GIPCL Q4 FY26 Earnings Call: Solar Expansion and Thermal Plans

1. 600 MW Khavda Solar Plant (Operational):

The plant was fully allocated in November 2025 and is evacuating power at full capacity.
Current Capacity Utilization Factor (CUF) is 33.24%.
The plant operates under a Power Purchase Agreement (PPA) with GUVNL at a tariff of ₹2.73 per unit.
For FY 2026-27, management expects revenue of approximately ₹420 crores and EBITDA of approximately ₹350-360 crores from this asset.
The plant has a one-year debt moratorium that ended in June 2026; loan repayments are scheduled to begin in the next quarter (Q2 FY27).

2. 500 MW Khavda Solar Plant (Under Development):

The project is at a very advanced stage of commissioning.
Phased commissioning is anticipated post-monsoon, starting with 200 MW, followed by another 200 MW and finally 100 MW over the subsequent couple of months.
Full commissioning is expected by the end of Calendar Year 2026.
The delay is attributed to power evacuation infrastructure not being fully ready by CTUIL.
Upon full commissioning, this project is expected to add approximately ₹450 crores to the company's peak debt, taking total debt to around ₹4,500 crores.
The revenue model is similar to the 600 MW plant at ₹2.73/unit.

3. Existing Thermal Power Plants (SLPP 1 & 2):

Both lignite-based thermal plants are operating with a strong Plant Load Factor (PLF), exceeding threshold limits of 75% and 80% respectively.
There are no issues with power evacuation for these plants.
Revenue from these plants for FY 2025-26 was approximately ₹1,103 crores.
These plants are now debt-free.

4. Other Renewable Assets:

FY 2025-26 revenue breakdown for other RE assets: Solar (ex-Khavda): ₹152 crores, Wind: ₹86 crores, 75 MW Solar: ₹38 crores.
These existing RE assets are also largely debt-free.

5. Financial Projections and Debt:

Long-term borrowing stood at ₹3,247 crores as of 31st March 2026.
Peak debt is projected to be around ₹4,500 crores after the commissioning of the 500 MW solar project.
The average coupon rate on borrowings is 7.8% (floating).
For FY27, projected interest cost is ₹250-260 crores and depreciation is ₹425-450 crores.
Once the 500 MW plant is fully operational for a full year, management anticipates a consolidated EBITDA in the range of ₹950-1,000 crores.

6. Capacity Expansion - 750 MW Thermal Plant:

GUVNL has given in-principle approval for a new 3x250 MW lignite-based thermal power station on a cost-plus basis under Section 62.
Tenders have been floated, with BHEL among the observed parties.
The project capex is estimated at ~₹6,000 crores, with an anticipated debt-equity ratio of 80:20.
The project has a gestation period of 3-4 years, with commissioning targeted for 2032-33.
Lignite supply for the expansion is secured from available reserves in the region.

7. Baroda Gas-Based Power Plant:

The 310 MW gas-based plant remains idle due to the geopolitical situation affecting gas availability.
Management is repurposing the site for Battery Energy Storage Systems (BESS).
GUVNL has approved a 20/120 MW BESS project at this location, and tenders are already in place.
Plans are underway for an additional 30/160 MW BESS in the coming year.
The existing switchyard and evacuation infrastructure will be utilized for the BESS projects.
The pilot BESS project is expected to generate revenue at ~₹6 per unit and take about one year to become fully operational.

8. Solar Park Development:

GIPCL has been allotted a 2,375 MW solar park at Khavda.
The company is developing 1,100 MW on its own (600MW + 500MW).
The remaining capacity has been allocated to third parties like Coal India, SJVN, and SAEL, who have direct PPAs with GUVNL.
As the park developer, GIPCL will provide evacuation and infrastructure, generating O&M revenue.
Net revenue from park development is expected to be ~₹20-25 crores annually for 25 years.
Through land optimization, an additional 200 MW solar capacity is planned at the Khavda location, requiring a capex of ₹800-1,000 crores.

9. Dividend Policy:

Management expressed a commitment to continue paying dividends, acknowledging obligations to investors. The specific amount will be determined based on post-commissioning figures of the 500 MW project.