INOXWIND — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

INOXGFL GROUP · MR. KAILASH TARACHANDANI – GROUP CHIEF

MR. KAILASH TARACHANDANI – GROUP CHIEF EXECUTIVE OFFICER – INOXGFL, RENEWABLES BUSINESS MR. AKHIL JINDAL -- GROUP CHIEF FINANCIAL OFFICER – INOXGFL GROUP MR. SANJEEV AGARWAL – CHIEF EXECUTIVE OFFICER – INOX WIND LIMITED MR. S.K.

MATHU SUDHANA – CHIEF EXECUTIVE OFFICER – INOX GREEN ENERGY SERVICES LIMITED

Moderator · Conference Operator

MR. SUDHANSHU BANSAL – JM FINANCIAL Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

Ladies and gentlemen, good day and welcome to the Inox Wind and Inox Green Q1 FY '26

The next question is from the line of Vikas Agarwal, an Individual Investor.

Vikas Agarwal

I just want to ask, given the industry segment, I just want to ask, what is the growth trajectory going two to three years onwards into wind, and what could be the factor deriving the demand?

Is it possible there is a driver beyond the India 500 gigawatt mission, and can we put a figure to it, and how would it shape up?And what are the present challenges we would see, and how are they shaping up?

I hope I am able to get the message through?

Kailash Tarachandani

Thanks, Vikas.

I think right now it is very gung-ho about the industry, and all we can see is that it is going in full speed.

What we see, it should be, if I see only wind, 5 to 6 gigawatt we see within this year, going upward towards 7 to 8 gigawatt, and eventually possibly 8 to 9 or may touch 10 gigawatt also.

There is a clear vision till 2030, what the country needs to achieve, and we may obviously the target is 90 to 100 gigawatt by 2030.

So it could be 70, could be 80, but we are looking finally at the rate of 8 to 9 gigawatt, if I have to say, from a broader perspective, from that point of view.

From INOX Wind point of view, we have clearly said, we are executing 1.2 gigawatt this year, and possibly taking it to 2 gigawatt next year.

And we will continue to see that we are again as I said market share -- we have said earlier market share is not the primary concern for us, but overall we would like to remain as a major player, and keep those kind of target in place for us.

Vikas Agarwal

No, I just want to ask, I think everyone is saying about the 500 gigawatt theme, and everyone is looking at it.

I mean, is there something beyond that?

I mean, does it end at the 500 gigawatt target…?

Devansh Jain

500 gigawatt is total, if you see from when it is 90 to 100 gigawatt.

Moderator · Conference Operator

Okay, sure, sir.

The next question comes from the line of Paranjay Maheshwari from SSL.

Mr. Maheshwari, your line has been unmuted.

Please go ahead with your question.

As there is no response, we'll move on to the next question.

It's from the line of Bhavik Shah from Invexa Capital.

Bhavik Shah

So, my question is, sir, our receivables and inventory days are still quite high.

So, what is our guidance for, say, FY '26?

At what levels are we comfortable with?

Moderator · Conference Operator

I'm sorry to interrupt.

Mr. Bhavik, please come back in the queue for further question.

Yes.

Thank you.

The next question comes from the line of Kapil Malhotra from an Individual Investor.

Please go ahead.

Kapil Malhotra

Thank you so much.

I just wanted some more clarification on the execution guidelines for the year.

Though, sunlight has already been put on it.

So, we did 146 megawatt.

The overall target is, the guidance is 1,200.

And typically, last 2 years, what I have seen from the reports is, it's a 40-60 kind of a split and not a kind of 35-65.

But even if we assume 35-65, which means roughly 275 megawatt to be executed in Q2. I just wanted some kind of a guidance that more or less things would be in the similar line.

33% is 400, we need about 250.

But broadly it’s about 33-65.

We are on track for it.

Moderator · Conference Operator

The next question comes from the line of Ketan Panchal, an Individual Investor.

Please go ahead.

Ketan Panchal

Hi.

Sir, order book growth [inaudible 0:45:23].

After 1,500 megawatts CESC growth, order book growth has been going on.

And you can also say that the 90 megawatts of last year, 705 megawatts of last year and 700-500 megawatts, 800 megawatts and 700-500 megawatts, all of mixed.

Moderator · Conference Operator

Yes, sir.

The next question comes from the line of Bhavik Bhavsar with Investec.

Please go ahead.

Bhavik Bhavsar

Hi, sir.

So can you talk about the upcoming bid pipeline in megawatts?

And are there are they SECI or state bids?

Moderator · Conference Operator

The next question comes from the line of Krish with MLP.

Please go ahead.

Krish

Hi, sir.

Thank you for the opportunity.

Sir, one quick question.

Sir, our 4-year guidance for this year is around 1200 megawatt and you know we have been saying 35-65 first half, second half, which implies around 420 megawatt for the first half and we have done around 146.

So are we on track to do the 275 or how should we think about it?

Considering the heavy monsoon.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Shweta Dikshit with Systematix Group.

Please go ahead.

Shweta Dikshit

Hi, good evening.

Thank you for the opportunity.

My one question is on the INOX Green.

Could you just highlight what has led to the increase in other income that is almost 10x on a Y-on-Y basis?

What is contributing to this?

How do we build this going forward?

How do we expect this to change going forward…

Moderator · Conference Operator

The next question comes from the line of Ketan Gandhi with Gandhi Securities.

Ketan Gandhi

Sir, in opening remarks you said about, there is some notification from CERC.

Can you throw some light on that amendment with respect to the industry, how it would be helpful to the industry and our company?

Moderator · Conference Operator

The next question comes from Prit Nagersheth with Wealth Finvisor.

Please go ahead.

Prit Nagersheth

Two questions.

One is with the money that gets raised via rights, will this result in paring down whatever remainder of net debt there is?

We are net cash, but we still have some debt.

So do we plan to use it for that purpose or what will be the purpose of the money raised?

Moderator · Conference Operator

The next question comes from the line of Prateek Giri with Subh Labh Research.

Please go ahead.

Prateek Giri

Greetings everyone.

Thank you for the opportunity.

Devansh, my first question is regarding your guidance to reduce the mix of turnkey to equipment supply from the current 65-35 to roughly around 50-50.

I want to get your perspective on will it not lead to entry of newer EPC players in the sector leading to increased competition because eventually they would want to backward integrate into turbine manufacturing which will increase the competitive intensity.

If you can throw some light on this, Devansh?

Kailash Tarachandani

No, just to first add on that and if Devansh something else can further add on that.

I think as we continue to ramp up, say from 700-800 megawatt to 1.2 gigawatt to 2 gigawatt now, I think somewhere we have to take the advantage because there are so many FDRE coming and they Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025 are also developing.

So this is a huge opportunity in terms of equipment supply and that's how this ratio is changing.

To say that I am reducing our pipeline or reducing our turnkey, it is not.

We are continuously moving on that positive direction.

We continue to get more and more plug and play getting ready.

It is only in order to take the advantage of further growth in the sector as we go.

Today also we have huge pipelines in turnkey and we will continue to do whether it is for our esteemed customer or new customer and we do lot of handholding with lot of new customers also which are coming in the sector who possibly doesn't know in terms of doing the completely turnkey as such.

So it's a mix of that, adding on that but we are not reducing turnkey.

We are not.

It doesn't mean that we are losing anywhere into the competition what you just said that.

Turnkey will continue to do what we are doing today at the rate of whatever 500, 600, 700 megawatt whatever is the right opportunity but beyond that since equipment supply opportunities are coming in a large way, we continue to capture more and more market share from that.

Sanjeev Agarwal

Let me add also here.

Prateek, this is Sanjeev.

So I think we are the we are probably the only one left in India who has the specialization to do the complete turnkey EPC from getting the land to commission it and then handing it over the units back to the customer.

We do not want to leave that space.

You know this has been built over a period of time with expertise with in- house expertise.

So we will continue to offer this turnkey solutions to all our customers and when I said we retain our customer is exactly because they love us.

They love to see a single company who can take all their pains and only generate finally the power.

So this will remain as it is.

It's just that you know when you have to grow, you need to segregate, you need to expand and one of our expansion plan is to also look at stand-alone supply orders.

And when I say stand-alone supply, it is just not equipment supply.

We remain with the customer in terms of offering them expert advice on how to build the plant, how to commission the plant and how to operate the plant.

So this percentage would vary depending upon the year, depending upon the order values and the percentage margin that we get but let me make it very clear.

We are extremely proud to be in this position as probably the Indian only EPC supplier in the wind industry.

Prateek Giri

I get that Sanjeev.

Actually, I will just tell you where I am coming from because there is one recent entry into the EPC space, wind EPC space by one of the renowned players from the crane segment.

So from there I was drawing this conclusion but I totally get your point.

Just one follow-up on this.

Devansh Jain

Sanjeev, if I may just add, I was hearing your questions.

You know, investing in wind turbines or getting that supply chain ready and the working capital cost thousands of crores.

Putting up a nacelle plant may cost INR100-INR200 crores which is a piece of cake.

It's like modules in solar.

You have 100 players who put up 100 gigawatt but that's the least of issues.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025 So setting up a nacelle plant and saying I'll make wind turbines, blah-blah, the journey to have a solid technology backed turbine is minimum 4 years and then you need to keep upgrading as we keep taking on better products.

And the entire supply chain and the working capital is a couple of thousand crores.

So some guy with INR100-INR200-INR300 crores just making announcements and talking for the sake of talking is not what will hold true.

So let's not get excited [inaudible 1:11:15] out there.

Prateek Giri

No, I totally get that Devansh.

Actually, you know, I'm sure in these times you would also agree that capital ultimately is a commodity.

But I totally get your point on the technical aspects of it.

Just one follow up on this, Sanjeev, if you can, if this mix is going to change, should we also change the realization per megawatt mathematics which we have been building or doing it so far, INR6 crores per megawatt?

Devansh Jain

Prateek, we've given you a blended number.

So I think that more or less covers everything.

Prateek Giri

Understood.

My last point, Devansh, I wanted to put this to you.

Please allow me to say this.

That, you know, we have noticed that shareholder returns become very uncertain when there's a significant equity dilution which fortunately and unfortunately has happened in INOX Wind's case.

So I would sincerely request you to remind this to your team that minority shareholders are not left high and dry in spite of all good things happening in the sector and in the company, Devansh.

Just a point I wanted to put.

Devansh Jain

Prateek, since you specifically mentioned that to me, I think we've been among the best performing stocks in India over the past 5 years.

We have done everything in the long-term interest of the company and we will continue to do whatever we think is right in the long-term interest of this company.

Whether it was merging IWL as promoters, we did not want that to happen.

As INOX Wind, we would not want that to happen.

So as a group, we've always focused on minority.

I am not going to be driven or coloured by short-term market apparitions and I'm not driven by the fact someone entered at a higher price, someone entered at a lower price.

If you look at our CAGR returns over the past 5 years, we've probably been in the top 10 or 15 stocks in this country.

So frankly speaking, as management, I think our team is doing whatever it takes to deliver numbers, profitability, execution on the ground and as promoters, entrepreneurs, we are backing them and doing everything which is in the long-term interest of this company.

So frankly speaking, I would not hear anything about us not being able to protect minority investor returns.

Prateek Giri

No, I get that Devansh.

That was not the point.

It was just that the equity dilution that has happened, the profits generated which I am very hopeful and I am very sure which will happen in the future…

Devansh Jain

Whatever is required to be done, Prateek, we will continue to do that.

And again, what is more important for us is the long-term growth of this company.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

Prateek Giri

Certainly.

Moderator · Conference Operator

The next question comes from the line of Nandan an Individual Investor.

Anshuman

Before Nandan begins, we'll take this as the last question.

Please.

Moderator · Conference Operator

Please go ahead.

Nandan, your line has been unmuted.

Please go ahead with your question.

Nandan

Hello.

Moderator · Conference Operator

Yes, sir.

Please go ahead.

Nandan

Yes, Yes.

Hi, congratulations on a great set of numbers.

Just two questions from my end.

Number one, I understand that we are sold out for the next 2 years, which is a great thing.

But is there some sort of opportunity loss in terms of loss of customers to a competitor?

Second question is in the lines of GST.

So there is a lot of news going around about the GST rates in the renewable sector being cut from 12% to 5%.

I understand the meeting is going to happen sometime this week.

So, do we see any sort of tailwinds due to the rate cuts, GST rate cuts?

Devansh Jain

Look, with respect to your first question, with respect to our saluting orders, I think Sanjeev reiterated it multiple times.

Kailash reiterated it.

I think we are growing it both horizontally and vertically where we are building on our existing relationships and we are diversifying to newer customers.

And that's true across NTPC, CESC, Ampless, Multiple Orders, First Energy, Hero, Continuum, NLC.

So that will continue to be the strategy.

Some orders, I mean we cannot be the sole supplier to any one customer.

So some orders we take, some competitors take.

In certain new accounts, customers, existing suppliers lose and we enter.

And I think that's how it is.

As I mentioned, we have a very diversified book today of 10-12 large customers whom we are supplying to.

The team continues to work on newer names.

So I think we are very, very solid on that.

With respect to the GST rates being cut, yes of course it's a tailwind because your capital costs will go down.

As a result, investment costs will go down.

So returns could go higher or the cost of energy could go lower.

Whichever way it is, it benefits the nation.

Nandan

Just one follow-up question on the GST aspect.

Will it have any impact from a customer point of view in terms of ordering flows or is it sort of neutral from that point of view?

Devansh Jain

I mean it will benefit the sector, right?

So, obviously it will potentially lead to more investments in the sector.

Nandan

Understood.

Thank you.

All the best for the next quarter.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, this was the last question for today's conference call.

I now hand the conference over to the management for their closing comments.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

Devansh Jain

So, I just wanted to end this call by saying two things.

I've been hearing, I mean, since our numbers came out about 3 weeks ago, barring the fact that there may be some micro questions which obviously most people can get on calls with our teams and get those answers.

There were two specific areas which I wanted to just assert and focus on.

There were questions around execution and order book.

And in execution as we have stated earlier as well, firstly we are firm on our annual guidance of 1,200 for this year and 2,000 for next year.

Our profitability numbers have consistently been ahead of what we've guided.

Over the past six quarters we had upgraded our guidances three to four times and we have after two quarters upgraded our guidances further in this quarter.

I think what is important for us is profitability and we are always driven by profitability rather than someone talking about 2%, 3%, 4% here and there in terms of mega wattage on a quarterly basis.

Annual numbers are what are relevant.

Secondly, with respect to the order book.

For us, what was most important was to get into the most leading power producers, which was strategic and we have achieved that by having initial orders from leading power producers, both PSU and private, whether it was NTPC and then we got two or three orders from NTPC.

In fact, I remember concerns earlier that we were only focused on PSUs, 2 years ago.

So then we refocused and spread ourselves across some of the largest IPPs, be it CESC, be it Continuum, be it Hero, be it Amplus, be it Gentari, Inox Clean, Oyster, NLC and I think what we are doing at this point in time is both horizontal and vertical growth, where we are not just building on the existing relationships, but we continue to enter newer names.

So, First Energy was one.

Over the course of the next couple of months you will probably hear a couple of newer names, which our team has been working on and is in final stages of closing out with those guys.

Important is to get into one new customer and once you get in, you keep expanding with those guys.

So, I think just to sum it up, we are very clear on our execution numbers and I think we are very, very solid in terms of the current order book and in terms of the visibility of building on this plus the fact that we have participated in multiple PSU tenders after a point in time to get back more volume in the PSU market.

Thank you and look forward to connecting with you all in the next quarter.

Moderator · Conference Operator

Thank you.

On behalf of JM Financial, that concludes this conference.

Thank you for joining us and you may now disconnect your lines.

Thank you.

Questions and answers

“Inox Wind Limited and Inox Green Energy Services Limited

basis. · Research Analyst

EBITDA of INR220 crores is an increase of 39% on Y-o-Y basis.

PAT of INR97 crores is again an increase of 134%.

Y-o-Y basis cash profit of INR186 crores is again an increase of 168%.

We executed 146 megawatt during this quarter.

We have very well diversified order book of 3.1 gigawatt, comprising of marquee clients across the spectrum, and a healthy mix of turnkey and equipment supply contracts.

Our endeavour over the past year has been to build on our existing relationship to get more repeated orders, and in case of new customers, to get our first orders, however small or large it may be, as it is important to break through to build a long-term relationship and ensure repeat orders in the future.

We expect to gain a fair share out of the opportunities coming in from our existing and potential customers, most of whom have very ambitious renewable additional plans.

Currently we have a multi-gigawatt order pipeline and expect to convert a substantial portion into firm orders over the coming months.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025 To achieve our target both in terms of execution and margins, we are continuously ramping up in the critical areas.

We have recently operationalized our new 1200 megawatt capacity nacelle and Hub manufacturing unit near Ahmedabad, Gujarat.

We have also deployed the first few set of cranes at our project sites and have commenced our transformer manufacturing facility as well, all under Inox Renewable Solutions.

We are confident that these initiatives will aid faster execution and deliver higher than industry average margins.

With that we are raising our margin guidance to 18% to 19% for the full year FY '26 from 17% to 18% earlier.

Further we are strategically expanding our blade manufacturing capacity and are in process of setting up another facility in south part of India.

This will improve our access to the sites in the southern states of Karnataka, Tamil Nadu and Andhra Pradesh.

We have recently raised INR175 crores at Inox Renewable Solutions at a valuation of approximately INR7,400 crores.

Further the scheme of demerger of substation business from Inox Green and subsequent merger into Inox Renewable Solutions has received no objections from the stock exchanges and we have filed the scheme in NCLT as well.

We expect the approval to happen within next two to three quarters.

On the macro side, the outlook remains strong.

I believe the government continues to stand firmly behind the wind industry.

This is not just desirable but a necessity given the thrust to replace conventional fossil fuel based power with renewable sources.

While solar will continue to lead this space, wind will continue to play a significant role in giving its complementarity to solar and generation during non-solar hours and wind role in grid balancing and making efficient usage of the transmission network.

There is also some sort of a myth that solar plus BESS will completely replace the conventional power without much role of wind.

However, this is not right understanding as BESS is only a storage resource and not a generating resource.

16 hours of BESS is still not financially viable which is why wind’s role in RTC set up is critical and will remain critical.

The recently notified DCR for wind through ALMM is a very strong boost for local manufacturing as bringing in a level playing field between the domestic manufacturers and certain Chinese players who are importing components today.

This is a very positive move at the right time and we believe that India's supply chain is self-sufficient to cater to the incremental demand coming due to this policy.

Inox Wind having a largely domestic supply chain expects to be a substantial beneficiary of this policy.

Finally, just yesterday the CERC notified the amendment to the connectivity and the GNA regulations for the interstate transmission system allowing hybridization of existing solar and wind transmission projects with capacity upwards of 50 megawatts.

This opens up a very large opportunity for IRSL as our project site infrastructure post hybridization with solar now increases multiple times.

I would like to hand it over to S.K.

Mathu Sudhana, CEO of Inox Green for his remarks.

Mathu, over to you.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

S.K. Mathu Sudhana

Thanks, Sanjeev and Kailash.

Good evening, everyone.

I am pleased to inform you that Inox Green has been able to deliver a very strong Q1. I will firstly brief you on our financial achievements during the quarter before moving to other aspects.

During Q1 FY '26, consol Inox Green reported total income of INR98 crores, up by 79% year- on-year basis.

EBITDA of INR48 crores, up by 61% year-on-year basis.

Profit before tax of INR33 crores, 17.5x year-on-year basis.

Profit after tax of INR22 crores, up by 4.4x year-on- year basis.

Cash PAT of INR44 crores, up by 140% year-on-year basis.

Our EBITDA margin came at around 49% for the quarter.

As we have always maintained, our other income mainly comprises of value-added services which we provide to our customers which are beyond the scope of the services we provide under the contracts.

During the quarter, the machine availability for entire portfolio averaged around 95.6%.

Inox Green added approximately 1.6 gigawatt peak of solar O&M contracts to its portfolio in the month of April to May 2025.

Our move into solar O&M has been strategic given that one of our group companies has recently commenced solar module manufacturing and the imminent large scale opportunities for hybrid, RTC, FDRE projects.

Our total renewable O&M portfolio stands at approximately 5.1 gigawatt.

Additionally, we signed an agreement for the comprehensive O&M of 182 megawatt of wind projects of one of India's largest diversified conglomerates as well.

Inox Green is rapidly expanding its portfolio through both organic and inorganic means.

On acquisitions, we are continuously working with multiple parties on large scale opportunities.

We have made investments in an entity around 2 gigawatt of O&M assets and shall keep on looking for such opportunities to expand our portfolio inorganically as well.

Further, we are participating in multi-gigawatt scale wind and solar O&M tenders of IPPs as many of the large companies have now changed their strategies and are now moving out of capital O&M to outsourcing model where we believe Inox Green has an edge given its strong credentials.

Finally, with a scheme of demerger of substation business from Inox Green, its subsequent merger into Inox Renewable Solutions receiving no objection from the stock exchanges, we have now filed the scheme in NCLT Ahmedabad.

Once the scheme is approved by the NCLT, the gross block of around INR1,000 crores will be off our balance sheet and subsequently the depreciation of approximately INR50 crores to INR55 crores annually will be eliminated, thereby increasing the PBT by that amount.

It will also lead to significant improvement in the ROE and ROCE of Inox Green.

We expect the approval in the next 2 to 3 quarters.

I will now hand over to our Executive Director, Mr. Devansh Jain, for his remarks after which we will open the floor for the Q&A.

Thank you.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

Devansh Jain

Thanks, Mathu.

At the outset, I would like to thank all our investors for reposing their faith in Inox Wind time and again.

Your support drives our vision to make Inox Wind even stronger in all aspects.

While Kailash, Sanjeev and Mathu have already briefed you all on the recent developments and the outlook for our respective companies, I would like to reiterate that all our past initiatives as well as all our future actions are taken with just one goal.

It should be beneficial and value accretive for the company in the long run.

Our wind business is stronger than ever today and is ramping up very fast.

While we continue to deliver on a quarterly basis, our targets and guidance for all our businesses are on an annual basis and we are staying firm on our execution guidance while increasing our margin guidance as we have consistently delivered superior margins and are confident of achieving 18% to 19% EBITDA margins for the consolidated wind business.

While wind manufacturing is on a very solid growth platform built over the years, Inox Green is where I am extremely bullish on in terms of exponential growth which should start kicking in from this financial year as we ramp up our portfolio multiple times from 5 gigawatt currently to about 17 gigawatts over the next two years.

While 17 gigawatts will have a mix of both solar and wind assets, wind will form the majority of the pie.

As promoters, our motivation is to create and enhance value across our group companies and always be mindful of all our minority shareholders, case in point being the merger of IWEL with IWL.

Our IPP arm and the solar manufacturing business under Inox Clean are also shaping up very well and the synergies between Inox Clean's businesses with Inox Wind, Inox Green and Inox Renewable Solutions are quite unique and beneficial for all.

Backed by the large capacity targets of Inox Clean, we expect further orders for Inox Wind, EPC opportunities for Inox Renewable Solutions and long-term O&M service opportunities for Inox Green, both across wind and solar.

Today I can proudly say INOXGFL Group is one of the deepest and most integrated energy transition groups in the country with a presence across wind, solar, EVs, energy storage and a large IPP play now.

Our renewable arm is extremely solid, capitalizing on opportunities and capable to withstand any challenges, regulatory or macro, if they were to come.

I believe our group's renewable arm, and particularly Inox Wind, continues to be strongly positioned to capture the mega opportunities which lie ahead of us and will continue to create enormous value for all our stakeholders.

Given that the industry is moving towards round-the-clock RE projects, at INOXGFL Group, we have strongly positioned ourselves to be a one-stop-shop for all our customers, offering solutions right from plain vanilla to the most complex projects across wind, solar, desk, infrastructure development and O&M services.

We can now open the floor for Q&A.

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The first question comes from the line of Hansal Thakkar from Lalkar Securities.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

Hansal Thakkar

First of all, congratulations on the successful completion of the merger of IWEL into IWL and a very successful rights issue.

It is also very encouraging to note that the recent demerger of the evacuation business from IGESL into IRSL has seen no objections.

And given that our company has experienced so many corporate actions, I have a specific query regarding our subsidiaries, which are Inox Green Energy Services and Inox Renewable Solutions, formerly Resco.

Sir, as I recall, Mr. Jindal had mentioned in the past that the management will demerge these two subsidiaries, albeit those proposals were at a nascent stage.

So my question is, on a longer term strategic view, what is the management's stance on the possibility of rationalizing these subsidiaries via demergers into the hands of the IWL shareholders?

So Inox Wind Limited shareholders will likely get IGESL and IRSL via demerger.

I wanted to know the management's view on this.

And what circumstances would this step be considered?

Akhil Jindal

Thank you for firstly recognising and understanding the achievements of the company so far.

As I mentioned to you last time, the attempt was to de-merge the substation business and the connectivity and common infrastructure from INOX Green into Inox Resco.

As we call it now, INOX Renewable Solutions Limited.

Under that, there would have been an automatic listing of Resco.

And to that extent, the shareholders of INOX Green would be getting the shares of INOX Resco also.

So when we mentioned about the de-merger of the businesses, it was de-merger of the infrastructure assets and getting into that INOX Resco.

And that Resco in turn will get listed.

That's the attempt and which is what now we have got all the necessary approvals.

The NCLT process has started and we hope that within two to three quarters, this all will be achieved and the shares could be issued for INOX Resco also.

Hansal Thakkar

Sir, I recognise that that is what has been achieved.

But more as a strategic question, I want to know would the management ever consider de-merging Resco and INOX Green Energy Services to the shareholders of IWL at a future date?

Devansh Jain

No, I don't think we can answer that question at this point in time but clearly both of them are integral parts of Inox Wind.

And for valid reasons, I see no reason why we would be de-merging them out of Inox Wind.

They both will constitute an integral part and will continue to be owned and held by Inox Wind.

Akhil Jindal

And I think from a shareholder's perspective, a shareholder has got now a choice to hold any part of the business.

He can hold the O&M business, he can hold the infrastructure business, he can hold the entire value chain together under Inox Wind.

So that way I guess there is no need for any other further corporate action.

As management, we have provided enough window for a shareholder to be present where he wants to be.

And I think that was the intention of separating these businesses.

Hansal Thakkar

Noted, sir.

Thank you so much and all the best.

Moderator · Conference Operator

The next question comes from the line of Nidhi Shah from ICICI Securities.

Please go ahead.

Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025

Nidhi Shah

Yes, thank you so much for taking my question.

So my first question is on the execution for Q1 FY '26.

We see that the execution is up only 4%.

Was there any reason why there is this low level of execution?

And given that the first quarter has been slightly weak, what do we expect for FY '26?

Are we still keen on our previous guidance?

Devansh Jain

I am not sure where you got the 4% number from.

Nidhi Shah

In megawatt terms, 4%.

Devansh Jain

Yes, but effectively I think how we would look at it is we would always look at it year on year.

And I think if you look at it on a year on year basis…

Nidhi Shah

So, this year Q1 it was 146 megawatts.

Last year Q1 it was 140 megawatts.

Devansh Jain

Nidhi, can you reiterate your question?

I am sorry, we are a little confused.

Nidhi Shah

So this quarter in Q1 FY '26, megawatts executed was 146.

In Q1 FY '25, execution is 140 megawatts, which is roughly a 4% increase in the megawatt execution of WTG.

So I just wanted to know why this execution is slightly lower.

Devansh Jain

So again, I think if you broadly understand, we have added for H1 being about 35%, H2 being about 65%.

And I think we have clarified on record, we are well on track for full year guidance.

Why numbers seem a little lower as you would see is because effectively what we focused on is more execution on the ground, completing complete sets.

Because last quarter if you had noticed Q4 of the previous financial year, we had a mismatch in terms of blades and towers.

And we have tried to correct all of that over this quarter rather than just supplying turbines for the sake of announcing megawattage.

What we are increasingly focusing on is complete sets, more execution on the ground and working capital efficiency.

And that is what is driving the numbers which you talk about to be only 4%, even though EBITDA scaled up much higher and PAT numbers are much higher.

Nidhi Shah

So, my understanding from what you said is broadly that when you record the megawatt execution, that is only when the turbine leaves the factory and then the entire procedure would actually be installing the turbine as well.

Is my understanding correct?

Devansh Jain

That is right.

But in certain contracts, for example, we get paid in parts where we can just dispatch nacelles, we can dispatch towers, where we can dispatch blades.

And in effect, we had announced it last year as well, where we had certain amount of incomplete sets.

What we have tried to do over this quarter is completely clear up that backlog.

And while you speak of a 4% growth in execution, if you would look at our cash PAT, that is going to 168%.

If you look at our PAT, that is going to 134%.

So I would urge you to look at the financial numbers, then just pair metrics of megawatts.

Sanjeev Agarwal

I said in my statement that we are well poised to achieve our 1.2 gigawatt of planned execution in this year.

The strategy was as what Devansh just said, strategy for the quarter one was to Inox Wind Limited and Inox Green Energy Services Limited September 01, 2025 complete the incomplete set which has gone in quarter four.

The execution at this point in time, why we say that H1 is lower than H2 is typically we take care of the monsoons.

If you see where we are working, these are the state of Gujarat typically.

The biggest states that we are working majority in time is Gujarat.

When we go in quarter two, quarter three, we will move to south part of India.

These climatic conditions also need to be taken care of, when you decide your execution.

Once again, reiterating that we are well poised for 1.2 gigawatt of our planned execution.

Strategically, H1 is always weak and H2, you will see our ramp-up.

Nidhi Shah

To that effect, you mentioned that some sets were incomplete in Q4 that were provided that have then been completed in Q1. When is it reflected in the execution?

At what stage do we then include it?

Because from what you are saying, it seems like it was already, the set was accounted for in Q4, but it was completed in Q1.