INOX India Limited: Q3 FY26 Showcases Robust Growth and Strategic Expansion

INOX India Limited, a global leader in cryogenic equipment, has delivered a strong performance in the third quarter and first nine months of fiscal year 2026, demonstrating sustained execution momentum and strategic foresight. The company reported its highest-ever quarterly sales and adjusted EBITDA, driven by robust order inflows, deeper customer engagements, and increasing acceptance of its technologically complex and high-value products across the globe. This quarter's results underscore INOX India's resilient business model and its pivotal role in supporting India's economic expansion and global clean energy initiatives.

For Q3 FY26, INOX India's total income reached INR 436 crore, marking a significant 27% year-on-year growth. The adjusted EBITDA stood at INR 102 crore, an impressive 34% increase over the previous year, reflecting improved operating efficiency and a favorable product mix. Profit after tax (PAT) also grew by 32% year-on-year to INR 68 crore. For the first nine months of FY26, total income was INR 1,157 crore, a 20% increase year-on-year, with adjusted EBITDA at INR 281 crore (23% YoY growth) and adjusted PAT at INR 189 crore (23.7% YoY growth). The company's order backlog as of December 31, 2025, stood at a healthy INR 1,457 crore, providing strong revenue visibility, with 63% originating from exports.

Segmental Performance and Key Highlights

The Industrial Gas segment delivered an outstanding performance, marked by record order wins and global recognition. A notable achievement was securing an order from a leading U.S.-based aerospace company for two 1000 cubic meter cryogenic storage tanks. The company also recorded its highest-ever quarterly order intake for liquid nitrogen containers under the 'Cryoseal' brand, with nearly 20,000 units. Liquid cylinder demand remained exceptionally strong, with orders exceeding 1,700 units in the quarter. The company also secured high-value orders for disposable cylinders, including 7 lakh units from a U.S. customer, demonstrating its competitive edge despite tariff challenges.

The LNG segment continued its strong growth trajectory, benefiting from the rising adoption of LNG as a clean and cost-effective fuel in marine, industrial, and transportation applications. INOX India received an LNG marine fuel tank order from a European customer for two 150 cubic meter tanks and secured orders for LNG storage tanks for terminal projects in Africa. Domestically, the company crossed a significant milestone with over 250 LNG semi-trailers operating on Indian roads, commanding an 85% market share. A fully automated serial production line for LNG fuel tanks was commissioned at the Kalol plant to meet stringent quality requirements for automotive OEMs.

The Cryo-Scientific Division strengthened its position as a trusted partner for complex global scientific infrastructure projects, receiving repeat orders from ITER, France, for installation work and refurbishment of thermal shields. The company successfully completed prestigious milestones at the ITER site, including cooling down the Magnet Cold Test Bench to 4 kelvin. The beverage keg business also delivered strategic wins, securing its first-ever order from Heineken for the European market and receiving approval from Molson Coors of USA, expanding its global brewery approvals to over 40% of the global beer market.

Strategic Initiatives and Future Outlook

INOX India is actively pursuing several strategic initiatives to capitalize on emerging opportunities in clean energy and advanced cryogenic applications. The company is exploring data center cooling solutions, with a prototype expected within 6-8 months, which promises substantial energy cost savings. In the semiconductor industry, INOX India has supplied cryogenic tanks for projects in Assam and Dholera, demonstrating its growing presence in this high-tech sector. The company is also a key player in the solar module manufacturing space, supplying ultra-high purity ammonia units, a critical product for solar applications.

Furthermore, INOX India is deeply involved in India's space program, supplying ground equipment for ISRO's second launch pad and bidding for new projects like engine test facilities and propellant tank manufacturing. The company's LNG-powered cryogenic tanker, flagged off by group company INOX Air Products, is expected to significantly reduce CO2 emissions and particulate matter, promoting sustainable logistics. Management is optimistic about increasing order flow, expecting substantial results in Q4 FY26 and targeting 18-20% growth for FY27. They also anticipate a slight margin improvement in Q4 due to favorable currency movements for exports.

Financial Health and Capital Allocation

INOX India maintains a strong financial position, being debt-free with approximately INR 160 crore in free cash as of Q3 FY26. This robust liquidity provides ample headroom for future capacity expansion, ongoing project execution, and other strategic initiatives without financial stress. The company plans to achieve over 90% capacity utilization across its plants and intends to expand facilities at Savli and Kandla within approximately a year to meet anticipated demand. Management's focus on operational excellence, innovation-led growth, and delivering long-term value to stakeholders remains steadfast.

Despite a slight decrease in the order backlog from Q2 FY26, the company's diversified business model, strong export orientation, and focus on technologically complex products continue to strengthen its competitive position and long-term growth visibility. The management's balanced commentary, acknowledging both achievements and areas for improvement, reinforces investor confidence in its disciplined execution and strategic clarity.

INOX India Limited's Q3 FY26 performance reflects a company strategically positioned to leverage India's robust macroeconomic outlook and the global shift towards clean energy. With a strong order book, diversified revenue streams, and a clear vision for growth, INOX India is set to continue its trajectory as a leader in the cryogenic equipment industry.