Inox Wind’s record Q1 FY26 earnings and 3.1 GW order book fuel optimism for India’s wind revolution

India’s shift towards clean energy is gathering unprecedented momentum, and Inox Wind Limited (NSE: INOXWIND) is positioning itself at the heart of this transition. In its earnings announcement dated 14 August 2025, the integrated wind turbine manufacturer reported its strongest ever first-quarter performance, with profit after tax (PAT) soaring 134 percent year-on-year to ₹97 crore. Revenue rose 32 percent to ₹863 crore, while EBITDA surged 39 percent to ₹220 crore. On a cash PAT basis, which strips out non-cash deferred tax charges, earnings climbed 168 percent to ₹186 crore.

The company executed 146 megawatts of projects in the quarter, while maintaining a record order book of 3.1 gigawatts, which offers strong visibility for the next two years. According to management, growth was driven by robust domestic demand, supportive government policy frameworks such as the Approved List of Models and Manufacturers (ALMM), and the operationalisation of new manufacturing and services facilities.

How is India’s policy framework shaping the growth opportunity for wind energy players like Inox Wind in FY26 and beyond?

India has committed to achieving 500 gigawatts of non-fossil fuel power capacity by 2030, with wind energy expected to contribute more than 140 gigawatts. However, the sector has historically lagged solar due to uneven regulation, land acquisition hurdles, and transmission bottlenecks. That trend is shifting as policy clarity improves.

The government has introduced measures such as uniform tariff structures, hybrid tenders combining wind and solar projects, and the ALMM framework. This initiative requires government-sponsored projects to use locally manufactured turbines and components, effectively creating a quality assurance and domestic capacity boost mechanism. For original equipment manufacturers like Inox Wind, this provides a level playing field against imports while stimulating investment in domestic supply chains.

With a vertically integrated capacity of 2.5 gigawatts annually, spanning blades, towers, hubs, nacelles, and 3 MW series wind turbine generators, Inox Wind is well placed to leverage this policy environment. Facilities across Gujarat, Himachal Pradesh, and Madhya Pradesh form the backbone of this manufacturing scale, enabling cost efficiency and reduced import dependency.

What operational milestones did Inox Wind achieve in Q1 FY26 and how do these changes enhance vertical integration?

During the quarter, Inox Wind operationalised a new nacelle plant near Ahmedabad, Gujarat, and inaugurated a transformer manufacturing unit in Rajasthan. These moves, combined with the deployment of in-house crane services, deepen vertical integration and reduce reliance on third-party contractors.

Project execution also improved, with 146 MW completed versus 140 MW in the prior year. The company secured a fresh equipment supply order from First Energy, broadening its portfolio of public sector utilities, corporate clients, and independent power producers.

Restructuring steps added further resilience. The merger of Inox Wind Energy Limited into Inox Wind reduced liabilities by roughly ₹2,050 crore, strengthening the balance sheet. Additionally, the proposed demerger of the substation business from Inox Green Energy Services and its merger into Inox Renewable Solutions has already secured stock exchange approvals, streamlining operations.

How do Inox Wind’s financial results highlight its profitability trajectory and cash flow generation capacity?

Financially, Inox Wind’s Q1 FY26 numbers demonstrated the benefits of scale and efficiency. Revenue growth of 32 percent to ₹863 crore, coupled with EBITDA growth of 39 percent, underscored operational leverage. Profit before tax climbed 167 percent to ₹138 crore.

While a deferred tax adjustment of ₹40 crore moderated reported PAT to ₹97 crore, the underlying cash PAT of ₹186 crore indicated strong cash generation. This will allow the company to reinvest in working capital, expand capacity, and support execution of its sizeable order book.

The company’s operations also benefit from synergies across the INOXGFL Group, which spans chemicals, renewables, electric vehicles, and energy storage. These adjacent capabilities provide opportunities for cross-selling, innovation, and a stronger positioning as India embraces decarbonisation.

How is Inox Wind’s stock performing in relation to earnings momentum and sector sentiment?

Following its results, Inox Wind’s shares traded around ₹137.03 on 17 August 2025, reflecting a modest 2 percent uptick. With a price-to-earnings ratio of 51.89 and a price-to-book ratio of 3.76, the stock trades at a premium relative to book value. The company’s market capitalisation stood at ₹23,676.86 crore, with a 52-week trading range between ₹136 and ₹138.95.

This narrow band suggests heightened investor confidence but limited near-term upside unless execution significantly exceeds expectations. Institutional sentiment remains bullish on the sector, with renewable energy allocations climbing in portfolios. Analysts caution, however, that a high P/E multiple reflects already priced-in growth.

From a retail perspective, the stock’s limited free float due to promoter holdings makes price action more volatile. Long-term investors may view the stock as an attractive play on India’s wind expansion, while traders could focus on volatility around tender outcomes or policy announcements.

What are the key risks and opportunities that shape Inox Wind’s future outlook in India’s clean energy market?

Looking ahead, Inox Wind has outlined ambitious plans. Management aims to execute over 600 MW of projects in FY26, while scaling up manufacturing to meet anticipated demand. The company is also exploring hybrid wind-solar projects and leveraging group expertise in batteries and electric vehicles to expand into energy storage.

Export opportunities are on the table, with South Asia emerging as a potential market and global supply chains opening for locally manufactured turbines. On the domestic front, the company is engaging with policymakers to push for long-term power purchase agreements and faster grid upgrades—both critical for scaling wind capacity.

Risks remain, including execution challenges, tender delays, and global supply-chain disruptions. Technological shifts, particularly in turbine design and efficiency, could also create competitive pressures. Still, policy tailwinds such as ALMM, decarbonisation mandates, and corporate sustainability commitments suggest a robust demand outlook.

Is Inox Wind a buy, hold, or sell after its record Q1 performance?

Investor sentiment leans bullish given the record results, strong order book, and policy support. Yet, valuations remain stretched. At a P/E near 52, much of the growth appears priced in.

Institutional investors are likely to maintain or increase allocations given sectoral tailwinds, while foreign institutional inflows could strengthen as India’s clean energy story garners global attention. Domestic institutions may adopt a cautious “buy on dips” stance, looking for confirmation of sustained margins and execution at scale.

For retail investors, the stock presents both opportunity and risk. A long-term “buy on corrections” approach aligns with the sector’s multi-year runway. Short-term traders, however, may find better opportunities capitalising on volatility around policy announcements and tender results.