Inox Wind Ltd (INOXWIND) Q2 FY27 Results Analysis: PAT Plunges 36%, Margin Misses Guidance
Inox Wind Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,354.30 Cr (+21.00% YoY) and PAT growth of -43.20% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,354.30 Cr (+21.00% YoY) |
| PAT (Q2) | Rs. 68.55 Cr (-43.20% YoY) |
| EBITDA margin | 16.60% (-670 bps YoY) |
| EPS (Q2) | Rs. 0.34 (-51.40% YoY) |
Quarter Snapshot
Q2 FY27 revenue grew 21.0% YoY to Rs.1,354.30 cr but EBITDA margin of 16.6% fell below management's 20-22% guidance band, with PAT to owners down 35.9% YoY on materials costs reaching 70.6% of revenue amid record copper prices. H1 operating cash flow was negative Rs.46,229 lakh and borrowings rose materially, while the Wind World O&M acquisition completion slipped past Q2. Meeting FY27 guidance of ~Rs.8,000 cr revenue and 20-22% margin now requires H2 delivery of roughly Rs.5,250-5,750 cr with a substantial margin recovery.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue "in-line-to-behind on the quarter, with the H2 ramp the decisive variable" | Q2 total income +18.5% YoY, revenue +66.4% QoQ | Partially played out |
| Margins "likely above the guided band but with cost-side pressure building; watch the bridge, not the level" (commodity levels per pre-call note, web-sourced, dated) | Margin 16.6% — below the 20–22% band; materials 70.6% of revenue | Contradicted |
| Wind World completion ~7 Oct 2026, consolidation from Q3 (per pre-call note) | BTA signed 12 Sep; Rs.30,000 lakh paid by 30 Sep; BTA execution in process (filing) — slip confirmed by filing | Played out |
| Watch: Rs.400 cr deferred-revenue recovery quantum; equipment-supply conversion; working-capital days vs ~150-day target; 4X MW launch/ALMM | Not addressed in the filing — remains open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue +75% over FY26 (management's own ~Rs.7,500 cr framing; +75% on FY26 total income of Rs.4,569 cr ≈ ~Rs.8,000 cr) | FY27 guidance, reaffirmed at the Q1 FY27 call | H1 FY27 total income Rs.2,249.44 cr; Q2 +18.5% YoY | On Track only if the guided 70–75% H2 weighting converts; see Section 9 |
| FY27 EBITDA margin 20–22% ("only North of around 20% or higher, not below that" — Q4 FY26 call), includes other income | Q4 FY26 earnings call | Q2: 16.6%; H1: 19.9% | Missed for the quarter; H1 marginally below the band |
| Wind World India O&M acquisition completion in Q2 FY27 | Q1 FY27 guidance | BTA signed 12 Sep; Rs.30,000 lakh paid by 30 Sep; BTA execution still in process; Rs.300 cr QIP in escrow — completion slipped to ~Oct; consolidation from Q3 | Missed narrowly |
| "Business typically back-half weighted, 70–75% in H2" (management, prior calls) | Q2 revenue +66.4% QoQ — H2-weighting pattern intact so far | Confirmed so far | |
| Equipment-supply revenue inflects "end of Q2 or predominantly Q3" (Q1 FY27 call) | Q2 revenue +21.0% YoY / +66.4% QoQ, but mix not disclosed — direction consistent, conversion unproven in the filing | Partially | |
| "Margins… 27% in Q1 FY27 despite past guidance misses" (management, Q1 FY27 call) | Q2 margin fell to 16.6% (filing basis; Q1 filing-basis 24.1% vs the deck's ~27%) | Contradicted for the quarter on the filing basis |
Key Investment Insights
Key Positives
- Revenue from operations grew 21.0% YoY to Rs.1,354.30 cr and 66.4% QoQ from Q1's Rs.814.10 cr
- Q2 revenue recovery is consistent with management's Q1 framing that equipment-supply revenue would inflect by end of Q2 or predominantly in Q3
- EBITDA grew 8.8% QoQ to Rs.228.59 cr from Rs.210.09 cr in Q1 FY27
- Wind World India O&M acquisition BTA signed 12 Sep 2026 for Rs.55,000 lakh with Rs.30,000 lakh paid by quarter end
- IGESL raised Rs.300 cr via QIP earmarked for the WWIL payment, debt repayment and general corporate purposes
- Total equity rose to Rs.8,14,674 lakh from Rs.7,69,205 lakh at 31 Mar 2026
Risk Factors
- EBITDA margin of 16.6% fell below management's guided 20-22% band, down 670 bps YoY and 750 bps QoQ
- PAT to owners fell 35.9% YoY to Rs.58.83 cr despite 21.0% revenue growth
- Cost of materials consumed jumped 45.1% YoY, reaching 70.6% of revenue vs 58.9% a year ago, amid record copper prices with only partial pass-through
- H1 FY27 operating cash flow was negative Rs.46,229 lakh, with inventories rising Rs.32,764 lakh
- Current borrowings rose to Rs.2,02,932 lakh from Rs.1,27,640 lakh since 31 Mar 2026
- Auditor emphasis of matter on SECI SPV exposure with invoked bank guarantees of Rs.5,578 lakh and lost Bhuj-II connectivity; APTEL appeal being filed
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.