Inox Wind shares tumble over 8 pc after Q4 profit drops 45 pc
Mumbai, June 1
Shares of Inox Wind fell more than 8 per cent on Monday after the company reported a sharp decline in its earnings for the fourth quarter of FY26.
The wind energy solutions provider reported a consolidated net profit of Rs 105.68 crore for the January-March quarter, marking a decline of nearly 45 per cent from Rs 190.34 crore recorded in the corresponding period of the previous financial year.
The fall in profitability came as operating expenses rose significantly during the quarter.
The company's total income from operations stood at Rs 1,305.50 crore in the fourth quarter, marginally lower than Rs 1,310.65 crore reported a year earlier.
Total expenses increased to Rs 1,161.59 crore from Rs 1,103.01 crore in the year-ago period, weighing on earnings.
Despite the weak quarterly performance, Inox Wind said its order book remained strong at 3.1 GW as of March 31, 2026, providing revenue visibility for more than two years.
The company attributed the pressure on its financial performance to execution-related challenges, geopolitical disruptions affecting the supply of equipment and components, logistical bottlenecks, and delayed customer payments amid a challenging macroeconomic environment.
These factors, it said, continued to keep working capital requirements elevated during the quarter.
Commenting on the results, Nuvama Institutional Equities said Inox Wind's Q4 FY26 performance was significantly below expectations.
According to the brokerage, revenue came in at Rs 1,240 crore against its estimate of Rs 2,150 crore.
Operating profit margin declined to 16 per cent from 19.9 per cent a year ago as engineering, procurement and construction (EPC) costs surged 95 per cent year-on-year (YoY), resulting in EBITDA coming in nearly 45 per cent below consensus estimates.
Given the execution challenges on the ground, Nuvama reduced its execution forecasts for FY27 and FY28 to 1.4 GW and 1.75 GW, respectively, from earlier estimates of 1.6 GW and 2 GW.
The brokerage also lowered its earnings estimates for the two fiscal years by 33 per cent and 34 per cent, respectively.
— IANS
Reader Comments
So the profit is down but revenue is almost same? Expenses have gone up by ~5% but profit dropped 45%... Something doesn't add up. Either accounting differences or one-time costs. Need more clarity from management.
Yet another example of renewable energy stocks getting punished. The fundamentals of wind energy in India remain strong - we need more capacity to meet 2030 targets. Short-term pain but long-term potential. 😐
I've been following Inox Wind for a while. The order book is healthy - 3.1 GW is impressive. But execution challenges and delayed payments are typical issues in India's infrastructure sector. Hope they streamline operations by next quarter.
Nuvama cutting FY27-28 forecasts by 33% and 34% is brutal. Shows how Q4 results were a major miss. Management needs to address supply chain issues urgently. Geopolitical disruptions affecting components is a valid excuse but competitive pressures won't wait.
Wind energy sector is facing headwinds (pun intended 😅). But seriously, with government pushing renewable targets, companies like Inox Wind should benefit long term. Maybe a good entry point for patient investors who can ignore short-term volatility.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.