Inox Green Energy Services Limited (IGESL) has issued a clarification regarding the recent revocation of grid access for its 300MW wind project in Gujarat, emphasizing that this development does not materially impact the company's operations or financial outlook.

Key Points of Clarification

• Project Background: IGESL (formerly Inox Wind Infrastructure Services Limited) was awarded a 300MW wind power project in Kutch, Gujarat, in 2018.
• Grid Access Issues: The Central Electricity Regulatory Commission (CERC) upheld the decision by Central Transmission Utility of India Limited (CTUIL) to disconnect grid access for this project.
• Reasons for Project Unviability:
  • Significant delays in CTUIL's inter-connecting common evacuation infrastructure
  • Increased costs of Wind Turbine Generators (WTGs) and project infrastructure
  • Delays in land allotment, exacerbated by the COVID-19 pandemic

Impact on Inox Green

IGESL has stated that this event does not materially affect the company due to the following reasons:

1. Core Business Focus: IGESL's primary business is the operation and maintenance (O&M) of renewable power assets, not project development.
2. Extensive O&M Portfolio: The company manages approximately 12.5 GW of renewable assets, including 6.5 GW of wind O&M assets under its control.
3. No Financial Impact: The company asserts that this event will not affect its revenues or future guidance.

Company's Response

• IGESL is exploring all options, including the possibility of approaching the Appellate Tribunal for Electricity, based on legal advice.
• The company maintains that it promptly discloses all material events as required under SEBI Listing Regulations, and this particular event did not warrant such disclosure.

Future Outlook

Despite this setback, IGESL remains confident in its position in the renewable energy sector:

• The company is progressing towards becoming India's largest renewables O&M company.
• The broader INOXGFL Group controls significant project site infrastructure and grid connectivity, positioning it for future large-scale capacity additions.

This clarification from Inox Green Energy Services Limited underscores the company's focus on its core O&M business and its resilience in the face of project-specific challenges in the dynamic renewable energy sector.

Inox Green Energy Services Limited (IGESL) has reported a robust financial performance for the second quarter of fiscal year 2026, alongside announcing the allotment of shares under its employee stock option scheme.

Financial Highlights

For Q2 FY26, IGESL reported:

• Total income of Rs 129.50 crores, up 101% year-over-year (YoY) from Rs 64.40 crores in Q2 FY25
• EBITDA of Rs 52.20 crores, a 52% YoY increase from Rs 34.40 crores
• Profit after tax (PAT) of Rs 28.10 crores, surging 363% YoY from Rs 6.10 crores
• Cash PAT of Rs 50.90 crores, growing 121% YoY from Rs 23.10 crores

The company's machine availability improved to 96.3% in Q2 FY26, indicating enhanced operational efficiency.

Business Expansion

IGESL has completed investments to acquire 6.5 GW of wind Operations & Maintenance (O&M) assets, taking its total O&M portfolio to approximately 12.5 GW. These numbers are expected to consolidate into the profit and loss statement in FY27.

Corporate Actions

The company's board has approved the allotment of 102,500 equity shares under the 'Inox Green - Employees Stock Option Scheme 2024' (ESOS 2024). This allotment has increased the company's issued and paid-up equity share capital from Rs. 373,37,24,900 to Rs. 373,47,49,900.

Demerger Update

IGESL has received approval from shareholders and creditors for the scheme of demerger of its substation business and subsequent merger into Inox Renewable Solutions. This strategic move is expected to result in the elimination of depreciation.

Future Outlook

With its expanding O&M portfolio and strategic corporate actions, IGESL appears well-positioned in the renewable energy sector. The company's focus on operational efficiency and portfolio expansion could potentially impact its financial performance in the coming quarters.