INOXINDIA - INOX India Limited Share Price

In the Q4 FY '26 earnings call, INOX India Limited's management provided an optimistic outlook for FY '27, highlighting a strong order backlog of INR 1,514 crores, which is approximately 63% from exports and 37% from the domestic market. They anticipate sustained revenue growth, targeting an 18% to 20% increase, suggesting a revenue run rate of around INR 1,600 to INR 1,632 crores. Notably, they expect quarterly order inflows of INR 450 to INR 500 crores.

Highlights from their forward-looking statements include:

1. Strong Global Positioning: India's growth rose to 7.1% in FY '26, making it the fastest-growing major economy, and INOX aims to capitalize on India's industrial ambitions and the transition towards cleaner energy sources.

2. Major Orders: The company received significant aerospace orders valued at approximately INR 200 crores, and expects more high-value orders in Q1 FY '27.

3. LNG Market Expansion: Management noted a robust outlook for their LNG solutions segment due to increasing demand for LNG-powered vessels and resilient infrastructure. The company holds a market share of 60-65% in India while globally it sits at 6-8%.

4. Cryogenic Division Growth: Strong momentum is expected from their Cryo-Scientific division, projected to secure regular orders worth INR 50 to 60 crores annually for the next five years.

5. Innovative Projects: The management mentioned R&D initiatives for liquid nitrogen-based cooling solutions for data centers, which they believe could open significant opportunities in the next 6 to 12 months.

6. Facility Expansion: They are developing a new facility at Kandla, expected to be operational in approximately 9 to 10 months, enhancing their capability to manufacture larger, high-value tanks.

Overall, their focus on operational excellence, innovation-led growth, and strategic investments positions INOX for progression in a dynamic market landscape.

1. Question: What is the pipeline for big orders in the coming quarters, and what guidance do you have for order inflow for FY '27?
   Answer: We have a backlog of around INR 1,514 crores, including the recent INR 200 crore aerospace order. We expect more similar orders in Q1 and Q2 of FY '27, providing a clearer outlook for our order booking momentum this year.

2. Question: What revenue can we expect in Q1 FY '27 given the logistic challenges?
   Answer: We anticipate revenue growth on track towards INR 1,600 crores for FY '27, with quarterly figures increasing in line with our 18-20% growth target, despite logistic disruptions.

3. Question: What was the beer keg segment's revenue contribution and dispatch figures for FY '26?
   Answer: We had sales of around 61,000 kegs in FY '26, with an order book of 65,000 units. This reflects a 31% volume increase over the previous year, primarily due to a shift in product type towards more 20-liter kegs.

4. Question: What is your outlook on the LNG tanks' order inflow perspective in FY '27?
   Answer: We expect strong demand for storage capacity and transportation equipment due to ongoing issues with LNG deliveries from regions like Qatar. This creates a favorable environment for additional orders and growth in our LNG tank segment.

5. Question: Could you provide the market size for LNG storage and transportation and your respective share?
   Answer: While we manufacture tanks as small as 46 kl, our standard model remains popular. Currently, our LNG market share in India is about 60-65%, and we hold a 6-8% global market share in LNG products.

6. Question: Can you discuss the profit margin changes and reasons behind them?
   Answer: Margins may fluctuate based on product mix. However, our EBITDA margin has consistently remained within the 21-24% range, with this year's figure at 23.8%. Variations occur due to different product sales being prioritized based on market needs.

7. Question: What are the potential orders from ITER going forward?
   Answer: With continued work, we expect regular orders from ITER, estimating around INR 50-60 crores on average annually for the next five years, driven by ongoing repair and new project needs.

8. Question: Regarding the Highview Power Liquid Air Energy Storage system, do you expect additional project orders?
   Answer: Yes, we have submitted bids for further projects, and with the successful commissioning of the first project, we anticipate visibility on at least one additional order in the coming months, likely to be significantly larger in value than previous orders.