Introduction: Inox Wind Blows Past Expectations (Almost)
It’s been a whirlwind quarter for Inox Wind—quite literally. While the company didn’t fully meet execution expectations, it still managed to turn heads with a robust operating performance. The buzz? Nuvama Institutional Equities just bumped up its target for Inox Wind share price, and here’s why this could matter big time for investors.
Let’s dive deep into the storm of numbers, market insights, and what lies ahead for one of India’s only two wind EPC (Engineering, Procurement, and Construction) suppliers.
Strong Finish to FY25: The Wind Blew Harder in Q4
Inox Wind share price got a breath of fresh air thanks to a solid execution performance in Q4FY25. The company commissioned 236MW, a massive 83% year-on-year growth. Sure, it came in slightly under expectations (estimated at 281MW), but hey—who’s complaining when the revenue clocks in at ₹1,270 crore?
What’s interesting here is that this revenue came despite lower realisation per MW, meaning they made less money per unit of capacity. But thanks to a smarter mix of products, margins improved, boosting their operating profit margin (OPM) to 19.9%.
Earnings and Margins: A Closer Look
Profit after tax? A cool ₹190 crore. Right on target. The star of the show? That robust OPM we just talked about. It helped maintain EBITDA in line with estimates—even when order inflows were on the softer side.
Speaking of orders, the company reported an order inflow of just 153MW for the quarter. Not great, but not a disaster either. That brings the total order book to 3.2GW, providing enough execution visibility for the next 24 months.
Full-Year Performance: Not Quite There, But Still Impressive
Looking at the big picture, Inox Wind managed to commission 705MW during FY25—slightly shy of their 800MW target. But here’s the kicker: they’re sticking to their guns for FY26 and FY27.
Revised execution guidance now stands at 1,200MW (1.2GW) for FY26 and a bold 2,000MW (2GW) for FY27. That’s confidence, folks. Even Nuvama raised its earlier estimate from 1.8GW to 2GW.
Merger Mania: Two Inoxes Become One
In a major development, the company got a nod from the NCLT for the amalgamation of Inox Wind Energy Limited with Inox Wind Limited. This corporate shake-up will increase share count by 25%, leading to some EPS (Earnings Per Share) dilution.
But don’t worry—there’s a silver lining. The merger will eliminate a significant liability: NCRPS worth ₹2,000 crore. That was a major red flag in Nuvama’s SoTP (Sum of the Parts) valuation earlier. With that out of the way, the outlook just got sunnier.
How Does Inox Wind Stack Up Against Suzlon Energy?
Let’s talk competitors. Inox Wind and Suzlon Energy are the only two major wind EPC+WTG (Wind Turbine Generator) players in India. So comparisons are inevitable.
Nuvama has pegged Inox Wind’s valuation at 24.4 times FY27 EPS, while Suzlon is currently trading at 31.8 times. Translation? Inox Wind might actually be undervalued, considering its growing footprint and cleaner balance sheet.
What’s Driving the Optimism Around Inox Wind Share Price?
Let’s simplify it. Here’s why Nuvama upgraded its Inox Wind share price target from ₹223 to ₹236:
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Strong execution momentum in Q4
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Clean-up of debt thanks to the merger
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A hefty 3.2GW order book
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Improved margins despite lower per-MW revenue
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Competitive edge in a duopoly market
Add all that up and you’ve got a company that’s leaner, meaner, and ready to grow.
The Duopoly Advantage: Limited Competition, Unlimited Potential
In the world of wind EPC, competition is surprisingly scarce. With just two serious players in the Indian market, Inox Wind enjoys a unique edge. This duopolistic setup means better pricing power, more predictable orders, and less room for disruptive new entrants.
If you’re looking for a long-term bet in the green energy space, Inox Wind share price is one to watch.
Investor Takeaways: Should You Buy Inox Wind Shares?
Here’s the million-dollar question—or should we say ₹236 question?
Nuvama says “Buy.” That’s their rating, and for good reason. Despite the minor miss in full-year execution and EPS dilution from the merger, the bigger picture is promising.
You’ve got:
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A healthy order pipeline
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Margin expansion
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Debt reduction
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Government support for renewables
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Execution guidance with long-term visibility
It’s a compelling mix that makes Inox Wind share price worthy of investor attention.
Risks to Watch: It’s Not All Smooth Sailing
Let’s not get carried away with the wind. A few bumps remain:
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Order inflow was relatively weak this quarter. If that continues, future revenue could take a hit.
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EPS dilution from the merger, though beneficial long-term, might pressure short-term valuations.
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Execution delays or policy shifts in the renewable energy sector could throw a wrench in the works.
But even with those risks, the Inox Wind share price still looks strong from a growth investor’s lens.
Conclusion
So what’s the final verdict? Inox Wind is clearly emerging as a leader in India’s growing renewable energy ecosystem. With Q4FY25 showcasing operational excellence, a major merger simplifying the structure, and strong projections for the future, this stock is catching the wind in its sails.
The Inox Wind share price may face short-term noise due to EPS dilution and subdued order inflows, but its long-term potential looks rock solid. If you’re a retail investor, it’s worth keeping this one on your radar.
After the Conclusion
As the world turns toward sustainability and India pushes for aggressive renewable targets, companies like Inox Wind are poised to ride the green wave. With limited competition and improving fundamentals, don’t be surprised if this stock becomes a heavyweight in the wind energy arena.
So, next time someone talks about clean energy investments, just say, “You mean Inox Wind share price, right?”