Sun Drops Energia Limited
1 MAbout Sun Drops Energia Limited
A Comprehensive Overview of Price & Journey
Understanding Sun Drops Energia Limited Inception and Growth
Overview
Sun Drops Energia is a wholly owned subsidiary of KPI Green Energy, incorporated in May 2019. Sun Drops is created after 11 years of KPI Green to specifically handle rapidly growing Battery Energy Storage System (BESS) and smaller Captive Power Projects (CPP).
Revenue of the company has approximately doubled – it reported INR 168.64 Cr in FY24 and INR 368.96 Cr in FY25.
The company has total portfolio (IPP + CPP) of 71+ MW In FY2024-25.
KPI Green Energy Ltd is the majority shareholder (65.87%) in Sun Drops, Dr. Faruk G Patel holds 16.62% and the remaining 17.51% is held by public and institutional shareholders.
Currently the company is traded in unlisted market, it grabs attention of investors since it operates in one of the lucrative business sectors.
As per the latest update the company is preparing its DRHP to launch its IPO, the top management is planning to bet of BESS as the next growth engine.
How does Sun Drops Energia Makes Money?
Sun Drops runs a narrow but high-quality business by leveraging KPI Green’s land, client relationship and execution infrastructure.
Segment 1 – Independent Power Producer
Sun Drop owns and operates solar and hybrid power plants, it produces electricity and sells to C&I clients such as Ascolite, JMT, Raghunandan, and VG Global Pvt Ltd via open access or bilateral agreements and to utility scale buyers like GUVNL under long-term PPA.
-
Current IPP portfolio of Sun Drops has crossed 22 MW
-
Hybrid Portfolio – 16+ MW
-
IPP segment services as long-term recurring revenue unlike EPC, which is onetime but secures higher margin at huge capital investment.
-
On an average the company earns INR 3- 7.50 per kWh, while the exact rate varies as per size of installation, durations and other dynamics.
Segment 2 – CPP (Captive Power Producer) EPC
Sun Drops also designs, builds and delivers ready to use solar plants for C&I clients who wants avoid electricity cost by developing their own source of power. Depends upon the contract the company also takes the responsibility to manage and operate it.
Recent CPP orders:
-
Received a repeat order for delivering 100 MW solar power project in Gujrat expected to be completed by FY 2026-27.
-
In January 2025, the company received multiple 62.20 MW orders by domestic clients under Gujrat’s DREBP policy and GERC Tariff orders.
-
In July 2025, Sun Drops received orders of 36.87 megawatts (MW) under the company’s Captive Power Producer (CPP) business segment.
This segment earns a one-time revenue realized in phases based on milestone achievement.
CPP portfolio of the company exceeds 49 MW of installed capacity.
Segment 3 – Operations and Maintenance
This is the ancillary business segment of Sun Drop where it provides operations and maintenance services bundled with EPC projects. It serves as the recurring revenue source.
Competitive Landscape
Sun Drop faces competition at operational level and its parent – KP Group competes against the largest renewable energy conglomerate in the country.
-
CleanMax Solar
-
Fourth Partner Energy
-
Spring Energy
-
Gh2 Solar
SWOT Analysis
Strength
-
Exponential Financial Growth – Revenue doubling in FY26 to INR 366.67 Cr (118% YoY), and PAT jumped to INR 51.25 Cr (88.6% YoY).
-
Strong Corporate Backing – Sun Drops leverages the management, infra and credit support from parent (KPI Green Energy).
-
Healthy Order Pipelines – Sun Drops has secured many project orders from domestic and utility scale clients.
-
Pioneering Grid-Scale Energy Storage (BESS) – executing massive orders in BESS.
Weakness
-
Geographical Concentration Risk – Operational footprints of the company is majorly focused in Gujrat, leaving it exposed to regulatory and grid level risk.
-
Capacity Ceiling within Corporate Group – KP Group the parent company intentionally restricted to small scale projects (<35 MW) and large-scale utility projects are bypass to the parent.
-
Margin Compression in Core EPC – Operating profits have experienced slight compression to 20.87% in FY25 down from 23.31% in FY24.
-
Initial Capital Intensity of Storage Assets -
Opportunities
-
Value unlocking via IPO
-
Booming Storage as Service Demand
-
Cutting -Edge Technological Alliance
Threats
-
Stringent Operational SLA Penalties
-
Strict Indigenous Content Mandates
-
Fierce Tendering Aggression
SHOW MORE...
Overview
Sun Drops Energia is a wholly owned subsidiary of KPI Green Energy, incorporated in May 2019. Sun Drops is created after 11 years of KPI Green to specifically handle rapidly growing Battery Energy Storage System (BESS) and smaller Captive Power Projects (CPP).
Revenue of the company has approximately doubled – it reported INR 168.64 Cr in FY24 and INR 368.96 Cr in FY25.
The company has total portfolio (IPP + CPP) of 71+ MW In FY2024-25.
KPI Green Energy Ltd is the majority shareholder (65.87%) in Sun Drops, Dr. Faruk G Patel holds 16.62% and the remaining 17.51% is held by public and institutional shareholders.
Currently the company is traded in unlisted market, it grabs attention of investors since it operates in one of the lucrative business sectors.
As per the latest update the company is preparing its DRHP to launch its IPO, the top management is planning to bet of BESS as the next growth engine.
How does Sun Drops Energia Makes Money?
Sun Drops runs a narrow but high-quality business by leveraging KPI Green’s land, client relationship and execution infrastructure.
Segment 1 – Independent Power Producer
Sun Drop owns and operates solar and hybrid power plants, it produces electricity and sells to C&I clients such as Ascolite, JMT, Raghunandan, and VG Global Pvt Ltd via open access or bilateral agreements and to utility scale buyers like GUVNL under long-term PPA.
-
Current IPP portfolio of Sun Drops has crossed 22 MW
-
Hybrid Portfolio – 16+ MW
-
IPP segment services as long-term recurring revenue unlike EPC, which is onetime but secures higher margin at huge capital investment.
-
On an average the company earns INR 3- 7.50 per kWh, while the exact rate varies as per size of installation, durations and other dynamics.
Segment 2 – CPP (Captive Power Producer) EPC
Sun Drops also designs, builds and delivers ready to use solar plants for C&I clients who wants avoid electricity cost by developing their own source of power. Depends upon the contract the company also takes the responsibility to manage and operate it.
Recent CPP orders:
-
Received a repeat order for delivering 100 MW solar power project in Gujrat expected to be completed by FY 2026-27.
-
In January 2025, the company received multiple 62.20 MW orders by domestic clients under Gujrat’s DREBP policy and GERC Tariff orders.
-
In July 2025, Sun Drops received orders of 36.87 megawatts (MW) under the company’s Captive Power Producer (CPP) business segment.
This segment earns a one-time revenue realized in phases based on milestone achievement.
CPP portfolio of the company exceeds 49 MW of installed capacity.
Segment 3 – Operations and Maintenance
This is the ancillary business segment of Sun Drop where it provides operations and maintenance services bundled with EPC projects. It serves as the recurring revenue source.
Competitive Landscape
Sun Drop faces competition at operational level and its parent – KP Group competes against the largest renewable energy conglomerate in the country.
-
CleanMax Solar
-
Fourth Partner Energy
-
Spring Energy
-
Gh2 Solar
SWOT Analysis
Strength
-
Exponential Financial Growth – Revenue doubling in FY26 to INR 366.67 Cr (118% YoY), and PAT jumped to INR 51.25 Cr (88.6% YoY).
-
Strong Corporate Backing – Sun Drops leverages the management, infra and credit support from parent (KPI Green Energy).
-
Healthy Order Pipelines – Sun Drops has secured many project orders from domestic and utility scale clients.
-
Pioneering Grid-Scale Energy Storage (BESS) – executing massive orders in BESS.
Weakness
-
Geographical Concentration Risk – Operational footprints of the company is majorly focused in Gujrat, leaving it exposed to regulatory and grid level risk.
-
Capacity Ceiling within Corporate Group – KP Group the parent company intentionally restricted to small scale projects (<35 MW) and large-scale utility projects are bypass to the parent.
-
Margin Compression in Core EPC – Operating profits have experienced slight compression to 20.87% in FY25 down from 23.31% in FY24.
-
Initial Capital Intensity of Storage Assets -
Opportunities
-
Value unlocking via IPO
-
Booming Storage as Service Demand
-
Cutting -Edge Technological Alliance
Threats
-
Stringent Operational SLA Penalties
-
Strict Indigenous Content Mandates
-
Fierce Tendering Aggression
Fundamentals
Financials
All values are INR Cr except per share value
| P&L Statement |
|---|
| Revenue |
| Other Income |
| COGS |
| Gross Profit |
| Total Expense |
| EBIDTA |
| D&A |
| EBIT |
| Interest Expense |
| PBT |
| TAX |
| PAT |
| Diluted EPS |
| Basic EPS |
| Total income |
ASSETS
| CURRENT ASSETS |
|---|
| Cash and Cash Equivalents |
| Trade Payables |
| Inventory |
| Other Current Assets |
| Total Current Assets |
| NON CURRENT ASSETS |
|---|
| Plant Property and Equipment |
| Long Term Investment |
| Other Non Current Assets |
| TOTOAL NON CURRENT ASSSETS |
| Total Assets |
|---|
| CURRENT LIABILITES |
|---|
| TRADW Payable |
| Other Current Liab |
| Total Current Liab |
| NON CURRENTLIABILITIES |
|---|
| Long Term Debt |
| Deffered Tax Liab |
| Other Non Current Liab |
LIABILITIES
| EQUITY |
|---|
| Share Capital |
| Reserves And Surplus |
| Other Equity |
| Retained Earnings |
| share Equity |
| Total Liabilities |
|---|
| CASH FLOW STAT |
|---|
| Cash Flow from operating |
| Cash Flow from financing |
| Cash Flow from investing |
| Net cash flow |