Inox Green

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).

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.

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.

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.

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.

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.