Inox India — Q1 FY26 earnings call

Call held 5 Aug 2025

Management summary

Inox India reported a strong Q1 FY26 with revenue up 16.17% to ₹352 crores, EBITDA up 19.4% to ₹89 crores, and PAT up 18.9% to ₹61 crores. The company achieved significant milestones in industrial gas solutions with new product developments and secured a major ₹145 crore order for the ITER project. The LNG segment demonstrated robust growth driven by policy support, while the keg division is working towards scaling volumes despite current shortfalls. The order backlog stands at ₹1,457 crores, with Q1 order inflow at ₹415 crores.

Highlights

  • Revenue grew by 16.17% YoY to ₹352 crores in Q1 FY26.

  • EBITDA increased by 19.4% YoY to ₹89 crores, and PAT grew by 18.9% YoY to ₹61 crores.

  • Successfully dispatched India's first ultra-high purity ammonia ISO containers for semiconductor and solar panel sectors.

  • Achieved a breakthrough with India's first CO2 battery storage application, receiving an order from an Italian company for a project in India.

  • Secured a major order for the Cryostat Thermal Shield valued at approximately ₹145 crores for the ITER project, with 90% fabrication in-house.

  • LNG segment showed robust growth, supplying ~145 tanks to major OEMs, supported by favorable policy changes allowing LNG as fuel for mobile pressure vessels.

Concerns

  • Keg division volumes are currently below internal expectations, despite multiple approvals in the pipeline.

  • The U.S. tariff imposition on disposable cylinders, while manageable, still impacts the steel component of the product.

  • LNG tendering stations and execution are slower than potential due to land issues, though recent regulatory changes are expected to help.

Key financials

  1. Revenue ₹352 Cr +16.2%YoY
  2. EBITDA ₹89 Cr +19.4%YoY
  3. PAT ₹61 Cr +18.9%YoY

What they filed

Q1 FY27: revenue up 9.2%, net profit down 6.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue304 332 369 327 356 +17%419 +26%455 +23%357 +9%
EBITDA64 70 81 75 75 +17%90 +29%94 +16%72 −4%
Net profit49 57 65 60 59 +20%59 +4%74 +14%56 −7%
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.

Segment breakdown

SegmentIndustrial GasLNGCryo Scientific Division
Order Backlog Composition (as of June 30, 2025)0.45 % share0.32 % share0.23 % share
Income Segregation (Q1 FY26)0.48 % share0.29 % share0.19 % share
Order Inflow Composition (Q1 FY26)0.44 % share0.2 % share—

Order book

high confidence

Total value

₹1,457 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹415 Cr

Composition

Mix 3 segments
  • Industrial Gas 45%
  • LNG 32%
  • Cryo Scientific Division 23%

Share of order book by segment

The order backlog provides strong visibility, with a significant portion from exports and diversified across key segments.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹80 Cr
    • Expansion of Kandla facility for big vessels
    • Expansion of existing plants at Kalol and Savli
    • LNG fuel tank capacity expansion ₹5 Cr
    Basically, our Capex for this year, we have targeted around INR80 crores. And basically, it will come for some expansion of our Kandla facility because we are manufacturing very big vessels there. 1,500 cubic meter vessels are there. So it requires some additional capex and some capex for our existing plant at Kalol and Savli now. ... We are expanding around INR5 crores to INR6 crores for the addition capacity building for the LNG fuel tank.
  • Liquidity Liquidity disclosed Total funds available as on Q1 FY26 are ₹275 crores, providing adequate room for future growth expansion.
    The total fund available as on Q1 FY '26 is INR275 crores, which provide us adequate room to fund future growth expansion.

Guidance & targets

Revenue

  • Annual Turnover Increase Revenue · FY26 · High confidence 18% to 20%
    Actually, our target is to have the turnover increase about 18% to 20% in this year.

    — Pavan Logar, CFO

Capacity

  • LNG Fuel Tank Production Capacity · per year · High confidence 5,000 to 6,000 units
    And we are augmenting this line to the extent of say around 500, 600 tanks a month, which will take us to like 5,000, 6,000 units in a year.

    — Deepak Acharya, CEO

  • LNG Fuel Tank Requirement Capacity · next 3 to 5 years · Medium confidence 30,000 to 40,000 fuel tanks
    And we expect that in another 3 to 5 years, it will require at least 30,000 to 40,000 fuel tanks.

    — Deepak Acharya, CEO

Volume

  • Keg Sales Volume · this year · High confidence 100,000 kegs
    This year, we are targeting at least 100,000 kegs we will be selling, and it will multiply over a period of time now.

    — Deepak Acharya, CEO

  • Keg Business Size Volume · next 3-4 years · High confidence 3 to 4 times current size
    Surely, we have that vision that we are better placed because we are the Indian manufacturer with all our labor cost and other manufacturing costs are much lower as compared to others. ... So it will be 3, 4 times the current size? Definitely.

    — Deepak Acharya, CEO

Growth

  • Industrial Gas Sector Growth Growth · ongoing · Medium confidence 15% to 17%
    So overall growth, what we are expecting in IG sector is something around 15% to 17%.

    — Deepak Acharya, CEO

  • LNG Front Growth Growth · next 3-4 years · High confidence more than 20%
    Yes. On LNG front, what you rightly said, yes, the growth is going to be more than 20%, or more than that.

    — Deepak Acharya, CEO

Project Timeline

  • Savli Plant Stabilization Project Timeline · around that time · Medium confidence 6 months to 1 year
    I think stabilization will take around 6 months to 1 year around that time.

    — Deepak Acharya, CEO

Order Inflow

  • Space Sector (ISRO) Tender Order Inflow · December or early next year · Medium confidence tender release
    On the space side, yes, the tender is not yet out. Most likely, it is coming up in December or early next year, and we'll get at least 3 months for bidding purpose. So hopefully, by end of this year, something should come up for the third launch right now.

    — Deepak Acharya, CEO

  • Mini LNG Terminals Order Flow Order Inflow · beginning of next year · Medium confidence order flow
    And hopefully, by beginning of next year, something should happen.

    — Deepak Acharya, CEO

Contribution

  • Space Sector Cryogenic Contribution Contribution · for the third launch project · Medium confidence 15% to 20%
    I don't say INOX India, it will be like -- cryogenic contribution will be around 15% to 20%.

    — Deepak Acharya, CEO

What to watch in Q2 FY26

Savli Plant Stabilization

next 6 months to 1 year
Current Still stabilizing, not yet at 100% revenue output
Target Stabilization achieved, improved profitability

Why it matters

Stabilization of the Savli plant is expected to improve overall profitability and contribute more significantly to revenue.

I think stabilization will take around 6 months to 1 year around that time. But gradually, we are putting the products and as on today, more than 150 tanks are under construction at our Savli plant.

Risks & concerns

  • Competitive pressure in Keg division

    medium

    Despite anti-dumping duties on Chinese products, competitive pressure from Chinese players and BLEFA in Europe exists, leading to current volumes being below internal expectations.

    Management acknowledged

  • Slow pace of LNG tendering stations development

    medium

    The development of LNG fueling stations has been slower than anticipated due to land acquisition issues and statutory regulations, though recent government actions are expected to improve the situation.

    Both acknowledged

  • U.S. tariff imposition on disposable cylinders

    low

    Tariff impacts only the steel component, and high EBIT margins (14-15%) along with limited competition in the U.S. market mitigate the overall impact. Orders are still being received regularly.

    Both downplayed

  • Monsoon impact on Industrial Gas sector execution

    low

    The first quarter for the Industrial Gas segment is typically slower due to monsoon, affecting site work, but activity is expected to pick up in subsequent quarters.

    Management acknowledged

Q&A highlights

6 direct
Mini-LNG segment offerings and pipeline Direct
On LNG, yes, we have very strong requirements over the globe and in India as well. As you know, we are one of the pioneer in the manufacturing of entire value chain for the LNG system. So we are into the variety of equipment manufacturing, especially for LCNG fueling stations, fuel tanks, marine fuel tanks, small-scale LNG terminals, and we have been doing the LNG small-scale terminals at Bahamas now, and we already finished at Caribbean LNG.

Clarifies Inox India's comprehensive offerings in the mini-LNG segment and highlights significant global project opportunities and successful track record.

Asked by Abhinav

Beer keg segment growth and approvals Direct
Yes, we got the global approval from AB InBev and Heineken and we are in the process of getting approval from the Carlsberg and Asahi. So these are the 4, 5 major breweries in the world. ... So we hope that the next season, whenever it comes now, we will have substantial orders in this segment.

Details the progress on key global brewery approvals and the expectation of substantial order inflows in the upcoming season, indicating future growth for the keg business.

Asked by Abhinav

Impact of U.S. tariff on disposable cylinder business Partial
So that way, though EBIT is like 25%, it comes to be around 14% to 15% for this product. And basically, there are very less manufacturers in the U.S. for this — there is one, I can say, manufacturer in U.S. So the competition is not there to that extent, and there is a shortage of cylinders in the market. So they have to depend on Indian manufacturers. And there, we are well placed.

Explains that while tariffs impact the steel component, the overall impact is mitigated by high EBIT margins and limited competition in the U.S. market, ensuring continued demand for Inox India's products.

Asked by Abhinav

EBITDA growth vs. other income and cost normalization Partial
Yes, other income is also part of our business only and this other income is also like any expenses provision earlier we've provided, and now it is not required. So it is indirectly from the business only. And otherwise, also, we have already very clear that we are keeping our fixed margin for any new orders which we are quoting. Increase in EBITDA is not possible considering the worldwide competition.

Addresses concerns about EBITDA growth being influenced by 'other income' and clarifies that the company maintains fixed margins on new orders due to competition, impacting potential for higher EBITDA expansion.

Asked by Prakash Kapadia

LNG tendering stations and execution pace Direct
The Government of India has recently changed the regulations also. And there was always a land issue. But now recently, you must have seen that Adani and Ambani have come together and whatever the petrol pumps they are having, they can be now converted to the fueling station as well. So all these proactive actions by the government is substantially going to help us in this business.

Highlights recent regulatory changes and industry collaborations (Adani-Ambani) that are expected to accelerate LNG fueling station development, addressing previous land acquisition challenges.

Asked by Prakash Kapadia

Cryo Scientific Division and future ITER orders Direct
So this is yes, you are correct, it's a one-off is kind of order because it is not going to happen again and again. But looking to our performance, ITER is very much interested to give more and more orders to us. And you will see a few more orders in next few quarters again.

Clarifies that while the large ₹145 crore ITER order is unique, the strong relationship and performance with ITER are expected to lead to more orders in the near future, ensuring continued visibility in this segment.

Asked by Mohit Surana

CO2 battery storage opportunity and order value Direct
This is the first order of its kind. And -- but when we were discussing with this company, they have at least a lot of such requirements not only in India but entire globe. ... This order is not a so big order. We have got 26 units, which we have to sell of 50 cubic meter times at 20 bar pressure. So it's not a very big order in value-wise. But yes, this will give a very good push to the industry.

Provides context on the strategic importance of the first CO2 battery storage order, despite its small initial value, as a gateway to larger future projects and a new market segment.

Asked by Kunal Bhatia

Impact of Chart Industries acquisition by Baker Hughes Direct
So perhaps from the cryogenic front, yes, we will be now sliding upwards because this company will be considered as an oil and gas company, not as a cryogenic company. So we will have a better chance of winning the cryogenic products and going forward. That is what we pursue.

Management believes Chart Industries' acquisition by Baker Hughes could shift its focus, potentially creating opportunities for Inox India to gain market share in cryogenic products as Chart is perceived less as a dedicated cryogenic company.

Asked by Mohit Surana

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

In Q1 FY26, Inox India reported a robust financial performance with revenue reaching ₹352 crores, marking a 16.17% year-over-year growth. EBITDA stood at ₹89 crores, increasing by 19.4% YoY, while Profit After Tax (PAT) grew by 18.9% YoY to ₹61 crores. The company's total funds available as of June 30, 2025, were ₹275 crores, providing ample liquidity for future growth initiatives.

Industrial Gas Solutions & New Product Development

The Industrial Gas segment, contributing 48% to Q1 income and 45% to the order backlog, demonstrated steady momentum. A key highlight was the dispatch of India's first ultra-high purity ammonia ISO containers, specifically designed for the semiconductor and solar panel sectors. The company also launched India's first CO2 battery storage application, securing an initial order from an Italian company for a project in India. These innovations, along with notable orders for disposable cylinders from the U.S., underscore the company's focus on high-purity applications and export success.

LNG Segment Growth & Policy Support

The LNG segment, accounting for 29% of Q1 income and 32% of the order backlog, is experiencing strong growth. The company streamlined its LNG fuel tank production, supplying approximately 145 tanks to major OEM manufacturers during the quarter. Regulatory changes, such as allowing LNG as fuel for mobile pressure vessels and facilitating fueling station development (e.g., Adani and Ambani collaboration), are expected to further accelerate LNG adoption. Inox India anticipates LNG segment growth to exceed 20% in the coming years.

Cryo Scientific Division & ITER Project

The Cryo Scientific Division, contributing 19% to Q1 income and 23% to the order backlog, secured a major order for the Cryostat Thermal Shield valued at approximately ₹145 crores for the prestigious ITER project. Approximately 90% of the fabrication and assembly work for this 2-year project will be carried out in-house. This order, while significant, is seen as a testament to Inox India's proven track record and credibility at the ITER site, with expectations for more orders in the future quarters.

Beverage Keg Division Expansion

The beverage keg division is expanding its global footprint, securing global approval from Heineken and engaging with local players across South America, Australia, and South Africa. New distributors have been appointed in the UK, Germany, and U.S. While current volumes are below internal expectations, the company is optimistic about scaling the business, targeting at least 100,000 kegs this year and aiming for 3-4 times its current size in the next 3-4 years.

Capital Expenditure & Liquidity

Inox India has planned a capital expenditure of approximately ₹80 crores for FY26. This investment will primarily support the expansion of its Kandla facility for large vessels and upgrades at its Kalol and Savli plants. Specifically, ₹5-6 crores are allocated for LNG fuel tank capacity expansion. The company's total available funds of ₹275 crores as of Q1 FY26 provide adequate liquidity to support these growth and expansion initiatives.

Outlook & Strategic Focus

The company maintains a positive outlook, targeting an 18-20% turnover increase for FY26. Management expects the Industrial Gas sector to grow by 15-17% and the LNG segment by over 20%. Inox India is actively pursuing opportunities in new areas like CO2 battery storage and ultra-high purity ammonia containers, while also preparing for upcoming tenders in the space sector, where cryogenic contributions are expected to be 15-20% of large projects. The company is strategically aligned with India's 'Make in India, Make for the World' vision.

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