Inox Wind Navigates Growth with Strategic Shifts and Strong Q3 FY26 Performance

Inox Wind Limited, a prominent player in India's renewable energy sector, has reported a robust financial and operational performance for the third quarter of fiscal year 2026 (Q3 FY26). The company, part of the multi-billion-dollar INOXGFL Group, is strategically positioning itself to capitalize on India's burgeoning wind energy market. Despite facing certain on-ground challenges, Inox Wind delivered a strong quarter, marked by significant revenue growth and enhanced profitability, underscoring its resilience and strategic execution capabilities.

For Q3 FY26, Inox Wind reported a consolidated total income of INR 1,238 crore, a substantial 24% increase year-on-year. This growth was accompanied by a healthy consolidated EBITDA of INR 313 crore, which surged by 39% year-on-year, excluding one-time gains from the prior year. The company's EBITDA margin stood at an impressive 25.2%. Profit before tax (PBT) also saw a remarkable 62% year-on-year increase to INR 209 crore, while profit after tax (PAT) grew by 14% to INR 127 crore. Cash PAT, a key indicator of operational cash generation, rose by 38% to INR 262 crore, reflecting strong underlying business performance.

Operational Momentum and Strategic Shifts

Inox Wind's operational performance in Q3 FY26 was marked by the execution of 252 MW, contributing to a well-diversified order book of approximately 3.2 GW. This robust order book provides significant revenue visibility for the next 18-24 months. The company has successfully secured multiple orders totaling around 600 MW in FY26 from a diverse customer base, including prominent names like Aditya Birla, Amplus/Gentari, Jakson, First Energy, and Leap Green. This diversification across Public Sector Undertakings (PSUs), Independent Power Producers (IPPs), and Commercial & Industrial (C&I) customers mitigates concentration risks and ensures a steady pipeline of projects.

A notable strategic shift for Inox Wind has been its decision to move from megawattage-based guidance to financial guidance, focusing on revenue and EBITDA margins. Management explained that this change is driven by the increasing complexities of the business, where projects involve varying scopes—from plain equipment supply to limited-scope EPC and full end-to-end turnkey solutions. This variability makes a simple megawattage number less representative of the actual financial performance and profitability. By focusing on financial metrics, the company aims to provide more certainty and control over its guidance, adapting to the dynamic market environment.

The company is also on track to commercially launch its new 4X, 4.45 MW turbine within Calendar Year 2026. This advanced turbine is expected to enhance Inox Wind's product portfolio, enabling it to offer tailor-made wind solutions that meet evolving customer requirements for higher capacity and efficiency. This product innovation is crucial for maintaining a competitive edge in India's rapidly expanding renewable energy sector.

Financial Summary Table

Inox Green's Growth Trajectory and Group Synergies

Inox Green Energy Services Limited (IGESL), Inox Wind's O&M subsidiary, continues its strong growth trajectory. It now manages a portfolio of 13.3 GWp of renewable O&M assets, comprising approximately 10 GW of wind and 3.3 GWp of solar assets, diversified across 17 states in India. This positions Inox Green to become India's largest renewable O&M company, providing stable and recurring cash flows through long-term contracts.

A significant corporate restructuring is underway with the scheme of demerger of the substation business from Inox Green and its subsequent merger into Inox Renewable Solutions. This process is in its final stages of hearing at the Hon'ble NCLT Ahmedabad. Upon approval, this demerger is expected to eliminate approximately INR 1,000 crore of gross block and INR 50-55 crore of annual depreciation from Inox Green's balance sheet, leading to a substantial improvement in its profitability, Return on Equity (ROE), and Return on Capital Employed (ROCE).

The broader INOXGFL Group's strategic vision further enhances Inox Wind's prospects. Group company Inox Clean Energy has ambitious plans to set up 3 GW of hybrid renewable IPP projects annually. This provides significant recurring annual order visibility for Inox Wind and substantial portfolio additions for Inox Green, leveraging strong intra-group synergies. The group's integrated presence across the energy transition value chain, from manufacturing wind turbines and solar modules to EPC and O&M services, creates a powerful ecosystem for sustained growth.

Financial Outlook and Key Initiatives

Inox Wind has provided strong growth guidance for FY26 and FY27. For FY26, the company expects to achieve a consolidated revenue of over INR 5,000 crore, representing more than 35% year-on-year growth. The full-year FY26 EBITDA margin guidance has been upgraded to 20-22% from an earlier 18-19%, reflecting increased confidence in operational efficiencies and cost management. For FY27, the company projects consolidated revenue growth of approximately 75% over FY26, with EBITDA margins maintained at 20-22%. Inox Green's EBITDA for FY27 is guided to be upwards of INR 600 crore, driven by portfolio consolidation and organic growth.

To support this growth, Inox Wind is undertaking several key initiatives. These include ramping up new manufacturing facilities for nacelles, hubs, transformers, and crane services, as well as establishing a new blade and tower manufacturing unit in Karnataka. These backward integration efforts are aimed at enhancing manufacturing capacity, improving cost structures, and ensuring supply chain resilience. The company is also focused on optimizing its working capital cycle, targeting 200 days by FY26 end and further reducing it to around 150 days by FY27. Capital expenditure for both FY26 and FY27 is estimated at approximately INR 200 crore each, supporting these expansion and integration projects.

Inox Wind's Q3 FY26 performance demonstrates its ability to deliver strong financial results amidst a dynamic market. With a robust order book, strategic manufacturing expansions, and a clear focus on profitability and operational efficiency, the company is well-positioned to capitalize on India's significant renewable energy growth story. The integrated approach within the INOXGFL Group, coupled with product innovation and a strong O&M subsidiary, provides a solid foundation for sustained growth and value creation for its stakeholders.