Inox Wind Limited (IWL) has shown a significant operational turnaround in fiscal year 2026, driven by a robust order book, strategic debt reduction, and a favorable regulatory environment for renewable energy.
Financial Performance Summary (Q3 FY26 & 9M FY26)
The company reported a strong set of numbers for the quarter and nine-month period ending December 31, 2025:
- Revenue Growth: Consolidated revenue for Q3 FY26 stood at ₹1,238.42 crore, representing a 24.6% YoY increase. For the 9-month period (9M FY26), total operating income rose to ₹3,153 crore compared to ₹2,282 crore in the previous year.
- Profitability: Net profit (PAT) for Q3 FY26 reached ₹126.67 crore, a 13.5% YoY growth.
- Margin Expansion: EBITDA margins for Q3 FY26 improved significantly to ~25.3% (up from ~22.8% YoY on a comparable basis), aided by better fixed cost absorption and backward integration.
- Future Guidance: Management has guided for consolidated revenue exceeding ₹5,000 crore for FY26 (over 35% YoY growth) and targets ~75% revenue growth for FY27.
Investment Rationale
- Strong Order Visibility
- Healthy Order Book: The company holds a diversified order book of 3.2 GW as of December 2025, providing execution visibility for the next 18–24 months.
- Higher Margin Mix: Over 95% of the current order book consists of high-margin 3.3 MW turbines, which is expected to sustain healthy EBITDA margins going forward.
- Aggressive Deleveraging
- Equity Infusions: The company’s financial risk profile has improved through successful equity raises, including ₹1,250 crore raised in the first half of fiscal 2026.
- Debt Repayment: IWL intends to repay long-term debt obligations of approximately ₹50 crore due in March 2026 using existing cash balances and internal accruals.
- Operational and Strategic Integration
- Backward Integration: Increased control over its supply chain, including crane services and transformer manufacturing, has helped improve margins in the EPC (Engineering, Procurement, and Construction) segment.
- Service Portfolio (Inox Green): Through its subsidiary, the company has expanded its operations and maintenance (O&M) portfolio to 13.3 GW (10 GW wind and 3.3 GW solar) as of December 2025, creating a steady stream of high-margin recurring income.
- New Product Launch: IWL is progressing toward the commercial launch of its 4.45 MW turbine within the calendar year 2026.
- Sector Tailwinds
- Policy Shift: The government’s move from reverse bidding to closed bidding and the expansion of tenders have improved visibility for wind capacity additions in India.
- Market Demand: Increasing demand for open-access renewable power from Corporate and Industrial (C&I) players is driving fresh order intake.
Key Monitorables & Risks
- Working Capital: Working capital intensity remains high, with debtor days at approximately 200–210 days. Reducing this cycle is a primary management goal for FY27.
- Execution Delays: Near-term execution can be affected by land acquisition, grid connectivity, and customer-side site readiness.
- INOXWIND RR