Subsidiary Signs 25-Year Captive Power Purchase Agreement for 7.85 MWp Solar

Subsidiary Constronics Energy Solutions has executed a 25-year Captive Power Purchase Agreement with ELGI Equipments and Tablets (India).

Fri 25 Sep 2026

Agreement Duration

25 years

Solar Capacity Off-take

7.85 MWp DC

Stake Acquired by Partners

Combined 31.15%

Initial Annual Revenue

₹5.20 Crores

Projected Profit Impact

450% boost to current year net profit vs last year

What was announced

The company informed BSE that its subsidiary, Constronics Energy Solutions Private Limited, has executed a strategic partnership and Captive Power Purchase Agreement with ELGI Equipments Limited (listed on BSE and NSE) and Tablets (India) Limited, an unlisted pharmaceutical company.

Key terms

• The two counterparties have acquired a combined 31.15% equity stake in the subsidiary, in compliance with the Electricity Act, 2003, so they can be onboarded as designated Captive Users.
• Agreement tenure: 25 years.
• Off-take capacity: 7.85 MWp DC of solar energy generated by the subsidiary.
• Initial annual revenue stream of approximately ₹5.20 Crores.
• The company states this new business will boost net profit for the current year by 450% compared to last year's net profit.

How to read it

Under a captive power arrangement, the users of the electricity must also hold equity in the generating company. That is why ELGI Equipments and Tablets (India) have taken a stake in the subsidiary rather than simply buying power. This means the parent's ownership of the subsidiary is diluted to the extent of the 31.15% stake acquired by the two captive users, while the subsidiary gains committed long-term off-take for its solar capacity.

The revenue figure quoted is an initial annual stream at the subsidiary level, and the 450% profit statement is the company's own expectation for the current year.

Why it matters

The update points to contracted, long-duration revenue visibility for the renewable energy arm and association with an established listed industrial group and a pharmaceutical company as long-term partners.

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