Inox Green Energy: 13 GW Portfolio, ₹103 Crore PAT, One Demerger Away

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1. At a Glance

Inox Green posted a PAT of ₹103 crore for FY26, a jump of 373% from ₹22 crore in FY25.

The portfolio sits at 13+ GWp of renewable O&M assets. The wind arm carries ₹281 crore in revenue against an operating margin of 8.2%—thin, but stable in an annuity business where monthly service contracts run for 5–20 years.

On the balance sheet, depreciation fell from ₹53 crore to ₹1.7 crore after NCLT approval of a demerger that strips out the evacuation infra business into a sister company. Post-demerger, the income statement will look sharper.

The tension sits here: management guidance says FY27 EBITDA will hit ₹600+ crore post-consolidation of two large O&M acquisitions, but ₹40+ crore of FY26’s reported profit came from “other income”—mainly treasury gains and acquisition-linked gains, not recurring O&M cashflow.

What changed and what to watch: portfolio consolidation post-acquisition and the demerger’s accounting impact on next year’s P&L.

2. Introduction

Inox Green is the listed arm of Inox Wind Limited’s (IWL) operations and maintenance business.

The company, spun out as a subsidiary in 2012, operates wind turbines and associated infrastructure for customers across India—independent power producers, utilities, and corporates. The O&M model is annuity-like: long-term contracts lock in revenue with predictable renewal. The parent, IWL, is a turbine manufacturer and EPC player, offering strategic synergy.

FY26 marked a step-change: revenue grew 19% to ₹281 crore. PAT went from ₹22 crore to ₹103 crore, a 373% jump—pulled partly by ₹57 crore in other income (treasury, acquisitions, value-added services) and a dramatic drop in depreciation post-demerger approval.

The bigger story is two-fold. First, management is mid-acquisition of two large operational O&M portfolios totalling 6.5 GW. Second, the evacuation infra business—a heavy-depreciation drag—is being carved out, simplifying the balance sheet.

Market cap is ₹7,217 crore as of the reference date. The stock trades at 70× earnings on an FY26 EPS of ₹2.55.

3. Business Model: WTF Do They Even Do?

Inox Green provides three service layers: operation, maintenance, and value-added.

Operation services mean a 24/7 control room monitoring your wind farm and extracting the highest yield in prevailing wind conditions. The company deploys onsite teams to manage turbine health, output and customer relationships.

Maintenance splits into predictive and reactive. Reactive is the old way: wait for failure, repair, take downtime. Predictive means detecting faults before they cascade—detecting bearing wear, blade stress, generator issues weeks early and fixing them during scheduled windows. Downtime shrinks, availability climbs. Inox Green’s reported machine availability for FY26 was 96.5%, consistent across the fleet.

Value-added services include WTG overhauls to extend turbine life, performance optimization, booster sales, carbon credit trading, and hybrid energy solutions. These are margin-accretive: ₹10 crore of FY26’s other income came from value-added services classified as non-operating.

The revenue model, per management: ₹80 crore topline and ₹40 crore EBITDA per 1 GW under management. That math would imply ₹224–280 crore revenue and ₹112–140 crore EBITDA at the current 3.5 GW of operational wind portfolio—close to reported FY26 output if you separate wind from solar and exclude other income noise.

The company is expanding into solar O&M and hybrid asset management, riding tailwinds in India’s renewable capacity push. The parent, IWL, provides critical lift: every turbine sold by IWL becomes a natural inflow to Inox Green’s order book for O&M. The group’s stated target is 10 GW under management within 3–4 years; current announced M&A (Wind World’s 4.5 GW portfolio) and organic growth from IWL orders set the path.

4. Financials Overview

Figures are consolidated, in ₹ crore.

Q4 FY26 (Jan–Mar 2026):

The quarter-on-quarter PAT spike (from ₹25.2 Cr in Q3 to ₹28.1 Cr in Q4) came partly from ₹50.8 crore in other income in Q4—a spike that management attributed to ₹40 crore in “acquisition-related gains” (debt acquired on subsidiaries), ₹10 crore from value-added services, and ₹10 crore from treasury income.

Reported earnings quality: When depreciation collapsed from ₹53 crore in FY25 to ₹1.7 crore in FY26, the PAT jump looked steeper than the operating business warranted. This is an accounting artifact: the NCLT-approved demerger of evacuation infra (asset-heavy, high depreciation) eliminates that drag. Operating EBITDA grew healthily (71%), but the PAT multiplier was inflated by one-time demerger effects and acquisition-linked treasury gains.

Management guided FY27 EBITDA at ₹600+ crore post-acquisition consolidation, implying that the acquired O&M assets will contribute a large jump. But again, a portion of that earnings flow will be “other income” until the acquisitions are fully integrated.

5. Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.