Inox Wind Q3: Standalone EBITDA Plummets 54%, SPV Investment Risk Looms

RENEWABLES
Whalesbook Logo
AuthorSatyam Jha|Published at:
Inox Wind Q3: Standalone EBITDA Plummets 54%, SPV Investment Risk Looms
Overview

Inox Wind reported a mixed Q3 FY26. Standalone revenue grew 16.55% YoY to ₹1,081.92 Cr and PAT surged 115.65% to ₹126.33 Cr. However, standalone EBITDA plummeted 54.06% YoY to ₹191.08 Cr. Consolidated revenue rose 32.51% to ₹1,207.45 Cr and PAT increased 14.12% to ₹126.65 Cr, with consolidated EBITDA up 8.55%. Significant concerns emerge over ₹55.78 Cr invested in SPVs facing project completion issues and invoked guarantees. No forward guidance was provided.

📉 The Financial Deep Dive

The Numbers:
Inox Wind Limited has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

  • Standalone Performance:

    • Revenue from Operations stood at ₹1,081.92 Cr for Q3 FY26, marking a healthy YoY increase of 16.55% from ₹928.28 Cr in Q3 FY25 and a QoQ rise of 14.20% from ₹947.42 Cr in Q2 FY26.
    • Profit After Tax (PAT) saw a significant surge, growing by 115.65% YoY to ₹126.33 Cr from ₹58.58 Cr in Q3 FY25. However, QoQ PAT decreased by 48.82% from ₹246.88 Cr in Q2 FY26.
    • EBITDA (without exceptional items) experienced a drastic decline, falling 54.06% YoY to ₹191.08 Cr from ₹415.92 Cr in Q3 FY25. QoQ, EBITDA decreased by 75.06% from ₹765.58 Cr in Q2 FY26.

  • Consolidated Performance:

    • Consolidated Revenue from Operations increased by 32.51% YoY to ₹1,207.45 Cr from ₹911.27 Cr in Q3 FY25. QoQ revenue grew 7.89% to ₹1,119.18 Cr.
    • Consolidated PAT rose 14.12% YoY to ₹126.65 Cr from ₹110.98 Cr in Q3 FY25. QoQ PAT saw a marginal increase of 4.99% from ₹120.62 Cr.
    • Consolidated EBITDA (including discontinued operations & without exceptional items) grew 8.55% YoY to ₹312.59 Cr from ₹287.97 Cr in Q3 FY25. QoQ EBITDA increased by 15.34%.

The Quality:
The results present a divergence: while consolidated figures showcase growth, the standalone EBITDA performance is concerning, dropping sharply. The prior year's standalone PAT was impacted by an exceptional item of ₹13.46 Cr (provision for doubtful ICD), which is absent in the current quarter. Revenue from operations and maintenance (O&M) is recognized over the contract period on a straight-line basis. A significant portion of consolidated work-in-progress inventory (₹170.37 Cr) relates to project development, erection, and commissioning, the realization of which is contingent on future state government policy announcements.

The Grill:
While no direct analyst call transcript is available, the stark drop in standalone EBITDA and the significant SPV investment risk would undoubtedly be key areas of scrutiny. Management provided no forward-looking guidance or detailed strategic commentary in this results announcement.

🚩 Risks & Outlook

Specific Risks:

  • SPV Investment Risk: A major red flag is the ₹55.78 Cr invested by Inox Wind Limited via inter-corporate deposits and bank guarantees into 6 wholly-owned step-down subsidiaries (SPVs) for wind farm projects. The SPVs have encountered critical issues: expired project completion dates, rejection of extension applications, and invoked bank guarantees. An appeal to retain connectivity was also rejected. Inox Wind has indicated it will bear costs if IGESL cannot recover funds from these SPVs, presenting a significant risk of write-offs or contingent liabilities. An appeal to APTEL is pending.
  • Pending Litigation: Auditors have drawn attention to pending litigation matters. Management expressed confidence in successful appeals, expecting no material impact on the financial statements.
  • New Labour Codes: The company is assessing the impact of new labour codes, with supporting rules yet to be notified.

The Forward View:
No explicit future outlook or financial targets were provided by the management. The realization of inventory remains dependent on future policy announcements, adding a layer of uncertainty to upcoming quarters. Investors should closely monitor the outcome of the APTEL appeal concerning the SPV investments.

Note: Analyst EPS estimates were not available in this filing.

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.