Inox Green Energy Pivots to Equipment Supply Model, Guides Strong FY27 EBITDA

Inox Green Energy Services Ltd is undergoing a significant strategic transformation, moving away from a 100% turnkey EPC (Engineering, Procurement, and Construction) model to an equipment supply-focused business. The company now aims for equipment supply to constitute 75-80% of its operations.

Reader Takeaway: Transition to equipment supply to boost liquidity; demerger to improve financial ratios.

What just happened

The company reported its financial results for Q4 FY26 and the full year ended March 31, 2026. Key figures include Inox Green's total income of ₹120 crore and Profit After Tax of ₹28 crore for Q4 FY26. Inox Wind (consolidated) reported Q4 FY26 revenue of ₹1,306 crore, with EBITDA at ₹333 crore and Profit After Tax at ₹106 crore.

Crucially, Inox Green has received National Company Law Tribunal (NCLT) approval for the demerger of its evacuation infrastructure business. This move is expected to enhance profitability, Return on Equity (ROE), and Return on Capital Employed (ROCE) by removing approximately ₹1,000 crore of gross block and associated depreciation.

Why this matters

This strategic pivot is designed to address historical pain points related to working capital blockages and cost overruns, particularly in the EPC segment. By focusing on equipment supply, Inox Green anticipates improved liquidity and reduced execution risks. The company also provided a positive outlook, guiding for an EBITDA exceeding ₹600 crore for FY27, driven by organic growth, acquired asset consolidation, and high-margin services.

The backstory

Inox Green previously operated entirely on a turnkey EPC basis. The company has built a portfolio of over 13 GWp in renewable energy operations and maintenance (O&M). The order book stands at 3.1 GW, offering more than 24 months of execution visibility, with 600 MW added in FY26.

What changes now

The business model shift means a greater emphasis on selling wind turbine components rather than undertaking full project execution. Management expects most old EPC projects to be closed by H1 FY27, with the backlog mix increasingly favoring equipment supply. The demerger of the evacuation infrastructure business is a structural change aimed at streamlining operations and improving financial metrics.

Risks to watch

Investors should be aware of execution dependencies, as highlighted by past challenges including geopolitical tensions, supply chain disruptions (especially for ECS components), and delays in payments from PSU contracts. Forecasting accuracy remains sensitive to external factors like logistics and grid connectivity. While the pivot aims to improve working capital, some legacy EPC contracts are still nearing completion.

Peer comparison

While specific peer data is not provided in the filing, the shift towards equipment supply in the renewable energy sector aims to capture value while mitigating the capital intensity and execution risks associated with full turnkey projects. Companies in this space often balance O&M services with component supply.

Context metrics (time-bound)

• Order Book: 3.1 GW (600 MW added in FY26)
• Portfolio Size: Over 13 GWp
• FY27 EBITDA Guidance: >₹600 crore
• Demerger Impact: Removal of ~₹1,000 crore gross block

What to track next

Investors should closely monitor the execution progress of the new equipment supply-led strategy, the successful closure of legacy EPC contracts, and the realization of the FY27 EBITDA guidance. The impact of the demerger on financial ratios will also be a key point to watch.