Inox Wind margin drops 7.28 points as profit falls 44.48% YoY
Costs grew 12.84% QoQ against 3.05% revenue growth, while the stock's first-day fall exceeded its typical post-results move.
Filed 29 May 2026, 16:20 IST · after market close · Inox Wind Ltd (INOXWIND)
Key takeaways
- Consolidated net profit fell 44.48% YoY as revenue declined 2.40% and interest expense rose 86.52%.
- Operating margin narrowed 7.28 percentage points QoQ to 16.04% because expenses grew 12.84% against 3.05% revenue growth.
- The stock fell 9.87% on the first trading day, versus a 4.88% median absolute move after the last eight results.
Price around the results
Q4 profit weakened despite modest sequential revenue growth
Inox Wind's consolidated revenue grew 3.05% QoQ, but operating profit fell 29.14% as expenses rose 12.84%. On a YoY basis, revenue declined 2.40% while expenses increased 2.37%, pulling net profit down 44.48% to Rs 105.68 cr. The deterioration was sharper below operating profit, with interest expense up 86.52% YoY.
Cost inflation and higher interest drove the margin squeeze
Operating margin narrowed 7.28 percentage points QoQ because costs grew much faster than revenue, and it was down 3.91 percentage points YoY for the same reason. Interest expense also rose 28.91% QoQ and 86.52% YoY. Profit quality was weaker: other income accounted for 42.57% of pre-tax profit, while the YoY tax-rate increase of 18.24 percentage points added to the pressure on net profit.
Margin fell from Q3, but remained just above the peer median
The 16.04% operating margin reversed the 23.32% recorded in Q3FY26 and was below the 19.95% reported in Q4FY25. The quarterly trend remains volatile rather than a straight-line decline, with margins moving from 22.23% in Q1FY26 to 20.35% in Q2FY26, then 23.32% in Q3FY26. Among 71 Industrials companies that had reported the quarter, Inox Wind's margin was 0.38 percentage points above the 15.66% sector median.
Management points to a larger order base and capacity expansion
Management said FY26 orders totaled about 600 MW from customers including Aditya Birla, Amplus/Gentari, Jakson, First Energy and Leap Green, while the presentation puts the order book at about 3.1 GW with more than 24 months of revenue visibility. Management said the working-capital cycle fell by about 15 days during the quarter and expects it to improve substantially. The company also said it plans to ramp up nacelle, hub, transformer, power-electronics and crane facilities, while increasing equipment supply's share of the order mix from below 20% to about 75%.
The initial market reaction was unusually negative for this stock
The shares fell 9.87% on the first trading day after the results, with a 3.43 times volume ratio; the opening gap was -3.81%. This was weaker than the stock's 4.88% median absolute move after its last eight results, which were split evenly between four rises and four falls. The decline remained at 9.15% after five trading days.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,244 cr | ₹1,207 cr | +3.05% | -2.40% |
| Other income | ₹61 cr | ₹31 cr | +97.80% | +70.97% |
| Expenses | ₹1,045 cr | ₹926 cr | +12.84% | +2.37% |
| Operating profit | ₹200 cr | ₹282 cr | -29.14% | -21.52% |
| Operating margin (%) | 16.04% | 23.32% | — | — |
| Interest | ₹65 cr | ₹50 cr | +28.91% | +86.52% |
| Depreciation | ₹52 cr | ₹53 cr | -1.48% | +9.12% |
| Profit before tax | ₹144 cr | ₹209 cr | -31.29% | -30.69% |
| Tax | ₹38 cr | ₹83 cr | -53.82% | +120.98% |
| Net profit | ₹106 cr | ₹127 cr | -16.56% | -44.48% |
| EPS (₹) | ₹0.61 | ₹0.73 | -16.44% | -46.96% |
Operating margin of 16.04% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -9.87% | -9.17% |
| Next session | -9.40% | — |
| 5 sessions | -9.15% | -7.34% |
| 15 sessions | -0.14% | — |
| 30 sessions | -15.02% | — |
Volume on the results session was 3.43× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The working capital cycle fell by about 15 days during the quarter.
Guidance & outlook
- Inox Wind expects over 2 GW of order pipeline and recurring annual order visibility from Inox Clean.
- The company expects its working capital cycle to improve substantially going forward.
- The company is securing long-term recurring orders through partnerships and framework agreements.
Expansion
- The company plans to ramp up new nacelle, hub, transformer, power electronics and crane facilities.
- The company plans to enhance blade manufacturing capacity for 4X wind turbine generators.
New orders
- In FY26, IWL won multiple orders totaling about 600 MW from several named customers.
- IWL's order book stood at about 3.1 GW, providing revenue visibility for more than 24 months.
New initiatives
- Inox Wind is pivoting toward equipment sales, targeting an increase in equipment supply from below 20% to about 75%.
- IRSL is expanding into solar EPC, transformer manufacturing, hybrid renewable solutions and BESS EPC.
- IRSL is entering the high-growth BESS EPC segment.
Problems & risks
- Execution challenges, geopolitical tensions, delayed ECS supplies and logistics issues affected operations.
- Some customers withheld payments because of the macro environment, keeping the working capital cycle high.
What to watch
- Whether operating margin recovers from 16.04% after the 7.28-percentage-point QoQ decline.
- Whether expense growth moderates from 12.84% QoQ relative to revenue growth of 3.05%.
- Whether the working-capital cycle improves further after management reported a 15-day reduction in Q4.