🧠 At a Glance

Inox Green Energy Services Ltd is India’s only listed renewable O&M (Operations & Maintenance) stock. Sounds niche, sexy, ESG-certified. But behind the clean energy tag lies a messy balance sheet, questionable earnings quality, and working capital days that would make even PSU banks flinch. Let’s decode the good, the green, and the garbage.

🌪️ 1. What Exactly Does Inox Green Do?

• Inox Green provides O&M services for wind energy projects – servicing wind turbines, blades, nacelles, and associated infra.
• It is a subsidiary of Inox Wind Ltd, and part of the Inox GFL Group.
• Core revenue: Long-term contracts (5–20 years) for ~3.2 GW wind assets across India.

🧩 So basically, they don’t own wind farms, they just maintain them.

📉 2. The Financial Tornado: FY25 Snapshot

☠️ A 327x P/E for a utility O&M company? This isn’t Tesla with turbines.

💸 3. Other Income Is The Main Income

FY25 PAT: ₹22 Cr
Other Income: ₹57 Cr 🤯

This means without “non-operating stuff” (rentals, interest, one-offs), the core biz is likely breaking even or worse. That’s like a windmill being turned by Excel sheets, not wind.

🧃 4. Cash Flow: Not So Clean Energy

Despite net profits, cash flow has been negative in 2 of the last 3 years. You’re burning more than you’re earning, while preaching about sustainability.

🔁 5. Working Capital = Working Capital Punishment

🧻 That’s 3.5 years of working capital locked up. Either clients are ghosting them or Inox Green is giving EMI plans to power plants.

💰 6. Is It Debt-Free? Technically Yes, Strategically No

• Borrowings down from ₹956 Cr in FY18 → ₹181 Cr in FY25
• But reserves barely touch ₹1,600 Cr, while other liabilities stay sticky
• They had to raise ₹474 Cr via financing in FY25 to meet expansion

Inox Green has de-leveraged, but they’re still issuing equity or borrowing to survive — this isn’t “bootstrap green energy”; it’s ESG-themed jugaad.

👨‍👨‍👧‍👧 7. Promoter Moves: Stable, But No Cheer

• Promoters hold steady at ~56%
• Recent open market buys (~45,000 shares in June 2025) suggest confidence
• But no institutional stamp of approval yet — FIIs + DIIs = only 13%

😐 Retail shareholding is a massive 31%, and rising — someone’s getting dumped on.

🔮 8. What’s Working for Inox Green?

✅ Niche monopoly — only listed renewable O&M stock in India
✅ Long-term maintenance contracts = visibility of revenue
✅ Huge push in India for green energy = tailwinds ahead
✅ Asset-light model = theoretically scalable

🤦 9. What’s NOT Working?

🚩 P/E of 327 — literal bubble valuation
🚩 1.06% ROE — money is safer in savings account
🚩 Working capital days over 1,300 — scary
🚩 EPS grew, but only due to Other Income
🚩 No dividends, no strong FCF, no real moat beyond contracts
🚩 Stock trades at 3x book value — for a business that’s 90% fixed costs and low-margin maintenance

🧮 10. Fair Value Range: ₹90–₹115

Let’s assume optimistic growth:

• Core O&M profit: ₹50 Cr sustainable
• Apply 20x P/E (generous for utilities)
• Shares outstanding: ~407 Cr

Fair Value = ₹50 × 20 ÷ 407 ≈ ₹98/share
Even with a green energy hype premium, we cap it at ₹115/share

🛑 CMP = ₹156 = 34–73% downside to FV range.

🪁 TL;DR: Flywheel or Fan?

• Inox Green is the only renewable O&M listed stock, but…
• Earnings are “other-income powered”
• Cashflow negative, working capital horrifying
• Valuation belongs in a climate summit, not the stock market

🎯 You’re not buying a clean energy cash machine — you’re buying a fan that spins, looks ESG-compliant, and eats money quietly.

✍️ Written by Prashant | 📅 18 June 2025
Tags: Inox Green, Renewable Energy, O&M Business, Stock Valuation, Green Bubble, EduInvesting Satire, ESG Stocks