INOXGREEN - Inox Green

📊 NSE: INOXGREEN 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 8:07

💰 Financial Performance

Revenue Growth by Segment

Total income for Q2 FY26 reached INR 129.5 Cr, representing a 101% YoY growth from INR 64.4 Cr. For H1 FY26, total income was INR 227.3 Cr, up 91% YoY from INR 119.1 Cr. The single business segment of O&M services for WTGs and common infrastructure facilities contributes 100% of revenue.

Geographic Revenue Split

The company operates exclusively in India, which is considered a single geographical segment contributing 100% of the revenue.

Profitability Margins

Operating Profit Margin improved significantly to 35.10% in FY25 from 20.11% in FY24. Net Profit Margin rose to 18.81% in FY25 from 5.69% in FY24. For Q2 FY26, Profit After Tax (PAT) was INR 28.1 Cr, a 363% YoY increase from INR 6.1 Cr.

EBITDA Margin

EBITDA for Q2 FY26 was INR 52.2 Cr, up 52% YoY from INR 34.4 Cr. H1 FY26 EBITDA stood at INR 99.9 Cr, a 56% YoY increase. The EBITDA margin for H1 FY26 is approximately 43.9%, reflecting high core profitability from annuity-based O&M contracts.

Capital Expenditure

The company is transitioning to an asset-light model through the demerger of its substation business, which will eliminate a gross block of approximately INR 1,000 Cr from the balance sheet. Future growth is focused on inorganic acquisitions funded by a recent INR 1,050 Cr fundraise.

Credit Rating & Borrowing

CRISIL has assigned a 'Positive' outlook. The company has significantly deleveraged, with a Debt-Equity ratio of 0.06x in FY25 compared to 0.09x in FY24. Interest coverage ratio improved to 3.94x from 0.40x due to debt repayment and higher profitability.

⚙️ Operational Drivers

Raw Materials

As a service-oriented O&M provider, primary costs involve spare parts for Wind Turbine Generators (WTGs) and consumables. Specific percentage of total cost for each is not disclosed.

Key Suppliers

The company primarily services Wind Turbine Generators manufactured and supplied by its parent company, Inox Wind Limited (IWL).

Capacity Expansion

Current O&M portfolio stands at 12.5 GW, which includes the recent acquisition of 6.5 GW of operational wind assets. The company aims to capture a share of the 10 GW market of inactive or stressed O&M players.

Raw Material Costs

Inventory turnover decreased to 1.08x in FY25 from 2.14x in FY24 due to an increase in inventories, which correspondingly reduced the cost of consumption.

Manufacturing Efficiency

Maintained a high mission availability of 96.3% across the entire portfolio during Q2 FY26, ensuring stable revenue generation from O&M contracts.

📈 Strategic Growth

Expected Growth Rate

23.10%

Growth Strategy

Growth will be achieved through a mix of organic expansion (benefiting from Inox Wind's rapid execution) and inorganic acquisitions (targeting 10 GW of stressed O&M portfolios). The demerger of the substation business will eliminate INR 50-55 Cr in annual depreciation, directly boosting PAT and improving ROE/ROCE.

Products & Services

Long-term Operation and Maintenance (O&M) services for wind farm projects, including Wind Turbine Generators (WTGs) and common infrastructure facilities.

Brand Portfolio

Inox Green, Inox Wind, INOXGFL Group.

New Products/Services

Expansion into large-scale solar project O&M and O&M contracts for the group's IPP platform (Inox Clean Energy), which targets >3 GW of installed capacity.

Market Expansion

Targeting the takeover of O&M portfolios from large IPPs and developers who currently manage portfolios captively, as well as entering contracts where existing O&M agreements have expired.

Market Share & Ranking

Aims to become India's largest renewable O&M company in the near future, leveraging its current 12.5 GW portfolio.

Strategic Alliances

Strong operational and financial linkages with Inox Wind Limited (IWL) and the broader INOX-GFL Group, including common treasury and financial support.

🌍 External Factors

Industry Trends

The wind energy industry is evolving toward organized, large-scale O&M providers. IGESL is positioning itself to capture the 10 GW market currently held by inactive or stressed players.

Competitive Landscape

Exposed to intense competition from both domestic and foreign O&M service providers in a challenging business environment.

Competitive Moat

Durable advantages include an annuity-based revenue model with 30%+ margins, high machine availability (96%+), and strong parentage from the INOX-GFL group which provides financial and operational support.

Macro Economic Sensitivity

The company is a beneficiary of the multi-decadal growth story in the Indian wind sector, supported by domestic content requirements and energy transition goals.

Consumer Behavior

Customers are increasingly switching to strong, credible, and renowned Indian O&M service providers like Inox Green.

Geopolitical Risks

Beneficiary of domestic content requirements in the wind sector which protects local players from certain international competition.

⚖️ Regulatory & Governance

Industry Regulations

The company is undergoing a scheme of demerger for its substation business through the NCLT to create a cleaner, asset-light balance sheet.

Environmental Compliance

As a renewable energy services provider, the company is inherently aligned with ESG goals, though specific compliance costs are not disclosed.

Taxation Policy Impact

The company reported a PAT of INR 28.1 Cr against a PBT of INR 40.9 Cr for Q2 FY26, implying an effective tax rate. Cash PAT includes adjustments for deferred taxes.

Legal Contingencies

The scheme of demerger is currently pending final approval from the NCLT after receiving approvals from shareholders and creditors.

⚠️ Risk Analysis

Key Uncertainties

Working capital management is a key risk, with working capital days increasing to 1,454 days. Exposure to intense competition in the wind sector could impact margin sustainability.