Mumbai: Shares of Inox Wind fell more than 8 percent on Monday after the wind energy company reported a sharp decline in profit for the fourth quarter of FY26.
The company's stock came under pressure after it announced lower earnings and highlighted several operational challenges that affected its performance during the January-March quarter.
Profit Drops Sharply in Fourth Quarter
Inox Wind reported a consolidated net profit of Rs 105.68 crore for the fourth quarter, down nearly 45 percent from Rs 190.34 crore recorded in the same period last year.
The decline in profit was mainly due to a significant increase in operating expenses during the quarter.
The company's total income from operations stood at Rs 1,305.50 crore, slightly lower than Rs 1,310.65 crore reported in the corresponding quarter of the previous financial year.
Higher Costs Impact Earnings
Total expenses rose to Rs 1,161.59 crore during the quarter from Rs 1,103.01 crore a year earlier.
The increase in costs put pressure on margins and affected overall profitability despite stable revenue.
Inox Wind said its financial performance was impacted by project execution challenges, geopolitical disruptions affecting equipment and component supplies, logistical bottlenecks and delays in customer payments.
The company added that these issues continued to keep working capital requirements high.
Strong Order Book Offers Support
Despite the weak quarterly results, the company said its order book remained strong at 3.1 GW as of March 31, 2026.
According to the company, the current order pipeline provides revenue visibility for more than two years and supports future business growth.
Brokerage Cuts Forecasts
Nuvama Institutional Equities described the company's fourth-quarter performance as significantly below expectations.
The brokerage said revenue came in at around Rs 1,240 crore, well below its estimate of Rs 2,150 crore.
It noted that the operating profit margin fell to 16 percent from 19.9 percent a year ago as engineering, procurement and construction (EPC) costs surged 95 percent year-on-year.
As a result, earnings before interest, taxes, depreciation and amortisation (EBITDA) were nearly 45 percent below market expectations.
Earnings Estimates Reduced
Citing continued execution challenges, Nuvama lowered its execution forecasts for FY27 and FY28.
The brokerage reduced projected execution volumes for FY27 to 1.4 GW from 1.6 GW, and for FY28 to 1.75 GW from 2 GW.
It also cut its earnings estimates for the two financial years by 33 percent and 34 percent, respectively.
