Orient Green Power Company Ltd (OGPCL) is a leading Indian independent renewable energy-based power generation company. Incorporated on December 6, 2006, in Chennai, Tamil Nadu, the company specializes in the development and operation of wind, biomass, biogas, and small hydroelectric projects. OGPCL stands as one of the largest independent operators and developers of renewable energy power plants in India.
The company operates under the leadership of Chairperson K S Sripathi and Managing Director T Shivaraman. As of March 31, 2024, Orient Green Power boasts a total installed capacity of 402.3 megawatts (MW) and serves a diverse customer base of 45 clients, predominantly comprising commercial and industrial entities, alongside two government utilities.
Orient Green Power has established a diversified renewable energy portfolio with operations across multiple segments, primarily focusing on wind energy. Its wind energy plants are strategically located in states such as Tamil Nadu, Karnataka, and Gujarat. The company's wind energy business is dedicated to the development and operation of wind farms not only in India but also with an eye on expansion into Europe and South Asia. Currently, their operational wind farms are concentrated in Tamil Nadu and Andhra Pradesh.
The company's customer base includes State Electricity Boards (SEBs), distribution companies, private commercial and industrial consumers, and a power trading company. OGPCL sells power from some of its wind energy projects to private consumers for captive purposes through short-term Power Purchase Agreements (PPAs) in permitted states like Tamil Nadu. Additionally, power from their Indian wind energy projects is sold to SEBs via long-term PPAs, which typically extend for approximately 20 years.
Orient Green Power's financial performance in recent quarters reflects both the opportunities and challenges inherent in the renewable energy sector.
For Q4 FY2024-25, the company reported:
- Revenue: ₹41.47 Crore
- Net Profit: ₹-15.09 Crore
For the full financial year ended March 2025:
- Net Profit: Rose 6.24% to ₹38.81 Crore, compared to ₹36.53 Crore in FY2023-24.
- Sales: Rose 1.53% to ₹263.45 Crore, compared to ₹259.48 Crore in FY2023-24.
As of today, the company's market capitalization stands at ₹1,658.67 Crore. The stock performance metrics include a 52-week high of ₹23.43 and a 52-week low of ₹10.96. The P/E (price-to-earnings) ratio of Orient Green Power Company Ltd (GREENPOWER) is 42.86.
- Q4 FY2024-25 Performance: Net Sales of ₹41.47 Cr, Net Profit of ₹-15.09 Cr
- FY2024-25 Performance: Net Sales of ₹263.45 Cr, Net Profit of ₹38.81 Cr
- FY2023-24 Performance: Net Sales of ₹259.48 Cr, Net Profit of ₹36.53 Cr
- Market Capitalization: ₹1,658.67 Crore
- 52-Week High/Low: ₹23.43 / ₹10.96
- P/E Ratio: 42.86
- Debt to Equity: 80%
Orient Green Power is actively pursuing expansion opportunities to capitalize on India's burgeoning renewable energy market. A key initiative involves its subsidiary, Delta Renewable Energy, which has secured an EPC contract for a 7 MW solar project in Tamil Nadu, estimated to cost ₹40 crore. This project is expected to be completed within five months, highlighting the company's commitment to diversifying its renewable energy portfolio.
The company has ambitious plans to significantly increase its installed capacity from 400 MW to 1 GW (1000 MW). This objective was formally approved in a board meeting on February 2, 2024, which also sanctioned the construction of a 39.6 MW solar power plant in Tamil Nadu. This plant comprises two 19.8 MW solar power projects, with an estimated total cost of ₹293 Crore.
To fund these expansion plans, the company successfully completed a rights issue in 2024, and is preparing for a second Rights Issue (RI) of 192,307,692 equity shares of ₹10 each at a fixed price of ₹13 per share, aiming to mobilize ₹250.00 crore.
Orient Green Power demonstrates a strong commitment to technological advancement and sustainable practices. The company is exploring expanding its presence into overseas markets with a planned investment of ₹1500 crore. OGPCL is committed to diversifying its renewable energy project portfolio, with ongoing efforts including the acquisition of 3.64 MW of additional wind capacity, the establishment of 622 MW wind energy projects, and 178.5 MW of biomass projects. Furthermore, the company is making advancements into the solar and waste-to-energy markets.
The company has a history of strategic financial management. Notably, its high-cost debt of ₹721 Crore was refinanced by the Indian Renewable Energy Development Agency (IREDA) in April 2023. This strategic move resulted in a significant saving of 300 basis points in interest cost, which is expected to enhance the company's profitability.
Orient Green Power presents a blend of opportunities and challenges for investors within the renewable energy sector. While the company recorded an annual revenue de-growth of -3%, which indicates a need for improvement, its pre-tax margin of 14% is healthy. The Return on Equity (ROE) of 4% is fair but also signals room for enhancement. A key consideration for investors is the company's debt-to-equity ratio of 80%, which is relatively higher.
Despite these points, Orient Green Power's positioning in India's renewable energy sector remains strong. Its current portfolio is primarily wind energy, with plans to expand into solar and hybrid models (comprising wind & solar). As India continues its robust transition toward renewable energy, Orient Green Power is strategically well-positioned to benefit from this secular growth trend. However, investors should carefully evaluate the company's debt levels and execution capabilities when making investment decisions.
