KPI Green Energy Ltd (NSE: KPIGREEN) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Harsh Patel — Moderator
Unidentified Speaker
Salim Yahoo — Chief Financial Officer
Analysts:
Unidentified Participant
Rajat Gupta — Analyst
Rohit Singh — Analyst
Hardik Gandhi — Analyst
Pranjal Soni — Analyst
Presentation:
Operator
Good day and welcome to the KPI Green Energy Limited Q4 and full year FY25 earnings conference call hosted by Shared India Securities. As a reminder, all participant line will be in 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 start and zero on your touchtone phone. Please note that this content is being recorded. I now hand the conference over to Mr. Harsh Patil from Share India Securities. Thank you. And over to you sir. Hello.
Harsh Patel — Moderator
Good evening. Good evening. Thank you and good evening everyone. Congratulations on a very good set of numbers. On behalf of Share India Securities I welcome you all to Q4FY25 earnings conference call of KPI Green Energy. We are pleased to have with us the management team represented by Mr. Sohail Daboya, the full time Director Dr. Alok Das Group CEO and Mr. Salim Yahoo Chief Financial Officer of the company. We will have the opening remarks from the management followed by the question and answer session. Thank you. And over to you Rithwith
Unidentified Speaker
Hi, good evening everyone. This is Ritvik Chauhan, AGM Investor Relations for KPI Green Energy. I’m pleased to have everyone join us today to go over KPI Green Energy’s very strong quarter Q4FY 2025 and full year 2025 results. Just to give you a brief overview. We have in addition to the 950megawatt of renewable energy already commissioned added another 2.6 gigawatt of orders in hand. Our financial results in terms of revenue pat EBITDA have all been tremendously successful. So I’m really excited to have our management talk you through those numbers today I first want to introduce our group CEO Dr. Alok Das. Good afternoon everybody. I’m very glad to share some of the information. I think has already told that what is KPI numbers and today actually that while we the KPI it’s leading through a renewable energy space, you know the market is very dynamic and the growth of renewable energy initiatives both for wind and solar are really encouraging and while going through you can know that in India there are total 500 gigawatts are there and almost 220 gigawatts is completed. So probably market demand is more than 40 to 50 gigawatt years and the conducive policy. So we are the right path while going forward to harness the renewable energy and for the society as a whole and I think that is what we can to deliberate some new kind of projects also coming up. So during conversation we can share that also. So with this I can hand over to our group to our CFO. Thank you.
Salim Yahoo — Chief Financial Officer
Thank you Dr. Good afternoon ladies and gentlemen and thank you for joining KPI Green Energy Limited Quarter 4 FY2425 earning call I’m Salim Yao, I’m Chief Financial Officer and I’m delighted to report that in quarter four FY25 we have delivered yet another record quarter with a total revenue of 577.80 crore up 97% year on year from 292.97 crore driven by accelerated project execution and higher capacity utilization While EBITDA rose 76% to 169.43 crore on the back of improved operating leverage and cost efficiency. PBT that is profit before tax rise to 131% to 138.70 crore thanks to our strategic debt repayment reducing finance cost and profit after tax climbed 142% to rupees 104.18 crore underscoring disciplined financial management for the full for the full year FY25 we achieved total revenue of 1755.16 crore, a substantial increase of 70.3% percent over 1030.82 crore. Again EBITDA of 580.87 crore up by 69.1% and profit before tax of rupees 440.90 crores, 103% rise and a PAT of 325.28 crore up by 101% reflecting the strength of our project pipeline and robust demand for clean green energy. Various other things that we have achieved other than the financial during the year we’ve successfully raised thousand crore through qualified institutional placement which includes some of the marquee institutions including Morgan Stanley, Goldman Sachs Society General, BofA, Motilal Oswal strengthened our credit profile. It also upgraded our rating to ICRA a positive, secured a landmark EPC contract of 300 megawatts ac from Coal India Ltd. 100 megawatt ac from Mahaj & Co. All on track for early commissioning and on the technology size and advanced our network operations to deliver 24. 7 monitoring and predictive maintenance that has lifted fleet availability to 98.5% while moving on to other. We have signed MOUs with states like Odisha, Rajasthan and Madhya Prashant to set stage for a larger scale solar and hybrid project. As you all know, we remain committed to the disciplined capital allocation and further delivering year on year. Thank you everybody. Now I open the forum for question and answers.
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 may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star in one. Now foreign the first question is from the line of CA Garved Goel from NVIST Analytical Advisors llp. Please go ahead.
Unidentified Participant
Hi. Am I audible? Yes sir. Yes Garvit. Good evening sir. Congrats for the hand execution. My first question is on CPP part. Given that the CPP currently contributes 87% of the revenue and tend to offer the higher near term EBITDA margins due to faster execution cycles and low capital intensity. So how do you expect the overall margin profile to evolve as your IPV portfolio scales to over 1.5 gigawatt and we are also talking about we at this project begin contributing specifically. So can you help us understand the margin differentials between the ipp, CPP and BESS in your operating context and how the shift in the business might actually impact the consolidated margins in FY26 and 27? That is my first question.
Unidentified Speaker
All right. So garment, if you see this year our total mix of revenue from IPV and CPV was, IPV was 13% and rest all 87% was the CPP and the margins have, you know, slightly improved compared to last year because of the. Now as we go forward, you must have seen our presentation also that we are going to install 1.5 gigawatt of IPP capacity. Now this will take a year or a couple of years. It will go in a phase wise manner. It will keep on adding to the IPP side. Our final goal is to, you know, at least take this to 25% IPV portfolio to 25% and the remaining to a CPP portfolio. With that increase naturally the margins will improve because as we all know that ITB brings in a strong ebitda margin, around 85 to 90% kind of margin it can reach up to and the CPP brings around 20 to 22% the combined EBITDA margin would be around 32 to 33%. So we as we go forward, if we add more of ipp, naturally the margin will shift to a stronger position compared. But it depends upon how much portion of TPP simultaneously get added. But our goal is to add more and more of IPP as we increase the PPP also.
Operator
Thank you. Participants are requested to restrict their question to one per participant. If you have a follow up question, I would request you to rejoin the queue. The next question is from the line of Rajat Gupta from Rajat International. Please go ahead.
Rajat Gupta
Hello everyone. Am I audible? Yes, yes, you’re audible. Yes. Thanks for the opportunity and congratulations for the fine set of numbers. Sir, my question is addressed to Mr. Salim. Yahoo. Yeah, I’m seeing this. Yeah, There is no debate that we have attained commendable numbers and very commendable growth. But it seems like from the last three years we are attaining the growth via either liquidating the equity or raising the debt. So it has started to look in the depleting ROCE and ROE as well. So in this quarter we are seeing the EBITDA margin is, you know, slipping as well. So can you.
Salim Yahoo
Hello. Yeah, I got your question, Rajesh. First of all, thank you for the congratulations for the result. Let me give you a perspective that you know, when you look at our results, you know, you are looking at the ROC roe, you know, decrease in the roc, but it is not because of the performance decrease, it is because our net worth has increased substantially with the QIP office. And understand you are saying diluting, but you need to understand that we are into a business which is a very capital intensive business. The IP segment is a very capital intensive business. And for that we require huge funds which are required to build up the assets. Now these assets, long term assets, 25 year assets. So you are getting an annuity income of 25 years which you are infusing into the what is the asset base. So that is a very, I would say as an investor, if I had been an investor, I would always like to have a long term annuity revenue. And that is what is coming into our business as we go on. We add more and more assets. It will increase our, it will tend to number profitability, margins and everything. The drop in the ROC or ROE this year was because of the infusion into the equity or you can say the network. And you have to also see that the debt equity has substantially improved. Last time it was around 0.5, it has come to 0.33 which should also give a comfort that whatever amount of interest that we were paying earlier we have reduced that also. So overall it is a good because see, until unless we show a growth, it is not. And the growth is going to come from infusion of funds or into adding more and more assets because TPP will bring to a certain extent profitability. But beyond that it is IPP that is going to drive the future in the renewable energy. So that’s the reason we have taken a cautious call. But we have not gone over. We are not over driven by increasing too much debt. In fact, debt has reduced compared to the last year. If you look at the debt equity ratio. So this is the nature of the business characteristic where you will have to include, if you want to grow, you’ll have to include more and more IPP so that you get a continuous income. That is more important. Thank you.
Operator
The next question is from the line of Rohit Singh from Envis Analytics Advisory lnp. Please go ahead.
Rohit Singh
Hello. Am I audible? Yes sir. Yeah, you talked about improvement in the EBITDA margin. So I would like to ask two questions. One is what is the guidance for next year and whatever the top line that we are looking to grow in other 26 and if the IPV contribution is on the higher side. So that means the bottom line is going to be outperformed in terms of as compared to top line. See, as far as next year is concerned, we have already multiple times. Our CMD chairman Dr. Faridkur has also given that we are committed to at least 60 to 70% growth year on year. And we have done this year.
Unidentified Speaker
We will, we are very positive that we will go into the same in the next year also. IPP. Yes, IPP. We have already got 1.5 gigawatt as I told you, which is under the pipeline of execution. Now this will come into a phase in a phase manner. So movies that is 1.5 gigahertz will totally be operational in next couple of years. So you can see from the third year you can see the revenues of IPV of this IPB flowing strongly from the third year. So if you can say like you know, FY 25, 26, 26, 27, so 2728 will be the first full year where we will be able to get the entire 1.5 gigawatt revenue. But there will be simultaneously as we keep on adding capacity, there will be some portion which will get energized and will start flowing in the revenue. Naturally if I add more and more IPV my EBITDA margin will also improve. My PAT will also improve. But we expect this major impact coming from the third year onward, where the entire 1.5 GHz and something new which will be setting up, which will be. But we will be able to maintain our margin of 17 to 19%, kind of a margin at a pack level.
Operator
Thank you. The next question is from the line of threshold from pink wealth. Please go ahead.
Unidentified Participant
Hello. Yes, sir. Yeah. Congratulations for a great set of summer. Thank you. Russian. So my question is that in the eighth EC part since we have seen one of the players, you know have been filed for the nclt. So do you think that you know this the compensity competitive intensity in the EPC segment has reduced and the pricing segment that must have improved. And we might also get some order, you know if from them, you know if any of their order is pending.
Unidentified Speaker
Hey Raf, as we were saying that one of the player has moved out of the race. Nevertheless I mean whatever orders that particular entity has taken, it will come back again into the market for some other school. We. We are one of the player who has I think advertent. I have CDB order book of 2.20 visa 1 which is quite comfortable for installments upcoming. So 1.7 is the new order book that already have which is quite big compared you know to what my. What I’ll be executing. And we are adding more and more. Naturally the new orders will get added to it. But everywhere you have to see the two things. One is that the exhibition capability of the entity which in case of KPI is almost more than a decade of experience in executing wind as well as solar and hybrid project which is a plus point for us and majority of the places we have that our capability helps us to go at a very competitive prices when it comes to a tender bidding and all this. So naturally yes we will be adding more, more and more of this, you know and competitive market because still there are a lot of players who are bidding for it. The test is about who will be able to execute within the timeline. That is.
Operator
Thank you. The next question is line of Ashish Rampuria who is an individual investor. Please go ahead.
Unidentified Participant
Thanks and congrats for the referring. Once again my question, my question. See also sort of also gave a couple of interviews with the result, right? And he spoke about that all the current order books should get executed within this financial year. At least that’s what he spoke about. Maybe the entire IPP might not happen. I’m just trying to understand the order book and pipeline for FY27 and something like FY28, right? Because talking about 60 to 70% CAGRADE till FY230. So do we have any visibility beyond FY26 is sorted, right? So beyond that if you can throw some color for us and also I think link to this question before the President stops me. In that India map where you have shown sort of Odisha MP and Rajasthan, you also shown if I’m not from Andhra Pradesh, right? As one of the highlighted states. So if you can also talk about that around that first I’ll speak about the order book. So if you see that the order book that we have given when it comes to the CPP, we have already the 1.76 visa 1 of upcoming order book that we already have. Other than that, there are also new orders. I mean some I cannot disclose right now which we have already won and where we are going to bid.
Unidentified Speaker
So I think within next six months or the next quarter you will see the increase in the order book, substantial increase in the order book which will cover the entire FY27 also. So order book is not a problem because the sector is very booming and there are, there is a lot of orders and work which is available for a good player like us. So we are very confident that we will be able to close the FIA 27 also entire year in our first or second quarter, max to max. That will help us enough time to close that out. In fact FY28 also will portion will be flowing down because that’s substantial. We have already bidded and we are confident we’ll close it. Moving on to the opening in the other state, I would you know request our Group CEO Dr. Anup Das to just throw some light on this also. Yeah, we’re glad to know your questions. And just about beyond our Gujarat, basically we have signed up three menus of the three different state government. One is Rajasthan, another for np, another for odisa. So where we are clear cut. We have signed our MoU for application. And now at present that every stage there is a basic requirement of the renewable projects and there is a creation of resource in terms of power evacuations and land. Land acquisition. So we have already signed a document for land acquisition and creation. All three states and all three states administration are in close touch with us for the resource creation and all. So this will take typically about if it is a wing or wind related project. So we have to have some data management and all it will take one to two years completely for the data management and creation of power integration also take equal time like one and a half years. So whatever the other space kind of activities will be coming probably after two and a half years onwards. So that is about three states. We are just under status of, you know, progressing to other states. What we are planning for that.
Operator
Thank you. The next question is from the line of Rakesh Banerjee from RP Capital. Please go ahead.
Unidentified Participant
Yeah, good afternoon and congratulations for the wonderful set of numbers. My question is on your unit generation. Like when I did the YUI comparison I found that in this year our unit generation has increased only by 16.9%. Whereas in the last few years we have been growing our unit generation by almost more than 40%. So is there any specific reason that the unit generation has slowed down or. And what will be the color for the. I mean the unit generation in FY26 if you can give some color on that.
Unidentified Speaker
Yeah. So I guess if you see that in FY24 we did 21 and this time it is 24.9. We have set up IPP projects in this year, but they were done in the in the slag end of the quarter four. So the generation will come up in the next year. So approximately if you see we have given you that entire 1.5 gigawatt which is going to set up that will generate approximately 300 crore units per year. So going forward you’ll see a substantial growth into unit generation. This one this year we have added the capacity. But it was throughout the year we had worked on the adding the capacity and it got energized at the end in the month of March. So automatically what happens the unit will start flowing into and these are only IPP unit. The our own planned unit that we are counting that what we have generated. So next year you will find substantial growth. After that it will be further more substantial growth from what the previous year is.
Operator
Thank you. The next question is from the line of part Kotak from Plus 91 Asset Management LLP. Please go ahead. Hi.
Unidentified Participant
Hi. Thanks for the opportunity. I just want to get some color on our CPP realizations. In FY25 we reported a 1500 plus crore of revenue from CPP on 160 megawatts energized implying a realization of about 9 crores per megawatt is significantly above the standard of 4 to 5 crores per megawatt range. Last year’s realization was more aligned with this norm. So the elevated figure this year appears exceptional. But as we look ahead should we expect CPP capacity addition to outpace revenue recognition thereby normalizing realization per megawatt closer to 4,5 crores going forward. And if you could also clarify. I’m sorry for the slightly longer question. Sir, if you can clarify. This year’s higher realization includes elements like land BOS or turnkey EPC that may not be directly tied to megawatts energized. Thank you sir.
Unidentified Speaker
Yeah, but the calculation that you did is not what the calculation. We do see our CPP business, our billing is done on milestone basis. So there are 10 to 15 milestones for any particular project. Milestone depending upon the supply. Milestone depending upon the work contract like piling, you know, installations and everything. So our billing is done on the milestone basis. But we add the capacity only when we energize the entire plant. So there will always be a decide between what is on the. You cannot directly match Apple to Apple your top line Visa VISA energized capacity. As far as the you know the range of per megawatt we are not different. We are not different from what others. So we are range is also around the same 3 to 3.54 odd crore per megawatt. That is what on the solar side and 67 crore per megawatt around the wind side. So we are the industry what is doing? We are also doing the same thing. It’s only the calculation that is done. It’s on milestone basis. So big we book revenue. So maybe there is any particular project where it has. We have completed 80% of the project. But the capacity is not added because we have still not energized that project. So the revenue will get added to the top line. But the capacity only when we complete the entire project gets added. So that’s why you are seeing, you know, you’re finding it difficult to match it up with.
Operator
Thank you. The next question is from the line of Anil Sarni from K16 Advisors. Please go ahead.
Unidentified Participant
Hi, am I audible? Sir, I would please use your handset. Okay, switching to handset now. Yeah, so I’m. I’m curious about the economics of the IPP business. The calls I heard 18%. So if you could, if you could throw some light like what is the, what are the assumptions like you get a certain amount of rupees per unit and what is the cost and what is the equity ratio such that one can get to the equity irr?
Salim Yahoo
Yes. So Anil, first of all let me, I mean we have in our presentation, if you have seen we have given you an average rate per unit. That’s what we have because it is coming from the actual loas that we have. Average rate per unit is around 3 rupees which includes hybrid kind of a plant, which includes solar and wind also. Altogether that what we will be earning as we go forward. Moving on to the debt equity, I mean we usually go with the 75, 25, 75% of a debt from the lender and 25% equity portion. So if you look at the average IRR that we get on an, you know, any project, it would be around 12 to 13% kind of IRR for any IPP project. When I’m talking about IPV project, is this the total project IRR I’m looking at equity IRR equity IR would be around 17 to 18%. 17 to 18%. So if it is like that, would it not drag down the overall roe? I mean in terms of what it looks like, I’m aware that 17, 18 for 25 years is a very, very good number. But in just how it appears optically when your ROC comes down to around 17%. So the blended numbers will. Just for an analyst looking at it on a snapshot basis, the ROC, etc. Would start looking lower. See the EBITDA margin in this, what we are earning is very high. But when the PAT margin comes after the payment of all the debt and nothing, I mean the IR, that’s what we earn is around 70 to 18% on the equity. So your return on equity, the reason that we have to, you know, if you see ROCE return capital employed, naturally the debt portion, as I told earlier also we are capital intensive business. So this will have, this will be going forward will have an impact on the ROCE depending upon but the size or the volume that we will be working with will be huge as we go forward. So, you know the absolute term, it will be a huge percentage. Right. It will slightly move a little bit up or down.
Operator
Thank you. The next question is from the line of Ranjan Sony from RRR Investment. Please go ahead.
Unidentified Participant
Hello. Congratulations on great set of numbers. I just have two questions. So the first is what opportunity does KPI Green sees in battery energy steward system? And since it was mentioned that KPI would start first with captive and accordingly will participate in tenders. So just trying to understand how does the BES actually works. And is there any BESS mandate for psu please? So that was the first question.
Unidentified Speaker
Yeah. So I would request that doctor to pitch in on the BESS because he’s an expert on that bess, you know, battery energy storage system. He’ll give you a little bit brief on that. Basically what is there? Because nowadays you can see that renewable energy penetrations is coming more. So there is a good discipline coming into the picture. So during daytime there are a lot of solar pumping is there and wind is also coming and there is hydro and other thermal projects are coming. So grid getting indisciplined. So major smart grid concepts have come to India. And now we are telling that whatever extra generation that cannot be disturbed to the grid and you can store it in terms of battery. And that battery storage should give the load pattern in sync with the demand of the distribution company. So that could be discussed in a particular time. For example, nowadays every state, state government because mostly projects are coming on the specific state demography. So now state like Rajasthan they have come that all the solar projects should come with the 5% VESS mandatory. That means what? So whatever the solar generation they can store and that will be mandated. And whenever peak time requirement that battery can be discharged. So now this is coming a very mandatory kind of grid requirement where power can be generated based on the resource available. And when the demands come asking then that time it will be disturbed. So like that BESS is coming very, very upcoming technology which can be used for hybrid projects, both wind and solar. So that is a mandate is coming for all, all state together. So that is what the future path and every all the companies doing for the application. And your second question, what was that? So we have lost the connection of the current practices.
Operator
Okay, the next question that is from the line of Kunal Mehta from Pineapple Capital Advisors. Please go ahead.
Unidentified Participant
Am I audible? Yes. So just a couple of questions. Regarding the ITB business of 1,2 megawatt of the UV and L. So do we plan to commission this project in phases and start generating revenue phase by phase or it will be at the totally at the end of the year when the entire 1.2 gigawatt is is energized. That is one and secondly, out of the 1.76 order book gigawatt in CPP, what is the plan? How much can we energize in the current year?
Unidentified Speaker
So on the IPP side if I give you the project that we have already uploaded on the, you know, BSEA websites, also that you know, we have 50 megawatt hybrid, we have 250 megawatt solar, we have 370 megawatt hybrid. So these projects will come in a phase wise manner. As we start completing like 50 is already completed, 50 will be completed, then 370, then another 150. So in a phase wise manner, depending upon the LOA or what is the PPA that we assign it will come into that not all together. 1.5 will come on a one fine day. It will be in a phase wise manner. The second question you asked was on the CPP, right? Hello. Hello. Yes sir, he’s. Yeah. The second question on the CPP side, the 1.76 gigawatt majority of that will get executed this year itself and apart from will flow down to the next year.
Operator
Thank you. The next question is Gaurav from Anuja Properties. Please go ahead.
Hardik Gandhi
Hi. My question has already been answered. Thank you so much. Thank you, Gaurav. Thank you. The next question is from the line of Hardik Gandhi from HPMG shares and securities. Please go ahead. Hello. I’m audible. Yes sir. Yes, congratulations on a good, absolutely amazing set of numbers. Just wanted to know some about the ipp. I know a majority of the questions have been around that. But just to quantify if, if I were to start 1 megawatt of IPP, how much, how many units will I generate in a year and what is the decline over the period of the next 20 to 25 years given that there is a depreciation in the output.
Unidentified Speaker
Yeah. See, 1 megawatt IP you will generate units approximately 15 to 19 lakh units depending upon whether it is tracker based, whether it is a fixed base and all those, you know, different factors. At the panel that you use. All the things, the degradation would be at around 0.42% year on year for, for the next 25 years. That will be the degradation.
Operator
Thank you. The next question is from the line of Debhav Lohai from commercial flights movers. Please go ahead.
Unidentified Participant
I wanted to understand two things. So what is the. How are the margins shaping up for the CPP segment for the new bids? And how is the payment collection efficiency right now? Like are you facing any delays or something? CPP segment, as I told you know, it’s around between 22 to 22%. And as we go forward if we get into more utility scale it will be in that range or a little bit of from 18 to 20% payment has never been a problem.
Unidentified Speaker
We also get advances in this cases if you furnish with the ABG and all those things. So we are able to get our payments on timely manner and execute the project also in a timely manner.
Operator
Thank you. The next question is from the line of Manoj Nath who is an individual investor. Please go ahead.
Unidentified Participant
Hello sir. I have three questions. Sir, are we trying to enter in Green hydrogen through KPI green and by which year will the same will show in our revenue total? Are we currently trying to enter into any international contract? And what is the KPI green target of install capacity till FY 2030? As in presentation only KP group 10 gigawatt target is mentioned. Fine. On the green hydrogen.
Unidentified Speaker
Yes. We are going to get into the green hydrogen segment. And as you know that if you want to get qualified or want to bid for that we would require a strong entity. So as KPI has been a strong entity, we might use KPI Green for getting into Green hydrogen also. Though we have a separate entity for green hydrogen. But there will be a support required from the big brother of the group. You can see on the international side we have already opened an office in Saudi Arabia. And we are also in discussion with other countries. So we are checking into that. What are the. We would like to go with an EPC or a CPP kind of model. And then slowly as we establish ourselves we will go into an IPP model. Moving on to the target of FYI 2030. As you are aware that 10 gigawatt is at a group level that we have, you know, we have given. But looking at the way we are going, I think more around 60 to 70 to 70% would come from KPI and its subsidiaries. Okay. And we might surpass also the target depending upon the way it is going on.
Operator
Thank you. The next question is from the line of Jitendra Ranga who is an individual investor. Please go ahead.
Unidentified Participant
Hello. Yes sir, you are. Yeah. First of all, congratulations for this one result. I have queries related to IPP revenue share in the overall revenue mix. So I find my presentation financial 25 total IPP was like 13% like which to 225 crore of revenue and for financial 24 like 17% which translate to 174 cr of revenue.
Unidentified Speaker
So as per like latest presentation current IPC portfolio is like 5500 to 500 megab. So will it translate to around 600 crore of code of revenue for this year or like full plant will not be commercialized yet. This 503 megawatt if you calculate which includes my existing 170 and the new 240 kava that we have energized another 50 megawatt which we have energy. So we expect that you know the revenue will grow up to, you know we will add a realization of around 50:60 crore on the other side also. So you can see that it will go up to 350 to 400 crore this year. If we add more this year and we start the plant early we will add up to 500 plus kind of a thing.
Operator
Thank you. The next question is from the line of Suman Kumar who is an individual investor. Please go ahead.
Unidentified Participant
Am I audible to you? Hello. Am I audible sir? Yes. So this question is to Mr. Salim on IPC and given that the blended ROC is at around 17 to 18% which means that if we are targeting targeting to grow at 60 to 70% growth over the over the next two to three years does it mean that there will be shortage of capital and hence you’ll have to raise capital either through debt and equity. And hence although the growth overall profit growth would look like 60 to 70% but in terms of EPS if that fund, if the capital was to be funded by raising gross equity then probably EPS wouldn’t be far more weighted than the 60 or 70% group that we are looking at in overall.
Unidentified Speaker
Yeah Suman, the 1.5 gigawatt IPV, what we have in our presentation and all for that equity is already tied up. Whatever funds we have raised and internal accruals that we have earlier, those are kept aside for increasing the ITP portfolio. So now this 1.5 GHz is going to happen in next couple of years. Once we complete that after that we’ll look into whether going further into the IP segment after a couple of years we look into whether how much is the more addition of the IPP. And at that time only we’ll be thinking of increasing the equity portion. But the debt we have already factored, you know for this 1.5 gigawatt and accordingly we have already gotten in principal sanction from majority of the lenders also. So EPS will not fall down because we are not adding any more, you know, equity portion or raising an equity for this 1.50.
Operator
Thank you. The next question is from the line of Mitesh Vora who is an individual investor. Please go ahead.
Unidentified Participant
Yeah, hello. Hi. So last year in the last phone call there was discussion that SBI had that collateral pledging that we had in discussion to have that removed to get it back. What about the progress about that? And the second question regarding the trade receivable, it is. We see that it is consistently increasing. Anything about. Throw some light.
Unidentified Speaker
Yeah, I didn’t get your second question. What is increasing your time? Third rate receivables. Trade receivable. Yeah. Okay. So first of all on the flight side, let me explain you that the pledge which was given to sbi, we have already given a letter. They are already working on it. Because since we are one of the, you know, all our proposal goes to the SBF board. So it has to run pass through a product in a process which is set up by them. So we are awaiting their confirmation on that. So we are. We expect that to get covered as early as possible and close it. As far as state receivable is concerned, you know, from. I think receivables have improved. If you see the number of days we were at 150 plus kind of receivable days, we have come down to 120. So that is a substantial improvement in the receivable. It’s only the number. If you see up to term that might. Because the growth has grown substantially. If you compare it with the top line then it is improvement into the trade receivables. You can say thank you.
Operator
The next question is from the line of Manav Agrawal who is an individual investor. Please go ahead. Mr. Manav, I would request you to unmute your line and speak please. Due to no response from the current participant, we will move on to the next participant. The next question is from the line of Sanjeev Madra who is an individual investor. Please go ahead.
Unidentified Participant
Good afternoon, sir. It’s really hurting to see such good set of numbers once again meeting the expectations. And congrats to management for aid. Thank you. My question is on battery energy storage should win which is for first and foremost in the earning presentation. Sir, has company participated tenders for battery and offshore and for what capacity and amounts and will it be battery energy storage system be manufactured by KPI Green itself Or it will be tying up with some manufacturer for other with another company for its manufacturer. What kind of role basically will KPI have in it?
Unidentified Speaker
Yeah, I want to take in here, Dr. You know, speaking. So basically battery energy is coming and KPI is planning to enter this field. But if you know, because there are certain technicalities are there. We are in the process and explore the market. Because this there’s a policy is there. So KPI is planning to enter this field. Some developing in the proto model other thing. So after having developed everything then after that we can see that what is the market demands or not according to real plan. But yes, this type of diversification we have is unplanning for that. Regarding your second question of offshore we are already in the planning to this stage and we have certain development is already going on. And you know that offshore there’s a policy are in place and governments are declaring certain resources. So at the time of enthusiastic when it is coming in the policy portrait at the particular time we will be close the frame. Thank you.
Operator
Thank you. The next question is from the line of Soham from RV Investments. Please go ahead.
Unidentified Participant
Thank you. Sir, what is the revenue potential of this 1.76 gigawatt of CPP order? 1.76 gigawatt if you see these includes order where we have the entire scope. Whether it is panel, whether it is windmill, everything under our scope. There is also other utility scale project where the key component like panel or windmill will be in the what we say the company scope, not our scope, the developer scope.
Unidentified Speaker
So it depends upon different. Different projects to specifically mention that you know what kind of total per average or something. But altogether, you know this will the order book can go about 3000 crores. Okay, so thanks.
Operator
Thank you. The next follow up question is from the line of Pranjal Soni from RRR Investments. Please go ahead.
Pranjal Soni
My question is when will the IP of sundrops analgesia be launched?
Unidentified Speaker
I mean we already have things. We are in the phase of applying also to the main board. We are also discussing on that. Just waiting for some things to improve the markets to improve a little bit. Because we want to be successful, doesn’t want to get into troubled waters. We don’t want to introduce ourselves. We just wait for the water to spill down and then after that we will come up with an ipo. We have done that in the past and we will surely not let you down this time, sir. And what tentative time? Sorry ma’ am, tentative time like four months, six months. See, I cannot give you a tentative time. But most probably we have plans to by end of this financial year we would like to. We would like to come out depending upon the various other market sentiments and factors which drive the. Which will drive our decisions. Okay. And just wanted a clarity on this 5% vessel mandate is in Rajasthan. It is already. It is mandated or it is going to be mandate? No, it is. It is under the present policy which is declared in the last month it has been mandated that whoever is going for the solar investment so the 5% base is in that embedded facility to be provided.
Operator
Thank you. The next follow up question is from the line of CA Garvit Koreal from Invest Analytical Advisory llc. Please go ahead.
Unidentified Participant
Hi. Thanks for the follow up. I just want to ask on the outlook in respect of the further order inflows that will drive a significant to FY27 and onwards because looking at the current order book we are pretty much confident and you are also providing the guidance for FY26. But how if you can put some color on the order inflow that we are expecting in about 26.
Unidentified Speaker
Yeah, I just answered this question a couple of minutes back. But just to highlight that you know we already have you know bid pipelines where we are confident we will be winning those pipelines. So I think by end of first of the second quarter of the next of this year you will be able to see that Center FY27 is also will be booked by the end of what by the end of the first or second quarter of this year. See that the entire order book will be further going up because we have a lot of in the pipeline and we are very positive that we’ll be winning this tender. Thank you very much.
Operator
Thank you. The next follow up question is from the line of Rajat Gupta from Rajat International. Please go ahead.
Rajat Gupta
Yes, thanks for the opportunity. My question is until when we hope to start generating the free cash flow and what shall be the capex this year and what shall be the possible source of that capex? Thank you.
Unidentified Speaker
So free cash flow. We. I mean if you see this year also we have generated positive cash flows. Okay. And as far as the CAPEX is concerned approximately around 4000 odd crore of Capex is expected to put into the IPP of 1.1 which will be in the face wise manner. This year a portion will go and next year some portion will also. This year I don’t think we have free cash flow sir. Is it? We have 200 crores of free cash flows. If you see the cash flow statement that shall be the net cash flow perhaps. But the free cash flow. That means if you see the operating cash flow from operating activities 208 crores this year we have done. Yes, but that’s already infused with the working capital requirement. And we have already liquidated with the QIP that is also invested and infused with the working capital and capital expenditure. If you see. If you see cash flow from investing activities is 1.87. That is major investment, IPV, plant and cash flow from financing activities the QIP and everything is 1806 crore. That is a separate cash flow and only from operating activities we are seeing. So if you see the net increase in the cash and cash equivalent has been 427 crores. If I add the opening of the last year. So altogether we have 597 crores of cash and cash equivalent at the end of the year.
Operator
Thank you. The next question is from the line of Mihir Van Kotkal who is an individual investor. Please go ahead.
Unidentified Participant
Good evening sir. Congrats on the strong set of numbers. My first question was a little technical. So if you see in our presentation you said that we produced about 25 crore units and our realization was about 3 rupees 8 paisa per unit. So that would about 75 crore of revenue.
Unidentified Speaker
No, no, I’ll just explain you. We have 170 megawatt of plant where we are signed PPA with C and I custom that is corporate and industrial which includes some of the top name like L and T, Color, Tech, UPL, Tata Motors, Indian Air Force. These PPs are differently designed. They are like, you know, whatever unit rate the company pays we will give them 7 to 8% to 10% discount on. So in those PPAs I am earning 8 to 9 rupees at a gross level. And the other PPA which I am doing with government there I am earning three reports. So that’s why if you see that the huge jump that we see in the unit. Visa, Visa, revenue from those units. Right, right. Because it seemed to be like a mismatch. And second thing is in a long term vision when we are looking at 10 gigawatt, how much do you see this coming from out of Gujarat. The majority will be from Gujarat because we are facing Gujarat. We are one of the leading player in Gujarat. But I think you know at least 40 odd person who should come 30 to 40% should come from out of Gujarat like state like Odisha Raj where we have signed the mouse and Maharashtra also.
Operator
Thank you. The next follow up question is on the line of Rohit Singh from Invest Analytical Advisor llp. Please go ahead.
Rohit Singh
Hello. I’m audible. Yes, sir. You mentioned we are going to receive big orders in Q1 and Q2 which will drive the growth for FY27. So can you put some color on? In which area are these orders going to be and what kind of margin profiles?
Unidentified Speaker
Will be are we expecting from these orders? These are utility scale projects which where we will be called it as EPC or a CPP business that we are going to add IPP is already in build up. So 1.5 is no IP is going to come and the margin would range in the range of whatever we are looking at looking 15% that is utility scheme project. And this will be majorly from you know, either any big government entity or you know, some conglomerate. Got it. And so next year if we are going to execute IPP contract. So can we expect a further improvement in net margin in 26 over 25? No. As I told you naturally the moment I energize the IPP contract IPP plant and it starts generating revenue the IPP ebitda is around 80, 85 to 90%. So it will naturally strengthen my margin as I keep on adding more and more. But only that there is a mix of IPP and cpp. The CPP is a EBITDA is lower compared to IPP so automatically they get diluted. And overall EBITDA what I get is around 30 to 33%. So the more I add IPP naturally it will strengthen the EBITDA and the fact the more I add CPP it will a little bit, you know, reduce the margin to a smaller extent. Thank you.
Operator
Thank you. The next follow up question is from the line of Kunal Mehta from Pineapple Capital Advisors. Please go ahead. Mr. Kunal, I would request you to unmute your line and speak please. Due to no response from the current participant, we will move on to the next participant. The next question is from the line of Rakesh Banerjee from Rep Capital. Please go.
Unidentified Participant
Sir, recently we came across one report from Ministry of Renewable Energy whereby we found that there are around 30 gigawatts of renewable energy which are lying and yet to be used because no power purchase agreement has been signed. Now in that context we know that we have around 1.5 gigawatts of you know it coming. So do we have any definitive contract? If you have a definitive contract, is there any cancellability clause within that? So wanted to have some color from you regarding that. Especially considering the 30 gigawatt of excess capacity in IPV could not be signed with any discoms or other counterparts.
Unidentified Speaker
Yeah, like if you see, you know we have 1.5 gigawatt where we have already signed the PPS. So and this is these are signed with UL is one of the best way master or you can say that it’s a. A rated by into the discom if you compare with other discomfort. So we are selective. We sign where we know that the counterparty is very strong and is cash rich. Then only we sign the PPA with them so that we don’t get into because there is a lot of capex investment that has to be done. As far as IPP segmentation. I understand there is a 30 gigawatt but we have to, you know take decision depending upon the other factors like how much equity has to be infused, how much debt has to be taken and how it will impact our profitability margin. You know the ROC ROE that what we have been hearing. So we have to trade between all these factors and then only take. But at present we are comfortable enough with 1.5 gigawatt. As we start completing that. Slowly, slowly we’ll take a call on the availability of. What extra is there in the. Yeah. In terms of the. The sector has to. Fine, fine. Yeah. Just to clarify that rightly you have pointed out about 30 gigawatt there is some sort of news are there obviously KPI as Salinji was telling that we are very determined for the local utility company where we are going for a bidding process and all that you got probably based on the market demand. Obviously it could be a CPU connectivity where power is the power cell. That agreement ESA is under discussion. Probably that could be a figure where 30 gigawatts are coming in the media.
Unidentified Participant
Okay, okay. And so regarding the IPP of 1.5 gigawatt that we’re going to do, Sarah has already alluded that would be requiring around 4000 crores of investments overall. And we see that 1800 crores. 1800 crores has been already invested. Our bank balance or cash equivalent is almost around 597 crore. So which makes it 2400 crore. So what is the source of the rest of the 1600 crores? How companies planning to bring this additional 1600 crores to complete this IP projects?
Unidentified Speaker
Yeah, we have already infused the equity portion or we already have equity portion that is a 25%. We go with a mix of 75, 25, 75 as a debt and 25 as an equity portion for the rest of the 75. We already have in principal sanction from some of the top lenders of the Indian economy you can see or the infrastructure lenders which are there. So we are quite confident that we will be able to get these funds also released in a short period.
Operator
Thank you. The next question is from the line of Samrat Shah who is an individual investor. Please go ahead.
Unidentified Participant
Good evening Sir. Congratulations. Achieving 100 crore plus pack for a quarter. And it is a tremendous achievement for investors like me that have been invested in this company since 180 crore of market cap and now the company has grown up to 8,000 crore. So it gives me a great pleasure. Congratulations for that sir. Thank you. Thank you. Tamar, thanks for the very good work. I have a couple of questions, sir. Firstly, regarding if you see the 202021 interviews of Farooq by he has told that you would be achieving 1 GW of capacity by calendar year 2025 which is this year. So out of that you have done as for the investor PPT. So whether that one visa what would be achieved as guided is my first question.
Salim Yahoo
Yeah, let me answer your first question. What Dr. Faru Patel always speak about he speaks about at a group level. Like 10 gigawatt is also spoken at group level. So 1 gigawatt which he spoke at the time was at a group level. So we have already at a group level. We have already surpassed that long back in FY24 itself. So the commitment usually group level that we have done. Yeah. Your second question. Yeah. Second question was on the risk associated with this business. The context is a couple of months back 66 megawatt order got cancelled from. I wanted to know the not about this particular company, just the reasons by which for which an order gets cancelled because you have long term PPAs with so the orders are not easily cancellable. So how can we expect an order to get cancelled or is it just a one off case sign Burn was not an IPP project. There was no PPA signed. It was an EPC project.
Unidentified Participant
Okay. So we call it as a CPP type and water. We cancelled it from our side because of the issues on the designing side. The customer changed the design and there were issues on his funding because he was tying up for a funding and the financial closure was not happening. So we didn’t want to get stuck in the middle where we have completed a part of the project and he’s the entire project is held because of his incapability of raising funds for his project. So that’s the reason we saw that it is not, you know, forthcoming in a proper way. So we said that we should cancel this order and this is one of the order that we have cancelled because on account of the end use customers inability to raise the funds and other factors.
Operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Rithvik Chauhan for closing comments.
Unidentified Participant
Thank you Tejal. And once again I’d like to thank all the investors and participants who joined us on this call. We’re very pleased to have had a very strong quarter and a strong year. Thanks again to our Group CEO Dr. Anok Das and our Group CFO Salim Yahoo for taking us through this. Please reach out to us in case you have any further questions. We’ll see you again soon.
Operator
Thank you on behalf of shared India security. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.