- You missed the biggest wind‑energy profit jump of the year.
- Standalone net profit rose 115% YoY to ₹126.33 cr, while consolidated profit grew 14%.
- EBITDA surged 39% to ₹313 cr, signaling strong operating leverage.
- Order book now sits at ~3.2 GW, with ~600 MW booked in FY26 alone.
- Employee Stock Option Scheme priced at a 50% discount could add upside pressure.
You missed the biggest wind‑energy profit jump of the year.
Inox Wind Limited (IWL) delivered what the company calls “one of the strongest ever quarterly financial and operational performances” for Q3 FY26. The numbers are eye‑watering: standalone net profit more than doubled, EBITDA jumped nearly 40%, and total income climbed 17% YoY. But raw figures only tell half the story. To decide whether this is a fleeting spike or the start of a multi‑year rally, investors must dig into sector dynamics, competitive positioning, and the strategic moves that could reshape cash flow over the next 12‑18 months.
Why Inox Wind’s Profit Explosion Beats Sector Averages
The wind‑energy segment in India has been expanding at a CAGR of roughly 12% over the past three years, driven by aggressive renewable‑energy targets and state‑level auctions. Most peers, including Tata Power Renewable Energy and Adani Green, posted revenue growth in the high‑single‑digit range in Q3 FY26, while EBITDA margins hovered around 20‑22%.
Inox Wind, however, posted a consolidated EBITDA of ₹313 cr, translating to an EBITDA margin of ~25% (313/1,238). That outpaces the sector median by 3‑4 percentage points, indicating superior cost control and higher‑margin project mix. The 39% jump in EBITDA relative to the same quarter last year underscores that the company is not just growing top‑line; it is converting that growth into real operating profit.
How Inox Wind’s Order Book Stacks Against Tata Power & Adani Green
Order‑book depth is the lifeblood of any project‑heavy business. Inox Wind reported a diversified pipeline of ~3.2 GW, with 600 MW booked in FY26 from marquee customers such as Aditya Birla, Amplus/Gentari, and First Energy. By contrast, Tata Power Renewable Energy’s order book sits at roughly 2.8 GW, while Adani Green’s pipeline is concentrated in solar, with wind projects accounting for just under 1 GW.
Two observations emerge:
- Customer diversification reduces concentration risk. Inox’s slate spans industrial, commercial, and utility players, mitigating the impact of any single client’s credit or policy changes.
- Strategic partnership with KP Energy. The joint development of 2.5 GW of wind assets across India positions Inox as a preferred EPC partner, potentially locking in future margins and creating a steady pipeline of high‑margin contracts.
Historical Context: Past Wind‑Energy Booms and What They Teach Investors
India’s wind‑energy sector experienced a similar profit surge in FY19 when the government announced a 175 GW renewable‑energy target. Companies that capitalized on that wave—such as Suzlon and ReNew Power—saw share price multiples expand dramatically, but many fell short on execution, leading to a correction in FY21.
The key differentiator for the winners was disciplined project execution and a focus on higher‑margin, utility‑scale contracts. Inox Wind’s Q3 narrative mirrors those success factors: a solid order book, strong EBITDA conversion, and a clear execution roadmap. History suggests that if the company maintains execution discipline, the upside can be sustained.
Technical Definitions: EBITDA, Net Profit, Order Book Explained
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures core operating profitability, stripping out financing and accounting effects. A rising EBITDA margin signals operational efficiency.
Net Profit is the bottom‑line earnings after all expenses, taxes, and interest. Inox’s 115% YoY jump indicates both top‑line growth and cost‑structure improvements.
Order Book refers to contracted future projects that will generate revenue once executed. A larger, diversified order book reduces earnings volatility.
Impact of the Substation Demerger on Future Cash Flow
The proposed demerger of the substation business from Inox Green into Inox Renewable Solutions is now in the final hearing stage before the NCLT. If approved, the move will separate a capital‑intensive, lower‑margin segment from the higher‑margin wind‑EPC business. This structural split could improve the free cash flow conversion rate, making the core wind business more attractive to equity investors and possibly unlocking hidden valuation multiples.
Investor Playbook: Bull vs Bear Cases for Inox Wind
Bull Case
- Continued pipeline growth to >4 GW by FY28, driven by the KP Energy partnership.
- EBITDA margin expansion to 28% as the company leverages economies of scale.
- Successful demerger yields a cleaner balance sheet and higher free cash flow yield.
- Employee Stock Option Scheme (ESOP) priced at 50% discount creates insider alignment and could spur a modest share‑price boost post‑vest.
- Favorable policy environment: India’s target of 60 GW wind capacity by 2030 adds tailwinds.
Bear Case
- Execution delays in the 2.5 GW joint projects could stall revenue recognition.
- Raw material cost inflation (steel, composite blades) erodes margins if not passed on.
- Regulatory risk: changes in tariff structures or auction timelines could compress project economics.
- ESOP dilution if a large number of options are exercised simultaneously, pressuring share price.
- Competitor pricing pressure: Tata Power’s aggressive bidding may win marquee contracts, reducing Inox’s win‑rate.
Bottom line: Inox Wind’s Q3 FY26 results showcase a rare blend of top‑line acceleration, margin expansion, and a robust order book. Investors who align with the bullish narrative should consider a position now, while keeping an eye on execution milestones and the outcome of the substation demerger. The upside potential is compelling, but the usual execution risks inherent to the capital‑intensive wind‑energy sector remain.