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    Inox Green

    INOXGREEN
    Power·1 Sept 2025
    Management Summary

    Inox Green reported a strong Q1 FY26 with consolidated revenue up 32% YoY to ₹863 crores, EBITDA up 39% YoY to ₹220 crores, and PAT soaring 134% YoY to ₹97 crores. The company executed 146 MW and reiterated its FY26 execution guidance of 1.2 GW, while raising margin guidance to 18-19%. Inox Green's O&M portfolio expanded to 5.1 GW, and the company is targeting a 17 GW portfolio across wind and solar in the next two years.

    Highlights

    6

    • Consolidated revenue increased by 32% YoY to ₹863 crores in Q1 FY26.

    • EBITDA grew by 39% YoY to ₹220 crores, achieving a strong margin of 49% for Inox Green.

    • PAT surged by 134% YoY to ₹97 crores, and Cash PAT by 168% YoY to ₹186 crores.

    • Inox Green expanded its O&M portfolio to 5.1 GW, including 1.6 GW of new solar O&M contracts.

    • The company maintains a diversified order book of 3.1 GW, providing visibility for the next two years.

    • Guidance for FY26 execution was reiterated at 1.2 GW, and margin guidance was raised to 18-19%.

    Concerns

    2

    • Q1 FY26 execution of 146 MW showed only a 4% increase YoY, which was questioned by analysts.

    • Analyst raised concerns about potential equity dilution impacting minority shareholder returns, which management addressed by emphasizing long-term value creation.

    What Changed1

    vs Q2 FY26

    Risks discussed3 → 2 (-1)
    Key financials

    Metrics

    11

    Periods

    2

    Headline

    10
    • Revenue
      ₹863 Cr
      YoY+32%
    • EBITDA
      ₹220 Cr
      YoY+39%
    • PAT
      ₹97 Cr
      YoY+134%
    • Cash PAT
      ₹186 Cr
      YoY+1.7%
    • Inox Green Total Income
      ₹98 Cr
      YoY+79%

    Q1 FY26

    1
    • Megawatts Executed
      146 MW
      YoY+4%

    Order Book

    high confidence

    Total Value

    3.1 gigawatt

    as of 2025-06-30

    quantified

    Execution

    covers broadly our two-year order

    Pipeline

    deal pipeline tcv

    Multi-gigawatt order pipeline expected to convert into firm orders

    "Management expressed confidence in the order book, stating it is firm with advances paid and signed agreements, covering the next two years."

    Source:
    Prepared remarks

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    M&A

    Substation business from Inox Green

    divestment · pending regulatory

    M&A

    First Energy (of Thermax Group)

    acquisition · closed

    M&A

    Unnamed entity with 2 GW O&M assets

    acquisition · closed

    Guidance & targets

    6
    CategoryTargetPriority
    Volume
    Execution Guidance
    1.2 gigawatt
    		High
    Volume
    Wind Capacity Execution
    2 gigawatt
    		Medium
    Volume
    Wind Capacity Addition (Industry)
    5 to 6 gigawatt
    		High
    Volume
    Execution Guidance
    2,000 MW
    		High
    Margin
    EBITDA Margin Guidance
    18% to 19%
    		High
    Capacity
    Inox Green O&M Portfolio
    17 gigawatts
    		High

    FY26 Execution Guidance

    next quarter
    Current146 MW executed in Q1 FY26
    TargetProgress towards 1.2 GW for FY26

    Why it matters

    To verify if the company can ramp up execution in H2 to meet its annual target, given Q1's relatively slow start.

    Having commenced FY '26 on a strong note, we are very confident of achieving our execution guidance for FY '26 of 1.2 gigawatt, which is 1200 megawatt.

    How to verify

    key_financials.metrics[label='Megawatts Executed (Q1 FY26)']

    Risks & concerns

    2
    RiskSeverity

    New IPPs unable to execute projects

    Management noted that many new IPPs struggle with execution, which can make wind projects difficult. They focus on selecting financially capable partners. — Management acknowledged

    medium

    Equity dilution impacting minority shareholder returns

    An analyst raised this concern, but management asserted their focus on long-term value creation and highlighted their strong stock performance over the past five years. — Analyst downplayed

    low

    Q&A highlights

    8

    “No, I don't think we can answer that question at this point in time but clearly both of them are integral parts of Inox Wind. And for valid reasons, I see no reason why we would be de-merging them out of Inox Wind. They both will constitute an integral part and will continue to be owned and held by Inox Wind.”

    Analyst inquired about future strategic actions regarding subsidiaries, which management clarified would remain integral to Inox Wind.

    asked by Hansal Thakkar

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY26 Financial Performance

    Inox Wind reported a strong Q1 FY26 with consolidated revenue of ₹863 crores, marking a 32% increase year-on-year. EBITDA grew by 39% YoY to ₹220 crores, and PAT saw a significant jump of 134% YoY to ₹97 crores. Cash PAT also increased by 168% YoY to ₹186 crores. For Inox Green specifically, total income was ₹98 crores (up 79% YoY) with an EBITDA of ₹48 crores (up 61% YoY) and a robust EBITDA margin of 49%.

    02

    Strategic Initiatives & Capacity Expansion

    The company operationalized its new 1200 MW capacity nacelle and Hub manufacturing unit near Ahmedabad, Gujarat, and commenced its transformer manufacturing facility. Additionally, Inox Wind is expanding its blade manufacturing capacity by setting up a new facility in South India. These initiatives are expected to aid faster execution and deliver higher margins, leading to a raised margin guidance of 18-19% for FY26 from the earlier 17-18%.

    03

    Inox Green's Growth & O&M Portfolio

    Inox Green's total renewable O&M portfolio now stands at 5.1 gigawatts, following the addition of approximately 1.6 gigawatts of solar O&M contracts in April-May 2025. The company also signed an agreement for comprehensive O&M of 182 MW of wind projects for a large conglomerate. Management expressed strong bullishness on Inox Green, projecting its portfolio to scale from 5 gigawatts to about 17 gigawatts over the next two years, with wind forming the majority.

    04

    Industry Outlook & Regulatory Tailwinds

    Management highlighted a strong macro outlook for the wind industry, with government support and the necessity of renewables. The recently notified ALMM for Wind is seen as a significant boost for domestic manufacturers. Furthermore, a CERC amendment allowing hybridization of existing solar and wind transmission projects (capacity >50 MW) creates a large opportunity for Inox Renewable Solutions, leveraging existing infrastructure for multiple times the capacity.

    05

    Capital Structure & Shareholder Value

    The company's balance sheet and net cash position were fortified by a successful rights issue, which was oversubscribed 2.13 times. Promoters fully subscribed their entitlement of around ₹560 crores, demonstrating commitment. The proceeds from the rights issue were used to pare down debt, including ₹560 crores by NCPI, eliminating the entire NCRPS on the balance sheet post-merger of IWEL and IWL.

    06

    Order Book & Execution Strategy

    Inox Wind holds a diversified order book of 3.1 gigawatts, comprising marquee clients and a mix of turnkey and equipment supply contracts, providing visibility for the next two years. Despite Q1 FY26 execution of 146 MW, management reiterated the FY26 execution guidance of 1.2 gigawatts, emphasizing a focus on completing full sets and improving working capital efficiency rather than just megawattage. They expect to convert a substantial multi-gigawatt order pipeline into firm orders in the coming months.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.