Inox Wind PAT Soars 115% YoY, But Standalone EBITDA Plunges 54%

INDUSTRIAL-GOODSSERVICES
Whalesbook Logo
AuthorAditi Singh|Published at:
Inox Wind PAT Soars 115% YoY, But Standalone EBITDA Plunges 54%
Overview

Inox Wind reported a strong Q3 FY26 with consolidated revenue up 32.5% YoY to ₹1,207.45 Cr and standalone PAT surging 115.7% YoY to ₹126.33 Cr. However, standalone EBITDA plummeted 54.1% YoY to ₹191.08 Cr, raising concerns over operational profitability. Significant risks include invoked bank guarantees from rejected SPV extensions and auditor observations on revenue recognition and inventory valuation.

📉 The Financial Deep Dive

Inox Wind Limited's unaudited results for Q3 FY26 reveal a complex financial picture, marked by robust profit growth juxtaposed with a sharp decline in operational profitability at the standalone level.

The Numbers:

  • Consolidated Revenue climbed 32.5% YoY to ₹1,207.45 Cr in Q3 FY26, driven by a strong 24.1% YoY revenue growth for the nine months ended December 31, 2025, reaching ₹2,744.93 Cr (standalone) and ₹3,152.88 Cr (consolidated).

  • Standalone Profit After Tax (PAT) delivered a stellar performance, jumping 115.7% YoY to ₹126.33 Cr in Q3 FY26. For the nine months, standalone PAT surged 136.6% YoY to ₹459.89 Cr.

  • Consolidated PAT saw a more moderate 14.0% YoY increase to ₹126.65 Cr in Q3 FY26, with nine-month PAT up 39.4% YoY to ₹344.64 Cr.

  • However, the operational profitability metrics present a stark contrast. Standalone EBITDA (excluding exceptional items) experienced a significant 54.1% YoY decline to ₹191.08 Cr in Q3 FY26. This marks a substantial compression from the prior year's operational performance.

  • Consolidated EBITDA showed resilience, growing 8.6% YoY to ₹312.59 Cr in Q3 FY26, though its growth rate lagged behind PAT.

The Quality & The Grill:
The divergence between standalone PAT growth and EBITDA contraction is a key area for investor scrutiny. The standalone EBITDA margin saw a dramatic compression, falling to approximately 17.6% in Q3 FY26 from about 44.8% in Q3 FY25. While consolidated PAT saw healthy growth, its EBITDA growth was more subdued, indicating cost pressures or other factors affecting profitability below the EBITDA line on a consolidated basis.

The standalone nine-month results also show a sharp increase in Other Income to ₹207.38 Cr, up from ₹53.72 Cr in the prior year, which may have artificially boosted the PAT figures.

🚩 Risks & Governance

The company's financial health and operational execution face several risks:

  • Invoked Bank Guarantees: A critical concern arises from the rejection of project completion date extensions for 6 SPVs. This has led to the invocation of bank guarantees, and Inox Wind Limited is exposed to potential costs if its subsidiary IGESL cannot recover funds. This situation represents a significant financial overhang.

  • Auditor's Observations: The auditors' report for consolidated results flags issues concerning the revenue recognition policy for O&M services and the valuation of work-in-progress inventory. Such observations warrant close monitoring by investors.

  • Pending Litigation: While management expresses confidence in prevailing in pending legal matters with no material impact, these remain contingent risks.

  • New Labour Codes: The impact of newly introduced labour codes is under evaluation, which could influence future operational costs.

🚀 Key Events & Restructuring

The quarter was marked by significant corporate actions:

  • Completion of the amalgamation scheme of Inox Wind Energy Limited into Inox Wind Limited, with prior period figures restated.

  • A rights issue of up to ₹1,250 crores was completed in August 2025.

  • The subsidiary IGESL's Board approved a demerger of its Power Evacuation business.

  • Grant of stock options to employees and incorporation of new subsidiaries signal ongoing strategic initiatives.

🚫 Outlook

No specific forward-looking guidance or outlook statements were provided by the management in the analysed text.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.