INOXWIND

’s O&M Expansion Targets Leadership Over Suzlon

is aggressively scaling its operations and maintenance (O&M) services business, aiming to reach 17 GW in two years and surpass Suzlon as India’s largest renewable energy O&M provider. With high-margin returns and growing interest from independent power producers (IPPs), the O&M unit is emerging as a key earnings driver, even as execution challenges persist in the core wind turbine business. - Rapid O&M Capacity Expansion Inox Wind’s O&M portfolio jumped to 12.5 GW after acquiring 6.5 GW of projects, up from 5.1 GW in June 2025. The company targets 17 GW by FY28, positioning itself ahead of Suzlon’s 15.4 GW as of September 2025. - High-Margin Business Model O&M services are less capital intensive than manufacturing and can deliver operating margins of up to 50%. In H1FY26, the O&M unit generated ₹100 crore EBITDA on ₹227 crore revenue, highlighting strong profitability potential. - Earnings Upside from Acquired Assets Analysts estimate annual O&M EBITDA could rise to ₹400 crore as newly acquired assets are integrated. This would represent a significant contribution, given consolidated EBITDA of ₹491 crore in H1FY26. - Analyst Upgrades on O&M Execution Brokerages like Nuvama have raised FY26–27 earnings estimates, citing stronger O&M execution at Inox Green. The recurring nature of O&M revenues provides stability compared to the lumpier turbine sales business. - Execution Risks in Core Business Despite O&M momentum, turbine order execution lagged estimates in Q2FY26. Long working capital cycles and potential government cancellations of projects without power sale agreements remain sectoral risks. Sustained execution in both O&M and core manufacturing will be critical for investor confidence.