Inox Wind, a prominent player in India's wind energy sector and a peer to multibagger Suzlon Energy, has received a 'Buy' recommendation from brokerage firm Motilal Oswal. This endorsement comes despite a challenging period for the company, including weak order inflows and a significant decline in its stock price.
The company's shares have experienced a sharp downturn, plummeting 52% over the past year and 53% from their 52-week high of Rs 198.19 recorded on June 2, 2025. On Friday, Inox Wind shares closed 2.91% lower at Rs 93.02, valuing the company at Rs 16,076 crore.
Weak Inflows and Revenue Miss
During the fiscal year 2026 (FY26), Inox Wind secured relatively weak order inflows, totaling only 600MW of new orders. The company also missed its FY26 revenue guidance by 9%, signaling operational hurdles.
Motilal Oswal acknowledged these challenges, reducing its FY27 and FY28 EBITDA estimates by 7% and 6% respectively, anticipating lower deliveries of 1.2GW in FY27 and 1.4GW in FY28. However, the brokerage firm reiterated its 'Buy' rating, citing attractive valuations, and set a revised target price of Rs 110 per share, based on 20x FY28E EPS.
Q4 FY26 Performance and Future Outlook
Inox Wind reported its Q4 FY26 results on May 29, 2026, showing a consolidated net profit fall of 45% to Rs 106 crore, down from Rs 190 crore in Q4 FY25. This profit decline was attributed to geopolitical disruptions and increased interest burdens. EBITDA also decreased by 21% year-on-year to Rs 200 crore, with the EBITDA margin narrowing to 16.04% from approximately 20% in the prior-year quarter.
Key Positives Noted by Motilal Oswal:
- Captive Order Inflows: Strong visibility of recurring captive order inflows from Inox Clean, which plans to add 3GW of renewable capacity annually, with 20-30% expected to be wind-based. This could account for a significant portion of Inox Wind's annual execution target.
- Strategic Shift: Management's strategy to gradually increase the share of pure equipment supply contracts in its order book from 27% to 75% over time. This move is expected to enhance working capital efficiency and improve margins.
- Growth Guidance: Management's FY27 revenue growth guidance of 75% year-on-year, coupled with EBITDA margins projected between 20-22%.
Inox Wind Limited (IWL) is a key provider of wind energy solutions in India, serving various clients including Independent Power Producers (IPPs), Utilities, Public Sector Undertakings (PSUs), and corporate investors. The company is part of the US$12 billion INOXGFL Group, which has a long-standing legacy in chemicals and renewable energy.