GK Energy Limited – IPO Reviews 2025, Analysis and Notes

Recommendation: Subscribe – Long term

Key Highlights

Company Background:

GK Energy Limited, originally incorporated in 2008 as GK Energy Marketers Private Limited, is a Pune-based renewable energy solutions provider that transitioned into a public limited company in 2024. The company is India’s largest pure-play EPC provider for solar-powered agricultural water pump systems under the PM-KUSUM scheme, offering farmers end-to-end solutions from survey and design to installation and maintenance. It is empaneled across key states such as Maharashtra, Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh, which together account for the majority of subsidized solar pump installations. Through its wholly owned subsidiary, GK Energy is also engaged in solar product manufacturing. Backed by strong policy support and growing demand for clean irrigation solutions, the company is positioned at the intersection of renewable energy and agri-infrastructure.

Market Opportunity:

India’s renewable energy expansion, backed by ambitious government targets, presents a large and expanding market for solar solutions. Programs like PM-KUSUM, Jal Jeevan Mission, and rooftop solar initiatives are driving demand for solar pumps, EPC services, and decentralized energy solutions. With increasing farmer adoption and state subsidies, solar-powered irrigation is expected to replace diesel and grid-dependent systems. Additionally, the solar equipment manufacturing segment is benefitting from “Make in India” and import substitution policies. Collectively, these factors provide GK Energy with a multi-year growth runway in clean energy and rural infrastructure.

Key Strengths:

The company holds a leadership position as India’s largest EPC provider for solar-powered agricultural pumps under PM-KUSUM, supported by strong execution capabilities and empanelment across major states. Its integrated model covers survey, design, installation, and long-term maintenance, which enhances customer stickiness and recurring service income. GK Energy also benefits from a diversified state-level presence, reducing policy concentration risks. Its backward integration in solar product manufacturing strengthens supply capabilities, while its experience in executing large-scale projects and alignment with renewable and agri-infra policies further reinforce its strong positioning.

Strategy Going Forward:

The company aims to deepen its presence in government-backed solar pump programs while expanding into adjacent segments such as rooftop solar, solar streetlights, and water distribution infrastructure under schemes like Jal Jeevan Mission. It plans to leverage its execution track record and state empanelments to capture a larger share of renewable-focused tenders. GK Energy also intends to scale up its O&M services for recurring revenues and improved customer engagement. With supportive policy tailwinds, the company is building a resilient, pan-India renewable solutions platform.

Financials:

GK Energy has shown exceptional growth, with revenue from operations rising from ₹285 crore in FY23 to ₹1,094.2 crore in FY25, reflecting a CAGR of 95.99%. EBITDA grew from ₹17.17 crore to ₹199.69 crore (CAGR 240.9%), while PAT surged from ₹10 crore to ₹133.2 crore (CAGR 265.2%) during the same period. At the upper price band, the company is valued at a P/E of 23.3x FY25 earnings, which is reasonable given its robust growth. Hence, long-term investors may Subscribe.

Key Risks:

GK Energy is highly dependent on government schemes, exposing it to policy and execution risks. Subsidy-linked cash flows could affect working capital cycles. Intense competition, state-level policy changes, and supply chain disruptions could pressure margins and timelines.

Issue Highlights

Offer Structure

Lead Book Running Managers

• IIFL Capital Services Ltd.

• HDFC Bank Ltd.

Registrar to the Offer

• MUFG Intime India Pvt. Ltd.

Research Analyst

Rajan Gupta
📧 rajan.gupta1@religare.com

Research Team

• Ajit Mishra – ajit.mishra@religare.com

• Abhijeet Banerjee – abhijeet.banerjee@religare.com

• Gaurav Sharma – gauravsharma2@religare.com

• Ashwani Harit – ashwani.harit@religare.com

• Divya Parmar – divya.parmar@religare.com

• Vinay Kalani – vinay.kalani1@religare.com

• Rajan Gupta – rajan.gupta1@religare.com

• Author: Religare Broking
• Last Updated: September 22, 2025