1. At a Glance – Small Company, Big Mood Swings
Indowind Energy Ltd is that classic small-cap renewable stock that looks calm on the surface but behaves like a Tamil movie climax in the numbers. Market cap sitting around ₹199 Cr, stock price hovering near ₹12.4, and a P/E that casually screams ~197 like it’s not embarrassed at all. Revenues for the last twelve months stand at ~₹39.9 Cr, while ROE and ROCE are stuck below 2%, basically reminding investors that green power does not automatically mean green returns.
The latest quarter (Q3 FY26) delivered revenue of about ₹6.01 Cr, but PAT came in at ₹0.36 Cr, a sharp swing from the previous quarter’s loss. Debt is low at ~₹18 Cr, which is the only thing here behaving responsibly. Promoters hold ~47.8% but have pledged ~28.6% of that, which adds a little masala to the governance story.
So the big question before we go deeper: Is this a silent turnaround or just another windy quarter?
2. Introduction – The Wind Has Been Blowing Since 1995
Indowind Energy has been around since 1995, which means it has survived power reforms, tariff wars, state discom drama, and more policy U-turns than an Indian highway project. The company operates as an Independent Power Producer (IPP), focused mainly on wind energy, with some solar ambition sprinkled on top.
For years, Indowind was stuck in the classic renewable trap: decent operating margins, poor cash flow visibility, delayed receivables from state utilities, and balance sheet stress. Things went south enough that the company had to negotiate a one-time settlement with EXIM Bank, finally closing that chapter by FY23.
Now, with debt largely under control and fresh equity via rights issue, Indowind is trying to convince the market that it deserves a second look. Whether the market listens or laughs is what this article is about.
3. Business Model – WTF Do They Even Do?
Indowind does four things, all revolving
around spinning blades and chasing discom payments:
- Green Power Sale – Electricity generated from windmills sold primarily to state utilities like TANGEDCO and BESCOM.
- Project Management Services – Helping others set up wind projects (basically consultancy + execution).
- Asset Management Services – Operating and maintaining wind assets, billing, collection, and paperwork therapy.
- Value Addition Services – Carbon credits, trading, and other renewable buzzwords when regulations allow.
Revenue-wise, this is a one-trick pony: ~98% of FY23 revenue came from electricity sales. Geographically, Tamil Nadu contributes ~64% and Karnataka ~36%, meaning cash flows are directly linked to the mood swings of these two state discoms.
Ask yourself honestly: How comfortable are you depending on state electricity boards for timely payments?
4. Financials Overview – The Quarterly Roller Coaster
Quarterly Comparison (₹ Cr, Consolidated – Q3 FY26 treated as Quarterly Results)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 6.01 | 5.56 | 17.55 | ~8% | -66% |
| EBITDA | -0.60 | 0.76 | 10.33 | NA | NA |
| PAT | 0.36 | -0.07 | 4.57 | NA | -92% |
| EPS (₹) | 0.03 | 0.00 | 0.29 | NA | -89% |
Yes, EBITDA went negative again, because consistency is overrated. PAT survived due to other income and tax quirks. Annualising Q3 EPS using the average of Q1–Q3 EPS × 4 method gives a very modest number, which explains why the P/E still looks ridiculous.
Does this look like a stable earnings machine yet?
5. Valuation Discussion – Fair Value Range (Education
