Inox Green flags Rs 118.57 crore unbilled O&M services

Inox Green Energy Services Limited disclosed Rs 118.57 crore of operations and maintenance (O&M) services already rendered but not billed as at September 30, 2026. Management expects no material adjustment, but billing remains subject to contractual tenability and progress in negotiations, discussions, arbitration and litigation.

What O&M services has Inox Green left unbilled?

Inox Green has disclosed Rs 118.57 crore of rendered O&M services that remained unbilled at September 30, 2026. The amount is stated in Note 5 to the consolidated unaudited results for the quarter and half year ended September 30, 2026, and was specifically highlighted in the auditor's review report dated November 13, 2026.

Inox Green's policy is to recognise O&M revenue over the contract period on a straight-line basis. This means the timing of revenue recognition is not necessarily the same as invoicing, but the filing says the unbilled amount is subject to the contractual basis for billing and the progress of the stated resolution processes. The disclosure does not identify the customers, contracts, service dates or expected invoice dates behind the Rs 118.57 crore.

The company operates one reportable business segment: O&M services for wind turbine generators (WTGs) and common infrastructure facilities. Since the September 2026 standalone results do not provide segment disclosures under Indian Accounting Standard 108, Inox Green has not split the Rs 118.57 crore between WTG services and common-infrastructure work.

Why did the auditor highlight Inox Green's unbilled services?

The auditor highlighted the unbilled Rs 118.57 crore because management's assessment depends on contractual tenability and developments in negotiations, discussions, arbitration and litigation. Dewan P N Chopra & Co included the matter in an emphasis-of-matter section of its November 13, 2026 limited-review report on the consolidated results.

An emphasis of matter is not a modified review conclusion. The auditor said nothing had come to its attention that caused it to believe the September 30, 2026 consolidated results did not contain the required disclosures or contained a material misstatement. It expressly said its conclusion was not modified for the unbilled O&M matter.

The auditor also referred to Note 6, which says O&M services under certain contracts do not require material adjustment for delays or machine availability, if any. Inox Green has not quantified those contracts or shown how that statement relates to the Rs 118.57 crore of unbilled services, leaving the scope of the underlying contractual positions undisclosed.

How large is the unbilled amount compared with Inox Green's revenue?

The Rs 118.57 crore unbilled-services amount was close to Inox Green's Rs 132.01 crore revenue from operations for the half year ended September 30, 2026. It was also higher than the Rs 88.72 crore revenue reported in the September 2026 quarter, although the filing does not say that all of the unbilled amount was recognised as revenue during those six months.

Revenue from operations rose Rs 45.43 crore sequentially, from Rs 43.29 crore in the June 2026 quarter to Rs 88.72 crore in the September 2026 quarter. In contrast, half-year revenue fell Rs 2.38 crore from Rs 134.39 crore in the half year ended September 30, 2025 to Rs 132.01 crore in the comparable 2026 period.

The comparison indicates the scale of the disclosed unbilled balance against reported O&M revenue, but it does not establish an ageing profile or a direct collection forecast. Inox Green has not disclosed how much of the Rs 118.57 crore relates to negotiations, arbitration, litigation or other discussions, nor has it disclosed any provision associated with that amount.

What does Inox Green say about possible adjustments?

Management says it expects no material adjustment to the consolidated financial results from contractual obligations and related taxes and interest, if any. That expectation is based on management's assessment of contractual tenability and the progress of negotiations, discussions, arbitration and litigation as at September 30, 2026.

This is a management expectation rather than a disclosed settlement, arbitral award, court order or collection confirmation. The November 13, 2026 filing does not state the amount of taxes or interest that could arise, the date by which invoices may be issued, or whether any disputed service amounts have been resolved after the reporting date.

Inox Green separately said certain O&M contracts did not require material adjustment for delay or machine availability. The filing does not say whether this conclusion applies to all or part of the Rs 118.57 crore unbilled balance, so the relationship between operational-performance clauses and billing remains unclear from the reported results.

What balance-sheet movements provide context for Inox Green?

Trade receivables increased to Rs 221.99 crore at September 30, 2026 from Rs 166.18 crore at March 31, 2026, a rise of Rs 55.81 crore. The balance sheet does not directly reconcile the Rs 118.57 crore unbilled O&M-services disclosure to trade receivables, other current assets or another specific asset line.

Current assets were Rs 1,815.64 crore at September 30, 2026, compared with Rs 1,040.94 crore at March 31, 2026. Bank balances other than cash equivalents increased to Rs 710.19 crore from Rs 417.69 crore, while cash and cash equivalents declined to Rs 22.32 crore from Rs 86.89 crore over the same dates.

Inox Green raised Rs 300 crore through a qualified institutions placement (QIP) involving 1,81,10,473 equity shares of face value Rs 10 each. The company said the proceeds were held in an escrow account at September 30, 2026 and were intended for investment in Vibhav Energy Private Limited, repayment or prepayment of borrowings, and general corporate purposes.

Conclusion

The Rs 118.57 crore disclosure places a substantial volume of rendered O&M services alongside unresolved billing processes at September 30, 2026. Inox Green's straight-line revenue-recognition policy and the auditor's unmodified review conclusion provide the accounting context, while the contractual status and resolution processes remain central to the amount.

The next issue to watch is whether Inox Green provides updates on invoicing, contractual outcomes or any adjustment linked to the unbilled services in later results. The company has also disclosed Rs 300 crore of QIP proceeds in escrow at September 30, 2026, with planned uses including the Vibhav Energy Private Limited investment, debt repayment or prepayment, and general corporate purposes.