Inox Wind Limited reported a year-on-year decline in consolidated net profit to 440M Rupees for Q1, compared to 1.06B Rupees in the same period last year, as higher costs impacted margins despite a marginal movement in top-line revenue. Revenue from operations stood at 8.14B Rupees, compared to 8.3B Rupees in the same period last year. Total income increased 1% to ₹872 crore from ₹863 crore in the corresponding quarter of the previous year. The company attributes the performance to a strategic pivot towards equipment supply, aimed at achieving financial robustness, with meaningful benefits expected from Q3 onwards.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by Company Secretary Deepak Banga on August 7, 2026. The earnings presentation also highlighted that Inox Green, a subsidiary, received approval from the National Company Law Tribunal (NCLT), Ahmedabad, to acquire ~4.5 GW of wind O&M assets from Wind World India. This transaction is expected to be completed in Q2FY27, with FY26 revenue from this business segment standing at ₹580 crore.

Financial Performance

Latest data shows consolidated EBITDA declined year-on-year to 1.52B Rupees from 1.84B Rupees, with the EBITDA margin contracting to 18.73% from 22.23%. Profit before tax fell 31% to ₹95 crore. Cash PAT, defined as PAT plus depreciation, deferred taxes, and MAT credit entitlement, decreased 18% to ₹153 crore from ₹186 crore.

The following table summarises the key financial metrics for the quarter:

Other income rose 61% to ₹58 crore from ₹36 crore. Cost of materials consumed increased 12% to ₹446 crore, while erection, procurement, and commissioning costs more than doubled to ₹119 crore from ₹56 crore, reflecting the significant cost pressures that weighed on profitability during the quarter.

Order Book and Strategic Developments

Inox Wind maintains a well-diversified order book of ~4.4 GW as of July 2026, providing revenue visibility of more than 24 months. Key customers include NTPC, CESC, NLC India, Aditya Birla, and Amplus/Gentari. The company has signed an MOU with Inox Clean for 1.5 GW of wind turbine supply, with a firm agreement for the first tranche of 500 MW valued at up to ₹3,500 crore. Additionally, Inox Wind received a Letter of Award from NLC India Ltd for a 200 MW turnkey order along with O&M services in July 2026.

The demerger of the power evacuation business from Inox Green into Inox Renewable Solutions Limited (IRSL) was completed on August 1, 2026. IRSL is expected to be listed on stock exchanges post receipt of statutory approvals. The group continues to leverage synergies across its entities, including Inox Solar and Inox Neo, targeting significant capacity additions in solar and hybrid renewable energy.

What the Numbers Show

The year-on-year decline in consolidated net profit to 440M Rupees from 1.06B Rupees, alongside EBITDA margin compression to 18.73% from 22.23%, underscores the margin pressure driven by rising operational costs. Cost of materials and EPC expenses grew significantly faster than revenue, compressing profitability. However, the robust order book of 4.4 GW and the strategic shift towards high-margin equipment supply align with management's expectation of meaningful financial improvements from Q3FY27 onwards.

Inox Wind Limited reported a standalone net profit of ₹715.1 lakh for the quarter ended June 30, 2026 (Q1FY26), down from ₹867.1 lakh in the same quarter of the previous fiscal year. Consolidated net profit for the period was ₹640.9 lakh, compared to ₹973.4 lakh in Q1FY25. The results reflect stable revenue generation amidst ongoing operational adjustments and regulatory proceedings related to wind farm projects.

The Board of Directors approved the unaudited standalone and consolidated financial results during its meeting held on August 7, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were reviewed by M/s. Dewan P.N. Chopra & Co., Chartered Accountants, the statutory auditors of the company. The Board also approved the re-appointment of Ms. Madhurima Sayan Das (DIN: 06387873) as an Independent Director for a second term of one year, effective September 5, 2026, subject to shareholder approval.

Financial Performance Highlights

Standalone revenue from operations remained relatively flat at ₹7,434.7 lakh, slightly up from ₹7,155.9 lakh in Q1FY25. However, consolidated revenue from operations declined to ₹8,141.0 lakh from ₹8,262.5 lakh in the prior year quarter. EBITDA on a standalone basis was ₹1,586.5 lakh, marginally higher than the ₹1,554.8 lakh recorded in Q1FY25. Consolidated EBITDA decreased to ₹2,100.9 lakh from ₹2,200.0 lakh in the corresponding period.

Rights Issue and Corporate Developments

The company confirmed there has been no deviation in the use of proceeds from its rights issue, which aggregated up to ₹1,250 crore. The Board had approved the issuance of 10,41,10,712 equity shares at ₹120 per share, resulting in an aggregate issue size of ₹1,249.33 crore. The issue period ran from August 6, 2025, to August 20, 2025. Additionally, the company transferred its investment of ₹275.43 lakh in Inox Renewable Services Limited to various group parties, diluting its holding from 88.84% to 88.41% as of June 30, 2026.

Regulatory and Operational Notes

Auditors highlighted matters regarding invested funds in six special purpose vehicles (SPVs) established through Inox Green Energy Services Limited (IGESL). Bank guarantees of ₹557.8 lakh were invoked after project completion dates expired, and appeals are pending before the Appellate Tribunal for Electricity (APTEL). The management believes it will recover funds once projects are commissioned. Furthermore, EPCG licenses with statutory liabilities of ₹430.6 lakh have expired, with extension applications pending. The company expects no significant impact on financial statements from these uncertainties.

What the Numbers Show

While revenue streams remained resilient, the decline in consolidated net profit and EBITDA suggests margin pressure or increased operational costs in the group entities. The flat standalone revenue against a slight dip in consolidated figures indicates that subsidiary performance may be weighing on overall group profitability. The successful completion of the large-scale rights issue provides capital flexibility, but the ongoing regulatory disputes over SPV investments remain a key risk factor requiring monitoring.