Inox Green Q2 FY27 profit rises 57% as expenses fall

Inox Green Energy Services Limited reported Q2 FY27 profit after tax of Rs 43.7 crore, up 57% year-on-year, as total expenses fell to Rs 54.7 crore from Rs 88.6 crore despite total income declining 13% to Rs 113 crore. Lower operations and maintenance costs and depreciation drove the profit increase.

Why did Inox Green’s Q2 FY27 profit rise despite lower income?

Inox Green’s profit rose because its Rs 33.9 crore reduction in total expenses exceeded its Rs 16.5 crore decline in total income. Profit after tax, or PAT, increased to Rs 43.7 crore in Q2 FY27 from Rs 28.1 crore in Q2 FY26, while profit before tax rose 41% to Rs 58.2 crore from Rs 40.9 crore.

The largest cost movement was in operations and maintenance, or O&M, and common-infrastructure facility expenses, which declined to Rs 24.8 crore from Rs 53.2 crore. Depreciation and amortisation also declined to Rs 40 lakh in Q2 FY27 from Rs 10.1 crore a year earlier, while employee-benefit expense fell to Rs 13.7 crore from Rs 14.6 crore.

Revenue from operations rose to Rs 88.8 crore from Rs 85.9 crore, but other income declined to Rs 24.2 crore from Rs 43.6 crore. That change left total income at Rs 113 crore, compared with Rs 129.5 crore in Q2 FY26, even as earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 20% to Rs 62.5 crore.

How did Inox Green’s Q2 income statement change from prior periods?

Inox Green improved EBITDA, profit before tax and PAT both year-on-year and sequentially in Q2 FY27. EBITDA increased to Rs 62.5 crore from Rs 52.2 crore in Q2 FY26 and Rs 57 crore in Q1 FY27, while PAT rose to Rs 43.7 crore from Rs 28.1 crore and Rs 40.8 crore, respectively.

Inox Green’s sequential total-income increase came from revenue from operations, which more than doubled from Rs 43.3 crore in Q1 FY27 to Rs 88.8 crore in Q2 FY27. Other income moved in the opposite direction, falling from Rs 57.9 crore in Q1 FY27 to Rs 24.2 crore, while total expenses increased from Rs 46.7 crore to Rs 54.7 crore.

Cash PAT, defined by Inox Green as PAT plus depreciation and deferred taxes, was Rs 58.1 crore in Q2 FY27, compared with Rs 50.9 crore in Q2 FY26 and Rs 54.8 crore in Q1 FY27. Finance costs were Rs 1.9 crore, higher than Rs 1.2 crore a year earlier but below Rs 2.1 crore in the preceding quarter; Q2 FY26 figures were restated for discontinued operations.

What do Inox Green’s H1 FY27 results show?

Inox Green’s H1 FY27 PAT rose 68% year-on-year to Rs 84.5 crore even as total income declined 6% to Rs 214.2 crore. EBITDA increased 20% to Rs 119.5 crore and profit before tax rose 53% to Rs 112.7 crore, according to the consolidated income statement.

Revenue from operations for H1 FY27 was Rs 132.1 crore and other income was Rs 82.1 crore, producing total income of Rs 214.2 crore. Total expenses were Rs 101.4 crore, including Rs 49.9 crore of O&M and common-infrastructure expenses, Rs 27.6 crore of employee benefits, and Rs 19.2 crore of other expenses.

The first-half comparison shows that profit growth did not follow higher reported income: the presentation’s highlighted figures put H1 FY26 total income at Rs 227 crore, versus Rs 214 crore in H1 FY27. On the same rounded basis, EBITDA increased from Rs 100 crore to Rs 120 crore and PAT rose from Rs 50.5 crore to Rs 85 crore as the cost base declined.

What is Inox Green’s O&M portfolio and operating performance?

Inox Green reported about 12.5 gigawatt peak, or GWp, of renewable O&M assets under management as of September 2026, comprising about 10.4 gigawatts of wind assets and about 2.1 GWp of solar assets. Pan-India machine availability was 96.2% in Q2 FY27 across wind, solar and common renewable-project infrastructure.

The September 2026 portfolio includes Wind World India’s O&M portfolio and an investment to acquire about 2 gigawatts of additional wind O&M assets. Inox Green said its assets under management declined because certain solar O&M contracts were not renewed after failing to meet its margin criteria.

Inox Green’s portfolio rose from 0.09 GWp in 2013 to 12.5 GWp in 2025, and remained at about 12.5 GWp in September 2026. Its contracts generally run for five to 20 years, with some tenors extending to 25 years, and its operating tools include 24x7 centralised monitoring, performance analysis and Supervisory Control and Data Acquisition analysis.

When will the Wind World India transaction affect Inox Green’s results?

Inox Green expects line-by-line financial consolidation of Wind World India’s 4.5-gigawatt wind O&M business from Q3 FY27. Its subsidiary, Vibhav Energy Private Limited, completed payment for the transfer under a Business Transfer Agreement through a National Company Law Tribunal process.

The acquired business generated FY26 O&M revenue of Rs 580 crore and has contracted annual price escalation of about 5%, according to Inox Green. Its assets are located in Karnataka, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, Madhya Pradesh and Andhra Pradesh, with customers including Tata Group, ReNew, Greenko Group, Araapava Energy and Hindustan Zinc.

Management said Q2 FY27 EBITDA did not include income from two O&M investments because that income had not been recognised in the profit and loss account for the quarter. Management expects consolidated EBITDA and PAT to increase multifold after acquired-business completion and financial consolidation, while the presentation cautions that forward-looking statements are not guarantees of future performance.

Conclusion

Inox Green’s Q2 FY27 profit improvement was cost-led rather than income-led. PAT increased to Rs 43.7 crore despite a Rs 16.5 crore year-on-year fall in total income, because O&M and common-infrastructure expenses fell by Rs 28.4 crore and depreciation and amortisation fell by Rs 9.7 crore.

The next disclosed milestone is Q3 FY27, when Inox Green expects to begin line-by-line consolidation of the 4.5-gigawatt Wind World India O&M business. The reported effect on income, expenses and profitability, alongside the acquired portfolio’s Rs 580 crore FY26 revenue and approximately 5% annual contracted price escalation, will be the next result to watch.