Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
Inox Green Energy Services Ltd

| Q2 and H1 FY26 Earnings Conference Call

BULLISH SENTIMENT

Report Source

⬤14th Nov 25

Summary : Inox Wind and Inox Green delivered strong Q2 FY26 results, with robust order books and ambitious growth plans in renewable energy, aiming for market leadership in O&M services.

Management Perspective positive : Management repeatedly used phrases like 'best ever Q2', 'extremely confident of achieving that', 'well set to embark on next leg of growth', and 'very confident of, in fact, overachieving that number'.

Concall Report Analysis & Insights

Business Overview

  1. Inox Wind reported its best-ever Q2 FY26, executing 202 MW despite monsoons.
  2. Consolidated revenue increased 56% YOY to Rs. 1,162 crores, with PAT up 43% YOY.
  3. Inox Green achieved its best-ever financial performance, with total income up 101% YOY.
  4. Inox Green's O&M portfolio expanded to 12.5 GW, aiming for India's largest player status.
  5. The group is an integrated renewable energy player, from manufacturing to O&M services.

Future Growth Prospects

  1. Inox Wind is on track to achieve its 1.2 GW execution guidance for FY26, with H2 expected to be 70% of annual execution.
  2. The company expects to secure over 1 GW of annual recurring orders through framework agreements, providing 18-24 months visibility.
  3. Inox Green targets an O&M portfolio of 17 GW within the next two years, confident of overachieving this goal.
  4. The demerger of the substation business is expected to significantly boost Inox Green's profitability, ROE, and ROCE.
  5. Favorable government policies, including GST reduction and hybrid project focus, support sector growth.

Management Insights

  1. Management is highly confident in achieving the 1.2 GW execution target for FY26.
  2. Inox Wind has a large and diversified order book exceeding 3.2 GW.
  3. Inox Green is well-positioned to become India's largest renewable O&M company.
  4. The substation business demerger will unlock substantial value for both Inox Wind and Inox Green.
  5. The shift towards hybrid RTC FDRE tenders is viewed as a positive, proactive move for the wind sector.

Signs of Skepticism

  1. An analyst questioned past shortfalls in execution guidance for FY24 and FY25.
  2. An analyst inquired about the sustainability of Inox Wind's order inflow compared to sector leaders.
  3. Management did not quantify specific benefits from backward integration or royalty positions.
  4. Management did not provide a rupee value for incomplete sets or the H2 equipment/EPC split.

Risk Factors

  1. Q2 execution was substantially impacted by the monsoon season.
  2. Potential PPA cancellations in the sector, though Inox Wind states its orders are not affected.
  3. Inflationary trends in aluminum and copper prices could impact future EBITDA margins.
  4. Past shortfalls in execution guidance were noted by an analyst, raising concerns for future targets.

Good To Know

  1. Inox Wind currently holds a 56% stake in its subsidiary, Inox Green.
  2. The demerger of the substation business from Inox Green received shareholder and creditor approvals.
  3. Inox Wind will not enter battery manufacturing, but group companies utilize hybrid and storage models.
  4. FY26 CAPEX guidance for the company is approximately Rs. 200 crores.
  5. Turnkey contracts realize around Rs. 8 crores per megawatt, while O&M for wind yields Rs. 8-10 lakhs/MW with 50% margins.

Key Drivers

  1. Achieving 1.2 GW execution target.
  2. Securing 1 GW annual recurring orders.
  3. Inox Green becoming largest O&M player.
  4. Substation demerger boosts Inox Green.

Key Analyst Discussions

Market Trends & Consumer Behavior

  1. Impact of potential 40 GW PPA cancellations on the wind sector.
  2. Outlook on wind ordering activity, especially given recent slowdown.
  3. Potential impact of aluminum and copper inflation on EBITDA margins.

Financial Highlights

  1. Breakdown of EBITDA margin uplift from backward operations and royalty.
  2. Quantification of incomplete sets and expected cash conversion timeline.
  3. Execution outlook for H2 FY26 given H1 performance and full-year target.
  4. Inox Green's O&M portfolio growth expectations for FY26.
  5. Realization drivers for wind turbine segments and CAPEX guidance for FY26.

Product Composition

  1. Quantification of equipment supply versus EPC for H2 execution.

Strategic Considerations

  1. Strategy for acquiring more O&M assets from existing players.
  2. Potential for Inox Wind to enter battery energy storage systems.
  3. Whether framework agreements will lead to an upward revision of FY26 guidance.