KPI Green Q2 FY27: Consolidated PAT falls 21% YoY to ₹92 Cr as finance costs surge

KPI Green Energy's consolidated PAT fell 21% YoY to ₹91.9 Cr (from ₹116.6 Cr), extending the 18% YoY PAT decline seen in Q1 FY27 into a second straight quarter of profit contraction, even as revenue grew 14.7% YoY to ₹727.2 Cr (+4.8% QoQ). The print lands inside our pre-result preview's ₹700-750 Cr revenue band and matches the "PAT pressure likely" call we flagged going in, though we found no formal third-party EPS/PAT consensus figure to benchmark against beyond that preview. The margin story is split by line. Operating margin (EBITDA/revenue) actually expanded to 36.97% from 35.56% a year ago, but net profit margin compressed sharply to 12.4% from 18.2% YoY (13.3% in Q1 FY27) — the squeeze sits below the EBITDA line. Management's own release attributes this to finance costs rising to ~₹92 Cr (from ~₹43 Cr) and depreciation to ~₹60 Cr (from ~₹32 Cr) as the balance sheet expands with the IPP build-out; consolidated debt-equity now stands at 1.84x, up from 0.81x a year ago. Management frames this as the cost of a "substantially enlarged project portfolio" ahead of full earnings contribution — the numbers agree directionally (OPM is indeed expanding) but the bottom line hasn't caught up yet. Against guidance, the quarter falls short: management had already cut FY27 revenue growth guidance to 30-40% YoY (from 40-50%) and warned PAT margin would undercut its prior 16-18% band without giving a floor. H1 FY27 revenue grew only ~16% YoY (₹1,451 Cr vs ₹1,255 Cr) — well behind even the downgraded range — with management pointing to Q3/Q4 FY27 as when IPP capacity ramps more fully. The quarter's IPP energisation (1.34 GW of a 3.22 GW pipeline, H1 generation of 53.6 Cr kWh already 31% above all of FY26's 41.0 Cr kWh) supports that framing but hasn't yet shown up in margins. Standalone PAT of ₹62.4 Cr understates the group story, since a rising share of profit now sits in IPP subsidiaries consolidated at the group level. This sets up a H2 FY27 that needs to roughly double its growth pace to hit the guided band, against a backdrop of a CEO transition (Dr. Alok Das resigned October 1, 2026), a binding offer to acquire 507.9 MW of operating wind assets (AEPL + NWPL) for ~₹2,410 Cr, and fresh order wins (a ~₹2,025 Cr NACOF Oorja EPC order, a ₹621 Cr NTPC BoS award, and a 300 MW SJVN wind PPA) that add to the contracted pipeline without yet changing the near-term margin trajectory.