Indowind says 18 MW availability issue cut earnings by Rs 5 crore

For the period ended September 30, 2026, Indowind Energy Limited said inadequate machine availability at an 18 megawatt (MW) project operated by Suzlon Energy Limited reduced potential revenue and profit by close to Rs 5 crore. Indowind is seeking compensation through discussions and legal recourse.

Why did Indowind miss close to Rs 5 crore?

Indowind said Suzlon Energy Limited, the operations and maintenance (O&M) operator for its 18 MW project, did not ensure machine availability during the period. It said revenue and profit would have been higher by close to Rs 5 crore had the machines operated normally. The statement is an estimate of potential revenue and profit rather than an amount separately reported in the September 2026 financial results.

The filing does not provide an availability percentage, number of affected machines, duration of the disruption, lost generation or a split between potential revenue and potential profit. Indowind said it is pursuing compensation through discussions and legal recourse, while Suzlon Energy Limited has promised normalisation soon. No settlement amount, recovery timetable or date for normal operations was disclosed as of November 5, 2026.

How did Indowind's September 2026 results compare?

Indowind reported consolidated revenue from operations of Rs 15.381 crore for the quarter ended September 30, 2026, compared with Rs 17.554 crore in the September 2025 quarter and Rs 8.3019 crore in the June 2026 quarter. Consolidated profit after minority interest was Rs 3.0735 crore, down from Rs 4.7436 crore a year earlier but up from Rs 1.9938 crore in the preceding quarter.

The filing does not attribute the full year-on-year decline to the 18 MW machine-availability issue. Total expenses fell to Rs 11.5617 crore from Rs 13.2117 crore in the September 2025 quarter, while finance cost declined to Rs 0.5642 crore from Rs 2.3817 crore. Depreciation and amortisation, however, increased to Rs 3.7689 crore from Rs 3.6126 crore.

For the half year ended September 30, 2026, revenue from operations was Rs 23.6829 crore, against Rs 29.0938 crore in the prior-year half year. Profit after minority interest fell to Rs 5.0673 crore from Rs 7.0381 crore. Basic and diluted earnings per share were Rs 0.32, compared with Rs 0.55 a year earlier, on equity shares with a Rs 10 face value.

What does the auditor say about Suzlon-related balances?

Indowind's statutory auditor issued a qualified conclusion on the unaudited consolidated results, citing Suzlon-related matters from earlier years. The auditor said Indowind had filed an arbitration claim of Rs 90.8339 crore against the Suzlon Group, while Rs 14.9436 crore paid to Suzlon Energy Limited remained recorded as an advance without adequate audit evidence. It also cited Rs 8.4559 crore recognised as compensation receivable without counterparty confirmation or measurement under Indian Accounting Standard 109.

The auditor said the remaining balance of the arbitration claim had not been recognised. It added that, if the advance had been expensed and the compensation receivable appropriately amortised, the profit and loss account and reserves and surplus would have been lower by Rs 16.6829 crore and Rs 8.4559 crore, respectively. The filing does not say whether the close-to-Rs-5-crore estimate for the latest availability issue forms part of the earlier arbitration claim or any recognised receivable.

What other factors affected Indowind's accounts?

Indowind said expected income from a 4 MW solar project under completion is likely to enhance future profit. The filing does not disclose a commissioning date, project cost, expected output or forecast income for the solar project. It also identified an Rs 80 lakh fee for increasing authorised share capital within other expenses as non-recurring.

Consolidated other expenses were Rs 1.7124 crore in the September 2026 quarter, compared with Rs 0.7674 crore in June 2026 and Rs 1.026 crore in September 2025. Profit before tax in the September quarter was Rs 3.981 crore and deferred tax expense was Rs 0.9551 crore, with no current tax expense reported. The financial statements cover one segment, as Indowind said segment details were not applicable.

The auditor separately said Indowind had not performed an impairment assessment of Rs 74.5469 crore of goodwill transferred from Ind Eco Ventures Limited in a common-control merger. In the absence of testing, the auditor said it could not determine whether an impairment loss was necessary. The results also include unaudited interim information from subsidiary Indowind Power Private Limited, which reported Rs 4.2232 crore of revenue and Rs 0.1323 crore of net profit for the September 2026 quarter.

How did Indowind's cash position and balance sheet change?

Indowind's balance sheet reported cash and cash equivalents of Rs 1.6164 crore at September 30, 2026, down from Rs 8.7345 crore at March 31, 2026. The cash-flow statement separately reconciled cash and cash equivalents at Rs 0.8372 crore at September 30, 2026, versus Rs 8.7345 crore at March 31, 2026. The filing does not explain the difference between the September cash figures in those two statements.

Net cash used in operating activities was Rs 14.7507 crore in the six months ended September 30, 2026, compared with net cash generated from operations of Rs 2.7719 crore for the year ended March 31, 2026. A Rs 23.6915 crore increase in other financial assets and Rs 3.136 crore increase in loans and advances outweighed operating profit before working-capital changes of Rs 12.5348 crore. Capital work in progress rose to Rs 20.7305 crore from Rs 12.3051 crore at March 31, 2026.

Conclusion

Indowind has identified a specific operational issue at its 18 MW project and estimates that normal machine operation would have added close to Rs 5 crore to potential revenue and profit. Its reported consolidated revenue and profit were lower year on year for the September 2026 quarter, although the filing does not quantify how much of those changes arose from machine availability rather than expense, tax or other operating movements.

The next disclosures to watch are whether Suzlon Energy Limited delivers the promised normalisation and whether Indowind's discussions or legal recourse lead to compensation. Completion of the 4 MW solar project is another stated future earnings factor, while the earlier Rs 90.8339 crore arbitration claim, Suzlon-related accounting qualification and goodwill impairment assessment remain unresolved matters in the filing.