Inox Green Energy Services Limited (IGESL) has achieved a significant milestone in its corporate restructuring efforts. The company announced that it has received approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) for its proposed Scheme of Arrangement.

Scheme Details

The approved Scheme of Arrangement involves Inox Green Energy Services Limited as the Demerged Company/Transferor Company and Inox Renewable Solutions Limited (IRSL, formerly known as Resco Global Wind Services Limited) as the Resulting Company/Transferee Company. This development follows the company's earlier announcement on November 13, when its Board of Directors approved the scheme, subject to regulatory approvals.

Regulatory Approval

Both BSE and NSE have issued their Observation Letters dated July 18, with 'No adverse observation/No objection' to the proposed scheme. This approval is a crucial step forward in the company's restructuring plans, as it allows IGESL to proceed with filing the scheme with the National Company Law Tribunal (NCLT).

Key Points from the Approval

The stock exchanges have outlined several conditions and disclosure requirements that Inox Green Energy Services must adhere to:

1. Transparency: The company must disclose all details of ongoing adjudication, recovery proceedings, and any enforcement actions against the company, its promoters, and directors.

2. Information Disclosure: Additional information submitted after filing the scheme must be displayed on the company's and stock exchanges' websites.

3. Compliance: IGESL must ensure compliance with SEBI circulars and various provisions of the Master Circular.

4. Shareholder Information: The explanatory statement sent to shareholders must include detailed information about unlisted companies involved in the scheme.

5. Financial Updates: The financials considered for the scheme, including those used for valuation, should not be more than 6 months old.

Next Steps

With this approval, Inox Green Energy Services can now move forward with filing the scheme with the NCLT. The company must ensure that the scheme is submitted to the NCLT within six months from the date of the Observation Letter.

Impact and Outlook

This approval marks a significant step in Inox Green Energy Services' corporate restructuring process. While the specific details and rationale of the arrangement plan were not disclosed, such corporate actions often aim to streamline operations, improve efficiency, or realign business segments.

Investors and stakeholders will be keenly watching the next steps in this process, particularly the NCLT proceedings and any potential impact on the company's operations and financial structure.

As the renewable energy sector continues to grow in importance, Inox Green Energy Services' strategic moves could potentially position it better in the evolving market landscape. However, the full implications of this arrangement will only become clear as more details emerge and the scheme progresses through regulatory channels.

Inox Green Energy Services Ltd. , a prominent player in the renewable energy sector, has reported a significant drop in its fourth-quarter profit, despite showing growth in revenue. The company's financial results have sparked concerns among investors, leading to a decline in its share price.

Q4 Financial Highlights

Inox Green Energy Services experienced a substantial decrease in its net profit for the fourth quarter, with earnings falling by 73.9% to Rs 5.60 crore. This sharp decline in profitability comes as a disappointment to investors and analysts alike.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also took a significant hit, plummeting by 92.9% to Rs 0.81 crore. This drastic reduction in EBITDA suggests a considerable squeeze on the company's operational efficiency during the quarter.

However, it wasn't all negative news for Inox Green Energy. The company managed to achieve a 30.4% growth in revenue, indicating an expansion in its business operations despite the challenging environment.

Market Reaction

The market's response to Inox Green Energy's financial results was swift and negative. Following the announcement, the company's share price dropped by 3.25%, reflecting investor concerns about the sharp decline in profitability.

Financial Performance Analysis

A closer look at the company's income statement reveals some interesting trends:

While the company's revenue showed growth compared to the same quarter last year, the decline in EBITDA and net profit is evident. The operating profit margin (OPM) saw a dramatic decrease from 20.22% in Q4 FY2024 to just 1.27% in Q4 FY2025, indicating significant pressure on the company's operational efficiency.

Challenges and Outlook

The sharp decline in profitability despite revenue growth suggests that Inox Green Energy Services is facing challenges in managing its costs and maintaining operational efficiency. The company's expenses increased by 61.48% year-over-year, outpacing its revenue growth and putting pressure on margins.

While the renewable energy sector continues to show promise, Inox Green Energy Services will need to focus on cost management and operational improvements to reverse the trend of declining profitability. Investors and analysts will be closely watching the company's performance in the coming quarters for signs of a turnaround in its profit margins and overall financial health.

As the renewable energy landscape evolves, Inox Green Energy Services' ability to adapt to market challenges and improve its operational efficiency will be crucial in determining its future performance and investor confidence.