INOXWIND

Despite a strong long-term growth trajectory, with net sales expanding at an annual rate close to 44% and operating profit growth exceeding 36%, recent quarterly results have been disappointing. The company reported a decline in net sales by 2.4% in the March 2026 quarter, marking the twelfth consecutive quarter of negative results. Profit after tax for the quarter plunged by over 50%, signalling significant operational challenges. Moreover, the company’s ability to service its debt remains a critical concern. With a Debt to EBITDA ratio nearing 1.8 times, Inox Wind’s leverage is relatively high, raising questions about its financial flexibility. The operating profit to interest coverage ratio has also dropped to a low level, indicating tighter margins for meeting interest obligations. This is compounded by a low return on equity, averaging just under 3%, which points to limited profitability relative to shareholder funds. Investor participation has also waned, with delivery volumes falling sharply by over 50% compared to the recent average, suggesting reduced enthusiasm among market participants. Although institutional investors hold a sizeable stake of over 25%, their increased holdings by just over 1% in the last quarter have not been sufficient to offset broader market concerns.