Indowind Energy Powers Up: Q3 FY26 Results and Future Growth Strategy

Indowind Energy Limited, a prominent player in India's renewable energy sector, has reported a strong performance for the third quarter and nine months ended December 31, 2025. The company's latest earnings call highlighted a strategic focus on strengthening its operating platform and laying a robust foundation for future growth, marked by a return to profitability and significant expansion initiatives.

For Q3 FY26, Indowind Energy posted a consolidated revenue of INR 6.19 crores, reflecting a 5% increase compared to INR 5.89 crores in Q3 FY25. A notable achievement for the quarter was the company's return to profit, reporting a Profit After Tax (PAT) of INR 0.35 crores, a significant turnaround from a loss in the corresponding quarter of the previous fiscal year. This improvement was attributed to enhanced operational efficiency, disciplined cost management, and favorable weather conditions during the windy season.

The nine-month period ending December 31, 2025, further underscored Indowind's growth trajectory. Consolidated revenue for 9M FY26 surged to INR 35.49 crores, registering an impressive 21.61% year-on-year growth. EBITDA for the same period grew by 29.39% to INR 16.98 crores, up from INR 13.13 crores in 9M FY25. This led to an improvement in EBITDA margins to 47.86% from 44.98%. The net profit for 9M FY26 stood at INR 7.5 crores, reflecting a 24.32% year-on-year growth, with the net profit margin improving to 21.17%. These figures demonstrate the company's ability to drive both top-line and bottom-line expansion through strategic execution.

Financial Performance Snapshot

(Note: 9M FY25 Revenue and PAT are calculated based on reported growth percentages.)

Driving Future Growth: Key Initiatives

Indowind Energy is actively pursuing several strategic initiatives to ensure sustainable long-term growth and enhance profitability. A significant development is the approval from the Karnataka government for a 4-megawatt solar project. To implement this, the company plans to invest INR 10 lakhs in Nova Power Private Limited, making it a subsidiary. This approach aims to secure long-term Power Purchase Agreements (PPAs) with customers, leading to higher realization rates, potentially 15-20% more than government rates, thereby improving profitability and Earnings Per Share (EPS).

Further strengthening its operational capabilities, Indowind is incorporating a new subsidiary for Operations & Maintenance (O&M) services. This move leverages the company's existing in-house O&M team, which has already demonstrated its efficiency by achieving approximately 15% cost savings compared to outsourced services. This new vertical will not only enhance internal operational control but also open avenues to offer O&M services to other asset owners, contributing to consolidated turnover and profits.

In a strategic investment, Indowind plans to acquire up to 20% equity in EverOn Power. EverOn Power boasts 19 megawatts of operating renewable energy assets and robust project EPC (Engineering, Procurement, and Construction) capabilities valued at INR 57 crores. This investment is designed to make EverOn an associate company, allowing Indowind to consolidate EverOn's turnover and profits, thereby accelerating future growth.

To finance these ambitious plans, the company has secured board approval for an overseas fundraiser of up to $70 million through a bond issue, which includes exchanging some current pending resolution bonds. Additionally, borrowing capacity is set to increase to INR 1,500 crores. These financial measures, coupled with an increase in authorized share capital from INR 175 crores to INR 275 crores, are aimed at providing substantial financial headroom and strengthening the capital framework for aggressive growth.

Operational Efficiency and Investor Confidence

Management highlighted its strategy to mitigate the impact of seasonal wind generation on profitability. By front-loading depreciation in Q1 and Q2, Indowind aims to normalize profitability across quarters. The strategic addition of solar projects, which generate power during the day, is designed to balance the intermittent nature of wind power, ensuring more consistent earnings throughout the year. The company's deep operating experience and strong O&M capabilities are crucial in maintaining asset performance and driving efficiency.

The successful completion of the rights issue, raising INR 49.42 crores, was a significant vote of confidence from investors. Management expressed gratitude for the strong participation, noting that it has not only strengthened the balance sheet but also instilled greater confidence within the company to pursue its growth objectives more aggressively. This investor trust is seen as a key enabler for achieving ambitious targets, including reaching an EPS beyond one from the current 0.5-0.6 level.

Conclusion: Charting a Sustainable Future

Indowind Energy is clearly focused on disciplined execution, prudent capital allocation, and long-term value creation. The company's priorities for FY26 include maintaining existing assets efficiently, ensuring customer satisfaction, and completing the 4-megawatt expansion project to boost revenue and shareholder earnings. Looking ahead, Indowind is exploring inorganic acquisitions of operating assets to further enhance profitability and EPS growth, alongside an organic plan to develop a 100-megawatt solar park. With a clear vision and strategic initiatives in place, Indowind Energy is charting a course for sustained growth and a stronger position in the evolving renewable energy landscape.