Inox Wind Posts ₹106 Cr Profit, Shifts Strategy

Inox Wind reported a consolidated profit after tax (PAT) of ₹106 crore for the fourth quarter of FY26. This marks a significant strategic shift as the company transitions away from 100% turnkey EPC contracts towards equipment supply. Inox Green, a related entity, reported a total income of ₹120 crore and PAT of ₹28 crore for the same period.

Reader Takeaway: Pivot to equipment supply aims to boost cash flow; Inox Green's FY27 EBITDA guidance is key.

What just happened

Inox Wind announced its Q4 FY26 financial results, showing a consolidated PAT of ₹106 crore on revenue of ₹1,306 crore. The company also revealed a strategic business pivot. It plans to increase the proportion of equipment supply in its order book to 75%, up from the current 50%. This move aims to reduce working capital blockage and payment delays.

Separately, Inox Green reported Q4 FY26 total income of ₹120 crore and PAT of ₹28 crore. Its management provided an EBITDA guidance of over ₹600 crore for FY27, driven by recent operational and maintenance (O&M) asset acquisitions and value-added services.

Why this matters

The strategic pivot by Inox Wind is crucial for improving its financial health by addressing working capital issues inherent in turnkey projects. For investors, this signals a move towards a more efficient operational model. Inox Green's clear EBITDA guidance provides a target for its future performance, which is supported by acquisitions and demerger news.

The backstory

Inox Wind has traditionally focused on Engineering, Procurement, and Construction (EPC) contracts, which often involve significant upfront capital expenditure and longer payment cycles. The move towards equipment supply aims to streamline this process. Inox Green operates in the renewable energy sector, focusing on wind turbine services and O&M.

What changes now

The business model change at Inox Wind is expected to lead to better cash flow generation and potentially higher profitability through a reduced working capital cycle. The demerger of Inox Green's evacuation business, approved by the National Company Law Tribunal (NCLT), will provide structural clarity to its operations, separating it from the core O&M activities.

Risks to watch

Execution of the strategic pivot for Inox Wind is critical. Any delays in transitioning the order book or challenges in securing new equipment supply contracts could impact the expected improvements in working capital and cash flow. For Inox Green, the successful integration of acquired O&M assets and delivering on the ₹600 crore EBITDA guidance for FY27 are key risks.

Peer comparison

Companies in the wind energy sector often face challenges related to working capital and project execution. Competitors like Suzlon Energy also focus on equipment manufacturing and project execution. The success of Inox Wind's pivot will be gauged against its peers' operational efficiencies and financial metrics.

Context metrics (time-bound)

In Q4 FY26, Inox Wind reported consolidated revenue of ₹1,306 crore and PAT of ₹106 crore. EBITDA stood at ₹333 crore. Inox Green's total income was ₹120 crore with a PAT of ₹28 crore and EBITDA of ₹57 crore.

What to track next

Investors will be closely monitoring the progress of Inox Wind's transition to equipment supply, the impact on its working capital, and the company's ability to meet its revenue and profitability targets. For Inox Green, tracking the completion of O&M acquisitions and progress towards the FY27 EBITDA guidance will be important.