Yeah. Thank you.

Good evening. On behalf of ICICI Securities, I welcome you all to the Q2 FY26 earnings call of Inox Wind and Inox Green Energy Services.

For today's call, we have with us Mr. Devansh Jain, Executive Director, INOXGFL Group; Mr.

Akhil Jindal, Group CFO, INOXGFL Group; Mr. Sanjeev Agarwal, CEO, Inox Wind; Mr.

S. K.

Mathusudhana, CEO, Inox Green; and other senior members of the management. I would now hand over the call to the management for their initial remarks, after which we'll open the floor for the Q&A session.

Thank you, and over to you, sir.

Thank you so much, Mohit. Good evening, everyone and thank you for joining the Q2 FY25 earning conference call of Inox Wind Limited and Inox Green Energy Services Limited.

I will first brief you on the financial and operational achievements of Inox Wind for the quarter under review, as well as other key developments and future roadmap before handing it over to Madhu for his briefing on the development at Inox Green. We are pleased to inform you that we have been able to deliver the best-ever Q2 in Inox Wind history, despite the quarters being substantially impacted due to monsoons.

With over 200 MW executed in Q2 and around 350 MW in H1, we are on the track to achieve our guidance for the full year, with H2 generally being 70% of the annual execution. I will briefly take you through some of the key results of Inox Wind's financial performance for Q2 FY26.

On consolidated basis, Inox Wind has reported a revenue of ₹1,162 crore, an increase of 56% YoY; EBITDA of ₹271 crore, an increase of 48% YoY; PAT of ₹121 crore, an increase of 43% YoY; cash profit of ₹220 crore, an increase of 66% YoY. Execution for the quarter stood at 2 202 MW, taking the total execution the first half of FY26 to around 350 MW.

On the order book front, we have a large and very diversified order book, which currently stands at over 3.2 GW. We are building new customer relationships and continue to fortify our existing relationships.

Further, we are also discussing with multiple customers, including the group IPP, to enter into framework agreements and partnerships, which would provide long-term recurring annual orders. Cumulatively, these agreements will secure upward of 1 GW of annual recurring orders for Inox Wind going ahead.

Consequently, we are confident to close FY26 with a very strong net order book, which will provide execution visibility for the subsequent 18 to 24 months. Our manufacturing facility, including the recently commissioned nacelle and hub unit at Kallyanpur, Gujarat, are operating at high utilization levels, and EPC activities on multiple sites are on full swing post the monsoons.

Further, we are expanding our manufacturing presence in South India by setting up a new blade and tower manufacturing facility, giving us quicker access to large sites across Karnataka, Andhra Pradesh and Tamil Nadu. With my colleague Madhu will brief you in greater details, we are elated with achievements and prospect of our subsidiary Inox Green, where Inox Wind holds 56% currently.

Inox Green has 12.5 GW of renewable portfolio, directly or through investments made for multi-gigawatt portfolio acquisitions. The group IPP, with ambitious plan of setting up multi-gigawatt renewable energy capacity annually, provides a strong portfolio additional visibility.

Further, with the organic and inorganic growth prospects of the company, we believe Inox Green is on track to become the largest renewable O&M player in India. Another positive development is a scheme of demerger of the sub-stations business from Inox Green and its subsequent merger into Inox Renewable, receiving approval from shareholders and creditors.

This will add value for both Inox Wind, with subsequent listing of Inox Renewable Solution as an EPC arm of Inox Wind, and Inox Green, with elimination of depreciation on demergers of the fixed block. With the global shift towards greener power, India has also set ambitious plan for the complete transition to renewable energy.

Hybrid projects are gaining pace to achieve this transition. Wind along with solar plays an important role in this hybrid projects.

Wind complementing to solar in Indian conditions make it as an important source of power for grid stabilization, as well as higher grid utilization. Also, price arbitrage compared to merchant power, especially during the peak hours, makes wind an important source.

The recently announced reduction in GST for wind components from 12% to 5% is another positive development in the increasing list of favorable policies being in place for Indian wind sector, including ALMM for wind and wind turbine components, amendment to CERC connectivity and GNA regulations for ISTS, allowing hybridization of existing solar and wind transmission projects, among others. With all building block in place, I believe Inox Wind is well set to embark on next leg of growth.

I would now hand over to S. K.

Mathusudhana, CEO of Inox Green for his remarks. Madhu?

Thanks, Sanjeev. Good evening, everyone.

I will firstly brief you on our financial achievements of Inox Green during the quarter before moving to other aspects. During Q2 FY26, Inox Green reported best-ever financial performance.

Total income of ₹129.5 crore, up by 101 percentage year-on-year. EBITDA of ₹52.2 crore, up by 52 percentage year-on-year.

Profit before tax of ₹40.9 crore, up by 323 percentage year-on-year. Profit after tax of ₹28.1 crore, up by 363 percentage year-on-year.

Cash PAT of ₹50.9 crore, up by 121 percentage year-on-year. During the quarter, the machine availability of the entire portfolio averaged 96.3 percentage.

Inox Green's portfolio stands at 12.5 GW, including the investments which we have made to acquire 6.5 GW of operational wind O&M assets of two companies. With the financials expected to consolidate into Inox Green's books in FY27 post-statutory approvals, we expect our profitability to grow manifold in FY27 over FY26.

The scheme of demerger of the substation business from Inox Green and its subsequent merger into Inox Renewable Solutions has received approvals from shareholders and creditors. Once this scheme receives final approval from NCLT, gross block of around 1,000 crore will be eliminated from Inox Green's balance sheet, and subsequently, the annual depreciation of ₹50 to 55 crore will be eliminated, thereby increasing the profitability.

It will also lead to significant improvement in the ROE and ROCE of Inox Green. Inox Green has rapid growth plans on both organic and inorganic fronts.

We will continue to be beneficiaries of our parent company Inox Wind's rapid execution growth. Additionally, large-scale plans of our group IPP company and solar module vertical will also benefit us going ahead.

I believe Inox Green is well on track to become India's largest renewable O&M company in the very near future. I will now hand over to our Executive Director, Mr.

Devansh Jain for his remarks, after which we will open up the floor for the Q&A. Thank you.

Hi. Good evening, everybody.

While Sanjeev and Madhu have taken you through the brief financial and operational performance of their respective companies, let me just touch upon some of the strategic initiatives that we have undertaken across the renewables vertical of the INOXGFL Group. At the outset, I am pleased with what we have been able to achieve so far, building one of the most integrated groups in the energy transition space.

Today, we are present across the value chain in renewables, right from manufacturing of wind turbines and solar modules, project development, EPC and commissioning, to O&M services, and now renewable power generation. At the same time, our group companies are also large consumers of energy.

Our IPP venture, I believe, is the most strategic fit in the group, as it enhances the value of all our existing businesses. While Inox Wind stands to gain through recurring turnkey orders over the next several years, Inox Green also gains through the constant addition of capacities to its O&M portfolio.

At Inox Wind, all our strategic decisions related to backward and forward integration has started to yield results. Additionally, at Inox Wind, we're strategically pivoting ourselves to enter into long-term framework agreements with multiple IPPs, which will lead to a large recurring annual order inflow visibility.

Further, Inox Green has acquired multi-gigawatt O&M portfolios through investments, which takes our current O&M portfolio to 12.5 GW, and sets us on course to make Inox Green the largest renewables O&M company in India. This has been done in one of the shortest times globally ever.

There has been a substantial progress in the substation demerger scheme, which has now received approval from shareholders and creditors. I believe that the demerger and subsequent listing of Inox Renewable Solutions will unlock substantial value for both Inox Wind and Inox Green.

I thank all our shareholders and creditors for their continued and unwavering support for all of our group companies. Thank you, and now we can open the floor for Q&A.

Hi, am I audible?

I want to congratulate management on good sets of numbers. I have two questions.

My first question is you have raised financial '26 EBITDA margin guidance to 18%-19%. Could you break down how much uplift comes from backward integration, like nacelles, transformers and cranes, and how much come from royalty cessation on the 3 MW platform?

Hi, thank you for your question. Broadly we don't give specific breakups of the benefits coming in from all the activities that we are doing, but we've said it multiple times that the royalty, which has gone off now for the 3 MW turbines, is broadly around ₹6 lakh per megawatt.

I'm sure you can work out from the numbers that we've already given several times. On the 18% to 19% EBITDA margin guidance that we had increased in the last quarter, we continue to stick on that.

Okay. My second question is you mentioned focusing on completing incomplete sets in quarter one con-call and maintaining 120 days net working capital.

Could you quantify the megawatt or rupee value of these incomplete sets that are still on the books and expected cash conversion timeline, especially of turnkey projects where revenue is recognized early, but cash comes only at commissioning?

Different projects have different payment cycles, but effectively we've guided for 120 net working capital cycle, and I think we're well on track to broadly achieve that over the course of this financial year. I'm not sure what specific data you want.

Sir,

what is the rupee value of incomplete sets stuck in receivable or inventory today, and how much of that is expected to convert in Q3 versus Q4?

Again, there is nothing stuck. We're just guiding, there's nothing called stuck.

We've guided for 120 days of net working capital, and that's what the company will achieve over the course of ongoing quarters.

In fact, you also have an advantage of seeing our balance sheet. All the numbers that you are asking are a part of our Clause 41 disclosure.

You can have a look at the inventory and the debtors and the creditors. Working capital cycle is something that is easily available from that Clause 41.

Okay. Thank you.

That's it from my side. All the very best for upcoming quarters.

Thank you.

Yeah. Hi, sir.

Congrats on a very good set of results. Sir, couple of questions.

One on the execution. We have achieved around 348 MW in H1, which is close to 29% of our full year target of 1.2 GW.

You have still maintained the 1,200 MW target. Just wanted to understand how do you see execution in H2?

Since we have achieved only 29% and H2 target is very steep.

No, I think we've publicly guided multiple times that H1 and H2 would broadly be 30% to 35%, and yes, we've achieved about 30% in H1. As Sanjeev mentioned, obviously this is the most affected quarter in terms of monsoons, and I think we are broadly very well on track to achieve that.

He's also mentioned our new nacelle manufacturing facility in Kallyanpur has gone live, cranes are deployed across sites, transformer manufacturing have been ramped up. We're extremely confident of achieving that.

Having said that, I think we're very well on track even with respect to the financial numbers we've guided for. If you look at our financial numbers over H1, I think we're frankly ahead of track of what we've guided, we're confident of achieving the overall targets for the financial year.

Okay. Sir, speaking of financials, I think we have guided for 18% to 19% margins, but in H1 we are a bit more than 22%.

No, we've raised our margins last quarter to 18% to 19%, and we stick to it. We're not seeing guidance is any at this point in time.

Over the past, I would say, six quarters, we've upgraded guidances almost four times. I don't think it's fair to keep coming back to us and asking us for margin upgrades every quarter.

I think we're doing better than what we've guided, and I hope shareholders are happy with that.

Okay. Sir, what about the pipeline?

We have 380 MW of orders in H1. If you can guide us in terms of enquiry pipeline and what we can expect in H2?

Okay. Look, we have said in our guidance that we are working on multiple projects.

We've also worked on a strategy where there are tenders which is EPC, there are tenders which are semi-turnkey, and there are tenders where we do equipment supply. I would say at this point in time, we have an excess of 3 3 GW of tender pipeline among multiple sectors which I just explained, and we are extremely confident that we would achieve our guidance.

Probably next quarter when we meet, we will talk more about, even possibility of overachieving it.

Sir, I'm asking about the inflow, sir, order inflow. How do you see the pipeline?

Yeah. I'm only talking about order inflows that we have in excess of 3 GW of tenders that we are working on today.

This is a mix of complete EPC, semi-turnkey and equipment supply.

Got it, sir.

Just to add to what Sanjeev sir has said, probably he has mentioned in his opening remarks as well, that we are strategically now working on signing framework orders with multiple parties, which will in turn give us an order visibility, an annual recurring order visibility of at least a gigawatt across multiple parties. That is also something which will come over the next few months.

Sure, sir. I think in the presentation you have mentioned that 500 to 700 MW each year is expected from our group IPP only, right?

Then maybe 500 MW more from other parties.

From multiple other third-party companies.

Sir. Thank you so much.

Thank you. Congratulations, sir.

My question is just a follow-up to the question with the previous participant. I just wanted to understand recently I read a media article saying that almost 40 GW of projects without PPAs are expected to cancel and go for rebidding.

How do you expect this to impact the sector? What's your outlook on the ordering activity in wind, especially even in seven months, the ordering activity has been down?

Do you expect this to impact the sector in the near term?

A couple of things. First and foremost, with respect to Inox Wind, we don't have any orders in our system which are impacted by these so-called potential PPA cancellations, right?

Second, with respect to there's been a lot of talk about this for the past 15 months, and many of these tenders are standalone tenders of wind, solar, and what's happening, the name of the game is now changed to FDRE, RTC, hybrid, from a grid stability perspective, from more absorption of power in the grid. Also, batteries become fairly competitive.

People want to add FDRE with more wind. Honestly, this entire cancellation drive increases the opportunity for the wind sector, because you're going to see more and more hybrid RTC FDRE tenders, which will lead to more wind component bids as we move forward.

I think the other way to look at it is we are really moving to a scenario where rather than just taking out tenders and then keeping PPAs pending forever, which really leads to no execution, because without PPA signing, no FC happens, financial closure, and nobody places orders and move forward. We are now moving to a regime where the government is saying, "Look, let's actually add the power which the grid needs, which is firm, hybrid, RTC, FDRE, as I mentioned."

I think it's a bold move, it's a proactive move, and I think putting aside the so-called optical negative input, I think it's a very positive move for the sector to move towards actual genuine bids, which will keep coming up as we move forward. The other thing to look at it is if you look at the past seven months of data, what the wind sector has added in the past seven months in India is close to about 35 to 3,700 MW of commissioning.

If you just extrapolate that to 12 months, and mind you, Q2 is always a monsoon quarter, we're broadly looking at a scenario we are north of 6 GW in this financial year. Across key industry players, we've guided for this year being 5 to 6 GW, next year being 7 to 8 GW.

I think the industry is going to surpass this as we move forward.

This is

Sanjeev here. I can just add just to tell you that in Inox, we have a extreme robust risk management process.

Any tenders that come to us, all these nitty-gritties are weighed in before we decide to make a bid. As what just Devansh said, we have no job in execution, no project in execution, which may impact because of this news which is floating around.

Neither we have tendered today the 3 MW excess of 3 GW that we are tendering will fall into this category. Thanks to this risk management process internal in the organization, which has always helped us to be one step ahead of what others do or to take care of the market needs.

Thank you.

Understood. Thank you, sir.

That's reassuring. Thank you and all the best.

Hi, sir. Am I audible?

Hi, Devansh sir. My questions are already answered in previous questions.

I just wanted to wish everyone all the best for the coming quarters and take care of your health, sir.

Thank you so much. You can take up the next question, please.

Hi, sir. Is it possible for you to quantify the number of equipment supply and EPC for the balance in execution in the H2?

No, Ketan bhai, we will not quantify, because we've got different orders at some point in time, some of the equipment supply sites are ready, sometimes they are not ready. It's not possible to quantify, but broadly I would say for the course of this financial year, we should be somewhere between 50-50 to 60-40 in terms of turnkey and equipment supply.

All right. Thank you so much.

Good evening, sir. Thank you for the opportunity.

Sir, my first question was regarding Inox Green. What O&M portfolio growth are you expecting in FY26?

Hello?

Hi, we've given ample details in our presentation that we've already reached around 12.5 GW of O&M portfolio across wind and solar, part of it coming in from the investments that Inox Green has recently made to acquire certain portfolios cumulating to around 6.5 GW. We've also said in our last call that we have a target to achieve 17 GW of O&M portfolio within the next two years, that was from the last quarter, and we are very confident of in fact overachieving that number.

Probably that should answer your question.

Got it, sir. Sir, the second question was regarding realization of wind turbine segment.

Sir, I wanted to ask what are the current realization of this segment and also what drive these realizations?

Broadly on a thumb rule basis, what you can consider is ₹8 crore per megawatt for any turnkey contracts, inclusive of GST, and around ₹6 to 6.5 crore for equipment supply, and if we have limited scope EPC along with it, the pricing increases slightly. That's the thumb rule which you can consider for any of your projections.

Yes, hi. Just wanted to first of all, congratulate everybody here, especially on the Inox Green side, to achieve a 12.5 GW portfolio.

That's just amazing. My question is that given that the assets that could have been acquired have been acquired, and I remember in the last call being said that there is also a chance to add more assets via taking over the O&M portfolios of existing players.

Is that a strategy that we are still on? If you could shed some light on that, that would help us understanding the road ahead from here, especially on the wind assets side.

Look, when we set out at Inox Green, if you recall, the overall ambition was to eventually make it a 10 GW company over the next 2-3 years ahead of where we are today. Frankly speaking, we've already become 12.5 GW.

We've acquired two large assets directly, indirectly, whichever way you want to put it. There are limited opportunities now, but there are a lot of opportunities coming in from some of the aggregators who now think there is no value creation for them being standalone.

There are certain IPPs who are considering de-classifying these O&M assets and outsourcing it to large players like us, and I think that could lead to large numbers being added as we move forward. Moreover, besides Inox Wind's own organic growth, we also have Inox Solar now in the group, which will add to further capacity, and Inox Clean, the group IPP company, which is adding capacity.

I think, hard to give out numbers, but all I can say is I think we are very near a point where we would, over the next few months, be India's largest renewable O&M services company, which will continue to grow at a very, very healthy

pace. Wonderful, Devansh.

That's just amazing, and thank you for that answer.

Thank you.

Hi, I hope I am audible. Thank you for the opportunity.

Greetings to everyone. Sanjeev, my first question, I have two questions and I am sure you are not going to like both the questions.

If I look at our execution numbers for the past four quarters, it is certainly growing, but if I look at the industry's installation which India is currently achieving, it is definitely not in line with what installation we are seeing in the country. I am sure there are answers like 35-65 or 30-70.

If you look at from this perspective, the industry installation perspective, Sanjeev, what's your opinion on the execution number which we have been delivering for the past three, four quarters continuously? I have a second question, will come back on that after the answer.

Prateek, we've said this before, and again, let me repeat it for all who are listening to us. We are confident to achieve our numbers of 1.2 GW for the full year.

There is a plan. The plan is in motion.

It has worked. The 30% we just mentioned was our plan in the H1.

70% is the balance to be done with our new factories fully operational, and a mix of turnkey, EPC, and equipment supply. We are absolutely confident to beat this number of 1.2 GW, Prateek.

Certainly, Sanjeev. In fact, I am also very hopeful that it will happen, because last two years we have seen some shortfall in our guidance, but I am certainly very hopeful.

My second question is on order inflow.

Just before you ask your second question, if you look at our financial performance over the last two years, we've beaten all the guidances and all the analyst expectations on the EBITDA side, on the profitability side. Your question and your concern on 100 MW or 50 MW here and there is I don't think one should worry, because on the financial side of things, on the margin side, we've achieved much higher numbers than what the street was expecting us to do.

One has to be mindful of that fact as well when analyzing our company.

In fact, I said in my speech that this is the best-ever quarter two performance for Inox in its history, yeah, despite the monsoons.

No, I totally agree with you, and in fact, our subsidiary companies are doing phenomenally well. I don't think anyone would have expected Inox Green to have such a large portfolio in such a short span of time and deliver the numbers which it has done in this quarter also.

That is also something which is adding value to the consolidated Inox Wind, which I'm sure all the investors and analysts will be mindful of. No, absolutely.

I totally agree with you regarding financial performance, but it's just that FY24 and '25, we had shortfalls in our execution, which were not compensated in the subsequent years. That is why I thought it is pertinent to raise this issue.

I totally in line with you that probably we will overachieve this year. I am totally hopeful.

Thank you for that. Sanjeev, my second question is on order inflow.

If I look at our order inflow and I compare it with the sector leader, there is some amount of sustainability in what the sector leader is achieving as order inflow every quarter. Now, we being such a important player in this sector in the country, because we are the second largest and we had been in the existence for so long, what is the reason that is inhibiting us from taking new orders?

I am sure we have a thick pipeline, but then why not some material number on the inflows? I hope you get my question, Sanjeev.

Look.

Thank you so much. I think I would like to reiterate.

We choose our orders very carefully. I said we have a robust risk management philosophy where we analyze all the tenders and then make a decision which one we will go for.

Having said that, you've seen that we already have a backlog of almost two years, in excess of two years, yeah, with whatever we can produce from the shop, with whatever we can justify to our customers, we have it. Our present tender pipeline is in excess of 3 GW, once again reiterating that the number that we committed on top line on the order book would happen, Prateek.

Understood, Sanjeev. Can I just ask one last question, a small question, Sanjeev?

Go ahead.

Yeah. We are seeing some inflationary move in aluminum, copper these days, though I understand we are very stick to our EBITDA margin guidance, but I was just wondering if it will impact us in say, next six, seven months?

Is there a pass-through in our orders, Sanjeev?

Yes, couple of orders, we have a pass-through. Couple of orders which we're on the last stage of execution, we've already taken care of those.

I don't believe that this inflationary measure on the metals is going to hit us.

Understood. Very helpful.

Thank you, Sanjeev. Thanks a lot, and good luck.

Hello, am I audible?

Hello.

I'd like to congratulate the management on the excellent performance this quarter, especially Inox Green.

Sorry, we can't hear you. You have to be louder, please.

Am I audible now?

Yes, much better.

Yeah. I just had one question with the management of Inox Green.

In the past you have guided that our per megawatt realization is somewhere in the ballpark of ₹8 to 10 lakh. With a 5% increment per year in our contracts.

Are there any changes in that, or are we still on those numbers?

No, the guidance which we've given in the past stands firm. Broadly ₹8 to 10 lakh per megawatt is the revenue for wind, and for solar, as we've spoken in the last call as well, it's around ₹2 lakh per megawatt.

On the margins front, it's 50% broadly for wind, and for solar, it's around 20 odd

percent. Okay.

Thank you so much. That's all.

Hello, sir. My question was regarding the drivers of realization.

What drives realization in wind and turbine segment?

See, we've said multiple times that realization basically, on an average, is around ₹8 crore for turnkey contracts. Now, turnkey contracts includes the equipment that we supply and the EPC services, as well as the infrastructure services which we provide.

That's the thumb rule, and across the industry, the prices continue to be stable at around these levels for the 3 MW turbines. That is how the industry is working right now.

Got it, sir. Also, sir, what would be your CapEx guidance for FY26?

Could you repeat your question, please?

Sir, my question is, what would be your CapEx guidance for FY26?

For FY26, our CapEx guidance is around 200 odd crore.

Sir. Sir, that's it from my side.

Thank you.

Hi, Devansh sir. Just a generic question.

Is there a chance of Inox Wind entering into battery energy storage system in future? Nowadays everyone is talking about BESS, right?

Just wanted to ask regarding this.

No, basically, let me answer this. I think on battery side, our group companies are already doing a lot of work.

On the battery side, they are pioneers in this business. To that extent, I don't think we have any intention of getting into the battery or battery manufacturing.

Yes, as a subset of our business, wherever there is a battery as a added storage plans, then definitely we're looking at those opportunity to bid. In fact, our another group company, Inox Clean, as you would know, which is an IPP business, is actively using the hybrid and the storage model to bid for the project.

Per se, Inox Wind getting into battery will never be the case. Yeah.

Thank you.

Okay. Thank you, sir.

I'm good from my end.

The framework agreement you spoke about in the initial remarks, will it revise your guidance upwards from FY26 onwards?

You see, let's first announce all those framework agreements that we are currently negotiating with our partners, and probably we'll come back to you later.

I'm hoping it will be upward revision, right, because I think I heard 1 GW annually during the opening remarks.

That's an obvious answer, yes.

Okay. Thanks.

Thank you everyone for joining today's call on Inox Wind and Inox Green, and I hope you have a very good weekend. Thank you again.

We'll see you in Q3. Thank you.