INOXWIND - Inox Wind Limited Share Price

Inox Wind Limited's management provided a robust outlook during the recent earnings conference call. They expressed confidence in achieving an execution target of 1.2 gigawatts (1,200 megawatts) for FY '26, despite Q1 typically being a weaker quarter for the wind industry. In Q1 FY '26, the company reported a revenue of INR 863 crores, up 32% year-on-year (YoY), with EBITDA at INR 220 crores (39% YoY increase) and a profit after tax (PAT) of INR 97 crores (134% YoY increase). The cash profit surged to INR 186 crores, marking a 168% YoY rise.

Management highlighted that their performance has been driven by a well-diversified order book of 3.1 gigawatts and plans for aggressive capacity enhancement, including a new 1,200 megawatt nacelle and hub manufacturing facility in Gujarat. They raised their margin guidance for FY '26 from 17-18% to 18-19%, reflecting strong operational efficiency.

Key forward-looking points included:

1. Operational Enhancements: The new nacelle plant and transformer manufacturing unit are expected to facilitate faster project execution and enhance margins.
2. Market Dynamics: The company anticipates a strong wind market driven by the government's support for renewables and recent amendments allowing hybridization of existing solar and wind projects.
3. Strategic Expansions: An expansion of blade manufacturing capacity is underway to tap into southern India's market.
4. Financial Health: The rights issue was oversubscribed at 2.13x, allowing the company to strengthen its balance sheet and eliminate net cash position.

In conclusion, the management's long-term vision focuses on innovation, strategic partnerships, and increasing market share while maintaining profitability as a core objective.

Questions and Answers Summary from Inox Wind Q1 FY '26 Earnings Call

Question 1: "What is the management's stance on the possibility of rationalizing subsidiaries via demergers into the hands of IWL shareholders?"

Answer: "We do see both Inox Green and Inox Renewable Solutions as integral parts of Inox Wind. For valid reasons, I don't envision demerging them out of Inox Wind. They contribute to our overall strategy, focusing on long-term value creation for the company and shareholders."

Question 2: "Why is Q1 FY '26 execution only up 4% year-on-year, and what does that mean for the guidance of 1.2 GW?"

Answer: "Execution for Q1 is often lower as H1 is typically weak. We focus on completing full sets rather than just dispatching components, leading to better overall quality in execution. We're confident in meeting the 1.2 GW annual guidance as historically H2 sees stronger performance."

Question 3: "What is the margin outlook for FY '26, given current performance?"

Answer: "We've raised our margin guidance to 18%-19% for FY '26 based on strong quarter performance and operational efficiency. This reflects our commitment to continuous improvement in profitability, with previous margins being consistently outperformed."

Question 4: "How is the INR100 crore difference in standalone vs consolidated revenues explained?"

Answer: "This difference comes from both Inox Green and Resco. Inox Wind has unique revenue flows, with Resco and Inox Green contributing significantly to overall figures, stemming from contractual obligations in the sector."

Question 5: "What growth trajectory do you see for wind and potential challenges?"

Answer: "We anticipate 5-6 GW in wind alone this year from current growth trends. Challenges may arise from regulatory changes or macroeconomic factors, but overall demand is strong. We remain optimistic about our market position."

Question 6: "How will the recent CERC notification impacting hybridization affect the company?"

Answer: "The recent CERC amendment will aid in hybridization of existing projects, enhancing our infrastructure capabilities. It allows us to leverage our existing installation for solar alongside wind, effectively increasing our project execution speed and capacity."

Question 7: "Will the rights issue funds be used to pare down debt?"

Answer: "Yes, proceeds from the rights issue will reduce remaining debts and strengthen our cash position. This will also enable us to seek further opportunities for growth in the future."

Question 8: "What impact do you foresee from potential GST reductions in the renewable sector?"

Answer: "A reduction in GST rates would lower capital project costs, enhancing overall sector investments. We expect this to boost our project demand and facilitate a more favorable market environment for future orders."

This summary captures significant questions asked during the earnings call and responses provided by the management, emphasizing the operational performance, strategic guidance, and market outlook as of September 2025.