Inox Wind revenue rose 58% in Q2 as margin fell to 17% on inflation

Inox Wind reported Rs 1,378 crore revenue in Q2 FY27, up 58% quarter on quarter, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell to about 17% from 26% in Q2 FY26. IWL attributed the margin pressure to commodity, raw-material and supply-chain inflation linked to the West Asia war.

Why did IWL's Q2 FY27 EBITDA margin fall?

IWL said its Q2 FY27 EBITDA margin fell to about 17% because commodity and raw-material inflation related to the West Asia war created temporary cost headwinds across the supply chain. EBITDA was Rs 238 crore, described as flat quarter on quarter, despite the 58% sequential increase in revenue to Rs 1,378 crore.

The year-on-year comparison shows that EBITDA decreased by Rs 68 crore, to Rs 238 crore in Q2 FY27 from Rs 306 crore in Q2 FY26, while the margin declined by 9 percentage points. Total income increased by Rs 216 crore over the same period, reaching Rs 1,378 crore from Rs 1,162 crore.

IWL said incremental contracts and fresh bids are being priced dynamically for the current commodity and cost environment. Management expects this approach to help normalise margins as newer orders move into execution, but it did not give a timetable for that change.

What profitability did IWL report in Q2 FY27?

IWL reported Rs 103 crore of profit before tax (PBT), Rs 69 crore of PAT and Rs 165 crore of cash PAT in Q2 FY27. The company said PBT and cash PAT each rose 8% quarter on quarter, while its reported PAT was lower than the Rs 121 crore recorded in Q2 FY26.

IWL defines cash PAT as PAT plus depreciation, deferred taxes and minimum alternate tax credit entitlement. For H1 FY27, it reported Rs 2,250 crore total income, Rs 479 crore EBITDA, a 21% EBITDA margin, Rs 141 crore PAT and Rs 327 crore cash PAT, compared with the Q2 FY27 margin of about 17%.

How much order visibility does IWL have?

IWL had a diversified order book of about 3.8 gigawatts (GW) as of October 2026, which management said provides more than 24 months of revenue visibility. The order book covers independent power producers, public-sector undertakings, commercial and industrial customers, and retail customers.

IWL secured 350 megawatts of orders from public-sector undertakings and independent power producers during Q2 FY27. The presentation names NTPC, CESC, NLC India, Aditya Birla, Amplus/Gentari, Hero Future Energies and Inox Clean among order-book customers, but does not disclose order values or execution schedules by customer.

IWL also said its shift towards equipment sales and cash flows had begun to produce revenue growth and reduce debtor days. The presentation provides no debtor-days figure, so the disclosed 3.8 GW order book and more-than-24-month visibility remain its quantified measures of future execution.

What will change after the Wind World portfolio consolidation?

IWL expects line-by-line financial consolidation of Wind World India's 4.5 GW wind operations and maintenance (O&M) business from Q3 FY27. Inox Green completed payment for the transfer through its subsidiary Vibhav Energy Private Limited under a business transfer agreement following a National Company Law Tribunal process.

The Wind World O&M income was not recognised in IWL's Q2 FY27 profit and loss account. Management said the consolidated EBITDA margin would have been about 20%, rather than the reported 17%, had that income been recognised; this is an indicative management calculation, not the reported quarterly result.

Inox Green's portfolio was about 12.5 gigawatt-peak (GWp) as of September 2026, comprising about 10.4 GW of wind and about 2.1 GW of solar. IWL said the acquired O&M portfolio offers scope for enhanced services, price optimisation and cost optimisation, which are management expectations rather than booked Q2 FY27 benefits.

What is IWL targeting for FY28?

IWL has guided for about Rs 7,500 crore of revenue and about 20% EBITDA margin in FY28, with both measures including other income. The revenue target compares with Rs 4,569 crore of total income in FY26 and Rs 2,250 crore in H1 FY27, while the FY28 margin target is above the about 17% reported in Q2 FY27.

Management's plan includes commercial sales of 4X MW turbines, a ramp-up in transformer manufacturing and entry into power electronics, including inverters, energy control systems and unit substations. It also expects higher consolidated contribution from Inox Green after O&M portfolio consolidation and intends to secure long-term recurring orders through a framework agreement with the group independent power producer company.

Conclusion

IWL's Q2 FY27 result combined 58% sequential revenue growth with a 17% EBITDA margin, down from 26% in Q2 FY26. Revenue rose to Rs 1,378 crore, but EBITDA fell to Rs 238 crore and PAT to Rs 69 crore year on year, with management attributing the margin movement to higher commodity, raw-material and supply-chain costs.

The next disclosed marker is the Q3 FY27 line-by-line consolidation of the 4.5 GW Wind World O&M business. Investors can also watch whether dynamically priced orders affect margins, progress towards FY28 guidance of about Rs 7,500 crore revenue and about 20% EBITDA margin, and statutory approvals for the expected IRSL listing.