KPI Green Energy has continued its impressive growth trajectory, with SBI Securities maintaining a Buy rating and projecting a target price of INR 615, representing an upside potential of approximately 35.2% from the current market price of INR 455 as of 21 November 2025.
The optimism stems from the company’s strong second-quarter FY26 performance, where consolidated revenue, EBITDA, and PAT surged 76.4%, 68.7%, and 56.2% year-on-year (YoY), respectively, reaching INR 634 crore, INR 226 crore, and INR 109 crore.
The growth was predominantly driven by the Captive Power Producer (CPP) segment, which expanded by 84.2% YoY on the back of solid execution despite seasonal headwinds. Meanwhile, the Independent Power Producer (IPP) vertical registered a modest 15.6% YoY growth, as monsoon season typically dampens generation output.
Cumulatively, power generation in the first half of FY26 touched 12.8 crore units, surpassing the 12.3 crore units produced in the entirety of FY25. The brokerage anticipates power sales to exceed 80 crore units for the full fiscal year.
KPI Green Energy Order Book and Expansion Strategy
As of September 2025, KPI Green Energy’s order book stood at a robust 3.08 GW, comprising 1,222 MW in IPP and 1,861 MW in CPP segments. CPP orders are slated for execution within the next 12–15 months, while IPP projects are targeted for completion by FY27.
The CPP vertical alone represents a potential order value of around INR 6,500 crore, based on an estimated INR 3.5 crore per MW. The firm aims to achieve 1 GW of operational IPP capacity by FY26 and 1.7 GW by FY27, which could generate annual revenues of roughly INR 1,000 crore.
Additionally, the company is expanding its geographic presence beyond its traditional stronghold of Gujarat into Maharashtra, Rajasthan, and Odisha, thereby broadening its national footprint in the renewable energy landscape.
Strategic Win: SJVN Contract Boosts Outlook
Adding to its momentum, KPI Green Energy recently announced the securing of an INR 696.5 crore contract from SJVN, a Government of India enterprise, for the development of a 200 MW (AC) solar project at the GIPCL Renewable Energy Park in Khavda, Gujarat. The agreement encompasses supply, EPC (engineering, procurement, and construction), and a three-year operation & maintenance (O&M) commitment, reinforcing KPI Green’s credentials as a comprehensive turnkey EPC provider.
Under the contract, the company will oversee the design, erection, installation, testing, commissioning, and performance validation of the solar facility, followed by O&M services post-commercial operation date.
Chairman and Managing Director Faruk G. Patel remarked that this partnership with SJVN “underscores KPI Green Energy’s credibility and proven ability to deliver large-scale renewable energy projects,” further cementing its position among India’s leading solar EPC players.
SBI Securities Bullish on KPI Green Energy: Financials and Valuation
According to SBI Securities, KPI Green Energy’s financial performance remains stellar. Consolidated net sales are projected to climb from INR 1,735 crore in FY25 to INR 4,148 crore by FY27, representing a 64.2% CAGR. Net profit is forecast to expand from INR 325 crore to INR 738 crore over the same period, while EPS is expected to grow from INR 16.2 in FY25 to INR 36.1 in FY27.
At the prevailing market price, the stock trades at 20.8x FY26E EPS and 12.8x FY27E EPS. The brokerage has valued the company at 17x its FY27E EPS, implying a KPI Green Energy target price of INR 615, translating to an upside of 35.2% from current levels.
Conclusion
SBI Securities’ bullish stance on KPI Green Energy reflects the company’s blend of operational excellence, strong order visibility, and sectoral growth prospects. With an expanding EPC portfolio, rising IPP capacity, and consistent earnings momentum, KPI Green Energy remains a standout mid-cap play in India’s fast-evolving solar energy market.
In short: solid fundamentals, strategic execution, and sector tailwinds justify SBI Securities’ Buy recommendation — and its 35% upside call could well be the spark that keeps KPI Green shining bright in the renewable energy space.
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