy sub-target, ensuring assured long-term demand for renewable power.

4. PM Surya Ghar: Muft Bijli Yojana

The residential rooftop scheme scaled sharply, with 18.71 lakh installations during FY26, about twice the previous year, benefiting 22.7 lakh households and taking cumulative installations to 34.3 lakh, supported by collateral-free soft loans and a city accelerator programme across 41 cities.

5. PM-KUSUM

A record 13.94 lakh agricultural pumps were installed or solarised during FY26, with 7,672 MW of capacity added and cumulative capacity reaching 13,112 MW. The scheme, extended to March 31, 2027, has saved an estimated 12.59 Million tonnes of CO2 emissions.

6. Green Energy Corridor

Seven states have completed Green Energy Corridor Phase-I. Around Rs787 crore was released during FY26 for renewable evacuation infrastructure, and about 345 GW of Renewable Energy Potential Zones have been declared beyond the 500 GW transmission plan, enabling advance planning for developers and investors.

7. Quality Standards and Import Monitoring

The revised Quality Control Order 2025 for solar PV modules, storage batteries, and inverters was notified in January 2025, and the REEIMS portal launched in October 2025 enables real-time monitoring of renewable equipment imports, strengthening quality assurance and supply chain transparency.

Actual Solar Site Image - Tanchha, Bharuch

Economic, Environmental, and Social Implications

The rapid growth of Indias solar energy sector has far-reaching implications:

Energy Security and Environmental Sustainability

By expanding solar capacity, India is reducing dependence on imported fossil fuels, thereby lowering greenhouse gas emissions and air pollution while conserving foreign exchange. This transition aligns with Indias commitments under the Paris Agreement, including:

- Cutting the emissions intensity of GDP by 45% by 2030

- Achieving 50% non-fossil installed capacity by 2030, a milestone already achieved in June 2025

- Targeting net-zero carbon emissions by 2070

Socio-Economic Benefits

The solar sector is a significant engine of employment across manufacturing, installation, and operations and maintenance. During FY26, 124,793 candidates were trained across solar, wind, and green hydrogen under MNREs skill development programmes, while the National Green Hydrogen Mission alone is expected to create over 6 lakh jobs by 2030. Distributed solar under PM Surya Ghar and PM-KUSUM is simultaneously reducing household power bills and strengthening rural incomes.

Future Outlook and Capacity Targets

To meet the 500 GW non-fossil target by 2030, India needs to sustain solar additions at or above the FY26 run-rate. The CEAs Generation Adequacy Plan projects solar PV additions of 30-40 GW per annum through the coming decade, taking installed solar capacity to 509 GW by FY36, about 45% of the projected 1,121 GW capacity mix.

As per the CEAs Generation Adequacy Plan (March 2026), Indias solar PV capacity is projected to rise from 176 GW in FY27 to 509 GW by FY36, supported by energy storage capacity of 174 GW/888 GWh, providing a decade of visible deployment pipeline.

Key Growth Drivers and Industry Trends

Record Power Demand and Cost Competitiveness

India met an all-time-high peak demand of 242.49 GW in FY26, and peak demand touched about 271 GW in May 2026. With per capita consumption of 1,460 kWh still well below the levels of industrialised economies, electrification, urbanisation, manufacturing, and emerging loads such as data centres provide a long runway of demand. The GST reduction and declining balance-of-system costs continue to improve solars cost competitiveness against conventional power.

Geographic Advantage with Abundant Solar Irradiance

Indias location within the solar belt ensures abundant irradiance of 3.5 to 5.5 kWh per square metre per day across most regions. States such as Rajasthan and Gujarat combine high insolation with large contiguous land parcels, translating into higher capacity utilisation and competitive tariffs, and providing a natural foundation for continued utility-scale expansion.

Government Commitments and Climate Goals

India has set ambitious environmental and clean energy targets, including:

- Achieving 500 GW of non-fossil installed capacity by 2030

- Reducing the emissions intensity of GDP by 45% by 2030

- Producing 5 Million tonnes of green hydrogen annually by 2030, supported by about 125 GW of renewable capacity

- Attaining net-zero carbon emissions by 2070

These commitments drive sustained policy support and investment in solar energy.

Actual Solar Site Image - Saring, Vadodara

Emerging Segments: Floating Solar and Energy Storage

NISEs first national assessment, released in June 2026, maps floating solar potential of about 102 GWp across 682 technically feasible reservoirs covering nearly 1,946 square kilometres, led by Maharashtra (16.28 GWp), Madhya Pradesh (14.89 GWp), and Karnataka (13.69 GWp), opening a new avenue that conserves land and reduces evaporation. In parallel, storage-backed solar is becoming mainstream: BESS requirement is projected at 236.22 GW by 2031-32, supported by Viability Gap Funding of Rs5,400 crore for 30 GWh, enabling firm and dispatchable renewable supply.

Green Hydrogen Linkage

The National Green Hydrogen Mission, with an outlay of Rs19,744 crore, targets 5 Million tonnes of annual green hydrogen production by 2030, entailing about 125 GW of dedicated renewable capacity, over Rs8 lakh crore of investments, and 6 lakh jobs. Record price discovery during FY26, including green ammonia at Rs49.75 per kg under SECI auctions, signals the missions transition from framework to execution, creating a major new demand centre for solar power.

Wind-Solar Hybrid and Round-the-Clock Supply

Hybridisation of solar with wind optimises land and transmission utilisation and flattens the generation profile. Indias wind potential of 1,164 GW at 150 metres above ground level, together with the highest-ever annual wind addition of 6.05 GW in FY26, supports rapid growth in hybrid configurations. Procurement is increasingly shifting toward firm and dispatchable renewable energy and round-the-clock formats that pair solar and wind with storage, a structural advantage for developers with proven hybrid capabilities.

Conclusion

Indias solar energy sector crossed defining thresholds in FY26: 150 GW of installed capacity, the highest-ever annual addition of 44.61 GW, a more-than-doubling of module manufacturing capacity to about 172 GW, and record distributed adoption. The sector now rests on three mutually reinforcing pillars: assured demand through the RCO trajectory and rising power consumption; deepening domestic manufacturing; and a policy architecture that lowers costs and de-risks investment. With solar projected to anchor Indias journey to 500 GW of non-fossil capacity by 2030 and 1,121 GW of total installed capacity by FY36, the sectors expansion will continue to strengthen energy security, support climate commitments, and create employment, positioning solar energy as the backbone of the countrys clean energy future.

Source: MNRE & PIB (April 2026); NISE; CEA; Ministry of Power; BEE; CERC; SECI; NIWE

Company Overview

KPI Green Energy Limited (KPIGEL) is committed to driving the transition towards sustainable, renewable, and reliable energy systems. As a proud member of the esteemed KP Group, we leverage our extensive expertise across the solar, wind, hybrid, and battery energy storage (BESS) segments to deliver innovative and dependable clean energy solutions.

Operating under the brand name Solarium, KPIGEL focuses on the development, construction, ownership, operation, and maintenance of renewable energy projects that address the growing energy needs of India while securing a cleaner, greener tomorrow. Our efforts contribute directly to Indias ambition of achieving a net-zero carbon future by expanding clean power generation capacity.

As an Independent Power Producer (IPP), we have energized 965+ MW of capacity within a total IPP portfolio of 2.51 GW. Our Captive Power Producer (CPP) vertical, which provides renewable energy solutions tailored to the specific needs of clients, has an installed base of 660+ MW within a cumulative portfolio of 3.69+ GW. Over its lifetime of 18 years, KPIGEL has commissioned 1.62+ GW of renewable energy capacity, and currently holds a cumulative portfolio, including projects under execution, of 6.26+ GW.

Our team is dedicated to operational excellence, leveraging a centralised Network Operation Centre serving 285+ clients, in-house robotic module cleaning, and newly received inter-state and intra-state power trading licences to optimize performance across the portfolio. With a strategic target of reaching 10 GW in capacity at the Group level by 2030, KPIGEL is expanding its footprint to deliver sustainable, cost-effective energy solutions across India and select international markets.

Headquartered in Gujarat, KPIGEL is a leading renewable energy producer, actively contributing to global climate change mitigation and advancing environmental sustainability.

FY26 Performance Discussion

FY26 was another record year for KPI Green Energy Limited, marked by exceptional growth and strong execution across all key financial metrics. Our Total Income rose by 56% YOY, from Rs1,755 crore in FY25 to Rs2,742 crore in FY26, underscoring the scalability of our business model and the strength of our execution capabilities.

This robust revenue performance translated into equally strong profitability. EBITDA increased by 73% to Rs1,006 crore, compared to Rs581 crore in the previous year, with the EBITDA margin expanding from 33% to 37%, reflecting enhanced operating efficiency and a rising share of annuity IPP revenues. Profit After Tax (PAT) grew by 57% to Rs509 crore, up from Rs325 crore in FY25, while Cash Profit increased by 74% to Rs788 crore.

This performance reflects our strategic clarity, disciplined execution, and steadfast commitment to long-term value creation. Since FY21, our Total Income, EBITDA, and PAT have compounded at 92%, 73%, and 104% per annum respectively, reaffirming our position as one of Indias fastest-growing renewable energy companies.

Financial ratios

Details of significant changes (i.e., a change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios, along with detailed explanations therefor, include:

Sr. No.	Particulars	FY26	FY25	YoY Change	Comments
1	Debtors Turnover (Days)	98.57	85.36	15.47%	Since the variance in the ratio is less than 25%, reasons for change is not given
2	Inventory Turnover (Times)	1.35	3.24	-58.38%	Inventory Turnover Ratio is decreased due to increase in average Inventory as compared to last year
3	Interest Coverage Ratio	4.88	6.78	-28.10%	Interest Coverage ratio is decreased due to the increase in Interest as compared to last year.
4	Current Ratio	1.51	1.76	-14.47%	Since the variance in the ratio is less than 25%, reasons for change is not given
5	DE Ratio	1.55	0.48	221.92%	Debt Equity ratio is increased due to the increase in debt as compared to last year
6	Operating Profit Margin (%)	39.11%	27.93%	40.02%	Operating margin is increased due to the increase in operating profit as compared to last year
7	Net Profit Margin (%)	19.36%	15.70%	23.33%	Since the variance in the ratio is less than 25%, reasons for change is not given
8	Return on Equity	17.37%	18.39%	-5.51%	Since the variance in the ratio is less than 25%, reasons for change is not given

Outlook

Looking ahead, we remain confident of our growth visibility, anchored by a work-in-progress pipeline of 4.64+ GW, power evacuation capacity of 3.59+ GW, and extensive land holdings totalling 7,210+ acres.

The years landmark order wins, including 565 MW/1130 MWh of standalone BESS projects, 450 MW of wind projects, a 142 MW floating solar EPC mandate, and a 113 GW balance-of-system package, along with our newly received power trading licences, diversify our platform across technologies and markets. Further, credit ratings of A (Stable) and AA+(CE) for our green bond issue support competitive financing for this pipeline.

Our ambitious Group target of surpassing 10 GW capacity by 2030 remains a central focus, and with proven project execution capabilities and favourable industry tailwinds, we are fully prepared and equipped to achieve our growth objectives.

Opportunities & Threats

Opportunities

1. Industrial and C&I Demand: The C&I segment, including captive projects, contributed about 16 GW of Indias FY26 solar additions, as industries adopt renewables to reduce energy costs and meet ESG goals. This presents a multi-decade opportunity for the Company.

2. Structural Capacity Upcycle: India targets 500 GW of non-fossil capacity by 2030, with total installed capacity projected to reach 1,121 GW by FY36, which will be led by solar.

3. Energy Storage and Firm Power: A BESS requirement of 236.22 GWh by 2031-32, VGF support, and rising FDRE/RTC tenders open a large adjacent market where we already hold commercial orders.

4. Power Trading Platforms: Our inter-state and intra-state trading licences enable participation in exchanges, bilateral contracts, and the emerging carbon market, enhancing realisations and offtake flexibility.

5. Emerging Segments: Green hydrogen (5 Million tonnes by 2030 with about 125 GW of renewables), 102 GWp of floating solar potential, offshore wind, and pumped storage create new growth engines for the Company.

6. Supportive Policy Regime: The GST reduction to 5%, the ISTS waiver trajectory, an RCO of 43.33% by 2029-30, and accelerated depreciation benefits strengthen project economics.

7. Record Power Demand: Peak demand touched about 271 GW in May 2026 and is projected to reach 459 GW by FY36, ensuring durable demand for new capacity.

8. ESG Compliance: Growing emphasis on ESG compliance, particularly among Export Oriented Units and listed corporates, continues to accelerate adoption of clean energy solutions.

Threats

1. Supply Chain Disruptions: Upstream supply chain bottlenecks and input cost volatility can delay projects and increase costs, despite the expanding domestic manufacturing base.

2. Land and Transmission Constraints: Securing contiguous land parcels and timely grid connectivity and evacuation infrastructure remains a significant execution hurdle for the sector.

3. Market Competition: Intense competition from established power producers and new entrants in competitive bidding can exert pressure on tariffs and returns.

4. Climate Dependency: Operations are influenced by seasonal and climatic variations, introducing unpredictability in energy generation.

5. Project Risks: The development and construction of solar, hybrid, and BESS projects involve inherent execution, financing, and counterparty risks.

6. Regulatory Dynamics: Frequent changes in government policies, duties, and regulations can complicate project execution and delay timely approvals.

Internal Control and Adequacy

The Company has instituted a comprehensive internal control framework, commensurate with the size and nature of its operations, designed to safeguard all assets against unauthorized use or disposal. The framework enforces strict authorization, thorough documentation, and transparent reporting of all transactions, while promoting optimal resource utilization, operational efficiency, and full compliance with applicable regulations. Internal audits are conducted regularly, and the auditors have confirmed the adequacy and effectiveness of our internal control systems.

Human Resource Development and Industrial Relations

We place strong emphasis on building the expertise, skills, and knowledge of our workforce. Dynamic personnel policies help us attract top talent, integrate them smoothly, and encourage continuous development through structured internal and external training programs. During the year, KP Group and IIM Ahmedabad concluded an 11-month Leadership Excellence Programme, grooming 28 future energy leaders who are now part of the IIM Ahmedabad alumni network.

Our commitment extends beyond skill development to employee wellbeing and safety. We maintain stringent environmental, health, quality, and safety standards, overseen by a dedicated EHS function focused on risk mitigation, accident prevention, and a culture of safety. As on March 31, 2026, the Companys total manpower strength stood at 769+, including 371+ engineers, 154+ professionals, and a 65+ member in-house R&D team, drawn from prestigious institutions such as the IIMs, IITs, ICAI, ICSI, and ICMAI.

Risk Management

Risk management is a core aspect of our operations, driving a systematic approach to identifying, analysing, and mitigating business risks, including market, regulatory, execution, and climate-related risks. We proactively assess existing and emerging risks, evaluate their potential impact, and implement effective mitigation strategies. A robust risk management system continuously monitors business and operational risks, with each key function responsible for risks within its domain. The Board of Directors provides oversight and strategic guidance, ensuring risks are appropriately identified, evaluated, and managed across all organizational levels.

Cautionary Statement

Certain statements in this report regarding the Companys objectives, forecasts, assessments, and expectations constitute forward-looking statements as defined under applicable securities laws and regulations. Actual results may differ materially from those expressed or implied in these statements due to various factors, including economic conditions affecting supply and demand, pricing fluctuations in domestic and international markets, competitive dynamics, changes in government regulations, tax laws, and other regulatory requirements, as well as unforeseen circumstances.