Inox Green Energy Services Ltd Q1 FY26 – Wind O&M Baba, 2,487% Profit Jump and Solar Side Hustles
1. At a Glance
Inox Green Energy Services Ltd (IGESL), the “O&M mechanic” of India’s wind farms, just dropped Q1 FY26 numbers where profit jumped a ridiculous 2,487% YoY—from pocket change to ₹22 Cr. Revenue rose 10.5%, margins look wobbly, and P/E is at nosebleed 163x. They’re bragging about 3.5 GW under O&M, adding solar O&M deals left, right, and center, and filing for demerger of their substation business like it’s a breakup letter. Basically, they’re the neighbourhood electrician who now wants to be an all-India renewable doctor.
2. Introduction
When you hear “Inox,” most Indians think of air-conditioned cinemas where popcorn costs more than your ticket. But Inox Green Energy Services isn’t here to show movies. They’re here to fix, maintain, and babysit wind turbines across India.
Formed in 2012 and listed as a pure-play renewable O&M service provider, IGESL is like that maintenance guy who knows every nut and bolt in your colony’s lift—but instead of fixing elevators, they fix wind farms.
Their parent, Inox Wind Ltd, manufactures turbines, while Inox Green’s job is to keep those big fans spinning so electricity keeps flowing. With long-term O&M contracts (5–20 years), they’ve locked themselves into annuity-style revenues. That’s the boringly good part.
The spicy part? They’re expanding into solar O&M, hybrid O&M, and even acquiring portfolios from stressed competitors. In Q1 FY26 alone, they added 1 GW of solar O&M agreements, taking their total renewable O&M portfolio above 5 GW.
But beneath the green shine, numbers reveal a different story. ROE is barely 1%, debtor days have ballooned to 279 (customers taking their sweet time to pay), and working capital cycle is stuck at 1,022 days—basically they collect dues slower than your college canteen refunding your caution deposit.
So, is IGESL the reliable O&M engine India needs, or just another midcap stock trading at fantasy valuations?
3. Business Model – WTF Do They Even Do?
IGESL isn’t a power generator—it doesn’t own wind farms. Instead, it’s in the operation & maintenance business:
Operation Services: 24/7 monitoring of wind turbines with onsite teams + client relationship managers. Translation: they’re the CCTV guys for wind farms.
Maintenance Services:
Predictive maintenance: Fixing things before they break.
Reactive maintenance: Waiting till it breaks and then panicking.
Value-Added Services: Performance improvement, hybrid energy solutions, and now solar O&M.
Portfolio (Q3 FY25):
3.5 GW under O&M
1,396 turbines
Presence in 8 windy states (Gujarat leads with 1,551 MW)
393 employees (that’s almost 1 person per 9 MW – not bad)
Revenue Model: For every 1 GW commissioned, they earn ~₹80 Cr revenue and ~₹40 Cr EBITDA. Ambition: scale to 10 GW portfolio in 3–4 years = ₹800 Cr topline runway.
Customers: 72% IPPs, 14% PSUs, 14% corporates. Names include Shree Cement, Torrent Power, Gujarat Fluorochemicals. Basically, they fix turbines for everyone from cement kings to government babus.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹56.2 Cr
₹51 Cr
₹68 Cr
10.5%
-17.4%
EBITDA
₹6 Cr
₹17 Cr
₹1 Cr
-64.7%
500%
PAT
₹22 Cr
₹0.85 Cr
₹6 Cr
2,487%
266%
EPS (₹)
0.60
0.02
0.15
2,900%
300%
Commentary: PAT exploded thanks to “Other Income” (₹42 Cr in Q1). Core business looks like a scooter engine; other income is the turbocharger. Without it, margins are thin as wafer papad.
5. Valuation Discussion – Fair Value Range Only
P/E Method: EPS (₹1.04) × industry PE (30–40) = ₹31 – ₹42/share. CMP ₹171 is like paying for iPhone but getting Nokia 3310.
EV/EBITDA: EV ₹6,407 Cr / EBITDA ₹133 Cr (TTM) = 48x. Sector average 15–20x → fair EV = ₹2,000–₹2,700 Cr → ₹55–₹75/share.
