Inox India — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Inox India delivered a strong Q3 FY26 with robust financial performance, marked by 27% YoY revenue growth and 34% YoY EBITDA growth. The company secured significant orders in industrial gases and LNG, expanding its global footprint and market share. While some segments like beverage kegs face utilization challenges and certain international bids are slow, the overall outlook remains positive with a healthy order backlog and strategic initiatives for future growth.

Highlights

  • Total income for Q3 FY26 was INR 436 crores, a 27% Y-o-Y growth, driven by strong execution and highest-ever quarterly sales.

  • Adjusted EBITDA for Q3 FY26 increased 34% Y-o-Y to INR 102 crores, reflecting improved operating efficiency and better product mix.

  • Adjusted PAT for Q3 FY26 grew 32% Y-o-Y to INR 68 crores, supported by margin expansion and robust volume growth.

  • Secured a significant order from a leading U.S.-based aerospace company for 2 cryogenic storage tanks (1,000 cubic meters each).

  • Achieved highest-ever quarterly order intake for liquid nitrogen containers (Cryoseal) with close to 20,000 units, exceeding prior full financial year volumes.

Concerns

  • Gross margins were noted to be lower this quarter, though management attributed it to normal fluctuations and commodity price adjustment formulas.

  • The small-scale LNG bids for Indonesia, Philippines, and Andaman are progressing slowly.

  • Utilization of the beverage keg plant remains low at 25-30%, though orders are expected to improve by March-end.

Key financials

2 periods

Q3 FY26

  • Total Income
    ₹436 Cr
    YoY +27%
  • Adjusted EBITDA
    ₹102 Cr
    YoY +34%
  • Adjusted PAT
    ₹68 Cr
    YoY +32%
  • Export Revenue
    ₹271 Cr

9M FY26

  • Total Income
    ₹1,157 Cr
    YoY +20%
  • Adjusted EBITDA
    ₹281 Cr
    YoY +23%
  • Adjusted PAT
    ₹189 Cr
    YoY +23.7%

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.

Order book

high confidence

Total value

₹1,457 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹392 Cr

Execution

Normal standard projects (tanks) take 3-4 months, slightly complex projects take around 8 months, and big projects (like Bahamas) take 1 year to 18 months.

Composition

Mix 2 geographies
  • Exports 63%
  • Domestic 37%

Share of order book by geography

Management is positive about increasing order flow, expecting substantial results in Q4 and next year due to high-value orders that were close to materializing in Q3.

Source: Prepared remarks · Q&A

Capital allocation

medium confidence
  • Liquidity Cash ₹160 Cr Total fund availability as of Q3 FY26, providing ample headroom to support future capacity expansion, project execution, and strategic initiatives.
    Our total fund availability as on Q3 FY '26 stood at INR160 crores, providing ample headroom to support future capacity expansion, ongoing project execution and other strategic initiatives.

Guidance & targets

Revenue

  • FY27 Revenue Growth Revenue · FY27 · High confidence 18-20%
    FY '27, at least whatever we are targeting, around 18% to 20% growth, will continue, and we have various opportunities we are looking ahead. And we'd definitely meet that target of around 18% to 20% growth.

    — Deepak Acharya

Order Book

  • Annual Order Book Target Order Book · FY26 · High confidence INR 1,700 crores
    We'll be meeting our targets whatever we have planned, around INR1,700 crores.

    — Deepak Acharya

Order Inflow

  • Consistent Quarterly Order Inflow Order Inflow · going forward · Medium confidence above INR 450 crores (near INR 500 crores)
    So I'm saying, around INR300 crores to INR350 crores is our standard orders. And 1 or 2 bigger orders can move us to more than INR500 crores going forward now.

    — Deepak Acharya

Volume

  • Disposable Cylinders Volume Volume · this year (FY26) · High confidence 2 million units
    And we will cross our target of 2 million cylinders this year.

    — Deepak Acharya

  • Beverage Keg Order Book Volume · Q4 FY26 · Medium confidence around 100,000 units
    We'll try to order book of around 100,000 and sale of around 60,000 to 70,000, we will try to achieve in Q4 because it's continuously working now.

    — Deepak Acharya

  • Beverage Keg Sales Volume · Q4 FY26 · Medium confidence 60,000 to 70,000 units

    — Deepak Acharya

Project Timeline

  • Space Segment RFQ Final Quotations Project Timeline · next year · Medium confidence next year
    Normally, it will be 3 months. So may be the next year, we have to give the final quotations.

    — Deepak Acharya

  • Data Center Cooling Prototype Development Project Timeline · next coming few months · Medium confidence 6-8 months
    But the chances that it will happen is around 6 to 8 months, in the next coming few months now.

    — Deepak Acharya

What to watch in Q4 FY26

Order inflow consistency

next quarter (Q4 FY26) and next year
Current INR 392 crores in Q3 FY26
Target Consistent inflow above INR 450-500 crores

Why it matters

Sustained high order inflow is crucial for future revenue growth and indicates strong market demand.

We are very positive about increasing order flow, and we wish that you will see substantial good results in Q4 and next year going forward because some high-value orders, which were not materialized in Q3, but we are very close in Q4 and maybe the first quarter of the next year. So we are hopeful that after that, we'll get good orders inflow.

Risks & concerns

  • Slow progress on international small-scale LNG bids

    medium

    Analyst inquired about the status of LNG bids for Indonesia, Philippines, and Andaman. Management stated the process is slow, with Andaman and Nicobar close to a final tender, but Indonesia and Malaysia still under consideration.

    Analyst acknowledged

  • Low utilization of beverage keg plant

    medium

    Analyst highlighted that the keg plant utilization is low (25-30%). Management acknowledged this but expects order intake to improve to 80,000-100,000 units by March-end, boosting utilization.

    Analyst acknowledged

  • Lower gross margins due to commodity prices

    low

    Analyst noted lower gross margins in Q3. Management clarified that 1-3% fluctuation is normal and commodity rates are adjusted for large orders via formulas, minimizing impact.

    Analyst downplayed

Q&A highlights

6 direct
Order inflow consistency and future targets Direct
around INR300 crores to INR350 crores is our standard orders. And 1 or 2 bigger orders can move us to more than INR500 crores going forward now.

Analyst sought clarity on whether the higher order inflow seen in Q3 (above INR 450 crores) would be consistent or driven only by large orders, indicating investor focus on sustained growth.

Asked by Abhinav

Execution of H2 FY26 revenue target Direct
We are absolutely on track, and we can perform perhaps better than this.

Analyst questioned if the company was on track to achieve its previously stated H2 FY26 revenue target of INR 900 crores (roughly INR 470 crores per quarter), which is critical for revenue visibility.

Asked by Abhinav

Gross margin pressure in Q3 FY26 Partial
Actually, this gross margin level also, 1 to 3% difference are always there as it is not possible to track exactly. So plus/minus 3%, you have to take it granted I think. Sometimes, in some projects, it is lower, but otherwise, commodity doesn't affect us because maximum big orders, we are taking the orders on the basis of the formulas only.

Analyst noted lower gross margins, raising concerns about commodity price impact. Management clarified that commodity rates are adjusted for big orders, and small fluctuations are normal.

Asked by Abhinav

Demand for LNG fuel tanks from OEMs and semi-trailer potential Direct
However, in the last quarter, we could not see much of an impact of requirement from fuel tanks. But this quarter, that is Q4, we have received a good amount of tank requirement from the major OEMs, and we'll be supplying those fuel tanks on road.

Analyst inquired about the demand shaping up for LNG fuel tanks on the OEM side and the potential for semi-trailers, which is a key growth area for the company.

Asked by Prakash Kapadia

Status of small-scale LNG bids for Indonesia, Philippines, and Andaman Partial
I understand your anxiety. But somehow, the process is a little slow. We are very much on the verge of getting a final offer -- final tender from Andaman and Nicobar. But Indonesia and Malaysia, it's still under active consideration only. The tenders are not released.

Analyst sought an update on these international bids, which represent significant potential growth opportunities, highlighting the slow progress.

Asked by Jay Negandhi

Utilization of the Savli keg plant and new approvals Direct
So our utilization into the keg plant is a little less, as you rightly said. But on the Cryo Shop, we are almost at 70% full now. And we are getting orders from Heineken now. We have received from Bulgaria, Croatia, and we are expecting a few more as well. But the volume is not increasing to our expectation. But hopefully, around -- maybe around 80,000 to 1 lakh order, by March-end, we should be getting.

Analyst questioned the low utilization of the keg plant despite new approvals, prompting management to provide an outlook for improved order intake and utilization.

Asked by Divyam Doshi

Indian Railways' adoption of dual power (diesel-LNG) technology Direct
So going forward, we see wherever there is a possibility, Railway will convert their engines to this dual power technology. So we are very hopeful that this business will grow much faster.

Analyst inquired about the technical aspects and future potential of LNG-powered trains for Indian Railways, which represents a new growth lever for the company.

Asked by Mohit Surana

Impact of currency depreciation on export margins Direct
Certainly, slight improvement will be definitely there because we have the orders in hand from either U.S. dollar or euros. And both the currencies are almost like going mad now. There's almost like 25% increase in the European and around 10% to 12% in U.S. dollars. So whatever advances we have received, it is in the old rates, but the new things which will come definitely with the new rates. And we'll have some slight margin improvement as we dispatch this in quarter 4.

Analyst asked if recent currency depreciation would improve margins, given the high export revenue, providing insight into potential Q4 margin benefits.

Asked by Mohit Surana

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Inox India reported a strong Q3 FY26, with total income reaching INR 436 crores, marking a 27% year-on-year growth. This performance was driven by robust execution across key segments, resulting in the highest-ever quarterly sales. Adjusted EBITDA for the quarter stood at INR 102 crores, up 34% year-on-year, reflecting improved operating efficiency and a favorable product mix. Adjusted profit after tax (PAT) also saw a significant increase of 32% year-on-year, reaching INR 68 crores.

Industrial Gas Solutions Segment Highlights

The Industrial Gas segment delivered an outstanding performance in Q3 FY26, characterized by record order wins and volume growth. A notable achievement was securing an order from a leading U.S.-based aerospace company for two 1,000 cubic meter cryogenic storage tanks. The company also recorded its highest-ever quarterly order intake for liquid nitrogen containers (Cryoseal) with nearly 20,000 units, surpassing the volume achieved in the entire previous financial year. Demand for liquid cylinders remained exceptionally strong, with over 1,700 units ordered in Q3, bringing the cumulative 9-month figure to over 2,300 units.

LNG Solutions Segment Developments

The LNG segment continued its strong growth trajectory, supported by the increasing adoption of LNG as a clean fuel. In Q3, Inox India received an LNG marine fuel tank order from a European customer for two 150 cubic meter tanks. The company also secured orders for LNG storage tanks for terminal projects in Africa, comprising two 500 cubic meter tanks from South Korean customers. In India, Inox India crossed a milestone of over 250 LNG semi-trailers operating on roads, commanding an 85% market share. The company also commissioned a fully automated serial production line for LNG fuel tanks at its Kalol plant to meet automotive OEM requirements.

Cryo-Scientific Division and ITER Project

The Cryo-Scientific Division strengthened its position as a trusted partner for complex global scientific infrastructure projects, continuing to receive repeat orders from ITER, France. During the quarter, orders were received for the installation of X, Y, and W cryo lines, refurbishment of lower cryostat thermal shields, and fabrication/installation of bio shield shimming plates. Inox India successfully completed several highly precise milestones at the ITER site, including cooling down the Magnet Cold Test Bench to 4 Kelvin and installing Sector 3 inside the Tokamak pit, reinforcing its technical expertise in mission-critical cryogenic applications.

Beverage Keg Business Expansion

The beverage keg business achieved important strategic wins in Q3 FY26. Inox India received its first-ever order from Heineken for keg supply to the European market, marking a significant entry into the region. Furthermore, the company secured approval from Molson Coors of USA, adding to existing approvals from Heineken and AB InBev. With these approvals, Inox India is now approved by global breweries representing over 40% of the global beer market, positioning its keg business for significant scale-up opportunities in the coming years.

Capacity Utilization and Expansion Plans

Inox India operates four plants, with Kalol and Kandla facilities operating at 85-90% utilization, and Silvassa also at nearly 90%. The Savli plant, which houses both a cryo plant and a keg plant, has its cryo plant at 70% utilization, but the keg plant is currently at 25-30% utilization. Management expects keg plant utilization to improve, targeting 80,000 to 1 lakh orders by March-end. The company has ample headroom to support future capacity expansion and is looking to expand facilities at both Savli and Kandla as opportunities increase, with expansion taking approximately a year to complete.

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