Kaka Industries Operationalizes 7.5 MW Captive Solar Plant in Gujarat; Expects Annual Savings of ₹5.4 Crore

Kaka Industries Limited has successfully commissioned a 7.5 MW captive solar power plant in the Kheda district of Gujarat, marking a major transition toward sustainable manufacturing and enhanced cost efficiency. The plant became operational in mid-June 2026 and has now stabilized.

The company confirmed that the financial benefits from this renewable energy asset will begin flowing directly into its operating margins starting July 01, 2026.

Direct EBITDA Boost and Financial Projections

The newly operational solar plant is designated entirely for self-consumption. Because it addresses a significant portion of the company's electricity needs, it is projected to yield immediate financial improvements.

Monthly Power Savings: The asset is expected to lower power costs by approximately ₹45 lakhs per month on a full-month run-rate basis.

Annualized Benefit: This monthly reduction translates to an annualized savings run-rate of roughly ₹5.4 crores.

Fiscal Impact for FY2026-27: Since the benefits take effect on July 01, 2026, Kaka Industries will realize approximately nine months of continuous cost savings within the current fiscal year. This structural drop in expenditure will expand EBITDA margins independently of changes in total manufacturing volume.

Asset Longevity: The solar facility has an estimated useful life of 25 years, ensuring a long-term, recurring positive impact on the company's cost architecture well past the initial payback timeline.

Insulating Energy-Intensive Operations

The manufacturing of PVC, WPC, and uPVC profiles requires substantial electricity. By shifting to captive renewable energy, Kaka Industries is directly tackling one of its largest controllable operational expenses.

Beyond immediate savings, owning the generation source shields the company's manufacturing units from localized grid tariff volatility. This allows for more predictable unit economics and stable product pricing moving forward.

Leaner Cost Outlook

With the solar plant fully functional at the onset of Q2 FY2026-27, management expects to maintain a leaner cost base through the remaining quarters of the fiscal year. The company plans to monitor ongoing generation metrics and will report realized operational savings during its upcoming quarterly financial disclosures.

Shares of Kaka Industries Limited was last trading in BSE at Rs. 216.00 as compared to the previous close of Rs. 210.55. The total number of shares traded during the day was 44500 in over 75 trades.

The stock hit an intraday high of Rs. 222.30 and intraday low of 208.00. The net turnover during the day was Rs. 9521425.00.

Source : Equity Bulls

Keywords

KakaIndustries PlasticProducts Industrial INE0P3N01018 CaptiveSolarPlant