Synopsis:
KPI Green Energy secured ₹3,200 crore from SBI to develop 1+ GWp renewable projects in Gujarat, including solar and hybrid power. The projects are backed by 25-year PPAs with GUVNL and will follow a 75:25 debt-equity funding model.
The shares of one of the leading renewable energy company, specializing in the development, operation, and maintenance of renewable power facilities, jumped by upto 5 percent upon securing Rs. 3,200 Crore Funding for Solar & Hybrid Projects in Gujarat.
With a market capitalization of Rs. 9,328.31 crores on Thursday, the shares of KPI Green Energy Limited rose by upto 5.1 percent, making a high of Rs. 488.75 per share compared to its previous closing price of Rs. 464.65 per share.
What happened
KPI Green Energy Limited, engaged in the development, operation, and maintenance of renewable power facilities, has received a Rs. 3,200 crore sanction from the State Bank of India to help finance its large-scale renewable energy projects in Gujarat.
The funding will support the development of a 250 MW solar project and a 370 MW hybrid project (including 557 MWp solar and 124.2 MW wind), together totaling over 1 GWp in capacity.
These projects are backed by 25-year Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) and are being developed in Bharuch and Surendranagar districts. The funding includes both fund-based and non-fund-based facilities, with a 75:25 debt-equity structure. This sanction reflects SBI’s strong confidence in KPI Green Energy’s capabilities and long-term growth potential in the renewable energy sector.
These projects will significantly contribute to KP Group’s goal of reaching 10 GW by 2030, generating steady revenue through long-term power agreements. They are also expected to cut over 1.5 million tonnes of CO₂ emissions annually, equivalent to planting 65 million trees, highlighting KPI Green Energy’s commitment to sustainability. This milestone strengthens the company’s position as one of India’s fastest-growing renewable energy firms and supports the nation’s clean energy transition.
Financilas & Others
The company’s revenue rose by 73 percent from Rs. 348 crore to Rs. 603 crore in Q1FY25-26. Meanwhile, Net profit rose from Rs. 66 crore to Rs. 111 crore during the same period.
The company has shown strong financial performance, delivering 118% profit growth (CAGR) over the last 5 years. It maintains a solid return on equity (ROE) of 24.9% over 3 years and currently stands at 19.7%. With a Return on Capital Employed (ROCE) of 17.5% and a Stock P/E of 26 (lower than the industry average of 30.5), the company reflects strong profitability and efficient capital use.
KPI Green Energy Limited is a 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 Q1FY26, KPI Green Energy boasts over 3 GW of orders in hand and an installed capacity exceeding 1GW. The company has developed a power evacuation capacity of more than 3.2 GW and holds a land bank of 6,275+ acres.
KPI Green Energy has attracted marquee investors, including prominent financial institutions such as BlackRock, Goldman Sachs, BofA Securities, HSBC, and Citigroup. Other notable investors include Eminence Global Fund, ITI Value Fund, Citadel Capital Fund, SBI General Insurance, and others.
It operates primarily in two segments: Independent Power Producer (IPP) and Captive Power Producer (CPP). In IPP, the company generates clean, renewable energy through strategically located plants, supplying power to businesses via Power Purchase Agreements (PPAs).
In the CPP segment, KPI specializes in developing and managing grid-connected solar and hybrid power projects tailored to meet specific customer needs, helping companies reduce electricity costs.
Written by Sridhar J
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