Sun Drops Energia Limited

Sun Drops Energia — Business Model Sun Drops Energia Private Limited (referred to in the concall as "Sundrop"/"Sundrops") is a subsidiary of KPI Green Energy Limited, currently 100% owned by KPI Green (per the valuation report shareholding table, though Dr. Faruk Patel also holds shares directly following preferential allotment/bonus/rights issues in late 2024). Its business model, per the valuation report, mirrors KPI Green's own two-segment structure but on a smaller, dedicated scale: Independent Power Producer (IPP) Business — owns and operates its own grid-connected solar/hybrid power plants (8 MW solar near Ranada, Bharuch, plus a 13.6 MW hybrid solar+wind project in Gandhar/Samiala, Bharuch) and sells power under long-term Power Purchase Agreements (PPAs). Captive Power Plant (CPP) Business — turnkey EPC-style solar project development for third-party customers on a contract basis, plus O&M services. This is the larger revenue driver (₹213 crores revenue in H1 FY25 vs. minimal IPP contribution). How it differs from KPI Green Scale: Sun Drops is a small subsidiary (order book ~₹403 crore for CPP as of Sept 2024) versus KPI Green's much larger consolidated scale (₹5,246 crore CPP order book, ~6.26 GW installed+pipeline capacity per the Q4 FY26 concall). Dedicated new-technology mandate: Per the concall, KPI Green's CFO Salim Yahoo stated that Sundrop has been designated as the group's dedicated vehicle for battery energy storage systems (BESS) — including battery energy storage and battery manufacturing — an "upcoming segment" being carved out separately from KPI Green's core solar/wind IPP-CPP business. Corporate structure: Sun Drops is a distinct legal entity (CIN: U40107GJ2019PTC108373) with its own capital structure, minority shareholder (Dr. Faruk Patel personally), and standalone financials, rather than being a direct division of KPI Green. Latest business news from the Q4 FY26 concall (May 12, 2026) From the transcript: FY26 financial performance: Sun Drops' top line this year was INR586 crores, which was a substantial growth with a PBT of INR130 crores and a PAT of INR97 crores. IPO plans: Sundrops has been dedicated to doing all the battery energy storage system (BESS) business, an upcoming segment. Sundrops will be coming up shortly with filing of DRHP for the IPO with the object of battery energy storage system, along with battery energy manufacturing also in line. Listing timeline: When pressed by an analyst, management confirmed the listing for Sundrops is expected this financial year (FY27). Order book: Sundrop has multiple orders, including some larger clients like Aditya Birla and Adani Green, factored into KPI Green's broader CPP order book, along with several small orders in Sundrop specifically that are not fully counted in the consolidated figures. BESS order specifics (for the wider group, executed via Sundrop): the company currently has two major BESS orders — 440/890 megawatt-hours (won via tender) and another 120/240 megawatt-hours — both with GUVNL as the end customer. Bottom line: Sun Drops Energia is transitioning from a small solar IPP/CPP subsidiary into KPI Green's dedicated battery storage (BESS) arm, and management is targeting an independent stock market listing (IPO) within FY27, distinguishing it as a growth-and-financing vehicle for the newer, less-established BESS segment — separate from KPI Green's core solar/wind IPP-CPP operations.