INOX Wind and Inox Green Energy Services held their Q4 FY’26 earnings conference call on May 29, 2026. Key discussions focused on financial performance, strategic pivots towards equipment supply, growth in renewable energy capacity, and future outlook. The company reported consolidated revenue of INR1,306 crores for Inox Wind and highlighted a strong EBITDA of INR57 crores for Inox Green. The call also addressed ongoing industry challenges and future growth drivers.
Q4 FY’26 Earnings Call Recap
The conference call for Inox Wind and Inox Green Energy Services Limited, held on May 29, 2026, provided insights into the companies’ performance and strategic direction for the fourth quarter of the financial year 2026. The management team, including key executives from INOXGFL Group, Inox Wind, and Inox Green, discussed the financial results, operational achievements, and future plans.
Financial Performance Highlights
Inox Wind
On a consolidated basis, Inox Wind reported a revenue of INR1,306 crores for the quarter, remaining flat year-on-year. The company achieved an EBITDA of INR333 crores, with a Profit Before Tax (PBT) of INR216 crores and Profit After Tax (PAT) of INR106 crores. Cash profit stood at INR268 crores. Despite geopolitical challenges impacting project execution, the company maintained strong margins through various strategic initiatives.
Inox Green Energy Services
Inox Green reported a total income of INR120 crores in Q4 FY’26, marking a 40% year-on-year increase. EBITDA saw a significant jump of 93% to INR57 crores. Profit Before Tax increased by 244% to INR46 crores, and Profit After Tax rose by 340% to INR28 crores. Cash PAT grew by 327% to INR46 crores. Machine availability for the entire portfolio averaged 96.5%.
Strategic Direction and Growth Outlook
Shift to Equipment Supply
A key strategic shift discussed was Inox Wind’s transition from a predominantly turnkey EPC model to an equipment supply model. The company aims to have 75% to 80% of its order book in equipment supply, a significant change from 100% turnkey just 24 months prior. This pivot is expected to improve working capital cycles and generate higher liquidity by reducing risks associated with project execution delays and cost escalations.
Renewable Capacity Expansion
The company anticipates strong annual wind capacity addition of 8 to 10 GW over the next few years, driven by Round-the-Clock (RTC), Fixed-Duration Real-time Dispatch, and hybrid capacity additions. INOXGFL Group’s renewable business is positioned for multiyear growth, with Inox Clean Energy planning a capacity addition of 14 GW by FY’29. This expansion is expected to drive continuous order inflows across the group’s value chain.
Inox Green’s Role and Expansion
Inox Green’s O&M subsidiary continues its strong growth, managing over 13+ GWp of wind and solar portfolios. The company is projected to become one of the largest renewable O&M companies globally by 2030. The demerger of Inox Green’s evacuation infrastructure business into Inox Renewable Solutions was approved, eliminating approximately INR1,000 crores from Inox Green’s balance sheet and removing an annual depreciation of INR50-55 crores, thereby improving profitability.
Addressing Industry Challenges
Management acknowledged challenges such as geopolitical tensions, supply chain disruptions (particularly for ECS components), and commodity price increases. These factors impacted the quarter’s performance. However, the company expressed confidence in meeting its revenue guidance of a 70% to 75% increase for the current fiscal year, indicating that most issues are being resolved.
Future Outlook
The company reiterated its FY’27 EBITDA guidance to be upwards of INR600 crores for Inox Green. For Inox Wind, revenue is projected to grow by around 75% over FY’26, with an EBITDA margin of 20% to 20%. The introduction of a new 4.4-MW turbine is on track for commercial launch within the calendar year, expected to enhance market penetration and margins.
Q&A Session Insights
During the Q&A, management provided clarity on several points:
- Inox Green Acquisitions: The two strategic acquisitions for Inox Green are expected to contribute approximately 50% EBITDA margin each, driven by substations and evacuation systems.
- EPC vs. Equipment Supply: The shift to equipment supply is a strategic move to mitigate risk and improve working capital, not an exit from EPC. Inox Wind will continue to undertake EPC for its group company, Inox Clean, and select customers.
- Working Capital: The company is focused on improving its net working capital days, with progress expected to be reflected in upcoming financial results.
- Order Book: The current order book stands at 3.1 GW, with approximately 500 MW from Inox Clean yet to be executed.
- Revenue Guidance: The company is moving away from megawatt-specific guidance to revenue-driven targets, with a projected 75% growth for the next year.
- O&M Revenue Mix: O&M currently forms about 10% of the revenue mix for Inox Wind, expected to grow to 18% to 20% with acquisitions.
- Other Income: A significant portion of ‘other income’ relates to debt acquired for strategic acquisitions, with smaller contributions from value-added services and treasury income.
- Profitability: The company clarified that its core EBITDA margin remains around 50% on an annualized basis, with the recent figures being influenced by acquisition-related accounting.
- FY27 Guidance: The 75% growth guidance for FY27 is considered conservative, barring unforeseen global events.
- Inox Green Demerger: The demerger process is ongoing, with completion expected within the next 1-2 months, pending administrative approvals.
- Cash Deployment: For Inox Green, generated cash flow is expected to be used for further strategic acquisitions and potentially buybacks, with decisions to be made in the shareholders’ interest.
Source: BSE
