FY26 closed 56% YoY (vs 60-70% commit).

Our EBITDA margin is continuously squeezing despite the IPP portion expansion. Perhaps this is due to higher borrowing. Is it part of the strategy or is the efficiency lapse? And regarding shareholders' wealth - the EPS growth is not aligning with the company's growth due to higher equity dilution or maybe for something else. Can you guide on the future trajectory?

So Rajat, so your first question was on the EBITDA squeezing. I seem to don't understand. I mean, EBITDA in first half of last year was 37.52%. This time it is 35.79%. So, there is not a too much difference. There might be a slight difference because of the nature of sales booking that happens. Sometimes sales booking happens most on the supply and sometimes on the service component. So, whenever it is a service component, automatically, the margin goes little bit up therefore you will seen a variation of 1% or 2%. But if you look on a standalone basis at KPI, last half year, EBITDA was around 28.34%, . And this half year, it is around 36.95%. There is a substantial increase again in the EBITDA. It has matched up with that. So, I don't see any squeeze in the EBITDA, so for that. IPP portion will further enhance. post energized of 250-megawatt and 50-megawatt IPP portion. The revenue of that is yet to come. So once that revenue starts coming in post energized EBITDA in percentage will increase, These two quarters, because of rainy season the work got elongated. So, that's why the power sale also was lower during this two quarters with the existing. But the new plant, which are now energized will take time to start. So in the second half of the year, we will see substantial growth in the power sale also. And that will automatically further improve the EBITDA. As for EPS - EPS has improved. It is not that EPS has not improved, if you look at what was there earlier in the previous quarter also, if you see, it was INR3.6. which is up to INR4.82 in this quarter. Similarly, if you see half year, last half year, INR4.84 was the EPS. And this half year, it is INR8.49, the basic EPS. As for the future funding - we have not diluted any equity in the last one year after our QIP of INR1,000 crores. After that, there is no dilution after that. Promoter is at present 48%, and you need to also understand, we are into capital-intensive business, where we have IPP, where we have to setup the renewable plant to get annuity income. We are adding more and more capex because that is a 25-year annuity income. And as far as our borrowing is concerned our debt-equity is still at a very comfortable position compared to any other players in the industry. We will always try to keep it below 2, debt to equity.

The government has directed renewable energy implementation agencies to close all legacy bids and cancel letter of awards for renewable energy projects for which PPAs are not feasible, deadline November '25. What is this about and how will it affect future order inflows to KPI Green? Also, is the grid infrastructure ready to cater to the solar expansion capex happening in India? And what is the update on promoter pledge percentage?

On government notification - if you see that government has clearly given a notification that they have to close which are not viable, projects which are not viable at a very low rate. So, nobody participates there. Whatever KPI has participated, it always has got the best rate. If you see the last one which we closed with government is the GUVNL project, our wind one, we have a rate of INR3.64. So, that is one of the best rates in the industry. So, we have closed that PPA also. So as far as KPI is concerned, none of our projects are stuck in any of those -- what we say is the government notification and anything. As far as KPI is concerned, KPI has zero impact because we have already closed all our IPP PPAs. On grid - KPI has evacuation approvals of approximately 3.46 gigawatt in KPI itself, which is far more enough for us to cater for our upcoming projects. Government has focused on enhancing the evacuation infrastructure. There are lot of things. Shortly, you'll see, there will be projects on the transmission lines and everything, which will also come. As far as KPI is concerned, I don't think any impact on us because we have enough evacuation to carry on for the upcoming projects. On pledge - recently, we have got our sanction from SBI. So, our pledge was with SBI. So, we have clearly recommended them for release of the pledge shares. And in our current sanction, we have got an approval that by the end of this COD of GUVNL Projects. After that, within six months, that is we look at around March '27, the entire pledge will be released by State Bank of India. So, we have that in written in the sanction letter.

Congratulations on the financial closure - getting a public listing of bonds and a big loan from SBI is impressive. Why do we have to wait six months for revenue to come after commissioning quickly? We went from 170 megawatt to 535 megawatt own IPP but aren't seeing the revenue. Also on global institutional investors like Vanguard, ADIA, Citadel, BlackRock - none showing up in screener. Why would such large institutions take less than 1% stake?

On revenue delay - out of this additional IPP which we energized, one was 240-megawatt Khavda project. In Khavda project, we have completed our project. But what happened was the evacuation was in the scope of the government. Now, that evacuation GSS, as we call it, government substation was not ready, and it is still taking time. So as per the PPA that we have completed ahead, but government taken time. Government is taking time in setting up the evacuation substation. So shortly, they have already expect to complete the GSS work by December. So automatically, the revenue starts. This was one-off a case where government was delayed because of the project. Whereas the 50 megawatts we did, we already started getting the revenue from September 2025. On institutions - Vanguard has got more than 1%, but with different names, Vanguard Investment Fund, Vanguard Fortnight Fund. Similarly Abu Dhabi Investment Pension Fund and others, all have got with different names. So, what happens when if it's calculated at the screener, it will show you that they are below one. But if you look cumulative data, they are higher in numbers. So they don't put it from one fund. they put from different funds. government pension fund globally is 1.7% as on September 25.

There is a common worry about the overall prospect of renewable energy with respect to evacuation grid stability. Government now thinking of scrapping certain projects with 42 projects lying without PPA. Can you throw light on the sector position? Also, grid instability causing curtailment - is that going to cause problems for solar?

Our company has got a strong IPP portfolio and all these PPAs are signed. We are into execution mode. So, we don't have to worry about this. So once we have 1.5 years, as I told you, the IPP revenue itself will be more than INR1,000 crores with a 90% of EBITDA. So, our company doesn't have to worry on the cancelling PPAs or the news that which are going around. As for these PPAs - they are projects which were not viable. Now once again, they will come back because the government focus is already there on the net zero and capacity gigawatt increase to 500 gigawatts. But the only thing is that the project, which were not viable, government is cancelling and they will come up with a new pricing or new strategy for floating out of the project. But as far as KPI is concerned, we have already cleared all our projects on the IPP side. On grid instability - as far as our company is concerned, it automatically, we have signed a long-term PPA with the DISCOM. And DISCOM which in our case is GUVNL, which is one of the best DISCOM in the entire country. So, we don't have to worry about that because we will generate the power. DISCOM is liable to take that power. So, our revenue will not impact. And regarding solar, there was also worry about too much of panel manufacturing capacity in place and everything. But I don't see that, as there is a market for everybody at this stage also, and the sector is expected to grow.

Can you help me with the quarter 2 numbers for Sun Drops Energia? Any target for the revenue? What are the PAT numbers? When are you trying to list this company?

In quarter 2, we have done INR125-odd crores top line with a similar kind of profitability. And we expect that since both the quarters, I mean, quarter 1 and quarter 2, more of a seasonality, rainy season, it was at a lower level. But the next half, you will have -- you'll see substantial growth in the Sun Drops top line in the coming second half. We are planning. I mean, we are looking at around 65% to 70% more than what we have done in the previous year. PAT is on a similar range of 16% to 18% kind of a PAT. Most probably next financial year, we'll be planning the listing.

About the order and sub-ordering between KP Energy and KPI Green - we have given an order of 1.2 gigawatt subcontracted to KP Energy. KP Energy will be paying 2% royalty on this order when it converts to revenue. And KPI Green will be paying 2% royalty again for the same order for the life when revenue starts coming - is this double booking of revenue?

No, no, no. See, this is an execution order. For KPI, there is no revenue till the business starts. Now once we -- that EPC order will be given to KP Energy. So, only KP Energy will have the revenue. So it is not a double booking of the revenue. It is only IPP to KPI. The EPC contract is of whatever amount, INR3,000 crores odd, that is given to KP Energy. KP Energy is executing that, and that is its business of executing the order because it's a wind, so hybrid also. So it is executing the entire order over there. The panels are purchased directly by KPI. It is not part of the order also. So, what exactly KP Energy is getting is at least you can say 60% of the total order. Now after that project is executed and after that, when that particular plant will start generating revenue, on that revenue, it is the 2% of which KPI will be paying because that is the revenue of KPI. So it is not a -- you cannot call it as a duplication because these are two different ways of looking at it. If I'm generating -- so for example, till now KPI has executed 500 megawatt. Now 500 megawatt, whatever revenue comes in, it is giving a royalty on that only.

In Q2 FY '25 concall, 1.1 gigawatt of CPP orders were supposed to be executed by September '26, but out of that, only 224 megawatts has been executed. Can you explain the reason for delay? Also, as there has been no equity dilution in the past one year, why is there a difference between EPS and PAT growth? What is the ROE figure of H2 FY '26?

There is not a delay. If you look at CPP execution, we count the megawatt only when we complete the entire order. So there are orders, which we have completed 70%, 80%, but megawatt has not been counted into. Like MAHAGENCO, we have executed majority of the orders. CIL, we have executed majority of the orders. We have executed other majority. So once we complete the COD, then only we added. So if you compare the top line or anything or we only take once we complete the entire order. So, that's why you'll see that variation in that. On EPS vs PAT - EPS depends upon your profitability also. The number of shares which are there after bonus and everything, they have increased. So, we had given in the past. In the past, we have given bonus and everything because of that. But as far as dilution is concerned, if you see promoters' equity, promoter shareholding has never sell shares in the past. It is still at more than 48%. ROE is around 20%.

Your collaboration with Fabtech Technologies - recently received an order for UAE. Is the whole project our order or is revenue shared between the two? What is the execution timeline for this order?

As you are aware, right, especially with the AI boom that's happening out in the West, data centers is one of the largest and will be going to be one of the largest consumers of electricity. And what we have essentially done is that partner with them to establish a data energy stream, which KP Group will provide to them for their data centers and also the life sciences segment that they cater to. So it's a large order and a large collaboration, which we would be doing both in the Middle East as well as within the Indian geography as and when they develop their data centers and other life science projects. The entire order value, which you quote, right, is only the renewable energy segment of it, the project execution. And to answer you shortly, it will be 100% recognized in our order book. It's only the renewable project execution that we're talking about, not the data center itself. No revenue from data center will be incurred in our books. I think you can take a good horizon of 2 to 3 years as they build data centers across Middle East and India.

What is the peak revenue that can be achieved on the current IPP capacity when energized? EBITDA margin of 90% - what is the PBT margin one can assume to model future cash flows? And for order wins, how much IPP and CPP order wins are you looking at for next 2-3 years - can we expect 4-5 gigawatt in FY27/FY28?

The peak revenue, as I told you earlier also that total capacity will be 1.7 gigawatts. After that, the peak revenue, we expect that approximately more than INR1,000 crores. the EBITDA will be around 90%, Now the PBT and the PAT depends upon the mix of CPP also. Only IPP segment, if you look at it, there is a repayment, there is interest cost and everything that has to be taken into consideration. So, approximately 40% or 45% should be the PBDT around that. On IPP - By FY '26, that March '26, we will be around more than 1 gigawatt on the IPP side and remaining by September or December '26, we will be closing. So, 1.5 gigawatt IPP will be there by December '26, you can say. As far as CPP is concerned, by FY '26 or '27 March, you will be seeing the entire CPP order, which we have right now is getting closed. On overall group target - we are already bidding and we have a bidding success rate of 75%. Our Honorable CMD sir, Dr. Faruk sir has clearly said that the target looks very small right now with 10 gigawatt. We already have 6.6 gigawatt at the group level with us. So automatically, we expect this 10 gigawatt turning there. The internal target for KPI was 1 gigawatt for 2025, where currently we are sitting at 6 gigawatt today. And by the end of the target -- the internal target. The initial target for 2025 that we had taken was 1 gigawatt. 2030 was 10 gigawatt. Against that 1 gigawatt, which we had taken in 2025, today, we stand at a group level portfolio of 6 gigawatt. And by this financial year-end, I think that would go up easily by 1 more gigawatt.

On grid stability - is there any chance that delays in power transmission execution could further lead to delay in renewable capex going ahead?

Grid sector, now today that whatever the project is coming, all transmission companies, they first see that what is the load flow study of the grid? Based on the load flow study of the grid, they give the power execution permission. Now today's scenario has come, there is the hybridization, RTC and all. So if there is a time gap between the wind, solar, battery storage and all, so they want to think all power output and think to the power so that there should be smart grid implementations happening. So now all transmission companies, be it power grid company central level or state transmission unit, they are coming for the load flow stabilization. Based on the generation and consumption, they are coming to smart grid applicability with a disciplinary system called DSM arrangement. So, you have to generate and consume between the 15-minute generation and consumption, you have to think. So that is what is coming for the power grid discipline. That is happening today. So, there should not be any curtailment in future.

Any update on the pledge shares release discussed on the last concall? Given the extended monsoon period this time all over the country, are we on track to achieve the 70% guidance communicated by Faruk sir?

As far as pledge is concerned, I've already explained in the previous question. I'll just reiterate that. In our latest sanction, see, our pledge is with the State Bank of India or our existing term loan that we have taken. It's a collateral. It's not a pledge against shares or a fund raise against shares. So, that collateral is also going to get released once we complete this 1.2 gigawatt, the funding which they have given INR3,200 crores. By September '26, we will be doing the COD and after that, within 6 months. So by March '27, SBI will release the pledge for all our shares, and that is clear cut terms and conditions in our sanction letter from SBI. So pledge -- as far as pledge is concerned, shortly will be -- by March '27, all the pledge will be removed from the shareholding, which promoters' pledge are there. As far as monsoon is concerned, yes, we are already tied up. We have -- I mean, in spite of such longer monsoon, we have shown a substantial good result. So, you can understand that. Going forward, it will be a far more better result than what we have done in the first half because we have taken -- we have hedged our panels and everything have been -- delivery has been taken place. So, we will be focusing on faster execution, whether it's on the CPP side or the IPP side. So yes, we will grow faster.

On the ICRA report that came at the end of July - one of the points mentioned was a weak exit clause in the PPA where the party can terminate with 6 months. Is it different from a regular PPA in this industry?

So you need to understand in IPP, we have two segments. One is the C&I segment, that is the third-party open access in which we have 170 megawatts and the other is the utility or GUVNL, where we don't have any exit clause. It's 25-year PPA. Now the 170 megawatts, there our PPA are designed in such a way whatever the DISCOM rate is there, I will give 7% to 8% kind of a discount to the customer on its rate. So for example, if the rate is INR 7 or something, I'll give 7%, 10% discount on that. So automatically, INR 0.56 kind of a discount will be there and the remaining else. So in those PPAs, we are earning at a rate of INR6 per unit, so in good PPAs. Because there are big customers like Colourtex, Meghmani, Tata Motors etc So, we have kept it open for them. But believe me, we started this particular open-access PPAs in the right from 2018 onwards when we started that. So first one, we had Mafatlal and all other companies as a PPA. Today, also we have 80% of our PPAs are AA+ clients, and they are increasing. For example, we started with 1 PPA with Colourtex. Now, they have 3 to 4 PPAs and everything they are extending. So in spite of having that exit clause, we have -- they have never exited because of any pricing or anything because it's a clear cut that every unit has a different, different PPAs with us. And on the same 170-megawatt cash flows, we have raised the NCD green bonds.

There is a persistent RPT concern with three companies and revenue booked here and there. Why not upload a presentation showing who gives what order to whom and what the commercials are - showing there is no revenue double counting?

No, no, no. I've just explained on one of the questions about the revenue double counting confusion, which one of the investors had. So let me be clear. First is about KP. KP is a brand. KP is a trademark. And that's the reason every company has that trademark at the start, just like you have Adani or you have Reliance. So, we have a trademark. That is a brand which is known -- we are known by KP Group. Secondly, on the execution side, every order which is given is at arm's length. There is no benefit given to any of the companies. It is at arm's length. What I would be giving outside, I am giving at the same cost and everything to my group company. And they are also executing the same way that they are doing for the other company. So, I don't think any issue with respect to the -- but nevertheless, what you have said, I will surely see to it that next time onwards in the full-year presentation, everything we will clearly mention about or we'll put a slide, which will give a little bit more explanation about the related-party transaction, which I understand that analysts have a little bit inhibition with respect to the related-party transaction. Your point is taken. We'll try to put in the third quarter. Third quarter presentation, we'll try to put that.

In 2021, there was a target that PAT will be INR1000 crores. Are we still on track for that?

So, naturally, I told you that as soon as our IPP starts, it's a 1.7-gigawatt IPP. Its top line will be around INR1,000 crores with an EBITDA of 90%. So, as soon as we go down, we will automatically add the business of CPP. So, we are looking forward in a couple of years. FY27, after March, our PAT, we are expecting to, as per our projections, we might go up to that level. We have talked about revenue and we have also said that your profit will automatically be maintained. In fact, it will increase. The more the IPP, the more your profit and margin will also increase. Not December. It will be 1.5. And the order of 150 megawatts, you must have read it, recently PPA was signed. We will also add that. So, we will add other orders. So, I think after March '27, we will have 1.7. All together.