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    Inox Green

    INOXGREEN
    Power·13 Feb 2026
    Management Summary

    Inox Green reported strong Q3 FY26 financial results with significant YoY growth in income, EBITDA, and PAT, driven by portfolio expansion and strategic acquisitions. The company is undergoing a demerger of its substation business, which is expected to boost profitability. While Inox Wind faced some execution delays, the group remains optimistic about the sector's growth and upgraded its financial guidance for FY26 and FY27, focusing on revenue and EBITDA margins over megawattage.

    Highlights

    5

    • Inox Green reported robust financial growth with total income of INR 112 crores (+51% YoY), EBITDA of INR 53 crores (+80% YoY), and PAT of INR 25 crores (+375% YoY).

    • Inox Green's managed portfolio expanded to 13.3 GW, with an additional 6.5 GW of operational O&M assets acquired, positioning it for significant future growth.

    • The demerger of Inox Green's substation business is expected to eliminate ~INR 1,000 crores gross block and ~INR 50-55 crores annual depreciation, enhancing profitability and ROE/ROCE.

    • Inox Wind upgraded its FY26 consolidated revenue guidance to over INR 5,000 crores (over 35% YoY growth) and FY26/FY27 EBITDA margin to 20-22%.

    • The overall sector outlook remains very positive, with increasing demand and infrastructure development, particularly in the C&I segment.

    Concerns

    2

    • Delays at customer sites impacting wind turbine offtake and project execution for Inox Wind, leading to a strategic shift from megawattage to financial guidance.

    • Working capital cycle target for FY26 end revised to 200 days from an earlier 120 days, though expected to improve to 150 days by FY27.

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income₹112 Cr+51%YoY
    2. 02EBITDA₹53 Cr+80%YoY
    3. 03PBT₹40 Cr+2.6%YoY
    4. 04PAT₹25 Cr+3.8%YoY
    5. 05Cash-back₹51 Cr+116.0%YoY

    Order Book

    high confidence

    Total Value

    13.3 GW

    as of 2025-12-31

    quantified

    Inflow this qtr

    6.5 GW

    Composition

    Mix2 products
    • Wind O&M75.0%
    • Solar O&M25.0%

    Share of order book by product

    "Inox Green's managed portfolio reached 13.3 GW, with an additional 6.5 GW of operational wind O&M assets acquired, which will be consolidated soon, forming the basis for future EBITDA growth."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    6.5 GW operational wind O&M assets

    acquisition · pending regulatory

    M&A

    Substation business of Inox Green

    Other · pending regulatory

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    EBITDA
    >INR 600 crores
    		High
    Profitability
    Annual Depreciation Elimination
    INR 50-55 crores
    		High
    Balance Sheet
    Gross Block Elimination
    INR 1,000 crores
    		High
    Working Capital
    Working Capital Cycle
    150 days
    		Medium
    Working Capital
    Working Capital Cycle
    200 days
    		Medium

    NCLT Approval for Substation Demerger

    Within 3-odd months (from Feb 13, 2026)
    CurrentIn final stages of hearing
    TargetFinal approval received and subsequent listing process initiated

    Why it matters

    NCLT approval is crucial for the demerger to proceed, which will significantly improve Inox Green's profitability and balance sheet metrics.

    Finally, I would like to inform our investors that the scheme of demerger of substation business from Inox Green and its subsequent merger into Inox Renewable Solutions is in the final stages of hearing at Hon'ble NCLT Ahmedabad. Once this scheme receives the final approval from the NCLT, gross block of around INR 1,000 crores will be eliminated from Inox Green's balance sheet and subsequently, the annual depreciation of around INR 50-INR 55 crores will be eliminated thereby increasing the profitability.

    How to verify

    capital_allocation.m_and_a[target='Substation business of Inox Green'].status

    Risks & concerns

    2
    RiskSeverity

    Customer site readiness and project execution delays

    Delays at customer sites are impacting wind turbine offtake and project execution, particularly for equipment supply contracts, leading to a strategic shift in guidance methodology. — Management acknowledged

    medium

    Increased working capital cycle

    The target working capital cycle for FY26 end has been revised to 200 days from an earlier 120 days due to rapid revenue ramp-up and on-ground challenges. — Management acknowledged

    medium

    Q&A highlights

    8

    “What we have been seeing is that a lot of customers that we have, especially on the equipment supply side with the contracts which we have taken over the last 1 to 1-1/2 years. Many of the sites are not ready to the extent that it was planned. So some of the customers may have taken some components, not all components which is why there is a lot of variability. So in terms of megawattage number giving you a particular megawattage may not give you the right picture.”

    Management explained the rationale for changing guidance due to execution challenges and varied contract scopes, indicating a focus on financial metrics over raw capacity numbers.

    asked by Nidhi Shah

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance for Inox Green

    Inox Green Energy Services Limited delivered a robust Q3 FY26, reporting a total income of INR 112 crores, marking a 51% year-on-year increase. The company's EBITDA grew by 80% to INR 53 crores, while Profit Before Tax (PBT) surged by 261% to INR 40 crores. Net Profit After Tax (PAT) saw an impressive 375% year-on-year growth, reaching INR 25 crores, with cash-back also increasing by 116% to INR 51 crores. Machine availability for the entire portfolio averaged 96.5%.

    02

    Strategic Portfolio Expansion and Demerger

    Inox Green's managed portfolio currently stands at 13.3 gigawatts, comprising 10 GW of wind and 3.3 GW of solar assets. The company has also made investments to acquire an additional 6.5 GW of operational wind O&M assets, with the acquisition process expected to complete soon. Furthermore, the demerger of Inox Green's substation business is in its final stages, awaiting NCLT approval. This demerger is projected to eliminate approximately INR 1,000 crores of gross block and INR 50-55 crores of annual depreciation from the balance sheet, significantly enhancing profitability and capital efficiency metrics like ROE and ROCE.

    03

    Inox Wind's Upgraded Guidance and Execution Challenges

    Inox Wind, a group company, upgraded its FY26 consolidated revenue guidance to over INR 5,000 crores, representing more than 35% year-on-year growth, and its EBITDA margin guidance to 20-22% (up from 18-19%). For FY27, consolidated revenue is expected to grow by around 75% over FY26, with EBITDA margins maintained at 20-22%. However, the company acknowledged industry-wide challenges, including delays at customer sites impacting wind turbine offtake, which led to a strategic shift from megawattage-based guidance to financial metrics for better control and predictability.

    04

    Working Capital Management and Sector Outlook

    The working capital cycle target for FY26 end has been revised to 200 days from an earlier 120 days, attributed to the rapid revenue ramp-up and on-ground execution challenges. Management expects this to normalize to 150 days by FY27. Despite execution complexities, the overall sector outlook remains highly positive, driven by India's renewable growth story, increasing grid connectivity, and strong demand from various states and the Commercial & Industrial (C&I) segment, which now accounts for over 50% of executed projects.

    05

    Future Growth Drivers and Synergies

    The group anticipates significant synergies from the integration of acquired O&M assets and the demerger, which will unlock value and improve operational efficiency. The launch of a new 4X, 4.45 MW turbine by Inox Wind is progressing, expected to be commercially launched within the calendar year. Additionally, the rapid growth of Inox Clean Energy, a group company, in IPP and solar manufacturing businesses is expected to provide large recurring annual order visibility for Inox Wind and portfolio additions for Inox Green.

    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.