GK Energy shares jump 5% on receiving LoE amendment for solar pumps

GK Energy rose after it secured an amendment to its Letter of Empanelment from Maharashtra State Electricity Distribution Co for the supply of off-grid DC solar photovoltaic water pumping systems

Shares of GK Energy rose nearly 5 per cent on Wednesday after it secured an amendment to its Letter of Empanelment from Maharashtra State Electricity Distribution Co for the supply of an additional 10,000 off-grid DC solar photovoltaic water pumping systems. 

 

The civil construction company's stock rose as much as 4.7 per cent during the day to ₹158.9 per share, the biggest intraday rise since December 22 this year. The GK Energy stock pared gains to trade 2.5 per cent higher at ₹155.6 apiece, compared to a 0.09 per cent advance in Nifty 50 as of 12:28 PM. 

 

The GK Energy counter has fallen 9 per cent since its listing this year, compared to an 11 per cent advance in the benchmark Nifty 50 this year. GK Energy has a total market capitalisation of ₹3,154.82 crore.   CATCH STOCK MARKET LIVE UPDATES TODAY

GK Energy bags an order win

The company received an amendment to its Letter of Empanelment (LoE) from Maharashtra State Electricity Distribution Co for the supply of an additional 10,000 off-grid DC solar photovoltaic water pumping systems under the Magel Tyala Saur Krushi Pump Yojana / PM-KUSUM B scheme.

 

The order covers 3 HP, 5 HP and 7.5 HP pumps across Maharashtra. The total value of the order is ₹254.30 crore, which increases to ₹276.93 crore including goods and services tax.

 

Under the amended LoE, the company will undertake the design, manufacture, supply, transportation, installation, testing and commissioning of the systems. The installations are to be completed within 60 days from the issuance of the work order or notice to proceed, the company said.   ALSO READ | Granules surges 18% in 1 month; why pharma stock hits 52-week high today?

GK Energy Q2 recap

The company reported a 36.01 per cent rise in standalone net profit to ₹46.46 crore in the second quarter of FY25-26, compared with ₹34.17 crore in the corresponding quarter of the previous year. Revenue from operations increased 32.71 per cent year-on-year to ₹358.50 crore during the quarter.

 

Ebitda rose 37.63 per cent to ₹73.74 crore in the September quarter, from ₹53.58 crore a year earlier. The Ebitda margin improved to 20.57 per cent in the second quarter of FY25-26, compared with 19.83 per cent in the year-ago period.

 

GK Energy Ltd. (GEL) is India’s largest pure-play provider of engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems (also referred to as solar-powered pump systems) under Component B of the Central Government’s Pradhan Mantri KUSUM scheme. 

 

GK Energy offers farmers an end-to-end, single-source solution for the survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pump systems.