Indowind Energy Limited

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.

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.

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.

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.

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.