Inox Wind Limited (INOXWIND) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to INOX WENT and INOX Green Energy Services Ltd. Q4FI26 Earnings Conference Call hosted by GM Financial Institutional Securities. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on a touchstone phone. I now hand the conference over to Mr. Shudanshu Pencils.

Renewable power generation moves structurally from being a source of in-firm power to firm power. The ongoing geopolitical tensions have provided further tailwinds to the entire ecosystems of the renewable energy sector, right from equipment manufacturing to renewable power generation capacity. As you are aware, there is a strong push from the government to increase domestic manufacturing and reduce import dependencies. Anox GFL is extremely well-placed to benefit from and contribute towards achieving these goals. We are one of the most integrated players in energy transition in the country today. Given our strong presence in the entire value chain, right from manufacturing of wind turbines, solar cells, and modules and transformers, EPC including development of evacuation infrastructure, REIPP, and renewable energy O&M, We are also further backward integrating into power electronics in a big way. Inox GFL Renewable adopts one integrated strategy where virtuous cycles of interplay within group entities will add execution and revenues and the group synergies and business would help secure large growth and insulate some market cycles. We are pivoting Inox Wind to a new avatar that would address the challenges as well as put us on a path for a major transformation where two-thirds of the annual execution for the next four to five years will be from Inox Clean and CSC and the remaining one-third from other MarkoE customers. This would address the twin challenges of working capital cycle and revenue certainty. Our group company, Inox Clean Energy has a large capacity addition plan with a targeted capacity addition of 14 GW by FY29. It plans to add almost 3 GW plus capacity annually over the next few years. Out of this, about 20 to 30% is expected to be wind. This is expected to provide a virtuous cycle of continuous order inflows to the entire value chain of Inox Wind, IRSL and Inox.

Thanks, Kalash. Good evening, everyone. 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 road map, before handing over to my colleague Madhu for his briefing on the development at INOX Green. We are pleased to inform you that we have been able to deliver a strong quarter despite the prevailing geopolitical tensions. This has also led us to take certain strategic decisions to address these challenges. And we have now pivoted the company on a much stronger footing. I will briefly take you through some of the key details of INOX Wind financial performance for the quarter FY26. On a consolidated basis, INOX Wind has reported a revenue of 1306 crores flat YOY, EBITDA of Rs.333 crores, PPT of 216 crores, Pat of Rs. 106 crores, cash profit of Rs. 268 crores. The ongoing geopolitical issues have led to certain on-ground challenges and logistics issues in project execution. However, we continue to deliver strong margins supported by various initiatives which we have been undertaking in the past quarters, including our successful backward integrations into cranes and transformer manufacturing. As Kelash mentioned earlier, we are further backward integrating by 4A into power electronics in a big way. Coming to the order book, we continue to have a large and very well-diversified order book of 3.1 gigawatt. I repeat again, 3.1 gigawatt, having added almost 600 megawatt in this financial year, including orders from customers like Aditya Bidla, Gentari, Mplus, Jackson Green, First Energy and Leaf Green. I mean, these are few of them from a large order book. We expect to further add to this order book given that multiple customer negotiations are nearing closure. This provides us execution visibility of more than 24 months. Further, as mentioned earlier on this call, we expect to receive large reoccurring orders inflows from our group company Inox Clean Energies over the next few years. Our group company, IOX Clean Energy, plans to add 3 GW plus capacity annually over the next few years. Out of this, about 20-30% is expected to be wind. This would translate into almost one-third of our annual execution targets, also helping to improve the working capital cycle. As our base order book has large visibility, we are very selective in taking new external orders. The pivot towards taking orders from Marikyu customers and the increased shares of equipment supply in the overall order mix would help to significantly improve the working capital cycles. INOX Wind is well placed to benefit from the continued macro push-through towards renewables as well as from the interplay of group company synergies. The launch of our new 4.4 MW turbine is on track. And we expect to receive all approvals and subsequently commercial launch, launching the product within this calendar year. This is expected to help us penetrate deeper as well as lead to margin improvements. On the receivable fronts, there have been some challenges, especially in our PSU contracts where we have seen payment delays. However, we expect the receivables. Cycles to see significant improvement going forward, given our strategic pivot towards equipment supply orders going forward, as well as from an increase in the proportion of orders from group companies in the overall order book. Our order book has changed substantially over the past few years from being largely turnkey to now 50-50 turnkey in equipment supply currently, which we plan to further increase to 75% going forward. On Inox Green, our O&M subsidiary continues its strong growth trajectory, reaching more than 13 gigawatt plus p of wind and solar portfolio pan-India. With this strong growth prospects, Inox Green will be the largest renewable O&M company in India in the near future and is well-placed to become one of the largest globally by 2030. Further, the scheme of de-merger of INOX Green evacuation infrastructure business and its merger into INOX Renewable Solution has been approved by the Hannibal MCLT M. Davad. IRISL will be automatically listed on the stock exchange post-receipts of all the approvals. Additionally, as discussed earlier in the call, we expect INOX Green to be huge beneficiary. From the rapid growth across the REIPP and solar manufacturing under INOX Clean Energy, our group company, which has a large-scale expansion plans. In terms of the guidance for FY27, we expect our consolidated revenue to grow by around 75% over FY26, with EBITDA margin to 20-20%. I would now hand it over to Madhu Susan, CEO of INOX Green, for his remarks.

Good evening, everyone. I will firstly brief you on the financial achievements of Inofs Green during the quarter before moving to other aspects. During Q4 FY26, Inos Green reported, total income of Rs. 120 crores, up by 40% YORI, EBITDA of Rs. 57 crores, up by 93% year on year, profit before tax of Rs. 46 crores, up by 244% year on year, profit after tax of Rs. 28 crores, up by 340% year on year. Cash back of Rs.46 crores up by 327% year on year. Machine availability for the entire portfolio averaged approximately 96.5%. As we have maintained, a significant part of our profitability is currently being reported as other income as per the accounting norms. However, please note that these are operating in nature. Inox Green's portfolio stands at 13 plus gigawatt peak, comprising of approximately 10.5 gigawatt of wind assets and the balance being solar assets. This also includes the investment made to acquire 6.5 gigawatt of operational wind O&M assets of two companies. We expect to complete the acquisition soon. Consequent to which the consolidation of financials into INOX Green will result in a multifold increase in console EBITDA and PAT for FI27 over FI26. We believe INOX Green will be one of the biggest beneficiaries of the multidimensional growth coming from the annual capacity additions of 3 GW plus at our group company INOX Clean. External projects executed by INOX Wind along with inorganic growth. This is expected to establish INOX Green into one of the largest renewable wine drum companies globally. With all our investments formally folding into INOX Green's balance sheet along with organic growth, we maintain our FY27 EBITDA guidance to be upwards of Rs. 600 crores. We have recently seen success in offering WTG, means wind turbine overalls, slash we are offering life extension packages to customers, which will aid in increasing the life of the turbines and enhancing output. This business team has substantial potential for growth going ahead. Our reliability center has been extensively diligent in the process. At INOX Green, as part of our digital initiatives, we are also exploring the deployment of agent AIs across low-value added job profiles to enhance speed of execution and increase the margins and reduce manual dependencies. As part of the people strategy, our YUB program at INOX Learning Academy, currently we are generating almost highly skilled team of professionals of 600 annually to fuel our growth. We are also actively looking to hire AgniVees who are highly talented with strong passion to contribute this. Finally, I am pleased to inform our investors that the scheme of de-merger of the evacuation infrastructure business from INOX Green and its subsequent merger into INOX Renewable Solutions has been approved by Honorable NCLT Ahmedabad. With this, gross block of approximately 1000 crores has been eliminated from INOX B Green's balance sheet. And subsequently, the annual depreciation of rupees approximately 50 to 55 crores has been eliminated, thereby increasing the profitability. It has also led to significant improvement in ROE and ROCE of INOX Green. I would now like to hand over to Mr. Devans Jain, Executive Director, INOP GFL Group, for his closing remarks, after which we will open the floor for Q&A.

Good evening, everybody. Thanks, Mathu. I thank all our shareholders for their continued and unwavering support to all of our group companies. While Kailash, Sanjeev, and Mathu have taken it through the brief industry overview, financial, and operational performance of our companies, let me briefly touch upon some of the strategic initiatives that we have undertaken across the renewables vertical of the Ionoff GFL group. At the outset, I am 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. With a strong focus on execution of all our growth plans, I feel very confident that we are now on the cusp of a massive transformation. The interplay of group synergies would be our next engine of growth. The group's strategic foray into renewable IPP power generation and solar cell and module manufacturing under Ionox Clean with a three-continent play is a big game-changer and expected to create huge value across the group with our 10x3GW portfolio, basically 10GW of IPP, 10GW of solar cell, and 10GW of solar module over the next 15 months. Our latest venture, Ionox Clean, which houses both our solar manufacturing and renewable IPP businesses, is shaping up well and is the fastest in India to achieve about 2 gigawatts of installed capacity and also the fastest to reach 6 gigawatts of solar module along with 3 gigawatts of cell manufacturing capacity. This, I believe, is the most strategic fit in the group as it enhances the value of all our existing businesses. While IONOX Wind stands to gain through recurring orders over the next several years, IONOX Green also gains through the constant addition of capacities to its ONM portfolio. At IONOX Wind, all our strategic decisions related to backward and forward integration and the new avatar to reflect a higher mix of equipment supply have started to yield results. Further, iLogs Green will be the largest O&M company in India over the course of this year and is well-placed to become one of the largest globally by 2030. Thank you and we will now open the floor to Q&A.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vikas Agarwal, an individual investor. Please go ahead.

Yeah. Hi, team. Congratulations. It was a very good result. I just liked a few pointers from the management. Hello. Can I, am I audible?

Yes, you are.

Yeah, the assets which have been taken over by Inaus Green as an investment, can the management guide on the EBITDA profile or the margin profile on the same? Secondly, one of our peers in the wind segment, they are diverting from equipment to more of a turnkey. So, I would like to ask for a moment, why is the management, as in what is the view of the management in shifting their view from majorly to equipment supply, as in we understand that our management had a view and they had a large land bank, which can be translated as a move for the EPC business, I guess. So, and any guidance for the INOX green for FF27? Also, if the management would highlight, as in the wind segment strength against solar plus best, and we have the battery prices, and now that the FTRE projects are more focused on getting battery online. Thank you.

Because let me, this is Madhu, let me answer for INOX green first. So, your questions.

Financial Institutional Securities, thank you, and over to you, sir.

Thank you, Rutuja. Hello, everybody. On behalf of JM Financial, I welcome you all to the Q4 FY26 serving call of INOX Wind and INOX Green Energy Services. For today's call, we have with us leadership team of INOX, led by Shri Devan Jansar, Executive Director INOX GFL Group, and along with the senior management. Thank you so much, sir, for giving us the opportunity Thank you very much for hosting the call. Now I will hand over to Ms. Swirta Sultaniya for taking this call forward, over to you Swirta. Thank you.

Thank you, Dhanju. Good evening, everyone, and welcome to the quarter four of FI26 earnings call of INOX Wind and INOX Real Energy. As many of you may know already, I have recently joined INOX Wind as head investor relations. Let me introduce the management team of the call with us. So, we have Mr. Devan Chen, Executive Director, INOX GFL Group, Mr. Kailash Sarasandani, Group CEO, Renewables Business, INOX GFL Group, Mr. Sanjeev Agarwal, who is the CEO, INOX Wind, Mr. S.K. Madhu Sudhana, CEO, INOX Green, and Mr. Akin Jindal, Group CFO, INOX GFL Group, and we have other senior members of the management along with us. I would now like to hand over to Kailash for his opening remarks. Thank you.

Thanks, Shweta. Good evening, everyone, and thank you for joining the Q4-526 conference call of ANOX Wind Limited and ANOX Green Energy Services Limited. As you are aware, FY26 saw the highest ever wind power generation capacity addition of 6 gigawatt. Going forward, we expect to see strong annual wind capacity addition of 8 to 10 gigawatt over the next few years driven by RTC, FDRE, and hybrid capacity additions.

As we see the two acquisitions, which will roughly contribute a 50% EBITDA margin, because both are all the previous OEMs with the substations and all those evacuation systems. So this gives a similar EBITDA margin, which is roughly 50%. Second, for the projection of FI27, we have already guided it will be north of 600 crores. And let me hand over to Mr. Sanjeev for the question related to InoxClean.

Thank you so much, and probably Kelash can compliment me. So you asked this question to say why are we moving. So let me put it right. We are not moving out. One third of our capacity is now being filled up by our own group company, InoxClean. I mentioned that. So, with that large capacity being filled from clean and some select few customers that we will decide, we will make a decision of EPC, but predominantly, predominantly, the strategy going forward would be to do an equipment supply with majority of our capacity being reserved or available for either the jobs which are under execution or to Inox clean. which gives us almost one-third of the capacity.

Yeah, just to add to Sanjeev, I think we still believe that we are still, you know, quite capable and can do a lot of EPC projects, but it is just as a part of a strategy. What we see, lots of IPPs are doing, and it's part of risk mitigation. You know, we focus more on selected EPC projects and let IPPs, a lot of customers are there who are doing their own IPPs, their own projects, and we continue to limit our scope to equipment supply.

You know, I just wanted to add, you know, I think, Look, I think what is very important, we've been in Wynn now for literally 18 years, and historically it was imperative to do turnkey EPC. Over the past several years, we've realized the biggest pain point or the biggest working capital blockage happens by doing EPC and turnkey. And from our perspective, given the scale, size, and might of the entire energy transition play at the group, we wanted to eliminate the area which caused maximum pain. And to that extent, we have now pivoted towards almost 75 to 80 percent of our order book now being equipped with supply. It sounds easier than the actual effort which was put on the ground over the past 24 months. 24 months ago, 100 percent of our order book was turnkey. And over the past 24 months, we've completely turned this to now 75-80% being equipment supply. And mind you, these are very, very capable, strong parties. We also recognize that some of them may face challenges at some sites where we will come in and support them. In case of deletion sites, we already have such a large portfolio that we have the ability to interplay within those customers. But the fact of the matter remains that for us now, we basically wanted to ensure that we focus on large free cash flows just like Inox Green. Rather than spend too much time and effort of the entire management team on implementing 100-200 turbines, where people delay payments and so on and so forth. Also, what we are doing is, from the perspective of INOX renewable solutions, the larger EPCM, where we have multi-gigawatts of project infrastructure and capabilities, we are moving into high-value-added services. And high-value margin products. So, for example, cranes have moved in-house. Half of them are in-house. Another couple of cranes will come in over the course of this year, where all crane businesses will be literally in-house. Second, we started with our power transformers last year. We have ramped that up to a certain capacity. Over the course of this year, we will elucidate further plans because we are looking at expanding into power electronics in a major way, given the massive requirement of transformers, large transformers, small transformers, solar transformers, inverters, power electronics, ECS systems across the entire ecosystem. Of course, we will share more details on that in the months to come, but that's how we're focusing on higher margin and assets which can generate far more liquidity with no blockage of working capital.

Sorry to interrupt. May we request Mr. Agarwal to please rejoin the queue. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, we request you to please submit your question to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Breit Nagar Seth from Wealth Finverser. Please go ahead.

Yes, hi. This question is for IMOX Green. So, you mentioned 600 crores of EBITDA for the following for FI27. Now, if I do the math, so I'm basically getting, say, the closing capacity for FI26, say, somewhere around 3.5 gigawatts. Um, for FY27 you will be executing the full, uh, 75% additional capacity, but. For the full year, maybe one can look at, say, getting a part of that into the calculation. The acquisition of 4.5 gigawatt is still on waiting for NCLT clearances, right, if I'm not wrong. And the additional 2 gigawatt of acquisition is also waiting for more clearances. So, how are you getting to the 600 crore run rate? Is that based on the Cotter 4 number for FY27, or are you expecting this to start coming from Cotter 1 itself?

So, first and foremost, with respect to INOX wind zone's capacity, Marthu will take you through, I'll probably just step in on the acquisitions. As you may be aware, both the companies are, we control the COC across the companies. And investments into them are majorly owned by us. Having said that, with respect to Entity 1, the order is reserved. In the next couple of weeks, once that order is out, all the accrues of that company from the date of taking over that asset belong to us. So whether it gets reflected in Q1 or Q2, all the revenues, all the profitability of that company will accrue over the course of the full financial year. Second, with respect to the second entity which we've controlled, which we acquired, it's in the final phases of EOIs and submissions, so I would expect over the next 60 to 90 days, that would also see light of day. Over the course of FY27, while it's very difficult to give you a specific timeline, whether it's going to be June or May or July or August, when it will get merged into our entity, but effectively over FY27, both these entities will be part of Ionox Green, and the revenues and the profitability of these entities from 1 April 26 will be reflected in the consolidated results of Ionox Green.

Okay. Well, thank you Devans. That was very useful. And if, if, sorry, some, if someone can give me the sense how much to consider for the win side.

So, actually, his

question was, I think we're at 3.5. How do they reconcile it? I mean, what capacity are they setting up? I think it's about 5 gigawatt what we've taken over the course of the full production. Inox Wind.

So, right now, currently, Inox Wind has approximately 3.5 Gigawatt, and four and half from one of the company, and two from another company, and organically, we are adding a Gigawatt and half. So, that puts more than 11 Gigawatt. And this makes EBITDA more than 600, along with 2-3 gigawatt of solar and a few acquisitions also in the place. Other than that, it is not only per megawatt thing, which I already explained in the last time also. We have value-added services which give a lot of extra EBITDA margins. So that will make us to the north of 600 comfortably.

Got you. My second question was regarding, could we get a sense of the top line and the EBITDA profile for the INOX renewable business, given that the de-merger dates will be announced?

We cannot say that at this point in time. I think once it's de-merged, we'll elucidate more plans. At this point in time, it's part and parcel of INOX. Once it's de-merged, we'll elucidate our plans on that.

Sorry to interrupt. May I request Mr. Preeto to please rejoin the queue? Thank you. The next question is from the line of Prateek Jent from ICICI Prudential Asset Management. Please go ahead.

Can I order it?

Yes, you are. Please go ahead.

Yeah. Thanks for taking my question. Just go ahead a couple of questions. First and on the working capital day, so the last call after Q3 results. So we were quite confident of achieving next working capital days of about 200 days. So just wanted to check where do we stand on that as of Q4N and checking this regarding our execution. So I know that last quarter we have moved away from basically megawatt guidance to revenue guidance, but we started initially with 200 megawatts for the entire year of F525. So, just wanted to get a sense of how much were we able to execute, either in megawatt terms or in INR terms broadly. Thanks.

Yeah, hi. So, as we have communicated on the last call, we are not giving any megawatt specific guidances. We are driven by the revenue, keeping in with the contract which we are entering into, different kinds of contract we are entering into. We have achieved 4,500 crore rupees of topline and as far as guidance is concerned, we have even 75% of the guidance for the next year across all parameters, revenue, EBITDA, as well as PAT numbers. In terms of the working capital cycle, you know, there are various, you know, macro level issues which has been happening, including oversupply chain disruption which has been happening due to the ECS, which is one of the major components, needs to come from, you know, needs to come, which has been got struck, which has been, the supply has been delayed, though we have covered up to a certain extent in quarter one. And, you know, in overall scheme of things, you know, as against the guidelines of 5,000 crore rupees, which we have given in the last call, we have achieved 4,600 crore rupees, and this 400 crore rupees of makeover will happen in a quarter one, quarter two title.

This was due to the external factors not on our end, so whatever steps we have taken to improve that, and we have elucidated in our presentation as well the strategy going forward. So everything that we are doing is to improve the working capital cycle, and you would see, it would reflect in the next numbers that we publish, that these numbers fall off sharply from here on.

Let me come in. I mentioned in my speech that the geopolitical issues created a bit of a setback for us in the quarter. The main component which has to come from outside of India, ECAS, that got delayed. It has to come through a ship. Then we have issues on commodity going up. So those things impacted our overall revenue, but these are things of the past. We would see, we expect that the guidance given now on a 70 to 75 percent increase from the year just completed.

And it has been very marginal in the sense that we have achieved quite a bit, almost, more than 90% of it in spite of so many challenges in the world. But overall, I think as we speak in quarter one, most of these issues are solved and we are going full speed in execution.

You also mentioned about the PSU contract which created a bit of an issue in terms of revenue. So that is also over now. Full steam ahead now on that project as well. Thank you.

Thank you for coming.

Thank you. The next question is from the line of Tatek Giri from Shubhlav Research. Please go ahead.

Hi, greetings. I hope I'm audible. Sanjeev, my first question is regarding the execution of order work. So for the past two, three quarters, we have been listening about... I just wanted to get your sense on how are things looking now. Is it addressed to an extent or are we still facing those challenges?

Thank you so much. So, just to give you a sense, again, let me reiterate, I said in my speech that we are pivoting towards equipment supply. More and more, the backlog today, I would say 50% is the backlog today with equipment supply. And this would, going forward, may be going up to even more than 75%. Coming to the jobs in execution, we hope with the present execution strategy that we have, by H1, majority of our EPC project would be over. Other than one leading job in execution, majority of our EPCs would be closed, completed, waiting for statutory compliances to get into a commissioning board.

I get that. I get it. Just some follow up on this. So probably we have reported 3.1 gigawatt of order book in the investor presentation. How much of that order book is from the group company Ainox clean, Sanjeev?

Presently zero. So, from the IONOX clean limit, it is around 500 MW, which is unexecuted. So, you can consider broadly 60% of the IONOX clean. I am sorry.

I thought we were talking about looking forward. Because I said in the statement for the year, which is in execution now, we expect one-third of our capacity to filter by IONOX clean. But for the present 3.1, it has close to 500 MW We have a lot of executions, still chrome. I don't think.

Got it. Got it. My last question is to Devanch. Devanch, I'm sure, you know, you have looked at the company's state affairs for the past many years, and I'm sure the kind of value disruption that has happened in last one year is, is concernable. So I am sure, Devanch, the strategy which you are alluding now, and your team which is alluding now, I think would certainly, you know, work in the favor of minority shareholders.

Yeah, I'm happy to hear your comments, but I hope you do recognize that over the past four years, we've got a virtually zero value company to massive value. We've spun off Ionox Green, which has created tremendous value. We're on the verge of demerging Ionox Renewable Solutions, which we hope will create tremendous value. I am not too bothered about short-term aberrations in stock markets. We are here to create long-term value. We are here to create long-term businesses. Market cap going up now is not something which bothers me, worries me, as long as we are doing our best. And I think the value creation we are doing at INOXCLEAN, where we've raised close to $750 million at a couple of billion dollars of valuation, plus the might of INOXCLEAN, both on the IPP side and the solar side, and GFCLEV in the best side. I think the play that we now have in which Ionox Wind and Ionox Green are part of the Ionox GFL Renewable One strategy, I think we're probably on track to be amongst the top three energy transition conglomerates in the country. And that value, my friend, would be in billions. So short-term values are something which I'm worried about.

No, certainly, Devansh. There are arguments on both sides. I don't want to sound argumentative, but I hope what you're saying will come out true. You know, this billions of dollars we have seen in the last two years probably has not materialized for shareholders, but I get your point. Thank you. Good luck.

I went to disagree. I think our entire renewable arm today is valued north of 10 billion. So I'm not sure what you're talking about. But like I said, I am not bothered about short-term aberrations in terms of market cap. Again, shareholders across IMOX Wind Energy Limited. We have been rewarded tremendously. That was something which as promoters we would have avoided because we had better control and more control on Inox Wind. But it was our commitment to take care of minority shareholders that we went ahead with the merger of IWL into IWL. So across investors that I made, people have tremendously grained across our group. Having said that, I reiterate short-term aberrations or short-term challenges. Do not deter us from achieving the larger ambition and vision of the group.

Thank you. The next question is from the line of Deepa Podha from Sapphire Capital. Please go ahead.

Am I audible, sir? Yes, sir. Okay, so I just wanted to check this Fi26, what was our execution in terms of Megawatt?

So yeah, hi, so as we have given multiple times that we are not driven by the megawatt execution, megawatt supplied, it is all about the revenue, revenue numbers, beams, the kind of different kind of a contracts we are entering into, it doesn't make too much of a sense to, you know, tell specific megawattages. Hence, the revenue guidance which we have given, we are driven by revenue and broadly where we are in terms of...

Yeah, so I was not asking for the forward-looking, so that you mentioned that you are not giving in terms of make-out. I was asking actual execution in FY26.

That is the number that we have refrained from giving. That's what I stated policy last time, so probably we'll refrain it again. It's a revenue that we have been giving out, both for historical as well as forward.

Fair point. And in terms of equipment supply, I mean, we have been transitioning from, I mean, So, what does that mean for margins? I mean, now 70-80% of your order book is in equipment supply. So, your margin will have an upward kicker because of that? I mean, how should one look at margins because of this?

We have said that we have already given the guidance in presentation also, that we are looking to go only north of around 20% or higher, not below that. So, you know, it's not actually impacting so much on the margin as we move on the equipment supply.

So, it's similar, right? I've seen that guidance.

It's more or less similar or higher only, not going south because of it.

But, you know, as O&M increases, O&M is 50% margin business for us. So, to that extent, there will be a bias for a higher. I imagine you.

Correct. But ideally, I would have thought transitioning from turnkey to equipment supply would help your margins, right? I mean, it's because ideally your equipment supply would have better margins as compared to the entire turnkey.

There are pros and cons. When you do turnkey EPC, yes, sometimes you get better price, but at the same time, risk slowly, some of those margins get eroded when your land gets cost goes up or 220, you know, ROW cost goes up. But equipment supply is a very firm kind of those things. You have today a lot of control with the steel prices being passed on, many of those things. And at the same time, these are very simple on LC terms mostly, so that you get the cash flow up front. So that way, margin doesn't get eroded with the delay in payments or with the different kind of cost or risk which is coming up during the execution of EPC.

Okay, understood. And what's your O&M revenue mix and this year's order inflow target? Those were my last two questions. O&M revenue mix right now and FI27 order inflow target?

The revenue mix right now broadly is about 10% was O&M, 90% was Ionoxwind. I think going forward as the entire consolidated mind of the two acquisitions comes through. I think OAN will possibly be moving towards about 20%, 18% to 20%. I don't think we have order inflow targets, like I said, and like Sanjeev said, we're already sitting on a 3.1-yard platform. There's a very large usability from InoxClean. So, frankly speaking, you know, if our revenue guidance is 75% growth on 4,500, it takes to about 7,500 crores. I think we're sold out for the next one and a half years in terms of what our overall ambitions are.

Okay, I understand. Okay, okay, that's very clear. That's it from my side. Wish you all the best. Thank you.

Thank you. Ladies and gentlemen, we would request you to please limit your question to Jhoopa Participant. The next question is from the line of Rahul Kumar from Vitalia Fund. Please go ahead.

Am I audible? Yes. Can you explain this other income in the green of 50.8 crore, how much of that is, let's say, related to the assets you're going to acquire, how much of income is there from treasury because you have a lot of cash and equivalent also on a balance sheet, and how much of it is from these value-added services which you consider as a part of core income?

Yeah, hi. So, majority of the other income which you are seeing in our PNL statement related to the debt which we have acquired for our two strategic acquisitions. There are 13 value addition services as well which we need to classify as other income under INDAS. Treasury income is a small component, so quarterly which will give you a broad break-up of 61, it is around 40 crore which is coming from the two strategic acquisitions, which we are going to do broadly 10 crore rupees from the value addition services and 10 crore is broadly towards the treasury income which we have earned.

40, 10, 10, that means 60 crore.

Yeah, for the quarter four.

A quarter of four, other income is only 50.8 crores.

I am talking about the consolidated numbers, which you see if it is 61 odd crores, please.

Got it. Second question I have is that your revenue from operation in green came down from 82 crores to 69 crores. What was the reason for that, quarter over quarter?

Sorry, come again.

If you look at your green revenue, They have come down from 82 crore in Q3 to around 69 crore in Q3.

So, in terms of the iron of green, you know, it has, you know, quarter on quarter plus minuses can happen, you know, little bit of the amount. If you see the quarter three numbers, it's around 78 crore vis-a-vis 69 crore rupees in the current quarter. So, you know, broadly 8-9 crore rupees due to the some value addition services can happen on a quarter on quarter basis, but we need to see the annualised number, which is in line with our expectation and as per the guidance which we have given.

Okay. This 40 crore acquisition-related income, if we exclude, then our EBITDA would be much lower. Is there any cost associated with this 40 crore acquisition-related income which you are incurring today?

So, to be very frank, no. As such, 40 crore rupees is pure income, net of the deferred tax. So, in a bad statement, it's just coming somewhere around 25-26 crore rupees.

Okay, then why our core profitability is so low? If I exclude the tuition-related income and profits, then our core margin looks lower. Why is that?

So, basically, you know, it is not low. As far as the EBITDA margin is concerned, we are always 50 odd percent, you know, which we have dragged. It is about, you know, quarter on quarter. You are comparing quarter on quarter basis. It can be looked low, a little bit high. But, you know, on an annualized basis, if you see, out of the 420 crore rupees of the 426 crore rupees of the turnover, which we have achieved, we have achieved 210 crore rupees of EBITDA margin, which is around 50 odd percent. Okay, the annual basis,

if you were to exclude the tuition-related income and profits, then your margins would be still lower, right?

It would be at about 45%. So, we can't, I mean, broadly we look at 50%, otherwise the treasury income, the capital line in the company would have been earning interest as well, which would be part of other income, or would have been deployed in other measures to increase profitability. So, you can exclude 600 crores of investments made to buy companies and say, let's exclude 40 crores of earnings on that 600 crores of investment.

Sorry to interrupt. Mr. Kumar, may we request you to please rejoin the queue? Thank you. The next question is from the line of Ujwal from A&R Capital.

Please go ahead. Mr. Ushwal, please go ahead with the question.

Your line is unmuted.

Hello, I'm audible?

Yes, you are. Please go ahead.

Yeah, I just had a very straightforward question. Actually, I've been following the company for quite a while. And my main concern was that we have constantly been over committing and under delivering. Whenever it has come to a lot of the metrics, whenever it was like first we guided on megawatts, then we changed the entire metric and said that we will be guiding on revenue terms. Then even that we have not been able to achieve that. And for short, if we look at the quarter four performance. There have been decline, why? And when I look at our peers, they are doing upwards of 40% growth. So I just want to understand what is the reason for this?

Look, I think first and foremost, what we need to look at, what has the company achieved over the past four years? I beg to disagree completely on the fact that we have failed miserably in achieving targets which we've been giving quarter on quarter. I think for three to four straight years, we've achieved every single target. Our EBITDA targets every quarter are beaten. Our revenue guidances have been upgraded consistently over the past couple of years. Yes, over the course of this year, we've faced certain challenges. Even when we shifted over to a revenue guidance and guided for 5,000 crores in the last quarter, it was subject to force majeure. I don't think you or I would have known there would be a world war kind of a situation where ships don't come in, where ports don't clear materials, where customers hold back payments. I think what is important is how strong the company is, what pivot we've created, what strategy we are implementing, and I think to that extent, if you look at the three verticals on which Ionox Wind is built, I think we have a very strong diversified external order book. We now have Ionox Wind, which is a multi-billion dollar play where we raise capital at billions of dollars. We are the fastest IPP in the country, the fastest growing solar player globally. That adds a lot to Ionox Wind and Ionox renewables. Incrementally going forward, Inox Green itself has acquired two of the top five erstwhile wind players, two of whom also went bankrupt. Frankly, we are the only player in India who survived without a single rupee of Haikat. The only other competitor you talk about survived the $3 billion of Haikat. So I think there are multiple successes. There have been some failures. We acknowledge and accept that. And I think to that extent, the strategy which Kailash, Sanjeev and Mathu have laid out is something which we think is in the best interest of the company. We've also completely turned around the company by moving from 100% turnkey now to 25% turnkey within a period of two years. It sounds easier. This is why you are competing with everybody because turnkey you can have all in-house. But we think this is the right strategy for the company because that ensures longevity of the business, ensures significant free cash flow, and it ensures no working capital blockage, as we see in our solar business and as we see with various other solar manufacturers. So yes, what also has to be seen is one or two quarters does not derive what we have achieved successfully over the past four years.

Got it, got it. Ultimately, my intention is to say that I also want the company to succeed because I'm an investor for a long time. And I just had one last question. How optimistic is our guidance for FI27 when we are looking at 75% growth that we are saying right now? Is it on a very optimistic side that we are targeting it or we are saying this on a conservative basis? Given the fact of, like, few of the quarters that we have not done well, which side are we on when we are guiding 75%?

I think we were on the side of conservatism while doing this. Having said that, if there's a world war or if there's a COVID lockdown, then don't hold us responsible for it.

So, let's interrupt. May we request Mr. Jal to please rejoin the queue? Thank you. The next question is from the line of Pradeep Murtwani from Murtwani's. Please go ahead.

Good morning, sir. I'm going to call it for results. I'm going to call it for the green energy. Can I call it audible? Can I call it audible?

Please call it.

I'm going to call it for the green energy. So it's a little bit. So, Anthony. This will create the unlocking value for shareholders, minor shareholders.

So, demurger has already been approved by the NCLT. Now, the kind of administrative process is going forward. So, demurger is approved. Now, the NCLT is the administrative process that is going on. So, broadly, in the next one or two months, it will get completed. Should get completed, depending upon the administrative approvals, if any, if we require it.

Okay, sir. Thank you very much for your questions. And for future, we are a long-term minister for companies. Thank you very much.

Thank you. The next question is from the line of Prith Nagar Sage from Wealth Inviso. Please go ahead.

Yes, I had one question regarding the dividend policy or anything like that, not for IMAX 3, given that it's now starting to raise very significant cash. Could I speak louder? Yeah, could I speak? Can I audible?

Yes, you are.

Okay. My question is regarding dividend for Inox Green, given that the full-year cashback was 158 crore and we are expecting 600 crores of EBITDA or cashback for next year. Are we looking at some kind of policy to be put in place?

Let the consolidation of the two companies happen. Once that happens, I am sure the board in all its wisdom will put in place a dividend policy.

Thank you. The next question is from the line of Utkar Sumeya from Myco Quantum Solutions Private Limited. Please go ahead.

Thank you for the opportunity. From this 600-core EBITDA that you expect to generate, how much will that convert into operating cash flow?

So, out of 600 crore rupees, broadly, everything will be converted into the operating cash flow, as such, there is no depreciation, no finance cost, and we have a tax shield up to 700 crore rupees of losses. So, next financial year, you know, this is all cash flows which will be generated for Ion of Green share holders.

You mean operating cash flow, right? Not cash profit. The two are different.

Operating cash profit.

And, Anah, what do you expect? What are you going to do with the 600 crore of cash next year? How are you going to deploy it?

Let's look at that coming in first, and then we look at further acquisition opportunities. I'm sure you're aware. Ionofzine has had almost 9 or 10 acquisitions in the past couple of months. Even in Ionofzine, we went on to acquire two of the top four first-while OEMs, which went bankrupt in India. So, I think let's get to that scale, and then we'll see how to deploy that capital.

But is it fair to assume that most of it will be used for acquisitions?

I don't think there are so many acquisition opportunities, honestly, in India. We've really consolidated the sector. Out of five players, two are alive, three are bankrupt. Out of the three which went bankrupt, two we've acquired. There's only one odd left who doesn't control common infra himself. So, frankly speaking, there are limited acquisition opportunities now. I know Mathu and the team have a couple of gigawatts lined up, which I don't think should cost us more than 10-20% of the free cash flow that we have. But we need to see what we'll do with that cash flow. First, let's get both these two companies integrated into Ionok's screen.

But what are the conversations going on with the board? Is it going to be a flyback?

It will be not at this point, but let us all assure to everyone that this will be done in the interest of shareholders. Thank you. Thank you.

Thank you. The next question is from the line of Atul Jhobi from Prosperity Wealth Management. Please go ahead.

Hello, sir. Am I audible? Hello?

Yes, you are. Yes, you are. Please go ahead.

Yeah. Sir, my question is on Inox wind. So, when I look into the expenses side, the ETC and operation and maintenance expenses have seen a significant increase here on here, while the cost of materials have seen a decline. So, can you give more color on it? You are not audible.

Can you please read your question and read slow, please?

So, my question is on ion oxygen. So, when I look into the expenses part, so, the EPC and operation and maintenance expenses have seen a significant increase year-on-year, while the cost of materials consumed have seen a decline year-on-year. So, can it give you more info on it?

Well, it is not like, you know, the different component needs to be seen differently, you know, it is a kind of a consolidated numbers, you know, because there is certain change in inventory, certain EPC costs, you know, purchase of stock materials, so it is a combination of that. So costs are calculated accordingly. So don't go by line by line, it needs to be seen in a totality, and we are in line with our margins and numbers which we have guided for.

And this is totally linked with the, you know, it is totally linked with the change in sales list also. Earlier sales were, components were different now, the sales is different, so let's try.

We cannot match it one-on-one.

Okay. Thank you.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.

Thank you very much for your time for the call today. I wish you good evening and have a good week. Thank you. Thank you.

Thank you. Ladies and gentlemen, on behalf of GM Financial Incidential Securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.