Target: ₹158
CMP: ₹143.35
During today’s Q1-FY26 earnings call, Inox Wind’s management raised its EBITDA margin guidance from 17–18 per cent to 18–19 per cent, while reiterating its execution guidance of 1,200MW for FY26 and 2,000MW for FY27. Execution is expected to pick up from Q3 onwards, supported by the recent CERC circular on hybridisation of existing transmission infrastructure and seasonality.
The company has also successfully completed a rights issue of ₹1,250 crore, which is expected to further strengthen its balance sheet. Based on our estimates, Revenue/EBITDA/Adj. PAT are projected to grow at a CAGR of 32/31/36 per cent during FY25– 28.
The company currently has a multi-GW pipeline and expects to convert a substantial portion into firm orders over the coming quarters. The order mix is gradually shifting towards a 50:50 split between turnkey and equipment supply contracts. The existing order book provides visibility for around 2 years of production.
Inox Renewable Solutions Ltd (Resco) will be listed under the automatic route following the demerger of connectivity and common infrastructure businesses from Inox Green to Resco.
The management has guided for Inox Green’s O&M portfolio to expand from 5GW currently to 17GW over the next 2 years, with a mix of both solar and wind assets.
We maintain Buy rating on the stock with a revised SOTP-based target price of ₹158 (earlier TP ₹154), rolling forward our valuation from Mar’27 to Sep’27 earnings.