Rising interest costs from IP capex
Interest costs more than doubled to ₹182 crore in FY26, and management expects a peak of ~₹300 crore, which could pressure near-term profitability.
KPIGREENENERGY / bear-case history
Track the concerns that keep returning.
KPI Green Energy · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Margin dilution from BESS segment
Battery energy storage projects have lower EBITDA margins (not 85-90% like IP) and rely on viability gap funding, which may compress overall margins.
Geopolitical and input cost volatility
Rising solar module, turbine, and commodity prices could impact EPC margins; management hedges via inventory buildup but risks remain.
Curtailment and transmission bottlenecks
Grid curtailment of renewable power remains a sector-wide issue; no concrete solution timeline was provided by regulators.