Can Juniper Green Energy IPO deliver long-term growth for high risk investors?

ET Intelligence Group: Juniper Green Energy, a renewable independent power producer (IPP), plans to raise ₹1,800 crore through a fresh issue to repay debt. The promoter stake will fall to 85.9% after the IPO from 100%. The company is aggressively expanding capacity to cater to rising power demand. About 98% of its capacity is covered through long-term power purchase agreements (PPAs), providing strong revenue visibility. However, high leverage, execution risks in commissioning under-construction projects, dependence on government policies, and high customer concentration remain key risks. Given these factors, the issue is suitable for long term investors with a higher risk appetite.

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Business
Incorporated in 2011 and rebranded as Juniper Green Energy in 2018, the company is among India’s top 10 renewable IPPs by total capacity. It develops, builds, operates and maintains renewable energy projects and generates revenue primarily through electricity sales under long-term PPAs. It had a portfolio of 7.9 giga watt spanning solar, wind, wind-solar hybrid and FDRE (Firm and dispatchable renewable energy) projects, including BESS (Battery energy storage system) linked projects at the end of June 2026. The company has secured more than 12,000 acres of land and over 300 WTG (Wind Turbine Generator) sites across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. Its portfolio comprised 20 operational projects (1,795 MW), 19 contracted projects (2,875 MW) and 11 awarded projects (3,240 MW) as of June 30, 2026. It derives about 86% of its revenue from two customers, Gujarat Urja Vikas Nigam and Maharashtra State Electricity Distribution, implying high customer concentration.

Financials
Revenue increased 36% annually to ₹718.9 crore in FY26 from ₹391.6 crore in FY24. Operating margin before depreciation and amortisation (Ebitda margin) moderated to 85.9% from 87.4% during the period though it remained within the peer range of 81-90%. Net profit remained stagnant at ₹40.5 crore in FY26 compared with ₹40.1 crore in FY24 given the investments in capacity building. Which elevated finance cost to ₹400 crore in FY26 from ₹191 crore in FY24.

The interest coverage ratio declined to 1.7 times from 1.8 times during the period. While net debt-equity ratio rose to 2.8 in FY26 from 0.8 in FY24, it was within the peer range of 1.5-4.8. These ratios are expected to improve given the company’s plan to reduce debt.

Valuation
The IPO is valued at an EV/operating Ebitda of 33.6 compared with 21.3 for ACME Solar and 29.5 for Adani Green Energy. Juniper’s premium valuation reflects its future potential growth given the capacity addition.