The future of wind energy in India is promising as the country aims to reduce its reliance on fossil fuels and transition towards renewable energy. With a target of 140 GW of installed wind power capacity by 2030, India is focusing on policy reforms, technological advancements, and infrastructural investments to boost wind energy production. Currently, India ranks as one of the largest wind power producers globally, with installed capacity exceeding 40 GW.

Companies like Inox Wind and Suzlon are leading players in India’s wind energy sector. Inox Wind provides turnkey solutions for wind farm projects, while Suzlon, with a long history in renewable energy, focuses on manufacturing wind turbines and developing sustainable projects. Both companies are expected to play crucial roles in achieving India’s renewable energy goals.

Order Book

Inox Wind demonstrates a robust order book of ~3.3 GW, with a healthy mix of end-to-end turnkey projects (2,186 MW) and equipment supply (1,142 MW). The company has shown significant growth from the FY25 opening position of 2,446 MW, with net additions of 1,162 MW, offset by supplies of 280 MW. Notable client wins in FY25 include Hero Future Energies, IGREL Renewables, Integrum Energy, and Everrenew, providing strong revenue visibility for the next 2-3 years.

Debt Restructuring

Inox Wind Ltd announced that its promoter, Inox Wind Energy Ltd (IWEL), has infused Rs 900 crore into the company, enabling it to become a net debt-free entity (excluding promoter debt). This fund infusion, completed through equity sales on May 28, 2024, has strengthened Inox Wind’s balance sheet and improved profitability by reducing interest expenses, according to CEO Kailash Tarachandani. The funds, raised via block deals with participation from marquee investors, have been used to fully repay Inox Wind’s external term debt.

Company turns Profitable

The company demonstrated a remarkable turnaround from consistent losses to profitability starting December 2023. The transformation was driven by significant revenue growth from Rs 371 Cr in September 2023 to Rs 732 Cr in September 2024, along with improved operational efficiency as OPM expanded from 13% to 24%. The net profit surged from -Rs 27 Cr to Rs 90 Cr during this period.

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Future Outlook & Value Unlocking

The company is strategically positioned across three verticals for value creation. In EPC-RESCO Global, they’re expanding beyond wind project EPC (Engineering, Procurement & Construction) and power evacuation into cranes, infrastructure hybridization, and transformers. The O&M (Operations & Maintenance) division under Inox Green is focusing on common infrastructure de-merger, value-added services, and portfolio growth through acquisitions.

The power generation vertical under IGREL aims to achieve 2 GW of installed renewable capacity, planning to sell power through C&I PPAs and exchanges while leveraging synergies across the INOXGFL Group. This diversified approach indicates strong growth potential across multiple revenue streams.

Brokerage Target

Axis Securities has issued a buy call on Inox Wind with a target price of Rs 270, representing a significant upside potential from the current market price of Rs 243.35.

Conclusion

Inox Wind stands at a pivotal point in its growth trajectory, having successfully turned profitable in December 2023 and achieved net debt-free status through a Rs 900 crore promoter infusion. With a robust order book of 3.3 GW, strategic expansion across EPC, O&M, and power generation verticals, and improving operational efficiency, the company is well-positioned to capitalize on India’s ambitious renewable energy goals. The positive outlook is reflected in Axis Securities’ buy rating and Rs 270 target price, suggesting strong growth potential ahead.

Written By: Dipangshu Kundu

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