Deleveraged, Diversified, and Ready to Deliver!
Summary
FY25 was a turnaround year for Inox Wind Ltd. (IWL) with revenues more than doubling YoY and PAT standing at Rs 438 Cr (vs. a loss in FY24), while the balance sheet transitioned to a net cash position post the merger with Inox Wind Energy Ltd. The company’s order book is now at a record high of ~3.1 GW, which provides good revenue visibility. The commissioning of a nacelle and hub facility, backward integration into cranes and transformers, and progress on the 4.X MW platform enhance the company’s execution capability and margins. Supported by group synergies and a favourable sectoral backdrop, IWL has entered a new phase of scale and profitability.
Key Highlights
• Financial Performance: In FY25, IWL delivered strong financials with revenue doubling to Rs 3,557 Cr (+104% YoY) and EBITDA rising 182% YoY to Rs 757 Cr. The company reported a PAT of Rs 438 Cr, a sharp turnaround from a loss of Rs 53 Cr in FY24, while cash PAT surged nearly 8x YoY to Rs 734 Cr. Post a debt reduction of Rs 2,050 Cr, the balance sheet shifted to a net cash position (interest-bearing net debt), further reinforced by a CARE A1+ short-term rating upgrade.
• Operational Review: In FY25, Inox Wind executed 705 MW of projects (+88% YoY) and secured ~1.5 GW of new orders, taking the order book to a record ~3.2 GW. The company expanded capacity with a new nacelle and hub facility in Ahmedabad, initiated backward integration in cranes and transformers, and scaled its O&M arm to 5.1 GW with entry into solar O&M. It also undertook blade upgrades and initiated preparations for the launch of its 4.X MW platform in FY26.
• Key Competitive Strengths: IWL’s fully integrated model spanning manufacturing, EPC, and O&M provides end-to-end control over project execution. A strengthened balance sheet with net cash and sanctioned banking limits of ~Rs 2,200 Cr enhances financial flexibility. The company’s diversified customer base includes marquee PSUs such as NTPC and NLC, IPPs, and corporates like Hero Future Energies, Serentica, and Gentari. Backed by the INOXGFL Group, IWL benefits from synergies across wind, solar, hybrid, and BESS segments, while its credit profile has been further reinforced by rating upgrades and improved financials.
• Growth Drivers: India’s target of 100 GW wind capacity by 2030, supported by FY25 additions of ~4.15 GW (the highest in seven years), provides a structural growth runway. Policy support through DCR norms and hybrid tenders, along with rising demand for hybrid and RTC power solutions, is expected to accelerate project activity. Additionally, the group’s expansion into solar manufacturing via Inox Solar will create incremental opportunities for EPC execution and O&M services.
• Key Company Strategies: IWL aims to scale its annual execution capacity to 1.2 GW in FY26 and 2 GW in FY27, while preparing for the commercial launch of its next-gen 4.X MW turbine platform tailored for low-wind Indian sites. The company is deepening backward integration to improve margins and mitigate execution bottlenecks, while following a selective order intake strategy to preserve profitability and execution visibility. It also plans to expand into solar and hybrid EPC through IRSL and double its O&M portfolio to 10 GW over the next two years.
Outlook & Valuation
The company’s strong orderbook and favourable wind sector outlook provide long-term revenue visibility. We assign a target P/E multiple of 30x (Unchanged) to our FY27 EPS estimate. After adjusting for the minority stake in Inox Green Energy Services Ltd and Resco Global (~7%), we arrive at a TP of Rs 190/share. We maintain our BUY rating on the stock, with a potential upside of 28% from the CMP.
Inox Wind Ltd – Annual Report Analysis Report – FY25 – 15092025_15-09-2025_11
