ICICI Securities has upgraded its recommendation on Inox Wind with a buy rating and a revised target price of ₹120 per share, up from the earlier target of ₹130. According to ICICI Securities' research report dated June 1, 2026, the brokerage maintains its bullish stance despite the company's recent quarterly underperformance. The stock is currently trading at a cheap valuation of 15x FY28E core earnings, presenting attractive investment opportunities for investors.
Inox Wind (IWL) delivered disappointing fourth-quarter results that fell short of analyst expectations across key metrics. According to Motilal Oswal's research report dated May 30, 2026, the company missed revenue estimates by 34% at ₹12.4 billion in Q4FY26. The company's EBITDA stood at ₹2 billion with margins contracting to 16%, compared to 23% in Q3FY26 and 20% in Q4FY25. Adjusted profit after tax came in at ₹0.9 billion, representing a significant 58% shortfall against estimates. Inox Wind reported consolidated net profit fell 45% to ₹106 crore compared to ₹190 crore in Q4 FY25, with profits taking a hit due to geopolitical disruptions and increased interest burdens.
For the complete fiscal year 2026, Inox Wind achieved mixed performance results. As reported by Motilal Oswal, the company's revenue reached ₹43.9 billion, marking a 24% year-on-year growth. EBITDA for FY26 stood at ₹8.9 billion with an 18% increase compared to the previous year. However, adjusted profit after tax declined by 11% YoY to ₹4.0 billion. The company also missed its full-year revenue guidance including other income of ₹50 billion by 9%. ICICI Securities reports that execution was approximately 830-850MW during FY26, with the company securing relatively weak order inflows of only 600MW during the year. The company maintains a robust order book of 3.1GW, with 27% of the order book from equipment supply.
Despite recent challenges, both Motilal Oswal and ICICI Securities highlighted several positive factors supporting their buy recommendations. The brokerages noted the visibility of recurring captive order inflows from Inox Clean, which plans to add 3GW of renewable capacity annually with 20-30% expected to be wind-based (one-third of IWL's annual execution target). Management's strategy to gradually increase pure equipment supply contracts' share in the order book from 27% currently to 75% over time should improve working capital efficiency and margins. Additionally, management provided FY27 revenue growth guidance of 75% YoY with EBITDA margins of 20-22%. ICICI Securities also highlighted management's plans for further backward integration into power electronics and transformer manufacturing, while noting that working capital days have been reduced by 15 days to 195.
ICICI Securities has identified further delays in existing orders as the key risk factor for Inox Wind. The brokerage maintains its BUY rating but has revised the target price to ₹120 from the earlier ₹130 due to execution challenges. The company's stock ended 2.91% lower at ₹93.02 on Friday, with the company's market cap standing at ₹16,076 crore. The stock continues to trade 53% below its 52-week high of ₹198.19 reached on June 2, 2025.
