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 · MS. SWETA SULTANIA – HEAD (INVESTOR
MR. KAILASH TARACHANDANI – GROUP CHIEF
MR. AKHIL JINDAL.
GROUP CFO, INOXGFL GROUP MR. SANJEEV AGARWAL – CHIEF EXECUTIVE OFFICER – INOX WIND LIMITED MR. S.
K.
MATHUSUDHANA – CHIEF EXECUTIVE
OFFICER – INOX GREEN · MR. MANISH GARG – SENIOR GENERAL MANAGER,
MR. MANISH GARG – SENIOR GENERAL MANAGER,
INOXGFL GROUP · MS. SWETA SULTANIA – HEAD (INVESTOR
MS. SWETA SULTANIA – HEAD (INVESTOR RELATIONS), INOX WIND AND INOX GREEN ENERGY SERVICES LIMITED
Moderator · Conference Operator
MR. SUDHANSHU BANSAL – JM FINANCIAL
INSTITUTIONAL · Management
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Moderator · Conference Operator
Ladies and gentlemen, good day, and welcome to Inox Wind and Inox Green Energy Services
Thank you very much.
We will now begin the question and answer session.
The first question is from the line of Vikas Agarwal, an Individual Investor.
Please go ahead.
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Vikas Agarwal
Congratulations on very good results.
I just like a few pointers from the management.
Can I -- am I audible?
Moderator · Conference Operator
Yes, you are.
Vikas Agarwal
The assets which have been taken over by Inox Green as an investment, can the management guide on the EBITDA profile or the margin profile on the same?
Secondly, one of our peers in the wind segment, they are diverting from equipment to more of a turnkey.
So I would like to ask for management why is the management -- what is the view of the management in shifting their view from majorly turnkey to equipment supply?
As in we understand that our management had a view and they had a large land bank and -- which can be translated as a -- more for the EPC business, I guess.
So any guidance for the Inox Green for FY27?
Also, if the management would highlight as in the wind segment strength against solar plus BESS in view of the battery prices and now that the FDRE projects are more focused on getting battery online?
Thank you.
S. K. Mathusudhana
Let me -- this is Mathu, let me answer for Inox Green first.
So your questions on the two acquisitions, which will roughly contribute a 50% EBITDA margin, because both are all the previous OEMs with the substations and all those evacuation systems.
So this gives a similar EBITDA margin, which is roughly 50%.
Second, for the projection of FY27, we have already guided it will be north of INR600 crores.
And let me hand over to Mr. Sanjeev for the question related to Inox Clean.
Sanjeev Agarwal
Thank you so much.
And probably Kailash can complement me.
So you asked this question to say why are we moving?
So let me put it right.
We are not moving out.
One-third of our capacity is now being built up by our own group company, Inox Clean.
I mentioned that 3+ GW is coming from our own INOX Green -- sorry, INOX Clean, anyway, we will continue to do EPC for them.
So with that large capacity being filled from Clean and some select few customers that we will decide, we will make a decision of EPC, but predominantly, predominantly, the strategy going forward would be to do an equipment supplier with majority of our capacity being reserved or available for either the jobs which are under execution or to INOX Clean, which gives us almost one-third of the capacity.
Moderator · Conference Operator
Sorry to interrupt, may we request Mr. Agarwal to please rejoin the queue.
Thank you.
The next question is from the line of Prit Nagersheth from Wealth Finvisor.
Please go ahead.
Prit Nagersheth
Yes, hi.
This question is for Inox Green.
So you mentioned INR600 crores of EBITDA for the following -- for FY27. Now if I do the math, so I'm basically getting, say, the closing capacity for FY26, somewhere around 3.5 gigawatts.
For FY27, you'll be executing the full 75% additional capacity.
But for the full year, maybe one can look at, say, getting a part of that into the calculation.
The acquisition of 4.5 gigawatt is still on waiting for NCLT clearances, right, if I'm not wrong.
And the additional 2 gigawatt of acquisition is also waiting for more clearances.
So how are you getting to the INR600 crores run rate?
Is that based on the quarter 4 number for FY27?
Or are you expecting this to start coming from quarter 1 itself?
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Devansh Jain
So first and foremost, with respect to Inox Wind zones capacity, Mathu will take you through.
I'll probably just step in on the acquisitions.
As you may be aware, both the companies are -- we control the COC across the companies, and investments into them are majorly owned by us.
Having said that, with respect to entity one, the order is reserved in the next couple of weeks.
Once that order is out, all the accruals of that company from the date of taking over that asset belong to us.
So whether it gets affected in Q1 or Q2, all the revenues, all the profitability of that company will accrue over the course of the full financial year.
Second, with respect to the second entity, which we control, which we acquired, it's in the final phases of EOIs and submissions.
So I would expect over the next 60 to 90 days, that would also see light of day.
Over the course of FY, while it's very difficult to give you a specific time line, whether it's going to be June or May or July or August when it will get merged into our entity.
But effectively over FY27, both these entities will be part of Inox Green and the revenues and the profitability of these entities from 1st April '26 will be reflected in the consolidated results of Inox Green.
Prit Nagersheth
Okay, got it.
Thank you, Devansh.
Thank you was very useful.
And if -- sorry, if someone can give me the sense how much to consider for the Wind side?
Moderator · Conference Operator
Sorry to interrupt, may I request Mr. Prit to please rejoin the queue.
Thank you.
The next question is from the line of Prateek Jain from ICICI Prudential Asset Management.
Prateek Jain
Yeah, am I audible?
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Moderator · Conference Operator
Yes, you are.
The next question is from the line of Prateek Giri from Subh Labh Research.
Prateek Giri
I hope I'm audible.
Sanjeev, my first question is regarding the execution of order book.
So for the past two, three quarters, we have been listening about challenges like right of way, grid connectivity, etcetera, for execution rather the erection of the turbines.
I just wanted to get your sense on how are things looking now?
Is it addressed to an extent or are we still facing those challenges?
Sanjeev Agarwal
Thank you so much.
So just to give you a sense, again, let me reiterate, I said in my speech that we are pivoting towards equipment supplies.
More and more the backlog today, I would say 50% is the backlog today with equipment supply.
And this would -- going forward, maybe going up to even more than 75%.
Coming to the jobs in execution, we hope with the present execution strategy that we have by H1, majority of our EPC projects would be over.
Other than one leading job in execution, majority of our EPCs would be closed, completed waiting for statutory compliances to get into commissioning mode.
Prateek Giri
I get that.
Just one follow-up on this.
So probably we have reported 3.1 gigawatt of order book in the investor presentation.
How much of that order book is from the group company Inox Clean, Sanjeev?
Sanjeev Agarwal
Presently, zero.
From Inox Clean Limited, it is around 500 megawatts, which is unexecuted.
So you can consider broadly 16%-odd from Inox Clean,
Moderator · Conference Operator
Thank you.
The next question is from the line of Deepak Poddar from Sapphire Capital.
Sorry to interrupt.
Mr. Kumar, may we request you to please rejoin the queue.
The next question is from the line of Ujjwal from ANR Capital.
Please go ahead.
Mr. Ujjwal please go ahead with your question your line is unmuted.
Ujjwal
Hello?
Am I audible?
Moderator · Conference Operator
Yes you are.
Please go ahead.
Ujjwal
I just had a very straightforward question.
Actually, I've been following the company for quite a while.
And my main concern was that we have constantly been overcommitting and under delivering.
Whenever it has come to a lot of the metrics, whenever it was like first we guided on megawatts, then we changed the entire metric and said that we will be guiding on revenue terms.
Then even that we have not been able to achieve that.
And fall short.
If we look at the quarter 4 performance, there have been decline Y-o-Y.
And when I look at our peers, they are doing upwards of 40% growth.
So I just want to understand why?
What is the reason for this?
Devansh Jain
Look, I think first and foremost, what we need to look at what has the company achieved over the past 4 years, I beg to disagree completely on the fact that we have failed miserably in achieving targets which we've been giving quarter-on-quarter.
I think for 3 to 4 straight years, we've achieved every single target.
Our EBITDA targets every quarter are beaten.
Our revenue guidance’s have been upgraded consistently over the past couple of years.
Inox Wind and Inox Green Energy Services Limited May 29, 2026 Yes, over the course of this year, we faced certain challenges.
Even when we shifted over to a revenue guidance and guided for INR5,000 crores in the last quarter, it was subject to force majeure.
I don't think you or I would have known there would be a world war kind of a situation where ships don't come in, where ports don't clear materials, where customers hold back payments.
I think what is important is how strong the company is, what pivot we've created, what strategy we are implementing.
And I think to that extent, if you look at the 3 verticals on which Inox Wind is built, I think we have a very strong diversified external order book.
We now have Inox Green, which is a multibillion dollar play where we have raised capital at billions of dollars.
We are the fastest IPP in the country, the fastest-growing solar player globally.
That adds a lot to Inox Wind and Inox Renewables.
Incrementally, going forward, Inox Green itself has acquired two of the top five erstwhile wind players, two of whom also went bankrupt.
Frankly, we're the only player in India who survived.
There wasn’t a single rupee of haircut.
The only other competitor you talk about survived the $3 billion of haircut.
So I think there are multiple successes.
There have been some failures.
We acknowledge and accept that.
And I think to that extent, the strategy which Kailash, Sanjeev and Mathu have laid out is something which we think is in the best interest of the company.
We've also completely turned around the company by moving from 100% turnkey now to 25% turnkey within a period of 2 years.
It sounds easier.
This is where you're competing with everybody because turnkey, you can have all in-house.
But we think this is the right strategy for the company because that ensures longevity of the business, ensures significant free cash flow and it ensures no working capital blockage as we see in our solar business and as we see with various other solar manufacturers.
So yes, what also has to be seen is 1 or 2 quarters does not derive what we've achieved successfully over the past 4 years.
Ujjwal
Got it.
Got it.
Ultimately, my intention is the same that I want the company to succeed because I'm an investor for a long time.
And I just had one last question.
How optimistic is our guidance for FY27 when we are looking at 75% growth that we are saying right now?
Is it on like a very optimistic side that we are targeting it?
Or we are very, we are saying this on a conservative basis given the fact of a few of the quarters that we have not done well, which side are we on when we are guiding 75% growth?
Devansh Jain
I think we were on the side of conservatism while doing this.
Having said that, if there's a world war or if there's a COVID lockdown, then don't hold us responsible for it.
Moderator · Conference Operator
Sorry to interrupt.
May we request Mr. Ujjwal to please rejoin the queue.
Thank you.
The next question is from the line of Pradeep Motwani from Motwanis.
Please go ahead.
Pradeep Motwani
Congrats for results.
The company's results were good.
I wanted to know about the Inox Green Energy.
Can you hear me?
Devansh Jain
Yes, please proceed.
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Pradeep Motwani
I wanted to know approximately how long the upcoming demerger of Inox Green Energy will take; in the last quarter, you mentioned that it would be completed in about three to four months?
Will it create the unlocking value for shareholders, minor shareholders sir?
Devansh Jain
So, demerger has already been approved by the NCLT.
Now you know the kind of administrative process is going forward.
So, demerger has been approved.
Now the NCLT has an administrative process that is going on.
So broadly in the next 1-2 months, it will get completed.
It should get completed depending upon the administrative approvals if required.
Pradeep Motwani
Okay sir.
Thank you very much for your response.
All the best for the future.
We are a long- term investor for the company.
Thank you very much.
Moderator · Conference Operator
The next question is from the line of Prit Nagarsheth from Wealth Finvisor.
Please go ahead.
Prit Nagarsheth
I had one question regarding the dividend policy or anything like that for Inox Green, given that it's now started giving significant cash.
Devansh Jain
Sorry, speak louder.
Prit Nagarsheth
Okay.
My question is regarding dividend for Inox Green, given that the full year cash back was INR158 crores, and we are expecting INR600 crores of EBITDA or cash back for next year.
Are we looking at some kind of policy to be put in place?
Devansh Jain
Let the consolidation of the two companies happen.
Once that happens, I'm sure the Board in all its wisdom will put in place a dividend policy.
Prit Nagarsheth
Okay.
Thank you.
Moderator · Conference Operator
The next question is from the line of Utkarsh Somaiya from Eiko Quantum Solutions Private Limited.
Please go ahead.
Utkarsh Somaiya
Yes, thanks for the opportunity.
From this INR600 crores EBITDA that you expect to generate, how much of that will convert into operating cash flow?
Devansh Jain
Out of INR600 crore fees, broadly everything will be converted into the operating cash flow.
As such, there will be no depreciation, no finance cost, and we have a tax shield up to INR700 crore of losses.
So, next financial year, this is all cash flows which will be generated for Inox Green shareholders.
Utkarsh Somaiya
You mean operating cash flow, right, not cash profit?
The two are different.
Devansh Jain
Operating cash profit.
Utkarsh Somaiya
And what do you expect -- what are you going to do with this INR600 crores of cash next year?
How are you going to deploy it?
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Devansh Jain
So, let's look at that coming in first, and then we look at further acquisition opportunities.
I'm sure you're aware, Inox Green has had almost 9 or 10 acquisitions in the past couple of months.
Even in Inox Green, we went on to acquire 2 of the top 4 wind OEMs, which went bankrupt in India.
So, I think let's get to that scale, and then we'll see how to deploy that capital.
Utkarsh Somaiya
But is it fair to assume that most of it will be used for acquisitions?
Devansh Jain
I don't think there are so many acquisition opportunities, obviously, in India.
We've really consolidated the sector.
Out of 5 players, 2 are allied, 3 are bankrupt.
Out of the 3 which went bankrupt, 2 we've acquired.
There's only one odd left who doesn't control common infra himself.
So frankly speaking, there are limited acquisition opportunities now.
I know, Mathu and the team have a couple of GWs lined up, which I don't think should cost us more than 10%, 20% of the free cash flow that we have.
But we need to see, what we do with that cash flow.
First, let's get both of these companies integrated into Inox Green.
Utkarsh Somaiya
But what are the conversations going on with the Board?
Is it buyback?
Devansh Jain
Not this point, but let us all assure to everyone that, this will be done in the interest of shareholders.
Thank you.
Utkarsh Somaiya
Thank you.
Moderator · Conference Operator
The next question is from the line of Atul Jobi from Prosperity Wealth Management.
Please go ahead.
Atul Jobi
Sir, my question is for Inox Wind.
So, when I look into the expansion side, the EPC and operational maintenance expenses have seen a significant increase year-on-year, while the cost of materials have seen a decline.
So, can you give more color on it?
Devansh Jain
You are not audible.
Can you please repeat your question a bit slow please.
Atul Jobi
Yes.
So, the question is on Inox Wind.
So, when I look into the expenses side, the EPC and operational maintenance expenses have seen a significant increase year-on-year, while the cost of materials have seen a decline year-on-year.
So, can you give more info on it?
Devansh Jain
No, it is not like, you know, the different components need to be seen differently, it is a kind of a consolidated numbers, because there is a certain change in inventory, certain EPC cost, purchase of stock material.
So, it is a combination of that.
So, COGS are calculated accordingly.
So don't go by line by line, it needs to be seen in totality, and we are in line with our, over numbers our margins and numbers which we have guided for.
And this is totally linked with the change in sales mix also.
Earlier sales component was different now the sales is different.
So that's why, we cannot match it one on one.
Atul Jobi
Okay.
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Moderator · Conference Operator
Ladies and gentlemen, that was the last question for today.
I now hand the conference over to management for closing comments.
Sweta Sultania
Thank you very much for your time for the call today.
Wish you a good evening, and have a good weekend.
Thank you.
Moderator · Conference Operator
Thank you.
Ladies and gentlemen, on behalf of JM Financial Institutional Securities, that concludes this conference.
Thank you for joining us, and you may now disconnect your lines.
Questions and answers
“Inox Wind and Inox Green Energy Services Limited
Deepak Banga · Research Analyst
Okay.
Sir, just wanted to check this FY26, what was our execution in terms of megawatt?
Yes.
So I was not asking for the forward-looking.
So that you mentioned that you're not giving in terms of megawatt, I was asking actual execution in FY26.
Fair point.
And in terms of equipment supply, I mean, we have been transitioning from, I mean, a turnkey to equipment supply, right, that you have been mentioning.
So what does that mean for margins?
I mean, now 70%, 80% of your order book is in equipment supply.
So your margin will have an upward kicker because of that?
I mean, how should one look at margins because of this?
So it's similar, right?
I've seen that guidance?
Correct.
But ideally, I would have thought transitioning from turnkey to equipment supply would help your margins, right?
I mean it's -- because ideally, your equipment supply would have better margins as compared to the entire turnkey?
Okay.
Understood.
And what's your O&M revenue mix and this year order inflow target?
Those are my last questions.
Devansh Jain
Come again, please?
Deepak Banga · Research Analyst
O&M revenue mix right now and FY27 order inflow target?
Devansh Jain
I think the revenue mix right now broadly is about 10% was O&M, 90% was Inox Wind.
I think going forward, as the entire consolidated might of the 2 acquisitions comes through, I think O&M will possibly be moving towards about 20%, 18% to 20%.
I don't think we have order inflow targets, like I said, and like Sanjeev said, we're already sitting on a 3.1 GW platform.
There's a very large visibility from Inox Green.
So frankly speaking, if our revenue guidance is 75% growth on 4,500, which takes you to about INR7,500 crores.
I think we are sold out for the next 2.5 years in terms of what our overall ambitions are.
Deepak Banga · Research Analyst
Understood.
Okay that is very clear.
That’s it from my side.
Wish you all the best thank you.
Inox Wind and Inox Green Energy Services Limited May 29, 2026
Moderator · Conference Operator
Thank you.
The next question is from the line of Rahul Kumar from Vaikarya Fund.
Please go ahead.
Rahul Kumar
Hi am I audible?
Devansh Jain
Yes.
Rahul Kumar
Can you explain this other income in the green of INR60.8 crores.
How much of that is, let's say, related to the assets you're going to acquire?
How much of income is there from treasury because you have a lot of cash and equivalent also on your balance sheet?
And how much of it is from these value-added services, which you consider as a part of core income?