Shares of Inox Wind, a prominent peer to multibagger Suzlon Energy, are poised for an 18% upside, according to a recent analysis by brokerage firm Motilal Oswal (MOFSL). This optimistic outlook comes despite the company experiencing relatively weak order inflows and missing its revenue guidance for the fiscal year 2026.
Inox Wind secured only 600MW of new orders during FY26, falling short of its revenue guidance by 9%. The stock closed 2.91% lower at Rs 93.02 on Friday, with its market capitalization standing at Rs 16,076 crore. Over the past year, Inox Wind shares have seen a significant decline, falling 52% and 53% from its 52-week high of Rs 198.19 recorded on June 2, 2025. The stock's Relative Strength Index (RSI) currently sits at 42.8, indicating it is neither in the oversold nor overbought territory.
Q4 FY26 Performance and Challenges
Inox Wind reported its Q4 FY26 results on May 29, 2026, revealing a consolidated net profit decrease of 45% to Rs 106 crore, down from Rs 190 crore in Q4 FY25. Profits were impacted by geopolitical disruptions and increased interest burdens. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a 21% year-on-year drop to Rs 200 crore, with the EBITDA margin narrowing to 16.04% from approximately 20% in the prior-year quarter.
Motilal Oswal's Rationale for 'Buy' Call
Despite these challenges, Motilal Oswal maintains its 'BUY' rating, citing several key factors for its confidence in Inox Wind:
- Captive Order Inflows: The brokerage highlights strong visibility of recurring captive order inflows from Inox Clean, which plans to add 3GW of renewable capacity annually. Of this, 20-30% is expected to be wind-based, representing approximately one-third of Inox Wind's annual execution target.
- Strategic Shift to Equipment Supply: Management's strategy to gradually increase the share of pure equipment supply contracts in its order book, from the current 27% to 75% over time, is expected to significantly improve working capital efficiency and profit margins.
- Positive FY27 Guidance: The management's guidance for FY27 projects robust revenue growth of 75% year-on-year, coupled with EBITDA margins in the range of 20-22%.
MOFSL has revised its FY27 and FY28 EBITDA estimates downwards by 7% and 6% respectively, anticipating lower deliveries of 1.2GW and 1.4GW for those periods. However, the brokerage has set a revised target price of Rs 110 per share, based on 20x FY28E EPS, affirming its 'BUY' recommendation due to what it considers attractive valuations.
Inox Wind Limited (IWL) is a leading Indian provider of wind energy solutions, serving Independent Power Producers (IPPs), Utilities, Public Sector Undertakings (PSUs), and corporate investors. IWL is an integral part of the US$12 billion INOXGFL Group, which boasts a legacy of over nine decades in the chemicals and renewable energy sectors.