GK Energy Ltd IPO

We derived Rs.10,873.63 million, Rs.3,743.68 million and Rs.2,580.93 million, equivalent to 99.32%, 91.07% and 90.55% of our revenue from operations for Fiscals 2025, 2024 and 2023, respectively, from the engineering, procurement and commissioning ("EPC") of solar-powered agricultural water pump systems. Any decrease in demand for the EPC of solar-powered agricultural water pump systems could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Any failure to recover trade receivables could materially and adversely affect our business, financial condition, results of operations and cash flows.

We had net cash used in operating activities in Fiscals 2025, 2024 and 2023. We expect to experience net cash used in operating activities in the future and we will continue to require working capital financing, which if unavailable could adversely affect our ability to operate our business and implement our growth plans.

Failure to obtain adequate financing or generate sufficient cash flow to meet our working capital requirements and other liquidity requirements could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, increasing our borrowings increases our finance costs, thereby adversely affecting our results of operations and cash flows.

As we are currently a pure play EPC company, we may find it harder to compete with players that currently manufacture solar panels. Failure to compete effectively in the highly competitive solar-powered pump EPC industry could have an adverse effect on our business, results of operations, financial condition and cash flows.

Our revenue from the EPC for solar-powered pump systems - direct-to-beneficiary sales under the PM-KUSUM Scheme was Rs.9,177.52 million, Rs.3,058.22 million and Rs.2,537.23 million, equivalent to 83.83%, 74.39% and 89.02% of our revenue from operations for Fiscals 2025, 2024 and 2023, respectively. If the PM-KUSUM Scheme is not extended beyond its current end date of March 31, 2026 or replaced by similar state government schemes, it could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, a significant decrease in the number of farmers selecting us as their vendor under the PM-KUSUM Scheme or similar state government schemes, reductions in the amounts paid per solar-powered pump system installed under the PM-KUSUM Scheme or similar state government schemes, any unforeseen change in our eligibility to participate in the PM-KUSUM Scheme or similar state government schemes or any other adverse changes in the PM-KUSUM Scheme or similar state government schemes could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We derived Rs.1,656.36 million, Rs.685.29 million and Rs.113.65 million, equivalent to 15.13%, 16.67% and 3.99% of our revenue from operations for Fiscals 2025, 2024 and 2023, respectively, from our top customer in the respective years. The loss of our top customer for Fiscal 2025 and Fiscal 2024 or a material decrease in revenue from it without an equal or more increase in revenue from our other services could have a material adverse effect on our financial condition, results of operations and cash flows.

We currently conduct our business in the states of Maharashtra, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh. Any sustained downturn in the economy of any of those states, Maharashtra in particular, could reduce demand for solar-powered pump systems and thereby adversely affect our business, financial condition, results of operations and cash flows.

We rely on a limited number of third-party suppliers for components and materials for our business. A failure by a key supplier to perform could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Any downgrade of our debt ratings could lead to an increase in our borrowing costs and/or constrain our access to borrowings.