Nuvama Institutional Equities has reaffirmed its ‘Buy’ rating on Inox Wind, a leading wind energy player and peer of Suzlon Energy, while lowering the 12-month target price from ₹236 to ₹190 per share. The revised target still implies a potential upside of 38.68 percent from Inox Wind’s closing price of ₹137 on Thursday.

According to Nuvama, the multibagger stock delivered modest Q1 FY26 execution of 146 MW, slightly below the consensus estimate of around 180 MW. Revenue for the quarter stood at ₹830 crore, while a higher operating margin of 22.2 percent, driven by a product-heavy mix, resulted in a 7 percent beat on consensus EBITDA. Adjusted PAT came in at ₹110 crore, 11 percent ahead of estimates, despite a non-cash deferred tax charge of ₹40 crore. The company secured an order inflow of 51 MW, taking the order book to 3.1 GW for execution over the next 24 months, Nuvama said.

Growth Outlook and Market Position:

Nuvama noted that Inox Wind, one of only two wind EPC suppliers in India, is benefiting from strong demand in round-the-clock (RTC), firm and dispatchable renewable energy (FDRE), and commercial & industrial (C&I) segments. The brokerage revised its FY26 and FY27 execution forecasts to 1.1 GW and 1.8 GW, respectively, from 1.2 GW and 2 GW earlier. 

With a 20 percent market share, Inox Wind remains alongside Suzlon Energy as one of only two wind EPC and turbine generator suppliers in the country. The company’s growth is supported by a 12 GW annual total addressable market, 3 MW-plus turbines, over 4.5 GW nacelle capacity, high-margin (35 percent) O&M services, and a strengthened balance sheet, Nuvama added.

Q1 Financial Highlights:

The company reported its highest quarterly net profit and impressive all-round numbers in Q1FY26. Net profit surged 134 percent YoY to ₹97.3 crore despite the ₹40 crore deferred tax charge. In the same quarter a year ago, net profit was ₹41.6 crore. Profit before tax rose 167 percent YoY to ₹138 crore, while cash profit after tax increased 168 percent YoY to ₹186 crore. 

Revenue from operations rose 29.2 percent to ₹826.3 crore versus ₹639.6 crore in Q1FY25. EBITDA jumped 36.5 percent YoY to ₹183.8 crore, and EBITDA margins expanded over 100 bps to 22.2 percent from 21 percent in the previous year. Additionally, the merger of Inox Wind Energy Ltd into IWL further strengthened the balance sheet, reducing liabilities by approximately ₹2,050 crore, Nuvama highlighted.

Stock Price Trend:

In the last one year, Inox Wind’s stock has declined 35 percent but delivered multibagger returns over the long term, surging 1,197 percent over five years. Recently, the stock faced corrections, down 9 percent in August after 13 percent in July and 10 percent in June. However, gains of 15 percent in May, 2 percent in April, and 8.5 percent in March reflect intermittent recovery. The stock currently trades 47 percent below its 52-week high of ₹258.43 hit in September 2024, and above its 52-week low of ₹128.38 in January 2025.

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