Kaka Industries Commissions 7.5 MW Captive Solar Plant; EBITDA Benefits to Begin from July 1

Mumbai, July 2:Kaka Industries Ltd. has commissioned its 7.5 MW captive solar power plant at Kheda in Gujarat, a move that is expected to lower energy costs and start contributing to the company’s operating earnings from July 1, 2026.

The company said the plant became fully operational in mid-June and has now been stabilised. With commercial operations underway, the associated reduction in electricity costs will begin flowing into EBITDA from the current month.

According to the business update filed with the exchanges, the captive facility has been developed primarily to meet the company’s internal power requirements across its PVC, WPC and uPVC manufacturing operations.

Solar Plant Expected to Deliver Recurring Cost Savings

Kaka Industries expects the project to generate monthly power cost savings of around ₹45 lakh, translating into an annualised run-rate benefit of approximately ₹5.4 crore.

The company said these savings should begin reflecting in its financial performance from the second quarter of FY2026-27, improving operating margins without requiring any increase in production volumes.

With an estimated useful life of about 25 years, the captive solar plant is also expected to provide long-term protection against fluctuations in grid electricity tariffs, helping reduce one of the company’s largest operating expenses.

Stock Market Snapshot

The announcement had little immediate impact on the stock.

As of 12:26 PM IST on July 2, Kaka Industries share price was trading at ₹225.00, largely unchanged during the session.

While investors did not react sharply, captive renewable energy projects are generally viewed as positive because they improve cost efficiency and can enhance profitability over time, particularly for energy-intensive manufacturing businesses.

Renewable Energy Initiative Supports Margin Expansion

The company said the solar project forms part of its broader renewable energy strategy and is intended to strengthen the sustainability of its manufacturing operations.

Captive power generation allows industrial companies to reduce dependence on grid electricity while providing greater visibility over future energy costs. For manufacturers such as Kaka Industries, where electricity is a significant input cost, sustained savings can have a meaningful impact on operating margins.

Management said it will continue to monitor the plant’s performance and provide updates on realised savings in future quarterly disclosures.

Company Background

Kaka Industries manufactures PVC, WPC and uPVC profiles used across building materials and infrastructure applications. The company has been investing in operational efficiencies alongside capacity expansion to improve profitability and support long-term growth.

The commissioning of the captive solar facility aligns with this strategy by reducing operating costs while increasing the share of renewable energy used in its manufacturing process.

Conclusion

The commissioning of the 7.5 MW captive solar power plant marks an important operational milestone for Kaka Industries. With expected annual power savings of about ₹5.4 crore, the project is set to provide recurring cost benefits and strengthen EBITDA from the current quarter onwards.

Investors will now look for these savings to reflect in the company’s financial performance over the coming quarters as the plant operates at full capacity.

Source:

• https://www.bseindia.com/stock-share-price/kaka-industries-ltd/kaka/543939
• https://www.bseindia.com/xml-data/corpfiling/AttachLive/36a68ec5-6e13-4af6-b73c-0f385e180723.pdf