Inox Wind shares have tumbled over 8% on June 1 following the release of Q4 FY26 results, with the stock currently trading at ₹93.02 and maintaining a market capitalisation of ₹9,307 crores. The stock has corrected 53.76% from its 52-week high of ₹201.00, yet still trades 24.08% above the 52-week low of ₹74.91, suggesting potential for further downside. The latest 8% crash reflects investor concerns over the company's operational challenges and disappointing quarterly performance. As per LiveMint, the wind energy solutions provider posted a consolidated net profit of ₹105.68 crore in Q4 FY26, marking a sharp decline of 45% year-on-year from ₹190.34 crore in Q4 FY25, attributed to rising operating expenses during the quarter.
The company reported a consolidated net profit of ₹105.68 crore for Q4 FY26, marking a sharp decline of 45% year-on-year from ₹190.34 crore in Q4 FY25. The deterioration was even more pronounced on a sequential basis, with profits falling 22.26% from ₹117.39 crore in Q3 FY26. Total income from operations slipped marginally to ₹1,305.50 crore in the January-March period from ₹1,310.65 crore a year ago, while total expenses increased to ₹1,161.59 crore, compared with ₹1,103.01 crore in the year-ago quarter. However, the quality of earnings deteriorated significantly, with operating profit margin contracting sharply to 16.04% in Q4 FY26 from 19.95% in Q4 FY25, representing the lowest quarterly margin in recent periods. EBITDA declined 21.5% to ₹200 crore from ₹254 crore a year earlier, while interest expense surged to ₹64.87 crore in Q4 FY26, nearly doubling from ₹34.78 crore in Q4 FY25, pushing the operating profit to interest coverage ratio down to just 3.08 times.
Despite the challenging quarterly performance, Inox Wind's order backlog reached 3.1 GW as of March 31, 2026, providing revenue stability for over two years. As per LiveMint, the company noted that challenges related to on-site execution, geopolitical issues impacting the supply of equipment and components, logistical delays, and postponed customer payments in a tough macroeconomic climate have kept working capital needs high throughout the quarter. During the quarter, Inox Wind secured fresh orders totalling nearly 600 MW from customers including the Aditya Birla Group, Gentari, Jakson Group, First Energy and Leap Green, with management highlighting an order pipeline exceeding 2 GW and recurring annual order visibility from group company Inox Clean Energy. The company's working capital cycle improved by around 15 days during the quarter and is expected to strengthen further in coming periods.
Motilal Oswal has maintained its 'Buy' rating on Inox Wind with a revised price target of ₹110 per share, despite cutting the company's financial year 2027 and 2028 EBITDA estimates by 7% and 6% respectively. According to CNBC TV18, the brokerage noted that the management's strategy to gradually increase the pure equipment supply contracts' share in the order book from 27% to 75% over time, which should improve working capital efficiency and margins. However, the domestic brokerage has reduced its target price to ₹101 apiece, implying an upside potential of nearly 9% from the stock's previous closing price. JM Financial described the quarterly performance as an 'all-round miss' in its brokerage note, reporting revenue of ₹1,200 crore in Q4, down 2% year-on-year and below estimates. EBITDA margin stood at 16% against its estimate of 21%, which JM Financial attributed to weak execution. The company's profit before tax came in at ₹143.91 crore, down 30.7% year-on-year from ₹207.64 crore in Q4 FY25, with other income contributing ₹61.26 crore, representing 42.57% of PBT.
Despite the challenging quarter, the company highlighted several positive developments and maintained an optimistic outlook for FY27. As reported by CNBC TV18, Inox Green has expanded its operations and maintenance portfolio to 13 GW from 5 GW in March 2025 through acquisitions, prompting an upward revision in earnings estimates for FY27 and beyond. The company's order book stood at 3.1 GW as of March 31, 2026, providing revenue visibility for more than 24 months. During the quarter, Inox Wind secured fresh orders totalling nearly 600 MW from customers including the Aditya Birla Group, Gentari, Jakson Group, First Energy and Leap Green, with management highlighting an order pipeline exceeding 2 GW and recurring annual order visibility from group company Inox Clean Energy. The company's working capital cycle improved by around 15 days during the quarter and is expected to strengthen further in coming periods. Motilal Oswal noted the company's strategy to increase the share of pure equipment supply contracts from 27% currently to 75% over time, which could improve working capital efficiency and margins.
