Sembcorp Green Infra IPO

Strengths · 7

• 01Operating capacity was 3,596.86 MW in FY2026, up from 2,930.56 MW in FY2025 and 2,685.06 MW in FY2024.
• 02Under construction capacity stood at 4,039.70 MW/MWh at 31 March 2026, which is 1.12 times the operating capacity.
• 03EBITDA margin was 74.20% in FY2026, 74.99% in FY2025 and 75.89% in FY2024.
• 04Revenue from operations grew from Rs 2,249.18 crore in FY2024 to Rs 2,652.50 crore in FY2026, and profit rose from Rs 298.83 crore in FY2025 to Rs 371.08 crore in FY2026.
• 05Cash from operating activities was Rs 1,986.63 crore in FY2026, Rs 1,891.41 crore in FY2025 and Rs 1,959.91 crore in FY2024.
• 06Days of receivables fell from 38 in FY2025 to 29 in FY2026.
• 0785.40% of operating capacity and 90.24% of total contracted capacity is under power purchase agreements with central or state government entities.

Risks · 10

• 01Top 10 offtakers gave 75.10% of gross revenue from power generation (billed) in FY2026, and Solar Energy Corporation of India alone gave 24.43%.
• 02Tamil Nadu and Gujarat projects gave 38.70% of gross revenue from power generation (billed) in FY2026, so a state-level change can hurt revenue.
• 03Total borrowings were Rs 12,623.38 crore at 31 March 2026 against a net worth of Rs 9,340.74 crore, up from Rs 9,318.76 crore of borrowings in FY2024.
• 04Net debt to EBITDA was 5.51 times and interest coverage was 2.58 times in FY2026.
• 05Profit for FY2026 was Rs 371.08 crore on EBITDA of Rs 2,098.73 crore, and return on net worth was 3.71%.
• 06Net cash used in investing activities was Rs 1,824.78 crore in FY2026 and Rs 2,949.81 crore in FY2025, so growth needs steady funding.
• 07Under construction capacity of 4,039.70 MW/MWh depends on timely execution, and delays or cost overruns can bring penalties.
• 08Power purchase agreements generally have fixed tariffs, so higher production costs cannot easily be passed on.
• 09Part of the fresh issue may fund general corporate purposes, which can be up to 25% of gross proceeds and is not yet specified.
• 10Litigation against the company includes 6 criminal cases, 10 tax cases and 4 statutory or regulatory actions, and 8 tax cases against the promoters involve Rs 21.57 crore.

Sembcorp Green Infra Limited is a renewable independent power producer based in Gurugram. It develops, runs and maintains utility-scale wind, solar and storage projects in India. The company started in 2005 and says it is among the top 10 largest renewable power producers in India by operational capacity as at 31 March 2026 (CRISIL report).

As at 31 March 2026, the portfolio had 105 projects in 13 states and union territories. Of these, 84 were operating and 21 were under construction. Operating capacity was 3.60 GW. Another 4.04 GW/GWh was under construction, made up of 2.61 GW of renewable capacity and 1.43 GWh of battery storage. The company has 42 single-technology wind projects, 41 single-technology solar projects and 1 complex project in operation.

The projects are of two kinds. Single technology projects use only wind, only solar or only storage. Complex projects combine wind, solar and storage, for example wind-solar hybrid and round-the-clock supply projects built to an offtaker's needs. The company builds projects through its own flexible engineering, procurement and construction set-up and runs them with in-house operation and maintenance teams.

The customers are power buyers: central government agencies, state government agencies and private buyers including commercial and industrial users. Its top five offtakers gave 24.43%, 9.68%, 8.89%, 5.85% and 5.56% of gross revenue from power generation (billed) in FY2026. Solar Energy Corporation of India is the largest buyer. The company reports one segment and operates only in India.

Sembcorp Utilities Pte Ltd and Sembcorp Industries Ltd are the promoters. Sembcorp Industries is listed on the Singapore Exchange. Sembcorp Utilities holds 100.00% of the company before the issue.

The industry

India had about 533 GW of installed power capacity in March 2026, of which about 52% was renewable, including large hydro (CRISIL report). Renewable capacity grew from about 133 GW in FY2020 to about 275 GW in March 2026, a CAGR of about 12.9%. Solar added about 116 GW over this period. Complex hybrid tenders were 86.94% of renewable tenders in FY2026, up from 31.68% in FY2021. The report expects over 80.00% of new capacity additions to come from renewables by FY2031.

Customer concentration: Top 10 offtakers gave 75.10% of gross revenue from power generation (billed) in FY2026 (76.57% in FY2025 and 82.61% in FY2024).