Inox Wind Ltd (INOXWIND) Q1 FY27 Results Analysis: PAT Plunges 58%, Finance Costs Surge 68%

Inox Wind Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 814.10 Cr (-1.47% YoY) and PAT growth of -34.16% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q1 FY27 revenue declined 1.47% YoY, missing the guided recovery trajectory, while PAT to owners collapsed 58.44%. Cost inflation across material, EPC, and other expenses compressed margins, and finance costs surged 68% YoY. The only positive was reported EBITDA margin of 25.81% above the FY27 guidance band, but this was partly aided by surging other income. The company faces significant headwinds in achieving its aggressive FY27 revenue guidance.

Key Investment Insights

Key Positives

• Standalone revenue grew 3.90% YoY to Rs.743.47 Cr.
• Reported EBITDA margin of 25.81% remained above the FY27 guided band of 20–22%.
• Other income surged 58.63% YoY to Rs.57.60 Cr, boosting reported EBITDA.

Risk Factors

• Consolidated revenue declined 1.47% YoY, missing the guided recovery trajectory.
• PAT attributable to owners collapsed 58.44% YoY due to lower PBT, higher tax rate, and NCI dilution.
• Material costs rose 6.80 pp to 54.81% of revenue, and EPC/O&M expenses surged 7.80 pp to 14.58%.
• Finance costs increased 68.04% YoY to Rs.56.78 Cr, reflecting elevated working capital debt.
• Inventories built Rs.76.74 Cr, indicating working capital absorption and production exceeding sales.
• Auditor flagged emphasis of matter on SPV investments and supply/commissioning delays.