Orient Green Power Company Limited Q1 FY27 Earnings Call Summary

Revenue

Margin

Demand

Guidance

Tone

Metrics raised 1

Mar-2027 total debt target raised to ~₹535 crores (from ~₹525 crores at Mar-2026)

Metrics cut 2

17.6 MW solar + 7.8 MW repowering commissioning deferred to Sep-2026 (from June-2026)
Blended cost of borrowings target cut to ~9% (from ~9.1% currently)

Event Participants

Executives (2)

J. Kotteswari (CFO), T. Shivaraman (MD & CEO)

Analysts (8)

Diya Jain (Sapphire Capital), Faisal Hawa (HG Hawa & Company), Manoj Bagadia (Equicorp), Narendra (Individual Investor), Pragyam Laddha (Omni Management LLP), Rakesh T (Individual Investor), Shivam Tumma (Individual Investor), Shreesha Rudrani (Individual Investor)

Financials & KPIs

Metric	Reported	Commentary
Incremental wind capacity	3.3 MW commissioned in Q1 FY27; 9.9 MW available (incl. 6.6 MW from Q4 FY26)	New capacity partially offset lower wind availability in Q1
Solar capacity	7 MW commissioned Dec-2025; 17.6 MW under implementation	17.6 MW greenfield solar expected commissioning by Sep-2026
Revenue from operations	₹81.43 crores	Down 7% YoY on delayed/muted wind season
EBITDA	₹60.01 crores	Down 9% YoY; O&M costs largely fixed, so margin stable
PAT	₹23.94 crores	Down 16% YoY; also impacted by lower interest income (rights issue proceeds deployed) and higher depreciation
Blended cost of borrowings	~9.1%	Down from 9.75% on the IREDA Beta loan three years ago; targeting ~9% blended
Quarterly interest cost	₹13–14 crores	Stable in FY27; expected to fall next year as ₹90–100 crores of debt is repaid
Total debt	~₹535 crores by Mar-2027 (vs ~₹525 crores Mar-2026)	Net increase ~₹70 crores: ~₹170 crores additions (Delta solar, 10 MW assets, Clarion repowering) vs ~₹100 crores repayments
Carry-forward tax losses	~₹800–850 crores	Available as tax shield against future profits
Andhra Pradesh interest receivable	~~₹20 crores outstanding; ₹6.5 crores (~~30%) provisioned	Provision under Ind-AS expected credit loss; APERC non-functional delaying recovery

Geographic & Segment Commentary

Wind – India: Q1 FY27 generation was lower YoY due to a delayed monsoon; Q2-to-date wind availability has been "reasonably good" and turbine availability/performance is satisfactory. The 9.9 MW incremental wind capacity (3.3 MW in Q1 + 6.6 MW in Q4 FY26) partially offset the generation shortfall.
Solar – India: The 7 MW solar plant (commissioned Dec-2025) operated fully in Q1; 17.6 MW greenfield solar (Delta) is on track for Sep-2026 commissioning. Future solar projects will almost certainly include battery storage, and management sees at least 100 MW of hybrid solar potential across existing wind farm sites, subject to policy and economics.
Repowering – Tamil Nadu: The 7.8 MW repowering at Clarion (under the TN repowering scheme) is expected by Sep-2026, delayed by the Tamil Nadu government transition. Next phases include ~2.8 MW at Clarion and ~17.5 MW at Gamma, totaling ~28 MW by end-FY28; site selection is based on low-performing windmills, and some urbanized sites may be monetized.
Europe/Croatia: The 10.5 MW Croatian operating asset remains with the group; the company is liquidating a 100% Dutch intermediate holding company with no assets to simplify structure. The asset generates ~~EUR 1 million (~~₹9 crores) revenue per annum.

Company-Specific & Strategic Commentary

Growth to 1 GW: Management remains committed but has not offered a revised timeline; it is prioritizing brownfield/acquisitions and evaluating repowering. Debt alone can support only ~20–25 MW of incremental capacity, so equity or a strategic partner is essential.
Capital & shareholder value: All alternatives—partnership/JV, rights/preferential issue, merger with a profitable renewable player, and promoter stake increase—are being evaluated simultaneously. PE investors' preference for unlisted entities and the low share price (~₹10) are key constraints; the ₹800–850 crores tax-loss cover is a potential M&A attraction.
Cost & rating: Interest cost has been reduced consistently over the past 3–4 years; the rating trajectory is BBB- → BBB, targeting BBB+ and then A. A 15 bps reduction is being pursued via IREDA internal rating on the Beta loan.
BESS & hybrid: Retrofitting battery storage to the existing 25 MW solar plant is under evaluation; BESS economics are challenging (single-cycle usage, battery costs on uptick), and the company is working with the Tamil Nadu government on regulatory changes to enable two-cycle battery operation.
Regulatory & government: The Tamil Nadu government change stalled approvals; management expects all open regulatory issues to close in the next 2–3 months. APERC's non-functional status is delaying recovery of Andhra Pradesh interest.

Guidance & Outlook

Metric	Guidance / Outlook	Commentary
FY27 revenue & EBITDA	Equal to or better than FY26	Wind makes precise guidance difficult; additional capacity (9.9 MW wind + 7 MW solar) and better Q2 wind should ensure improvement; margins sustainable as costs are predictable
Capacity commissioning	17.6 MW solar + 7.8 MW repowering by Sep-2026	Approval delays from Tamil Nadu government transition are behind; both projects progressing as per plan
Repowering pipeline	15–20 MW added in FY28; ~28 MW by end-FY28 (Clarion 2.8 MW + Gamma 17.5 MW)	Based on feasibility study of lowest wind-generation machines; evaluated farm-by-farm
Debt & interest	~₹535 crores debt by Mar-2027; ₹13–14 crores quarterly interest; blended rate toward ~9%	~₹100 crores repayments partially offset by ~₹170 crores new debt; no significant further drawdown this year
Solar/battery	Future solar to include BESS; retrofit on existing 25 MW possible next year	Needs regulatory clarity in Tamil Nadu (expected in 2–3 months) and viable battery cost/cycle economics
1 GW target	No revised timeline; still being pursued	Requires strategic/equity triggers; management expects "something to start moving" during FY27

Risks & Constraints

Risk	Context
Wind/monsoon variability	Q1 FY27 generation was hit by a delayed monsoon; FY27 wind season is likely to be similar to FY25 (less strong than FY26), limiting top-line visibility. Management is conservative on guidance, with "no levers other than ensuring machines are operational."
Capital constraints & share price	The stock at ~₹10 makes rights/preferential issuance unattractive; only ~20–25 MW of additional capacity can be funded through debt alone. Growth to 1 GW depends on an equity partner/acquisition, which has not yet materialized despite "three-four ongoing conversations."
Regulatory delays	Tamil Nadu government transition delayed approvals, pushing commissioning of solar and repowering from June to Sep-2026; APERC non-functionality delays recovery of ~₹20 crores Andhra Pradesh interest; BESS regulatory framework is incomplete.
Battery economics	Battery costs have risen after declining; single-cycle BESS costs are significant. Unless two-cycle usage is permitted, solar+battery returns may be suboptimal; policy modifications are being sought.
Execution/commissioning slippage	Any further delay in solar/repowering commissioning would reduce FY27 earnings contribution; management expects completion by Sep-2026.

Q&A Highlights

Growth to 1 GW and capital raising

Question: With the stock at ~₹10, further rights or preferential issuance is difficult; what is the new timeline to 1 GW and shareholder returns? (Faisal Hawa – HG Hawa & Company)
Answer: No revised timeline; the company is not fully leveraged on existing assets and can fund ~20–25 MW incremental capacity through debt. Management is evaluating repowering, acquisitions, and multiple fund-raising options; "serious conversations" did not proceed as hoped, but something could move during FY27. (T. Shivaraman – MD & CEO)

Strategic alternatives to address capital shortage

Question: Could a partner or merger with a profitable renewable player unlock value, given ₹800–850 crores of tax losses and domain experience? (Manoj Bagadia – Equicorp)
Answer: All 3–4 alternatives—PE partner, group captive customer equity, merger, and rights issue—are being pursued simultaneously. PE investors prefer unlisted entities to avoid quarterly mark-to-market; group captive customers invest only the mandatory 26%. Management cannot comment until a proposal reaches the Board/shareholders. (T. Shivaraman – MD & CEO)

Wind season and FY27 outlook

Question: How does the current wind season compare with last year, and is "equal to or better than last year" conservative? (Manoj Bagadia – Equicorp; Pragyam Laddha – Omni Management)
Answer: Q1 was significantly worse YoY; Q2-to-date is roughly matching last year. The season looks more like FY25 than FY26. Guidance is conservative due to wind unpredictability; with 9.9 MW wind + 7 MW solar capacity additions, FY27 revenue/EBITDA should exceed last year, but the quantum depends on the monsoon. Margins are sustainable as O&M, interest and depreciation are predictable. (T. Shivaraman – MD & CEO)

Repowering pipeline and site selection

Question: How much repowering is practically possible given site constraints, and could some land be better monetized? (Manoj Bagadia – Equicorp; Narendra – Individual Investor)
Answer: Current 7.8 MW at Clarion will commission by Sep-2026; next phase is ~2.8 MW at Clarion and ~17.5 MW at Gamma, totaling ~28 MW by FY28. Repowering is evaluated machine-by-machine; older turbines still performing well are retained, and some urbanized sites may be monetized as real estate, though not at huge scale. (T. Shivaraman – MD & CEO; J. Kotteswari – CFO)

Debt, interest cost and deleveraging

Question: What is the quarterly interest cost, debt trajectory and best achievable blended rate? (Rakesh T; Faisal Hawa – HG Hawa & Company)
Answer: Blended rate is 9.1%; quarterly interest is ₹13–14 crores. FY27 debt will rise from ~₹525 crores to ~₹535 crores on ~₹100 crores repayments offset by ~₹170 crores new loans (Delta solar, 10 MW assets, Clarion repowering). Best rate achieved is 8.2% (HDFC old assets); targeting ~9% blended, with a possible 15 bps cut on the IREDA Beta loan through internal rating. (J. Kotteswari – CFO)

Promoter share pledge release

Question: Why hasn't the 100% unpledging happened? (Rakesh T; Shivam Tumma)
Answer: The pledge is linked to a promoter company loan of ₹400 crores; ~40% has been repaid ahead of schedule. The loan tenor runs to Sep-2027, but if repayments continue, the entire pledge could be released by end-FY27. (J. Kotteswari – CFO)

Andhra Pradesh interest receivable and provisioning

Question: What is the status of the Andhra Pradesh government receivable and provision? (Narendra – Individual Investor)
Answer: Principal was recovered after court cases; ~~₹20 crores of interest is pending because APERC is non-functional (no members). ₹6.5 crores (~~30%) has been provided under Ind-AS expected credit loss; management is legally entitled to the interest and expects recovery once APERC resumes. (T. Shivaraman – MD & CEO; J. Kotteswari – CFO)

Solar/BESS/hybrid strategy and economics

Question: Will future solar include battery storage, and how do returns compare across repowering, new wind, solar and BESS? (Manoj Bagadia – Equicorp)
Answer: Current 25 MW solar is pure solar and fully contracted; retrofitting BESS is under evaluation. Future solar will almost certainly include BESS, and existing wind farm sites offer at least 100 MW of hybrid solar potential. Repowering currently offers the best return; solar with battery and new wind are roughly equivalent. Single-cycle BESS economics are challenging with battery costs on the rise; management is seeking regulatory approval for two-cycle usage in Tamil Nadu, with clarity expected in 2–3 months. (T. Shivaraman – MD & CEO)

Europe entity liquidation

Question: Are you liquidating the Europe business? (Narendra – Individual Investor)
Answer: The company is liquidating a 100% Dutch intermediate holding company with no assets; the underlying 10.5 MW Croatia asset remains with the group and generates ~~EUR 1 million (~~₹9 crores) revenue per annum. (Management)

Key Takeaway

Orient Green Power reported a muted Q1 FY27, with revenue of ₹81.43 crores (-7% YoY), EBITDA of ₹60.01 crores (-9% YoY) and PAT of ₹23.94 crores (-16% YoY), as a delayed monsoon curtailed wind generation; new capacity (9.9 MW wind + 7 MW solar) partially offset the shortfall. The company commissioned 3.3 MW wind in Q1 and expects to commission 17.6 MW solar and 7.8 MW repowering by September 2026, with a further ~28 MW repowering pipeline by FY28. Debt is guided to ~₹535 crores by March 2027 with blended interest cost at ~9.1%, supported by ₹90–100 crores of repayments. Management remains committed to the 1 GW goal but has not given a revised timeline, citing share price and equity constraints; capital-raising, M&A and partner discussions are ongoing across multiple tracks. Key watch points are wind seasonality, Tamil Nadu regulatory clarity on BESS/hybrid, APERC's revival for the ₹20 crores interest recovery, and promoter pledge release targeted by end-FY27.