Shares of Inox Wind Ltd experienced significant selling pressure in early Monday trade, falling 7.85% to a low of Rs 91.10. This slump followed the company's subdued fourth-quarter (Q4 FY26) earnings report, which largely missed market expectations.
Q4 Performance Falls Short of Estimates
Motilal Oswal Financial Services Ltd (MOFSL) highlighted that Inox Wind's Q4 performance was below forecast, with revenue missing its estimate by a substantial 34%. The company's EBITDA stood at Rs 200 crore, with the EBITDA margin declining to 16% from 23% in Q3 FY26 and 20% in Q4 FY25. Adjusted Profit After Tax (PAT) came in at Rs 90 crore, a significant 58% below analyst estimates.
Furthermore, Inox Wind did not meet its own FY26 revenue guidance (including other income) of Rs 5,000 crore, missing it by 9%. For the full fiscal year 2026, revenue was reported at Rs 4,390 crore, EBITDA at Rs 890 crore, and adjusted PAT at Rs 400 crore.
Brokerages Adjust Targets, Maintain Positive Outlook
Despite the earnings miss, several brokerages maintained their positive recommendations on Inox Wind, though they did adjust their target prices downwards.
- Motilal Oswal Financial Services Ltd (MOFSL): MOFSL retained its 'BUY' rating, citing attractive valuations. However, they revised their 12-month target price to Rs 110 per share (based on 20x FY28E EPS) from an earlier higher figure.
- Nuvama Institutional Equities: Nuvama also lowered its target price, attributing the adjusted consolidated profit impact to geopolitical issues that delayed key ECS supplies and customer payments, which in turn pressured working capital. They trimmed their FY27E/28E execution estimates and revised their target price to Rs 123 (from Rs 155 earlier) based on 20x FY28E EPS plus DCF for O&M, while maintaining a 'BUY' rating.
- JM Financial: Describing the March quarter as an "all-round miss," JM Financial also reduced its target price. However, they pointed to the expansion of Inox Green's Operations & Maintenance (O&M) business as a positive future growth driver. Inox Green's O&M portfolio expanded to 13GW from 5GW in March 2025, leading to upward revisions in FY27 and beyond earnings estimates. JM Financial maintained an 'ADD' rating with a revised SOTP-based target price of Rs 101 (earlier Rs 120).
Brokerages acknowledge the short-term headwinds but see long-term value, particularly with the growth of the O&M segment and overall attractive valuations in the wind energy sector.
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