Inox Wind shares fall 8% as Q4 FY26 profit slumps 45% on rising costs
Synopsis
Inox Wind's quarterly profit nearly halved — not because demand dried up, but because costs ran out of control. With EPC expenses up 95% year-on-year and revenue missing estimates by over ₹900 crore, the company's 3.1 GW order book looks like cold comfort until execution bottlenecks are resolved. Analysts have already slashed two-year forecasts.
Key Takeaways
Inox Wind shares fell more than 8 per cent on 1 June 2026 following weak quarterly results.
Q4 FY26 net profit dropped 45 per cent to ₹105.68 crore , down from ₹190.34 crore a year earlier.
EPC costs surged 95 per cent year-on-year , pushing operating margin down to 16 per cent from 19.9 per cent .
Revenue came in at ₹1,240 crore against Nuvama's estimate of ₹2,150 crore — a miss of over ₹900 crore .
Nuvama cut FY27 and FY28 earnings estimates by 33 per cent and 34 per cent respectively.
Order book stands at 3.1 GW as of 31 March 2026 , providing over two years of revenue visibility.
Inox Wind shares tumbled more than 8 per cent on Monday, 1 June 2026, after the wind energy solutions company posted a steep fall in quarterly earnings, disappointing analysts and triggering a broad-based sell-off in the stock.
Q4 FY26 Earnings at a Glance
The company reported a consolidated net profit of ₹105.68 crore for the January–March 2026 quarter, a decline of nearly 45 per cent compared with ₹190.34 crore in the same period a year earlier. Total income from operations slipped marginally to ₹1,305.50 crore from ₹1,310.65 crore in Q4 FY25, while total expenses climbed to ₹1,161.59 crore from ₹1,103.01 crore, squeezing margins sharply.
What Drove the Profit Decline
Inox Wind attributed the earnings pressure to a combination of execution-related challenges, geopolitical disruptions affecting the supply of equipment and components, logistical bottlenecks, and delayed customer payments in a difficult macroeconomic environment. These factors, the company said, kept working capital requirements elevated through the quarter.
Notably, engineering, procurement and construction (EPC) costs surged 95 per cent year-on-year, according to brokerage Nuvama Institutional Equities, dragging the operating profit margin down to 16 per cent from 19.9 per cent a year ago.
Analysts Slash Forecasts
Nuvama flagged the Q4 FY26 performance as significantly below expectations. The brokerage had estimated revenue of ₹2,150 crore; actual revenue came in at ₹1,240 crore. EBITDA landed nearly 45 per cent below consensus estimates. In response, Nuvama cut its execution forecasts for FY27 and FY28 to 1.4 GW and 1.75 GW respectively, down from earlier projections of 1.6 GW and 2 GW. Earnings estimates for both years were lowered by 33 per cent and 34 per cent respectively.
Order Book Offers Some Comfort
Despite the weak quarter, Inox Wind pointed to a robust order book of 3.1 GW as of 31 March 2026, which the company said provides revenue visibility for more than two years. The pipeline signals underlying demand for wind energy capacity in India remains intact, even as near-term execution hurdles weigh on financial performance.
What to Watch Next
Investors will be watching whether Inox Wind can resolve supply chain and logistical constraints in the coming quarters, and whether customer payment cycles normalise as macroeconomic conditions stabilise. Any improvement in EPC cost efficiency will be critical to a margin recovery — and to rebuilding analyst confidence after a quarter that missed forecasts by a wide margin.
Point of View
But a 95 per cent spike in EPC costs signals that execution infrastructure — supply chains, logistics, payment cycles — has not scaled with ambition. The brokerage downgrades are significant: cutting two-year forecasts by a third is not a routine trim, it is a structural reassessment. Until Inox Wind demonstrates it can convert gigawatts on paper into gigawatts on the grid without margin erosion, the stock will carry an execution discount that no order announcement alone can close.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did Inox Wind shares fall on 1 June 2026?
Inox Wind shares fell more than 8 per cent after the company reported a 45 per cent drop in Q4 FY26 net profit to ₹105.68 crore, well below analyst expectations. Rising EPC costs and execution challenges were the primary drivers of the earnings miss.
What was Inox Wind's net profit in Q4 FY26?
Inox Wind reported a consolidated net profit of ₹105.68 crore for the January–March 2026 quarter, compared with ₹190.34 crore in the same quarter of FY25 — a decline of nearly 45 per cent.
Why did Inox Wind's profits fall so sharply?
The company cited geopolitical disruptions affecting equipment supply, logistical bottlenecks, delayed customer payments, and elevated working capital requirements. EPC costs also surged 95 per cent year-on-year, compressing operating margins.
How did analysts react to Inox Wind's Q4 results?
Nuvama Institutional Equities described the performance as significantly below expectations and cut its FY27 and FY28 execution forecasts to 1.4 GW and 1.75 GW respectively. Earnings estimates for both years were reduced by 33 per cent and 34 per cent.
What is Inox Wind's current order book?
As of 31 March 2026, Inox Wind's order book stood at 3.1 GW, which the company says provides revenue visibility for more than two years despite the near-term execution challenges.
