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Indowind Energy Limited — Q3 FY26 earnings call

Call held 3 Feb 2026

Management summary

Indowind Energy reported a strong nine-month performance for FY26 with significant revenue and EBITDA growth, driven by improved operating performance and disciplined cost management. The company returned to profitability in Q3 FY26 despite seasonal headwinds, supported by strategic investments and a successful rights issue. Management outlined plans for solar expansion, asset optimization, and inorganic growth to further enhance shareholder value and stabilize quarterly earnings.

Highlights

Consolidated revenue for Q3 FY26 increased 5.09% YoY to INR 6.19 crores.
Company reported a PAT of INR 0.35 crores in Q3 FY26, returning to profit from a loss in Q3 FY25.
For the nine months ended FY26, consolidated revenue grew 21.62% YoY to INR 35.49 crores.
EBITDA for 9M FY26 increased 29.39% YoY to INR 16.98 crores, with EBITDA margins improving to 47.86%.
Successfully completed a rights issue, raising INR 49.42 crores, which strengthened the balance sheet and enhanced financial flexibility.

Concerns

Q3 FY26 performance was softer compared to the nine-month numbers due to seasonality (lean wind season), leading to some pressure on EBITDA margins.

Key financials

2 periods

Q3 FY26

Consolidated Revenue
₹6.19 Cr
YoY +5.1%
PAT
₹0.35 Cr

9M FY26

Consolidated Revenue
₹35.49 Cr
YoY +21.6%
EBITDA
₹16.98 Cr
YoY +29.4%
EBITDA Margin
47.9%
Net Profit
₹7.5 Cr
YoY +24.4%
Net Profit Margin
21.2%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	16	6	7	12	18 +11%	6 +11%	5 −21%	8 −27%
Expenses	7	5	7	6	7	7	7	4
EBITDA	9	1	-0	5	10 +15%	-0 −155%	-2 −610%	4 −14%
Margin	57%	14%	-4%	45%	59%	-7%	-39%	53%
Other income	0	0	0	0	0	2	-2	0
Interest	1	0	1	0	2	0	0	0
Depreciation	5	1	1	2	4	1	1	2
Profit before tax	4	-0	-2	3	5 +12%	0 +483%	-6 −210%	2 −29%
Tax rate	-9%	0%	127%	-2%	-1%	-57%	27%	-17%
Net profit	4	-0	-4	3	5 +3%	0 +614%	-8 −73%	2 −18%
EPS	0.27	0.00	-0.27	0.14	0.29	0.03	-0.46	0.12

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.

Capital allocation

high confidence

Capex Capex disclosed internal accruals and rights issue proceeds
- 4-megawatt solar project in Karnataka
- Repowering capex for wind assets ₹5 Cr
Building on this development, the board approved key strategic and financial measures to strengthen the company's capital framework and support long-term growth subject to necessary shareholder and regulatory approvals. These include an increase in authorized share capital from current INR 175 crores to INR 275 crores, a change in the pattern of utilizing the rights issue proceeds through subsidiaries for increasing the returns. ... So, on an average, maybe we will be providing around 5 crores capex once in two years.
Debt Debt disclosed
- New borrowing Approval for increase in borrowing to provide additional financial headroom for growth. ₹1,500 Cr
Approval for an overseas fundraiser of up to 70 million for bond issue, including exchanging some of the current pending resolution bonds and an increase in borrowing to INR 1,500 crores to provide additional financial headroom for growth. ... So, the interest cost has come down.
M&A Nova Power Private Limited Acquisition · Announced · Consideration ₹[object Object] (cash)

To implement 4-megawatt solar project and involve customer for long-term PPA tie-up.
Will help implement 4 MW solar project and secure higher realization.

The board has already proposed selective investments to strengthen the operating structure, including a proposal to invest up to 10 lakhs in Nova Power Private Limited to make it a subsidiary through which we plan to implement the 4-megawatt solar project by involving the customer for a long-term PPA tie-up.
M&A EverOn Power Acquisition · Announced · Consideration ₹[object Object] (cash)

To make it an associate company, capture turnover and profits for consolidation, and leverage 19 MW operating renewable energy assets and project EPC capabilities.
Will help capture their turnover as well as the profits for the consolidation -- in the consolidated results for the future growth.

to invest up to 20% equity in EverOn Power, which has about 19 megawatt operating renewable energy assets and project EPC capabilities amounting up to INR57 crores, to make it an associate company which will help us to capture their turnover as well as the profits for the consolidation -- in the consolidated results for the future growth.
M&A 5.1-megawatt operational buying project Acquisition · Pending regulatory

To add other kinds of revenue and improve profitability.
Expected to be more profitable, acquisition planned for next quarter (Q1 FY27) funded by internal accruals.

Okay, we have signed an agreement to buy 5.1 megawatt, as well as we are going for a 5.1-megawatt solar expansion. So, now we are, as we explained, probably we will complete the solar project first. The acquisition, we want to keep it maybe in the Q1, because we are acquiring a 20% stake in the company, in EverOn, which is more profitable for us going forward. So, we are keeping it for the next quarter, because we have to fund it through the internal accruals.
Liquidity Liquidity disclosed Rights issue proceeds of INR 49.42 crores and internal accruals are being used to fund investments and acquisitions.

raising INR49.42 crores, which has strengthened the balance sheet and enhanced financial flexibility. ... we have to fund it through the internal accruals.

Guidance & targets

Capital Structure

Authorized Share Capital Capital Structure · Future (subject to approvals) · High confidence INR 275 crores

Previously INR 175 crores → INR 275 crores

These include an increase in authorized share capital from current INR 175 crores to INR 275 crores

— Bala Venckat Kutti

Debt

Overseas Fundraiser (Bond Issue) Debt · Future (subject to approvals) · High confidence Up to 70 million

Approval for an overseas fundraiser of up to 70 million for bond issue

— Bala Venckat Kutti
Borrowing Limit Debt · Future (subject to approvals) · High confidence INR 1,500 crores

and an increase in borrowing to INR 1,500 crores to provide additional financial headroom for growth.

— Bala Venckat Kutti

Capacity Addition

Solar Project (Nova Power) Capacity Addition · Ongoing · High confidence 4 MW

a proposal to invest up to 10 lakhs in Nova Power Private Limited to make it a subsidiary through which we plan to implement the 4-megawatt solar project

— Bala Venckat Kutti
Solar Park Capacity Addition · Future (subject to certain things) · Low confidence 100 MW

And organic way, we are looking at a bigger project like a solar park to set up a 100-megawatt solar park, but that is subject to certain things what we have initiated now.

— Bala Venckat Kutti

Investment

EverOn Power Equity Stake Investment · Ongoing · High confidence Up to 20%

to invest up to 20% equity in EverOn Power, which has about 19 megawatt operating renewable energy assets and project EPC capabilities amounting up to INR57 crores

— Bala Venckat Kutti

Profitability

EPS Profitability · Next three quarters · Medium confidence Beyond 1

From 0.5-0.6 today

So, that our first goal is how soon we reach the EPS beyond one. So, we are at 0.5, 0.6 level EPS now.

— Bala Venckat Kutti

Capex

Repowering Capex Capex · Once in two years · High confidence INR 5 crores

So, on an average, maybe we can assume. So, on an average, maybe we will be providing around 5 crores capex once in two years.

— Bala Venckat Kutti

M&A

Inorganic Acquisitions M&A · Next year · Medium confidence Few

And over and above that, we are looking at few acquisitions, which are operating assets, because our goal is first to cross the profitability and the EPS growth. So, we are looking at inorganic acquisitions, a few of them in the next year.

— Bala Venckat Kutti

What to watch in Q4 FY26

4 MW Solar Project Completion

Next quarter (Q1 FY27)

Current Approved, under planning/implementation

Target Commercial operation

Why it matters

This is a key expansion project expected to add revenue and improve EPS.

One is we want to complete this solar project, what we have started now. That is our priority.

Risks & concerns

Seasonality of wind generation leading to quarterly profitability volatility
medium

Wind generation is seasonal, causing revenue fluctuations, but management explains accounting adjustments and solar projects as mitigation strategies.

Analyst acknowledged

Q&A highlights

8 direct

Seasonality and Profitability Consistency Direct

So now the profitability typically for a wind company should be seen on a yearly basis. When you see quarterly basis, it may look a little different on each quarter. But overall, for the year, it will give a full picture for the year. But still, we are now in Indowind. We are making properly because we are now in the industry for 30 plus years. We make some provisions like depreciation in accordance with the production. ... So that solar works in the daytime. It balances the profitability for all the quarters.

Management explains how they manage quarterly volatility in a seasonal business through accounting adjustments and diversification into solar.

Asked by Sakshi Jain

Q3 Margin Pressure Direct

In this Q3, there is now, since we are selling power to all the private customers, we have to pay the electricity board fixed charges based on the capacity every month. So, that is our major expenses today. When the wind is lean season, the top line is less. But still, we have to pay the per megawatt, the cost charged by the EVs. So, that is my only item.

Clarifies that Q3 margin pressure is due to fixed charges during lean wind season, not operational inefficiency, and the company is still operating at a profit level.

Asked by Vidhi Purohit

Annual PLF for PAT Positive Direct

Whatever we are now achieving is PAT positive. Now, we are only trying more this, you know, the acquisition, the investment, all the thing is to add other kinds of revenue.

Confirms the company is already PAT positive and current strategic initiatives are aimed at further enhancing profitability and EPS.

Asked by Vidhi Purohit

Status of 5.1 MW Operational Project Acquisition Direct

Okay, we have signed an agreement to buy 5.1 megawatt, as well as we are going for a 5.1-megawatt solar expansion. So, now we are, as we explained, probably we will complete the solar project first. The acquisition, we want to keep it maybe in the Q1, because we are acquiring a 20% stake in the company, in EverOn, which is more profitable for us going forward. So, we are keeping it for the next quarter, because we have to fund it through the internal accruals.

Provides an update on a key acquisition, linking it to the EverOn investment and clarifying the timeline (Q1 FY27) and funding source (internal accruals).

Asked by Ishita Nagesh

O&M Strategy and Cost Control Direct

From the beginning, we build our own O&M team. So, basically, we are able to control and at least about 15% savings, which otherwise if we outsource the O&M. ... So, that is the strength which helps us plus apart from the cost savings.

Highlights the company's in-house O&M capabilities as a source of significant cost savings (15%) and operational strength, enabling them to handle various machine types.

Asked by Ritesh Seth

Top Operational Priorities for FY26 Direct

number one is to maintain whatever our existing assets in the best way and efficiently, keep them operating and producing. And second is, of course, the customers, we have to keep them also happy and continuing. And third one is the expansion project, what we are doing in 4 megawatts, we want to complete, focus on that, so that there is going to add a sizable revenue and the yearning improvements for the shareholders.

Clearly outlines management's strategic focus areas for the upcoming fiscal year, emphasizing asset optimization, customer retention, and expansion projects.

Asked by Riya Shah

Rationale for New Subsidiary (Nova Power) Direct

Now, if we do Indowind name, we have to sell the power to the -- under a third-party mechanism or the government. But the realization is very you know, only whatever is fixed by the government around 340 levels. Whereas if you go through this SPV structure, it's a small capital company. We will ask a corporate or a hospital or a commercial client like what we are doing in Tamil Nadu now, in Karnataka, so that they will be able to realize a higher realization, at least 15%-20% more than what we get.

Explains the strategic advantage of using a subsidiary (SPV) for the 4 MW solar project to achieve 15-20% higher tariff realization from commercial clients compared to government rates.

Asked by Ganraj Turani

Remaining Useful Life of Wind Assets and Capex Direct

Basically, about 50%-60% of the machines are now 20 years plus completed. And the bigger machines are around 14-15 years. So, we have a comfortable residual life. These machines, theoretically, they were telling you to work for 25 years. But now, we could see they can work for 50 plus years also once you maintain them properly.

Provides insight into the longevity of the company's wind assets and their strategy for extending asset life through maintenance and repowering, ensuring long-term operational viability.

Asked by Mahesh

2 min read 5 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

Indowind Energy demonstrated robust financial performance for the nine months ended FY26, with consolidated revenue growing 21.61% YoY to INR 35.49 crores. EBITDA for the period increased 29.39% YoY to INR 16.98 crores, resulting in an improved EBITDA margin of 47.86% from 44.98% in 9M FY25. The company returned to profitability in Q3 FY26, reporting a PAT of INR 0.35 crores, and achieved a net profit of INR 7.5 crores for the nine months, reflecting a 24.32% YoY growth.

Strategic Capital Restructuring and Funding Initiatives

The company successfully completed a rights issue, raising INR 49.42 crores, which significantly strengthened its balance sheet and financial flexibility. To support future growth, the board approved an increase in authorized share capital from INR 175 crores to INR 275 crores. Additionally, approvals were secured for an overseas fundraiser of up to 70 million for a bond issue and an increase in borrowing limit to INR 1,500 crores, providing substantial financial headroom.

Expansion and Diversification into Solar Energy

Indowind Energy is actively expanding its solar portfolio, having received Karnataka government approval for a 4-megawatt solar project. This project will be implemented through a new subsidiary, Nova Power Private Limited, with an investment of up to INR 10 lakhs, aiming for 15-20% higher tariff realization from commercial clients. The company is also evaluating a larger organic growth opportunity to set up a 100-megawatt solar park and is pursuing inorganic acquisitions of operating assets in the next year.

Investments in Associates and Operational Efficiency

The company plans to invest up to 20% equity in EverOn Power, amounting to up to INR 57 crores, to leverage its 19 MW operating renewable energy assets and EPC capabilities. Indowind's in-house O&M team contributes to approximately 15% cost savings compared to outsourcing, enhancing operational control and efficiency. Management also highlighted a strategy of allocating around INR 5 crores every two years for repowering capex to extend the operational life of its wind assets, which can potentially exceed 50 years.

Mitigating Seasonality and Future Profitability Outlook

To address the seasonal nature of wind generation, Indowind has implemented accounting adjustments, front-loading depreciation in the first two quarters. The integration of solar projects is expected to balance profitability across quarters by providing daytime generation. Management expressed confidence in achieving an EPS beyond 1 from the current 0.5-0.6 level, driven by asset optimization, customer retention, and the planned expansion projects, further bolstered by strong investor confidence from the rights issue.

This is an AI-generated summary of a publicly available earnings call transcript.

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