Inox Green Energy Services Ltd. Sees Profit Surge to ₹103.45 Crore in FY26

In FY26, Inox Green Energy Services Ltd. reported a consolidated profit after tax of ₹103.45 crore, a substantial increase from ₹21.85 crore in the previous fiscal year. Consolidated revenue from operations also rose to ₹281.01 crore in FY26, up from ₹220.19 crore in FY25.

Reader Takeaway: Strong profit growth driven by operations, but regulatory challenges loom.

What just happened

Inox Green Energy Services Ltd. announced its financial results for the fiscal year ended March 31, 2026 (FY26). The company reported significant year-on-year growth in both revenue and profit on a consolidated basis. Key highlights include a consolidated profit after tax of ₹103.45 crore, a more than fourfold increase from ₹21.85 crore in FY25. Consolidated revenue from operations reached ₹281.01 crore in FY26, compared to ₹220.19 crore in FY25. On a standalone basis, profit after tax grew to ₹52.47 crore from ₹38.51 crore, with revenue up to ₹238.48 crore from ₹189.38 crore.

Additionally, the demerger of the Power Evacuation business to Inox Renewable Solutions Limited became effective on May 4, 2026. Shareholders are set to receive 122 equity shares in the resultant company for every 1000 shares held in Inox Green.

Why this matters

The substantial increase in profitability and revenue indicates improved operational efficiency and market performance for Inox Green Energy. The effective demerger of the Power Evacuation business is a significant corporate restructuring that could unlock value and streamline operations. However, persistent regulatory hurdles and risks associated with Special Purpose Vehicle (SPV) investments may impact future performance and investor confidence.

The backstory

Inox Green Energy Services Ltd. is involved in the business of providing operations and maintenance (O&M) services for wind energy projects. The company has been working on expanding its capacity and operational footprint. The demerger of its power evacuation business is a strategic move to create separate entities focusing on distinct business segments.

What changes now

The effective demerger will alter the company's structure and financial reporting going forward, with the Power Evacuation business now operating under Inox Renewable Solutions Limited. This separation may lead to a more focused approach for both entities. Investors will now hold shares in both Inox Green and the demerged entity, subject to the terms of the scheme.

Risks to watch

The company faces material risks related to its Special Purpose Vehicle (SPV) investments. It invested ₹55.78 crore in six wholly-owned subsidiaries via Inter-Corporate deposits and provided bank guarantees. Project completion deadlines have passed, and these bank guarantees have been invoked. Furthermore, the Central Electricity Regulatory Commission (CERC) has rejected the company's request to retain 300 MW connectivity at the Bhuj-II site, leading to an appeal at the Appellate Tribunal for Electricity (APTEL). Statutory auditors have flagged these issues in emphasis of matter paragraphs.

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Context metrics (time-bound)

• FY26 Consolidated Profit After Tax: ₹103.45 crore
• FY25 Consolidated Profit After Tax: ₹21.85 crore
• FY26 Consolidated Revenue: ₹281.01 crore
• FY25 Consolidated Revenue: ₹220.19 crore
• Demerger Effective Date: May 4, 2026

What to track next

Investors should closely monitor the progress of Inox Green's appeal at the Appellate Tribunal for Electricity (APTEL) regarding the CERC connectivity decision. Additionally, the company's efforts to resolve issues related to SPV investments and the recovery of funds will be crucial indicators of future financial health.