KPI Green Energy shares fell sharply by over 6% on Tuesday following the company's disappointing Q1 FY2027 earnings announcement. According to The Economic Times, the stock declined 6.14% to trade at ₹346.90 on the BSE, hovering near its 52-week low of ₹335.80. The latest financial results have significantly impacted investor sentiment, with concerns mounting over rising finance costs and higher depreciation expenses despite steady top-line expansion. The stock decline reflects broader investor concerns about the company's profitability challenges amid capacity expansion plans.
KPI Green Energy reported a 14% year-on-year decline in consolidated net profit to ₹95 crore for the quarter ended June 2026, compared to ₹111 crore in the corresponding quarter of the previous year. As per The Economic Times and CNBC TV18 reports, this profit decline occurred despite the company achieving significant revenue growth during the same period. The company's revenue from core operations advanced 16% YoY to ₹710 crore in Q1 FY2027, up from ₹614 crore in the corresponding quarter of the previous financial year, with the latest figures showing ₹710 crore according to the exchange filing. The profit decline was attributed to geopolitical and cost pressures on account of elevated depreciation and financing costs, as the company remained focused on profitable and sustainable long-term growth.
The primary driver behind the profit decline was total expenses that surged 24.5% to ₹579 crore in the June quarter, compared to ₹465 crore in the same period year earlier. According to NSE filings, the cost increase was primarily driven by a 13% rise in cost of raw materials to ₹362.23 crore, from ₹320.95 crore in the corresponding period of the previous financial year. This expense growth significantly outpaced the company's income gains, weighing down overall profitability despite healthy revenue growth. The latest results show rising finance costs and higher depreciation expenses as key factors dragging down profitability, as reported by The Economic Times.
Despite the profit challenges, KPI Green Energy's operational-level earnings before interest, tax, depreciation and amortisation (EBITDA) increased 19% YoY to ₹245.6 crore in Q1 FY2027, compared to ₹205.7 crore in the same period year ago. The company's EBITDA margins expanded to 35.4% in the June quarter, from 34.1% in the same period last year, indicating improved operational efficiency at the core business level. As per CNBC TV18, this margin expansion suggests better operational performance despite the overall profit decline, though investors are now watching the company's debt levels and cash flow as capacity expands to ensure sustainable growth.
The company announced significant leadership changes with Kapil Kriplani appointed as Chief Financial Officer (CFO) effective August 11, replacing Salim Yahoo who has tendered his resignation. According to the exchange filing, the board took on record the resignation tendered by Salim Yahoo from the post of Chief Financial Officer & Key Managerial Personnel of the company through a letter dated August 11, 2026. He will be relieved from his duties in due course, and the effective date of cessation will be intimated accordingly. The company has set an ambitious target to achieve over 10 giga watt (GW) by 2030. At the end of Q1, KPI Green's portfolio capacity stood at 6.94 GW, comprising 1.87 GW of installed capacity and 5.07 GW of work in progress, with power evacuation comprising 5.1 GW and land bank comprising 8,657 acres. Looking ahead, the company management expects rising power demand in India, demand from data centres and round-the-clock renewable energy demand, along with the country's green hydrogen and energy security target to serve as key tailwinds for the upcoming period.
