Inox Wind shares rise 3%; why is JM Financial bullish on this stock?

Inox Wind shares rose 2.5 per cent on Tuesday and registered an intra-day high at ₹144.7 per share on BSE, after management raised its Ebitda guidance to 18-19 per cent

Inox Wind shares rose 2.5 per cent on Tuesday and registered an intra-day high at ₹144.7 per share on BSE. At 10:09 AM, Inox Wind's share price was trading 2.09 per cent higher at ₹144 per share. In comparison, the BSE Sensex was up 0.44 per cent at 80,715.14. The market capitalisation of the company stood at ₹24,886.62 crore. The 52-week high of the stock was at ₹258.43 per share, and the 52-week low was at ₹128.38.

 

In one year, Inox Wind shares have lost 35.6 per cent, as compared to Sensex’s decline of 2.6 per cent.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why were Inox Wind shares rising? 

The northward movement in the stock came after the company’s management raised its Earnings before interest, tax , depreciation and amortisation (Ebitda) margin guidance from 17–18 per cent to 18–19 per cent, while reiterating its execution guidance of 1,200MW for FY26 and 2,000MW for FY27. During the call, the management emphasised prioritising profitability over volume metrics, according to JM Financial Institutional Securities. 

 

Further, a pickup in execution is expected from Q3FY26 onwards, as execution typically accounts for 30–35 per cent of annual volume in H1FY26 and 65–70 per cent in H2FY26. The recent Central Electricity Regulatory Commission (CERC) circular on hybridisation of existing transmission infrastructure is expected to further improve execution, providing the company access to nearly 10GW of plug-and-play infrastructure.   ALSO READ | Puravankara shares zoom 7% as arm bags Malabar Hill redevelopment project

Other highlights:

The company successfully completed a rights issue of INR 12.5bn, which is expected to further strengthen its balance sheet.

 

Inox Renewable Solutions Ltd (Resco) will be listed under the automatic route following the demerger of connectivity and common infrastructure businesses from Inox Green to Resco.

 

The management has guided for Inox Green’s O&M portfolio to expand from 5GW currently to 17GW over the next 2 years, with a mix of both solar and wind assets.

 

JM Financial has maintained a ‘Buy’ call on Inox Wind and has raised its target to ₹158 from ₹154, rolling forward its valuation from Mar’27 to Sep’27 earnings.   ALSO READ | Inox Wind shares rise 3% after management raises Ebitda margin guidance 

The brokerage estimates, Revenue/Ebitda/adjusted profit after tax (PAT) to grow at a CAGR of 32 per cent/31 per cent/36 per cent during FY25– 28.  In Q1, Inox reported consolidated revenue of ₹863 crore, up 32 per cent from ₹655 crore in the year-ago period. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) came in at ₹220 crore compared to ₹158 crore in Q1FY25. Profit after tax (PAT) rose 134 per cent to ₹97 crore from ₹42 crore in the year-ago period.