Order Book Or Contract Wins
Expected: 12-18 monthsHIGH confidence
What: Order Book Value: ₹2,600+ Cr
“the 2.18 what we have disclosed as the current order in hand... in terms of value, it will be roughly around INR 2,600 plus crores.”
KP Energy Ltd: Is It a Deep Value Opportunity?
StrongAccelerating
As of , KP Energy Ltd (Engineering - Turnkey Services) has a deep value score of 66/100 (rated Strong). Earnings are accelerating. 1Y return vs Nifty 500: -20%.
KP Energy Ltd Key Facts
- PE Ratio
- 13.0x
- Market Cap
- ₹2,362 Cr
- Value Score
- 66/100
- Margin of Safety
- 224%
- PAT Growth YoY
- +72%
- Revenue Growth YoY
- +58%
- OPM
- 21.0%
PE: Near TroughMax Opportunity
What's Happening
📈PE contracting while earnings accelerate — market hasn't priced in the growth
🎯Earnings accelerating with expanding margins — double tailwind
💪Debt reduced 32% YoY — balance sheet strengthening
💰Trading 224% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
12-18 monthsHIGH
2. Tam Expansion Changing Consumption
3-5 yearsMEDIUM
3. Operating Leverage Inflection
Current QuarterMEDIUM
Key Risks
1. Policy and regulatory framework deferment has delayed some order bookings
MEDIUM2. Potential increase in raw material costs for turbines and structures
LOWSector-Specific Signals
Order Book2.18 GW
Order Book Value₹2,600 Cr
O&M Portfolio644 MW
IPP Portfolio48.5 MW
Key Numbers
PAT Growth YoY
+72%
Accelerating
Revenue YoY
+58%
Stable
Operating Margin
21.0%
+300 bps YoY
PE Ratio
13.0
PEG Ratio
0.13
Current Price
₹349
Dividend Yield
0.19%
3Y PAT CAGR
+60%
Market Cap
2.4K Cr
Valuation
Significantly UndervaluedWhy Are KP Energy Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Tam Expansion Changing Consumption
Expected: 3-5 yearsMEDIUM confidence
What: Offshore Wind Potential: 70 GW
“70 GW offshore wind energy potential in India... VGF of up to INR 7,453 Crs for 1 GW”
Operating Leverage Inflection
Expected: Current QuarterMEDIUM confidence
What: EBITDA Growth: 75%
“Profitability is currently at consolidated EBITDA of the third quarter of FY '26 at INR 77.2 crores, representing a 75% increase”
EBITDA growth of 75% YoY
HIGH confidence
What: EBITDA growth of 75% YoY
“consolidated EBITDA of the third quarter of FY '26 at INR 77.2 crores, representing a 75% increase in comparison to the third quarter of FY '25”
What Are the Key Risks for KP Energy Ltd?
Earnings deceleration risks from management commentary
Policy and regulatory framework deferment has delayed some order bookings
MEDIUMTrigger: Connectivity procedures and regulatory changes in Gujarat-based projects.
Management view: Management expects closure of these orders in the ongoing quarter.
Monitor: regulatory
Potential increase in raw material costs for turbines and structures
LOWTrigger: Global commodity price volatility and tariff issues.
Management view: Natural hedging at the time of order booking and escalation clauses in contracts.
Monitor: commodity
What Is KP Energy Ltd's Management Saying?
Key quotes from recent conference calls
“You had told that the company will be giving, will be progressing around 60% to 70% year-on-year basis. [Previous Top line growth guidance]”
“government of India has given a clear-cut directive that you have to develop by 2030 about one gigawatt offshore wind power. [Initiative: Offshore Wind Development]”
“our target at KP Energy is to have 100 megawatt of IPP overall by 2027-28. And here, we have already completed 48.5. [Initiative: IPP Portfolio Expansion]”
“there are certain policy and regulatory framework deferment has been happening because of, some sort of connectivity procedures and all. [Risk (regulatory): MEDIUM]”
What Did KP Energy Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹347.6 Cr
YoY +63%
Why: The company reported the highest ever quarterly total revenue on a consolidated basis across all the third quarters of KP Energy.
Revenue growth was driven by consistent execution and operational improvements.
EBITDA
₹77.2 Cr
YoY +75%Margin 22.2%
Why: Profitability increased due to consistent execution and operational improvements with steady progress in the right direction.
EBITDA growth outpaced revenue growth, indicating margin expansion.
PAT
₹41.3 Cr
YoY +57%
Why: The profit after tax for the third quarter of FY '26 is reported at INR 41.3 crores, compared to INR 26.4 crores in the third quarter.
PAT growth remains healthy, though slightly lower than EBITDA growth due to depreciation and interest costs.
Other Highlights
• Basic EPS for Q3 FY26 stood at ₹6.18, reflecting a growth of 56% year-over-year.
• Cash flow from operations was confirmed as positive for the nine months ended December 31, 2025.
• The O&M service portfolio has crossed 600 megawatts, currently standing at 644 plus megawatt.
What Sector Metrics Matter for KP Energy Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
2.18 GW
Why: Includes multiple orders to be executed over 12-18 months.
Order Book Value
₹2,600 Cr
Why: Represents the value of the 2.18 GW CPP projects in hand.
O&M Portfolio
644 MW
Why: The portfolio has crossed 600 megawatts, providing end-to-end support.
IPP Portfolio
48.5 MW
Why: Includes 37 MW wind and 11.5 MW DC solar power projects.
Units Generated from IPP
2.21 Cr
YoY +202.7%
Why: Rose from 0.73 crores in the previous year's third quarter.
Realisation per MW
₹7.5 - ₹8.0 Cr
Why: Depends on scope including WTG, EHV, and 33 KV line components.
Bid Pipeline
500 MW
Why: Consists of direct bidding and non-bid EPC/BOS portions.
KPI Green Order Share
70%
Why: KPI is outsourcing its IPP plant expertise to KP Energy.
What Is KP Energy Ltd's Management Guidance?
Forward-looking targets from management for FY26 and FY27
Revenue Growth Target
50%
Revenue Outlook
50%-60% growth
Volume
Order book execution timeline
Management Tone: BULLISH
Guidance Changes
LOWERED
Growth Trajectory: 60% to 70% → 50% to 60%
How Fast Is KP Energy Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +58% | +51% | Stable |
| PAT (Net Profit) | +72% | +60% | Accelerating |
| OPM | 21.0% | +300 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Engineering - Turnkey Services
Frequently Asked Questions: KP Energy Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is KP Energy Ltd's deep value score?
KP Energy Ltd has a deep value score of 66/100 (rated Strong). This score is calculated from three components
- Earnings Score: 36/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is KP Energy Ltd fundamentally improving?
KP Energy Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +90%
- Previous Quarter PAT Growth (QoQ): +15%
- 2 Quarters Ago PAT Growth (QoQ): +41%
- PAT Acceleration: +24.5pp (profits are accelerating)
- 3 consecutive quarters of positive PAT growth
Why is KP Energy Ltd underperforming despite good earnings?
KP Energy Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -20%
- 6-Month Return vs Nifty 500: -8%
- 3-Month Return vs Nifty 500: +18%
- Yet average quarterly PAT growth is +49% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for KP Energy Ltd?
KP Energy Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: +41% → +15% → +90% (2Q ago → 1Q ago → latest)
- Acceleration: +24.5pp
- PAT YoY Growth: +72%
Is KP Energy Ltd undervalued?
KP Energy Ltd's valuation metrics
- Price-to-Earnings (PE): 12.9x
- Price-to-Book (PB): 4.5x
- PEG Ratio: 0.1x
- Margin of Safety: +276% (appears undervalued)
What are the revenue and margin trends for KP Energy Ltd?
KP Energy Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +83%
- Average Quarterly Revenue Growth: +45%
- Revenue Acceleration: +23.1pp
- Latest OPM Change: -0.9pp (margins contracting)
- Average OPM Change: -0.5pp
- Revenue YoY: +58%
What is KP Energy Ltd's trailing twelve month (TTM) performance?
KP Energy Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹181 Cr
- TTM PAT Growth: +57.4% YoY
- TTM Revenue: ₹1,000 Cr
- TTM Revenue Growth: +59.4% YoY
- TTM Operating Margin: 21.6%
What sector does KP Energy Ltd belong to?
KP Energy Ltd key facts
- Sector: Engineering - Turnkey Services
- Market Cap: ₹2.4K Cr
- Rank in Engineering - Turnkey Services: #2 by value score
- Overall rank among all deep value stocks: #31
Is KP Energy Ltd a good deep value opportunity to study?
KP Energy Ltd shows strong deep value signals — good score (66/100), accelerating earnings, and significant underperformance vs Nifty.
- Value Score: 66/100 (Strong)
- Earnings: Accelerating
- 1Y Underperformance: -20% vs Nifty 500
What is the bull and bear case for KP Energy Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 3 consecutive quarters of positive PAT growth
- Appears undervalued based on fair value analysis
- Revenue growth also accelerating
Risk Factors (Bear Case)
- Operating margins contracting
Which other Engineering - Turnkey Services stocks are deep value opportunities?
Other deep value stocks in Engineering - Turnkey Services
- Ganesh Green Bharat Ltd — Score 49/100, Average, earnings accelerating
How does the Engineering - Turnkey Services sector look for deep value?
Engineering - Turnkey Services deep value sector overview
- 2 deep value stocks in this sector
- Average value score: 58/100
- Avg PAT acceleration: +38.2pp
- Top pick: Ganesh Green Bharat Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for KP Energy Ltd?
KP Energy Ltd has 4 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins
- Tam Expansion Changing Consumption
- Operating Leverage Inflection
- EBITDA growth of 75% YoY
What are the key risks in KP Energy Ltd?
KP Energy Ltd has 2 key risks worth monitoring
- Policy and regulatory framework deferment has delayed some order bookings
- Potential increase in raw material costs for turbines and structures
What did KP Energy Ltd's management say in the latest earnings call?
In Q3 FY26, KP Energy Ltd's management highlighted
- "You had told that the company will be giving, will be progressing around 60% to 70% year-on-year basis. [Previous Top line growth guidance]"
- "government of India has given a clear-cut directive that you have to develop by 2030 about one gigawatt offshore wind power. [Initiative: Offshore Wi..."
- "our target at KP Energy is to have 100 megawatt of IPP overall by 2027-28. And here, we have already completed 48.5. [Initiative: IPP Portfolio Expan..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.