Apollo Green Energy Limited Unlisted Shares

Apollo Green Energy Limited (AGEL) is the renewable energy arm of the three-decade-old Apollo International Group, one of India's most quietly diversified business conglomerates. Incorporated in 1994 and headquartered in Gurugram, AGEL has spent the last decade repositioning itself from a legacy trading and logistics entity into a full-stack clean energy Engineering, Procurement & Construction (EPC) company — at a time when India's renewable capacity addition has become a national priority.

The pivot has been real and operational. AGEL has delivered over 400 MW of solar power capacity nationwide — spanning fixed-tilt ground-mounted installations, floating solar projects, and rooftop systems across utility, commercial, and industrial segments. The company operates across eight states with active project execution experience in solar, wind, hydropower, Flue Gas Desulfurization (FGD), and energy storage systems.

What AGEL Actually Builds :

AGEL is a turnkey EPC operator. It takes a renewable energy project from feasibility and engineering through procurement, civil construction, equipment erection, and commissioning. Its service verticals span:

• Solar EPC : Utility-scale ground-mounted, floating solar, and rooftop installations

• Wind Energy : Turbine supply, erection, and commissioning

• Energy Storage (BESS) : Battery energy storage systems for grid stabilization and industrial applications

• Green Hydrogen : Early-stage development and pilot projects aligned with India's National Green Hydrogen Mission

• Flue Gas Desulfurization (FGD) : A ₹700 Crore pollution-control project underway, adding non-solar EPC depth to the portfolio

• Hybrid Power Systems : Integrated solar-wind-storage configurations for industries seeking round-the-clock renewable power

Beyond EPC, the company retains legacy operations in tyre, tube, and commodity trading, a carry-forward from the Apollo International Group's earlier diversified mandate that continues to generate ancillary revenue.

Order Book and Pipeline :

As of FY24, AGEL maintained an active order book of approximately ₹3,500 Crore spanning solar, hydro, and energy storage projects. The company has publicly stated a target of achieving 1 GW of cumulative EPC capacity by 2026, with a longer-term aspiration of a ₹10,000 Crore project portfolio milestones that, if executed, would materially re-rate the company.

The investment community has begun to take notice: Resonance, a marquee private fund, invested ₹40 Crore in AGEL — a signal of institutional-grade conviction in the company's EPC capabilities and growth trajectory.

CRISIL Credit Rated : An Unusual Mark of Quality for an Unlisted Entity :

AGEL carries a CRISIL credit rating of BBB/Stable (long-term) and A3+ (short-term), last reaffirmed in February 2023. For an unlisted company operating in project-based EPC, where working capital cycles are long and payment risks are real — an investment-grade CRISIL rating is a meaningful governance and creditworthiness marker that most peers in the unlisted space cannot match.

Group Backing and Management Pedigree :

AGEL operates under the strategic umbrella of Raaja Kanwar, Chairman & Managing Director and founder of the Apollo International Group — a business group with interests spanning renewable energy, logistics (Apollo LogiSolutions), and international trade. Kanwar holds a management degree from Drexel University, USA, and has steered the group through multiple industry cycles over three decades.

Day-to-day operations are led by Sanjay Gupta (CEO), a 35+ year infrastructure and power sector veteran with experience spanning project development, financial closure, EPC contracting, and O&M — a profile that brings genuine project execution credibility rather than just boardroom optics.

Investment Rationale

• India's renewable energy target of 500 GW by 2030 creates a decade-long structural demand runway for quality EPC players

• AGEL's 400+ MW delivered track record and ₹3,500 Cr order book provides execution credibility rare in the unlisted EPC space

• Investment-grade CRISIL rating (BBB/Stable) signals financial discipline and counterparty confidence

• Marquee institutional investor participation (Resonance Fund) validates pre-IPO attractiveness

• Strong group backing from Apollo International reduces default and counterparty risk on large project contracts

• Stock trades at a significant discount to reported book value — reflecting both the illiquidity of the unlisted market and the market's caution on EPC margin quality

KEY RISKS

• Revenue Visibility Risk — EPC revenue is milestone-driven; FY25's 35% revenue decline from FY24 illustrates how project completion cycles cause sharp year-on-year swings that are difficult to predict

• Razor-Thin Operating Margins — Core EPC operating margin is approximately 2%; business profitability is heavily supplemented by other income, which is inherently non-recurring

• Cash Position Near-Zero — Cash and cash equivalents of ₹1.97 Crore against total assets of ₹1,580 Crore represents a structurally thin liquidity buffer for a project-execution business

• High Trade Receivables — ₹238.98 Crore in outstanding receivables against ₹806 Crore revenue implies a DSO (Days Sales Outstanding) of approximately 108 days — reflecting payment delays common in government and PSU project payments

• Debt Load Is Meaningful — Total consolidated borrowings of ₹493.27 Crore against equity of ₹665 Crore gives a D/E of 0.74x; combined with low margins, interest coverage headroom is limited

• Revenue Concentration in Government/PSU Clients — EPC revenue depends on PSU and state government projects that carry procurement delays, tender re-negotiation risk, and extended payment cycles

• Legacy Non-Core Business — Tyre, tube, and commodity trading operations continue to run alongside the clean energy EPC business, creating business complexity and diluting the pure-play renewable energy narrative

• No IPO Date Confirmed — Despite being IPO-ready in profile, no DRHP has been filed yet; there is no confirmed timeline for listing, making this a patient capital play

• 2 Active Legal Cases — Two cases filed against the company are on MCA record; details and financial impact of these proceedings are not publicly disclosed

KEY OPPORTUNITIES

• 500 GW Renewable Target Creates Decade-Long EPC Demand : India's National Electricity Plan mandates over 300 GW of new solar and wind capacity by 2030; AGEL is an established EPC player with a track record to capture this pipeline

• ₹700 Crore FGD Project Diversifies Revenue : The Flue Gas Desulfurization project extends AGEL's EPC capabilities beyond renewables into industrial pollution control — a segment with long-duration government mandates

• Green Hydrogen — Early Mover Advantage : India's National Green Hydrogen Mission targets 5 MMT production by 2030; AGEL's early entry positions it for EPC contracts in electrolyzer deployment and hydrogen infrastructure

• BESS — Battery Storage Is the Next EPC Mega-Cycle : As solar penetration grows, grid-scale battery storage mandates will drive a multi-billion-dollar EPC opportunity; AGEL's early capability development is a strategic asset

• CRISIL BBB/Stable — Access to Cheaper Project Finance : Investment-grade rating enables AGEL to access bank credit for project financing at competitive rates — a meaningful cost advantage over unrated EPC peers

• Pan-India GST Presence Across 11 States : 19 active GST registrations across 11 states signals genuine operational reach and positions AGEL to bid for multi-state renewable portfolios

• Resonance Fund Participation Signals Pre-IPO Re-rating : ₹40 Crore institutional investment provides a valuation anchor and accelerates the IPO preparation process

• Apollo Group Brand and Network : Access to the Apollo International Group's three-decade business relationships, particularly in project financing and government counterparty introductions, is a soft competitive advantage difficult to replicate