Inox Wind Shares Decline 8% Following 45% Drop in Q4 Net Profit, Analysts Label Results a Disappointment

Inox Wind Shares Decline 8% Amid 45% Drop in Net Profit

Inox Wind, a leading wind energy solutions provider, witnessed a sharp decline in its shares on Monday, following a disappointing quarterly performance. The company's consolidated net profit for the March quarter plummeted by nearly 45 percent, leading to a nearly 8 percent drop in its share price.

According to the data, Inox Wind's stock declined by 7.97 percent to an intraday low of Rs 85.61 per share on the National Stock Exchange (NSE). It had opened 3.81 percent lower. The decline in the share price is a continuation of the stock's downward trend over the past four sessions, during which it has lost nearly 11 percent.

The company's quarterly performance was marred by higher expenses, which stood at Rs 1,161.59 crore against Rs 1,103.01 crore in the last quarter of FY25. This led to a decline in its consolidated net profit to Rs 105.68 crore for the March quarter, down from Rs 190.34 crore in the corresponding period of the previous financial year.

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Brokerage firm JM Financial described the quarterly performance as an "all-round miss." The company reported revenue of Rs 1,200 crore in the fourth quarter, down 2 percent year-on-year and below its estimates as well as Street expectations. EBITDA margin stood at 16 percent against its estimate of 21 percent, attributed to weak execution.

JM Financial estimated execution at 85 MW during the quarter, compared with 252 MW in the preceding quarter and 236 MW a year ago. Adjusted profit after tax stood at Rs 110 crore, down 44 percent year-on-year and below estimates.

However, JM Financial noted that Inox Green has expanded its operations and maintenance portfolio to 13 GW from 5 GW in March 2025 through acquisitions, prompting an upward revision in earnings estimates for FY27 and beyond. The brokerage maintained its "ADD" rating on the stock and revised its target price to Rs 101 per share from Rs 120 earlier.

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Meanwhile, Motilal Oswal said Inox Wind reported a weak set of numbers for the fourth quarter but highlighted several positives. The brokerage cited visibility of recurring captive order inflows from Inox Clean, which plans to add 3 GW of renewable energy capacity annually, with 20-30 percent expected to be wind-based. It also highlighted the company's strategy to increase the share of pure equipment supply contracts in its order book from 27 percent currently to 75 percent over time, which it said could improve working capital efficiency and margins.

Motilal Oswal also pointed to the management's FY27 revenue growth guidance of 75 percent year-on-year and EBITDA margins of 20-22 percent. The brokerage lowered its FY27 and FY28 EBITDA estimates by 7 percent and 6 percent, respectively. However, it retained its "Buy" rating on the stock with a target price of Rs 110 per share.

In an investor presentation, the company said its order book of 3.1 GW as of March 31, 2026, providing a large revenue visibility for more than 24 months. Inox Wind is part of the INOXGFL Group and is among the leading wind energy solutions providers.