💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 105% YoY in FY25 to INR 3,701.55 Cr. In Q2 FY26, consolidated revenue reached INR 1,162 Cr, a 56% YoY increase. The O&M segment (Inox Green) saw a 101% YoY revenue increase to INR 129.5 Cr in Q2 FY26, driven by portfolio expansion to 12.5 GW.

Geographic Revenue Split

Primarily India-based operations. Global wind installations reached 117 GW in 2024, with China dominating at 68%. IWL is positioning to capture growth in the Indian market which is benefiting from favorable policies like ALMM and ISTS connectivity amendments.

Profitability Margins

Net Profit Margin improved significantly to 11.00% in FY25 from -15.00% in FY24 due to operational efficiencies. Q2 FY26 Profit After Tax (PAT) was INR 121 Cr, up 43% YoY, while Profit Before Tax (PBT) rose 93% YoY to INR 169 Cr.

EBITDA Margin

Operating Profit Margin stood at 17.34% in FY25, a 110.69% improvement YoY. Q2 FY26 EBITDA was INR 271 Cr (approx. 23.3% margin), up 48% YoY, reflecting better absorption of fixed costs through higher execution volumes.

Capital Expenditure

The company raised INR 1,250 Cr through a rights issue and INR 900 Cr via NCRPS to strengthen the balance sheet. Subsidiary IGESL raised INR 1,050 Cr for O&M acquisitions, including a 6.5 GW wind asset portfolio.

Credit Rating & Borrowing

The company maintains a focus on debt reduction, evidenced by a 46.57% decrease in the Debt-Equity ratio to 0.24x in FY25 following a merger that reduced liabilities by INR 2,050 Cr. Interest coverage ratio improved 414% to 0.62x.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, aluminum, and fiber composites used in the manufacturing of nacelles, hubs, rotor blades, and towers.

Import Sources

Not explicitly disclosed, though the company monitors global supply chain disruptions and trade barriers affecting project economics.

Capacity Expansion

FY25 execution increased 88% to 705 MW. H1 FY26 execution reached 350 MW (202 MW in Q2), with management targeting H2 to represent 70% of annual execution. The O&M portfolio expanded to 12.5 GW.

Raw Material Costs

Input price volatility in steel and aluminum is noted as a risk that can impact profitability margins. Procurement strategies include tracking regulatory changes and maintaining a comprehensive risk mitigation framework.

Manufacturing Efficiency

Inventory turnover ratio improved 83% to 2.43x in FY25, indicating faster movement of turbine components and commissioning schedules.

📈 Strategic Growth

Expected Growth Rate

65-70%

Growth Strategy

Growth will be driven by the execution of a 3.2 GW order book (valued at INR 22,433.84 Cr), the launch of technologically advanced 4.X MW WTGs, and the expansion of the O&M portfolio to 12.5 GW. The company is also pivoting toward long-term framework agreements with IPPs for recurring order visibility.

Products & Services

Wind Turbine Generators (WTGs), Erection, Procurement & Commissioning (EPC) services, Operations & Maintenance (O&M) services, and common infrastructure facility services.

Brand Portfolio

Inox Wind, Inox Green Energy Services (IGESL), Inox Renewable Solutions (IRSL).

New Products/Services

Secured license for 4.X MW WTGs to enhance competitiveness. Expanded EPC scope to include solar, hybrid RE EPC, and crane services.

Market Expansion

Strategic entry into solar and hybrid project management through Inox Green and Inox Renewable Solutions to provide an integrated renewable energy platform.

Market Share & Ranking

Identified as the second largest wind OEM in India with one of the largest promoter holdings in the listed wind space.

Strategic Alliances

Finalizing multiple framework agreements with major IPPs and utilities. Current marquee clients include NTPC, CESC, NLC India, and Hero Future Energies.

🌍 External Factors

Industry Trends

The Indian wind sector is in a multi-decadal growth phase boosted by a favorable regulatory environment, including ALMM for wind and GST reduction on components from 12% to 5%.

Competitive Landscape

Competes with other wind OEMs; maintains edge through end-to-end solutions (manufacturing to O&M) and a large, diversified order book.

Competitive Moat

Sustainable advantages include a massive 12.5 GW O&M portfolio providing recurring high-margin revenue, deep integration within the INOXGFL Group, and a 90-year group legacy.

Macro Economic Sensitivity

Sensitive to interest rate changes and inflation which impact project IRR for customers and borrowing costs for the company.

Consumer Behavior

Shift toward hybrid (wind-solar) projects and round-the-clock (RTC) renewable energy requirements from utilities and IPPs.

Geopolitical Risks

Trade barriers and protectionist policies are identified as threats to the global wind sector expansion.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with ALMM (Approved List of Models and Manufacturers) for wind and CERC connectivity/GNA regulations for ISTS.

Environmental Compliance

ESG practices independently assured by EY; participated in S&P’s CSA 2024.

Taxation Policy Impact

Benefiting from the reduction of GST on wind components from 12% to 5%, which improves project economics for clients.

Legal Contingencies

The scheme of demerger for the substation business has received shareholder and creditor approval and is awaiting final statutory approvals.

⚠️ Risk Analysis

Key Uncertainties

Execution delays due to monsoon or land/transmission issues could impact annual guidance, as H2 is expected to carry 70% of the workload.

Geographic Concentration Risk

Concentrated in the Indian market, specifically in wind-resource-rich states for project execution.

Third Party Dependencies

Dependence on external suppliers for specialized components like fiber composites and steel.

Technology Obsolescence Risk

Mitigated by the transition to higher capacity 4.X MW turbine platforms.

Credit & Counterparty Risk

Elongated receivable cycles and high working capital intensity (80%+ utilization) pose liquidity risks if payments from customers are delayed.