Inox India — Q4 FY25 earnings call

Inox India delivered a strong financial performance for Q4 and the full fiscal year 2025. For Q4 FY25, total income stood at INR 383 crores, marking a 33% year-on-year growth. EBITDA for the quarter was INR 95 crores, up 52% YoY, and profit after tax (PAT) increased by 55% to INR 66 crores. For the full FY25, the company reported a total income of INR 1,354 crores, a 16.2% increase YoY, with EBITDA growing 18.3% to INR 330 crores and PAT rising 15.4% to INR 224 crores. The company maintained a debt-free status with a comfortable net cash surplus of INR 261 crores as of March 31, 2025.

The Industrial Gas Solutions segment saw robust order inflow in Q4 FY25, growing 25.5% to INR 251 crores, driven by prominent export orders. A significant milestone was securing an order from Australia for oxygen, nitrogen, and CO2 IMO containers, marking the company's direct competition with Chinese manufacturers. The disposable cylinder business also performed strongly, with substantial orders from the U.S. despite new tariffs, indicating resilient demand. The company is also developing specialized liquid helium containers and has successfully converted 6 trucks for ethylene oxide transport, with another 25 conversions secured.

In the LNG segment, Inox India achieved a milestone by securing an order for 36 IMO 40-feet containers from a U.S.-based customer. The company is actively supporting LNG adoption for Indian Railways, with orders for LNG fuel systems for locomotives, two of which are operational in Gujarat. The newly developed Gen 2 tankfuel tank has been successfully installed, and requests for over 1,500 units for FY26 have been received from major OEMs. Inox India also became the first Indian company to receive IATF 16949 certification for cryogenic fuel tanks, enabling participation in the global heavy-duty vehicle fuel tank market.

The Cryo Scientific division marked a historic achievement with the successful installation of India's first indigenously developed MRI machine at AIIMS Delhi, significantly reducing import dependency by 80-85%. This initiative, supported by SAMEER and the Ministry of Electronics & Information Technology, showcases India's medical technology capabilities. The division also expanded its presence in high-impact scientific and aerospace applications, securing an order from Wroclaw University of Science and Technology and engaging with emerging space start-ups for prototype testing equipment. The stainless steel kegs division achieved ABInBev global certification with a 98% score, securing orders from breweries in Africa, Brazil, and other countries.

As of March 31, 2025, the total order book stood at INR 1,356 crores, with industrial gas contributing 47%, LNG 36%, and Cryo Scientific Division 17%. Exports comprised 64% of the total backlog. Q4 FY25 order inflow was INR 364 crores. For FY26, the company targets revenue growth of 18-20%, maintaining EBITDA margins at 22-24% and PAT margins at 15-18%. Segment-wise, IG is expected to grow 16-18%, while LNG and CSD are projected to grow over 20%. Management anticipates continued strong order inflows, with an average of INR 350-400 crores per quarter.

Management addressed concerns regarding US tariffs, stating the impact on disposable cylinders and standard tanks would be minimal due to zero antidumping duties on Inox India, rising local inflation in the US, and a non-compete clause until 2028. The container shortage, which affected earlier quarters, has now streamlined. For beer kegs, Inox India believes its product quality and global certifications (ABInBev, Heineken) give it a competitive edge over Chinese manufacturers in European and US markets, despite not being lower priced.

The company identified hydrogen, helium, ammonia, and semiconductor applications as key growth drivers in the IG segment. The expansion of the steel industry and rising investment in semiconductor manufacturing are creating strong demand for industrial gases. The Union Budget's emphasis on energy security and invitation to private players for investment in the segment, particularly SMR in fusion energy, aligns with Inox India's expertise. The company is actively bidding for large projects in the space department and other big science projects globally, where it sees a competitive advantage due to its specialized manufacturing capabilities.