Karma Energy Ltd is a small-cap company in India’s renewable energy sector, primarily engaged in power generation from wind and hydro sources. Incorporated in 1997, the company has faced significant operational challenges in recent years, including a sharp decline in revenue and minimal scale. While it reported a massive 1,156% profit growth in FY2025, this was largely due to a low base effect, as its absolute earnings remain very small. This article provides a clear, fact-based analysis of its business model, financial health, and future outlook to establish realistic share price targets from 2026 through 2030.
Karma Energy Ltd: Company Overview
- Business Model: Generates electricity from wind and hydro power plants and sells it under long-term Power Purchase Agreements (PPAs).
- Geography: Operates across India, with assets in states like Himachal Pradesh and Maharashtra.
- Key Developments: The company has not announced any major new project wins or capacity additions recently. Its operational scale remains limited, with FY2025 revenue of just ₹28.4 crore.
Karma Energy Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹47.00 |
| Market Capitalization | ₹54.32 Crore |
| 52-Week High/Low | ₹72.4 / ₹42.5 |
| P/E (TTM) | 97.18 |
| P/B (TTM) | 1.31 |
| ROE (FY2025) | 3.98% |
| ROCE (FY2025) | 4.31% |
| Debt/Equity (Mar 2025) | 0.02 |
| FY2025 Revenue | ₹28.40 Crore |
| FY2025 Net Profit | ₹0.56 Crore |
Karma Energy Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹50 – ₹60 |
| 2027 | ₹55 – ₹68 |
| 2028 | ₹60 – ₹75 |
| 2029 | ₹65 – ₹85 |
| 2030 | ₹70 – ₹95 |
Note: These targets are derived from a synthesis of credible analyst discussions and projections found in the public domain, adjusted for a neutral, educational perspective.
Karma Energy Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹50 | ₹60 |
- The company’s return to profitability in FY2025 is a positive sign, but its earnings are extremely modest (EPS of ₹0.48).
- An extremely high P/E ratio of 97 suggests the stock is priced for perfection, leaving little room for error.
- The company is almost debt-free, which is a governance plus, but its tiny scale limits its strategic options.
Karma Energy Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹55 | ₹68 |
- Growth will depend entirely on the company’s ability to win new projects or acquire operational assets, for which there is no current evidence.
- As a micro-cap player in a capital-intensive sector dominated by large corporations, it faces immense pressure on financing and execution.
- Investor sentiment will remain cautious due to its history of inconsistent profits and negligible institutional ownership.
Karma Energy Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹60 | ₹75 |
- By this stage, the market will be looking for evidence of a sustainable, scalable business model beyond one-off asset sales or accounting gains.
- Its success is tied to its ability to secure more PPAs and manage its operations efficiently.
- A significant improvement in return metrics would be necessary to justify a higher valuation.
Karma Energy Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹65 | ₹85 |
- Long-term investors will be watching for the company to establish itself as a reliable, small-scale player in the distributed renewable space.
- Any diversification into new areas like rooftop solar could act as a re-rating catalyst, but there is no indication of such plans currently.
- Sustained high returns on capital would be a key requirement to attract broader investor interest.
Karma Energy Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹70 | ₹95 |
- Sentiment will depend on Karma Energy achieving a critical mass of operational assets and demonstrating a path to robust, predictable cash flows.
- If it can maintain its current ROE of nearly 4% while growing its asset base, it could command a more reasonable valuation.
- However, its ultra-low scale compared to peers makes it a high-risk, speculative bet.
Karma Energy Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters | 74.70% |
| Foreign Institutions (FII/FPI) | 0% |
| Domestic Institutions (DII) | 0% |
| Public (Retail & Others) | 25.30% |
Promoters hold a dominant 74.70% stake, indicating strong control. There is no pledging of shares, which is a positive governance signal, though the complete absence of institutional investors is a red flag.
Karma Energy Ltd: Strengths vs Risks
- Strengths:
- Sector Tailwinds: Operates in the renewable energy space, which benefits from India’s 500 GW non-fossil fuel target by 2030.
- Clean Balance Sheet: Almost debt-free with a clean financial structure.
- Pure-Play Renewable: Offers direct exposure to wind and hydro power generation.
- Risks:
- Extremely Low Scale: With a market cap of just ₹54 crore and annual revenue under ₹30 crore, it is a micro-cap with limited visibility.
- Collapsing Revenue: A 29.54% YoY sales decline in FY2025 is a severe concern that overshadows its profit growth.
- High Valuation: A P/E of 97 is unsustainable for a company of its size and earnings.
- No Institutional Interest: Zero FII/DII holding indicates a lack of professional investor confidence.
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Extremely High (micro-cap, unprofitable at scale) |
| Time Horizon | Not suitable for long-term investment |
| Volatility | Very High – prone to sharp, speculative moves |
| Dividend/Income | None – the company does not pay dividends (0% yield). |
| Ideal Investor | Only highly speculative traders with a very high risk appetite should consider this stock. It is not suitable for any conservative or long-term portfolio. |
Karma Energy is not an investment but a speculative gamble on a potential corporate turnaround.
FAQs
Is Karma Energy a buy or sell?
For most investors, Karma Energy is a sell or avoid. Its tiny scale, collapsing revenue, and extremely high valuation make it unsuitable for serious portfolios. Only aggressive speculators should consider it.
Is Karma Energy publicly traded?
Yes, Karma Energy Ltd is listed on the BSE and NSE and is available for public trading.
Which power energy share is best?
There is no single “best” share. Large, stable utilities like NTPC, Power Grid, or Tata Power are better for conservative investors. Pure-play growth stocks like KP Energy or ACME Solar are suited for higher risk tolerance. Karma Energy is not among the top choices due to its micro-cap status.
What is the history of Karma Energy?
Karma Energy was incorporated in 1997 and has been involved in wind and hydro power generation for over two decades. It has historically struggled with scale and consistent profitability, often operating at the margins of the renewable sector.
Is energy a good investment for 2026?
The energy sector, particularly renewables, offers strong long-term potential in India. However, stock selection is crucial. Focus on companies with proven execution, strong balance sheets, and visible growth pipelines—not micro-caps like Karma Energy.
Final Verdict
Karma Energy Ltd remains a marginal player in India’s vast renewable energy landscape. While its debt-free status and return to profit are positive, these are overshadowed by its collapsing revenue, minuscule scale, and extreme valuation. For all but the most speculative traders, this stock warrants extreme avoidance. Our 2026–2030 price targets (₹50–₹95) reflect a scenario of marginal stabilization, but the more probable trajectory is continued stagnation or decline toward its book value of ₹35.97 per share—if the underlying assets retain their value.
Sources
- Screener.in – Karma Energy Ltd. Consolidated Financials (FY2025)
- Finology Ticker – KARMAENG Company Profile & Ratios
- Groww – Karma Energy Ltd Fundamental Data
- BSE/NSE Corporate Filings – Quarterly Results (Sep 2025)
