KPI Green Energy To Ramp Up IPP Revenue Contribution To 25%, Says Group CMD

KPI Green Energy Ltd. aims to ramp up the revenue contribution from its independent power producer (IPP) projects to 25% from the existing 17%, according to Dr. Faruk G. Patel, chief managing director of KP Group.

Speaking to NDTV Profit, Patel said that IPP projects contribute around 17% to its revenue, whereas the rest comes from captive power plant (CPP) projects. However, this ratio will start to change from FY27.

"In IPP, you are getting revenue only after the commercial operation date. So in IPP, the capex will be high. In CPP, you don't require any money, but your topline will be there," he said.

"But the product mix is done in such a way that you will get the depreciation from the IPP, and you are diluting your tax portion from the CPP, whatever you earn. So, they are managing it in a way that by 2028, your IPP will be 25% and the CPP will be 75%. This is how the product mix and the revenue stream will be," he added.

KPI Green Energy has guided to grow at 60-70% in FY25, and Patel is confident that this trajectory will continue till FY30.

“We are very confident we will do the same growth till 2030,” he said.

Patel believed that, though Ebitda may dip to around 14-15% from the current guidance of 17%, it will still outperform the previous year's figures in absolute terms through FY30.

KPI Green Energy recently signed a Memorandum of Understanding (MoU) with the Government of Rajasthan for the development of hybrid solar and wind power projects in Ramgarh, Jaisalmer.

Commenting on the development, Patel said that the MoU is a strategic step in its efforts to achieve the targeted 10-gigawatt annual capacity target by 2030.

"We are reaching our goal of 10 gigawatts, which is not possible from one state. So, we are also exploring opportunities in Rajasthan, Madhya Pradesh, Maharashtra, and Andhra Pradesh," Patel noted.

He said that the company expects at least 2-3 gigawatts from Rajasthan in the near future.

Shares of KPI Green Energy closed 1.34% lower at Rs 785.6 apiece on the NSE in comparison to the benchmark Nifty declining 0.11% to 23,727.65 points.