Inox Green Energy Services: Q2 FY26 Performance and Strategic OutlookInox Green Energy Services Limited, a prominent player in India's renewable energy operations and maintenance (O&M) sector, has reported its best-ever quarterly financial performance for Q2 FY26. The company's consolidated total income surged by an impressive 101% year-on-year to Rs. 129.5 crore, reflecting robust operational growth and strategic initiatives. This strong revenue performance translated into a 52% increase in EBITDA, reaching Rs. 52.2 crore, while profit after tax (PAT) saw a remarkable 363% jump to Rs. 28.1 crore. Cash PAT also grew significantly by 121% to Rs. 50.9 crore, underscoring healthy cash generation. The company's machine availability for its O&M portfolio improved to 96.3% during the quarter, demonstrating continuous operational excellence. These results highlight Inox Green's successful execution of its growth strategy and its strengthening position in the rapidly expanding Indian renewable energy market.The company's strong financial results are underpinned by strategic expansions and operational efficiencies. A key driver of growth has been the completion of investments to acquire 6.5 GW of wind O&M assets, which has expanded Inox Green's total O&M portfolio to approximately 12.5 GW. This significant portfolio enhancement positions the company to become the largest Indian renewable O&M player, with the acquired assets expected to consolidate into the P&L in FY27, leading to a manifold increase in profitability. Furthermore, Inox Green is actively pursuing a demerger of its substation business, which has received approvals from shareholders and creditors. This move is anticipated to eliminate a gross block of around Rs. 1,000 crore from the balance sheet and remove Rs. 50-55 crore in annual depreciation, thereby substantially improving profitability, Return on Equity (ROE), and Return on Capital Employed (ROCE). The company's asset-light, growth-oriented annuity business model, characterized by long-term O&M contracts of 5-20 years, ensures reliable and stable cash flows.### Financial Highlights (Q2 FY26 vs. Q2 FY25) | Particulars (Rs cr) | Q2 FY26 | Q2 FY25 | YoY % ||---------------------|--------|--------|--------|| Total income | 129.5 | 64.4 | 101% || EBITDA | 52.2 | 34.4 | 52% || Profit before tax | 40.9 | 9.7 | 323% || Profit after tax | 28.1 | 6.1 | 363% || Cash PAT | 50.9 | 23.1 | 121% |### Strategic Growth and Market OpportunityInox Green's growth strategy is multi-pronged, focusing on both inorganic and organic opportunities. The company aims to capitalize on the increasing demand for O&M services from customers looking for credible Indian service providers. There are significant opportunities to take over O&M portfolios from large Independent Power Producers (IPPs) and developers who currently manage their assets captively. Additionally, Inox Green is targeting projects where existing contracts are expiring, providing avenues for new long-term agreements.Organically, the company benefits from the robust order book of its parent, Inox Wind Limited (IWL), which stands at approximately 3.1 GW, offering strong visibility for future O&M contracts. The group's strategic entry into solar energy also presents a substantial growth vertical, with Inox Green having an exclusive arrangement with Inox Solar to provide O&M services for projects where Inox Solar supplies modules. This diversification into solar and hybrid projects is crucial for expanding its portfolio beyond wind. The company is also exploring value-added services such as refurbishment, booster sales, and carbon credit trading to contribute meaningfully to its top line.### Digital Leadership and Favorable Macro EnvironmentInox Green is also investing in digital transformation to maintain its competitive edge. Initiatives include 24x7 centralized monitoring of assets, upgrading to SAP HANA, advanced SCADA analysis, and developing mobile-based O&M management tools. These efforts are geared towards predictive maintenance, enhancing efficiency, and improving overall asset performance.The broader Indian wind sector provides a highly favorable macro environment. India has ambitious targets, aiming for 122 GW of installed wind capacity from the current 53 GW, and a total renewable energy capacity of 596 GW by 2032. Government policies, such as the reduction of GST on wind components from 12% to 5%, the notification of ALMM (Wind) mandating domestic sourcing, and amendments to CERC regulations allowing hybridization of solar and wind projects, are all conducive to growth. The increasing focus on hybrid, Round-The-Clock (RTC), and Firm and Dispatchable Renewable Energy (FDRE) projects, which often include a significant proportion of wind capacity, further strengthens the demand for comprehensive O&M solutions. These projects offer higher Plant Load Factors (PLFs), increased grid utilization, and greater stability, making them attractive for power generation and O&M providers alike.### Outlook and Investor ConfidenceInox Green Energy Services Limited is demonstrating strategic clarity and disciplined execution, positioning itself for sustained growth and enhanced profitability. The management's confidence in achieving a 17 GW O&M portfolio within the next two years, and potentially overachieving it, reflects a strong forward-looking approach. The company's ability to deliver record financial performance while simultaneously executing significant strategic initiatives like asset acquisitions and business demergers underscores its robust management capabilities. With a strong foundation, synergistic group support, and a favorable market outlook, Inox Green is well-placed to continue its growth trajectory and create long-term value for its shareholders. The company's commitment to an asset-light model and digital innovation further reinforces investor confidence in its future prospects.
In Q2 FY26, Inox Green reported a total income of Rs. 129.5 crore (up 101% YoY), EBITDA of Rs. 52.2 crore (up 52% YoY), Profit After Tax (PAT) of Rs. 28.1 crore (up 363% YoY), and Cash PAT of Rs. 50.9 crore (up 121% YoY).
The company completed investments to acquire 6.5 GW of wind O&M assets, increasing its total O&M portfolio to approximately 12.5 GW. This expansion aims to make it the largest Indian RE O&M company.
The demerger of the substation business is expected to eliminate about Rs. 1,000 crore from the balance sheet and remove Rs. 50-55 crore in annual depreciation, leading to higher profitability, ROE, and ROCE for Inox Green.
Inox Green is pursuing organic growth through new long-term O&M contracts from Inox Wind's WTG sales and inorganic growth by acquiring O&M portfolios from other IPPs. It is also expanding into solar O&M through an exclusive arrangement with Inox Solar.
The Indian wind sector is projected for multi-decadal growth, with targets of 122 GW installed wind capacity by 2032. Favorable government policies and the rise of hybrid/RTC/FDRE projects are creating a conducive environment for growth.
The company is implementing 24x7 centralized monitoring of assets, upgrading to SAP HANA, utilizing SCADA analysis, and developing mobile-based O&M management tools to enhance operational efficiency and predictive maintenance.
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Inox Green Energy Services: Q2 FY26 Performance and Strategic OutlookInox Green Energy Services Limited, a prominent player in India's renewable energy operations and maintenance (O&M) sector, has reported its best-ever quarterly financial performance for Q2 FY26. The company's consolidated total income surged by an impressive 101% year-on-year to Rs. 129.5 crore, reflecting robust operational growth and strategic initiatives. This strong revenue performance translated into a 52% increase in EBITDA, reaching Rs. 52.2 crore, while profit after tax (PAT) saw a remarkable 363% jump to Rs. 28.1 crore. Cash PAT also grew significantly by 121% to Rs. 50.9 crore, underscoring healthy cash generation. The company's machine availability for its O&M portfolio improved to 96.3% during the quarter, demonstrating continuous operational excellence. These results highlight Inox Green's successful execution of its growth strategy and its strengthening position in the rapidly expanding Indian renewable energy market.The company's strong financial results are underpinned by strategic expansions and operational efficiencies. A key driver of growth has been the completion of investments to acquire 6.5 GW of wind O&M assets, which has expanded Inox Green's total O&M portfolio to approximately 12.5 GW. This significant portfolio enhancement positions the company to become the largest Indian renewable O&M player, with the acquired assets expected to consolidate into the P&L in FY27, leading to a manifold increase in profitability. Furthermore, Inox Green is actively pursuing a demerger of its substation business, which has received approvals from shareholders and creditors. This move is anticipated to eliminate a gross block of around Rs. 1,000 crore from the balance sheet and remove Rs. 50-55 crore in annual depreciation, thereby substantially improving profitability, Return on Equity (ROE), and Return on Capital Employed (ROCE). The company's asset-light, growth-oriented annuity business model, characterized by long-term O&M contracts of 5-20 years, ensures reliable and stable cash flows.### Financial Highlights (Q2 FY26 vs. Q2 FY25) | Particulars (Rs cr) | Q2 FY26 | Q2 FY25 | YoY % ||---------------------|--------|--------|--------|| Total income | 129.5 | 64.4 | 101% || EBITDA | 52.2 | 34.4 | 52% || Profit before tax | 40.9 | 9.7 | 323% || Profit after tax | 28.1 | 6.1 | 363% || Cash PAT | 50.9 | 23.1 | 121% |### Strategic Growth and Market OpportunityInox Green's growth strategy is multi-pronged, focusing on both inorganic and organic opportunities. The company aims to capitalize on the increasing demand for O&M services from customers looking for credible Indian service providers. There are significant opportunities to take over O&M portfolios from large Independent Power Producers (IPPs) and developers who currently manage their assets captively. Additionally, Inox Green is targeting projects where existing contracts are expiring, providing avenues for new long-term agreements.Organically, the company benefits from the robust order book of its parent, Inox Wind Limited (IWL), which stands at approximately 3.1 GW, offering strong visibility for future O&M contracts. The group's strategic entry into solar energy also presents a substantial growth vertical, with Inox Green having an exclusive arrangement with Inox Solar to provide O&M services for projects where Inox Solar supplies modules. This diversification into solar and hybrid projects is crucial for expanding its portfolio beyond wind. The company is also exploring value-added services such as refurbishment, booster sales, and carbon credit trading to contribute meaningfully to its top line.### Digital Leadership and Favorable Macro EnvironmentInox Green is also investing in digital transformation to maintain its competitive edge. Initiatives include 24x7 centralized monitoring of assets, upgrading to SAP HANA, advanced SCADA analysis, and developing mobile-based O&M management tools. These efforts are geared towards predictive maintenance, enhancing efficiency, and improving overall asset performance.The broader Indian wind sector provides a highly favorable macro environment. India has ambitious targets, aiming for 122 GW of installed wind capacity from the current 53 GW, and a total renewable energy capacity of 596 GW by 2032. Government policies, such as the reduction of GST on wind components from 12% to 5%, the notification of ALMM (Wind) mandating domestic sourcing, and amendments to CERC regulations allowing hybridization of solar and wind projects, are all conducive to growth. The increasing focus on hybrid, Round-The-Clock (RTC), and Firm and Dispatchable Renewable Energy (FDRE) projects, which often include a significant proportion of wind capacity, further strengthens the demand for comprehensive O&M solutions. These projects offer higher Plant Load Factors (PLFs), increased grid utilization, and greater stability, making them attractive for power generation and O&M providers alike.### Outlook and Investor ConfidenceInox Green Energy Services Limited is demonstrating strategic clarity and disciplined execution, positioning itself for sustained growth and enhanced profitability. The management's confidence in achieving a 17 GW O&M portfolio within the next two years, and potentially overachieving it, reflects a strong forward-looking approach. The company's ability to deliver record financial performance while simultaneously executing significant strategic initiatives like asset acquisitions and business demergers underscores its robust management capabilities. With a strong foundation, synergistic group support, and a favorable market outlook, Inox Green is well-placed to continue its growth trajectory and create long-term value for its shareholders. The company's commitment to an asset-light model and digital innovation further reinforces investor confidence in its future prospects.
