GKENERGYNSEQ4 & FY 2026May 19, 2026

GK Energy Limited

10,790words
161turns
17analyst exchanges
1executives
Management on call
Sunil Malu Chief Financial Officer
GK ENERGY LIMITED.
Key numbers — 40 extracted
INR 1,532.54 crore
g a quick overview on the past performance. In FY26, our standalone revenue from the operation is INR 1,532.54 crores. It represents 40% growth Y-o-Y. Last year, we had done INR1,094 crores of business. If I talk a
40%
ormance. In FY26, our standalone revenue from the operation is INR 1,532.54 crores. It represents 40% growth Y-o-Y. Last year, we had done INR1,094 crores of business. If I talk about the EBITDA leve
INR1,094 crore
om the operation is INR 1,532.54 crores. It represents 40% growth Y-o-Y. Last year, we had done INR1,094 crores of business. If I talk about the EBITDA level, then in standalone EBITDA for the year is INR 313
INR 313 crore
4 crores of business. If I talk about the EBITDA level, then in standalone EBITDA for the year is INR 313 crores with 53.49% growth comparatively to INR 204 crores in last year. This is having the margin expan
53.49%
. If I talk about the EBITDA level, then in standalone EBITDA for the year is INR 313 crores with 53.49% growth comparatively to INR 204 crores in last year. This is having the margin expanding to 20.44
INR 204 crore
vel, then in standalone EBITDA for the year is INR 313 crores with 53.49% growth comparatively to INR 204 crores in last year. This is having the margin expanding to 20.44% compared to 18.64% in FY25. Now fo
20.44%
3.49% growth comparatively to INR 204 crores in last year. This is having the margin expanding to 20.44% compared to 18.64% in FY25. Now for what everyone is working, like PAT, after tax paid money if w
18.64%
atively to INR 204 crores in last year. This is having the margin expanding to 20.44% compared to 18.64% in FY25. Now for what everyone is working, like PAT, after tax paid money if we talk about, right
INR 1,500 crore
ut, right? So, at this is the first time in the history, GK Energy has crossed the revenue of the INR 1,500 crores. We have profit side, so profit we have INR 201 crores. It is a 51% Y-o-Y growth comparatively
INR 201 crore
GK Energy has crossed the revenue of the INR 1,500 crores. We have profit side, so profit we have INR 201 crores. It is a 51% Y-o-Y growth comparatively to INR 133 crores last year. So, if I talk about the PAT
51%
e revenue of the INR 1,500 crores. We have profit side, so profit we have INR 201 crores. It is a 51% Y-o-Y growth comparatively to INR 133 crores last year. So, if I talk about the PAT side, then we
INR 133 crore
We have profit side, so profit we have INR 201 crores. It is a 51% Y-o-Y growth comparatively to INR 133 crores last year. So, if I talk about the PAT side, then we have improved from 12% to 13% in the compar
Guidance — 20 items
Gopal Kabra
opening
“In FY26, our standalone revenue from the operation is INR 1,532.54 crores.”
Gopal Kabra
opening
“This is having the margin expanding to 20.44% compared to 18.64% in FY25.”
Gopal Kabra
opening
“PAT side if we are talk about, then current close quarter is INR 59.05 crores is PAT, where which is almost 25% growth I would say, where with the last year it was INR 44.84 crores in Q4 FY25.”
Gopal Kabra
opening
“Now when we talk about the number of system installations, so we have installed 17,018 systems during last quarter of FY26, which is 15% growth over to 14,797 systems in Quarter 4 of FY25.”
Gopal Kabra
opening
“So, if we talk about the working capital, because we are the basically asset-light model where working capital is much more important, so our net working capital stood at 112 in standalone - -in console level of FY26 compared to 90 days in FY25.”
Gopal Kabra
opening
“At the same time, we ended FY26 with the net surplus cash and cash equivalent is INR 240 crores compared to net debt position of INR 155 crores in FY25, which it’s a very good positive acceleration growth symptom for us to go ahead.”
Gopal Kabra
opening
“Operationally, we have installed 61,000 plus systems in FY26, that is 34% increase over the last year.”
Tanmay Jhaveri
qa
“Sir, my second question was how do we look our FY27 growth perspective?”
Tanmay Jhaveri
qa
“So, how are we looking at growth trajectory, revenue visibility for FY27?”
Gopal Kabra
qa
“So, we are expecting that it will be good.”
Risks & concerns — 5 flagged
So, we started with the roof-top, once we even we have to start the roof-top because of the pressure of my customer from the solar pumping side.
— Gopal Kabra
So, what other steps are we taking to mitigate this volatility risk in margin?
— Vishvender Singh
Sir, just wanted to understand what is happening with the tendering activity overall and is there competitive intensity because what we hear is that realizations and margins probably can be under pressure going ahead.
— Aashish
Can you help us understand the slowdown in this specific quarter?
— Jeet Jhaveri
Because more than five years projection is very difficult because right now the geopolitical scenario if we see that on the lighter mode, even we are not aware of that what will happen into the another six month.
— Gopal Kabra
Q&A — 17 exchanges
Q
Hi, sir. Congratulations to you and your entire team for delivering good set of numbers. Sir, before I begin with my questions, I would like to make a small request to our management team. We would appreciate if our company becomes slightly more active in engaging with investors and analysts during the quarter, because as a stakeholder, it helps us with better clarity and transparency regarding the business development. We had highlighted this similar concerns in Q2 con-call as well, because I feel that there's some communication gap between the management and the stakeholders. We didn't even
Gopal Kabra
Definitely point is noted, and we will make it sure whatever the best we can do it. So, H1 we did it, and final year we are doing it. So, we will take this opinion into the consideration and will take appropriate call on it. Now would like to listen your question if you have something. Sir, so in Q4 we had installed around 17,000 pumps and around 19,000 pumps were installed in Q3. So, that's roughly 36,000 pumps, and we were targeting around 50,000 pumps in H2. So, I just wanted to understand whether the demand was slowed down across the sector or was there any execution-related challenges? Se
Q
Yes. Hi, sir. Am I audible?
Gopal Kabra
Yes, you're audible. Please go ahead. Congratulations on a good set of numbers, sir. I just wanted a clarification on the execution part. So, we had guided for somewhere around 70,000 to 75,000 of pumps to be installed, but we did somewhere around of 61,000. So, are we facing any execution delays or something? See, it was in the last two quarters we got some scenario. Rainfall was there in the -- sudden rainfall was there in the Maharashtra if you remember in the last quarter. Plus, we got some hit back from the material supply in the last three, four week of the March. But we reached to the 6
Q
Yes. Hi, Gopal ji and team. So, pretty good numbers. Sir, just wanted to understand what is happening with the tendering activity overall and is there competitive intensity because what we hear is that realizations and margins probably can be under pressure going ahead. So, just wanted to understand your point on your views on basically what kind of ordering intensity for the industry and for GK you would be expecting in the next year and from which states? Or maybe since you're Maharashtra dependent, basically I understand that part. But across what is the scenario because we are seeing diffe
Gopal Kabra
Okay. So, now coming on the tender side, definitely we have seen the price is having the different range, but this different range is coming with the heavy volumes. So, when you are into the business when earlier we were selling 100 pumps in a year versus when we are selling the 60,000, 70,000, so definitely price cannot remain the same. And I believe this competitive edge is going to bring us the more business. So, personally, being GK Energy management, we are not worried on that side, because of this thing we should be worried. I believe it's sensible players are there in the market those w
Q
Hello?
Gopal Kabra
Yes, please. Yes. Hi. Congratulations on the good numbers. On the margin or competitive intensity or whatever, there were so many players in the pump market, etcetera. So, one is on the competitive intensity if you can say how the situation is, and second on the working capital going forward, what is the new normal? Okay. So, competence intensity for the manufacturing of the solar pump, so let me tell you I have every 15 days one good company at my doorstep to sell his pump. So, that much it's competitive, it's a commodity now. So, what we do it, we take the best supplier, we find the best sup
Q
Yes. Sir, just wanted to understand how if you want if you are targeting a revenue of close INR 3,000 crores, what can be the working capital requirement and how do we intend to fund that requirement?
Gopal Kabra
So, working capital, see, we just if you see, we have achieved INR 1,500 crores business where we got the majority of the equity in the month of October. Okay? So, now if I talk about the totally with the equity what we have raised plus whatever the profits we have plus credit line what we are getting, and we have reduced our inventory days as well. If you look towards the number, my inventory days has been gone up to, gone down to 21 days, which is we would like to reduce more. We are approaching just in time. And the working capital side which is we are talking about the 140, 150 days which
Q
Good evening, sir. Congratulations to you and your entire GK, and team for the great set of numbers. If possible, can you please provide a bit more clear guidance for EBITDA margins even if it's not exactly precise? Your guidance of two-digit margin seems to be a very broad classification to us. It would be great if you could also provide us guidance for EPC business and solar cell trading business separately.
Gopal Kabra
Okay. We will work on because right now it is not work and kept it ready. So, we will work on this and we will try to give you. Okay. Thank you, sir. And my second question was on Q4 specifically. Our revenue was down about 6% to 7% from Q3. Can you help us understand the slowdown in this specific quarter? We could not do the installation what we were eyeing that time because of the rainfall and the war started in the month of February end. So, there was sudden impact on the some raw material availability which occurred into the last two, three week of the March. So, and the rainfall, these we
Q
Yes. Thank you for the opportunity and congratulations for good set of numbers. Sir, I just wanted to understand that in Magel Tyala, there has been comments that the realizations have went down overall. And with many companies being in Maharashtra, what competitive bidding is, could you just comment on the competitive bidding? Are the prices really going out? Are we also bidding lower and lower?
Gopal Kabra
See, GK Energy whenever it bid, it bid with the appropriate required margin only. So, we never bid lower Which is appropriate for the market. And as I said that price differentiation is arriving, but the volume is also going fantastically up. So, when earlier a single person was doing four installation in a week, now he has to do the four installation in a day. So, I believe that when the volume goes up, that time you can definitely renegotiate, discuss with your vendors for the price discovery. You have to rediscover the price. Your expenses goes down because your volume goes up. So, ultimate
Q
Yes. Thank you for the opportunity. So, just doubling down on the PM-KUSUM. Yes, it might be delayed a bit, but it will come. So, if we consider the combined central, state and farmer contribution, the total program outlay could be in the range of INR 1.5 lakh crores. Within this, what proportion of the opportunity does GK Energy realistically expect to capture? Additionally, as an EPC player under this scheme, does GK undertake end-to-end procurement including pumps, controllers and related components or is the scope largely limited to implementation? And in case of procurement is a part of o
Gopal Kabra
Okay. So, I will go reverse. Procurement is in our scope. We do that not only end-to-end buying, we do the control on the quality side at the place of manufacturing itself. So, although we are asset-light, but many of the industries.
Q
Yes. So procurement side we do not only end-to-not, we do control on the quality aspect at the time of manufacturing itself. My dedicated team sits into our supplier OEM/ODM places and they do control. Now this is what we do on the controlling side for and the procurement side. It's end-to-end in the GK Energy brand itself. It's not like the of anyone's else brand and your another question was related to farmer contribution, right?
Smith Gala
No. My question was regarding that we I assume the total outlay of PM-KUSUM 2.0 to be around INR 1.50 Lakh crores. And what is GK Energy's share is going to be?.So, rather than saying that because the scheme itself is going multifold, if you take the past number of the GK Energy's contribution in the whole business of the PM-KUSUM which is got installed 10 Lakh plus pump, there itself you can see it is close to two-digit, around 9% is what the country side we have contribution. It doesn't include the Magel Tyala. Magel Tyala scheme we have the contribution more than 15%. So, there are two diff
Q
Hi. Thanks for the opportunity. Sir, in the roof-top solar business, is our strategy same of being asset-light? And if not, so what kind of products that we are thinking to backward integrate ourselves into? And structurally, sir, what are the EBITDA margins in the business that we are looking at?
Gopal Kabra
It definitely it's going to remain as a asset-light, but this my asset-light model is work differently. So, if I talk about my asset-light model, in this we define the manufacturing process, our standards, our QC, everything is with us only. So, we have created ecosystem which is as equal as like having your own manufacturing setup, but you don't have the asset-light. So, if very simplified said, so my decentralized energy network it's for the asset-light model through OEM/ODM based manufacturing ecosystem. So, we utilize their ideal capacity for our product to get manufactured and that's a po
Q
Good evening, sir.
Gopal Kabra
Good evening. Sir, my question was the INR 3,000 crores expected revenue which we have for FY27, out of that we are expecting 1,400 orders in H1 in which I think we can execute INR 1,000 crores to INR 1,200 crores of revenue in H1. And suppose we are depending on PM-KUSUM 2.0 for the H2, and in case if it does not come, do we still expect INR 1,500 crores of revenue in second half or will it be downgraded? See, I don't think so PM-KUSUM will get cancelled. If such kind of the decisions are taken, so that might be having the one quarter impact as we have already move into the solar rooftop and
Q
Congratulations on a good set of numbers. A couple of things what I wanted to understand. First of all, the advantage that you have as a decentralized player who is not manufacturing is that the margins that are there, probably the commodity prices and all those that increase typically, given that solar pumps is a commodity, the hit is taken by the manufacturer. Is that a correct way to look at your business? That's one of the advantages that you have so that the margins that are there, the raw material prices that would increase, the hit is not to that extent that would be the case for the ot
Gopal Kabra
No, I would say it is not a fair conclusion. It is like that your planning has to be there. Okay. So, whenever we go, so we freeze the coming six-month procurement, we give the required advance, we give very clear planning, okay, this is what is required. So now it is my supplier partner's responsibility to make it sure that he does the supply and he does the future planning for his procurement. So, fortunately, my vendors, my OEM partners, when I have given them a projection six-month back, they made it sure that planning with me itself. So, I believe they also did not get the certain hit wha
Q
go ahead. Hello Yes
Jaitra Joshi
Sir, my -- all my questions have been answered. Thank you.
Q
I need clarification on margin. I -- the double-digit margins guided, is it operating margins or net margin, sir?
Gopal Kabra
Definitely it shall be net margin only. And the current order book of INR 700 crores, what is the timeline to execute this INR 700 crore of order book? Out of that, most of the work is, you know, more rather than most of the good work is already done and remaining shall done within timeline. And even we want to execute till H1 more order also, so it will get over and we will be having the few more business to be done. Okay. And sir, what is the size of PM-KUSUM for 2027 and how much of that we can capture? I mean, how many solar pumps government is planning to install in 2027 under PM-KUSUM an
Q
Hello Team, Good afternoon. I have just one question. What was the amount that you spent on the corporate office?
Gopal Kabra
It is I have to it was answer in respect of the question came for the fixed asset. So, I have to just check precise number because you have asked the precise question. So, if just a minute. Sir, my main question is whether we have spent INR 90 crores on a corporate office. That seems very large in a company which is following a asset-light model has bought a INR 90 crores corporate office is not adding up, so I wanted to check from that angle. No. What you are saying is right. For the getting the bank limits, we have fixed deposits to be given. That fixed deposit has been transfer into the ass
Q
Gopal ji, I had one more question on the IPO of MSEDCL which is coming up. So, which is this Maharashtra state utility. I just wanted to get an idea what is the thought process if you could explain a couple of minutes since you are on the ground. What is the vision of Maharashtra, what is the rationale behind this IPO, and what does it mean for us that especially in the light of time because it would be one of the very few profitable state utility. So, if you could give us some perspective, that would be helpful?
Gopal Kabra
See, it is like a ocean and I am very small, you know, sailing the small ship into that ocean. So, best I am actually your question is perfectly right, but I am not right person for this question. This is what I can say right now. Okay, no issues, thank you so much.
Q
I sincerely thank you everyone with the lots of patience you have listened. And it is very nice to have the interaction. There are certain suggestion has been given. Management would like to review that suggestion. If we find suitable, we will implement that. Thank you. Thank you very much for everyone to spend the time with us on the GK Energy's earnings call. Thank you.
Management
Speaking time
Gopal Kabra
66
Moderator
19
Jainam Vora
10
Aashish
8
Vishvender Singh
7
Gaurav Agarwal
7
Tanmay Jhaveri
6
Sameer Shah
6
Nikunj Bhanushali
6
Himanshu
5
Opening remarks
Gopal Kabra
Thank you very much. Very good afternoon to everyone. I, Gopal Kabra, CMD of GK Energy, welcome everyone. I am very glad that you are here for the Investor Call. Along with me, Mr. Sunil Malu, our CFO, is also present. Now coming to the subject more precisely, as we have today declared our results, so I would like to bring a quick overview on the past performance. In FY26, our standalone revenue from the operation is INR 1,532.54 crores. It represents 40% growth Y-o-Y. Last year, we had done INR1,094 crores of business. If I talk about the EBITDA level, then in standalone EBITDA for the year is INR 313 crores with 53.49% growth comparatively to INR 204 crores in last year. This is having the margin expanding to 20.44% compared to 18.64% in FY25. Now for what everyone is working, like PAT, after tax paid money if we talk about, right? So, at this is the first time in the history, GK Energy has crossed the revenue of the INR 1,500 crores. We have profit side, so profit we have INR 201 cr
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