Inox Wind Limited (INOXWIND) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the INOX Wind Ltd. and INOX Green Energy Services Ltd. Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Vikram Tatwani from Novama Institutional Equities. Thank you, and over to you, sir.

Thank you. Good evening, everyone. On behalf of Novama Institutional Equities, I welcome you all to the Q1 FY27 results conference call of INOX Wind Ltd. and INOX Green Energy Services Ltd. We are joined today by Mr. Devan Jain, Executive Director, INOX GFL Group, Mr. Achil Jindal, Group CFO, INOX GFL Group, Mr. Sanjeev Agarwal, CEO, INOX Wind, Mr. S.K. Mathu Sudhana, CEO, INOX Green, and other senior members of the management. I would now like to hand over the call to Mr. Sanjeev Agarwal for his opening remarks. Thank you, and over to you, sir.

Hey, thanks, Mikram. 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 roadmap, before handing it over to Madhu for his briefing on the development at IONOX Green. I am pleased to inform, in quarter 1 FY27, on a console basis, IONOX Wind has reported a revenue of 872 crores, adjusted EBITDA of Rs. 237 crores, PBT of Rs. 95 crores, PAT of Rs. 64 crores, And cash profit of Rs 153 crores. As per our strategic initiative undertaken in the previous quarters, where we have pivoted towards increasing the share of equipment supply in our order mix, we are pleased to inform you that we are making steady progress towards this. Our operations are showing resilience post this pivot. This initiative would help achieve a healthy balance sheet as well as a financial robustness. The strategy is expected to yield long-term benefits and reflect meaningfully in the financials Q3 onwards. As of July 26, the share of equipment supply in our order books stood at approximately 59%, with the balance 40% being turnkey. This excludes orders received from INOX GFL Group entities and is only for orders received from the third-party entities. The virtuous cycle of interplay with INOX GFL group entities is playing out well. The growth at our group company, INOX Clean, will lead to a larger order for INOX Wind, INOX Green, as well as INOX Renewable Solutions. INOX Clean has plans to set up 3 GW plus capacity of IPP portfolio every year. We are pleased to inform you that Inox Wind has signed an MOU for 1.5 Giga Watt, I will repeat again, 1.5 Giga Watt with Inox Clean Energy in June, out of which firm orders have been signed for 500 MW so far. Firm orders for the balance 1 Giga Watt would be signed in due course of time. In another positive deployment in the first quarter, we have received an LOA for 200MW from NLC India. This is a repeat order from NLC in the month of July through an extensive tendering process. With these, our order book stands at approximately 4.4 gigawatt. Just to repeat again, an order backlog of 4.4 gigawatt as on July 2026. This provides us a clear execution visibility for more than 24 to 36 months. We are strongly placed with all our customers, including CNI, PSU, IPP, CAPTIV, i.e. GFL, and retail. Many more tenders as well as negotiations are underway, and we are confident of securing more orders this year. Further, we have a visibility of receiving large recurring orders from Inox Clean Energy over the next few years, as I mentioned before. With respect to our 4X wind turbine model, execution is progressing well. The foundation work has been completed. The tower and other main components are ready. We are on track to install the first prototype in the month of August, with commercial launch expected by end of FY26. Our expansion plan, and I would like everyone to hear this with open eyes and ears, our expansion plans in INOX Renewable Solution Limited are also progressing well. Our operational Jaipur transformer factory is gearing up to manufacture our next bigger capacity, which is 4.9 MVA transformers for our 4X series. We also plan to further increase our TRAFO manufacturing capacity and Including a medium-sized Trafos between 8 to 20 MVA, as well as large Transformers, which is 100 MVA+. We also own our own fleet of cranes. Presently, we have four of them in operations, and more to come in within this financial year. Besides transformers, we plan to manufacture high-value-added and high-margin-powered electronic systems, such as inverters. Unit substations and energy capacitor systems which is used in our wind turbines. Our USS is expected to be commercially launched in FY27. All these investments have relative short payback periods and will lead to revenue and margin expansions in IARSL. Further, the deburther of the power evacuation infrastructure from Inox Green into Inox Renewable Solution has been completed. As on August 1, 2026, being the record date, IERSL would now be automatically listed on the stock exchange post-receipt of regulatory approvals. Coming to INOX Green, we have received the approval from Honorable NCLT Ahmedabad for the acquisition of Windward India Limited. The acquisition formalities are expected to be completed in Q2 FY27. This is a milestone transaction in the renewal space, one where we expect to rely significant business synergies as we integrate the acquired business post-completion of the acquisition process. We shall provide further updates on this in our next analyst call. As of June 2026, our O&M portfolio stands at 13.3 gigawatt, including investment made. The wind industry continues to show excellent traction driven by macro tailwinds with 1.4GW Wind Capacity Commission in India in Q1 FY27. The total installed wind capacity stood at 57.4GW as on June 2026. We expect to see strong annual wind capacity additions. Ranging between 8 to 10 gigawatt over the next few years driven by RTC, FDRI, and hybrid capacity additions. In fact, out of the total renewable capacity of 9.34 gigawatt awarded through tenders in quarter one, 2.35 gigawatt, that is 25%, comprised of stand-alone wind tenders alone. The installed wind capacity in India Power demand is expected to be 7x the current capacity in the next two decades. Power demands continue to remain strong and it is worth noting that power demand in the first four months of FY27 so far has been the highest by far in the last four years. Inox Wind is well placed to benefit from the continued macro push towards renewal as well as for the interplay of group company synergies. I would like to hand it over to Madhu for his remarks on INOX Green. Madhu, over to you.

Thanks, Sanjeev. Good evening, everyone. Hope I am audible. Go ahead.

Please go ahead.

I will firstly brief you on the financial achievements of INOX Green during the quarter before moving to other aspects. During Q1 FY27, INOX Green reported, Total income of Rs.101 crores up by 17% year-on-year. EBITDA of Rs.57 crores up by 19% year-on-year. Profit before tax of Rs.54 crores up by 74% year-on-year. Profit after tax of Rs.41 crores up by 86% year-on-year. Cashback of Rs. 55 crores up by 25% year-on-year. Mission availability for the entire portfolio averaged approximately 96.3%. The operations continue to do well and have shown continuous improvements driven by large investments and expenditures incurred in the previous year to improve the entire infrastructure. A significant portion of operating revenues are being generated through value-added services such as Turbine overalls, life extension activities, etc. However, as per the accounting norms, they are clubbed as other income, while they are operating in nature. Inox Green's portfolio stood at approximately 13.3 GW peak as on June 2026, comprising of approximately 10.5 GW of wind operating assets and the balance being solar assets. This also includes the investments made to acquire approximately 6.5 gigawatts of operational wind ointom assets, including Windworld India and one other company. As mentioned by Sanjeev earlier, we are pleased to inform you that we have received the approval from Honorable NCLT, Ahmedabad, for the acquisition of Windworld India Limited. The acquisition's formalities are expected to be completed in Q2 FY27, post which the financial consolidation will take place. This is a huge milestone in the journey of Inox Green and a value-accreditive transaction for all shareholders. We believe there is a significant scope to bring in operational efficiencies in the acquired portfolio through enhanced service offerings, price and cost optimization. Windworld India's O&M portfolio stands at nearly 4.5 gigawatt, servicing a market client base that includes Tata, Renew, Greenco Group, Aprava, Hindustan Ring, among others. The assets are spread across key wind-rich states, including Karnataka, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, MP, and Andhra Pradesh. The portfolio generated revenue of approximately 580 crores in FI26 and the benefits from contracted annual price escalations of approximately 5%. The integration efforts are underway. We shall provide further updates on this in our next terming call. We expect our other investments to be also completed in FI27 and to be consolidated in our financials. Besides our inorganic efforts, we believe INOX Green will be one of the biggest beneficiaries of the group coming from the annual capacity additions of approximately 3 GW plus at our group company INOX Clean and external projects executed by INOX Wind. So, this is expected to establish INOX Green into one of the largest renewable windm companies globally. We continue to see success in offering WTG or that is wind turbine overall. And life extension packages to customers, which aids in increasing the life of the turbines and enhancing output. Globally, the life extension of wind turbine has been taken up to 35 years. So typically, every turbine runs at 25 years as a normal standard, but we are intending to increase the life up to 35 years. So, this business team has substantial potential for growth ahead. We expect to offer this service to much of the existing fleet of Windworld India and O-Indam business as well. Further, as mentioned earlier by Sanjeev, we are pleased to inform you that the de-merger of the power evacuation infrastructure from INOF Green into INOF Renewable Solutions has been completed as on August 1, 2026. As a result of this demerger, Inox Green is now an asset-like O&M player with significant improvement in ROE and ROCE metrics. We will now open the floor for Q&A. Thank you very much.

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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets 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 Vikash Agarwal, an individual investor. Please go ahead.

Yeah, I am audible.

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

Yeah, I will. Congratulations team for a great result. I will just bunch up whatever I want to ask so that it can be done fast. I just want to ask, what is the reason for the fundraise at the present acquisitions that we have? We understood that those acquisitions were funded by the previous potential issues that we had made. And also, I would like to know management view. I mean, I know Green is a healthy cash generating entity. And wouldn't it better if we raised debt in debt and cleared the sale from the short cash flow rather than equity dilution? Also, we can have a management comment on benefits from the new ALMM rule that could be seen and wind versus solar plus battery. And also, competitors are introducing five megawatt products and we are...

I think let's limit to a couple of questions because we'll miss whatever questions you're asking. On your first question is on iNov screen, I guess. These are enabling resolutions we have done. Beyond that, we cannot comment right now as we're in the silent period.

Okay, sir. Thank you.

Let me also come in. There was a question about introduction of higher models of wind. Gentlemen, I said in our statement that 4X, our 4X model of wind turbine, the new one, would be up in operation in August with a commercial activity starting a month later. As we see this progressing well, we are also contemplating looking at higher models if the demand be there in the market. We believe our Forex model would outclass... The wind turbines in this category. Thank you.

And, sir, could we just comment on the benefit of AALM that is going to be introduced and when could we see the impact of this day?

I'll talk about the wind. As we speak to you, almost 80 to 90 percent of the components that goes in wind turbine for us are all indigenized. The ALM will bring the story for people who do not do this in India. But for us, this was an advantage to start with and it will remain. The balance 10% is low-lying. We are already active into the job of converting that into Indian week. Before end of the calendar year, we hope that we are almost 100% on wind turbines. And I'm talking not only for our 3X model, but even for the 4X model. Thank you.

Sir, I'm just asking that this will benefit us, right? So, when can we see the impact of the benefits on the thing? As in, we know that we are getting indemnised and we were well prepared for it in advance. So, when can we see the impact and also, if you could comment a little bit on wind versus solar first battery and how is the outlook and...

Let's restrict it to the wind story for a moment. You know, I don't want to talk about what would other do, but we think this would give us a span of at least three years where this Indigeneration story that we've initiated, you know, there were a lot of talk, a lot of investors who said earlier, why are you putting so much of our money, so much of our capex in making everything in India? But probably we thought this is a very, very strategic initiative to be relying on our own capabilities. The shops have been expended, the vendors who support us, we have helped them give a bit of a technology to make in India. We believe in the next three years, this would be something for people who have already taken a decision before. Thank you.

And sir, the interest cost that we are seeing right now in Inox Wind, as we focus more on delivery rather than turnkey, should we see the interest cost coming down?

Sir Ben, you can come back in the queue, let others come in, there is long queue there. Thank you so much.

Thank you. The next question is from the line of Shubham Borade from ICICI Securities. Please go ahead.

Hi, thanks for the opportunity. My question is simple. What was the execution in terms of megawatt in Q1, and what is the approximate number we are looking at for FY27?

Thank you so much. I mean, this was, we changed the track two quarters before, so we do not announce anything on megawatt now. It is the number of machines that we, that we,

so we, last year, we had made an announcement that we'll move from the machine volumes to the revenue numbers, and that's what we've been guiding, the revenue targets and the margins there, and we'll, we'll restrict ourselves to that.

Okay. Revenue guidance and margins will be welcome.

So we remain committed. We mentioned that in the last quarter, we remain committed on our yearly revenue and margins.

And we maintain that revenue guidance of 75% growth over the previous year and an EBITDA margin of 20 to 22% on a console basis is what we maintain our guidance for the full year basis. And also, we would appreciate that this is an H2 heavy business. So normally, typically, what we do is 70 to 75% of the business is captured in H2, and we maintain that.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Preet from Wealths Advisor. Please go ahead.

Yes, my question is, my first question is regarding the blended per megawatt revenue that we would have generated for the 10.5 gigawatt portfolio. Could you please share what that number was?

I think you want to answer? Yeah.

So what we have already guided for in the past, on Ironhawks Green, the turbines that we have been doing, the blended per megawatt is 9 to 10 lakhs. The other two investments that we have would be substantially higher from this number, but once that gets concerned, we'll give you those numbers too. But they'll be substantially higher from these numbers.

So, I understand that, as you mentioned in your prior calls, for this sort of purpose of mathematics, for this 10.5 that you've done, should I assume, I mean, 9 and 10 is a very large range. Is there like a number that you have?

So, if you see 10 gigas that you're talking about, they're still not being consolidated. The number, the revenue numbers in Q1 that you are seeing is not for the consolidated operations. It's only for INOX green turbines that we were traditionally doing. The other two investments are still classified as investments, and they will get consolidated once the approvals are in place. Beyond that, I think we will not be able to comment as we are under the silent period there.

No, understood. So that's roughly what 4 gigawatt, right? Because out of 10 and a half, you have 6 and a half as investments. So 4 is your, 4 is the number on which the revenue has been reported. Is my understanding correct?

Yes, that's correct.

So on that 4, what number should we pencil in for the per megawatt realization?

So that's exactly what Vibhu has just mentioned. For our portfolio of approximately 4 gigawatts of wind, the per megawatt revenue is about 9 to 10 lakh per megawatt, excluding GST. For the two acquired portfolios, which are currently investments and accounted for as under AF109. So we will be able to do line by line consolidation of those two acquired portfolios once we acquire the shares. Right now, it's an investment. We haven't acquired the shares.

Okay, got you. Thank you, Shata. The second question I had was regarding the portfolio, overall win portfolio. So, what you're mentioning are only these two elements, which is the organic part as well as the acquisitions. Now, IMOX Clean has also been adding capacity, say the Vena acquisition or the other acquisitions that they've made. When will those capacities get reflected in your portfolio? Is there a timeline to it? Could you shed some light on that?

It will be, if you're talking about green, it will be over the course of time. So we have just acquired all these portfolios, but you are right. The group, and that's what you've been saying, the group synergies out of Ionox Clean, the biggest beneficiaries would be Vint, Green, and Rescoe, because what Ionox Clean does, and Ionox Clean, we have stated publicly, that's almost 3 gigawatts plus kind of portfolio annually, And on this, I'll say for the first three gigawatts, See, roughly 25-30% is win, so that gets to win. The entire portfolio for O&M comes to green, and the entire EPC that were to be done would come to VSCO. So, you would see all the synergies or what kind of clean is a very strategic initiative and a big, big value creator for the entire group.

Wonderful. Yes. Great. Thank you. Thank you.

Thank you. The next question is from the line of Bahubali from Katappa Investments. Please go ahead.

Hello, everyone. Am I audible?

Yes, sir. Yes.

So, hello, everyone. I'm an individual retail investor. So, I just have two basic questions. So, my first question is, I mean, the stock has fallen from almost more than 65% from the all-time high rise. So, like, do you have any plans to increase promoter heralding?

No plans as of now, but we'll keep evaluating over a period of time. So there's no fun plans as of now.

Okay. So my second question is, So basically, from the past few quarters, I have been observing that you have been delivering, you know, excellent performance. The only concern is, I mean, it feels like you are over-promising and under-delivering. So, I would say maybe next quarter, so can you confirm that at least a 30% increase in revenue and like maybe a bit of margins of 20%? Is it achievable? At least 30% minimum. So, can you confirm that?

This is an analyzed business, so on a quarterly basis, it would be pretty tough for us to say. As I've guided earlier as well on the call, we are mindful of what you've said. There have been challenges, and we maintain that. Last year, because we were doing a lot of it on turnkey, strategically pivoted towards the equipment supply. And when you have moved, when you take a large strategy shift, there are some disruptions, but you would see the operations have shown enough resilience to at least post flattish worthwhile results as well. Despite that, what we believe that we'll be able to achieve a 35% growth over the previous year, but yes, this is H2 heavy business, and the numbers will start reflecting in H2. We will see significant improvement in Q2 as well, but I will not be able to comment on the numbers of 30% growth over the previous year. On quarterly basis, we cannot quantify that. But yes, on an analyzed basis, that is the number we are sticking with.

We remain on our guidance that we gave a quarter before for the full year.

So, I mean, the reason I said 30% because, so, basically, I mean, I have observed that in the past two years, you know, I mean, I agree that definitely H3 is greater than H1, but as you said, H2 would, you know, account for more than almost 60 to 70%. That is the reason I am just saying at least 30% is accessible in, you know, in Q2. Again, we are not guiding.

Thank you so much. We are not guiding in terms of positive. Let me reiterate, we remain firm that we would achieve the numbers that we just mentioned for the full year.

All right. That's it for mine. Thank you.

Thank you. The next question is in the line of Shubham Shukla from Voyager Capital. Please go ahead.

Hello, everyone. Good evening. I largely have questions from two friends. Basically, I just started covering this company like last quarter. And there are just two fronts where I'm unsure, like where I could get some clarity from you people is our trade receivable. They are significantly higher than our peers. And also, I understand that this is like a result from our legacy EPC business also. But what I am trying to understand is EPC, which is done through our subsidiary company, these rate receivable numbers are like there in consolidated level as well as in a standalone balance sheet. I was trying to understand how these two are like. Like what's the method here to secure an EPC order and then executing it on like both standalone level and consolidated level and going ahead, how can we, of course, we have, I know, I understand we are trying to gradually move our order book from EPC heavy to equipment heavy, which will eventually make things better, like at least for paid receivable front. I was trying to understand how these two are placed on like both consolidated level and standalone level. This is the first point where I would like some clarity.

In terms of the receivable as numbers, you know, this is a quarterly number, the receivable numbers are not. This clause is not required by the NDAS and the LODR requirement, but as we have guided, we are sticking to our working capital guidance, which we have provided on an annualised basis, and we are keep improving in terms of the last quarter. Our working capital cycle has been improved. In terms of the receivable numbers, per se, our receivable is accounted as per the NDAS 115. which is on the rest transfer basis and some part of the receivable got struck in the receivable till it got commissioned. So, till it has got commissioned, the receivable got to start reflecting, that receivable will, you know, show in a higher number, but as we are moving toward the equipment supply, as you rightly said, this receivable number will start dropping pretty recently, and you will see a lot of improvement in quarter two and quarter three onwards.

So, I will just add in, so even the receivable days in this quarter, while they are not being published, it would have shown a downward trajectory, and that is exactly one of the reasons we have pivoted towards equipment supply. We are mindful of this, the working capital issues, and to improve on our working capital issues, we have pivoted towards equipment supply. So, over the course of next three, four quarters, you will see all these numbers falling out drastically, and the balance sheet improving big time.

Okay.

Okay. Fair enough. One second, Frank, I wanted to ask about our, I know that you mentioned that our 4x model is going, like, is expected to launch by August of this, like, currently right now. Like, is that the understanding, right? This year, this month, August, is going to be the launch for 4X models?

Yeah, so commercially, it will take a month more, but yes, in terms of operation, it will happen in a month.

Okay, so I just wanted to ask, I also just looked into our peers. Their product offering has, I don't know what quantum of their product offering is coming from higher models, say 5X models and 6X models. I was trying to understand the dynamics, the requirement, and demand-wise, and how...

Sorry to break you here. I would suggest, first of all, thank you to be our investor. I would suggest that you take up separately with our relationship team. They would be able to help you understand better, not in this forum, please.

All right. All right. Thank you so much. Thank you so much. Have a wonderful evening. Thank you.

Thank you. The next question is from the line of Akhilesh P. from Nordstop. Please go ahead.

Yeah, am I audible?

Yes, sir, you're audible. Please go ahead.

Yeah, thank you for the opportunity. Sir, I am a shareholder of your company since FY23, when the company first inflected, and you've done all great work, which is why, you know, the market also rewarded the company. I just want to understand. What are the disruptions exactly that you are facing when you are changing the model from turnkey to equipment supply? And now the guidance which you have for the full year, the ask rate is almost 6,500 crores of revenue in the next three quarters. There's almost a 100% growth rate for those three quarters. So does this look achievable? The reason I'm asking you this is. The market will reward certainty and consistency, you know that well. And I just want your perspective.

Thank you. Thank you. Let me answer the second point first you raised. Look, there is a great difference between when you do an EPC watches, when you do an equipment supply. It brings an equipment supply, we just have to bring a customer who has placed an order on us, he does the inspection, the material moves out. We make multiple turbines in a month, and we look forward for our customers to have an inspection and take the turbines. This means a faster changeover and achievement of better results, both in terms of revenue as well as cash. You said, what are the disruptions? Look, the disruptions on the EPC still remain the same. They have been there for years. The ROW is bringing the equipment, sometimes the customer is not ready. The weather also plays spoilsport. All these issues, something man-made, something beyond your control, this will continue. And that is where we made that call a couple of months back, which we say as a Vision 2.0, where IONOX. Thank you so much.

And sir, just one more question. Since INOXCLEAN is going to be an increasingly big part of our order book, just want to confirm whether the terms at which we do business with the group entity are same or similar to the terms we are doing with other entities.

Oh, great question. Great, great. So let me reconfirm this. Let me confirm, reconfirm. We do the business in a most ethical way. And legal binding way. So, all our contracts, all our contracts between entities, entities, all are ambulance. The terms of payments, the inspections, the way we work, it's Inox Clean for Inox Wind is a customer. Yeah, they are treated as a customer, they behave as a customer, they do all our inspections. So, please, rest assured, clean.

As much as Ionox Wind is dependent on Ionox Clean, Ionox Clean is as much dependent on Ionox Wind as well. So, it is not that Ionox Wind is the only beneficiary. So, Ionox Clean, the supplies, it gets secured supplies from Ionox Wind as well. So, there is no professional pricing for any customer, be it Ionox Clean or a third party.

Thank you, and I hope this year is again an inflection year for the company. Thanks. Thank you so much.

Thank you, ladies and gentlemen. I request you to limit your questions to two per participant. The next question is in the line of Rahul Kumar from Vicario. Please go ahead.

Hi. Am I audible?

Yes, sir. You're audible. Please go ahead.

This Inox Green, the other income of Rs.57.9 crore, can you break it up between how much is the income from assets that are being acquired versus the value-added services and versus the treasury income you get?

So, as far as the other income is concerned, majority of the other income around, you know, around 57 or 50 crore rupees plus is related to the operational income, which includes the asset which we have acquired. As far as the value addition services, the treasury, the balance is towards the treasury income.

Can you break 50 crore into the call? This will be tough for us to break it down right now. We can get on a separate call, but just to reiterate on the 50, this does not reflect the entire earnings of that company. As per the accounting policies, only a portion of it is what we can conserve, and that's what we are consolidating.

Got it. The second question I had was, if we exclude the income from assets being acquired, then the legacy assets EBITDA level seems to be earning much lower. Is there a reason, either accounting or otherwise, which is causing this as you basically meet your guidance and go towards this maybe early next year? What kind of profitability is legacy assets you think will earn?

Muthu, you want to take that? Yeah, so, Raghu, see, generally, our guidance on the O&M business of Wink portfolio stands at 50% EBITDA margin. And that has been guidance. And this is coming from a regular O&M contracts, as well as value-added services, which are part and parcel of the same package.

Okay.

And this is not including any treasury income or something. This is 50% on the INOX portfolio, right, which is currently, which is taken as 4 gigawatt. And similar to the portfolio which is under acquisitions, since there are higher age limits, so the revenue is much higher, and the EBITDA margin is also higher. So our, always the guidance, since several quarters, we always maintain that our EBITDA margin is close to 50%.

Matu, I think he was trying to figure out why we are saying 50%, why it is not reflected in the numbers for the period. Exactly.

I'm coming to that. I'm coming to that, Vibhu. So, in some quarters, some of one-time expenditures, some infrastructure enhancement, some life extension activity, and the costs involved will be slightly varying. That is what generally happens. So, that's what we mentioned in the opening remarks also. But, rest assured, it is 50% as the guidance we always maintain.

Okay, great. Thank you. Also, if I could just add, sir, as Mathur has mentioned in his opening comment as well, there were a lot of expenses that we incurred, which is reflected in the plant load availability as well for us. So, we have been doing a lot of expenses. Through the previous years, also, some of the expenses that we incurred for value-added services, which were not being billed, but were being expended by us. Going forward, there will be separate billing for all these value-added services, like light extensions for all these services, or major overhaul of turbines, end of 10 years, 8 years, or 15 years. All those, while they were being expended, they were not being billed separately, which is the right way to do it. And you will see it getting reflected from this year onwards.

Thank you. The next question is in the line of Bhagwat from Prosperity Wealth Management, Private Limited. Please go ahead.

Thank you for the opportunity. It's just a quick question regarding INAF sales. So, with the financial consolidation of INAF's green world acquisition, now expected post-CVT-FY27. Could you please update about our earlier EBITDA guidance of 600 scores, considering Q1 EBITDA of 6370?

I think beyond whatever is in the public domain of what we have guided for 600, we are sticking to that during the sign-in period, and owing to that, we cannot comment further on any of the guidances, future guidances. What we have guided for in the previous quarters, we are sticking to that. And that was also to do with the post-consolidation numbers, which is, there's always subject to a couple of quarters delays in terms of consolidating into the parent.

So, you understand me correct? So, the consolidated number could reflect from the QC onwards, right? QC and QS. So, for the two quarters, we can expect QS as well. Is that right on this point?

Yes. And like this, you see that, yeah.

Okay, and so for next year, it is the S.Y. 28. So roughly, you can expect around that, or it will be even more?

As I said, I will not be able to guide, I will not be able to make any forward guidances beyond what is there already in the public domain.

Okay, I'm not trying to understand about FY20 exactly, but I'm just trying to understand this 600 for FY27, is it belongs to two quarters, that is Q3, Q4, or it is starting from Q1 itself?

No, it's on the analyzed basis. 600 is the analyzed basis from Q3, Q4 onwards, as you can expect. Yes, there is an escalation as well, which is a natural business. So, that is where I will leave it right now. Okay, so then if you talk about the annual guidance, not the quarterly guidance. I can achieve 600 in a quarter.

Understood. That's where you are. Okay, so 600, so it's the opportunity for a 527, right?

I have mentioned that ample number of times.

Okay, thank you so much for that.

Thank you, ladies and gentlemen. I request you to limit your questions to two per participant. The next question is on the line of Deepak Sharma, an individual investor. Please go ahead.

Hi, good evening, Ainox and team. My first question is, when we can expect the listing of BESCO, and can you give me some idea about the reported EBITDA of BESCO in financial 26, and any forward-looking guidance for coming one or two years?

The record date is already over. Now, this is the procedural aspects, which we can comment on. We expect to happen sooner. Two months, three months, one month, we are the best. We can just judge about it. So two months, three months is what it should take, not beyond that. We will elaborate on all the plans of Resco closer to the listing, and we will give out a presentation to all the investors. At this moment, we will not be able to guide on the numbers of projections for Resco.

It's a regulatory process. There is nothing that we can do. Thank you.

Okay. Secondly, if the company is shrinking the EPC business, so EPC is a part of Resco, then I think the Resco future revenue visibility may take a hit.

Great question. Thank you so much. And that's a reason I said, please hear me out loudly. I said Resco will continue doing EPC, irrespective of whether it is being done for INOS Clean or some very strategic customer that we will choose depending on the market condition. But to compensate that, I mentioned about a couple of things. We are looking at enhancing our manufacturing capabilities under IRSL. One being Transformers, which is not limited only to our captive requirement of only solar and wind, but also moving up the value chain to 100 MVA and beyond. I talked about our own crane business, which has been giving us good returns. A couple of cranes are already with us, and a couple of them will join in. I also mentioned about high-value, technological value-added and high-margin power electronics products like inverters, like unit substations, and the capacitor systems. This has been planned in the year, and we believe these expansion plans for IRSL will outsmart Any lesser volumes that anyone would expect because of shrinking of EPC business. Thank you.

I'll just add to what Sanjeet said. So, we have given in our presentation that in our order book, about 40% of third-party orders are turnkey. So, you know, it's a very large component anyway, plus 1.5 gigawatt of the MOU, which we find with Inox Clean, as well as the 200 megawatt LOA, which we have from NLC India. These are all turnkey. So, IRSL continues to have a very robust pipeline of EPC projects.

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

Yeah, sir, am I audible?

Yes, sir, you're audible. Please go ahead.

So, I think I need to understand what is the reason why there is no erroneous growth in revenue for Inox Vint?

Is it because Inox Vint has completely stopped doing EPC business?

So, if I heard it correct, you were talking about no growth in ion oxygen on a year and a year basis. Is that correct? So, we have elaborated and enumerated earlier in the call as well. This is on account of the change in strategy where we have pivoted to equipment supply, and that leads to sudden disruptions. But the operations have shown enough resilience to at least be at par with the Q1 of the previous year. Having said that, we are maintaining our guidance, and we are hopeful and we are confident of achieving. While we have not lost anything in our maths, if at all we have lost anything, we are hopeful of covering that in the next few quarters. Thank you. H1 is almost 25% of the annual operations. So if you were to do that match, you're almost on track, barring 5-10%.

Also, full-year basis, if you see, FI26 revenues were up about 23% compared to the previous year. So I think quarterly, you know, we may not look at it for every quarter, but on an annual basis, we showed healthy growth in revenue, FI26 over FI25.

Okay, so I have one more question. Last quarter, NX call you mentioned there was about 400 crore of revenue which were deferred in Q4, and you were expecting to recognize it during Q1 and Q2.

So is there any update on that?

Management line.

Yeah, hi.

So, we partly recognize that, but as I said, as we are pivoting towards the equipment supplies, this will get covered in the next few quarters. So, this will be entirely covered in this financial year itself. So, if not in Q1, Q2, over the entire financial year 27, this will be covered.

Okay. So, we can assume this quarter there was no contribution from EPC business. It is completely equipment supplies.

I think you're getting confused. You want to talk about EPC? Let me come in. So what we said is, your question was, what did we do for the last quarter? The revenue which was coming in, so partially it has been recognized in the present quarter, and the balance would be in the full year. Okay. Our incremental revenue or margins on equipment supply would start flowing to us either in quarter 2 end or definitely in quarter 3.

Okay. Yeah, that is the matter. Thank you.

Thank you. The next question is in the line of Rysav Gupta, an individual investor. Please go ahead.

Hey guys, my audible.

Yes, sir, you're audible. Please go ahead.

Yeah. So, I do recognize that the business is 30-70 clicks, but you guys have guided 75% increase, and in the first quarter, there is no incremental revenue. Then, in the next three quarter, we need 100% increase for master guidance. What is going to significantly change in Q3, Q4, which gets you insight in terms of 100% improvement in the revenue? Is there any key initiative that you are targeting apart from EPC mix, because EPC mix obviously this quarter has also improved from last year, but I could not see any increment, and obviously you highlighted that 600 crore of myths in last year, that's also been recognized in this quarter somewhat, then probably we have degrowth. Thanks.

I think we said that typically an EPC business is loaded mostly in H2. Our equipment pivot that we did, that will start showing results in quarter to end and predominantly H2. So, we remain confident that this strategy will work. It has started showing its results, but predominantly on the numbers, it would be seen better in Q3 for sure.

And why we are confident of achieving these numbers? There are two reasons for it. Why did we move from turnkey to equipment supply? Equipment supply, I am not restricted to a certain client. So if there's a site ready, I can supply my equipment. But in the turnkey project, I am restricted to that client where I'm working on that site. So if the site is not ready, I will not be able to recognize the revenues. In this case, there is enough leeway, there's a lot of flexibility with me to shuffle between the clients. So if my turbine is ready, if X site is not ready, I can always sell it to the Y site. So that is why we are confident, and yes, I can just switch in a quarter from one study to another study. It takes time, but on an yearly basis, my infra is ready, the clients are ready, there is enough, and as you mentioned, the biggest driver being Inox Clean as well, and there is a host of other clients that we have, and these are all marquee names that we have just enumerated, and we are getting repeat orders from a lot of customers as well. So we are confident of achieving the numbers that we have set. Yes, there will be disruptions when you move from one study to the other.

Got it. Another small query. I've been in all the phone calls for the last three quarters, and every phone call we have missed the guidance by some margin, and every phone call we have been 100% confident that we will be achieving the guidance. So what is going wrong there?

Gentlemen, there is nothing wrong. I think this pivot strategy to move to incubate has been mentioned several times. The biggest player today is Inos Clean for us. The orders are already there. I mentioned about 1.5 gigawatt of orders coming in from Clean. The balance customers... Two-third of the balance stuff comes from our IPPs and CNI customers. We have 4.4 gigawatt of orders in backlog to be executed. 70% of that comes from equipment supply. We are pretty confident that on a month-by-month, on a quarter-by-quarter, we would deliver better than expectations.

And then we've been mindful of whatever you've rightly said, yes, there's been certain indices, but there's been never a word of appreciation when we have beaten all the EBITDA guidances in the past. So when we started a year back, we were at 18% EBITDA margin, we were upwards of 32%, we were at 27% this quarter. There's not been a single word of appreciation on maintaining or improving on the EBITDA margins. And the reason why the investors, and we don't offer the investors, honestly speaking, it is for the sake of the business, what is good for the business. We realized that there is ongoing, so you have to be mindful of that. While we are coming out of the Lund period, we thought there is a lot of way we could make, but we realized during the course of work that there is selling challenges, ongoing challenges. So what would we do? So we went, changed the strategy. We were very strict and nimble to change the strategy to equipment supply. What is it that we have today? We have a host of customers. So 4.5 gigawatts, even if you were to take 1.5 gigawatts annually, right? And it's covered for the next three years. And these are large equipment supplies. This is large in-house or group company orders. These are orders from most marquee names. We just announced NLC order. So these are all repeat customers that are coming back to us. Yes, they were starting slippages, but at the same time, we have tried to cover that through improved EBITDA margins, improved business performances, or what value of services can we bring on the table? So that's what we're working for the business, and we are for the long run. We are not on the quarterly basis. There could always be slippages on the quarterly basis, but in the long run, we have done everything that we could do to improve the business performance and maintain a healthy financial position.

And enhance the share value.

Yeah, obviously, that's why we are in the company, but we track it, and obviously, in the next quarter, if you are meeting the guidance, I would definitely be going right to thank you.

Good. Thanks a lot.

Thank you. The next question is in the line of Dushal Jhaveri from Crown Capital. Please go ahead.

Yeah, thank you so much for taking my question. A lot of my questions have been answered. So just one question from my answer that what are the risks that you see that, you know, in case that we cannot meet the 75% guidance? I know we are very sure, but a lot of factors will not be in our hands that you see on a daily basis. So someone who's not in the business, could you just elaborate some kind of risk that, you know, that can happen in our business or that we'll not meet the guidance?

Thank you so much. And I would say only force measure, things which are beyond our control. I mean, no one had an inkling about this Middle East crisis. So something like that. Otherwise, this pivot to move to equipment supply, honestly, we don't see a risk of not meeting our deliverables. Thank you.

Oh, okay, okay. That's really great, sir. That's it from my side. And just one more question.

In the PPT, I don't know if we could find how much product and how much EPC business have we done. So, I think if going forward, we could mention that that would be helpful, sir.

I think we will not allow that, but we hear you. Probably going forward, we will start to see if we could provide those data as well.

Yeah, that will be helpful.

Thank you so much.

Thank you. Due to time constraints, we take that as the last question. I now hand the conference over to management for closing comments.

Thank you so much. Thank you so much for attending it, and we'll see you next time. Thank you so much.

On behalf of Novama Institutional Equity, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.