Indowind Energy Limited, a prominent player in the wind power sector, has announced impressive financial results for the first half of fiscal year 2026. The company's performance highlights its growing strength in the renewable energy market and its ability to capitalize on favorable conditions.

Financial Highlights

Key Performance Drivers

Indowind Energy's strong financial performance in H1 FY26 can be attributed to several factors:

1. Improved Machine Availability: The company's focus on operational efficiency has resulted in better uptime across its wind power assets.

2. Disciplined Cost Management: Effective cost control measures have contributed to the significant improvement in EBITDA margins.

3. Favorable Wind Conditions: The company benefited from healthy wind conditions, which positively impacted power generation.

4. Growing Demand for Green Power: The increasing preference for stable, green power among corporates has supported Indowind's growth plans.

Management Commentary

Mr. Bala Venckat Kutti, Promoter of Indowind Energy Limited, expressed confidence in the company's performance, stating, "This quarter's performance reflects the progress we are making in strengthening our wind power portfolio and improving uptime across our assets. Better machine availability, disciplined cost management and healthy wind conditions helped us deliver a stronger first half."

Company Overview

Indowind Energy Limited, incorporated in 1995, is an Independent Power Producer (IPP) specializing in renewable energy. With over 25 years of experience, the company has established itself as a key player in setting up, operating, and maintaining wind farms. Indowind's strengths include:

• Extensive project management capabilities
• Robust managerial and financial resources
• Dedicated 24x7 O&M team for windmill monitoring and maintenance
• Proven track record in delivering Green Power® to corporates and electricity utilities

Future Outlook

The company's management remains optimistic about future performance, citing the ongoing momentum in the renewable sector and the rising preference for green power among corporates. With its long-standing operating experience and focused O&M capabilities, Indowind Energy is well-positioned to build on its current performance in the coming quarters.

As the renewable energy sector continues to grow, Indowind Energy's strong financial results and strategic positioning in the wind power market suggest a promising outlook for the company's future growth and profitability.

Indowind Energy Limited , a prominent player in the renewable energy sector, has announced its unaudited financial results for the quarter ended September 30. The company's performance comes with notable auditor qualifications, highlighting potential financial concerns.

Financial Performance

For the quarter ended September 30, Indowind Energy reported the following consolidated results:

The company's revenue from operations saw an 11.04% year-over-year increase, while the total revenue grew by 11.46%. The profit before tax improved by 12.25%, although the profit after tax showed a more modest growth of 3.62%.

Auditor Qualifications

The financial results come with significant auditor qualifications that investors and stakeholders should note:

1. Expected Credit Loss Allowance: The auditors have raised concerns regarding the non-recognition of expected credit loss allowance amounting to ₹248.13 lakhs. This pertains to receivables from TNEB Tirunelveli and BESCOM.

2. Arbitration Claim: The auditors have highlighted issues with the accounting treatment of a substantial arbitration claim against Suzlon Group, amounting to ₹9,083.39 lakhs.

These qualifications suggest potential financial risks and uncertainties that may impact the company's financial position and future performance.

Balance Sheet Highlights

As of September 30, Indowind Energy's consolidated balance sheet shows:

The company's total assets have increased by 6.10% since the end of the previous fiscal year, while total equity has grown by 2.56%.

Cash Flow and Liquidity

The cash flow statement reveals:

• Net cash used in operating activities: ₹(323.16) lakhs
• Net cash used in investing activities: ₹(193.31) lakhs
• Net cash generated from financing activities: ₹524.84 lakhs

The company ended the period with cash and cash equivalents of ₹179.91 lakhs, compared to ₹171.54 lakhs at the beginning of the financial year.

Rights Issue Announcement

In a separate announcement, Indowind Energy has approved a rights issue to raise up to ₹49.43 crore. Key details of the rights issue include:

• Issue of 3,22,00,434 fully paid-up equity shares
• Rights issue price: ₹15.35 per equity share
• Rights entitlement ratio: 1:4 (1 new share for every 4 shares held)
• Record date: November 19
• Issue period: December 1 to December 9

This rights issue may provide the company with additional capital for its operations and growth initiatives.

Conclusion

While Indowind Energy has shown revenue growth and profitability in the reported quarter, the auditor qualifications raise important questions about the company's financial management and potential risks. The non-recognition of expected credit losses and the accounting treatment of the arbitration claim are areas that may require further scrutiny and resolution.

The upcoming rights issue may strengthen the company's financial position, but investors should carefully consider the auditor's qualifications and the company's plans to address these concerns before making investment decisions.

Stakeholders are advised to monitor the company's future disclosures and management's responses to the auditor's qualifications for a more comprehensive understanding of Indowind Energy's financial health and prospects.