What to do with Inox Wind post Q1? Brokerages decode stock strategy

JM Financial maintained a 'Buy' rating on the stock with a revised target price of ₹154 (down from ₹216), based on FY27 estimates

Don't want to miss the best from Business Standard?

Inox Wind share price today: Shares of wind energy solutions provider Inox Wind surged 5 per cent to hit an intraday high of ₹144 on the NSE after the company reported mixed quarterly numbers for the June 2025 quarter (Q1FY26).

 

However, the stock gave up most of its early gains and was trading marginally higher by 0.5 per cent at ₹137.72 on the NSE as of 11:20 AM, compared to the previous session's close of ₹137.03. In comparison, NSE Nifty50 was up 1.26 per cent at 24,941.2 levels. The market capitalisation of the company stood at ₹24,254 crore. The stock has recovered 6 per cent from the 52-week low of ₹129.03 touched on January 28, 2025.

Inox Wind Q1 results

In the Q1FY26, 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. 

 

Inox Wind executed 145 MW of projects during the quarter and reported a well-diversified order book of 3.1 GW. In addition, the company operationalised its new nacelle manufacturing facility near Ahmedabad, Gujarat, and a transformer manufacturing unit in Rajasthan. It has also deployed its own cranes across multiple sites to enhance project execution capabilities.  Track Stock Market LIVE Updates

Inox Wind Q1 results analysis - Nuvama Institutional Equities

According to analysts at Nuvama, Inox Wind posted modest Q1FY26 execution at 146 MW compared to consensus estimates of 180 MW. However, muted revenue was offset by a higher operating margin at 22.2 per cent on a product-heavy mix, leading to a 7 per cent beat on consensus Ebitda. 

 

Inox Wind's healthy Ebitda margin was supported by a higher share of WTG (Wind Turbine Generator) supplies. Although some installation costs related to EPC projects are expected to be pushed to the end of FY26 and FY27, the company is still on track to maintain full-year Ebitda margins above 18 per cent for FY26 and FY27. This will likely be driven by improved execution and better operating efficiency, especially in the second half of the year. Despite slower execution in Q1, strong margins helped Inox beat both Ebitda and profit expectations, according to Nuvama.

 

Inox Wind, among only two wind-EPC suppliers in India, is riding the tailwinds of Round-the-Clock (RTC), Firm and Dispatchable Renewable Energy (FDRE), and Commercial and Industrial (C&I) demand. 

 

The brokerage slashed its FY26E/27E execution estimates to 1.1GW/1.8GW from 1.2GW/2GW, earlier. While the brokerage maintained a 'Buy' rating on the stock, it lowered the target price to ₹190 from ₹236. 

JM Financial

According to JM Financial, Inox Wind's revenue growth was driven by higher blended realisations of ₹57 million per MW, up from ₹46 million per MW in the year-ago period. Project execution for the quarter stood at 146 MW, marginally higher than 140 MW in Q1FY25. Ebitda margin improvement was supported by better realisations.

 

The company secured a modest 51 MW order during the quarter. While execution is expected to ramp up to 1,150 MW in FY26 from 705 MW last year, muted order inflows and execution challenges have led to a downward revision of future execution estimates, the brokerage said.

 

Despite this, the company is expected to post strong growth over FY25–28, with revenue, Ebitda, and PAT projected to grow at a CAGR of 32 per cent, 31 per cent, and 36 per cent, respectively. The brokerage maintained a ‘Buy’ rating on the stock with a revised target price of ₹154 (down from ₹216), based on FY27 estimates.