GK Energy Ltd (NSE:GKENERGY) (Q2 2027) Earnings Call Highlights: 39% H1 Revenue Surge, Rs 1,422 …
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This article first appeared on GuruFocus.
Release Date: October 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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H1 FY27 revenue grew 38.9% to Rs 907.8 crore, already nearly 60% of full FY26 revenue, with EBITDA up 21.6% to Rs 160.5 crore and PAT up 30.7% to Rs 109 crore.
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GK Energy Ltd (NSE:GKENERGY) is diversifying beyond solar pumps into rooftop solar and battery energy storage, winning a 1 lakh rooftop systems order and a 150 MW/300 MWh BESS order.
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Strong field execution: Q2 installations rose 41.8% YoY to 19,391 systems and commissioned capacity rose 33.3% to 84 MW; H1 installations up 77.6% and capacity up 70.8%.
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Order book of Rs 788 crore plus cumulative FY27 orders of Rs 1,422.29 crore (incl. GST) provides clear revenue visibility; management guides ~40% growth even without PM Kusum.
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Asset-light, technology-defined manufacturing ecosystem with multiple partners across eight states enables fast scaling and new product entry without heavy fixed capex.
Negative Points
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Trade receivables stood at Rs 1,012.38 crore as of Sep 30, 2026, equal to 204 days outstanding, indicating significant working capital strain.
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Q2 FY27 revenue growth slowed to 12.3% YoY (Rs 402.7 crore) and PAT grew only 6.3% to Rs 49.4 crore, reflecting monsoon seasonality and margin pressure.
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Q2 EBITDA margin came in at 18.5% but PAT margin was only 12.3%, and rooftop solar margins are expected to be slightly lower than the pump segment.
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Heavy dependence on government schemes like PM Kusum, whose rollout is expected only in Q3 FY27 with benefits from Q4 FY27 onwards, creates timing risk.
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Management has no plans to expand aggressively into southern states, limiting addressable market coverage to six-seven states that represent about 70% of the targeted market.
Q & A Highlights
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Q: You mentioned Rs 1,800 crore order book in a recent interview, but the presentation shows Rs 788 crore. Is there confusion? A: Gopal Kabra (Chairman, MD & CEO) clarified that Rs 1,800 crore is revenue visibility, not the current order book. It includes the opening order book from last year plus orders received this year. Of this, close to Rs 900 crore has already been executed and reflected in the top line.
Q: Can you maintain the 17-18% EBITDA margin for FY27 despite Q2 margins being lower? A: Gopal Kabra (Chairman, MD & CEO) expressed confidence in maintaining the 17-18% margin, citing the company’s proper planning and controlled manufacturing ecosystem. He noted that despite some market hurdles, the business model has insulated GK Energy from the impact.
