Inox Wind profit drops 34.16% as interest costs surge
Revenue fell 1.47% year on year and operating margin narrowed 3.5 percentage points, despite a sequential margin recovery.
Filed 07 Aug 2026, 16:23 IST · after market close · Inox Wind Ltd (INOXWIND)
Key takeaways
- Consolidated net profit fell 34.16% year on year to Rs 64.09 cr as interest expense rose 68.04%.
- Operating margin recovered 2.69 percentage points sequentially because expenses fell faster than revenue, but remained 3.5 percentage points below Q1FY26.
- Other income contributed 60.82% of consolidated profit before tax, making reported earnings less dependent on operations this quarter.
Price around the results
Profit fell despite broadly stable year-on-year revenue
Inox Wind's consolidated revenue declined 1.47% year on year, but expenses rose 2.96%, pushing operating profit down 16.99%. Higher interest and depreciation costs then drove profit before tax down 31.15%, while net profit fell 34.16% to Rs 64.09 cr. The results were filed after market close.
Sequential margin recovery did not reverse the annual squeeze
Operating margin improved 2.69 percentage points sequentially because expenses fell 36.67%, faster than the 34.57% decline in revenue. Year on year, costs grew faster than revenue, narrowing margin by 3.5 percentage points. The margin path has been volatile: it moved from 22.23% in Q1FY26 to 20.35%, 23.32%, 16.04% and 18.73% in the following four quarters.
Interest and other income changed the quality of earnings
Interest expense rose 68.04% year on year, while depreciation increased 20.45%, adding pressure below operating profit. Other income rose 58.63% and accounted for 60.82% of profit before tax, so a large part of reported pre-tax earnings came from outside operations. The tax rate also increased 3.09 percentage points year on year to 32.32%, rather than supporting net profit.
Management highlighted a shift toward equipment and manufacturing
Management said the company is pivoting toward equipment sales and plans to expand blade capacity for 4X WTGs. It also said the transformer facility is being ramped up, with additional cranes and manufacturing of inverters, ECS and USS. The presentation said the order book was approximately 4.4 GW in July 2026 and provided more than 24 months of revenue visibility, while management expects a commercial launch of 4X MW within CY26.
The stock has had an even but volatile post-results record
There is no immediate market reaction to assess because the results were filed after market close. Across the last eight results, the stock rose after four and fell after four, with a median absolute move of 4.94%, indicating that a typical reaction has been sizeable but directionally inconsistent.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹814 cr | ₹1,244 cr | -34.57% | -1.47% |
| Other income | ₹58 cr | ₹61 cr | -5.97% | +58.63% |
| Expenses | ₹662 cr | ₹1,045 cr | -36.67% | +2.96% |
| Operating profit | ₹152 cr | ₹200 cr | -23.59% | -16.99% |
| Operating margin (%) | 18.73% | 16.04% | — | — |
| Interest | ₹57 cr | ₹65 cr | -12.47% | +68.04% |
| Depreciation | ₹59 cr | ₹52 cr | +12.60% | +20.45% |
| Profit before tax | ₹95 cr | ₹144 cr | -34.19% | -31.15% |
| Tax | ₹31 cr | ₹38 cr | -19.93% | -23.87% |
| Net profit | ₹64 cr | ₹106 cr | -39.35% | -34.16% |
| EPS (₹) | ₹0.37 | ₹0.61 | -39.34% | -38.33% |
Operating margin of 18.73% compares with a Industrials sector median of 14.50% across 82 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects to commercially launch 4X MW within CY26.
Expansion
- The company plans to enhance blade manufacturing capacity for 4X WTGs.
- The company is ramping up its transformer manufacturing facility and adding more cranes.
New orders
- Inox Wind has an order book of approximately 4.4 GW as of July 2026.
- The order book provides more than 24 months of revenue visibility.
New products
- The company offers 2MW and 3MW WTGs and is developing an upcoming 4MW class WTG.
- The company is developing power electronics products including inverters, ECS and USS.
New initiatives
- The group has adopted an integrated strategy using synergies across its renewable businesses.
- The company is pivoting strategically toward equipment sales.
- The company plans to secure recurring orders through partnerships and framework agreements.
What to watch
- Whether consolidated operating margin holds above 18.73% after the sequential recovery.
- Whether other income remains a smaller contributor than 60.82% of profit before tax.
- Progress against management's stated 4.4 GW order book and more than 24 months of revenue visibility.