Inox Green Energy Posts Strong FY26 Growth Amid Strategic Demerger

Inox Green Energy Services Ltd has reported significant year-on-year growth for the financial year ended March 31, 2026. Total income surged by 69% to ₹426.2 crore, up from ₹252.0 crore in FY25. EBITDA saw a robust increase of 71%, reaching ₹209.7 crore from ₹122.8 crore previously. The company's profit after tax (PAT) witnessed a substantial jump of 373%, soaring to ₹103.4 crore from ₹21.9 crore in FY25. Cash PAT also grew significantly to ₹157.9 crore from ₹34.2 crore.

What just happened

Inox Green Energy Services Ltd announced its financial results for the quarter and financial year ending March 31, 2026. The company posted a 69% rise in total income to ₹426.2 crore and a 373% increase in profit after tax to ₹103.4 crore for the full fiscal year. Additionally, the National Company Law Tribunal (NCLT) approved the demerger of its evacuation infrastructure business into Inox Renewable Solutions Ltd.

Why this matters

This strong financial performance, coupled with the strategic demerger, positions Inox Green Energy for future growth. The move towards an asset-light, annuity-based business model is expected to enhance margins and improve the company's financial profile. The high machine availability of 96.5% also underscores operational efficiency.

The backstory

Inox Green Energy Services Ltd operates in the renewable energy sector, focusing on providing operations and maintenance (O&M) services for wind and solar power projects. The company manages a significant portfolio of approximately 13+ GWp, comprising around 10.5 GW of wind assets and solar assets.

What changes now

The NCLT-approved demerger will transform Inox Green into an asset-light entity. This strategic shift aims to reduce depreciation charges and transition the company towards a high-margin, annuity-based revenue stream, potentially improving its profitability and valuation metrics.

Risks to watch

While the results are positive, investors will monitor the successful integration of the demerged business and the company's ability to maintain its operational efficiency and secure new long-term O&M contracts in a competitive market.

Peer comparison

While specific peer financial data for the same period is not provided in the filing, the strong revenue growth and improved profitability of Inox Green Energy indicate a competitive performance within the renewable energy O&M services sector.

Context metrics (time-bound)

• Total Income FY26: ₹426.2 crore (up 69% YoY)
• EBITDA FY26: ₹209.7 crore (up 71% YoY)
• Profit After Tax FY26: ₹103.4 crore (up 373% YoY)
• Machine Availability: ~96.5%
• Portfolio Size: ~13+ GWp

What to track next

Investors should closely watch the execution of the asset-light business model post-demerger and the company's performance in securing new long-term contracts to sustain its growth trajectory.