Synopsis:
A renewable energy stock moved higher in early trade after brokerage firm Nuvama Institutional Equities reiterated its ‘Buy’ call, citing stronger execution visibility, balance sheet improvements, and favorable sector reforms.
A renewable energy stock edged higher after a leading brokerage reaffirmed its positive stance, highlighting restructuring gains, execution visibility, and sectoral reforms as growth drivers. The stock has been under pressure recently, falling over 34 percent in the past year and shedding more than 21 percent in the last three months, but analysts see scope for a reversal.
Inox Wind Ltd, with a market capitalization of Rs. 24,921.19 crore, opened at Rs. 145.10 against the previous close of Rs. 144.40. The stock touched an intraday high of Rs. 146.70, marking a 1.6 percent increase from the previous close.
What’s the News?
Brokerage firm Nuvama Institutional Equities has reiterated its ‘Buy’ call on Inox Wind with an unchanged target price of Rs. 190, implying a 30.9 percent potential upside from today’s opening price of Rs. 145.10. Analysts cited stronger execution visibility, improved financial health, and favorable sector policies.
“We foresee revenue visibility till FY27 backed by a 3.1 GW order book and retain ‘Buy’ with a target price (TP) of Rs. 190 at 30x FY27E WTG EPS plus DCF of O&M (IGEL),” Nuvama analysts Subhadip Mitra, Vikram Datwani, and Mahir Moondra said in a note dated September 4.
Restructuring Drives Strength
According to Nuvama, the INOXGFL Group has undertaken a significant restructuring exercise, positioning itself as a leaner, more integrated renewable platform. Key steps included merging Inox Wind Energy Ltd into the WTG business, raising funds via a rights issue to deleverage the balance sheet, and carefully expanding wind capacity. Subsidiaries Inox Green Energy Services (IGESL) and Inox Renewable Solutions (IRSL) have further diversified their operations, enhancing long-term growth prospects.
Order Book and Execution Guidance
The company’s WTG business is expected to benefit from the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM) policy, effective July 31, 2025. This is set to reduce import dependence and strengthen domestic players. Execution guidance stands at 1.2 GW in FY26 and 2 GW in FY27, though Nuvama conservatively factors in 1.1 GW and 1.8 GW respectively.
Margin guidance has been revised upwards to 18–19 percent, compared to 17–18 percent earlier. The company’s robust 3.1 GW order book provides nearly two years of visibility, supported by both turnkey and equipment-supply contracts. Working capital days are expected to improve to around 120, while the recent GST cut on wind equipment from 18 percent to 5 percent could reduce tariffs and spur demand.
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Subsidiaries Drive Diversification
Inox Green Energy Services, the O&M subsidiary, has expanded into solar O&M, taking its managed portfolio to 5.3 GW with a target of 17 GW by FY27. It has also invested in a 2 GW special-situation asset and awaits NCLT approval to transfer its substation business into IRSL, thereby positioning itself as an asset-light platform.
Meanwhile, Inox Renewable Solutions has begun transformer manufacturing, launched crane services, and is preparing to absorb IGESL’s substation business. It recently raised Rs. 1.75 billion at a Rs. 74 billion valuation, with a public listing expected in the coming quarters.
Financial Snapshot
On a sequential basis, sales fell 35.2 percent to Rs. 826 crore in Q1FY26 from Rs. 1,275 crore in Q4FY25. Operating profit declined 27.5 percent to Rs. 184 crore from Rs. 254 crore. Profit before tax fell 33.7 percent to Rs. 138 crore from Rs. 208 crore, while net profit dropped 48.9 percent to Rs. 97 crore from Rs. 190 crore.
On a yearly basis, sales rose 29.1 percent to Rs. 826 crore in Q1FY26 from Rs. 640 crore in Q1FY25. Operating profit grew 36.3 percent to Rs. 184 crore from Rs. 135 crore. Profit before tax more than doubled, rising 150.9 percent to Rs. 138 crore from Rs. 55 crore, while net profit jumped 131 percent to Rs. 97 crore from Rs. 42 crore.
About the Company
Founded in 2009, Inox Wind provides a complete range of wind energy solutions, from manufacturing and supplying wind turbine generators to wind resource assessment, site acquisition, infrastructure development, project erection and commissioning, and long-term operations and maintenance.
Through its subsidiary Resco Global, the company also builds substations and transmission lines for wind and hybrid projects. It has operations across eight Indian states, including Rajasthan, Gujarat, Karnataka, Madhya Pradesh, Tamil Nadu, Kerala, Andhra Pradesh, and Maharashtra.
Written by – Manan
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