Inox India — Q2 FY26 earnings call

Call held 6 Nov 2025

Management summary

Inox India reported its best-ever Q2 and H1 FY26 performance, with consolidated revenue growing 16% YoY to INR 371 crores and PAT increasing 22.9% YoY to INR 62 crores. The company achieved its highest-ever order backlog of INR 1,485 crores, driven by strong execution and significant wins in Industrial Gas and LNG segments. While LNG station adoption is slower than expected, the company is optimistic about future growth across all segments, including beverage kegs and semiconductor applications, and expects a stronger H2 FY26.

Highlights

  • Q2 FY26 and H1 FY26 marked the best performance period in the company's history, achieving highest ever sales, EBITDA, and PAT margins.

  • Consolidated revenue increased by approximately 16% year-on-year to INR 371 crores, driven by robust order inflows and higher dispatches.

  • Order backlog stood at INR1,485 crores as on September 30, 2025, reflecting sustained demand visibility and a 1.9% QoQ increase.

  • Secured 2 large 1,500 metric cube cryogenic vessel orders from a leading U.S.-based aerospace company and a 90KL liquid hydrogen storage tank order from a European customer.

  • Actively bidding for over 0.5 million beverage kegs with major global breweries and expanding into the semiconductor industry with 8-10% of current order book from this segment.

Concerns

  • LNG station adoption is not picking up as fast as expected, though 10-15 more stations are projected by year-end.

  • The Disposable Cylinder segment faced slight hesitation due to a 50% tariff, up from 25%, impacting demand.

Key financials

2 periods

Q2 FY26

  • Total Income
    ₹371 Cr
    YoY +16%
  • EBITDA
    ₹92 Cr
    YoY +18%
  • PAT
    ₹62 Cr
    YoY +22.9%

H1

  • FY26 Total Income
    ₹723 Cr
  • FY26 EBITDA
    ₹180 Cr
  • FY26 PAT
    ₹122 Cr
    YoY +20.9%

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 GasLNG
Q2 FY26 Revenue Composition57%25%
Order Backlog Composition (Sep 30, 2025)45%31%

Order book

high confidence

Total value

₹1,485 Cr

as of 2025-09-30 quantified

1.9% QoQ

Execution

Big jobs have a guideline of around 12 to 18 months, while standard tanks are 3 to 4 months. Approximately 60% of the current backlog will be completed in H2 FY26.

Composition

Mix 3 segments
  • Industrial Gas 45%
  • LNG 31%
  • CSD 23%

Share of order book by segment

Pipeline

deal pipeline tcv

Bidding for over 0.5 million beverage kegs; RFQs for new, big LNG projects; inquiries for future Highview projects; ISRO RFQ expected by Dec end.

Our order backlog stood at INR1,485 crores as on September 30, 2025, the highest till date, providing strong revenue visibility for the coming quarters.

Source: Prepared remarks

Capital allocation

high confidence
  • Liquidity Cash ₹221 Cr Total fund availability provides ample headroom to support future capacity expansion, ongoing project execution and other strategic initiatives.
    Our total fund availability as on Q2 FY26 stood at INR221 crores, providing ample headroom to support future capacity expansion, ongoing project execution and other strategic initiatives.

Guidance & targets

Order Inflow

  • H2 FY26 Order Inflow as % of Annual Target Order Inflow · H2 FY26 · High confidence 55%
    for the H1, normally what happens is for the H1, it is 43% to 45% of our target we achieve. And balance H2 is like 55%.

    — Deepak Acharya

  • Beverage Kegs Order Order Inflow · FY26 · High confidence 100,000 to 150,000 units
    We thought that this year, we'll do at least 100,000 to 150,000.

    — Deepak Acharya

  • Additional Fusion-related Business Order Inflow · next 5 years · Medium confidence INR 500-600 crores
    we expect another for next 5 years, around INR500 crores to INR600 crores additional business. Every year, around INR100 crores, INR150 crores, we can expect.

    — Deepak Acharya

  • New LNG Terminal Project Win Order Inflow · by end of Q3 · Medium confidence one project
    And hopefully, by end of the third quarter, at least one will materialize.

    — Deepak Acharya

  • New LNG Terminal Project Value Order Inflow · N/A · Medium confidence INR 200 crores
    It will be quite big, maybe around INR200 crores or so.

    — Deepak Acharya

  • ISRO Order Order Inflow · by year-end · Medium confidence RFQ by Dec end, order by year-end
    Hopefully, by December end, the RFQ will be out. And if everything goes well and fast, end of the year, they should place the order.

    — Deepak Acharya

Revenue

  • H2 FY26 Revenue Revenue · H2 FY26 · High confidence INR 800-900 crores
    we have almost like INR723 crores we have achieved and balance around INR800 crores to INR900 crores will achieve in the next 2 quarters.

    — Deepak Acharya

Capacity

  • LNG Drill Tank Production Scale-up Capacity · next few years · Medium confidence 10x
    We are expanding our capacity and building capabilities to scale our LNG drill tank production up by 10x over the next few years

    — Deepak Acharya

Market Share

  • LNG Fuel Tanks Market Share Market Share · 3-5 years · Medium confidence 25-30%
    over a period of time in next 3 to 5 years, the LNG fuel tanks will be at least 25% to 30% in my opinion.

    — Deepak Acharya

Volume

  • LNG Fuel Tanks Annual Requirement Volume · 3-5 years · Medium confidence 30,000 to 40,000 tanks
    That will require around 30,000 to 40,000 tanks a year.

    — Deepak Acharya

  • New LNG Stations Volume · by year-end · Medium confidence 10-15 more stations
    But definitely, at least 10 more stations or 15 more stations will come by end of this year.

    — Deepak Acharya

Revenue Growth

  • LNG Fuel Tanks Growth Revenue Growth · N/A · Medium confidence 15-20%
    And the growth can be almost like 15%, 20% more than that perhaps can come from these projects.

    — Deepak Acharya

What to watch in Q3 FY26

Beverage Kegs Substantial Order

within 15-30 days / next month
Current Bidding for 0.5 million kegs, 30,000 received
Target Substantial order from major breweries (Heineken, AB InBEV, Paulaner)

Why it matters

Confirmation of large orders will validate the growth potential of the new beverage kegs segment.

We are hopeful that another 15 to 20 days or max 1 month, we should get a substantial order from these breweries.

Risks & concerns

  • Slower-than-expected adoption of LNG stations

    medium

    LNG station rollout is not picking up as fast as the company's expectation, though private players are contributing to growth.

    Management acknowledged

  • Impact of increased tariffs on Disposable Cylinder segment

    medium

    A 50% tariff (up from 25%) has caused 'slight hesitation' among customers, potentially affecting sales volumes.

    Management acknowledged

Q&A highlights

8 direct
Order Inflow Outlook for H2 FY26 Direct
for the H1, normally what happens is for the H1, it is 43% to 45% of our target we achieve. And balance H2 is like 55%. Whatever yearly targets we have kept for the order book as well as the revenue, I think we are quite confident that we will achieve these targets.

Provides clear quantitative guidance on the expected distribution of order inflow and revenue realization across the fiscal year, indicating a stronger H2.

Asked by Palash Jain

Beverage Kegs Sales Target and Approvals Direct
We are hopeful that another 15 to 20 days or max 1 month, we should get a substantial order from these breweries... And for the coming years, as we grow have more and more approvals because we are waiting for Carlsberg, Asahi, Paulaner and other approvals are pending and to visit our plant somewhere in January, February, and they will start.

Details the immediate and medium-term sales pipeline for the new beverage kegs segment, highlighting key customer approvals and future growth drivers.

Asked by Palash Jain

Gross Margin Improvement and Mix Change Direct
LNG and Cryo Scientific has always a better margin as compared to...

Confirms that the 500 bps gross margin improvement in H1 FY26 is primarily due to a favorable product mix, with higher-margin segments like LNG and Cryo Scientific contributing more.

Asked by Prakash Kapadia

Disposable Cylinder Segment Performance and Tariff Impact Direct
Yes, definitely, there was a small constraint when it was like 25% tariff, people were not so much worried. But now with 50%, slight hesitation they have, but we explained them properly that we can work with them to the extent possible. And as the tariff go away again, we will come back to the original numbers.

Addresses a specific external factor (tariffs) impacting a segment, explaining the current challenges and the company's strategy to mitigate them, while expressing optimism for a return to previous volumes.

Asked by Het Shah

LNG Station Adoption Pace Direct
LNG station somehow is not picking up that fast to our expectation. But definitely, at least 10 more stations or 15 more stations will come by end of this year.

Provides a realistic assessment of a key growth area, acknowledging slower-than-expected adoption but still projecting significant additions by year-end, indicating continued, albeit measured, progress.

Asked by Het Shah

Fusion-related Work (ITER projects) Market Opportunity Direct
So far, what we have executed is around INR800 crores to INR900 crores we exhibited so far. And whatever the new opportunities are coming in, we expect another for next 5 years, around INR500 crores to INR600 crores additional business. Every year, around INR100 crores, INR150 crores, we can expect.

Quantifies the historical and future market opportunity in a specialized, high-tech segment, providing a clear long-term growth outlook.

Asked by Divyam Doshi

Semiconductor Industry Opportunity and Order Book Direct
On semiconductor, again, we are very bullish that there is INR1.6 lakh crores investment, which is planned as a semiconductor outgo... Current order book will be around 8% to 10% of our total revenue now.

Highlights a significant new growth area with substantial investment potential and provides an initial estimate of its contribution to the current order book, indicating diversification into a high-growth sector.

Asked by Mohit Surana

ISRO Order for Cryo Scientific Direct
ISRO, yes, we are working very closely with them. Hopefully, by December end, the RFQ will be out. And if everything goes well and fast, end of the year, they should place the order.

Gives a specific timeline for a potential high-profile order from a strategic domestic client, which could further boost the Cryo Scientific segment.

Asked by Mohit Surana

3 min read 7 chapters

Detailed narrative

Record Performance in Q2 and H1 FY26

Inox India achieved its best-ever performance in Q2 and H1 FY26, reporting the highest sales, EBITDA, and PAT margins in its history. Consolidated revenue for Q2 FY26 grew by approximately 16% year-on-year to INR 371 crores, while PAT increased by 22.9% to INR 62 crores. For the first half, total income reached INR 723 crores and PAT stood at INR 122 crores, marking a 20.9% growth over the previous year, driven by robust order inflows and higher dispatches.

Robust Order Backlog and Strong Demand Visibility

The company's order backlog reached a record high of INR 1,485 crores as of September 30, 2025, up from INR 1,457 crores in the previous quarter, ensuring strong revenue visibility for coming quarters. Exports constitute 63% of this backlog, with the remaining 37% from the domestic market. Management expects to realize INR 800-900 crores in revenue from the current backlog during H2 FY26, with the balance carried forward to the next fiscal year, with execution timelines ranging from 3-4 months for standard tanks to 12-18 months for large projects.

Strategic Wins in Industrial Gas and LNG Segments

The Industrial Gas segment secured two large 1,500 metric cube cryogenic vessel orders from a leading U.S.-based aerospace company and a 90KL liquid hydrogen storage tank order from a European customer, reinforcing its global presence in high-purity and clean energy domains. In the LNG segment, Inox India won two satellite LNG power station projects in the Bahamas and is expanding its capacity to scale LNG drill tank production tenfold over the next few years, supported by favorable regulatory changes and a projected 25-30% market share in 3-5 years.

Expanding Opportunities in Beverage Kegs and Cryo Scientific

The beverage kegs business is gaining traction, with a 30,000-keg order from a German company and active bidding for over 0.5 million kegs with major global breweries like Heineken, AB InBEV, and Paulaner. The company aims for 100,000-150,000 keg orders this fiscal year. In the Cryo Scientific division, the company secured two major refurbishment contracts and is in discussions for new heater project assignments, with the next order expected in Q3 FY26, underscoring its execution excellence in complex cryogenic facilities.

Entry into Semiconductor Industry and Fusion Energy

Inox India is bullish on the semiconductor industry, which has a planned investment of INR 1.6 lakh crores, with 75% of projects in Gujarat. The company has already supplied to major players like Micron, Foxconn, and Tata, and its current order book from this segment is 8-10% of total revenue, with an execution timeline of 8 months to 1 year. Additionally, in fusion-related work, the company has executed INR 800-900 crores worth of projects and anticipates an additional INR 500-600 crores in business over the next five years, with INR 100-150 crores annually.

Slower-than-Expected LNG Station Adoption and Tariff Headwinds

While the LNG segment shows strong potential, the adoption of LNG stations has been slower than anticipated, though private players are expected to add 100 stations, and Inox India projects 10-15 more by year-end. The disposable cylinder segment faced 'slight hesitation' due to a 50% tariff, up from 25%, but management is working with customers to mitigate the impact and expects a return to original numbers if tariffs are removed, having sold INR 46 crores of cylinders in H1.

Strong Liquidity Position and Raw Material Sourcing

The company maintains a healthy liquidity position with INR 221 crores in total fund availability as of Q2 FY26, providing ample headroom for future capacity expansion and strategic initiatives. Inox India primarily sources 85-90% of its raw materials, such as stainless steel, from Indian suppliers like JSW, Jindal, and AMNS, with specific non-Indian origin materials procured from Japan or Korea for certain projects, ensuring supply chain stability.

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