GUJARAT, SURAT 31st MAY 2025: SBI Securities has placed a bullish stance on Surat-based KPI Green Energy Limited, assigning it a ‘Buy’ rating and featuring the company in its latest Rising Stars 2025 report. The brokerage has set a target price of Rs. 606, implying an upside potential of approximately 25% from the current market price of Rs. 486 in 12-18 months.
The report follows KPI Green Energy’s robust financial performance in FY25, surpassing expectations across all key parameters. The company reported year-on-year revenue growth of 96.8%, with EBITDA rising 73.5% and PAT soaring 142% in the March quarter. For the full year, revenue stood at Rs. 1,735.5 crore, EBITDA at Rs. 563.8 crore, and profit at Rs. 325.3 crore, registering annual growth of 69.5%, 67.4%, and 101.2%, respectively.
SBI Securities highlighted strong execution of Captive Power Projects (CPP) and a healthy increase in Independent Power Producer (IPP) energy output, which rose 17% YoY to 249 million units. As of March 2025, the order book stands at 2,958 MW, with CPP and IPP orders of 1,756 MW and 1,202 MW, respectively.
SBI Securities noted that KPI Green Energy is targeting the execution of 1.5 GW IPP capacity by Q1 of FY27, with the potential to generate over 300 crore units annually. The CPP order pipeline, estimated at Rs. 6,000 crore, is expected to be fulfilled within the next 12–15 months.
With ambitious plans to achieve 10,000 MW cumulative capacity by 2030, expansion into new geographies, and a favourable solar sector outlook (estimated 40–50 GW annual demand), KPI Green Energy is poised for significant growth. The report noted that the company management has guided for a 50–60% CAGR in revenue over the next 2–3 years.
Valuing the stock at 24x FY26E EPS of Rs. 25.3, SBI Securities maintains its positive outlook, reiterating the target price of Rs. 606.
KPI Green Energy is a part of the Surat-based KP Group, a leader in renewable energy. The company’s market cap is Rs. 9,748 crore.
