Inox Wind Q2 FY27 Earnings Call: Withdraws FY27 Guidance, Eyes Rs. 7,500 Cr FY28 Revenue (INOXWIND)

Solid Sequential Growth, But Margins Carry the Transition Cost

• Rs.1,378 Cr consolidated revenue in Q2 FY 2026-2027 — up 58% QoQ, with adjusted EBITDA of Rs.238 Cr (flat QoQ), PBT of Rs.103 Cr (+8% QoQ), PAT of Rs.69 Cr (+8% QoQ) and cash profit of Rs.165 Cr (+8% QoQ).
• Q2 margins were hit by commodity and raw material inflation linked to the West Asia war, per the Wind Business MD; management expects reversal as incremental contracts and fresh bids are priced dynamically to current cost conditions.
• Adjusted EBITDA excludes Wind World income — management said consolidated EBITDA margins would have been "upwards of 20%" in Q2 FY 2026-2027 had it been recognized in the P&L; line-by-line Wind World consolidation begins Q3 FY 2026-2027.
• Debt broadly stable vs March 2026 despite H1 FY 2026-2027 revenue growth; Devansh Jain said the company is "virtually net debt free" as of March, with debt currently at "0.1 or 0.2."
• Working capital days look elevated on a half-year basis — H2 typically contributes about 70% of annual revenue; inventory rose in Q2 FY 2026-2027 ahead of H2 deliveries and is expected to moderate by March 2027 (FY 2026-2027).
• Inox Green reported Q2 FY 2026-2027 total income of Rs.113 Cr (+12% QoQ), EBITDA of Rs.62.5 Cr (+10% QoQ), PAT of Rs.44 Cr (+8% QoQ) and cash PAT of Rs.58 Cr (+6% QoQ), with ~96.2% wind machine availability; figures exclude Wind World income.

Equipment-Supply Pivot Forces FY27 Guidance Withdrawal

• Management declined to give any FY 2026-2027 guidance — Sai Baba Vutukuri said the strategy shift, adopted in Q1 FY 2026-2027, involves letting off some orders and shifting some execution to avoid bloating the balance sheet.
• Prior guidance of ~75% revenue growth and 20-22% EBITDA margins for FY 2026-2027 will not be met — CEO Madhu confirmed the company will not reach those figures, attributing the shortfall to the shift toward long-term growth and quality.
• MD Kailash Tarachandani said the objective is to raise equipment supply to ~75% of the order book (period unspecified), prioritizing quality of business over growth; equipment supply was ~61% of the third-party order book as of October 26, 2026, with turnkey at 39%.
• Devansh Jain said the company will let go of some revenue in FY 2026-2027, called FY 2027-2028 guidance "conservative," and said equipment-supply pivot "green shoots" are visible this quarter; he expects "significant growth" qualitatively in Q3 and Q4 FY 2026-2027 but will not commit to a number.
• Management is prioritizing balance sheet strength, cash flow quality and order quality over volume — Devansh Jain said the company would rather supply group companies than third parties whose sites are delayed or who hold "20, 30%" of payments for months.
• Management transition — Sai Baba Vutukuri joined as Managing Director, Wind Business; CEO Sanjeev Agarwal resigned for personal reasons and will continue as an advisor until end of December (FY 2026-2027).

Order Book Reset, But Multi-Year Visibility Intact

• Order inflow of ~350 MW in Q2 FY 2026-2027 and ~1.85 GW in H1 FY 2026-2027 — order book stood at ~3.8 GW as of October 2026 (Devansh Jain put it "close to 4 GW"), giving over 24 months of execution visibility; the reduction was attributed to discontinuation of certain orders.
• Order book translates to 20,000-plus revenue over FY 2027-2028 and FY 2028-2029 per Sai Baba Vutukuri (currency unit not stated); no specific order inflow target for FY 2027-2028 was given.
• Pipeline of ~5 GW of potential tenders from NTPC, Indian Oil Corporation and SECI expected over the next 4 to 5 months (Q3-Q4 FY 2026-2027), in addition to ongoing negotiations; CEO Madhu said PSU and customer pipelines are maturing over the next one to two quarters.
• Turnkey order book is largely from reputed customers, including PSUs and INOX Clean Energy, with payment terms aligned to the credit policy — expected to help address the receivables challenge over coming quarters.
• Devansh Jain expects debtor days to fall below 150 days by the end of FY28 as the company shifts toward equipment supply and strategic turnkey projects.
• Multi-brand wind orders, including one from Inox Clean, will be reflected in Q3 and Q4 FY 2026-2027 per Sai Baba Vutukuri, with announcements to follow shortly.

Wind World Acquisition Anchors the O&M Scale-Up

• Inox Green completed payment and transfer for the NCLT-approved acquisition of Wind World's ~4.5 GW O&M portfolio in Q2 FY 2026-2027, funded partly by a Rs.300 Cr QIP raised in October 2026 (Q3 FY 2026-2027); Inox Green owns 75% of Windworld, with minority interest recorded in the profit line.
• Wind World generated Rs.580 Cr annual revenue in FY 2025-2026 — Madhu expects growth from annual contracted escalation, one-time upward price revisions, and overhauling/major maintenance services; Sai Baba Vutukuri guided the Q3 FY 2026-2027 addition at "somewhere around Rs.120 Cr," with quarterly revenue roughly doubling from the Q2 FY 2026-2027 base.
• Wind World O&M EBITDA margins expected "upwards of 45%" post integration from Q3 FY 2026-2027 per Madhu; Sai Baba separately put Windworld EBITDA margins at broadly 25-30% (period unspecified), rising to ~40% with value additions in 3 to 4 quarters (roughly Q3 FY 2026-2027 to Q2 FY 2027-2028).
• O&M portfolio stood at ~12.5 GW as of September 2026 (10.4 GW wind, 2.1 GW solar), including an additional ~2 GW wind O&M investment expected to complete by March 2027 (FY 2026-2027), subject to NCLT and other regulatory approvals.
• Cost optimization levers identified — Devansh Jain cited rationalizing salaries he called "absurdly high" and other charges at the NCLT-held company; Madhu flagged value-added services including repowering, life extensions and overhauling of one of the oldest fleets.
• Inox Green is asset-light — EBITDA nearly equals PBT with minimal depreciation and financing costs; no cash tax expected for "another couple of years" due to deferred tax assets, with significant operating cash flows expected from FY 2027-2028.
• Rs.24 Cr other income in Q2 FY 2026-2027 is a mix of ~Rs.10 Cr treasury income and the balance from value-addition services, per Sai Baba.

20% EBITDA Target Maintained on an Annualized Basis

• Devansh Jain said the company is well on track to meet its ~20% EBITDA margin guidance on an annualized basis for FY 2026-2027, despite geopolitical tensions and forex and commodity impacts; he declined to break the Q2 FY 2026-2027 margin shortfall into forex and raw material components.
• Long-term EBITDA margin objective is ~20% (horizon not specified), with margins to be evaluated annually rather than quarterly.
• Kailash Tarachandani does not see significant domestic pricing pressure, even as Abhishek Nigam (Motilal Oswal) cited Adani Wind's push into the third-party market; Tarachandani noted many contracts carry pass-through clauses and negotiations are normal.
• Sai Baba Vutukuri said solar is becoming less attractive on tariffs without battery energy storage, while wind plays a more attractive role in peak and early-morning peak hours; he expects a positive pricing trend over the next few years.
• Other income from Q3 FY 2026-2027 onwards should remain broadly in line with the Q2 FY 2026-2027 level, with Wind World income consolidated line-by-line in turnover and profitability.
• Devansh Jain said the Q2 FY 2026-2027 margin miss is temporary and should correct to normalized guidance going forward.

FY28 Revenue Target of Rs.7,500 Cr; Sector Demand Tailwinds

• Management is targeting FY 2027-2028 revenue of about Rs.7,500 Cr, to be reviewed and reaffirmed at the end of Q4 FY 2026-2027; Sai Baba Vutukuri said there is "huge certainty on certain numbers for next year" and an "upward bias," expecting better than the FY 2027-2028 guidance.
• Sequential momentum is expected to continue through H2 FY 2026-2027 and into FY 2027-2028 per the Wind Business MD; no specific FY 2026-2027 revenue guidance was given.
• MNRE expects about 7.5 to 8 GW of wind additions in FY 2026-2027 — India commissioned ~1.8 GW in Q2 FY 2026-2027 (H1 FY 2026-2027: 3.2 GW vs 6.05 GW for full FY 2025-2026); the Wind Business MD said annual additions could reach 8 to 10 GW in the near to medium term.
• 5.8 GW of renewable capacity was awarded through tenders in Q2 FY 2026-2027, of which 2.1 GW (36%) was standalone wind; power demand rose 15% YoY in the quarter.
• The 4X wind turbine prototype has been installed, with commercial launch targeted by end of FY27; the Rohika facility in Gujarat is set up to produce 4X blades. Under INOX Renewable Solutions, transformer capacity was enhanced for the 4X series, with plans for 8 to 20 MVA medium transformers, inverters, unit substations and electronic control systems (period unspecified).
• Resco (power evacuation) demerger from Inox Green into IRSL is progressing toward independent listing — the information memorandum has been filed; lawyers guided completion in Q3 FY 2026-2027, with management confirming the "one, two quarters" framing, subject to stock exchange approvals.
• Madhu declined to discuss Inox Clean's capacity build-out, funding or listing plans, citing the filed DRHP; Sai Baba Vutukuri described the arrangement as "the most positive strategic step for the entire group," with Inox Wind as "one of the customer for us, like many other customers."