Inox Wind Limited: Strategic Demerger & Operational Guidance Update

Execution & Margins: Management has reaffirmed its execution guidance of 1,200 MW for the current fiscal year. Despite achieving a robust EBITDA margin of 20.3% in Q2FY26, the company maintains a conservative full-year margin outlook of 18–19%. Seasonality Factor: Investors should note that H2 (second half) is projected to contribute approximately 70% of the full year's business volume, supporting a strong finish to the fiscal year. Q2 Snapshot: The company reported Q2 Revenue of ₹1,119 Cr and a Profit After Tax (PAT) of ₹120.6 Cr. 2. Strategic Corporate Restructuring (Value Unlocking) New Entity Listing: The InoxGFL Group is executing a strategic demerger to consolidate Inox Green Energy Services’ substation/TPC arm with Inox Wind’s EPC arm. This will result in the listing of a new entity: Inox Renewable Solutions Limited (IRSL). IRSL Asset Base: The newly listed IRSL will serve as the platform for EPC operations, transformer manufacturing, and crane ownership. Crucially, it will hold a massive land bank offering nearly 14 GW of hybrid connectivity and project sites. Timeline: Internal approvals are secured; NCLT clearance is expected within 4–5 months. Management views this as highly value-accretive, removing depreciation charges from Inox Green while unlocking infrastructure asset value for Inox Wind. 3. Order Book & Business Visibility Order Visibility: The company holds a strong order book of 3.2 GW, providing clear revenue visibility for the next 18–24 months. Strategic Shift: Inox Wind is pivoting from individual project tenders to multi-year framework agreements, targeting ~1 GW of recurring annual orders for the next 3–5 years to stabilize cash flows. 4. Market Data Valuation: Current Market Cap stands at ₹25,448 Cr. Price Action: The stock is trading at ₹147.22 (as of publication), reflecting a ~20% correction over the last year, potentially offering a consolidation entry point pending the demerger outcome.