Inox Wind Ltd shares plummeted nearly 10% from Friday to a one-month low of ₹84.50 after the company released disappointing March quarter earnings. According to Informist, the stock was trading at ₹84.15 at 1411 IST on Monday, down over 9% on the National Stock Exchange. The sharp decline came after the company reported a consolidated net profit of ₹912.5 million, which was 51% lower year-on-year and significantly below the Street's estimate of ₹2.31 billion. The company's sales rose just over 2% to ₹12.44 billion, also well below expectations of ₹18.42 billion. However, management is implementing a strategic shift to address these challenges, planning to increase the share of pure equipment supply contracts in its order book from 27% currently to 75% over time.
The latest decline extends Inox Wind's downward trajectory, marking the fifth straight session of losses. As reported by Business Standard, the stock was trading at ₹83.16, down 0.81% as of 13:19 IST on the NSE. The stock's performance contrasted sharply with the broader market, as the benchmark NIFTY was up around 0.36% at 23,467.1 points, while the Sensex stood at 74,624.13, up 0.48%.
Trading activity in Inox Wind showed significantly increased participation compared to recent sessions. According to Informist, over 40 million shares changed hands on the NSE, which is nearly four times higher than the number of shares traded till the same time Friday. The Monday trading volume was higher than the average traded volume of over 15 million shares, indicating heightened investor interest following the earnings announcement.
The company's order book situation presents both challenges and opportunities for future growth. Inox Wind secured only 600 MW of fresh orders in FY26, ending the year with a 3.1 GW order book, translating into roughly two years of revenue visibility. However, the company expects 0.6-0.9 GW of annual orders from Inox Clean linked to green hydrogen ambitions, equivalent to roughly one-third of Inox Wind's annual execution capacity. This captive demand could improve receivables visibility and support order inflows going forward.
Management has guided for 75% revenue growth in FY27 along with an Ebitda margin of 20-22%, with supply-chain disruptions expected to ease by the first half of FY27. The industry's annual installations are projected to rise from 6 GW in FY26 to 8-10 GW going forward. Despite the strategic pivot toward equipment supply contracts, the company's 7% return on equity (RoE) pales in comparison with Suzlon's nearly 30% RoE. The potential listing of Inox Renewable Solutions could unlock shareholder value as part of broader organizational restructuring.
