KP ENERGY Ltd (BSE: 539686) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Siddharth Thakur — Executive Assistant to Managing Director
Alok Das — Group Chief Executive Officer
Shabana Bajari — Chief Financial Officer
Salim Suleman Yahoo — Chief Financial Officer, KPI Green Energy Ltd.
Analysts:
Harsh Patel — Analyst
Agastya Dave — Analyst
Pranjal Soni — Analyst
Kushal — Analyst
Shikha Mehta — Analyst
Manan Shah — Analyst
Akhilesh Kumar — Analyst
Sumit Chopra — Analyst
Sunil Kumar — Analyst
Rushil Selarka — Analyst
Vineet — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3FY25 earnings conference call of KP Energy Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Harish Patel from Share India Securities. Thank you. And over to you sir.
Harsh Patel — Analyst
Thank you and good morning everyone. On behalf of Share India Security, I welcome you all to Q3FY25 earnings conference call of KP Energy Limited. We would congratulate the management on reporting a strong set of numbers at the outset of a great execution capabilities. We are pleased to have with us the management team represented by Mr. Alok Das Group CEO Mr. Salim Yahoo CFO KPI Green Energy. Ms. Sabana Bajari, Chief Financial Officer, KP Energy. We will have the opening remarks.
Siddharth Thakur — Executive Assistant to Managing Director
Okay dear. All very warm welcome to the Investor call of KP Energy Ltd. I am Siddharth Thakur, part of the CMD’s office at KP Group and I’m delighted to have you all join us today. KP Energy has been a key player in India’s wind energy sector providing end to end balance of plant solutions for wind power project. Over the year we have built a strong reputation for developing, executing and commissioning wind power infrastructure. Ensuring seamless integration of renewable energy into the grid. With our robust execution capabilities, strategic partnerships and an expanding pipeline, KP Energy remains committed to accelerating the growth.
Our expertise in the wind energy sector spans land acquisition, infrastructure development, power evacuation, co comprehensive project execution and as well as OMS capabilities. This makes us a trusted partner for ipps where we have our own IPV portfolio and all kind of flags on the call. As Mr. Has already mentioned, we have Mr. Sarin, Yahoo CFO of KPI Energy. This is Shabana Bajari, CFO of KP Energy and Dr. Alok Das Group CEO at KP Group. To the uninitiated and for reiterating for the folks who have already joined us in the last con call, Dr. Alok Das is a new welcome to our KP family.
He has joined as Group CEO effective November 11th. A seasoned leader with over 30 years of experience in the renewable energy sector, Dr. Das has outstanding track record and his tenure with key players like Suzlon Reliance and NEPC demonstrates his experience. Expertise in solar, wind and hybrid energy Solutions and achieved LMS of IIT Kanpur and who has earned his PhD in renewable energy. His career spans strategic planning, project management and international business development. And we are 100% sure his contribution to KP Group would take us miles ahead
With this. I would like to hand over the call to Dr. Alok Das.
Alok Das — Group Chief Executive Officer
Good morning to all of you and I’m very glad that okay. We are meeting today with all of our investors stakeholders. I’ll take only two to three minutes going to our cfo. Basically I can tell you that today this KP energy is the right path and directions. Because in the renewable energy particularly wind industry that is you know dominating today in India. Because our Prime Minister has given a roadmap up to 2030. 500 gigawatt is to be installed in this country. And as of today there are 205 gigawatts so far installed in renewable energy. So every year there are almost 69 to 70 megawatt sorry gigawatt is to be installed in the country. And for that there are so many things declared by the government for the make in India initiatives be it PLI or other kind of policy regulatory for these ecosystems.
Now KP Energy we are the expert in DOP activities those for the wind and solar. And mainly we are working so many work in the wind industries where from land acquisition to commissioning that except sourcing of the material which is being sourced by the OEM original equipment manufacturer. So today we are the one of the choice and best partner for the industry for the BoP activities and after sales services. So I think that we are there to support the industry and we have the right platform. And not only today we are here in Gujarat now that all other states like Norisa is coming up. Rajasthan is coming up, Karnataka is coming up. So I think future is very green for this KP Energy. So obviously we can interpersonally we can discuss so many things.
So I am handing over to our CFO to just discuss about our financial numbers please.
Shabana Bajari — Chief Financial Officer
Thank you Dr. Das. Good morning everyone and welcome to KP Energy Limited Q3 and 9 month FY 2025 earnings call. I’m Shabana Bajari, CFO KP Energy. And I’m joined today by our Group CEO Dr. Alok Das and my colleague from Finance Team the CFO at KPI Green Mr. Salim Yahoo. Being the members of our leadership team. Thank you for joining us today. We look forward to sharing insights on our financial performance, key milestones and future outlook for the upcoming quarters. KKP Energy Ltd. Is a leading wind energy EPC company in India specializing in the balance of plant solutions and turnkey execution of wind power projects. The company plays a crucial role in India’s renewable energy transition, delivering end to end solutions in majority for wind farm development, infrastructure and grid connectivity. With an ambitious target of 500 gigawatt of non fossil fuel capacity by 2030, wind energy plays a crucial role in India’s clean energy transition.
According to the renewable energy statistics 2024 published by the International Renewable Energy Agency Arena, India ranks fourth position globally in overall renewable installed capacity. Specifically, India holds fourth position in both wind power and biopower and fifth position in both solar and hydropower installations. Coming to KP Energy over the nine months ended December 31, 2024, we accelerated our growth by leveraging the increasing demand, thereby expanding the project portfolio. This upward trajectory reflects our commitment to sustainable expansion, operational excellence and delivering greater value to our stakeholders.
Let us walk through the financial highlights of the recently released Q3 and 9 month financial year 25 results as uploaded. Talking about the revenue growth, the company has reported a total revenue on a consolidated basis for the third quarter of FY25 at rupees 212.6 crore as against that at rupees 83.3 crores during the third quarter of the previous financial year. While the company achieved its highest ever Q2 total revenue on total consolidated basis, we are proud to announce that this quarter as well we have set a new record with the highest ever Q3 total revenue year over year increase in Comparison to the third quarter of FY24 works out to 155%.
The total revenue for nine months ended 31st December 24th on a consolidated basis stands at Rupees 549.8 crore as against that during nine months ended 31st December 23rd at Rupees 268.1 crore representing an increase of 105%. The company has already exceeded last year’s entire annual revenue within the first nine months of this year, demonstrating a remarkable achievement coming to the profitability. The consolidated EBITDA for the third quarter was Rupees 44.1 crore representing 141% year over year increase in comparison to the third quarter of the previous year at Rupees 18.3 crores. This quarter also marks the highest quarterly EBITDA ever.
The EBITDA for nine months FY25 stands at Rs 118.2 crores reflecting 108% increase in comparison to the nine months of the previous year at Rs 56.8 crores. This demonstrates our continued effort throughout operational efficiencies. The profit before tax for the third quarter of financial year 25 stood at Rupees 34 crores compared to that at Rupees 12.7 crores in the third quarter of the previous year, thereby reflecting an increase of 167% year over year basis that during the nine months in the financial year 25 stood at 90 crores compared to that at 42.2 crores in the nine months of the previous year, reflecting an increase of 113%.
The profit after tax for the third quarter of FY25 has been reported at rupees 26.4 crores, surpassing its previous achievements of being the highest ever PAT in value terms on a quarterly basis compared to rupees 9.3 crores in the third quarter of the previous year, reflecting the growth narrative of the company. The pat for the nine months ended 31st December 24th has been more than double at Rupees 69.5 crores compared to that at Rupees 32.7 crores during the nine months of the previous financial year. As a reflection of enhanced value creation for the shareholders, the basic eps during the nine months of the FY24 stood at rupees 10.4 as compared to that of rupees 4.9 in the nine months of the previous year.
With the commissioning of 100898 megawatt, our order book stands at about 2 gigawatt inching us closer to the ambitious target of 10 gigawatt on the group level. This has helped us strengthen our position in the renewable energy and aligning us for continuous growth in the upcoming years. Our consolidated IPB portfolio stands at 45.7 megawatt with 2.8 megawatt under commissioning expected to be energized in the coming week and the same shall be further at 48.5 megawatts. The O& M portfolio is an important segment of our business, ensuring long term performance and reliability of the renewable energy assets we build. Currently, our O and M Portfolio covers over 520/megawatt and provides comprehensive support that includes scheduled maintenance, performance optimization and predictive diagnostics towards the BOP portion of the plant.
This was about the performance of KP Energy in this quarter and nine months. In brief, I would now open the forum for the question and answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the Question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Agastya Dev from Cao Capital. Please go-ahead.
Agastya Dave
Am I audible?
Operator
Yes.
Shabana Bajari
Yes you are.
Agastya Dave
Thank you very much for the opportunity. Congratulations on great set of numbers. I have two questions. One is just like KPI, the parent company, you have a very stated objective and goal there that you will have around 20 to 22% revenues coming from IPP over a period of time. So what’s the percentage that you have? What about in this company? How much will be coming from IPP portfolio and what will be the mix of that IPP portfolio? How much would be hybrid? How much will be purely wind?
Shabana Bajari
Okay, Agassi, thank you for your question. First of all, I would like to make a small correction. KPI is not the parent company of kpg.
Agastya Dave
It’s, let me say, the flagship company of the group.
Shabana Bajari
Yeah, thank you. So the current ratio on the nine month basis is where the EPC segment contributes about 96, the IPP segment contributes about 3% and the O&M segment contributes about 1%. So the modus operandi between KPI and KPE is slightly different. We predominantly are into the wind EPC segment and we are taking up larger contracts for the clients for the wind development.
Agastya Dave
Right.
Shabana Bajari
I guess I’ve answered your question.
Agastya Dave
There is absolutely. No, no, I mean your focus is not that much on the IPP side here in this company.
Shabana Bajari
So we have, we have a focus on IPP also because we also need to handle our taxation and plow back our profits to earn a consistent revenue. But then we also need to take care of our capital and debt ratio as well.
Agastya Dave
Understood. Understood, ma’am. My second question was the 2 gigabyte order book that you have. You have a stated timeline of execution over there. So how is the progress there? We have started seeing an uptick in revenues. So are there any changes in the execution timeline? That is the first part of that question. Second is how do you see the margins evolving? And then it’s a very chunky order, It’s a very large order. So how will the pipeline look look like? I mean I’m pretty sure you have your hands full for the next one and a half to two years. But then how will we see the pipeline of fresh orders evolving over that period of time?
Shabana Bajari
So addressing your first question regarding the timelines of the orders. So typically when an order is back, the timeline differs between 12 to 18 to 20 months depending upon the scope of the work and the region and the soil capacity where we are working. So yes, this orders would, there will be certain portion which would be executed by 31st of March, certain by June, certain by September. And of course certain will spill over up to the next March as well. So the entire order book of 2 gigawatt will be energized in different parts over the period of one and a half year coming in the coming one and a half year one the margins more or less on the EBITDA basis would be the same and we do not expect any variance into it because when it comes to our cpp contracts, the PSUs and the other entities, the turbines are within their scope and which have been well tied up by them. And we also have our cranes and other things in advance. So we do not see any cost escalation on it. And we find that the margins would be near about the same. Yes. Coming to the future predictability of the revenue, I think we have always shown a growth on quarter, on quarter and year on basis and we will continue to depict the same.
Agastya Dave
The pipeline is looking healthy of fresh orders, fresh inquiries.
Shabana Bajari
Yes, we have a 3 gigawatt of orders which we have bid and we are under negotiations with our prospective clients and we look forward to bagging further orders also from them.
Agastya Dave
Excellent. Thank you very much. All the best for the next quarter. Thank you very much.
Shabana Bajari
Thank you. Thank you.
Operator
The next question is from the line of Franjal Soni from RRR Investments. Please go ahead.
Pranjal Soni
Am I audible?
Shabana Bajari
Yes.
Pranjal Soni
So my question is also on the SIP order book 1. So what is the status of the 2 gigawatt order book including the KPI green order? So how much has been recognized out of 3350 crore?
Shabana Bajari
Yeah, so the 3350 crores of total order book we have already recognized around 2 which is reflected in the quarter result on the top line. If you can see and the 3100 still remains. 3150 still remains to be executed in terms of value.
Pranjal Soni
Okay. Okay. And my next question would be also the margin guidance in IPP segment. So in the previous converse is what around 75% and barely it is reaching 50%. So is there any challenges company is facing?
Shabana Bajari
No. On the EBITDA level it is maintained at between 65 to 75%. And IPP to be honest with you, there are not many costs on it excepting the O and M activity and a smaller portion of admin cost. So there we do not see any escalation in the cost as well.
Pranjal Soni
Okay. Okay. And my next question would be on the operation and maintenance conversion rate. So suppose if the company gets order of 10 megawatt APC each from 10 customers, then what is the probability of getting operation and maintenance from the same 10 customers? Like what is the ratio of getting this operation and maintenance contract.
Shabana Bajari
So typically we always insist that we should be given the O and M contract as well. So in about 80 to 90% cases we do get the O and M as well.
Pranjal Soni
Okay. And on the basis of the seasonality factor, so what percentage of completion in EPC contract the company recognizes in half 1 and half 2. Suppose if I would take the order book of 1 gigawatt as on 3-24-2024, which would be generating potential revenue of around 1500 to 1600 crore. So what percentage of this revenue would be recognized in half one of financial year 25 and in the next half in the most possible best and worst case scenario.
Shabana Bajari
First of all I would like to give a small explanation that it would not be proper to take a 1 GW of opening order book and multiply at an average rate of 1.5 crore income to a 1500 crore. Because as was already explained earlier is in the in the previous call. Also I would just like to give you a small understanding that while the energization of the megawatt is considered only after the entire phase gets energized whereas the revenue booking is on milestone basis. So where you had an opening order book of about 3350 crore and we have already taken into consideration of about 200 crores of revenue this quarter. So balance is 3150 crores. Whereas the megawatt remains more or less the same. The same will be energized only after the phase is completed. Also coming to the booking of the revenue there are different milestones which involve both supply and service component and the same are booked as and when the targets are completed.
Pranjal Soni
Okay. Okay, got it. Thank you.
Shabana Bajari
Thank you.
Operator
The next question is from the line of Kushal from in Red Research. Please go ahead.
Kushal
Hi, thanks for taking my question. Just wanted to know hybrid projects, do we do hybrid projects in this company or. Or the flagship company?
Shabana Bajari
We do. We do it in both the intersect.
Kushal
Okay, so out of the current order book how many projects would be a hybrid and how many would be wind only.
Shabana Bajari
So when it comes to hybrid, I would like to give a small explanation in that. So when we talk about. Let’s say we have an order from Aditya Birla. So while the wind component would come to me, the solar component can go to my peer company KPI Green. So here the product, I mean the order per se is a hybrid order but the wind component is being handled by me. So as of now I think all the majority orders are hybrid orders. There are some portion of separate wind as well, but that’s not very much.
Kushal
Okay. And are we also doing BSS from this company because incrementally
Shabana Bajari
We are. We are looking into it as of now but it is currently in an absence stage. So nothing to declare as of now.
Kushal
Understood. Just last question on the offshore wind part. What is the status of offshore wind now looking at what the government want, Is there any movement of the ground?
Alok Das
Just I want to preach in. I am Dr. Raloup if you basically say for US offshore initiatives is there in the country so it is to be regulated from SEKI Delhi and they have floated two state identified two states. One is Tamil Nadu, one is Gujarat. So pre made discussion happened and there is irrespective policies also there predominantly Gujarat is planning a little bit ahead because they have started for various transmission company for the power evolution and all. So they have not floated the bd. So they are in the discussion that how that viability gap funding should be there. So it will let lead time as far as the offshore initiatives is concerned. There is a potential of 37 gigawatt in this country fast pace. So obviously this will take at least for the horizon of three to five years to come to the material. So it is under the pre feasibility study, wind study, some sort of infrastructure developments are going on. So it is that stage. Therefore as far we are concerned, when it is coming stabilized and all in that time of time, as a DOP developer we should see that what ways should we go for that kind of offshooting situations. As of today it is not very clear that what should be coming up.
Kushal
Got it. Thank you sir. Thank you.
Operator
The next question is from the line of Shikha Mehta from Time and Tide Advisors. Please go ahead.
Shikha Mehta
Good afternoon. Congratulations on a great set of numbers. I just want to understand a few. Am I audible?
Alok Das
Yes,
Shikha Mehta
I just wanted to understand a few things. I think during the last quarter we were facing a few issues with the transmission infrastructure. Are those still there or is it easing out a bit?
Shabana Bajari
Shikha, two clarifications. As a company we never had any transmission infrastructure related issue. The grid availability and the grid connectivity is a nationwide task. And that is the reason if you might have noticed that there are certain budget allocations also this year by the Finance Minister towards the strengthening of the grid and again coming back. So as a company we have. Our goals are very clear. Wherever order books we have in hand, our connectivities are already in hand and finalized. So we don’t have any transmission related issue in the company.
Shikha Mehta
Okay. So even this issue that we’re discussing, the nationwide issue of grid availability, we are currently not facing it as much.
Shabana Bajari
Right.
Shikha Mehta
And another thing to understand is on the O and M side, currently we have around 520megawatts. I think certain amount for a certain amount of time. We do it without charging the client. So how much is expected to be converted this year in FY26 maybe.
Shabana Bajari
So while we have an estimated invoicing of about 4.5 crores in the current financial year, in the upcoming year we can expect somewhere around 6.5 to 7 crores per annum. I mean, on the annual basis.
Shikha Mehta
Yeah, understood. And a more generic question was trying to understand if there are any of our competitors that, you know, do bop at the scale we do nationwide.
Shabana Bajari
To be honest with you, for me I think this has been my favorite question because I don’t see anybody within our comparable limit where we have been handling everything from the WRA analysis till the entire commissioning. And also on the transmission aspect, on the PSS aspect, I, to be honest, do not see anybody who handles all these activities and gives us as a package together with again the O and M activity.
Shikha Mehta
Correct? Correct. All right, congratulations again. I’ll come back in the queue.
Shabana Bajari
Thank you.
Operator
The next question is from the line of Manan Shah from Manibi. Please go ahead.
Manan Shah
Yeah, hi, thanks for the opportunity. My question was there was a credit rating report which highlighted that the IPP that we just commissioned, there was some timeline which would not attract any penalty if it was commissioned within the timeline. So just wanted an update whether we have fulfilled the condition and whether it will attract any penalty or not.
Shabana Bajari
Yeah, Manan. So yes, there was a project which was for 30 megawatt IPP project and considering the the number of turbines and the capacity zero, we have gone for commissioning of 28.6 megawatt which is again within the permissible limits of the P and it comprises of 12 turbines. The 11 turbines have been energized and charged and in generation before the timeline. And here the twist turbine is already on the pre commissioning phase and we expect the same to be commissioning within this week, I mean the coming week itself. So we do not envisage any charges or major component on the same from that side.
Manan Shah
Understood. And on an annualized basis, what sort of revenue will this generate given the. I think the rate is 2.43 per unit.
Shabana Bajari
So on an approximate basis we expect about 22 to 23 crores of increase in the top line on IPP segment on an annual basis.
Manan Shah
Okay. And we will again enjoy the similar margins since this is at a lower rate or there will be some lower margins on this particular IPP project.
Shabana Bajari
To be honest with. Yeah, to be honest with you, because it is a guenl tender. I mean the tie ups is with gonl there are certain advantages which we enjoy, which we do not enjoy with the other private customers. So more or less the margins would remain the same.
Manan Shah
Okay, understood. My next question was on the EPC side you highlighted that there is a healthy bid pipeline. So I wanted to understand that what sort of competition is there when we are bidding and what is the time cycle that is involved for, for a particular bid to convert into an order. And also whether we have the team and capacity to take in more orders given. You know, we are already sitting on a very healthy order book so whether we have the team and capability to execute the order that we are still, you know, bidding right now.
Shabana Bajari
Okay, coming to your first question of what is the competition we face while we bid for an order in this case, I would like to elaborate here that the demand is amazingly higher than the people who are capable and ready to pick up the job. So I don’t see anywhere a threat where I would be competing with anybody when it comes to the.
Manan Shah
Understand you’re not complaining, but any, any tender, there will be at least two, three bidders. Right. So I want to understand that in general, how many bidders are there for our particular tender?
Shabana Bajari
So yes, we do have a couple of bidders who do compete with us when it comes to bidding. But then the order size is so large. When you talk about tenders like we talk about ntpc, which we are currently doing it, and injil, you know, which is again a joint venture between Indian Oil and ntpc, the order size is so high that they split the order between multiple bidders based on the final negotiated price.
Manan Shah
So it’s not a L1 concept over here.
Shabana Bajari
It is an L1 in the sense that the L2 is then called upon to match the L1.
Manan Shah
Okay. And generally what is the split between L1 and L2?
Shabana Bajari
Well, that is something which I think it depends upon factors and a lot of scope and lot of. I mean like if I have already been spots available at one particular location, I may be ready to go it at a price, you know, a lot of factors affect that. So I think that would not be a proper standard format for that difference.
Manan Shah
Understood. And in general, I mean, based on your experience of fast bidding, what is the difference in the pricing between L1 and L2 that you have, you know, seen based on your past experience,
Shabana Bajari
I think I, I, I can’t be able to, I mean I’m not in a position right now to tell you that because as I said, we cannot have a standard difference between L1 and L2. It can differ. In one tender it can be X, in another tender it can be Y. So there’s no standard as such. It all depends upon how you know things are around on the particular location where the project is being offered.
Manan Shah
No, I understand, but just based on your past experience, the past projects that you’ve built, what is it that you have witnessed that there is a difference between say where we have been L1, the L2 was a 10% higher, 20% higher.
Shabana Bajari
I don’t even think it is 10%. It is not even 10%.
Manan Shah
Okay, understood. And on the timeline, how much time does it take for a project that is for which we have bid to convert into an order?
Shabana Bajari
The public sectors do take time. It can be beyond, you know, six to nine months. And in case of private entities, we do not have a tendering process. We are actually called upon discussed the negotiations that happen on terms of technical and commercial terms and the orders are closed.
Manan Shah
Understood. So the bit pipeline, what is the split between private and public?
Shabana Bajari
In majority they are private players.
Manan Shah
Okay. The 3,3 gigawatt of bit pipeline is majority of the private side.
Shabana Bajari
Yes.
Manan Shah
Understood. Thank you. I’ll get back in the queue.
Shabana Bajari
Okay, thank you.
Operator
The next question is from the line of Akhilesh Kumar, an individual investor. Please go ahead.
Akhilesh Kumar
Hi ma’am, I want to clarify again on the earlier question what was asked on the GUVNL 30 megawatt project there? We are very sure that DUVNL is not going to encase and ask for additional bank guarantee because we didn’t complete it on January 24 as the deadline.
Shabana Bajari
I would give a small clarification here. So while the activity so out of the 12 turbines 11 have already been done, the 12th is already in the pre commissioning phase and the geobinal will not encash any bank guarantee. The charges for the smaller portion are hardly.04% of the cost of the project. Okay. And by the other 11 turbines are already in two generations. Number one, we have already started generating revenue on that There is no possibility of any kind of a extra penalty or charge being levied by Durian.
Akhilesh Kumar
So we are good as well for the ppa. What agreement we have?
Shabana Bajari
Yes, we have already started registering the units on what do you call substation generation has already started for the other disruptor binds.
Akhilesh Kumar
Okay. And the earlier projection was that we will booking those revenues from the next financial year. But as of the things now, 28 megawatts is already in size. So it should contribute from this. This month itself, right?
Shabana Bajari
Yes, yes, this month itself. The contributions will start.
Akhilesh Kumar
Okay, great. One last thing. I am not very good at how the transmission, evacuation capacity and all it works, but do you need to buy or procure the trans transformers as well for your building up the capacity for evacuation? And are you facing any issue there? Because we have heard that transformers like say nowadays it’s very difficult to procure on time.
Shabana Bajari
Yeah. So whether we procure transformers or not depends upon the scope of the client which on the order that has been awarded to us. So yes, where the PSS is in our scope, definitely the transformers are also in our scope and we do procure and we pre book it. Because what happens is when you look at the gestation period of a particular project, it ranges from 12 to 18 months. And that is a sufficient time when we proactively act. And the moment we get an order and make the bookings in place, I don’t see any challenge coming there.
Akhilesh Kumar
Okay, great. Thank you. And one thing. Do we need in near future any fundraising plan?
Shabana Bajari
Well, not immediately but when we go for further IPP in the next year, yes, we may look for it.
Akhilesh Kumar
Okay, thank you. That’s all from my.
Shabana Bajari
Thank you. Yeah.
Operator
The next question is from the line of Sumit Chopra, an individual investor. Please go ahead.
Shabana Bajari
Yes you are
Sumit Chopra
Ma’am. Can you share me the project status of the Aditya Birla projects that we have taken multiple projects? I think we are doing those projects in a phases 123megawatt which was expected to complete in November. So is that project energized? Another project where we were working on the phase one of 21 megawatt out of 86 megawatt which is again expected to be commissioned by March 20th. And the one more project of that 182 megawatt which is expected to be commissioned by June 25th. Are we on track for all three projects?
Shabana Bajari
Yeah. So Sumit, we have been on track based on whatever revised timelines have been given to us by the clients, number one and there are majority of the projects like you are talking about specific projects. Unfortunately we have agreement with our clients and we are not in a position to share much details about it. But yes they are are completed for the 23.1 that you’re talking. It’s almost on the verge of completion. And the others are all also well within the time frame.
Sumit Chopra
I think because of that Q3 is little bit slow because. This 23 megawatt project we are expected to be commissioned in November itself. And so how are we looking at Q4 if that would be better than Q3 or how we are looking in the execution side in Q4?
Shabana Bajari
Yeah, I think we have always shown a quarter on quarter growth on a consistent basis and we look forward to the same in Q4 as well.
Sumit Chopra
So is there any delay in timeline of June 25 for Aditya Birla that we were expecting earlier?
Shabana Bajari
No, we do not envisage any delay in timeline. I mean there are revised timelines given to us and we do not envisage any further delay in that.
Sumit Chopra
Okay. Okay. And the second question ma’am, that the project that we have got from KPI Green, so how would that project be delivered? Are we going to deliver in phases or how would be the timeline for that? And are we confident to energize the complete 1 gigawatt project by March 2026?
Shabana Bajari
So yes, this will be delivered in phases and there are different phases, we having different completion dates and the timelines available with us are somewhere around September 26th. But because we have a win win situation in completing the same early one in KP Energy, we’ll have a quicker revenue booking when we finish it. And AP for KPI it is an IPP project. So for them it will be reduced cost with reduction in IDC and earlier commissioning advantages. So yes, we are very optimistic about it commissioning it before the timeline available with us.
Sumit Chopra
And just one last question, that earlier participant was also asking about that 3 gigawatt order that are in pipeline and you have just mentioned that most of these are from the private company. So can we expect these orders in next three to four months.
Shabana Bajari
So as I told that the discussion period on the technical side is what takes a little longer. So in three to six months we can expect the order inflow from these pipeline
Sumit Chopra
Any color. Madam, you would like to choose green hydrogen side. We are doing anything. I think we have, we have constituted one company for this purpose only. So I would like to throw any light on this green on hydrogen or offshore side.
Shabana Bajari
Yeah, so I think on offshore our CEO Dr. Das already mentioned a brief about there. When the earlier when this question was asked about the green hydrogen I would like to say yes we have an entity and the typical major component in a green hydrogen would be green power green energy and that we both the companies KP Energy as well as KPI Green are delving into it. And that has been the core business. And so we look forward to create a synergy amongst all the companies. Thank you.
Operator
The next question is from the line of Sunil Kumar, an individual investor. Please go ahead.
Sunil Kumar
Hey, happy noon. Can you guys hear me?
Shabana Bajari
Yeah.
Sunil Kumar
Hey, thank you for taking. Thank you for taking the question. I have one winning order book of 3150 crores, right? Because last quarter we said 2 gigawatts, 3350 crores will be done in 18 months. Now the three months has already passed where we have left with 3150 crores. Are we confident in the next 15 months we’ll be able to execute the entire order book number one?
Shabana Bajari
Yes, we are. Yes.
Sunil Kumar
Okay, thank you. The second question is in terms of the conversion ratio of the order pipeline, right? Because last quarter in September 2024 we said bit pipeline was 1.57 gigawatts. So what is our conversion now in this quarter we are basically saying it is 3 gigawatts. So what is the conversion ratio?
Shabana Bajari
So I would also like to elaborate that when we discussed about 1.57 in the last quarter at that very moment we had given a picture that we would expect the orders to close beyond three to six months. So as we know that the entire closure process of discussion and technical analysis takes a bit longer. And these are all large orders and it is, you know, also a capex for our clients. So besides this being an EPC contract for us, it becomes a capex for the client where they have to tie up with their lending arrangements and fund flows and their internal approval. That is the reason why it’s a bit longer process than the normal which we have it in any other kind of a smaller renewable business. So yes, we do look forward to it. And as I said this time also that we expect it to close within three to six months, some portion. Plus we already have a large order on hand so our execution targets are also structured accordingly.
Sunil Kumar
No, ma’am, I got that. I was looking at the percentage conversion. For example, if you bid for 1 gigawatt, do you get 200 megawatts, 500 megawatts? What is the percentage conversion of the bid pipeline? Not the duration but the percentage.
Shabana Bajari
I got you, I got your question. But I would like to elaborate slightly. So if it is only psu, there is a typical bidding process that happens when it is a private customer. We sit across the table, we are being called, we are being discussed with them and then the order is closed. So there is, I would rather say that wherever we normally go and sit it would be more than 80 to 90% that the order would really bad I mean, we were in a position to bank the order is only where the bidding process take place. You have the bid success ratio which comes into question again in those bidding process. Wherever we bid, as I said that the demand is much more, the supply is lesser. So, yes, we do have a chance to stand on some quantity of the amount already bid. I mean the quantity already bid.
Sunil Kumar
Thank you, man. And the last question on the IPP folio, right, we have about 47.45.7 megawatts, which is been energized. Right. And the last 30 megawatt which is specific for JVNL, which I understand is about 2.43 rupees per unit. Correct. So what is our average realization? Because I’m assuming the previous 20 megawatt is about 6 to 6.5. Correct. So would it be fair to say for the megawatts which have been energized so far the average realization would be somewhere around 4 to 4.5 rupees per unit considering I take about 37% PLF which generates about 33 lakh units per megawatt. So for 50 megawatts roughly about 1 point. Yeah. So 1.5 crore units. So would it be fair to say that it will the cost average realization per unit is about 4 to 4.5 rupees per unit.
Shabana Bajari
So first of all, yes, you are right with reference to the gross rate being 7.5 to 8%. So what you spoke about 6 to 6.5 was the net rate you were speaking about on the current.
Sunil Kumar
That is right.
Shabana Bajari
There will be a slighter reduction on the average. But as I said that there are other components like transmission loss will not be to my account. The transmission charges will not be to my account. The measurement of the units would be more on the PSS basis rather on the GSS basis. And this in totality if you accumulate and see then the difference would not be really much. To certain extent it will definitely go down but then the volume in terms of the generation would increase and compensate for the total effect.
Sunil Kumar
So it would be like 3 to 3.5 rupees on average for the. Would that be a fair assumption to take it considering 2.4 crores for the TV and the rest
Shabana Bajari
It will be above 3.5. It will not go as low as 3.5.
Sunil Kumar
Thank you. And last thing for Mr. Alok Dasar. Thank you for being on the call. I just think while you’re having a con call for KPI Green and KP Energy, I also would appreciate if you can provide a periodic update on the KP Green Engineering as well. I understand we don’t have a mandate for an SME company but I think it would definitely help the shareholders because I hold as a group, I hold the shares of all the group companies and so has majority of the people. So it would definitely help if you can at least provide an update in terms of how the group companies also performing.
Alok Das
Yeah, basically last day I can just explain already because whatever we have declared in the domain of the public so we will be maintaining that status quo while going forward. So all all of this endeavor should be because of the future is very bright because there is a lot of factors which is coming our forward. But your demand is very good. So as a group CEO I’ll just maintain that speed and momentum the way it is. KPI, Green or KPE all for the practical purpose. What are the future developments coming? So I am very much optimistic because this is the space will be maintaining and what we are time to time we are into the market.
Sunil Kumar
Yes sir. On the KP income engineering also, if you can, you know, have this periodic con call, right? I think if not now, maybe in the next quarter onwards. I think that would definitely help on the KP Engineering. That was my one day request.
Salim Suleman Yahoo
Yes, sir, this is Sunny now. So KPG Engineering is on the SME board. And as per the regulations we have to give the financials in a six month period. So naturally, I mean as Dr. Alok had said that you know, we will grow. The KPG Engineering also will grow with the same momentum the other companies are growing. But at present in the public domain we are not allowed to give you the financials. But believe me, trust us that you know, KPG Engineering is an extended arm of our group and which is an important arm which will grow along with the other companies. Because it is an arm which provides us entire infrastructure for the renewable energy. So naturally if I my portfolio in KP Energy, KPI is going to automatically my infrastructure arm will also grow substantially.
Sunil Kumar
Thank you so much, sir.
Alok Das
Thank you.
Operator
The next question is from the line of Rochel Silarka from Pink World. Please go ahead.
Rushil Selarka
Hello. Hello.
Shabana Bajari
Hi.
Rushil Selarka
Yeah ma’am. Yeah, congratulations for the great numbers. My question is that you know like under ipp, like you know how we disclose in KPI Green, you know, how many units we have generated in terms of kWh. So can we like share the data in PPT for the KP Energy IPP segment Also
Shabana Bajari
We take the suggestion going forward and we do that in the upcoming ppt.
Rushil Selarka
And ma’am, do we have a data as of now like in nine months how many units we have generated since our 34 megawatt is operational under IPP?
Shabana Bajari
Yes, I would be having. You’ll have to give me a moment please if you can be online.
Rushil Selarka
Yeah, ma’am,
Shabana Bajari
Just a second please. So the total number of units over the period of nine months have been around 2.35 crores
Rushil Selarka
In terms of kWh.
Shabana Bajari
Yeah.
Rushil Selarka
And ma’am, like this under om since you know like how much revenue we build and what is our cost in om. So how much profit we make in terms of per megawatt.
Shabana Bajari
So what happens is that while we give certain free period, but then overall my EBITDA comes at around 65%. 65 to 70% is what the EBITDA I can expect from the Wunden segment
Rushil Selarka
And the billing we do is something around. Can we expect 5 lakhs per megawatt?
Shabana Bajari
No, because we do only the balance of plant portion. So there in. When it comes to the wind segment, there are two components in the O and M. One is the O and M of the turbine per se, and then there is an oenum of the rest of the plant, so the O and M of the turbine is being done by the original equipment manufacturer and the balance of plant is being done by us. In that case, it would be around 2.2 lakhs to 2.5 lakhs per megawatt.
Rushil Selarka
Okay, 65 will be our EBITDA margin. From that,
Shabana Bajari
65% would be our EBITDA.
Rushil Selarka
And ma’am, just you explained that, you know, like in one, in one project, you know, under IPP, we have got a rate of 2.3 per unit. But since we have other benefits, like we don’t have to pay transmission charges, transmission losses also in our. In our end. And you explain something, that measurement, you know, something that will be done in this and that. So can you explain that? What do you mean by that measurement? Like how it works
Shabana Bajari
In a layman’s language, if I put. So what happens is where there is a turbine being set up, and every turbine is a powerhouse, it’s a power generator. And it has a small unit substation being connected with that turbine. This unit substation accumulated together gets connected to a cooling substation, which is again a part of, you know, accumulating the entire energy generated and elevating it to the voltage required. And later on then it is being transmitted to the government substation which eventually gets connected to the government grid and overall gets transmitted to the respective places where it is supposed to get transmitted. Now, in a typical private, what happens is that the measurement of the units happen at the GSS level, that is the government substation level. So all the transmission charges and the losses right from the generation till the power reaches the GSS are being borne by the generator. In certain government cases, the privilege is being offered where the measurement starts on the individual, either on the individual turbine basis or on the PSS basis. So this saves us on the losses and the charges being levied.
Rushil Selarka
And PSS basis means like a private
Shabana Bajari
Cooling subscription.
Rushil Selarka
Okay. So that, that doesn’t come under us. Right? So that whatever
Shabana Bajari
It comes under us, it comes. But. But here that the gap, I mean the time and the energy and the effort and the cost taken for the power to travel from the PSS to the GSS is not law, is not to be borne by us in certain government contracts.
Rushil Selarka
Okay, ma’am, that’s very helpful, ma’am. Thank you.
Shabana Bajari
Thank you.
Operator
The next question is from the line of Vineet from Toro Wealth Management. Please go ahead.
Vineet
So my question is already answered, so I will take my call.
Operator
Thank you. The next question is from the line of Manansha from Manibi please go ahead.
Manan Shah
Yeah. Hi. Thanks for the follow up. Ma’am, you mentioned that from this commissioning of this ipp, we will be generating incremental revenue of 25 crores. Right?
Shabana Bajari
Right.
Manan Shah
So. And the total capex that we did on this project is around 230 crores. And the loan that we’ve taken is around 120 crores.
Shabana Bajari
Yes.
Manan Shah
So what is the cost of debt of this loan?
Shabana Bajari
Sorry,
Manan Shah
What is the cost of debt for this project?
Shabana Bajari
The cost of debt is about 9.5%.
Manan Shah
So ma’am, I wanted to understand that then at TBT level, assuming that we depreciate this project over a 25 year period, meaning it will. It will be at least 9 to 10 crores of depreciation and roughly 75% EBITDA margin will give me 18 to 19 crores of EBITDA. So PBT level contribution will not be much. And the overall ROI that we make on this project is barely 8, 9%.
Shabana Bajari
Yeah, but here I need to bring into one portion here will will be that this particular contract with GNL is over a period of 25 years. So over the period of 25 years I do not envisage the rate of the power sale to remain what we are selling right now. If you see that overall
Manan Shah
EPA must be fine for 25 years only. Right. Or it’s a lower duration.
Shabana Bajari
So it is at a fixed fixed rate for 25 years.
Manan Shah
Right. So then how will the power price change? I mean it will remain at 2.43 only. Right?
Shabana Bajari
2.43 would be the power price which has been there. It will remain valid for 25 years. My question, I mean my. My submission here is that while the average rate which you are seeing currently at rate at 6 to 6.5, this will not continue at 6 to 6.5 over the period of time as the competition rises and number of renewable segments available would be larger. This will come down eventually. Whereas on an overall basis having a consistent 2.43 rate is definitely going to be of a larger benefit over extended period of time.
Manan Shah
Okay, understood. And ma’am, just I missed you mentioned that the timeline for completing the sister company order is September 26th if I heard it correct.
Shabana Bajari
Yeah, it is September 26th.
Manan Shah
Okay. Okay. Thank you.
Shabana Bajari
Thank you.
Operator
The next question is from the line of Pranjal Sony from RR Investments. Please go ahead.
Pranjal Soni
I was just trying to understand the EBITDA margins on O M part. So if you see the quarter wide segment results. So in quarter one it is around one in quarter two it is around 42% and this quarter it is around 27%. So could you help me in understanding this O and M part?
Shabana Bajari
Yeah. So basically in quarter two there are certain milestones which have been subsequently invoiced based upon the completion of certain activity. And that is why the disparity on quarter on quarter is being visible. The same is being taken care on an annual basis and the margins as mentioned will be available.
Pranjal Soni
Okay. And my next question would be on that green hydrogen part. So that 1 megawatt green hydrogen plant has been under progress, which is done by advait, Correct? Am I correct?
Shabana Bajari
I am sorry, but I think this won’t be the proper forum to discuss green hydrogen.
Pranjal Soni
Okay, sure. Thank you. Thank you.
Shabana Bajari
Yeah, thank you.
Operator
The next question is from the line of Akhilesh Kumar, an individual investor. Please go ahead,
Akhilesh Kumar
Ma’am. I want to know about our NTPC PPP project which was a very large order for us, around 460 or 500 megawatts. It has been already 16 months. At what stage we are there and are we going to say billing is happening in phases or it is not started?
Shabana Bajari
About the NTPC project. Yes, we are already invoicing and we would like to hear mention that the NTPC project of 460, what you’re talking about, has been split into two categories. So 464 megawatt has been split into one direct order from NTPC renewable of about 155.6 megawatt and another order from the joint venture between Indian Oil and NPPC known as engel of about 308 megawatt. So both the orders are currently under execution. The land component is closed from for acquisition and the speed of operations is as what we had planned earlier coming to the execution. I mean the last days of commissioning. I would like to mention here that there are certain, what do you call, timelines which have been extended by NTPC because their turbines were not frozen and they were not in a position to provide us timely data. So they took a little longer in giving us the design and the approval of the turbine capacity. And that is why this project has been enhanced in terms of time frame from their side.
Akhilesh Kumar
So can you share like now, what is the new target date for us now? So while we await.
Shabana Bajari
While we await an amendment in terms of official amendment from them, but based on the communication available with us, it is expected to be around six months.
Akhilesh Kumar
Okay. But still we are, whatever work we have finished, we are doing the invoicing for them, right?
Shabana Bajari
Yes, yes, yes.
Akhilesh Kumar
And there we have O M part very small, right? Only for few years.
Shabana Bajari
We have, we have the O and M for three years over there which is a part of the existing contract. And there is a separate invoicing for that which will be done as and when the project is commissioned.
Akhilesh Kumar
Okay, thank you.
Shabana Bajari
Okay,
Operator
The next question is from the line of Rasheed from Pink. Well, please go ahead.
Rushil Selarka
Hello. Sorry. My question is that let’s say, you know, we have it under ipp. Let’s say we have a PPA like you know, we have done it for it let up with any of the client, you know, at 6, 6.5 rupees per unit. But let’s say after five years, let’s say competition increases. So do we see the threat of, you know, like any tweak in the PPA in terms of rates or like that risk can be there?
Shabana Bajari
I would, I would firstly like to throw some light on the private PPAs that we undertake. They are linked with the discom pricing. So in such a scenario every change in the discom price will automatically get reflected in the PPA pricing. And over the period of last, I think 15 to 20 years, I have never seen an electricity rate of the discom fall. So I do not see any challenge there.
Rushil Selarka
And I mean, and if we do with government and PSU then.
Shabana Bajari
So I think the government PPA rates are being currently being handled on the reverse bidding option which is being in which everybody participates. And we calculate, we make internal calculations and we come to a conclusion as to what rate we can bid for and what is acceptable to us in terms of margins and then only we go for the bidding.
Rushil Selarka
Okay, but if tomorrow, let’s say their competition increases and let’s say the price comes further down. So whatever, like PPA we have signed earlier with them. So can they say that you come that to that rate?
Shabana Bajari
No, no, no. Those PPAs are signed for 25 years. The government PPA is assigned for 25 years and the prices are fixed for 25 years.
Rushil Selarka
Okay. And private, with private clients also PPF is done for 25 years or like 10 years or something like that.
Shabana Bajari
So they have a longer duration PPAs. But then we do give them an exit option with a certain notice period of about, you know, six to 12 months.
Rushil Selarka
Okay, ma’am. Got it. Thank you, ma’am.
Shabana Bajari
Yeah, thank you.
Operator
Thank you. There are no further questions from the participants. I now hand the conference over to the management for closing comments.
Siddharth Thakur
Huge shout out and thanks to all the investors and all the dignitaries present on this call. We as part of KP Energy have been delivering strong results for the past few quarters and we expect the same with delivered going for the next quarter. If you have any questions, please reach out to us. We’ll be sending across email containing the CON call and other key information relevant to the stakeholders and the investors. Please stay in touch and I hope you have an amazing day. Thank you. And signing off from the Energy Management team.
Alok Das
Thank you.
Shabana Bajari
Thank you all
Operator
On behalf of KP Energy limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.