Inox Green — Q3 FY26 earnings call

Call held 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

  • 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

  • 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

  1. Total Income ₹112 Cr +51%YoY
  2. EBITDA ₹53 Cr +80%YoY
  3. PBT ₹40 Cr +261%YoY
  4. PAT ₹25 Cr +375%YoY
  5. Cash-back ₹51 Cr +116%YoY
  6. Machine Availability 96.5%

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

13.3 GW

as of 2025-12-31 quantified

Inflow this quarter

6.5 GW

Composition

Mix 2 products
  • Wind O&M 75%
  • Solar O&M 25%

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

high confidence
  • M&A 6.5 GW operational wind O&M assets Acquisition · Pending regulatory

    To become India's largest renewable O&M company and achieve a multi-fold increase in consolidated EBITDA and PAT for FY '27.

    Consolidation of financials will result in a multi-fold increase in consolidated EBITDA and PAT for FY '27 over FY '26.

    This also includes the investments which we have made to acquire 6.5 gigawatt of operational wind O&M assets of two major companies. We expect to complete the acquisition process soon, consequent to which the consolidation of financials into Inox Green will result in a multi-fold increase in consolidated EBITDA and PAT for FY '27 over FY '26.
  • M&A Substation business of Inox Green Demerger · Pending regulatory

    To eliminate gross block and depreciation, thereby increasing profitability, ROE and ROCE.

    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. It will also lead to significant improvement in the ROE and ROCE of Inox Green.

    Further, the scheme of de-merger of Inox Green substation business and its merger into Inox Renewable Solutions is in the final stages of hearing at Hon'ble NCLT Ahmedabad post receipt of approval from NCLT and the merger of the asset IRSL which is Inox Renewable Solutions will be automatically listed on the stock exchanges. ... 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. It will also lead to significant improvement in the ROE and ROCE of Inox Green.

Guidance & targets

Profitability

  • EBITDA Profitability · FY27 · High confidence >INR 600 crores
    With all our investments formally folding into Inox Green's balance sheet, along with organic growth, we expect the EBITDA for FY '27 to be upwards of INR 600 crores.

    — SK Madhusudana

  • Annual Depreciation Elimination Profitability · Post NCLT approval · High confidence INR 50-55 crores
    and subsequently, the annual depreciation of around INR 50-INR 55 crores will be eliminated thereby increasing the profitability.

    — SK Madhusudana

Balance Sheet

  • Gross Block Elimination Balance Sheet · Post NCLT approval · High confidence INR 1,000 crores
    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

    — SK Madhusudana

Working Capital

  • Working Capital Cycle Working Capital · FY27 · Medium confidence 150 days
    But this year end, it will be 200 and by FY '27, hopefully, it will be in the range of 150 odd days.

    — Management

  • Working Capital Cycle Working Capital · FY26 end · Medium confidence 200 days

    Previously 120 days → 200 days

    So by this financial year end, we are targeting 200 days of working capital. ... So that is why on the working capital side, we had earlier maintained 120. We will be achieving that over the next year.

    — Kailash Tarachandani

What to watch in Q4 FY26

NCLT Approval for Substation Demerger

Within 3-odd months (from Feb 13, 2026)
Current In final stages of hearing
Target Final 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.

Risks & concerns

  • Customer site readiness and project execution delays

    medium

    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

  • Increased working capital cycle

    medium

    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

Q&A highlights

6 direct, 1 evasive
Guidance Shift from Megawattage to Revenue Direct
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

Working Capital Cycle Revision Direct
As you can appreciate, there is a lot of execution happening. We are ramping up. Revenues are increasing significantly over the last few years. And a lot of challenges on the ground, customers as well. So that is why on the working capital side, we had earlier maintained 120. We will be achieving that over the next year.

Management clarified the increase in working capital days for FY26 due to rapid growth and on-ground challenges, providing a revised target for FY27.

Asked by Nidhi Shah

Inox Clean Energy's Role Evasive
Inox Clean has nothing to do with this. Inox Clean is completely at the promoter level and has nothing to do with this. It is a strategic asset for us which provides a huge revenue visibility for both wind and green. But beyond that, it has nothing to do with this. We can discuss separately if you want.

Management avoided disclosing specific financials for Inox Clean, indicating it's a promoter-level entity despite its strategic importance to the group's revenue visibility.

Asked by Nidhi Shah

Inox Green FY27 EBITDA Calculation Direct
So out of 13.3 gigawatt, 10 gigawatt belongs to Wind O&M services and 3.3 belongs to solar. And roughly, we give a ballpark figure of 50% EBITDA margin for the Wind business. And Solar is around 15%-20% margin. So this is what we have given. And even in the wind also, there are different classification substations and wind turbine. There are several breakups, which I am not explaining right now. And out of which, after the integration of merger of 3 companies, yes, so the EBITDA will be around INR 600 crores.

Management provided a detailed breakdown of the portfolio and margin assumptions underpinning the FY27 EBITDA guidance for Inox Green.

Asked by Utkarsh Somaiya

Impact of Substation Demerger on Inox Green Direct
So post the demerger, as we have clarified on the multiple cores, there would be a very limited amount of revenue in the range of INR 10 odd crore will get out of the balance sheet. And around INR 50 odd crores of depreciation will go out from the balance sheet.

Management clarified that the demerger would have minimal revenue impact but a significant positive effect on profitability by reducing depreciation.

Asked by Prit Nagersheth

Sector Outlook and Challenges Direct
No, not at all. Absolutely. It is very positive. ... It is only that from my point of view, we were too much turnkey based. In fact, it is better today. We are 50-50 between turnkey and equipment. Turnkey brings a lot more risk at my side in terms of land, in terms of substation, in terms of 220. We have fairly managed and balanced between both the things.

Management reiterated a positive sector outlook, explaining that the shift in business model (50-50 turnkey vs. equipment supply) helps manage risks associated with turnkey projects.

Asked by Ketan Jain

C&I Segment Order Inflow Partial
I think if you see largely even today, all the customers I have, apart from one or two PSU customers, I think all of them are C&I business only. ... But mostly what projects are being executed today on the ground, many of them, almost more than 50% will be of C&I only. So that is how we are also there.

Management highlighted the significant contribution of the C&I segment to current project execution, indicating a strong focus and presence in this growing market.

Asked by Ketan Jain

Inox Wind's 2 GW Annual Execution Target Direct
It is not that I will not achieve 2 gigawatts. I will definitely achieve 2 gigawatts and I will surpass that. When we said we are at 6 gigawatts and we are moving to 10 gigawatts, yes, I will do more than 2 gigawatts. Would it be FY '27? Would it be FY '28? It is tough for me to give you exact timelines. But yes, I can give you a firm view on the revenue and the profitability. So yes, to answer, we are definitely on track to achieve more than 2 gigawatts annually.

Management reaffirmed its commitment to achieving and surpassing the 2 GW annual execution target for Inox Wind, despite challenges in providing precise timelines.

Asked by Aditya Welekar

2 min read 5 chapters

Detailed narrative

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%.

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.

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.

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.

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.

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