Detailed Narrative
Strong Financial Performance in FY26
Inox India reported a robust financial performance for Q4 and full year FY26. Total income for FY26 reached ₹1,632 crores, marking a 21.2% year-on-year growth over FY25. Adjusted EBITDA for the full year stood at ₹388 crores, with a margin of 23.8%, aligning with the company's guidance. Q4 FY26 alone saw a total income of ₹475 crores, a 24.2% increase YoY, driven by strong execution and record order bookings.
Healthy Order Book and Future Visibility
As of March 31, 2026, the company's order book stood at ₹1,514 crores, providing significant revenue visibility for the coming quarters. Exports contributed 63% to this order book, demonstrating strong global presence. In Q4 FY26, Inox India secured a substantial aerospace order worth approximately ₹200 crores from a leading U.S. private space company, with expectations for more high-value orders in Q1 FY27. Management anticipates an order inflow of ₹450-500 crores every quarter for FY27.
Strategic Expansion and Capacity Augmentation
To support future growth, Inox India is developing a new facility at Kandla, having acquired 7 acres of land on a 30-year lease. This facility, expected to be commissioned within 9-10 months, will significantly enhance the company's capability to manufacture ultra-large tanks (8-9 meters diameter, up to 60 meters length, 500 tons weight), opening opportunities for LNG mega storage and large aerospace tanks. The total fund availability of ₹257 crores as of March 31, 2026, provides ample headroom for this investment.
Diversified Business Segments Driving Growth
The Industrial Gas Solutions segment delivered a strong quarter, including the significant aerospace order. The Beverage Keg segment saw a 31% increase in dispatch volume in FY26, reaching 61,000 units, and secured approvals from major global breweries. The LNG Solutions segment achieved a breakthrough with an order from Cochin Shipyard for 6 LNG fuel tanks (800 cubic meters each) worth approximately ₹85 crores, marking entry into the marine LNG ecosystem. The Cryo-Scientific Division continues to strengthen its position, receiving repeat orders from ITER, France, and completing complex LOX tank production for submarine applications.
New Business Avenues: Data Center Cooling
Inox India is exploring new opportunities, including data center cooling, and has signed an MoU with a European company to jointly develop liquid nitrogen-based cooling solutions. This early-stage R&D initiative is expected to show meaningful development over the next 6-12 months. The company believes cryogenic cooling technology could be a compelling and scalable solution for energy efficiency in modern data centers, leveraging its engineering expertise.
Working Capital and Cash Flow Dynamics
Despite strong revenue growth, the company's operating cash flow for FY26 was ₹116 crores on sales of ₹1,587 crores, a decrease from FY23's ₹177 crores on ₹966 crores sales. This is primarily attributed to an increase in working capital, with contract assets rising due to the growing proportion of long-cycle project orders. Management noted that payment terms for these projects lead to a lag in cash collection compared to revenue recognition, but advances from customers stood at ₹500 crores.