INDOWIND - Indowind Energy

📊 NSE: INDOWIND 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 8:03

💰 Financial Performance

Revenue Growth by Segment

For FY 2024-25, standalone revenue declined 18% to INR 22.36 Cr. The Tamil Nadu segment saw a significant drop to INR 11.69 Cr (down from INR 17.25 Cr), while the Karnataka segment grew 5.8% to INR 10.66 Cr. In H1 FY26, consolidated revenue grew 25.81% YoY to INR 29.29 Cr.

Geographic Revenue Split

Based on FY 2024-25 consolidated revenue of INR 33.51 Cr, Tamil Nadu operations contributed INR 21.59 Cr (64.4%) and Karnataka operations contributed INR 11.91 Cr (35.6%).

Profitability Margins

Net profit for Q2 FY26 was INR 4.7 Cr, representing a 3.62% YoY increase. For H1 FY26, net profit reached INR 7.15 Cr, an improvement of 17.16% YoY. The net profit margin for H1 FY26 stands at approximately 24.41%.

EBITDA Margin

EBITDA margin for Q2 FY26 improved to 59.32% compared to 57.21% in the previous year. EBITDA for H1 FY26 increased 30.88% YoY to INR 15.73 Cr, driven by disciplined cost control and better machine availability.

Capital Expenditure

The company successfully raised INR 49.43 Cr through a rights issue of 3,22,00,434 equity shares at INR 15.35 per share to fund expansion. Planned CAPEX includes adding 25 MW of Wind and 25 MW of Solar projects.

Credit Rating & Borrowing

The company is currently debt-free. Management indicates that while they are looking at borrowings for expansion, they expect interest rates from bankers to be in the 8%-9% range for projects yielding a 15% plus IRR.

⚙️ Operational Drivers

Raw Materials

The primary 'raw material' is wind velocity (natural resource), which is seasonal and unpredictable. Land is the secondary critical input, with the company maintaining a 'huge land bank' for asset placement.

Import Sources

Not applicable as the primary input is wind velocity harvested at site locations in Tamil Nadu (Nettur, Aralvoimozhi) and Karnataka (Gadag, Chitradurga).

Key Suppliers

Not disclosed in available documents; however, the company manages its own Operations & Maintenance (O&M) to improve machine availability.

Capacity Expansion

The company plans to add 25 MW of Wind and 25 MW of Solar capacity. The medium-term target is to double the current capacity within three years.

Raw Material Costs

Raw material costs are negligible as a percentage of revenue due to the nature of wind power; however, operational efficiency is impacted by wind availability, which caused an 18% revenue decline in FY25.

Manufacturing Efficiency

Efficiency is measured by machine availability and asset offtake. H1 FY26 performance was bolstered by 'better machine availability' and 'favorable wind conditions.'

Logistics & Distribution

Distribution is handled through state grids (TANGEDCO/BESCOM). The company faces competitive pressure and increased wheeling/banking charges from these entities.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved by doubling capacity through the addition of 25 MW Wind and 25 MW Solar projects, pursuing inorganic growth opportunities, and transitioning to a hybrid model in Tamil Nadu. The company is utilizing INR 49.43 Cr from a rights issue to fund these initiatives.

Products & Services

Reliable green power (electricity) generated from wind energy generators and upcoming solar installations sold to corporates and state electricity boards.

Brand Portfolio

INDOWIND

New Products/Services

Expansion into Solar power and Hybrid (Wind-Solar) energy projects to complement existing wind assets, with a 4 MW solar project starting in Karnataka.

Market Expansion

Focusing on expanding the portfolio in Tamil Nadu and Karnataka, leveraging existing land banks for new 25 MW Wind and 25 MW Solar capacities.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward hybrid wind-solar models and increased corporate demand for clean power. The sector is currently 'constructive and supportive' for renewable expansion.

Competitive Landscape

Faces competitive pressure on pricing from other Independent Power Producers (IPPs) and regulatory hurdles from state-owned distribution companies.

Competitive Moat

The company's moat consists of a 30-year operating history, a debt-free balance sheet, and a 'huge land bank' with hidden value that exceeds its current market capitalization. These are sustainable due to the high entry barriers of land acquisition in wind-rich areas.

Macro Economic Sensitivity

Highly sensitive to environmental factors (wind velocity) and government policies regarding renewable energy subsidies and wheeling charges.

Consumer Behavior

Increasing demand from corporate clients for stable, clean power to meet sustainability goals.

Geopolitical Risks

Minimal direct impact, though global shifts toward renewable energy support the company's long-term strategy.

⚖️ Regulatory & Governance

Industry Regulations

PPAs for wind energy generators (WEGs) older than 20-25 years are only being renewed for 5-year terms by TANGEDCO. There are also increasing charges imposed by state utilities like TANGEDCO.

Environmental Compliance

The company operates in the green energy sector; specific ESG compliance costs were not disclosed.

Legal Contingencies

The company reported no instances of fraud and no significant changes in internal controls or accounting policies for the year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Seasonal wind unpredictability is the primary risk, which can cause double-digit revenue fluctuations (e.g., 18% decline in FY25). PPA renewal terms for aging assets also present uncertainty.