Inox India

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.

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.

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.

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.

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.

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.

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.