Inox Green — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Inox Green Energy Services Limited reported a strong Q2 FY26, achieving its best-ever financial performance with significant growth in total income, EBITDA, and PAT. The company expanded its O&M portfolio to 12.5 GW and is on track for further growth. Parent company Inox Wind also had a strong quarter, executing 202 MW and maintaining a healthy order book, expressing confidence in meeting its annual execution targets. The demerger of the substation business is progressing, expected to enhance Inox Green's profitability.

Highlights

  • Inox Green reported its best-ever financial performance with total income up 101% YoY to ₹129.5 crores and PAT up 363% YoY to ₹28.1 crores.

  • Inox Green's O&M portfolio expanded significantly to 12.5 GW, including 6.5 GW from recent acquisitions, with a target of 17 GW within two years.

  • Inox Wind delivered its best-ever Q2, executing 202 MW, contributing to 350 MW in H1, and maintaining a robust order book of over 3.2 GW.

  • The substation business demerger for Inox Green received shareholder and creditor approvals, expected to eliminate ₹50-55 crores in annual depreciation and improve profitability.

  • Management expressed confidence in achieving Inox Wind's 1.2 GW annual execution target for FY26, with H2 typically accounting for 70% of annual execution.

Key financials

  1. Inox Green Total Income ₹129.5 Cr +101%YoY
  2. Inox Green EBITDA ₹52.2 Cr +52%YoY
  3. Inox Green PAT ₹28.1 Cr +363%YoY
  4. Inox Green Cash PAT ₹50.9 Cr +121%YoY
  5. Inox Green Mission Availability 96.3%
  6. Inox Wind Consolidated Revenue ₹1,162 Cr +56%YoY
  7. Inox Wind Consolidated EBITDA ₹271 Cr +48%YoY
  8. Inox Wind Consolidated PAT ₹121 Cr +43%YoY
  9. Inox Wind Consolidated Cash Profit ₹220 Cr +66%YoY

What they filed

Q1 FY27: revenue down 23.2%, net profit up 86.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue55 61 65 56 86 +56%78 +28%69 +6%43 −23%
EBITDA19 16 -3 6 9 −53%19 +19%-3 +0%-1 −117%
Net profit6 5 6 22 28 +367%25 +400%28 +367%41 +86%
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

3.2 gigawatt

as of 2025-09-30 quantified

Execution

execution visibility for the subsequent 18 months to 24 months

Pipeline

deal pipeline tcv

excess of 3 gigawatt of tenders

Inox Wind has a large and diversified order book of over 3.2 GW, with a pipeline of over 3 GW in tenders, providing strong execution visibility for 18-24 months. Inox Green's O&M portfolio is 12.5 GW.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹200 Cr
    For FY'26 our CAPEX guidance is around Rs. 200 odd crores.
  • M&A Operational Wind Assets Acquisition · Closed

    To expand O&M portfolio and become largest renewable O&M player in India.

    Acquired 6.5 gigawatts of operational wind assets, contributing to 12.5 GW total O&M portfolio.

    Inox Green's portfolio stands at 12.5 gigawatts, including the investment which we have made to acquire 6.5 gigawatts of operational wind of asset of two companies.

Guidance & targets

Capacity

  • Inox Wind Annual Execution Capacity · FY26 · High confidence 1.2 gigawatt
    We are pleased to inform you that we have been able to deliver the best ever Q2 in Inox Wind history, despite the quarters being substantially impacted due to monsoons. With over 200 megawatt executed in Q2 and around 350 megawatt in H1, we are on the track to achieve our guidance for the full year, with H2 generally being 70% of the annual execution.

    — Sanjeev Agarwal

  • Inox Green O&M Portfolio Capacity · next two years · High confidence 17 gigawatts
    And we've also said in our last call that we have a target to achieve 17 gigawatts of O&M portfolio within the next two years.

    — Management

Profitability

  • Inox Wind EBITDA Margin Profitability · FY26 · High confidence 18%-19%
    We updated our margins last quarter to 18%-19% and we stick to it.

    — Devansh Jain

Working Capital

  • Inox Wind Networking Capital Cycle Working Capital · this financial year · High confidence 120 days
    I mean, different projects have different payment cycles, but effectively we've guided for 120 net working capital cycle and I think we're well on track to broadly achieve that over the course of this financial year.

    — Devansh Jain

Order Book

  • Inox Wind Annual Recurring Orders Order Book · going ahead · High confidence upward of 1 gigawatt
    Cumulatively, these arrangements, agreements, will secure upward of 1 gigawatt of annual recurring orders for Inox Wind going ahead.

    — Management

Capex

  • Inox Wind CAPEX Capex · FY26 · High confidence Rs. 200 odd crores
    For FY'26 our CAPEX guidance is around Rs. 200 odd crores.

    — Management

What to watch in Q3 FY26

Inox Wind H2 FY26 Execution

next quarter / H2 FY26
Current 350 MW in H1 FY26
Target 850 MW in H2 FY26 (to reach 1.2 GW annual target)

Why it matters

Meeting the 1.2 GW annual execution target is crucial for Inox Wind's revenue and profitability, with 70% of execution planned for H2.

With over 200 megawatt executed in Q2 and around 350 megawatt in H1, we are on the track to achieve our guidance for the full year, with H2 generally being 70% of the annual execution.

Risks & concerns

  • Potential PPA cancellations and rebidding in the power sector

    medium

    Analyst raised concerns about 40 GW of projects without PPAs facing cancellation. Management stated Inox Wind's orders are not impacted and views the shift to hybrid RTC FDRE as positive for the sector.

    I just wanted to understand recently, I read a media article saying that almost 40 gigawatt of projects without PPAs are expected to cancel and go for rebidding. How do you expect this to impact the sector?

    Analyst downplayed

  • Inflationary pressure on aluminum and copper

    low

    Analyst asked about the impact of rising metal prices. Management stated some orders have pass-through clauses and existing projects are covered, so no expected impact on EBITDA.

    We have seen some inflationary move in aluminium copper these days. As though I understand we are very strict to our EBITDA margin guidance. But I was just wondering if it will impact us in the next 6-7 months. Is there a pass through in our tender orders, Sanjeev?

    Analyst acknowledged

  • Historical shortfall in execution vs. guidance

    low

    Analyst noted past execution shortfalls. Management acknowledged but expressed high confidence in meeting current FY26 1.2 GW target due to operational readiness and H2 weighting.

    But it is just that FY'24 and '25, we had shortfalls in our execution, which were not compensated in the subsequent years. So that is why I thought it is pertinent to raise this issue, but I totally agree with you that probably we will overachieve this year.

    Analyst acknowledged

Q&A highlights

6 direct
Breakdown of Inox Wind's 18-19% EBITDA margin guidance Partial
So, broadly we don't give specific breakups of the benefits coming in from all the activities that we are doing. But we've said it multiple times that the royalty which has gone off now for the 3 megawatt turbines is broadly around Rs. 6 lakh per megawatt.

Analyst sought clarity on margin drivers, specifically the contribution from backward integration and royalty savings, which are key to the company's profitability.

Asked by Akhilesh Rawat

Quantification of incomplete projects/receivables and cash conversion timeline Partial
I mean, different projects have different payment cycles, but effectively we've guided for 120 net working capital cycle and I think we're well on track to broadly achieve that over the course of this financial year. So, I'm not sure what specific data you want?

Analyst probed for details on working capital efficiency and the impact of revenue recognition versus cash collection for turnkey projects, a common concern in project-based businesses.

Asked by Akhilesh Rawat

Confidence in achieving 1.2 GW execution target given H1 performance Direct
No, I think you've publicly guided multiple times that H1 and H2 will broadly be 30%-35%. And yes, we've achieved about 30% in H1. As Sanjeev mentioned, obviously, this is the most effective quarter in terms of monsoons. And I think you're broadly very well on track to achieve that.

Analyst questioned the feasibility of the annual target given the H1 execution, and management reaffirmed confidence based on historical H2 performance and operational readiness.

Asked by Mahesh Patil

Impact of 40 GW PPA cancellations/rebidding on the wind sector Direct
First and foremost, with respect to Inox wind, we don't have any orders in our system which are impacted by these so-called potential PPA cancellations. Second, with respect to, there's been a lot of murmur talk about this for the past 15 months. And many of these tenders are standalone tenders of wind, solar, and what's happening, the name of the game has now changed to FDRE RTC hybrid.

Analyst raised a significant sector-wide concern, and management clarified that Inox Wind is not directly impacted and views the shift to hybrid RTC FDRE tenders as a positive for the wind sector.

Asked by Ketan Jain

Inox Wind's execution numbers compared to industry installation Direct
Prateek, we said this before and again let me repeat it for all who are listening to us. We are confident to achieve our numbers of 1.2 gigawatt for the full year. There is a plan. The plan is in motion. It has worked. The 30% we just mentioned was our plan in the H1. 70% is the balance to be done with our new factories fully operational and a mix of turnkey, EPC and equipment supply, we are absolutely confident to beat this number of 1.2 gigawatt, Prateek.

Analyst challenged Inox Wind's execution pace relative to broader industry installations, prompting management to reiterate its confidence in meeting its specific annual target.

Asked by Prateek Giri

Inox Wind's order inflow compared to sector leaders Direct
I think I would like to reiterate. We choose our orders very carefully. I said we have a robust risk management philosophy where we analyze all the tenders and then make a decision which one we will go for. Having said that, you have seen that we already have a backlog of almost two years, in excess of two years. Whatever we can produce on the shop, whatever we can justify to our customers, we have it.

Analyst questioned why Inox Wind, as a significant player, wasn't showing order inflows comparable to sector leaders, leading management to emphasize its selective bidding strategy and existing strong backlog.

Asked by Prateek Giri

Impact of inflationary pressure on aluminum and copper on margins Direct
Yes, couple of orders we have a pass through. Couple of orders which we are on the last stage of execution, we have already taken care of those. So I don't believe that if this inflationary measure on the metals will go to EBITDA.

Analyst inquired about potential margin pressure from rising commodity prices, and management indicated that pass-through clauses and existing arrangements would mitigate the impact on EBITDA.

Asked by Prateek Giri

Inox Green's O&M portfolio growth strategy beyond acquisitions Direct
There are limited opportunities now, but there are a lot of opportunities coming in from some of the aggregators who now think there is no value creation for them being standalone. There are certain IPPs who are considering declassifying these O&M assets and outsourcing it to large players like us. And I think that could lead to large numbers being added as we move forward.

Analyst sought insight into Inox Green's organic growth strategy for its O&M portfolio, beyond large acquisitions, revealing potential avenues from aggregators and IPPs.

Asked by Prit Nagersheth

3 min read 6 chapters

Detailed narrative

Q2 FY26 Performance Highlights

Inox Green Energy Services Limited reported its best-ever financial performance in Q2 FY26, with total income reaching ₹129.5 crores, a 101% YoY increase. EBITDA grew by 52% YoY to ₹52.2 crores, and PAT surged by 363% YoY to ₹28.1 crores. Cash PAT also saw a significant rise of 121% YoY to ₹50.9 crores. The company maintained a mission availability of 96.3% across its portfolio. Inox Wind, the parent company, also delivered a strong Q2, executing 202 MW and achieving 350 MW in H1, with consolidated revenue of ₹1,162 crores (up 56% YoY) and EBITDA of ₹271 crores (up 48% YoY).

Strategic Growth and O&M Portfolio Expansion

Inox Green's O&M portfolio has expanded to 12.5 gigawatts, including 6.5 gigawatts acquired through recent investments. The company aims to become India's largest renewable O&M player, targeting 17 gigawatts within the next two years. This growth is supported by organic expansion from Inox Wind's execution, as well as potential opportunities from aggregators and IPPs looking to outsource O&M. The group's IPP venture and solar module vertical are also expected to contribute to Inox Green's portfolio.

Order Book and Pipeline Visibility

Inox Wind currently holds a robust order book of over 3.2 gigawatts, providing execution visibility for the next 18 to 24 months. The company is actively working on a pipeline of tenders exceeding 3 gigawatts, comprising a mix of complete EPC, semi-turnkey, and equipment supply projects. Management is also focused on signing long-term framework agreements with multiple parties, which are expected to secure over 1 gigawatt of annual recurring orders, further strengthening future order book visibility.

Substation Demerger and Value Creation

The scheme for the demerger of the substation business from Inox Green and its subsequent merger into Inox Renewable has received approvals from shareholders and creditors. Upon final NCLT approval, this demerger will eliminate approximately ₹1,000 crores of gross block and ₹50-55 crores in annual depreciation from Inox Green's balance sheet. This is expected to significantly enhance Inox Green's profitability, ROE, and ROCE, while also creating value for Inox Wind by establishing Inox Renewable as an EPC arm.

Manufacturing Expansion and Operational Efficiency

Inox Wind's manufacturing facilities, including the recently commissioned nacelle and hub unit at Kalyangarh, Gujarat, are operating at high utilization levels. The company is expanding its manufacturing presence in South India by setting up a new blade and tower manufacturing facility to improve access to large sites in Karnataka, Andhra Pradesh, and Tamil Nadu. This expansion, coupled with deployed cranes and ramped-up transformer manufacturing, supports the confidence in achieving the 1.2 GW annual execution target for FY26.

Regulatory and Sectoral Tailwinds

The Indian wind sector is benefiting from several favorable policy developments, including a reduction in GST for wind components from 12% to 5%. Other positive changes include ALMM for wind, CERC connectivity and GNA regulations for ISTS, and allowing hybridization of existing solar and wind projects. Management views the shift towards hybrid RTC FDRE tenders, even with potential PPA cancellations, as a positive development that will lead to more genuine and executable bids, increasing opportunities for the wind sector.

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