Inox Green’s FY26: Higher profitability, a bigger O&M portfolio, and an asset-light reset

Inox Green Energy Services Limited closed FY26 with a sharp step-up in profitability, helped by strong operating metrics and a growing renewable O&M footprint. For Q4 FY26, the company reported total income of INR 120 crores versus INR 85 crores in Q4 FY25, while EBITDA rose to INR 57 crores from INR 30 crores. Profit after tax increased to INR 28 crores from INR 6 crores.

For the full year, consolidated total income was INR 426.2 crores in FY26 (FY25: INR 252.0 crores). EBITDA was INR 209.7 crores (FY25: INR 122.8 crores), and PAT was INR 103.4 crores (FY25: INR 21.9 crores). The company also reported cash PAT of INR 157.9 crores for FY26.

A key operating indicator was availability. Management reported machine availability of about 96.5 percent for Q4 FY26, and the FY26 average was also about 96.5 percent. For an O&M business, this is one of the most important metrics because it underpins customer retention, contract renewals, and the ability to win third-party portfolios.

The business in FY26: annuity cash flows with scope for add-on services

Inox Green positions itself as a comprehensive O&M solutions provider for wind turbine generators, solar assets, and common infrastructure that supports power evacuation. The company’s contracts are long-dated, typically five to twenty years, with contract tenors extending up to twenty-five years.

The pitch is simple. A large base of contracted assets creates recurring income, while value-added services can lift profitability. In the presentation, the company lists offerings such as refurbishment, booster sales, and carbon credit trading. On the earnings call, management also highlighted wind turbine overhaul and life extension packages, which are intended to increase turbine life and enhance output for customers.

A part of the reported income is also impacted by accounting classification. Management explained on the concall that a component of value-added services is classified under other income as per Ind AS.

Financial snapshot

Note: Cash PAT is defined by the company as PAT plus depreciation plus deferred taxes.

Portfolio scale: 13 plus GWp and acquisitions as the next growth lever

Inox Green stated that its renewable O&M portfolio stands at 13 plus GWp. Management described the mix as about 10.5 GW of wind assets, with the balance in solar. The portfolio is spread across India, with presence across 17 states.

The more consequential update is inorganic growth. The company noted that the 13 plus GWp number includes investments already made to acquire 6.5 GW of operational wind O&M portfolio of two companies. Management said that after completion of the acquisitions and consolidation of financials, consolidated EBITDA and PAT are expected to increase multifold.

On the call, investors probed the profitability of the acquired portfolios. The CEO of Inox Green indicated that the two acquisitions would roughly contribute a 50 percent EBITDA margin.

The company also described additional organic opportunity. Inox Wind has a stated net order book of about 3.1 GW, and the broader INOXGFL ecosystem is building an integrated renewable platform. In the presentation, Inox Clean Energy is described as targeting 14 GW of operational capacity by FY29, with annual additions of over 3 GW and an expected 20 to 30 percent share of wind within those additions. Management indicated this could translate into steady O&M portfolio additions over time.

The big structural change: demerger to an asset-light O&M company

A central theme for the year ahead is simplification of the balance sheet. The company disclosed that the scheme of demerger of common infrastructure from Inox Green and its merger into Inox Renewable Solutions has been approved by the NCLT Ahmedabad.

Management framed this as a decisive move toward an asset-light annuity model. On the earnings call, the CEO stated that the demerger eliminates gross block of about INR 1,000 crores from Inox Green’s balance sheet. Management also said this removes annual depreciation of about INR 50 to 55 crores, which is expected to increase profitability and improve ROE and ROCE.

This matters because renewable O&M businesses typically trade on the durability of cash flows and margins. If depreciation linked to infrastructure assets is removed from Inox Green, reported earnings can look structurally stronger, assuming the cost base and contract economics remain stable.

What management guided for FY27 and what to watch

Management provided explicit FY27 guidance for Inox Green on the call. It said consolidated revenue is expected to grow by around 75 percent over FY26, and it maintained FY27 EBITDA guidance to be north of INR 600 crores.

The bridge to this guidance rests on two variables.

First is consolidation of the acquired portfolios. The group executive director said one of the entities was expected to receive an order in the next couple of weeks, while the second entity was expected to see progress in 60 to 90 days, though exact timelines remain process-dependent.

Second is the quality of earnings. Other income is a major line item in FY26. In Q4, other income was INR 50.8 crores versus revenue from operations of INR 68.7 crores. Management gave a breakup for the quarter, stating that about INR 40 crores of other income related to the two strategic acquisitions, about INR 10 crores came from value-added services classified as other income, and about INR 10 crores was treasury income.

Investors should watch how the income mix evolves once acquisitions are consolidated and once the demerger is completed. It will also be important to track whether the company continues to report high availability as the managed fleet scales up.

Takeaways

Inox Green’s FY26 numbers show a business that is growing fast, with stable operating performance and a clear intent to become more asset-light. The headline story is not only the FY26 jump in total income and PAT, but also what management says comes next: consolidation of a large acquired wind O&M portfolio and the removal of evacuation infrastructure assets from Inox Green’s books.

FY27 will likely be defined by execution of these corporate actions and how cleanly the company translates its expanding portfolio into operating revenue, EBITDA, and cash generation.