Indowind Energy Limited — Q2 FY26 earnings call

Call held 24 Nov 2025

Management summary

Indowind Energy reported strong financial performance for Q2 and H1 FY26, driven by improved operational efficiency, favorable wind conditions, and disciplined cost control. The company is debt-free and is embarking on a strategic expansion into solar energy with a 4 MW project, aiming to leverage its land bank and internal accruals for future growth. Management also highlighted plans for inorganic expansion and a new O&M vertical, while addressing historical performance concerns and market dynamics.

Highlights

  • Q2 FY26 Revenue increased 11.46% year-on-year to INR 17.74 crores.

  • Q2 FY26 EBITDA grew 15.58% year-on-year to INR 10.53 crores, with margins expanding to 59.32% from 57.21%.

  • H1 FY26 Net Profit improved 17.16% year-on-year to INR 7.15 crores.

  • Company is debt-free, with a net worth of INR 300 crores, providing strong financial flexibility for growth.

  • Actively pursuing capacity expansion with a 4 MW solar project and plans for an additional 50-150 MW.

Concerns

  • Historical performance has been perceived as inconsistent, attributed by management to external factors like grid constraints and policy changes.

  • The company absorbed an 18% GST impact on its expenditures, straining margins.

  • Volatility in wind conditions can impact power generation in certain years.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹17.74 Cr
    YoY +11.5%
  • EBITDA
    ₹10.53 Cr
    YoY +15.6%
  • EBITDA Margin
    59.3%
  • Net Profit
    ₹4.7 Cr
    YoY +3.6%

H1 FY26

  • Revenue
    ₹29.29 Cr
    YoY +25.8%
  • EBITDA
    ₹15.73 Cr
    YoY +30.9%
  • Net Profit
    ₹7.15 Cr
    YoY +17.2%

What they filed

Q1 FY27: revenue down 26.9%, net profit down 18.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue16 6 7 12 18 +11%6 +11%5 −21%8 −27%
EBITDA9 1 -0 5 10 +15%-0 −155%-2 −610%4 −14%
Net profit4 -0 -4 3 5 +3%0 +614%-8 −73%2 −18%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

4 MW

as of 2025-09-30 quantified

Execution

3 to 4 months for 4 MW solar project completion

Pipeline

deal pipeline tcv

Pipeline for additional renewable capacity, including solar and hybrid projects.

The company is actively pursuing capacity expansion, starting with a 4 MW solar project and targeting significant additions in the coming years.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed internal accruals and rights issue for solar project
    • 4 MW solar project development
    • Improving machine availability and efficiency of existing wind farms
    we are moving ahead to complete a 4 MW solar project through a rights issue... our entire internal accruals is available for improving the efficiencies
  • Debt Gross ₹0 Cr · Net ₹0 Cr · 0.0× EBITDA
    we are a debt-free company as on date. So there are options for either go for borrowing and grow... we don't have any debts. We are a debt-free company.
  • Liquidity Liquidity disclosed Company is debt-free and relies on internal accruals for funding, with a net worth of INR 300 crores providing capacity for future borrowing up to INR 800-900 crores.
    Definitely our net worth is already about INR 300 crore level. So we have not borrowed any money. So as per the RBI guidelines, we have a balance sheet net worth easily, which can support borrowing up to maybe INR 800 crores-INR 900 crores also.

Guidance & targets

Capacity

  • Solar Capacity Addition Capacity · by Q1 FY27 · High confidence 4 MW
    So probably 3 months to 4 months is what we are targeting... Next year, the benefit of this will come in the next year. So it will come from the next financial year, maybe Q1 itself will have some improvement.

    — Bala Venkat Kutti

  • Total Capacity Addition Capacity · next few years · Medium confidence 50 MW
    So maybe we are looking at about adding at least 50 megawatt in the next few years, depending on funding availability and whatever support from the government.

    — Bala Venkat Kutti

  • Total Capacity Addition Range Capacity · long-term · Low confidence 100-150 MW
    So adding 100-megawatt, 150 megawatt is very much in the possibility range.

    — Bala Venkat Kutti

  • Capacity Doubling Capacity · three-year short-term and medium-term · Medium confidence double current capacity
    But our three-year short-term and medium-term target is at least to double this capacity as quick as possible.

    — Bala Venkat Kutti

  • Solar Capacity Growth (own money) Capacity · FY26 · Medium confidence 15%
    See, internally in financial year 2025-26, definitely 4 MW solar we are planning. But the next year, we are talking, like this capacity addition in solar, maybe with our own money, we'll be able to do at least 15% growth.

    — Bala Venkat Kutti

O&M

  • Third-Party O&M Vertical O&M · going forward · Medium confidence start a separate vertical
    We are planning to start a separate vertical for it to take the O&M for others also. But as of now, no, but going forward, we'll be doing it.

    — Bala Venkat Kutti

Profitability

  • Power Production Growth Profitability · Medium confidence better than industry growth rate
    So we can expect a growth, which is definitely be better than like industry growth rate in terms of power production.

    — Bala Venkat Kutti

What to watch in Q3 FY26

4 MW Solar Project Completion

next quarter (Q1 FY27)
Current Under construction
Target Commercial operation

Why it matters

This project represents the company's first significant solar capacity addition and a key step in its diversification strategy.

So probably 3 months to 4 months is what we are targeting... Next year, the benefit of this will come in the next year. So it will come from the next financial year, maybe Q1 itself will have some improvement.

Risks & concerns

  • Volatility in Wind Conditions

    medium

    Some years experience low wind, impacting power generation, though solar is expected to complement this.

    Management acknowledged

  • GST Impact on Profitability

    medium

    The company absorbed an 18% GST impact on expenditures, as power is a final industry where GST cannot be passed through.

    Management acknowledged

  • Historical Grid Infrastructure Constraints

    low

    In the past, state grid capacities did not grow in line with generation, affecting continuous power offtake.

    Management acknowledged

  • Market Competition

    low

    Acknowledged competition in the power market, but confident in selling power due to increasing demand.

    Management acknowledged

Q&A highlights

5 direct
Capacity and Future Expansion Plans Direct
So we have around 54-megawatt wind farms, which are already operating. And we are planning to add this future some solar projects now because solar is also equally become more important now to balance the generation around the year... maybe we are looking at about adding at least 50 megawatt in the next few years.

Clarifies current operational capacity and outlines the company's strategic shift and quantitative targets for future renewable energy additions.

Asked by Maitri Shah

EBITDA Margin Sustainability and Solar Impact Direct
No, this increase what has happened now is, as we explained in the statement, last year we had some capacity and then some improvements in efficiency and good wind... The solar project costs are relatively less compared to the wind capacity cost. So in terms of ROI, actually they are more or less the same. But in fact, solar could be a little better if radiation things are slightly better and easy to handle, the solar one.

Addresses concerns about margin sustainability and explains how solar projects will complement wind, indicating similar or potentially better returns, supporting the company's expansion strategy.

Asked by Maitri Shah

Strategic Partnerships and Joint Ventures Direct
Yes, we are open for that because we have a lot of land banks in our kitty now. So we are a debt-free company as on date... So that, first goal is to utilize our existing substations, that grid, whatever we have... So we will look for, open for all strategic partnerships or anyway, as long as we keep a comfortable cash flow from the projects and for the shareholders' benefit.

Reveals the company's willingness to engage in JVs and partnerships, leveraging its land bank and debt-free status to accelerate growth and optimize asset utilization.

Asked by Ishita Singh

Historical Performance and Governance Reliability Partial
No, historically it is dependent on the wind... But if you see for the last 30 years, the first five years, Indowind performance was the top in the industry... But then when that whole thing changed, reverse bidding started and all the benefits were withdrawn, now we have to work on standalone, viability... But now two years back, the regulators have put their foot down and then said that every year there is going to be a 6% increase in the power tariff also, which is all giving for a kind of a positivity.

Provides context on past performance fluctuations, attributing them to external factors and regulatory changes, while highlighting recent positive regulatory shifts that support future growth.

Asked by Ishita Singh

Debt-Free Status and Future Funding for Growth Direct
Minimum debt? Yes, we don't have any debts. We are a debt-free company. That is the whole advantage now. So bankers are chasing us. Because the net worth is around 300 crores, they are can give 500 crores-700 crores. And the way I'm looking at, there are many still companies, inorganic growth opportunities are coming on the way.

Confirms the company's strong financial position (debt-free, significant net worth) and its cautious approach to leveraging, prioritizing profitability and EPS growth while still exploring inorganic opportunities.

Asked by Dhanraj Tolani

Top Execution Priorities for Next Two Quarters Direct
What are the top priorities for the management team? Yes, the priorities are now basically we have come to a level where we have already cleared the debts. Now we are looking at last one year have been looking at only improving the machine availability. And we have a few more machines where there are some pending attendance and earmarking some CAPEX things are pending. So we are going to look at that so that the internal improvement happens first, without investing a new capital cost for the creating assets. And now this priority has come for a solar project. We have taken the government approval. So government is going to start chasing us. When are we going to complete this 4 megawatt? So we have to complete that. And then yes, and a few acquisitions and few discussions for an expansion are on. So we are looking at them.

Clearly outlines the immediate strategic focus: operational efficiency, completing the 4 MW solar project, and exploring M&A/expansion, providing a roadmap for investors.

Asked by Prashant Shah

2 min read 6 chapters

Detailed narrative

Robust Financial Performance in H1 FY26

Indowind Energy delivered strong financial results for Q2 and H1 FY26. Q2 revenue grew 11.46% year-on-year to INR 17.74 crores, with EBITDA increasing 15.58% to INR 10.53 crores. EBITDA margins expanded to 59.32% from 57.21% in the prior year. For the first half of FY26, revenue rose 25.81% year-on-year to INR 29.29 crores, and net profit improved 17.16% to INR 7.15 crores, attributed to enhanced machine availability, cost control, and favorable wind conditions.

Strategic Expansion into Solar and Hybrid Capacity

The company is actively pursuing capacity expansion, initiating a 4 MW solar project in Karnataka, which is expected to be completed within 3-4 months and contribute to results from Q1 FY27. Management aims to add at least 50 MW of new capacity in the coming years, with a broader target of 100-150 MW in the possibility range. The long-term goal is to double the current capacity within a three-year short-to-medium term timeframe, leveraging its debt-free status and internal accruals.

Debt-Free Status and Prudent Funding Strategy

Indowind Energy maintains a debt-free balance sheet with a net worth of approximately INR 300 crores. This strong financial position provides significant flexibility, with the capacity to support borrowing up to INR 800-900 crores. However, the company emphasizes a cautious approach to leveraging, prioritizing profitability and EPS growth, and utilizing internal accruals and a rights issue for funding new projects like the 4 MW solar plant.

Focus on Operational Efficiency and New O&M Vertical

A key operational priority is to enhance the efficiency and availability of the existing 54 MW wind assets, with potential upgrades of 5-10% for some machines. The company also plans to establish a separate vertical to offer Operations & Maintenance (O&M) services to third parties, expanding its service offerings beyond its current in-house O&M for most of its assets.

Capitalizing on Growing Corporate Green Power Demand

Indowind is well-positioned to meet the increasing demand from corporates for stable and clean power, with existing customers requesting approximately 50% more power. Management notes a constructive industry environment, supported by regulatory changes including a projected 6% annual increase in power tariffs. The company is exploring both organic and inorganic growth opportunities, including potential acquisitions of stressed assets, to meet this rising demand.

Addressing Historical Performance and Building Investor Confidence

Management acknowledged past inconsistencies in performance, attributing them to external factors such as grid constraints, policy shifts (e.g., withdrawal of benefits, GST impact), and natural wind variations. They highlighted that the industry environment is now more supportive, with regulatory stability. The company aims to build investor confidence by focusing on consistent performance, improved profitability, and transparent growth strategies, asserting that the company's intrinsic value, including its substantial land bank, exceeds its current market capitalization.

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