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Inox Wind
Our verdict on Inox Wind isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
Management confirms they are on track to achieve the 120-day net working capital cycle over the course of the financial year. (1 in progress across 1 tracked commitment)
“So, in terms of the revenue and in terms of the guidance which we have already provided earlier, our net working capital days would be somewhere around 120 odd days, which we continue to maintain.”
Management achieved 350 MW execution in H1 FY26 (approx. 29% of target). They maintain the 1.2 GW target, noting that H2 typically accounts for 70% of annual execution. (2 in progress, 2 revised across 4 tracked commitments)
“we are on the track to achieve our guidance for the full year, with H2 generally being 70% of the annual execution.”
CAPEX guidance for FY26 is approximately Rs. 200 odd crores. — target: Rs. 200 odd crores (+1 more commitment)
“For FY'26 our CAPEX guidance is around Rs. 200 odd crores.”
Inox Solar is targeting 7.5 GW of solar cell and module manufacturing capacity in India. — target: 7.5 GW (+4 more commitments)
“Inox Solar is a fully integrated solar manufacturing player targeting 7.5 GW of solar cell & module manufacturing capacity in India”
Management plans the commercial launch of 4X MW wind turbine generators within calendar year 2026. — target: Commercial launch of 4X MW (+4 more commitments)
“Commercial launch of 4X MW within CY26”
See the full cited Management analysis of Inox Wind
How durable is the business?
The O&M service arm expanded its portfolio to 5.1 GW and successfully entered the solar O&M segment, diversifying its revenue base. (2 expanding)
“Today, a lot more states are firing and next year again, I see Rajasthan opening a big way, Andhra Pradesh opening big way, a lot in MP, a lot of projects coming up”
The Operations and Maintenance (O&M) segment is expanding its portfolio, recently signing a 182 MW agreement with a major conglomerate, and targeting a 10 GW portfolio within two years. (5 expanding across 2 engines)
“On consolidated basis, Inox Wind has reported revenue of INR 1,238 crores, an increase of 24% Y-o-Y. EBITDA of INR 313 crores”
The core manufacturing and execution business saw massive growth, with annual execution jumping from 376 MW to 705 MW, and quarterly revenue more than doubling. (5 expanding)
“Coming to the order book, we continue to have a large and very well diversified order book of 3.2 GW... which will provide execution visibility for the subsequent 18-24 months.”
Inox Green reported a 79% increase in total income, reaching INR 98 crores, driven by value-added services and expansion into solar O&M. (1 expanding)
“Inox Wind is one of the leading fully integrated player in the wind energy market in India providing end-to-end turnkey solutions to customers. Its current offerings include manufacturing and supplies of 2MW & 3MW class WTGs, EPC & infrastructure development (through subsidiary IRSL) and O&M (through subsidiary IGESL)”
The company is deepening its backward integration by ramping up a new nacelle and hub plant and deploying in-house cranes to save on project costs. (5 expanding)
“We continue to deliver strong margins supported by the various initiatives... including our successful backward integration into cranes and transformer manufacturing.”
See the full cited Business Model analysis of Inox Wind
Where does growth come from?
The order book shows steady growth year-on-year, maintaining a massive 3.3 GW backlog despite high execution rates, providing multi-year visibility. (3 steady, 2 accelerating across 5 signals)
“Order book (MW) 3,185... well-diversified order book of ~ 3.2 GW”
Profitability is in an exponential acceleration phase, moving from a near-break-even state to triple-digit crore profits as operating leverage kicks in. (5 accelerating across 5 signals)
“PBT Rs 209 cr (+ 62% YoY)^”
Inox Wind is partnering with KP Energy to develop a massive 2.5 GW wind project pipeline across India, indicating strong future project flow. (+1 more signal)
“IWL is partnering with KP Energy to develop 2.5 GW of wind projects across India”
The company has successfully moved to a 'net cash' position, meaning it has more cash than debt, which provides a strong financial foundation for future expansion.
“Net debt (cash) [Rs cr] ... (222) H1 FY26”
The O&M portfolio is in a high-growth phase following the acquisition of 6.5 GW of assets, nearly doubling the managed capacity. (1 new trend across 1 signal)
“Portfolio of ~13.3 GWp* of renewable O&M assets... * includes investment already made by Inox Green to acquire 6.5 GW of wind O&M assets”
See the full cited Future Growth analysis of Inox Wind
What could break the thesis?
The risk remains high as the company has formalized an aggressive +75% revenue growth target for FY27, requiring a massive jump from FY26 guidance. (2 intensifying, 3 stable, 2 high-severity)
“FY27 REVENUE + 75% growth YoY”
EASING. The company achieved 'net cash' status following a merger and equity raises, reducing liabilities by ~Rs 2,050 cr. Net cash as of March 2025 stands at Rs 170 cr, significantly improving the balance sheet health compared to previous debt concerns. (5 easing, 1 high-severity)
“So broadly in the range of 200-210 days... In the earlier call, I think you had mentioned 120 days. So why this shift?”
STABLE. Management confirmed that Q1 and H1 are seasonally weak, with execution expected to ramp up significantly in Q3 and Q4. They noted that H1 typically represents only 30-35% of annual volume. (1 stable)
“It will be always H2 heavy. H1 is many times leaner because of monsoon, to be honest. So that remains the fact.”
STABLE. The company has completed the transition to 3 MW WTG production and has secured a license for 4.X MW WTGs. Success depends on the market acceptance and operational stability of these newer, larger platforms. (4 stable)
“Commercial launch of 4X MW within CY26”
The company is mitigating this by building its own 'plug & play' common infrastructure, which acts as a moat and reduces dependence on external site readiness. (2 easing, 1 stable)
“There are always issues can keep up at the ground level in terms of land, in terms of connectivity or substation getting ready or getting 220 kV line.”
See the full cited Risk analysis of Inox Wind
Read the full thesis on Inox Wind
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