Inox Wind — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Inox Wind delivered a strong Q3 FY26 with robust revenue and EBITDA growth, driven by a healthy order book and improved margins. The company recalibrated its guidance from megawattage to revenue-based, targeting over ₹5,000 crores for FY26 and 75% growth in FY27, with EBITDA margins of 20-22%. Execution faced challenges due to customer site readiness, but the O&M subsidiary, Inox Green, also showed significant growth and is progressing with strategic acquisitions and demerger plans.

Highlights

  • Consolidated Revenue grew 24% YoY to ₹1,238 crores in Q3 FY26.

  • Consolidated EBITDA increased 39% YoY to ₹313 crores (excluding one-time gain).

  • Inox Green reported 51% YoY growth in total income to ₹112 crores and 80% YoY EBITDA growth to ₹53 crores.

  • Order book stands at 3.2 GW, with 600 MW added in FY26, ensuring 18-24 months of execution visibility.

  • Upgraded FY26 consolidated revenue guidance to over ₹5,000 crores (35%+ YoY growth) and EBITDA margin to 20-22% (from 18-19%).

Concerns

  • Delays in site readiness and postponement of wind turbine off-take from some customers impacted execution.

  • Working capital days are currently in the 200-210 range, higher than the earlier target of 120 days, though management aims for 150 days by FY27.

  • Realizations per megawatt dropped Q-o-Q and Y-o-Y due to shifts in contract scope and execution challenges.

Key financials

  1. Consolidated Revenue ₹1,238 Cr +24%YoY
  2. Consolidated EBITDA ₹313 Cr +39%YoY
  3. Consolidated PBT ₹209 Cr +62%YoY
  4. Consolidated PAT ₹127 Cr +14%YoY
  5. Consolidated Cash Profit ₹262 Cr +38%YoY

What they filed

Q1 FY27: revenue up 3.8%, net profit down 17.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue678 928 1,286 716 947 +40%1,082 +17%1,151 −10%743 +4%
EBITDA93 174 234 149 181 +95%229 +32%169 −28%98 −34%
Net profit64 59 190 87 247 +286%126 +114%88 −54%72 −17%
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

  • Inox Green Energy Services Limited
    ₹112 Cr Total Income₹53 Cr EBITDA₹40 Cr PBT₹25 Cr PAT₹51 Cr Cash-back

Order book

high confidence

Total value

3.2 GW

as of 2025-12-31 quantified

Execution

execution visibility for the subsequent 18-24 months

Composition

Mix 2 contract types
  • Turnkey 50%
  • Equipment Supply 50%

Share of order book by contract type

Pipeline

deal pipeline tcv

multiple customer negotiations nearing closure

Cancellations & deferrals

  • deferred: Delays in site readiness impacting wind turbine off-take from some customers.
  • postponed: Delays at customer sites resulting in postponement of off-take of wind turbines.
Management is confident in closing FY26 with a strong net order book, providing 18-24 months of execution visibility, despite some customer-side delays.

Source: Prepared remarks

Capital allocation

  • Capex ₹200 Cr
    And on the CAPEX guidance side, so it will be around INR 200 crores for FY '27. At this point of time, we are refraining from giving FY '28 guidance. And how much CAPEX has been incurred in 9 months FY '26 and what will be the full year target? So this year's target is also around INR 200 odd crores. And is there any accountability for 9 months FY '26? Around INR 150 odd crores have been expended.
  • Debt Debt disclosed
    At the end of H1, we were net cash and we still continue to be a net cash company. In fact, we will keep it for the next quarter. We will give you the net cash figure at the end of the financial year.
  • M&A 6.5 GW operational wind O&M assets Acquisition · Pending regulatory

    To become India's largest renewable O&M company and multi-fold increase in consolidated EBITDA and PAT for FY27.

    Expected to complete the acquisition process soon, consequent to which the consolidation of financials into Inox Green will result in a multi-fold increase in consolidated EBITDA and PAT for FY '27 over FY '26.

    This also includes the investments which we have made to acquire 6.5 gigawatt of operational wind O&M assets of two major companies. We expect to complete the acquisition process soon, consequent to which the consolidation of financials into Inox Green will result in a multi-fold increase in consolidated EBITDA and PAT for FY '27 over FY '26.
  • M&A Inox Green substation business Demerger · Pending regulatory

    Eliminate gross block of ~₹1,000 crores and annual depreciation of ₹50-55 crores, leading to significant improvement in ROE and ROCE.

    The scheme of de-merger of Inox Green substation business and its merger into Inox Renewable Solutions is in the final stages of hearing at Hon'ble NCLT Ahmedabad post receipt of approval from NCLT and the merger of the asset IRSL which is Inox Renewable Solutions will be automatically listed on the stock exchanges. Once this scheme receives the final approval from the NCLT, gross block of around INR 1,000 crores will be eliminated from Inox Green's balance sheet and subsequently, the annual depreciation of around INR 50-INR 55 crores will be eliminated thereby increasing the profitability. It will also lead to significant improvement in the ROE and ROCE of Inox Green.

Guidance & targets

Revenue

  • Consolidated Revenue Revenue · FY26 · High confidence over ₹5,000 crores
    For FY '26, we expect to achieve a consolidated revenue of over INR 5,000 crore, translating to over 35% Y-o-Y growth.

    — Kailash Tarachandani

  • Consolidated Revenue Growth Revenue · FY27 · High confidence around 75%
    For FY '27, we expect our consolidated revenue to grow by around 75% over FY '26 with EBITDA margin of 20%-22%.

    — Kailash Tarachandani

Profitability

  • Consolidated EBITDA Margin Profitability · FY26 · High confidence 20-22%

    Previously 18-19% → 20-22%

    margin guidance to 20-22% versus 18%-19% earlier.

    — Kailash Tarachandani

  • Consolidated EBITDA Margin Profitability · FY27 · High confidence 20-22%
    For FY '27, we expect our consolidated revenue to grow by around 75% over FY '26 with EBITDA margin of 20%-22%.

    — Kailash Tarachandani

Working Capital

  • Working Capital Days Working Capital · FY26 · High confidence 200 days
    So by this financial year end, we are targeting 200 days of working capital.

    — Kailash Tarachandani

  • Working Capital Days Working Capital · FY27 · Medium confidence 150 odd days
    But this year end, it will be 200 and by FY '27, hopefully, it will be in the range of 150 odd days.

    — Kailash Tarachandani

Capacity

  • Annual Capacity Addition (India) Capacity · coming years · Medium confidence 10 gigawatt
    With India's power sector poised to deliver its best-ever annual capacity addition figure in Financial Year '26 and moving towards 10 gigawatt annual capacity addition in the coming years, Inox Wind is well placed to deliver tailor-made wind solutions for the ever-evolving customer requirements.

    — Kailash Tarachandani

Profitability (Inox Green)

  • EBITDA Profitability (Inox Green) · FY27 · High confidence upwards of INR 600 crores
    With all our investments formally folding into Inox Green's balance sheet, along with organic growth, we expect the EBITDA for FY '27 to be upwards of INR 600 crores.

    — S K Madhusudana

Capex

  • Capex Capex · FY27 · High confidence around INR 200 crores
    And on the CAPEX guidance side, so it will be around INR 200 crores for FY '27.

    — Management

  • Capex Capex · FY26 · High confidence around INR 200 odd crores
    So this year's target is also around INR 200 odd crores.

    — Management

Execution

  • Annual GW Execution Execution · annually · High confidence more than 2 gigawatts
    But yes, I can give you a firm view on the revenue and the profitability. So yes, to answer, we are definitely on track to achieve more than 2 gigawatts annually.

    — Management

What to watch in Q4 FY26

Inox Green O&M acquisition completion

Soon
Current Pending regulatory approval
Target Completed acquisition of 6.5 GW O&M assets

Why it matters

This acquisition is expected to multi-fold increase Inox Green's EBITDA and PAT for FY27, making it India's largest renewable O&M company.

We expect to complete the acquisition process soon, consequent to which the consolidation of financials into Inox Green will result in a multi-fold increase in consolidated EBITDA and PAT for FY '27 over FY '26.

Risks & concerns

  • Delays in site readiness and off-take of wind turbines

    medium

    Customer-side delays in site readiness and postponement of off-take impacting wind turbine execution, though the company aims to compensate through other activities.

    Management acknowledged

  • Working capital intensity

    medium

    Working capital days are currently 200-210, higher than the earlier target of 120 days, due to ramp-up and on-ground challenges, but management aims to reduce it to 150 days by FY27.

    Management acknowledged

  • Quarterly volatility in megawatt execution and realizations

    low

    The nature of the business with varied contract scopes (turnkey vs. equipment supply) and on-ground challenges makes quarterly megawattage and per-megawatt realization volatile, leading to a shift to revenue-based guidance.

    Management acknowledged

Q&A highlights

5 direct
Working capital days and reduction efforts Direct
So by this financial year end, we are targeting 200 days of working capital. But this year end, it will be 200 and by FY '27, hopefully, it will be in the range of 150 odd days.

Clarifies the current working capital position (200-210 days) and sets a revised target for improvement by FY27, indicating ongoing efforts to manage cash flow.

Asked by Nidhi Shah

Inox Green's FY27 EBITDA guidance calculation Direct
So out of 13.3 gigawatt, 10 gigawatt belongs to Wind O&M services and 3.3 belongs to solar. And roughly, we give a ballpark figure of 50% EBITDA margin for the Wind business. And Solar is around 15%-20% margin. So this is what we have given. And even in the wind also, there are different classification substations and wind turbine. There are several breakups, which I am not explaining right now. And out of which, after the integration of merger of 3 companies, yes, so the EBITDA will be around INR 600 crores.

Provides a detailed breakdown of Inox Green's portfolio and margin assumptions that underpin the ₹600 crore EBITDA guidance for FY27, offering transparency on the calculation.

Asked by Utkarsh Somaiya

Shift from megawattage to revenue guidance and perceived lower execution Partial
But what I do in that time is, if I am not able to deliver the equipments, I can do some other projects, some other activities, setting up towers, setting up infra, which can compensate for the loss of the supply through this additional activities and hence meet my revenue guidance, which I have a greater control on. So that is the logic of giving you these numbers.

Addresses analyst's concern about lower execution by explaining that the shift to revenue guidance allows for flexibility in project scope and activities to meet financial targets, even if turbine off-take is delayed.

Asked by Darshit Shah

Challenges leading to guidance revision Direct
I think these are very routine. Actually, I won't say challenges as part and parcel of doing infrastructure development in this country. There are always issues can keep up at the ground level in terms of land, in terms of connectivity or substation getting ready or getting 220 kV line. These are usual things.

Management clarifies that the challenges are routine infrastructure development issues (land, connectivity, substations) rather than fundamental sector problems, and the shift to revenue guidance is to manage these volatilities.

Asked by Ketan Jain

Timeline for Inox Green substation demerger and merger into Inox Renewable Solutions Partial
So Pradyumna, it is very difficult to comment on the particular timelines, but as we have explained that it is in the final stages, NCLT approval should come in a month or so. But we cannot comment on the specific timelines. Post receiving of the NCLT approval, it is 1 to 1-1/2 month process for the listing of the company. So yes, in all likelihood, if everything goes well, within 3-odd months, 2-3 months, it should get on the process.

Provides an estimated timeline for the NCLT approval and subsequent listing process (within 3 months), which is crucial for the financial restructuring of Inox Green.

Asked by Pradyumna Choudhary

Reasons for drop in realizations per megawatt Direct
So both because turnkey to equipment supply will always be lesser. And also since as execution is improving and we are executing more and more project, project revenues will always be on the lower side. So that is the reason why you will see realization per megawatt, quarter to quarter. So it is better to look at the whole holistically at the annual basis.

Explains that the shift in order book composition towards more equipment supply (lesser value per MW) and improved execution of projects (lower project revenues) are causing the per-megawatt realization to decline, reinforcing the move to revenue-based guidance.

Asked by Harsh Motika

H2 heavy revenue, market share, and receivable days Direct
It will be always H2 heavy. H1 is many times leaner because of monsoon, to be honest. So that remains the fact. So while quarter 1 will be again very good. But quarter 2 will definitely diminish the overall H1. So obviously, if you see our performance over the past few years, the receivable days are continuously improving. And what we have guided, so 200 odd days of networking capital days by this Financial Year end. You will see the receivable days improving substantially over FY '27.

Confirms the H2-heavy nature of revenue, clarifies that market share is not a primary focus (profitability is), and reiterates the target for improving receivable days towards 120 days by FY27.

Asked by Pratik Jain

2 min read 6 chapters

Detailed narrative

Q3 FY26 Consolidated Performance and Growth Drivers

Inox Wind reported a strong Q3 FY26 with consolidated revenue of ₹1,238 crores, marking a 24% year-on-year increase. EBITDA grew by 39% year-on-year to ₹313 crores (excluding one-time gains), reflecting improved margins. Profit after tax also saw a 14% year-on-year increase to ₹127 crores, supported by various initiatives including backward integration into cranes and transformer manufacturing.

Order Book and Execution Dynamics

The company maintains a robust and diversified order book of 3.2 GW, with approximately 600 MW added in the current financial year. This order book provides execution visibility for the next 18-24 months. However, execution faced challenges due to customer-side delays in site readiness and postponement of off-take, which is a common industry issue. The order book composition is now roughly 50-50 between turnkey and equipment supply, with over 50% of projects being C&I driven.

Recalibrated Guidance and Future Outlook

Inox Wind has recalibrated its guidance from megawattage to revenue and EBITDA margins to provide more certainty. For FY26, the company expects consolidated revenue to exceed ₹5,000 crores, representing over 35% year-on-year growth. The EBITDA margin guidance for FY26 has been upgraded to 20-22% from the earlier 18-19%. For FY27, consolidated revenue is projected to grow by around 75% over FY26, maintaining an EBITDA margin of 20-22%.

Inox Green Energy Services: Growth and Strategic Initiatives

Inox Green, the O&M subsidiary, continued its strong growth trajectory, with total income reaching ₹112 crores in Q3 FY26, a 51% year-on-year increase. EBITDA surged by 80% year-on-year to ₹53 crores. The company's portfolio stands at 13.3 GW (10 GW wind, 3.3 GW solar) and is in the process of acquiring 6.5 GW of operational O&M assets. The demerger of Inox Green's substation business and its merger into Inox Renewable Solutions is in its final stages, expected to eliminate ₹1,000 crores of gross block and ₹50-55 crores of annual depreciation, significantly improving ROE and ROCE.

Capital Expenditure and Working Capital Management

The planned capital expenditure for FY26 is around ₹200 crores, with approximately ₹150 crores already expended in the first nine months. The FY27 capex is also projected to be around ₹200 crores. Working capital days are currently in the 200-210 range, higher than the previous target of 120 days. Management aims to reduce this to 200 days by FY26 end and further to 150 days by FY27, indicating a focus on improving cash conversion.

Product Development and Innovation

Inox Wind is advancing with the launch of its new 4X, 4.45 MW turbine. The company expects to receive all necessary approvals and commercially launch this product within the current calendar year. This new turbine is anticipated to strengthen Inox Wind's product portfolio and cater to evolving customer requirements in the growing Indian renewable energy sector.

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