INOX Wind reported a strong Q3 FY’26 with consolidated revenue increasing 24% Y-o-Y to INR 1,238 crores. Management shifted guidance focus from megawattage to financial figures due to business complexity, projecting over INR 5,000 crore in consolidated revenue for FY’26 (over 35% growth). INOX Green also posted significant growth, achieving EBITDA of INR 53 crores, and anticipates post-demerger EBITDA exceeding INR 600 crores in FY’27.
INOX Wind Q3 FY’26 Performance and Guidance Shift
On a consolidated basis, INOX Wind demonstrated robust performance for Q3 FY’26. The company achieved a revenue of INR 1,238 crores, marking a 24% Year-on-Year (Y-o-Y) increase. EBITDA, excluding a one-time gain from Q3 FY’25, rose by 39% Y-o-Y to INR 313 crores. Profit After Tax (PAT) grew by 14% Y-o-Y to INR 127 crores.
The company has maintained strong margins through backward integration into cranes and transformer manufacturing. The current order book stands at a well-diversified 3.2 GW, with expectations to close FY’26 on a strong note, providing 18-24 months of execution visibility. The launch of the new 4X, 4.45 MW turbine is expected later this calendar year.
Strategic Shift to Revenue-Based Guidance
Management announced a significant change in guidance methodology, moving from megawattage targets to financial metrics for FY’26 and FY’27. This shift addresses the increasing complexity in contracts, which now include varying scopes like plain supply, EPC, and turnkey solutions across over 25 sites and 15 customers.
- FY’26 Revenue Guidance: Expected to exceed INR 5,000 crore, translating to over 35% Y-o-Y growth.
- FY’26 EBITDA Margin Guidance: Substantially upgraded to 20%-22% (previously 18%-19%).
- FY’27 Guidance: Consolidated revenue projected to grow by around 75% over FY’26, with an EBITDA margin of 20%-22%.
The management clarified that this change is not due to execution challenges but rather to provide greater certainty, as profitability metrics are now the primary governance factor. H2 is anticipated to remain heavily weighted due to monsoon leanness in H1.
INOX Green O&M Business Update
The O&M subsidiary, INOX Green, continues its growth, reaching a portfolio of 13.3 GWp (10 GW wind and 3.3 GWp solar).
For Q3 FY’26, INOX Green reported: Total Income of INR 112 crores (up 51% Y-o-Y), EBITDA of INR 53 crores (up 80% Y-o-Y), and PAT of INR 25 crores (up 375% Y-o-Y). Machine availability averaged 96.5%.
The merger of the substation business into INOX Renewable Solutions is in final hearing stages at NCLT Ahmedabad. Post-merger, a gross block of INR 1,000 crores and associated depreciation of INR 50-55 crores will be eliminated from INOX Green’s balance sheet, improving profitability metrics (ROE/ROCE).
Post-demerger, INOX Green’s expected FY’27 EBITDA is guided to be upwards of INR 600 crores.
Working Capital and Receivables
The company is targeting a working capital cycle of 200 days by the end of the current financial year, aiming for 150 odd days by FY’27. This reflects the ramp-up phase; Q3 working capital days were in the range of 200-210 days. Receivable days are expected to continuously improve, aiming for approximately 120 odd days of overall networking capital by FY’27.
Outlook and Pipeline Visibility
The visibility for INOX Wind remains strong, with the existing 3.2 GW order book providing certainty for the next 1.5 to 2 years. Management indicated that additional order inflows are expected soon, potentially before the end of the current quarter, confirming that order booking is currently not a concern.
The management expressed a highly positive view on the overall wind sector, driven by increasing state-level activity and grid connectivity development, supporting the growth targets for both entities.
Source: BSE
