At a Glance
Inox India Ltd, the cryogenic equipment wizard, reported a Q1 FY26 revenue of ₹352 Cr (+16.7%) and a PAT of ₹61 Cr (+18.9%). The company flaunts an ROE of 29% and ROCE of 38%, making industrial investors drool. With an order book of ₹1,457 Cr, new product launches (hello UHP ammonia ISO tank), and ITER order wins, the company is firing on all cryogenic cylinders. But beware: the stock trades at 12x book and P/E 46.6 – a premium that can make your wallet shiver.
Introduction
Cryogenics sounds like something out of a sci-fi flick, but Inox India turned it into a cash-printing machine. From liquefied gases to green hydrogen storage, this Vadodara-based company serves industries that freeze stuff at -200°C while its profits stay sizzling hot. With virtually no debt, a juicy order pipeline, and sky-high margins, the company is the Tesla of industrial gases – minus the Twitter drama.
Business Model (WTF Do They Even Do?)
Inox India designs, engineers, and manufactures cryogenic tanks, ISO containers, and gas distribution systems. Its business segments:
- Industrial Gas (59% revenue) – supplies tanks for oxygen, nitrogen, and hydrogen.
- LNG & Hydrogen Infrastructure – builds storage solutions for clean fuels.
- International Projects – cryogenic solutions for global clients (ITER is the latest feather in the cap).
They sell, install, and occasionally maintain these tanks. Customers keep coming back – because who else freezes gases with style?
Financials Overview
Q1 FY26 Performance
- Revenue: ₹352 Cr (+16.7%)
- Operating Profit: ₹76 Cr (OPM 22%)
- PAT: ₹61 Cr (+18.9%)
- EPS: ₹6.73
TTM FY25–26
- Revenue: ₹1,349 Cr
- EBITDA: ₹290 Cr (OPM 22%)
- PAT: ₹235 Cr
- EPS: ₹25.8
Margins are rock-solid, growth consistent, and balance sheet squeaky clean.
Valuation
- P/E Method: EPS ₹25.8 × 35 ⇒ ₹900 (conservative)
- P/B Method: BV ₹96 × 12 ⇒ ₹1,150
- EV/EBITDA: EBITDA ₹290 Cr × 20 ⇒ ₹1,200
Fair Value Range: ₹1,050 – ₹1,200
What’s Cooking – News, Triggers, Drama
- ✅ ITER order ₹145 Cr – international validation.
- ✅ New UHP ammonia tank launch – niche product expansion.
- ✅ Order book ₹1,457 Cr – visibility strong.
- ❌ Valuation premium – priced to perfection.
- ❌ Inventory days 312 – working capital intense.
