Whalesbook
Financial Deep Dive
Inox Wind Limited and its subsidiary Inox Green Energy Services Limited have both posted impressive financial results for the third quarter and nine months ended December 31, 2025 (Q3 FY26).
Inox Wind (Consolidated) demonstrated robust year-on-year (YoY) growth, with revenue climbing 24% to INR 1,238 crores. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw an even more significant jump of 39% to INR 313 crores, excluding a one-time gain from the previous year. Profit Before Tax (PBT) also rose substantially by 62% to INR 209 crores, and Profit After Tax (PAT) increased by 14% to INR 127 crores. The company's cash profit grew by 38% YoY.
Inox Green Energy Services Limited also showed strong momentum. Its total income surged by 51% YoY to INR 112 crores. EBITDA more than doubled, rising 80% YoY to INR 53 crores. The company's profitability saw an even more dramatic improvement, with PAT soaring 375% YoY to INR 25 crores. Cash-back figures also jumped 116% YoY to INR 51 crores, reflecting strong operational performance with machine availability averaging 96.5% across its portfolio.
Outlook & Strategy: A New Guidance Approach
A key strategic development announced during the earnings call was a significant shift in how Inox Wind will provide guidance. Moving away from megawatt (MW) figures, the company will now provide guidance based on consolidated revenue and EBITDA margin percentages for FY26 and FY27. Management cited increased business complexity, customer site readiness issues impacting turbine offtake, and varying service scopes as reasons for this change, aiming to offer greater certainty for investors.
For FY26, Inox Wind now expects consolidated revenue to exceed INR 5,000 crores, a growth of over 35% YoY. More notably, its EBITDA margin guidance has been upgraded to 20-22%, from the previous 18-19% forecast. For FY27, consolidated revenue is projected to grow by approximately 75% over FY26, with EBITDA margins expected to remain in the 20-22% range.
Inox Green aims for an EBITDA upwards of INR 600 crores by FY27. The company is expanding its wind and solar Operations & Maintenance (O&M) portfolio to 13.3 GWp and is nearing the completion of acquisitions for 6.5 GW of operational wind O&M assets. The demerger of its substation business is also in its final stages.
Synergies within the Inox group are also a focus, with Inox Clean Energy planning to set up 3 GW of Hybrid Renewable Independent Power Producer (IPP) projects annually, which will provide recurring orders for Inox Wind and portfolio additions for Inox Green.
Financial Deep Dive & Risks
Inox Wind's order book stands at a healthy 3.2 GW, with approximately 600 MW added this financial year from major customers. However, the company is currently managing high working capital days, around 200-210 days, with a target to reduce this to around 150 days by FY27. Management attributed the current levels to the ongoing ramp-up phase. The company stated it was net cash positive in the first half of FY26. Capex is budgeted at approximately INR 200 crores for FY26 and FY27.
Risks: While the financial performance is strong, potential risks include delays in customer site readiness, which impact turbine offtake for equipment supply projects. This is acknowledged as an industry-wide challenge. The high working capital days are also a point to monitor as the company aims to bring them down.
Negative History: In November 2025, Inox Wind received an administrative warning from the Securities and Exchange Board of India (SEBI) for failing to close its trading window following a corporate announcement about a 153 MW order. The company stated there was no financial impact and committed to improving compliance, but this highlights a past governance lapse.
Comparative Lens & Big Picture
The Indian wind energy sector is experiencing a revival, driven by supportive government policies and increasing demand from corporations. The government targets 122 GW of installed wind capacity by FY32, a significant increase from the current levels. This positive sector outlook benefits companies like Inox Wind and Inox Green.
Competitors such as Suzlon Energy are also showing strong performance. Suzlon reported a 42% YoY revenue increase and a record order book in Q3 FY26. This indicates a competitive landscape where execution and order book management are crucial. Vestas Wind Technology India also reported revenues, highlighting the presence of global players.
Inox Wind's focus on backward integration and the launch of its new 4.45 MW turbine, coupled with Inox Green's expansion in O&M and acquisitions, positions them to capitalize on the sector's growth. The strategic shift in guidance methodology is a positive step towards greater transparency and investor confidence.