Inox Wind shares slipped 9% on Friday, logging an intra-day low of ₹85.65 per share after the company released its Q4FY26 results after market hours. The stock underperformed significantly as the BSE Sensex was up 0.19% at 74,916.05, reflecting investor concerns over the company's latest quarterly performance. According to Business Standard, the decline came after the company reported a 44.4% fall in consolidated net profit to ₹105.68 crore during the March quarter, compared to ₹190.34 crore in the year-ago period. Despite the weak quarterly results, brokerages remain cautiously optimistic with revised target prices, though down from earlier levels.
According to latest reports, Inox Wind reported a 44.4% decline in consolidated net profit to ₹105.68 crore during the March quarter, compared to ₹190.34 crore in the year-ago period. The company's revenue from operations fell 2.3% to ₹1,244.24 crore from ₹1,274.82 crore a year earlier, while total income declined marginally to ₹1,306 crore. As reported by Business Standard, expenses stood at ₹1,161.59 crore compared to ₹1,103.01 crore in the last quarter of FY25. The company attributed the decline to on-ground execution challenges, geopolitical tensions leading to delays in ECS supplies, and logistical support challenges. However, the company achieved consolidated Q4 revenue of ₹1,306 crore with EBITDA of ₹333 crore reflecting a 25.5% margin, demonstrating operational resilience despite market headwinds.
The company has implemented a strategic pivot towards equipment supply, now at 50/50 and targeting 75%, which is improving working capital and revenue certainty. Group synergies and backward integration into power electronics, cranes, and transformers are driving margin improvements and operational efficiency. The O&M business maintains high machine availability at 96.5% with the revenue mix expected to rise from 10% to 18-20% as acquisitions consolidate. The company's net worth increased significantly to ₹7,692 crore in FY26 from ₹5,606 crore in FY25, reflecting strong balance sheet strengthening. The company's order book of 3.1 GW as of March 31, 2026, provides strong revenue visibility for more than 24 months.
According to Business Standard reports, Motilal Oswal Financial Services has retained its 'Buy' rating but cut the target price to ₹110 from ₹121, based on 20x FY28 earnings per share citing attractive valuations despite cutting FY27 and FY28 EBITDA estimates by 7% and 6% respectively. The brokerage flagged three positives: visibility of recurring captive order inflows from Inox Clean Energy planning to add 3 GW of renewable capacity annually, management's strategy to gradually increase pure equipment supply contracts from 27% to 75%, and FY27 revenue growth guidance of 75% with 20-22% EBITDA margins. However, Motilal Oswal flagged concerns about relatively weak order inflows with only 600 MW secured during FY26 and the company's inability to meet FY26 revenue guidance. JM Financial maintained its 'Add' rating but reduced the target price to ₹101 from ₹120, noting that Q4FY26 results were weak with revenue, EBITDA margin, and adjusted PAT all missing estimates sharply due to weak execution.
According to Business Standard, the mixed brokerage recommendations reflect varying assessments of the company's near-term performance and growth prospects. JM Financial expects Inox Wind to execute 900 MW and 1,100 MW in FY27 and FY28 respectively, given challenges in grid connectivity, right-of-way, and power purchase agreements. Meanwhile, Motilal Oswal has lowered its FY27 and FY28 delivery estimates to 1.2 GW and 1.4 GW respectively, driving the EBITDA estimate cuts. The company's order book stands at 3.1 GW, including 1.5 GW from CESC and 750 MW from group companies, providing strong revenue visibility. Brokerages expect ECS supply normalisation from Q2FY27 to support recovery, with management anticipating recovery in Q1FY27 and Q2FY27.
