Inox Wind Ltd (BOM:539083) (Q1 FY27) Earnings Call Highlights: Strategic Pivot Drives Order ...

Q & A Highlights

Q: What is the company's revenue and margin guidance for FY27, and how does the management view the quarterly phasing of this performance? A: Devansh Jain, Executive Director of INOXGFL Group, reaffirmed the guidance of 75% revenue growth over the previous year with an EBITDA margin of 20% to 22% on a consolidated basis. He emphasized that this is an H2-heavy business, with typically 70% to 75% of the business captured in the second half of the fiscal year. The management acknowledged that Q1 FY27 results were flattish year-on-year due to the strategic pivot from turnkey to equipment supply, but they remain confident in achieving the full-year targets.

Q: Can you provide an update on the 4X wind turbine model and the expansion plans for INOX Renewable Solutions Limited (IRSL)? A: Sanjeev Agarwal, CEO of Inox Wind, stated that the 4X turbine prototype installation is on track for August 2026, with commercial launch expected by the end of FY26. He detailed IRSL's expansion plans, which include manufacturing larger transformers (up to 100 MVA+), power electronic systems like inverters and unit substations, and expanding their crane fleet. These investments are expected to drive revenue and margin expansion for IRSL, compensating for any reduction in traditional EPC volumes.

Q: What is the status of the order book and the strategic partnership with INOX Clean Energy? A: Sanjeev Agarwal reported a robust order backlog of approximately 4.4 GW as of July 2026, providing clear execution visibility for 24 to 36 months. He highlighted a significant MOU signed with INOX Clean Energy for 1.5 GW, of which firm orders for 500 MW have already been signed. The management emphasized that this group synergy is a virtuous cycle, with INOX Clean's plans to set up 3 GW+ of IPP capacity annually expected to generate large recurring orders for Inox Wind, Inox Green, and IRSL.

Q: What are the key financial highlights for Inox Green, and what is the status of the WindWorld India acquisition? A: S.K. Mathusudhana, CEO of Inox Green, reported a strong quarter with total income of Rs. 101 crores (up 17% YoY), EBITDA of Rs. 57 crores (up 19% YoY), and PAT of Rs. 41 crores (up 86% YoY). He confirmed that the NCLT approval for the WindWorld India acquisition has been received, with formalities expected to be completed in Q2 FY27. The acquisition will add a 4.5 GW O&M portfolio, generating approximately Rs. 580 crores in revenue in FY26, with contracted annual price escalations of about 5%.

Q: How is the company addressing the high receivables and working capital concerns, and what is the rationale for the strategic pivot to equipment supply? A: Devansh Jain explained that the pivot towards equipment supply is a direct response to working capital challenges. He noted that receivables are accounted for on a risk-transfer basis and can appear high until projects are commissioned. By shifting the order mix towards equipment supply (currently 59% of the order book), the company expects a significant improvement in working capital cycles and balance sheet strength over the next few quarters. The management reiterated that this strategic shift will lead to faster revenue recognition and better cash flows.

Q: What are the benefits of the new ALMM (Approved List of Models and Manufacturers) rule for the wind sector, and how is Inox Wind positioned? A: Sanjeev Agarwal stated that Inox Wind is already well-positioned, with 80-90% of wind turbine components being indigenous. He noted that the ALMM rule will primarily benefit domestic manufacturers like Inox Wind, as it will restrict imports. The company is actively working to indigenize the remaining 10% of components, aiming for near 100% localization by the end of the calendar year. This strategic initiative is expected to provide a competitive advantage for at least the next three years.

Q: Can you provide details on the per-megawatt revenue for Inox Green's O&M portfolio and the expected contribution from acquisitions? A: Devansh Jain clarified that for the existing 4 GW wind portfolio, the blended per-megawatt revenue is approximately Rs. 9-10 lakhs (excluding GST). He noted that the two acquired portfolios (including WindWorld India) will have substantially higher per-megawatt revenue due to their older asset base and contracted escalations. However, these acquisitions are currently classified as investments and will only be consolidated into the financials once the share acquisition is completed.

Q: What is the timeline for the listing of INOX Renewable Solutions (IRSL), and how will it impact the EPC business? A: Devansh Jain stated that the record date for the demerger has passed, and the listing is expected within the next 2-3 months, subject to regulatory approvals. Sanjeev Agarwal clarified that IRSL will continue to handle EPC projects, but its growth will be driven by new manufacturing capabilities, including transformers, cranes, and power electronics. The management emphasized that IRSL's diversified business model will outsmart any potential reduction in EPC volumes.

Q: How does the management view the competitive landscape, particularly with competitors introducing 5 MW turbines? A: Sanjeev Agarwal responded that Inox Wind's new 4X model will "outclass" wind turbines in its category. He mentioned that while the company is focused on launching the 4X model, they are also contemplating higher models if market demand warrants it. The management expressed confidence in their product's competitiveness and technological superiority.

Q: What are the key risks to achieving the FY27 guidance, and how is the company mitigating them? A: Sanjeev Agarwal stated that the primary risks are force majeure events beyond the company's control, such as geopolitical crises. He expressed confidence that with the pivot to equipment supply, the company has mitigated operational risks. Devansh Jain added that the company has been nimble in adapting its strategy, and despite past slippages, they have consistently improved EBITDA margins and business performance, positioning the company for long-term success.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .