At a Glance
K.P. Energy blew strong winds this quarter: Q1 FY26 revenue ₹220.6 Cr (+72% YoY) and PAT ₹25.4 Cr (+40% YoY). OPM surged to 22%, proving they can turn Gujarat’s breeze into cash. But with a P/E of 25.4 and a stock price meltdown (-7% today), investors seem to fear the wind will stop blowing.
Introduction
Imagine a Surat-based company outpacing most large energy players in growth. That’s K.P. Energy – quietly building wind infrastructure while the big boys chase headlines. Revenue has doubled in 3 years, profit has nearly tripled, and ROE sits at a jaw-dropping 46%. Yet, the market is nervous, and the stock just dropped 7%. Overreaction or early warning? Let’s find out.
Business Model (WTF Do They Even Do?)
- EPCC (97% of revenue): Engineering, procurement, and construction of wind farms.
- IPP: Owns and operates wind & solar assets for annuity revenue.
- BoP Infra: Balance of plant solutions for WTGs.
- Geography: Gujarat-centric (risk: over-dependence).
Essentially, they sell everything but the wind itself.
Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹220.6 Cr
- Operating Profit: ₹48 Cr
- OPM: 22%
- Net Profit: ₹25.4 Cr
- EPS (Q1): ₹3.80
TTM:
- Revenue: ₹1,031 Cr
- PAT: ₹123 Cr
- Book Value: ₹47 → P/B 9.9
Commentary: High margins, explosive growth, but expensive on P/B.
Valuation
1. P/E Method
- EPS (TTM) ₹18.4 × Sector P/E (~20) → ₹368
- At CMP ₹466, priced at a growth premium.
2.
