Inox Wind Q4 FY26 Results (NSE: INOXWIND)
Signal: Revenue declined
The read
Q4FY26 standalone revenue declined 10.5% YoY — a sharp reversal from prior quarters' >30% growth — with EBITDA margin contracting 256bps to 16.5% as fixed costs rose despite falling sales. Full-year PAT grew 42.6% but was overshadowed by severely negative operating cash flow (₹-697 Cr) and a surge in receivables days to 363. The rights issue provided equity but diluted EPS growth. Auditors flagged material uncertainty around SPV investments.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,151.46 Cr | -10.5% | +6.4% |
| EBIT | ₹173.7 Cr | -24.7% | |
| Net profit | ₹87.55 Cr | -53.8% | |
| EPS | ₹0.51 | -56.0% | |
| EBIT margin | 16.5% |
P&L walk
Revenue declined 10.5% YoY; gross margin contracted ~92bps but the bigger impact was operating deleverage: employee cost rose 11.4% and other expenses rose 2.4% despite lower revenue, causing EBITDA margin to contract 256bps and PAT to drop 53.8%.
Key positives
- Full-year PAT increased 42.6% to ₹547 Cr, driven by strong operating performance in first three quarters.
- FY EBITDA margin expanded 560bps to 24.5% from 18.9% in FY25, reflecting improved cost management over the full year.
- Rights issue of ~₹1,250 Cr strengthened equity base and reduced net debt marginally.
Key concerns
- Q4FY26 revenue declined 10.5% YoY, first quarterly drop in over two years, breaking the growth streak.
- EBITDA margin contracted 256bps YoY to 16.5% due to negative operating leverage (fixed costs rose while revenue fell).
- Operating cash flow deeply negative at ₹(697) Cr, driven by huge working capital build (trade receivables +54%, inventories +66%).
- Trade receivables days surged to 363 from 263, indicating serious collection/payment issues.
- Auditor emphasis of matter on 6 SPVs: project extension rejected, bank guarantees invoked, appeal pending – exposure of ₹5,578 lakh in bank guarantees plus ICDs.
- EPS growth (36.9%) lagged PAT growth (42.6%) due to equity dilution from rights issue.
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