💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 139.2% YoY, rising from INR 729.92 Cr in FY23 to INR 1,746.30 Cr in FY24. This growth was driven by the manufacture and sale of Wind Turbine Generators (WTGs) and increased execution in wind farm development services.

Geographic Revenue Split

100% of operations are located within India, focusing on wind-rich states for WTG installation and O&M services. No international revenue was reported in the available documents.

Profitability Margins

Net loss margin improved significantly from a loss of 96.7% in FY23 (INR 705.82 Cr loss) to a loss of 5.2% in FY24 (INR 91.25 Cr loss). The improvement is due to a 139% surge in revenue and a 26.6% reduction in finance costs.

EBITDA Margin

Operating profit before working capital changes turned positive at INR 266.68 Cr in FY24 (15.3% margin) compared to a loss of INR 220.55 Cr in FY23, reflecting better absorption of fixed costs through higher scale.

Capital Expenditure

Historical capital expenditure for FY24 was INR 538.14 Cr, primarily for property, plant, and equipment and capital work-in-progress, representing a 38.7% increase over the INR 387.93 Cr spent in FY23.

Credit Rating & Borrowing

Total borrowings stood at INR 2,066.83 Cr as of March 31, 2024. Finance costs decreased by 26.6% YoY to INR 239.93 Cr, suggesting a reduction in high-cost debt or improved borrowing terms following the group's deleveraging efforts.

⚙️ Operational Drivers

Raw Materials

Wind Turbine Generator (WTG) components and materials represent 59.4% of total revenue, amounting to INR 1,037.94 Cr in FY24.

Capacity Expansion

Capital work-in-progress and intangible assets under development increased by 86.6% to INR 304.05 Cr in FY24 from INR 162.95 Cr in FY23, indicating significant ongoing expansion in wind farm infrastructure.

Raw Material Costs

Raw material costs as a percentage of revenue decreased from 70.1% in FY23 to 59.4% in FY24. Total material consumption increased 102.9% YoY to INR 1,037.94 Cr to support the 139% revenue growth.

Manufacturing Efficiency

Manufacturing efficiency improved as evidenced by the shift from an operating loss to an operating profit of INR 266.68 Cr, driven by higher capacity utilization of WTG production facilities.

Logistics & Distribution

EPC, O&M, and site development expenses (which include logistics and distribution to wind farm sites) rose 22.8% to INR 186.31 Cr in FY24.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through the NCLT-approved merger with Inox Wind Ltd (IWL), which will reduce liabilities by ~INR 2,050 Cr and eliminate the holding company structure. This consolidation aims to capture synergies in the wind business vertical, streamline regulatory compliance, and provide promoters with a direct holding in the operating entity.

Products & Services

Wind Turbine Generators (WTGs), Wind Energy Generation, Operations and Maintenance (O&M) services, Wind Farm Development services, and Common Infrastructure Facilities.

Brand Portfolio

Inox Wind, Inox Green Energy Services, Resco Global Wind Services.

New Products/Services

The company is focusing on the development of new WTG models and common infrastructure facilities to support larger-scale wind farms, though specific revenue contribution percentages for new models were not disclosed.

Market Expansion

The company is expanding its wind farm development services across India, targeting a simplified business structure post-merger to accelerate project execution.

Strategic Alliances

The company operates through key subsidiaries including Inox Green Energy Services Limited and Resco Global Wind Services Private Limited to provide specialized O&M and EPC services.

🌍 External Factors

Industry Trends

The industry is shifting toward consolidated, debt-free structures to improve execution capabilities. The INOXGFL Group is positioning itself by removing the holding company layer to improve financial transparency and resource utilization.

Competitive Landscape

The company competes in the Indian wind energy sector against other WTG manufacturers and EPC providers, focusing on a leaner balance sheet post-merger to gain a competitive edge.

Competitive Moat

The company's moat is built on its integrated service model (WTG manufacturing + O&M + Infrastructure). This is sustainable because it creates high switching costs for customers who rely on Inox for long-term O&M services.

Macro Economic Sensitivity

The business is highly sensitive to interest rate fluctuations due to INR 2,066.83 Cr in total debt; a 1% increase in rates could impact pre-tax profits by approximately INR 20.67 Cr.

Consumer Behavior

Increased demand from corporate and government entities for renewable energy to meet ESG goals is driving the order book for WTGs and O&M services.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and Indian Accounting Standards (Ind AS). The company must comply with Section 128(5) regarding the preservation of books and audit trails for 8 years.

Taxation Policy Impact

The company incurred a current tax expense of INR 43.10 Cr in FY24, despite a consolidated loss, likely due to taxable profits in specific subsidiaries or MAT requirements.

Legal Contingencies

The company received NCLT approval for its merger scheme on June 10, 2025. There is a noted non-compliance regarding the 'audit trail' (edit log) feature in accounting software for subsidiaries Inox Green Energy and Resco Global during FY24.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful integration and realization of the INR 2,050 Cr debt reduction following the merger with Inox Wind Ltd.

Geographic Concentration Risk

100% of revenue is concentrated in the Indian market, making the company vulnerable to changes in Indian renewable energy policies or grid infrastructure delays.

Third Party Dependencies

The company relies on other auditors for the financial statements of certain subsidiaries, such as Resowi Energy Private Limited, which holds assets of INR 9.00 Lakhs.

Technology Obsolescence Risk

The company faces risks if it fails to upgrade WTG technology to higher capacities (e.g., 3MW+), which are becoming the industry standard.

Credit & Counterparty Risk

Allowance for expected credit losses was INR 215.76 Cr in FY24, indicating significant risk regarding the collectability of receivables from wind power purchasers.