| Order Capacity | 100 MWWind Project |
|---|---|
| Market Cap | ₹2,081 CrMid-cap |
| Tariff | ₹3.435Per Unit |
| PE TTM | 11.47Industry: 23.27 |
| Order from | Gujarat Urja Vikas Nigam Limited (GUVNL) |
| Execution period | 24 months |
Key highlights
- Executed Power Purchase Agreement for 100 MW grid-connected wind power capacity
- Tariff fixed at ₹3.435 per unit for a long-term period of 25 years
- Project awarded through GUVNL Wind Tender Phase X competitive bidding process
- Scheduled commencement of supply is set for July 30, 2028
- Execution timeline established at 24 months from the date of PPA signing
- Cumulative Independent Power Producer portfolio now exceeds 250 MW milestone
Details of the Power Purchase Agreement
K.P. Energy Limited has signed a definitive Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited for a 100 MW grid-connected wind power project. This project is developed under the company's Independent Power Producer segment and originated from a Letter of Intent issued on March 30, 2026.
The contract was secured through a tariff-based competitive bidding process under GUVNL's Wind Tender Phase X and has received formal approval from the Gujarat Electricity Regulatory Commission. The agreement guarantees a fixed tariff of ₹3.435 per unit for 25 years, providing long-term revenue visibility for the company.
Client and Strategic Context
- Gujarat Urja Vikas Nigam Limited is the apex state-owned power utility in Gujarat responsible for bulk power procurement.
- The project is a strategic component of GUVNL's efforts to meet renewable energy targets through competitive phase-wise tenders.
- The 24-month execution window aligns with the company's operational capabilities for large-scale wind infrastructure.
- Successful commissioning will reinforce the company's standing as a preferred partner for state-level power utilities.
Business Impact and Financial Health
This 100 MW addition is a significant scale-up for K.P. Energy, successfully moving its total IPP portfolio across the 250 MW threshold. Financially, the company shows robust growth with annual operating revenue rising 57.08% year-on-year to ₹1,497.09 crore and a net profit of ₹181.4 crore.
With a Return on Equity of 34.65%, the company significantly outperforms the sector average of 12.86%. This contract adds to the company's existing momentum, leveraging a mid-range valuation with a Price-to-Earnings ratio of 11.47, which sits comfortably below the industry average of 23.27.
Industry Landscape and Outlook
- The Indian wind energy sector is benefiting from increased state-level procurement activities and competitive bidding models.
- Transitioning toward an asset-heavy IPP model allows companies like K.P. Energy to capture higher margins than traditional EPC services.
- Gujarat remains a primary hub for wind energy development due to favorable wind resource availability and utility-led initiatives.
- Long-term PPAs provide a hedge against market volatility, supporting stable cash flow for debt servicing and further expansion.
| Share price | ₹306.95 |
|---|---|
| Market capitalisation | ₹2,081.06 Cr |
| Revenue (annual) | ₹1,497.09 Cr |
| Net profit (annual) | ₹181.40 Cr |
| Revenue (latest quarter) | ₹631.81 Cr+83.15% vs previous quarter |
| Net profit (latest quarter) | ₹78.69 Cr+90.30% vs previous quarter |
| P/E (TTM) | 11.47×Sector 27.59× |
| Promoter holding | 45.31%-0.13% QoQ |
| FII holding | 0.53%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by K.P. Energy Limited announcing the execution of a Power Purchase Agreement with GUVNL for a 100 MW wind project. Market figures from a third-party data provider.
