Synopsis: KPI Green Energy Limited’s subsidiary, Sun Drops Energia Private Limited, has received an LoI from GUVNL to develop 445 MW / 890 MWh of standalone BESS projects across Gujarat.
The shares of one of the leading renewable energy company, specializing in the development, operation, and maintenance of renewable power facilities, are in focus upon receiving LoI for BESS projects from Gujarat Urja Vikas Nigam Limited.
With a market capitalization of Rs. 9,818.71 crores on Monday, the shares of KPI Green Energy Limited rose by upto 4.4 percent, making a high of Rs. 506.80 per share compared to its previous closing price of Rs. 485.40 per share.
What Happened
Sun Drops Energia Private Limited, a subsidiary of KPI Green Energy Limited, has received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for developing 445 MW / 890 MWh Standalone Battery Energy Storage System (BESS) projects at multiple locations in Gujarat.
The LOI was awarded through a tariff-based competitive bidding process under Phase-VII, with support from Viability Gap Funding (VGF) via the Power System Development Fund (PSDF). This project marks two important milestones for the Group and its first utility-scale IPP BESS project and its first BESS project awarded by a government authority.
With this award, the Group officially enters the utility-scale battery energy storage segment, adding BESS as a new asset class alongside its existing solar, wind, and hybrid renewable energy portfolio and highlights the Company’s growing capability to execute large-scale, policy-supported clean energy infrastructure projects and strengthens its position in the evolving renewable energy ecosystem.
The company’s revenue rose by 76 percent from Rs. 360 crore in September 2024 to Rs. 634 crore in September 25. Meanwhile, Net profit rose from Rs. 70 crore to Rs. 117 crore during the same period.
The company shows healthy financials with a ROCE of 17.5% and ROE of 19.7%, supported by a manageable debt-to-equity ratio of 0.96. Its valuation is reasonable, trading at a P/E of 24.6 versus the industry average of 27.6, and a low PEG ratio of 0.26 indicates attractive growth potential.
It has delivered strong performance with 118% profit CAGR over the last five years and maintains a solid ROE track record, averaging 24.9% over the past three years, reflecting efficient capital use and consistent profitability.
KPI Green Energy Limited is one of the leading renewable energy company based in Gujarat, India, and is part of the KP Group. Incorporated in 2008, the company develops, owns, and operates solar and hybrid (solar-wind) power plants under the brand name ‘Solarism’.
As of H1FY26, KPI Green Energy boasts over 3.08 GW of orders in hand and an installed capacity exceeding 1.07 GW. The company holds a land bank of 6,680+ acres. Looking ahead, KPI Green Energy has set an ambitious target to achieve over 10 GW of capacity by 2030.
KPI Green Energy has attracted marquee investors, including prominent financial institutions such as BlackRock, Vanguard, Quadrature Capital, Goldman Sachs, Eminence Global Fund, Motilal Oswal, HSBC, FRTIB and others.
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