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

SERVICES LIMITED · MR. S K MATHUSUDHANA – CHIEF EXECUTIVE

MR. S K MATHUSUDHANA – CHIEF EXECUTIVE OFFICER, INOX GREEN ENERGY SERVICES LIMITED MR. ANSHUMAN ASHIT – HEAD (INVESTOR RELATIONS), INOX WIND AND INOX GREEN ENERGY

Moderator · Conference Operator

MR. SUDHANSHU BANSAL – JM FINANCIAL

INSTITUTIONAL SECURITIES LIMITED · Management

Inox Wind and Inox Green Energy Services Limited February 13, 2026

Moderator · Conference Operator

Ladies and gentlemen, good day and welcome to Inox Wind and Inox Green Q3 FY '26 Earnings Conference Call hosted by JM Financial Institution Securities Limited.

This conference call may contain forward-looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call.

These statements are not guaranteed for future performance and involves risks and uncertainties that are difficult to predict.

As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing ‘*’, then ‘0’ on your touch-tone phone.

Please note that this conference is being recorded.

I now hand over the conference to Mr. Sudhanshu Bansal from JM Financial.

Thank you and over to you, sir.

Sudhanshu Bansal

Thank you.

Good evening, everybody.

On behalf of JM Financial, I welcome you all to the Q3

Moderator · Conference Operator

Thank you.

The next question is from the line of Deepak Poddar from Sapphire Capital.

Please proceed.

Inox Wind and Inox Green Energy Services Limited February 13, 2026

Thank you.

The next question is from the line of Prit Nagersheth from Wealth Finvisor.

Please proceed.

Prit Nagersheth

Yes.

Hi.

Sir, I want to understand, again on Inox Green, post the demerger, how much revenue will come off?

Moderator · Conference Operator

Thank you.

The next question is from the line of Darshit Shah from Nirvana.

Please proceed.

Darshit Shah

Hi, sir.

So my question is pertaining to the guidance.

So I don't find any logic in the guidance from megawatt to kind of new numbers in spite of saying that we are lowering our execution in guidance, you kind of changed the methodology of giving the guidance.

And look at your numbers, what you are quoting right now.

So it roughly points out that probably next year what you are guiding is 2 gigawatt in spite of, you end up doing somewhere around 1.3-1.4 gigawatt.

So can you highlight what has changed in the last 2-3 months that we are kind of lowering this execution guidance which we gave 3 months back?

Moderator · Conference Operator

Thank you.

The next question is from the line of Ketan Jain from Avendus Spark.

Please proceed.

Inox Wind and Inox Green Energy Services Limited February 13, 2026

Ketan Jain

Thank you.

Thank you for the opportunity.

Yes, I just have a follow up on the previous participant's question.

I just want to understand from a strategic point of view, what are the challenges which made us revise the guidance?

Like what are the exact challenges on the ground, external challenges, which is not in our control, which made us change our outlook from previous quarter to this quarter?

So this question is just to understand what are the challenges you are facing exactly?

Kailash Tarachandani

I think these are very routine.

Actually, I won't say challenges as part and parcel of doing infrastructure development in this country.

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.

These are usual things.

If you ask me, very frankly, my all turnkey projects are going more or less on time we are executing quite well.

But since the business has moved from the structure has changed 50%, independent and I hold my own EPC project, 50%, I am dependent on my customers.

In terms of as they keep catching up some of these IPPs and all that, we continue to do that.

So going forward, we are anyway planning that so that at the same time we have a judicious control over our working capital and inventory also.

So instead of looking at megawatt, we just focus on revenue side.

Moderator · Conference Operator

Thank you.

The next question is from the line of Keval Barot from Axis Securities.

Please proceed.

Keval Barot

Yes.

Hello, sir.

So my first question is, as given that India targets 122 gigawatt of installed wind capacity by FY '32 versus currently it has been 55 gigawatt of installed capacity.

So there is a long road runway in the sector.

And your execution guidance for FY '28 is 2000 megawatt.

Now, considering land acquisition issues, power demand, slowdown and competitive landscape, especially Chinese players, I wanted to know your view on the run rate regarding 2000 megawatt execution as you have mentioned it earlier that you have changed the parameters of recognizing it into revenue terms.

But I just wanted you to shed light that will that be maintained or sustainable for the next 4-5 years after FY '28?

Kailash Tarachandani

Two parts to this, because as I see that still country is looking to reach 100 gigawatt by 2030 or you said whatever, 2030 and we are at 55 gigawatt.

Obviously, it almost involved 8-10 gigawatt.

I will not comment because the execution is a challenge and it is there for all the player assets.

But still, if you see the way we are growing from 2-3 gigawatt to now 4 and this year almost reaching 6.

So I see the story remains very positive.

And as I said earlier in my discussion, in fact, all states customers are working and in all states, I see that a lot of visibility in terms of wind turbines and projects are coming up, which was not just a year or 2 years back because not all states were working and there were some policy issues here and there.

And number two, if you see that PGCIL started building up lots of infrastructure and connectivity only after 2021, when the regime change it came to auction based and all that.

So a lot of CTU connectivities are getting commissioned between different states from 26-30.

So to cut it short, I say the challenges are there and it will remain in this country from execution point on the ground.

But it is still not very negative.

It is still very positive.

And from our side, it is just as I said, different scope and different.

So our whole approach is now to go more on revenue focus instead of going on megawatt.

But at the same time, nowhere I am saying in future from that point of view, it will mean that lowering the execution.

We will continue to see that what best we can do in terms of execution to achieve our goals.

Keval Barot

Got it.

My second question is on the basis of guidance.

So could you please share your CAPEX guidance for FY '27 and FY '28?

Also, how much CAPEX has been incurred in 9 months FY '26 and what is the full year FY '26 CAPEX target?

And additionally, what EBITDA margin guidance are you giving for FY '27 and FY '28?

And sorry to stretch it out, but also respectively, what kind of realization per megawatt for FY '27 and FY '28 on a blended basis, considering 4 megawatt turbines has been launched and is operational?

Moderator · Conference Operator

Thank you.

The next question is from the line of Aditya Welekar from Axis Securities.

Please proceed.

Aditya Welekar

Yes.

Thank you for the opportunity.

So I understand the discussion on the call that you have changed from gigawatt to revenue.

And that is well understood.

But earlier in the slides, we had guidance of 2 gigawatt from FY '28 onwards, which kind of giving us the kind of sustainability of our business and the kind of maximum capacity which we can reach earlier.

But now you have said that 75% growth in FY '27.

So post that, what will be our outlook?

How shall we look at revenue growth post FY '27?

Can we assume that our 2 gigawatt capacity to execute will be intact or there is some challenges and we can expect that revenue growth will taper down post FY '27?

How should we look at?

Moderator · Conference Operator

Thank you.

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

Please proceed.

Vikash Agarwal

No, sir.

My questions are answered.

Moderator · Conference Operator

Thank you.

The next question is from the line of Harsh Motika from SKP Securities.

Please proceed.

Harsh Motika

Hello.

Hi, good evening, sir.

Thank you for taking my question.

Just wanted to understand that the realizations have dropped both Q-on-Q and Y-o-Y.

So can you please explain why this has happened?

S K Mathusudhana

Could you come again, please?

Harsh Motika

Yes.

Hello, sir.

Is it better now?

S K Mathusudhana

Yes.

Please.

Harsh Motika

Sir, I was asking that the realizations have gone down both Q-o-Q and Y-o-Y.

So can you please tell us what is happening?

Why the relations have fallen by 10% odd?

Moderator · Conference Operator

Thank you.

The next question is from the line of Pratik Jain from ICICI Prudential.

Please proceed.

Pratik Jain

Thanks.

Sir, just a couple of questions.

So one is that since you mentioned that for the sake of ease of investors, you are moving from megawattage to revenue.

So would that again be H2 heavy or would the run rate be similar across the 4 quarters?

How should we look at it?

Kailash Tarachandani

It will be always H2 heavy.

H1 is many times leaner because of monsoon, to be honest.

So that remains the fact.

So while quarter 1 will be again very good.

But quarter 2 will definitely diminish the overall H1.

Pratik Jain

Understood.

And sir, secondly, that number you mentioned, the 4.5 gigawatts in FY '26.

So what will be your market share in terms of commissioning in FY '26 till now?

Kailash Tarachandani

4.5 megawatt.

No. Just clarify your question again, please.

Pratik Jain

So I am just asking what is Inox wind commissioning number at an all India level in 9 months, we did 4.5 gigawatts.

So what is our share in that 4.5 gigawatts?

Moderator · Conference Operator

Thank you.

The next question is from the line of Deepak Motwani from Marquee Investment Managers.

Please proceed.

Thank you.

On behalf of JM Financial Institutional Securities Limited, that concludes this conference.

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

Thank you.

Questions and answers

“Inox Wind and Inox Green Energy Services Limited

megawatt numbers. · Research Analyst

For FY '26, we expect to achieve a consolidated revenue of over INR 5,000 crore, translating to over 35% Y-o-Y growth.

Further, we are substantially upgrading our full year FY '26 EBITDA Inox Wind and Inox Green Energy Services Limited February 13, 2026 margin guidance to 20-22% versus 18%-19% earlier.

For FY '27, we expect our consolidated revenue to grow by around 75% over FY '26 with EBITDA margin of 20%-22%.

The shift in our guidance from megawattage to financial number is on account of the complexities of the nature of the business that we are in today.

Today, we are working across more than 25 sites with over 15 customers, all of whom have different scopes in the contract.

This may include plain equipment supply with no EPC, equipment supply with limited scope, EPC which may include foundation, erection, with cranes, without cranes, apart from end-to-end turnkey.

In the recent quarters, we have witnessed delays at the customer sites resulting in postponement of off-take of wind turbines, which is beyond our control.

This is something which most of the industry participants are facing currently.

Our order book has changed substantially over the past year from being largely turnkey to 50-50 turnkey and equipment supply currently.

Consequently, delays at the customer end on equipment supply projects are tough to make up with increase in turnkey execution during the year, as turnkey involves a lot of advanced planning.

However, we have been able to make up for the lower off-take by undertaking certain other activities, thereby ensuring that we deliver on our annual business plan.

Wind continues to be integral to India's renewable growth story.

With India's power sector poised to deliver its best-ever annual capacity addition figure in Financial Year ‘26 and moving towards 10 gigawatt annual capacity addition in the coming years, Inox Wind is well placed to deliver tailor-made wind solutions for the ever-evolving customer requirements.

I would now hand over to Mr. S K Madhusudana - CEO of Inox Green, for his remarks, after which we will open the floor for Q&A.

Thanks.

S K Madhusudana

Thanks, KT.

Good evening, everyone.

I will first brief you on the financial achievements of Inox Green during the quarter before moving to other aspects: During Q3 FY '26, Inox Green reported total income of INR 112 crores, up by 51% year-on- year, EBITDA of INR 53 crores, up by 80% year-on-year, profit before tax of INR 40 crores, up by 261% year-on-year, profit after tax of INR 25 crores, up by 375% year-on-year, cash-back of INR 51 crores, up by 116% year-on-year.

Machine availability for entire portfolio averaged around 96.5%.

As we have maintained, a significant part of our profitability is currently being reported as other income.

As per the accounting norms, however, these are operating in nature.

Inox Green's portfolio stands at 13.3 gigawatt, comprising of around 10 gigawatt of wind assets and 3.3 gigawatt peak of solar assets.

This also includes the investments which we have made to acquire 6.5 gigawatt of operational wind O&M assets of two major companies.

We expect to complete the acquisition process soon, consequent to which the consolidation of financials into Inox Green will result in a multi-fold increase in consolidated EBITDA and PAT for FY '27 over FY '26.

Inox Wind and Inox Green Energy Services Limited February 13, 2026 Inox Green has witnessed strong portfolio growth, adding solar projects from KEC International and group company Inox Clean.

We continue to work on unlocking further synergies amongst our existing and recently taken over assets to improve the performance and margins from the assets.

With all our investments formally folding into Inox Green's balance sheet, along with organic growth, we expect the EBITDA for FY '27 to be upwards of INR 600 crores.

We have recently seen success in offering WTG overhauling packages to customers which will aid in increasing the life of the turbines and enhancing output.

This business stream has substantial potential for growth going ahead.

At Inox Green, as part of our digital initiatives, we are also exploring the development and deployment of specific agent AIs across low-value ad job profiles to enhance the speed of execution and increasing margins and reducing the manual dependencies.

Finally, I would like to inform our investors that the scheme of demerger of substation business from Inox Green and its subsequent merger into Inox Renewable Solutions is in the final stages of hearing at Hon’ble NCLT Ahmedabad.

Once this scheme receives the final approval from the NCLT, gross block of around INR 1,000 crores will be eliminated from Inox Green's balance sheet and subsequently, the annual depreciation of around INR 50-INR 55 crores will be eliminated thereby increasing the profitability.

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

We will now open the floor for the Q&A.

Thank you.

Moderator · Conference Operator

Thank you very much, sir.

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

The first question is from the line of Nidhi Shah from ICICI Securities.

Please proceed.

Nidhi Shah

Sir, thank you so much for taking my question.

Since you have withdrawn the guidance in megawatt terms, how are we looking at Q4?

Are we seeing any recovery in terms of the fact that as you mentioned there were delays?

Are the issues in the project getting sorted out?

What do we think that Q4 installation could look like?

Kailash Tarachandani

Hi, thanks for the question.

Obviously, we have given revenue guidance this time for FY '26 and FY '27 as well, FY '27 being 75% growth over FY '26.

Given that 9 months have passed, you can make out broadly what the revenues will be for Q4. You can in fact infer on the megawattage side as well.

We have been consistently giving the per megawatt revenue figures over the last quarters.

So they can be inferred.

Now, on the issues, as you are well aware, it is not a company- specific issue.

It is there across the industry.

What we have been seeing is that a lot of customers that we have, especially on the equipment supply side with the contracts which we have taken over the last 1 to 1-1/2 years.

Many of the sites are not ready to the extent that it was planned.

So some of the customers may have taken some components, not all components which is why there is a lot of variability.

So in terms of megawattage number giving you a particular megawattage may not give you the right picture.

Inox Wind and Inox Green Energy Services Limited February 13, 2026

Deepak Banga · Research Analyst

Thank you very much for this opportunity, sir.

Sir, I just wanted to touch upon your debt levels, debt part.

What is your current gross debt level as of 3Q?

And how do we see the debt level in the next 1-2 years?

Do we have that figure separately?

The gross debt and the cash level?

That would be from my side.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Utkarsh Somaiya from Eiko Quantum Solutions Private Limited.

Please proceed.

Utkarsh Somaiya

Thank you for the opportunity.

I have a couple of questions.

The INR 600 crores EBITDA guidance that you have given for FY '27 will be on the entire portfolio of 13.3 gigawatts?

S K Madhusudana

Yes, this is what will be on the entire portfolio that we have given.

Just to clarify for the larger audience, this he is referring to for Inox Green EBITDA guidance.

And this is on the entire portfolio of 13 gigawatts.

Utkarsh Somaiya

Sir, I just need some help with the math.

We have assumed INR 10 crore revenue per gigawatt for wind and?

S K Madhusudana

10 lakh per megawatt.

Utkarsh Somaiya

Yes.

It is 10 lakh per megawatt.

S K Madhusudana

Yes.

Revenue was around INR 100 odd crores.

Deepak Banga · Research Analyst

Hi, sir.

Good evening.

What is the current visibility on additional order inflows for Inox Wind Limited?

And can you provide any guidance on the expected order pipeline over the next 6-9 months, 12 months?

Kailash Tarachandani

Overall, as on date, we still have around 3.2 gigawatt, which gives us a certainty of next 1-1/2 to 2 years if you ask from that point of view.

But at the same time, lots of orders are in advanced stage.

And very soon we should be announcing, I think, before end of this quarter.

A lot of tenders have come.

A lot of internal discussions are going on.

I have internal pipeline.

Many of those things I have not added on that.

So if you go quarter wise, we will always be ahead of what we say in terms of execution and what we get in terms of order booking.

So we are like.

Today, actually, order booking is not a problem.

It is about how we deliver and how we continue to execute.

Deepak Banga · Research Analyst

Got your point.

Thank you so much.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, that was the last question for today.

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

Over to you, sir.