Whalesbook
📉 The Financial Deep Dive
Inox Wind Limited has showcased significant operational and financial momentum in its unaudited results for Q3 FY26. The consolidated performance highlights a robust year-on-year (YoY) expansion across key metrics, signaling strong demand and execution capabilities within the renewable energy sector.
The Numbers:
- Q3 FY26 vs Q3 FY25 (YoY): Total Income surged by 24% to ₹1,238 Cr. EBITDA witnessed an impressive 39% increase, reaching ₹313 Cr. Profit Before Tax (PBT) grew by 62% to ₹209 Cr, and Profit After Tax (PAT) rose by 14% to ₹127 Cr. Cash Profit After Tax (Cash PAT) demonstrated substantial growth of 38%, amounting to ₹262 Cr. Project execution also saw a healthy uptick of 33% to 252 MW. However, the order book saw a marginal 3% decline YoY, standing at 3,185 MW.
- Q3 FY26 vs Q2 FY26 (QoQ): Quarter-on-quarter, Total Income increased by 6.5% to ₹1,238 Cr, and EBITDA grew by a stronger 15.5% to ₹313 Cr. PAT saw a 5% increase to ₹127 Cr.
- Nine Months Ended FY26 (9M FY26 vs 9M FY25 - YoY): The nine-month period recorded significant growth, with Total Income up 36% to ₹3,263 Cr and EBITDA up 42% to ₹804 Cr. PAT for the period increased by 39% to ₹345 Cr, with Cash PAT surging 66% to ₹668 Cr.
Note: Figures for Q3 FY25 and 9M FY25 have been restated post-merger of IWEL into IWL. Prior period EBITDA calculations exclude a one-time ECL provision write-back of ₹62.37 Cr.
The Quality & Margins:
EBITDA margins show improvement. In Q3 FY26, the EBITDA margin stood at approximately 25.3% (₹313 Cr / ₹1,238 Cr), up from an adjusted ~22.7% in Q3 FY25. The significant increase in Cash PAT relative to PAT indicates strong operational cash generation. The company reported a net debt of ₹222 Cr as of 9M FY26, coupled with a net worth of ₹705 Cr, suggesting a manageable leverage position.
Guidance & Growth Drivers:
Management has provided an optimistic outlook, guiding for FY26 revenue to exceed ₹5,000 Cr (representing over 35% YoY growth) with an EBITDAM target of 20-22%. For FY27, revenue is projected for +75% YoY growth, maintaining the EBITDAM band. Key growth drivers include the ramp-up of new manufacturing facilities for nacelles, hubs, transformers, and cranes, alongside establishing a new blade and tower unit in Karnataka. The commercial launch of advanced 4X MW turbines within CY26 is poised to be a significant catalyst. Strategic consolidation of Inox Green’s O&M portfolio and securing long-term recurring orders are also central to the strategy.
🚩 Risks & Outlook:
While performance is strong, the marginal year-on-year dip in the order book warrants monitoring to ensure sustained order inflow. The successful execution of new plant expansions and the timely commercialization of the 4X MW turbines will be critical. The ongoing demerger scheme involving Inox Green and Inox Renewable Solutions is in its final regulatory stages, requiring continued observation for any potential delays or impacts. The company's outlook remains robust, leveraging India's favorable wind sector policies and multi-decadal growth phase. Investors should watch the order book replenishment and the ramp-up of new manufacturing capacities in the coming quarters.