CRISIL Reaffirms KPI Green Energy’s INR 670 Crore NCD Rating at AA+ (CE)/Stable, Flags INR 2,750 Crore Debt-Funded Wind and BESS Capex

CRISIL Ratings has reaffirmed its ‘CRISIL AA+ (CE)/Stable’ rating on the ₹670 crore Non-Convertible Debentures (NCDs) issued by KPI Green Energy Limited. The rating action was disclosed by the company on September 16, 2026, following CRISIL’s rating rationale dated September 15, 2026.

KPI Green Energy had issued the ₹670 crore NCDs in September 2025, with a 60-month tenure and quarterly repayment of principal and interest. Following the September 2026 payout, the outstanding principal stood at ₹572.85 crore. The amortisation of the NCDs has increased the guarantee coverage from 65% of the original issue size to 76% of the outstanding principal.

The NCDs are supported by an unconditional and irrevocable partial guarantee from GuarantCo, along with a rolling Debt Service Reserve Account (DSRA) covering the immediately succeeding quarter’s principal and interest payments. KPI Green Energy has also provided a ₹100 crore security deposit in the form of a fixed deposit.

The debentures are further secured by first-ranking exclusive charges over specified receivables and cash inflows from renewable energy assets, including a 110 MW revenue-generating Independent Power Producer (IPP) project of KPI Green Energy, a 24.7 MW IPP project of KPIG Energia, and a 10 MW IPP project of KPARK Sunbeat. The security structure requires a minimum cover of 1.2 times the outstanding principal and unpaid interest.

CRISIL highlighted KPI Green Energy’s established position in the engineering, procurement and construction (EPC) and IPP segments for renewable power projects. The company has executed close to 1.87 GW of capacity and had an order book of more than 5.07 GW as of August 11, 2026. The rating agency also noted the secured cash flows from the company’s existing solar and wind assets.

KPI Green Energy operates an IPP portfolio of around 1.16 GW, including partially commissioned capacities from a 250 MW solar project and a 370 MW hybrid project in Gujarat.

At the same time, CRISIL identified the company’s planned capital expenditure as a key factor to monitor. KPI Green Energy plans to undertake around ₹2,750 crore of debt-funded capex over the next one to two financial years for a 150 MW wind project and 565 MW/1,130 MWh standalone Battery Energy Storage System (BESS) projects. CRISIL said timely execution and commercialisation of these projects would remain important.

For FY2025-26, KPI Green Energy reported CRISIL-adjusted operating income of ₹2,697 crore, profit after tax of ₹509 crore, adjusted net worth of ₹3,194 crore, and interest coverage of 5.5 times.

CRISIL has maintained a Stable outlook on the NCD rating. The rating agency identified timely servicing of scheduled payments and continued coverage through the guarantee as potential positive factors, while deterioration in the credit profiles of KPI Green Energy or the guarantor, or non-adherence to key terms, could exert downward pressure on the rating.