Concall AI

Inox Green — Q1 FY26 earnings call

Call held 1 Sep 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

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

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.

Key financials

2 periods

Headline

Revenue
₹863 Cr
YoY +32%
EBITDA
₹220 Cr
YoY +39%
PAT
₹97 Cr
YoY +134%
Cash PAT
₹186 Cr
YoY +168%
Inox Green Total Income
₹98 Cr
YoY +79%
Inox Green EBITDA
₹48 Cr
YoY +61%
Inox Green PBT
₹33 Cr
YoY +1,650%
Inox Green PAT
₹22 Cr
YoY +340%
Inox Green Cash PAT
₹44 Cr
YoY +140%
Inox Green EBITDA Margin
49%

Q1 FY26

Megawatts Executed
146 MW
YoY +4%

What they filed

Q1 FY27: revenue down 23.2%, net profit up 86.4% 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	55	61	65	56	86 +56%	78 +28%	69 +6%	43 −23%
Expenses	37	46	68	50	77	59	71	44
EBITDA	19	16	-3	6	9 −53%	19 +19%	-3 +0%	-1 −117%
Margin	34%	26%	-5%	11%	10%	24%	-4%	-2%
Other income	9	12	19	42	44	23	50	58
Interest	5	4	4	4	1	2	2	2
Depreciation	13	13	0	11	10	0	0	0
Profit before tax	10	10	11	33	41 +310%	39 +290%	45 +309%	54 +64%
Tax rate	37%	50%	43%	32%	31%	37%	38%	25%
Net profit	6	5	6	22	28 +367%	25 +400%	28 +367%	41 +86%
EPS	0.18	0.11	0.15	0.60	0.76	0.66	0.69	1.01

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

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

high confidence

Capex Capex disclosed
- Operationalized new 1200 MW capacity nacelle and Hub manufacturing unit
- Commenced transformer manufacturing facility
- Setting up another blade manufacturing facility in south part of India
We have recently operationalized our new 1200 megawatt capacity nacelle and Hub manufacturing unit near Ahmedabad, Gujarat. We have also deployed the first few set of cranes at our project sites and have commenced our transformer manufacturing facility as well, all under Inox Renewable Solutions. Further we are strategically expanding our blade manufacturing capacity and are in process of setting up another facility in south part of India.
Debt Debt disclosed
- Repayment INR560 crore pared down by NCPI and the balance amount which is fully invested by the promoters up front. Furthermore, the balance amount is used for the paring of the debt. ₹560 Cr
The entire NCRPS on the balance sheet now stands eliminated post the merger of IWEL and IWL and the promoters' participation in the right issue.
M&A Substation business from Inox Green Divestment · Pending regulatory

Demerger into Inox Renewable Solutions to streamline operations and improve ROE/ROCE for Inox Green.
Gross block of ~INR1,000 crores will be off balance sheet, eliminating ~INR50-55 crores annual depreciation, increasing PBT.

Further the scheme of demerger of substation business from Inox Green and subsequent merger into Inox Renewable Solutions has received no objections from the stock exchanges and we have filed the scheme in NCLT as well. We expect the approval to happen within next two to three quarters. Once the scheme is approved by the NCLT, the gross block of around INR1,000 crores will be off our balance sheet and subsequently the depreciation of approximately INR50 crores to INR55 crores annually will be eliminated, thereby increasing the PBT by that amount. It will also lead to significant improvement in the ROE and ROCE of Inox Green.
M&A First Energy (of Thermax Group) Acquisition · Closed

To expand portfolio and bring in new customers.

You must have seen our first quarter announcement. We brought First Energy, of Thermax Group in our fold.
M&A Unnamed entity with 2 GW O&M assets Acquisition · Closed

To expand portfolio inorganically.
Investments made in an entity around 2 gigawatt of O&M assets, expected to reflect in P&L within 6-9 months.

On acquisitions, we are continuously working with multiple parties on large scale opportunities. We have made investments in an entity around 2 gigawatt of O&M assets and shall keep on looking for such opportunities to expand our portfolio inorganically as well. ...We invested in a special situation fund which controls 2 gigawatt of the capacity that in terms of reflecting the same in our P&L that depending upon the judiciary procedure which we believe will take around another six to nine months.
Liquidity Liquidity disclosed Company's balance sheet and net cash position further fortified with the fundraise. Net cash position will strengthen with the added money.

The company's balance sheet and net cash position has been further fortified with the fundraise. ...Obviously, that will increase our net cash balance as from the last multiple quarters we are in net cash position which will strengthen our net cash position by adding this money.

Guidance & targets

Volume

Execution Guidance Volume · FY26 · High confidence 1.2 gigawatt

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.

— Sanjeev Agarwal
Wind Capacity Execution Volume · next year · Medium confidence 2 gigawatt

From 1.2 gigawatt today

From INOX Wind point of view, we have clearly said, we are executing 1.2 gigawatt this year, and possibly taking it to 2 gigawatt next year.

— Kailash Tarachandani
Wind Capacity Addition (Industry) Volume · this year · High confidence 5 to 6 gigawatt

What we see, it should be, if I see only wind, 5 to 6 gigawatt we see within this year, going upward towards 7 to 8 gigawatt, and eventually possibly 8 to 9 or may touch 10 gigawatt also.

— Kailash Tarachandani
Execution Guidance Volume · next year · High confidence 2,000 MW

firstly we are firm on our annual guidance of 1,200 for this year and 2,000 for next year.

— Devansh Jain

Margin

EBITDA Margin Guidance Margin · FY26 · High confidence 18% to 19%

Previously 17% to 18% → 18% to 19%

With that we are raising our margin guidance to 18% to 19% for the full year FY '26 from 17% to 18% earlier.

— Sanjeev Agarwal

Capacity

Inox Green O&M Portfolio Capacity · next two years · High confidence 17 gigawatts

From 5 gigawatt today

Inox Green is where I am extremely bullish on in terms of exponential growth which should start kicking in from this financial year as we ramp up our portfolio multiple times from 5 gigawatt currently to about 17 gigawatts over the next two years.

— Devansh Jain

What to watch in Q2 FY26

FY26 Execution Guidance

next quarter

Current 146 MW executed in Q1 FY26

Target Progress 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.

Risks & concerns

New IPPs unable to execute projects
medium

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

Management acknowledged
Equity dilution impacting minority shareholder returns
low

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

Q&A highlights

6 direct

Demerger of Inox Green and Inox Renewable Solutions to IWL shareholders Direct

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

Q1 FY26 execution of 146 MW and its relation to previous guidance Partial

Because last quarter if you had noticed Q4 of the previous financial year, we had a mismatch in terms of blades and towers. And we have tried to correct all of that over this quarter rather than just supplying turbines for the sake of announcing megawattage. What we are increasingly focusing on is complete sets, more execution on the ground and working capital efficiency.

Analyst questioned the low YoY execution growth, and management explained the focus on completing incomplete sets from Q4 FY25 and the seasonal weakness of Q1.

Asked by Nidhi Shah

Significantly higher margins in Q1 FY26 Direct

I think we have clearly guided, Sanjeev has reiterated that, Kailash has reiterated that and I did reiterate it as well, that we are upping guidances for this financial year to 18%-19%. If we do better, it is good. We have already upgraded guidances almost three to four times.

Analyst sought clarification on the reasons for the strong margin performance, and management reiterated their raised margin guidance for FY26.

Asked by Nidhi Shah

Per megawatt realization and margin for solar O&M Direct

for the solar part, broadly INR2 lakh per megawatt is the revenue, which we have across all the 1.6 gigawatt of portfolio with us. And broadly the margins are at around 20% for this portfolio.

Analyst asked for specific financial metrics for the new solar O&M segment, which management provided.

Asked by Vikas Agarwal

Negative reports about the wind sector Direct

I am not sure where you are reading negative reports, but fundamentally I think wind is booming. The government is pushing wind more and more. I think the targets are to be north of 15 gigawatts a year.

Analyst expressed concern over perceived negative sentiment in the wind sector, which management strongly refuted, highlighting positive industry trends and government support.

Asked by Vikas Agarwal

Impact of CERC notification on hybridization of existing solar and wind projects Direct

This opens up a very large opportunity for IRSL as our project site infrastructure post hybridization with solar now increases multiple times. ...I think it gives us access to almost 10 gigawatts of plug and play infrastructure across wind and solar, which is huge.

Analyst asked for details on a recent regulatory change, and management explained its significant positive impact on project development and infrastructure utilization.

Asked by Ketan Gandhi

Shift in turnkey vs. equipment supply mix and its impact on competition Partial

Turnkey will continue to do what we are doing today at the rate of whatever 500, 600, 700 megawatt whatever is the right opportunity but beyond that since equipment supply opportunities are coming in a large way, we continue to capture more and more market share from that.

Analyst questioned if moving away from turnkey would increase competition, and management clarified their strategy to maintain turnkey while expanding equipment supply for growth.

Asked by Prateek Giri

Minority shareholder returns and equity dilution Direct

I think we've been among the best performing stocks in India over the past 5 years. We have done everything in the long-term interest of the company and we will continue to do whatever we think is right in the long-term interest of this company.

Analyst raised a concern about equity dilution impacting minority shareholders, prompting management to defend their track record and commitment to long-term value creation.

Asked by Prateek Giri

2 min read 6 chapters

Detailed narrative

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%.

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%.

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.

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.

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.

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.

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