ICRA Limited has reaffirmed the credit ratings for KPI Green Energy Limited’s bank facilities and Non-Convertible Debentures (NCDs). The ratings reflect the company’s improved scale and profitability in FY2026, driven by higher order execution and new capacity commissioning. ICRA anticipates sustained revenue and profitability growth in FY2027, supported by a healthy order book and ongoing project execution.
ICRA Reaffirms Key Credit Ratings for KPI Green Energy
On September 22, 2026, ICRA Limited announced the reaffirmation of credit ratings for KPI Green Energy Limited’s various financial instruments. This includes reaffirmations for bank facilities and the company’s Non-Convertible Debentures (NCDs), with certain facilities also being assigned enhanced amounts.
Bank Facility Ratings
ICRA has maintained the [ICRA]A (Stable) rating for long-term fund-based facilities, including term loans and cash credit, with the term loan amount seeing an increase to Rs. 4937.61 crore from Rs. 4009.54 crore. Short-term facilities, such as working capital demand loans and bill discounting, have been reaffirmed at [ICRA]A2+, with the bill discounting limit expanding to Rs. 350.00 crore from Rs. 50.00 crore.
The non-fund based bank guarantee rating has also been reaffirmed at [ICRA]A2+, with the sanctioned amount increasing to Rs. 1036.00 crore from Rs. 988.00 crore. The unallocated limits for long-term/short-term instruments carry a reaffirmed rating of [ICRA]A (Stable)/[ICRA]A2+, with a reduced amount of Rs. 0.39 crore.
Non-Convertible Debentures Rating
The Non-Convertible Debentures (NCDs) have been reaffirmed at [ICRA]AA+ (CE) (Stable). This rating reflects the credit enhancement provided by GuarantCo Limited. The total rated amount for NCDs stands at Rs. 594.63 crore, a decrease from the previous Rs. 643.20 crore, indicating redemptions totaling Rs. 75.37 crore.
Rationale Behind Ratings
The reaffirmation of the [ICRA]A (Stable)/[ICRA]A2+ ratings is driven by the company’s improved scale and profitability in FY2026, attributed to higher execution of captive power plant (CPP)/engineering, procurement and construction (EPC) orders and the commissioning of additional independent power producer (IPP) capacity. ICRA expects sustained revenue and profitability growth in FY2027, supported by ongoing CPP order execution, contributions from new IPP projects, and anticipated commissioning of under-construction IPP projects.
Consolidated revenue increased to Rs. 2,695.9 crore in FY2026 from Rs. 1,736.8 crore in FY2025, with OPBDITA rising to Rs. 957.8 crore from Rs. 562.6 crore. The company maintains a healthy CPP/EPC order book, standing at approximately Rs. 4,700 crore as of June 2026.
The [ICRA]AA+(CE) (Stable) rating for the NCD programme is based on the strength of the partial credit guarantee provided by GuarantCo Limited. The company has demonstrated timely debt servicing for its NCD programme.
Key Financial Indicators
Key financial indicators show a consolidated revenue of Rs. 2,695.9 crore in FY2026, with OPBDIT/OI at 35.5%. Total debt to OPBDIT stood at 5.8 times in FY2026. The company’s liquidity position is assessed as adequate, supported by healthy cash accruals and equity infusions. The rated NCD benefits from a partial guarantee from GuarantCo covering 65.0% of the initial issuance amount.
Source: BSE
