INOXWIND — earnings call

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Prepared remarks

GFL GROUP · MR. AKHIL JINDAL – GROUP CHIEF FINANCIAL

MR. AKHIL JINDAL – GROUP CHIEF FINANCIAL OFFICER – INOX GFL GROUP MR. SANJEEV AGARWAL – CHIEF EXECUTIVE OFFICER

– INOX WIND · MR. S.K. MATHUSUDHANA – CHIEF EXECUTIVE

MR. S.K.

MATHUSUDHANA – CHIEF EXECUTIVE OFFICER – INOX GREEN ENERGY SERVICES LIMITED And other senior members of the management team

Moderator · Conference Operator

MR. VIKRAM DATWANI – NUVAMA INSTITUTIONAL EQUITIES

Ladies and gentlemen, good day, and welcome to the INOX Wind Limited and INOX Green

is being recorded. · Management

Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026 I now hand the conference over to Mr. Vikram Datwani from Nuvama Institutional Equities.

Thank you, and over to you, sir.

Vikram Datwani

Thank you.

Good evening, everyone.

On behalf of Nuvama Institutional Equities, I welcome you all to the Q1 FY27 results conference call of INOX Wind Limited and INOX Green Energy Services Limited.

We are joined today by Mr. Devansh Jain, Executive Director, INOX GFL Group; Mr. Akhil Jindal, Group CFO, INOX GFL Group; Mr. Sanjeev Agarwal, CEO, INOX Wind; Mr. S.K.

Mathusudhana, CEO, INOX Green; and other senior members of the management.

I would now like to hand over the call to Mr. Sanjeev Agarwal for his opening remarks.

Thank you, and over to you, sir.

Sanjeev Agarwal

Thanks, Vikram.

Good evening, everyone.

I will first brief you on the financial and operational achievements of INOX Wind for the quarter under review as well as other key developments and future roadmap before handing it over to Mathu for his briefing on the development at INOX Green.

I'm pleased to inform in quarter 1 FY27 on a consol basis, INOX Wind has reported a revenue of INR872 crores, adjusted EBITDA of INR237 crores, PBT of INR95 crores, PAT of INR64 crores and cash profit of INR153 crores.

As per our strategic initiative undertaken in the previous quarters where we have pivoted towards increasing the share of equipment supply in our order mix, we are pleased to inform you that we are making steady progress towards this.

Our operations are showing resilience post this pivot.

This initiative would help achieve a healthy balance sheet as well as financial robustness.

The strategy is expected to yield long-term benefits and reflect meaningfully in the financials Q3 onwards.

As of July '26, the share of equipment supply in our order book stood at approximately 59% with the balance 41% being turnkey.

This excludes orders received from INOX GFL Group entities and is only for orders received from the third-party entities.

The virtuous cycle of interplay with INOX GFL Group entities is playing out well.

The growth at our group company, INOX Clean, will lead to larger orders for INOX Wind, INOX Green as well as INOX Renewable Solutions.

INOX Clean has plans to set up 3 gigawatt plus capacity of IPP portfolio every year.

We are pleased to inform you that INOX Wind has signed an MOU for 1.5 gigawatt.

I'll repeat again, 1.5 gigawatt with INOX Clean Energy in June, out of which firm orders have been signed for 500 megawatts so far.

Firm orders for the balance 1 gigawatt would be signed in due course of time.

In another positive development in the first quarter, we have received an LOA for 200 megawatt from NLC India.

This is a repeat order from NLC in the month of July through an extensive tendering process.

With this, our order book stands at approximately 4.4 gigawatt.

Just to repeat Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026 again, an order backlog of 4.4 gigawatt as on July 2026.

This provides us a clear execution visibility for more than 24 to 36 months.

We are strongly placed with all our customers, including C&I, PSU, IPP, captive, that is GFL and retail.

Many more tenders as well as negotiations are underway, and we are confident of securing more orders this year.

Further, we have a visibility of receiving large recurring orders from INOX Clean Energy over the next few years, as I mentioned before.

With respect to our 4X Wind Turbine model, execution is progressing well.

The foundation work has been completed.

The tower and other main components are ready.

We are on track to install the first prototype in the month of August with commercial launch expected by end of FY26. Our expansion plan, and I would like everyone to hear this with open eyes and ears, our expansion plans in INOX Renewable Solutions Limited are also progressing well.

Our operational Jaipur transformer factory is gearing up to manufacture our next bigger capacity, which is 4.9 MVA transformers for our 4X series.

We also plan to further increase our trafo manufacturing capacity, including medium-sized trafos between 8 to 20 MVA as well as large transformers, which is 100 MVA plus.

We also own our own fleet of cranes.

Presently, we have 4 of them in operations and more to come in within this financial year.

Besides transformers, we plan to manufacture high value-added and high-margin power electronic systems such as inverters, unit substations and energy capacitor systems, which is used in our wind turbines.

Our USS is expected to be commercially launched in FY27. All these investments have relatively relative short payback periods and will lead to revenue and margin expansion in IRSL.

Further, the demerger of the power evacuation infrastructure business from INOX Green into INOX Renewable Solution has been completed as on August 1, 2026, being the record date.

IRSL would now be automatically listed on the stock exchange post receipt of regulatory approvals.

Coming to INOX Green, we have received the approval from Hon'ble NCLT Ahmedabad for the acquisition of Wind World India Limited.

The acquisition formalities are expected to be completed in quarter 2 FY27. This is a milestone transaction in the renewable space, one where we expect to realize significant business synergies as we integrate the acquired business post completion of the acquisition process.

We shall provide further updates on this in our next analyst call.

As on June 2026, our O&M portfolio stands at 13.3 gigawatts, including investment made.

The Wind industry continues to show excellent transactions -- traction, sorry, driven by macro tailwinds with 1.4 gigawatt wind capacity commissioned in India in quarter 1 FY27. The total installed wind capacity stood at 57.4 gigawatt as on June 2026.

We expect to see strong annual wind capacity additions ranging between 8 to 10 gigawatt over the next few years, driven by RTC, FDRE and hybrid capacity additions.

In fact, out of the total renewable capacity of 9.34 Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026 gigawatt awarded through tenders in quarter 1, 2.35 gigawatt, that is 25%, comprised of stand- alone wind tenders alone.

The installed wind capacity in India is expected to be 7x the current capacity in the next 2 decades.

Power demand continues to remain strong, and it is worth noting that power demand in the first 4 months of FY27 so far has been the highest by far in the last 4 years.

INOX Wind is well placed to benefit from the continued macro push towards renewable as well as for the interplay of group company synergies.

I would like now to hand it over to Mathu for his remarks on INOX Green.

Mathu, over to you.

S.K. Mathusudhana

Thanks, Sanjeev.

Good evening, everyone.

I hope I'm audible.

I will firstly brief you on the financial achievements of INOX Green during the quarter before moving to other aspects.

During Q1 FY27, INOX Green reported total income of INR101 crores, up by 17% year-on-year.

EBITDA of INR57 crores, up by 19% year-on-year.

Profit before tax of INR54 crores, up by 74% year-on-year.

Profit after tax of INR41 crores, up by 86% year-on-year.

Cash PAT of INR55 crores, up by 25% year-on-year.

Machine availability for the entire portfolio averaged approximately 96.3%.

The operations continue to do well and have shown continuous improvements driven by large investments and expenditures incurred in the previous year to improve the entire infrastructure.

A significant portion of operating revenues are being generated through value-added services such as turbine overhauls, life extension activities, etcetera.

However, as per the accounting norms, they are clubbed as other income, while they are operating in nature.

INOX Green's portfolio stood at approximately 13.3 gigawatt peak as on June 2026, comprising of approximately 10.5 gigawatt of Wind operating assets and the balance being solar assets.

This also includes the investments made to acquire approximately 6.5 gigawatts of operational Wind O&M assets, including Wind World India and one other company.

As mentioned by Sanjeev earlier, we are pleased to inform you that we have received the approval from honorable NCLT, Ahmedabad for the acquisition of Wind World India Limited.

The acquisitions formalities are expected to be completed in Q2 FY27, post which the financial consolidation will take place.

This is a huge milestone in the journey of INOX Green and a value- accretive transaction for all shareholders.

We believe there is a significant scope to bring in operational efficiencies in the acquired portfolio through enhanced service offerings, price and cost optimization.

Wind World India's O&M portfolio stands at nearly 4.5 gigawatts, servicing a marquee client base that includes Tata, ReNew, Greenko Group, Apraava, Hindustan Zinc, among others.

The assets are spread across key wind-rich states, including Karnataka, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, MP and Andhra Pradesh.

The portfolio generated revenue of approximately INR580 crores in FY26 and the benefits from contracted annual price escalations of approximately 5%.

The integration efforts are underway.

We shall provide further updates on this in our next earnings call.

Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026 We expect our other investments to be also completed in FY27 and to be consolidated in our financials.

Besides our inorganic efforts, we believe Green will be one of the biggest beneficiaries of the growth coming from the annual capacity additions of approximately 3 gigawatt plus at our group company, INOX Clean and external projects executed by INOX Wind.

So this is expected to establish INOX Green into one of the largest renewable O&M companies globally.

We continue to see success in offering WTG that is wind turbine overhaul and life extension packages to customers, which results in increasing the life of the turbines and enhancing output.

Globally, the life extension of wind turbine has been taken up to 35 years.

So typically, every turbine runs at 25 years as a normal standard, but we are intending to increase the life up to 35 years.

So this business stream has substantial potential for growth ahead.

We expect to offer this service to much of the existing fleet of Wind World India O&M business as well.

Further, as mentioned earlier by Sanjeev, we are pleased to inform you that the demerger of the power evacuation infrastructure business from INOX Green into INOX Renewable Solutions has been completed as on August 1, 2026.

As a result of this demerger, INOX Green is now an asset-light O&M player with significant improvement in ROE and ROCE metrics.

We will now open the floor for Q&A.

Thank you very much.

Moderator · Conference Operator

The next question is from the line of Shubham Burari from ICICI Securities.

Shubham Burari

My question is simple.

What was the execution in terms of megawatt in Q1?

And what is the approximate number we are looking at for FY27?

Sanjeev Agarwal

Thank you so much.

I mean this was -- we changed the track two quarters before.

So we do not announce anything on megawatt now.

It is the number of machines that we have.

Moderator · Conference Operator

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

Prit

My first question is regarding the blended per megawatt revenue that we would have generated for the 10.5 gigawatt portfolio.

Could you please share what that number was?

Moderator · Conference Operator

The next question is from the line Baahubali from Kattappa Investments.

Baahubali

I'm an individual retail investor.

So I just have two basic questions.

So my first question is, I mean, the stock has fallen from almost more than 65% from the all-time high.

So like do you have any plans to increase promoter shareholding?

Moderator · Conference Operator

The next question is from the line of Shubham Shukla from Voyager Capital.

Shubham Shukla

I largely have questions from two fronts.

Basically, I just started covering this company like last quarter.

And there are just two fronts where I'm unsure like where I could get some clarity from you people is our trade receivables, they are significantly higher than our peers.

And also, I understand that this is like a result from our legacy EPC business also.

But what I am trying to understand is EPC, which is done through our subsidiary company, these trade receivable numbers are like there in consolidated level as well as in our stand-alone balance sheet.

I was trying to understand how these two are like what's the method here to secure an EPC order and then executing it on like both stand-alone level and consolidated level?

And going ahead, how can we -- of course, we -- I know -- I understand we are trying to gradually move our order book from EPC heavy to equipment heavy, which will eventually make things better like at least for trade receivable front.

I was trying to understand how these two are placed on both consolidated level and stand-alone level.

This is the first point where I would like some clarity.

Sanjeev Agarwal

In terms of the receivable numbers, this is a quarterly number.

The receivable numbers are not disclosed as required by the Ind AS and the LODR requirement.

But as we have guided, we are sticking to our working capital guidance, which we have provided on an annualized basis, and we keep improving in terms of the last quarter.

Our working capital cycle has been improved.

In terms of the receivable numbers, per se, our receivable is accounted as per the Ind AS 115, which is on the risk transfer basis and some part of the receivable got struck in receivable till it has got commissioned.

So till it has got commissioned, the receivable got to start reflecting that receivable will show in a higher number.

But as we are moving towards the equipment supply, as you rightly said, the receivable numbers will start dropping significantly, and you will see a lot of improvement in quarter 2 and quarter 3 onwards.

Moderator · Conference Operator

The next question is from the line of Akhilesh B. from North Star.

Akhilesh B.

Sir, I am a shareholder of your company since FY23 when the company first inflected, and you've done all great work, which is why the market also rewarded the company.

I just want to understand what are the disruptions exactly that you are facing when you are changing the model from turnkey to equipment supply?

And now the guidance which you have for the full year, the ask rate is almost INR6,500 crores of revenue in the next three quarters.

There's almost a 100% growth rate for those three quarters.

So does this look achievable?

The reason I'm asking you this is the market will reward certainty and consistency.

You know that well.

And I just want your perspective.

Sanjeev Agarwal

Thank you.

Let me answer the second point first, you raised.

Look, there is a great difference between when you do an EPC versus when you do an equipment supply.

It brings an equipment supply, we just have to bring a customer who has placed an order on us.

He does the inspection, the metal moves out.

We make multiple turbines in a month, and we look forward for our customers to have an inspection and take the turbines.

This means a faster changeover and achievement of better results, both in terms of revenue as well as cash.

You said what are the disruptions?

Look, the disruptions on the EPC still remain the same.

They have been there for years.

The ROWs bringing the equipment, sometimes the customer is not ready.

The weather also plays spoil sport.

All these issues, something man-made something beyond your control, this will continue.

And that is where we made that call a couple of months back, which we say as a Vision 2.0, where INOX Wind will pivot towards equipment supply alone.

I mentioned in my speech that 60% of order booked today stands on equipment supply.

This would mean that starting quarter 3, probably end of quarter 2, INOX Wind, which would see a significant change in terms of financials, both the bottom line and the cash reserves.

Thank you so much.

Akhilesh B.

And sir, just one more question.

Since INOX Clean is going to be an increasingly big part of our order book, just want to confirm whether the terms at which we do business with the group entity are same or similar to the terms we are doing with other entities.

Sanjeev Agarwal

Great question.

So let me reconfirm this.

Let me confirm, reconfirm.

We do the business in a most ethical and legal binding way.

So all our contracts between entities, entities are arm's length, Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026 the terms of payments, the inspections, the way we work, it's INOX Clean for INOX Wind is a customer, yes.

They are treated as a customer, the behavior as a customer.

They do all our inspections.

So please rest assured Clean remains a customer to INOX Wind.

Moderator · Conference Operator

The next question is from the line of Rahul Kumar from Vaikarya.

Rahul Kumar

INOX Green, the other income of INR57.9 crores, can you break it up between how much is the income from assets that are being acquired versus the value-added services and versus the treasury income you get?

Moderator · Conference Operator

The next question is from the line of Bhagwat from Prosperity Wealth Management Private Limited.

Bhagwat

Just a quick question regarding INOX Green.

So with the financial consolidation of Wind World acquisition now expected post Q2 FY27, could you please update about our EBITDA guidance of INR600 crores considering Q1 EBITDA of INR57 crores?"

Moderator · Conference Operator

The next question is from the line of Deepak Sharma, an Individual Investor.

The next question is from the line of Athul Joby from Prosperity Wealth.

Athul Joby

So I think I need to understand what is the reason why there's no year-on-year growth in revenue for INOX Wind?

Is it because INOX Wind has completely stopped doing EPC business?

Moderator · Conference Operator

Management line?

The next question is from the line of Rishabh Gupta, an Individual Investor.

Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026

is being recorded. · Management

I do recognize that the business is 30-70 split, but you guys have guided 75% increase.

And in the first quarter, there is no incremental revenue.

Then in the next 3 quarters, we need 100% increase to match the guidance.

What is going to significantly change in Q3, Q4, which gives you insight in terms of 100% improvement in the revenue is there any key initiative that you are targeting apart from EPC mix?

Because EPC mix, obviously, this quarter has also improved from last year, but I could not see any increment.

And obviously, you highlighted that INR600 crores of miss in last year has also been recognized in this quarter somewhat, then probably we have degrown, right?

Sanjeev Agarwal

I think we said that typically, in EPC business is loaded mostly in H2.

Our equipment pivot that we did, that will start showing results in quarter 2 end and predominantly H2.

So we remain confident that this strategy will work.

It has started showing its results.

But predominantly on the numbers, it would be seen better in Q3 for sure.

is being recorded. · Management

Got it.

One -- another small query.

I've been in all the con calls for the last 3 quarters.

And every con call, we have missed the guidance by some margin.

And every con call, we have been 100% confident that we will be achieving the guidance.

So what is going wrong there?

Sanjeev Agarwal

Gentlemen, there is nothing wrong.

I think this pivot strategy to move to equipment has been mentioned several times.

The biggest player today is INOX Clean for us.

The orders is already there.

I mentioned about 1.5 gigawatt of orders coming in from Clean.

The balance customers, two-third of them -- two-third of the balance stuff comes from our IPPs and C&I customers.

We have 4.4 gigawatt of orders in backlog to be executed.

70% of that comes from equipment supply.

We are pretty confident that on a month-by-month, on a quarter- by-quarter, we would deliver better than expectations.

is being recorded. · Management

Obviously, that's why we are company, but we track it.

And obviously, in the next quarter, if we are meeting the guidance, I would definitely congratulate you.

Moderator · Conference Operator

The next question is from the line of Darshil Jhaveri from Crown Capital.

Darshil Jhaveri

A lot of my questions have been answered.

Sir, just one question from my end, sir, that what are the risks that you see that in case that we cannot meet the 75% guidance?

I know we are very sure, but a lot of factors will not be in our hands that you see on a daily basis.

So someone who's not in the business, could you just elaborate some kind of risk that can happen in our business, sir, that we'll not meet the guidance?

Sanjeev Agarwal

Thank you so much.

And I would say only force majeure, things which are beyond our control.

I mean no one had an inkling about this Middle East crisis.

So something like that.

Otherwise, this pivot to move to equipment supply, honestly, we don't see a risk of not meeting our deliverables.

Inox Wind Limited & Inox Green Energy Services Limited August 07, 2026

Darshil Jhaveri

Okay.

That's really great.

That's it from my side.

And just one more question.

In the PPT, I don't know if we could find how much product and how much EPC business have we done.

So I think going forward, you could mention that, that would be helpful, sir.

Sanjeev Agarwal

I think we will not allow that, but we hear you.

Probably going forward, we'll start to see if we could provide those data as well.

Moderator · Conference Operator

Thank you.

Due to time constraints, we take that as the last question.

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

Sanjeev Agarwal

Thank you so much.

Thank you so much for attending it, and we'll see you next time.

Thank you so much.

Moderator · Conference Operator

On behalf of Nuvama Institutional Equities, that concludes this conference.

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

Questions and answers

18:23:02 +05'30' · Research Analyst

“Inox Wind Limited & Inox Green Energy Services Limited

Moderator · Conference Operator

Thank you very much.

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

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

Vikash Agarwal

Congratulations team for a great result.

I'll just bunch up whatever I want to ask so that it can be done fast.

I just want to ask what is the reason for the fund raise at the present acquisition that we have?

We understood that those acquisitions were funded by the previous preferential issue that we had made.

And also, I would like to know management view, I think INOX Green is a healthy cash-generating entity.

And wouldn't it better if we raise debt in that and clear the same from the assured cash flow rather than equity dilution?

Also, if we can have a management comment on benefits from the new ALMM rule that could be seen and wind versus solar plus battery.

And also, competitors are introducing 5-megawatt products, and we are...

DEEPAK BANGA · Research Analyst

My first question is when we can expect the listing of RESCO?

And can you give me some idea about the reported EBITDA of RESCO in financial '26 and any forward-looking guidance for coming 1 or 2 years?

Okay.

Secondly, if the company is shrinking the EPC business, so EPC is like part of RESCO, then I think the RESCO future revenue visibility may take a hit?

Sanjeev Agarwal

Great question.

Thank you so much.

And that's the reason I said, please hear me out loudly.

I said RESCO will continue doing EPC, irrespective of whether it is being done for INOX Clean or some very strategic customer that we will choose depending on the market condition.

But to compensate that, I mentioned about a couple of things.

We are looking at enhancing our manufacturing capabilities under IRSL, one being transformers, which is not limited only to our solar and -- which is not limited, sorry, to our captive requirement of only solar and wind, but also moving up the value chain to 100 MVA and beyond.

I talked about our own crane business, which has been giving us good returns.

A couple of cranes are already with us and a couple of them will join in.

I also mentioned about high-value -- technological value-added and high-margin power electronic products like inverters, like unit substations and the capacitor systems.

This has been planned in the year, and we believe these expansion plans for IRSL will outsmart any lesser volumes that anyone would expect because of shrinking of EPC business.