Nuvama Institutional Equities has reaffirmed its ‘Purchase’ score on Inox Wind, a number one wind power participant and peer of Suzlon Vitality, whereas reducing the 12-month goal worth from ₹236 to ₹190 per share. The revised goal nonetheless implies a possible upside of 38.68 % from Inox Wind’s closing worth of ₹137 on Thursday.
Based on Nuvama, the multibagger inventory delivered modest Q1 FY26 execution of 146 MW, barely under the consensus estimate of round 180 MW. Income for the quarter stood at ₹830 crore, whereas a better working margin of twenty-two.2 %, pushed by a product-heavy combine, resulted in a 7 % beat on consensus EBITDA. Adjusted PAT got here in at ₹110 crore, 11 % forward of estimates, regardless of a non-cash deferred tax cost of ₹40 crore. The corporate secured an order influx of 51 MW, taking the order e book to three.1 GW for execution over the subsequent 24 months, Nuvama mentioned.
Progress Outlook and Market Place:
Nuvama famous that Inox Wind, one in every of solely two wind EPC suppliers in India, is benefiting from robust demand in round the clock (RTC), agency and dispatchable renewable power (FDRE), and industrial & industrial (C&I) segments. The brokerage revised its FY26 and FY27 execution forecasts to 1.1 GW and 1.8 GW, respectively, from 1.2 GW and a couple of GW earlier.
With a 20 % market share, Inox Wind stays alongside Suzlon Vitality as one in every of solely two wind EPC and turbine generator suppliers within the nation. The corporate’s development is supported by a 12 GW annual complete addressable market, 3 MW-plus generators, over 4.5 GW nacelle capability, high-margin (35 %) O&M companies, and a strengthened stability sheet, Nuvama added.
Q1 Monetary Highlights:
The corporate reported its highest quarterly internet revenue and spectacular all-round numbers in Q1FY26. Internet revenue surged 134 % YoY to ₹97.3 crore regardless of the ₹40 crore deferred tax cost. In the identical quarter a yr in the past, internet revenue was ₹41.6 crore. Revenue earlier than tax rose 167 % YoY to ₹138 crore, whereas money revenue after tax elevated 168 % YoY to ₹186 crore.
Income from operations rose 29.2 % to ₹826.3 crore versus ₹639.6 crore in Q1FY25. EBITDA jumped 36.5 % YoY to ₹183.8 crore, and EBITDA margins expanded over 100 bps to 22.2 % from 21 % within the earlier yr. Moreover, the merger of Inox Wind Vitality Ltd into IWL additional strengthened the stability sheet, lowering liabilities by roughly ₹2,050 crore, Nuvama highlighted.
Inventory Value Development:
Within the final one yr, Inox Wind’s inventory has declined 35 % however delivered multibagger returns over the long run, surging 1,197 % over 5 years. Just lately, the inventory confronted corrections, down 9 % in August after 13 % in July and 10 % in June. Nonetheless, positive aspects of 15 % in Could, 2 % in April, and eight.5 % in March mirror intermittent restoration. The inventory at present trades 47 % under its 52-week excessive of ₹258.43 hit in September 2024, and above its 52-week low of ₹128.38 in January 2025.
Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to examine with licensed consultants earlier than making any funding selections.
