Management

• Gopal Rajaram Kabra (Chairman, Managing Director and Chief Executive Officer)
• Mehul Ajit Shah (Whole-time Director and Chief Operating Officer)
• Navinait Mondhani (Non-Executive Director)
• Chandra Iyengar (Independent Director)
• Susheel Bhandari (Independent Director)
• Pooja Pawan Chandak (Independent Director)
• Sunil Kamalkishor Malu (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 464.26cr, which comprises of fresh issue of Rs. 400cr and offer for sale (OFS) component of Rs. 64.26cr. The company intends to utilize Net Proceeds towards funding long-term working capital requirements (Rs.322.46cr) and general corporate purposes.

Competitive Strengths

Leadership in Solar-Powered Pump EPC in Maharashtra The company has established itself as the leading pure-play EPC provider of solar-powered pump systems in Maharashtra under the PM-KUSUM Scheme, holding ~15% share of total installations as of July 31, 2025 (CRISIL). Maharashtra, the largest beneficiary under the scheme with 555,000 pumps allocated (44% of the national total), offers significant growth potential. Beyond central schemes, the company has also executed ~5,500 pump installations under state-led programs such as Atal Yojana and Mukhyamantri Saur Krushi Pump Yojana. Further, under the ambitious Magel Tyala Saur Krushi Pump Yojana—targeting 1 million pumps by FY29—the company has already secured orders for 34,198 pumps (17.1% of the first 200,000 approved) and installed 12,571 as of July 31, 2025. This strong positioning underscores its execution capabilities, policy alignment, and leadership in driving solar pump adoption.

Decentralised Infrastructure and Localised Workforce Driving Efficiency GK Energy’s decentralised infrastructure and locally trained workforce form a core strength of its operations. As of August 2025, the company operates 12 warehouses across three states, supported by 90 employees and 709 workmen, enabling it to serve farmers efficiently across five states. By hiring and training manpower locally, GK Energy not only enhances operational efficiency but also contributes to rural economies through employment, better earnings, and skill development. The decentralised warehouses ensure faster installation and after-sales service, while flexible arrangements with third-party service providers allow the company to temporarily utilise their facilities in lower-demand regions. This combination of decentralisation, local engagement, and adaptable storage access reduces turnaround time, improves responsiveness, and strengthens GK Energy’s ability to deliver projects at scale across broad geographic areas.

Well-Positioned to Capture Rooftop Solar Growth GK Energy is strategically expanding into rooftop solar solutions to diversify revenue streams and capture a fast-growing market segment. As of August 15, 2025, the company has secured orders worth ₹232.85 million, totaling 5.28 MW, underlining its entry momentum. Leveraging its extensive experience in EPC for solar-powered pump systems, GK Energy is well-prepared to execute rooftop projects, given the similarities in design and installation processes, with only minor technical variations such as panel placement and inverter requirements. The company’s strong brand recognition and a captive base of existing pump system beneficiaries provide a ready platform for cross-selling rooftop solutions. Coupled with rising public awareness of renewable energy and strong government policy support, GK Energy is well-positioned to scale its rooftop solar business and strengthen its leadership in the solar EPC landscape.

Comprehensive Installation and After-Sales Support Enhancing Customer Loyalty GK Energy’s strong focus on customer satisfaction is a key differentiator, ensuring farmers receive seamless support from installation through after-sales service. All solar-powered pump systems are covered under a five-year warranty mandated by the PM-KUSUM Scheme, complemented by manufacturer warranties and additional insurance purchased by the company. GK Energy operates a customer contact centre to provide responsive service, often resolving issues remotely via digital error codes or its free smartphone app. For more serious breakdowns, faulty systems are quickly replaced from buffer stock to minimize downtime. This proactive approach not only reduces service costs but also enhances reliability and customer confidence. By delivering timely installations, innovative support solutions, and consistent service quality, GK Energy fosters customer loyalty, generates positive word-of-mouth publicity, and reduces marketing expenses while reinforcing its brand reputation in rural markets.

Peer Comparison

Key Risks & Concerns

High Dependence on Solar-Powered Pump Systems GK Energy derives most of its revenue from the EPC of solar-powered agricultural pump systems—99.32% in FY25, 91.07% in FY24, and 90.55% in FY23. This heavy reliance makes the company highly vulnerable to fluctuations in demand for such systems. Any slowdown in allocations under the PM-KUSUM Scheme or reduced adoption by farmers could materially impact its business performance, financial condition, and cash flows, despite diversification efforts through other EPC services and trading activities.

Competitive Disadvantage as a Pure-Play EPC Player GK Energy currently operates as a pure-play EPC company, making it harder to compete against rivals that manufacture solar panels. Since panels account for about 40% of system costs, integrated players can manage expenses more effectively and secure higher margins. Under the PM-KUSUM Scheme’s lowest-bid pricing model, such competitors gain an edge in cost control and scale. Without backward integration, GK Energy risks margin pressures and reduced competitiveness in a fast-evolving solar EPC market.

High Dependence on PM-KUSUM Scheme A substantial share of GK Energy’s revenue comes from direct-to-beneficiary sales under the PM-KUSUM Scheme—83.83% in FY25, 74.39% in FY24, and 89.02% in FY23. Any non-extension of the scheme beyond March 2026, reduction in subsidies, pricing cuts, or loss of eligibility could materially impact its operations. Since revenue is closely tied to farmers selecting GK Energy as a vendor under this scheme, adverse policy or participation changes pose significant risks to growth, profitability, and cash flows.

Outlook and Valuation

GK Energy is strategically positioned to scale its leadership in the solar EPC market by replicating its Maharashtra success across high-potential states such as Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh, which collectively account for the bulk of PM-KUSUM Scheme allocations. Having already expanded operations into these states and secured initial orders, the company is well placed to tap into strong irrigation-led demand, coupled with the government’s effort to scale installed solar pump systems to 4 million by FY29. The company also plans to cater to farmers seeking a second pump through direct sales, further diversifying demand drivers beyond subsidised schemes. With 22 million grid-dependent and 8 million diesel-based pumps still in use nationwide, GK Energy’s solutions address a large replacement opportunity that is both economically attractive and environmentally relevant.

Parallelly, the company is focusing on diversifying revenues into the fast-growing rooftop solar segment, supported by favourable subsidy policies such as PM Surya Ghar Yojana and state-led rooftop programs. With India’s rooftop capacity already reaching 18.8 GW and government targets of adding 24–26 GW by FY29, GK Energy is positioned to leverage its EPC expertise, brand presence, and cost advantages once backward integration is achieved. Orders worth ₹232.85 million for 5.28 MW of rooftop solar systems in Maharashtra highlight the early traction in this vertical. Rooftop demand is further strengthened by increased financing availability through banks, and the government’s push to solarise 10 million households, creating a sustained growth runway. By expanding into both residential and C&I rooftops, the company can meaningfully de-risk its reliance on agricultural EPC revenues.

A critical pillar of GK Energy’s future strategy is backward integration into solar panel manufacturing, with a planned 1 GW facility in Maharashtra by September 2026. Since modules account for nearly 40% of EPC costs, in-house production will significantly improve cost control, ensure assured supply, and enhance competitiveness against integrated players. Initially targeted for captive use across pump and rooftop projects, this move could meaningfully lift margins and strengthen the company’s ability to win bids under the lowest-cost model of government schemes. Alongside, developing a vendor ecosystem for key components and exploring opportunities in larger pump systems, solarisation of grid-connected pumps, and C&I EPC projects will expand its addressable market. Collectively, these initiatives enhance revenue visibility, margin resilience, and long-term positioning in India’s fast-evolving solar energy landscape. Order book of Rs 1,028 crore is weak which is below 1 times FY25 sales. The sustainability of growth, enhancement of margins, and strengthening of the balance sheet are crucial for rerating. GK Energy Ltd. is valued at a P/E multiple of 23x Fy25 earnings. We believe IPO is attractively priced relative to peers. Aggressive investor can SUBSCRIBE to the issue, but actively monitor order book, its execution & return ratios post listing.