Shares of Inox Wind, a fully integrated provider of wind energy solutions, rose 19.6% to reach a new record high of ₹209 per share today following the company’s outstanding June quarter results.

On Friday, the company reported a net profit of ₹50 Crore for the June quarter (Q1FY25), a significant turnaround from the ₹During the same period of the previous financial year, a net loss of Rs 65 crore was reported.

Total revenue for the quarter increased by 85% to ₹651 crore, compared to ₹352 crore in the previous year. EBITDA (earnings before interest, tax, depreciation and amortization) margins increased by 1200 basis points year-on-year to 21%. This outstanding performance was the best first quarter financial performance in the history of Inox Wind, according to the company’s earnings release.

Largest order book of all time

The company’s order book is at an all-time high, totaling 2.9 GW as of June 30, 2024, with projects scheduled for completion over the next 2.5 years. This order book covers a broad range of customers, including public sector undertakings (PSUs), independent power producers (IPPs) and the commercial and industrial (C&I) market, with a healthy mix of turnkey projects and equipment deliveries.

The company said it has received a strong response from customers. It has already received orders worth 611 MW in FY2025, including repeat orders from well-known customers. In addition, active discussions with several IPPs, PSUs and C&I customers ensure high transparency in order intake.

The company has increased its production capacity of 3 MW wind turbines, moving away from the existing 2 MW models, and secured a license for a new 4.X MW wind turbine platform. This new turbine, designed with a larger rotor diameter for low-wind locations, is expected to be a game-changer in India.

Recent promoter investments from ₹900 Crore has resulted in positive net cash flow for the company, which has significantly reduced interest payments and increased profitability.

Integrated approach

The company is a fully integrated player in the wind energy space, offering complete end-to-end solutions from conception to commissioning and ongoing operations and maintenance (O&M). With a strong operational track record of around 13 years and a manufacturing capacity of over 2.5 GW across four plants, it stands out among the few select wind power OEMs in India offering plug-and-play end-to-end solutions and post-commissioning O&M services.

The Company’s product portfolio includes 2 and 3 MW wind turbine generators (WTGs), which are currently in production, and a license for 4 MW WTGs is in place.

The company has a robust order book of around 2.9 GW, supported by a significant pipeline of pending orders. In addition, its subsidiary Inox Green is one of the leading wind turbine O&M providers in India with a portfolio of 3.35 GW.

“Well positioned”

The company is well positioned to capture a significant market share in India’s fast-growing wind sector. According to the National Electricity Plan, India will add 80 GW of wind capacity in the next eight years, which will provide significant visibility of over ₹6 trillion for OEMs in the wind industry and offers a major multi-year opportunity for O&M service providers.

Wind energy remains one of the most cost-effective sources of electricity. It is price competitive with Indian solar energy and significantly lower than the average purchase cost of electricity (APPC). The recent auction tariffs for wind-solar hybrid projects ranged between ₹3.4–3.5 per unit, while for simple wind projects rates of ₹2.68-3.6 per unit.

The increasing demand for renewable energy from commercial and industrial players due to its environmental benefits and favourable price differentials compared to grid-based or commercial electricity is further supporting the growth of the sector.

In addition, the NITI Aayog’s draft domestic share requirements for wind power could lead to increased consolidation among suppliers in the domestic market. Moreover, India’s ambitious green hydrogen targets of 5 million tonnes per year will require an additional 125 GW of renewable energy capacity, comprising both solar and wind.

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