Inox Wind Soars: Q2 FY26 Performance and Future Growth Trajectory

Inox Wind Limited, a prominent player in India's renewable energy sector, has reported its strongest ever second-quarter financial and operational performance for Q2 FY26. The company, a key part of the multi-billion-dollar INOXGFL Group, showcased robust growth across all key metrics, signaling a strong trajectory amidst India's accelerating energy transition. For the quarter ended September 30, 2025, Inox Wind's consolidated revenue surged by an impressive 56% year-on-year, reaching Rs. 1,162 crore. This significant top-line growth was complemented by a 48% increase in Consolidated EBITDA, which stood at Rs. 271 crore. Profit Before Tax (PBT) saw a remarkable 93% jump to Rs. 169 crore, while Profit After Tax (PAT) grew by 43% to Rs. 121 crore. Notably, Cash PAT, a crucial indicator of operational cash generation, soared by 66% year-on-year to Rs. 220 crore, despite a non-cash deferred tax charge of Rs. 43 crore.

Operationally, Inox Wind executed 202 MW in Q2 FY26, contributing to a total of approximately 350 MW in the first half of the fiscal year. This performance keeps the company firmly on track to achieve its full-year execution guidance of 1.2 GW, with management anticipating that the second half will account for roughly 70% of the annual execution. The company's order book remains robust and well-diversified, currently standing at over 3.2 GW, which provides strong revenue visibility for the next 18-24 months. In FY26, Inox Wind has already secured approximately 400 MW of new orders from a mix of new and existing customers, including major players like NTPC, CESC, NLC India, and Hero Future Energies. This diversified customer base and strong order pipeline underscore the company's competitive positioning and market confidence.

Strategic Growth and Value Creation

Inox Wind is strategically pivoting to secure long-term recurring orders through partnerships and framework agreements, aiming for over 1 GW of annual recurring orders. This includes a significant portion from the group's Independent Power Producer (IPP), which targets over 3 GW of annual hybrid renewable capacity installations. This move is expected to provide stable revenue streams and enhance execution visibility. The company's balance sheet reflects this strength, reporting a net cash position of Rs. 222 crore as of September 2025-end, following a merger with IWEL, rights issue, and equity raise.

Subsidiary Inox Green Energy Services Ltd. (IGESL) is playing a pivotal role in the group's growth, having expanded its O&M portfolio to approximately 12.5 GW through strategic investments, including the acquisition of 6.5 GW of wind O&M assets. This positions IGESL to become India's largest renewable O&M company, with an ambitious target of 17 GW within the next two years. Furthermore, a scheme for the demerger of the substation business from Inox Green and its subsequent merger into Inox Renewable Solutions has received shareholder and creditor approvals. This initiative is expected to unlock substantial value for both Inox Wind and Inox Green by improving profitability and enhancing ROE and ROCE for IGESL, as it will eliminate approximately Rs. 1,000 crore gross block and reduce annual depreciation by Rs. 50-55 crore upon NCLT approval.

Expanding Manufacturing Footprint and Product Offerings

Inox Wind is actively ramping up its manufacturing operations to meet the growing demand. The new nacelle and hub manufacturing plant in Kalyangarh, Ahmedabad, Gujarat, is fully operational and is future-ready for the upcoming 4X MW turbines. The transformer manufacturing facility in Rajasthan is also operating at high utilization. To further strengthen its presence in South India, Inox Wind is establishing a new blade and tower manufacturing unit in Karnataka on a 70-acre land parcel, with a total investment of approximately Rs. 400 crore. This unit is slated to be operationalized in 2026 and will create around 1000 direct jobs, providing quicker access to large project sites in Karnataka, Andhra Pradesh, and Tamil Nadu.

The company is also on track for the commercial launch and order intake of its latest offering, the 4X MW turbine, in the coming months. Developed under license from Wind2Energy, this globally proven turbine is specifically designed for low wind conditions prevalent in India, aiming to further reduce the Levelized Cost of Energy (LCoE) for customers. This technological advancement is crucial for maximizing energy generation efficiency in diverse wind regimes across the country. In a significant development, Inox Wind and KP Energy Limited recently announced an exclusive Memorandum of Understanding (MoU) to jointly develop 2.5 GW of wind and wind-solar hybrid power projects across multiple states in India. Under this partnership, Inox Wind will supply Wind Turbine Generators (WTGs) and provide engineering and O&M support for WTGs, while KP Energy will undertake project development, Balance of Plant (BoP) and other EPC works, and BoP O&M. This collaboration is set to leverage the complementary strengths of both organizations, enhancing project execution capabilities and contributing meaningfully to India's clean energy transition.

Favorable Macro Environment and Outlook

The Indian wind sector is experiencing a multi-decadal growth story, bolstered by a favorable policy and regulatory environment. India targets 122 GW of installed wind capacity by 2032, presenting a significant opportunity for wind OEMs and O&M service providers. Government initiatives, such as the reduction of GST on wind components from 12% to 5%, the notification of ALMM (Wind) mandating domestic sourcing of WTG components, and amendments to CERC regulations allowing hybridization of existing solar and wind transmission projects, are creating a conducive ecosystem for growth. The company's management expressed confidence in achieving its FY26 targets and maintaining its EBITDA margin guidance of 18-19%. The CAPEX guidance for FY26 is approximately Rs. 200 crore, reflecting planned investments in capacity expansion and technological upgrades. Inox Wind's integrated approach, strong order book, and strategic initiatives position it well to capitalize on India's burgeoning renewable energy market and deliver sustained growth and profitability.