Buy Inox Wind shares, target price Rs 158, says JM Financial post Q1 earnings call
JM Financial maintains a buy rating on Inox Wind with a revised target price of Rs 158, citing strong execution and financial projections during the company's FY26 earnings call.
- Sep 2, 2025,
- Updated Sep 2, 2025 9:38 AM IST
In the latest update from JM Financial, Inox Wind has been given a buy rating with a revised target price of Rs 158, up from the previous Rs 154. This decision comes after the company reported strong plans for execution and financial growth during its first-quarter FY26 earnings call.
According to JM Financial, "Execution is expected to pick up from 3Q onwards, supported by the recent CERC circular on hybridisation of existing transmission infrastructure and seasonality." This development is anticipated to boost Inox Wind's operational capabilities significantly, allowing access to an extensive 10GW of plug-and-play infrastructure.
Moreover, Inox Wind has successfully completed a rights issue valued at Rs 1,250 crore. "The domestic brokerage noted that Inox Wind has also successfully completed a rights issue of Rs 1,250 crore, which is expected to further strengthen its balance sheet," providing the company a robust financial footing, according to JM Financial. This move is seen as a strategic step to enhance liquidity and support future growth initiatives.
The financial projections for Inox Wind are promising, with expected growth in revenue, EBITDA, and adjusted profit after tax (PAT) at a compound annual growth rate (CAGR) of 32 per cent, 31 per cent, and 36 per cent respectively from FY25 to FY28. "Revenue/EBITDA/Adj. PAT are projected to grow at a CAGR of 32 per cent/31 per cent/36 per cent during FY25–28. JM Financial maintain Buy rating on the stock with a revised SOTP-based target price of Rs 158," said JM Financial.
In terms of operational achievements, Inox Wind reported an execution of 146MW in 1QFY26 compared to 140MW in 1QFY25. The management has reaffirmed its execution guidance of 1,200MW for FY26, with expectations of growth in the latter half of the year. This aligns with their strategy to capitalize on favorable market conditions and regulatory support.
The company's order book has also seen an increase, with a total of 3.1GW as of June 2025, up from 2.9GW in March 2024. The mix of equipment supply and engineering, procurement, and construction (EPC) orders is shifting towards a balanced 50:50 split, providing two years of production visibility. This shift indicates a strategic diversification in their project portfolio.
Inox Wind has outlined plans for Inox Green’s operations and maintenance (O&M) portfolio to expand from 5GW to 17GW over the next two years. This expansion will include a mix of solar and wind assets, reflecting the company's commitment to renewable energy. The focus on expanding the O&M portfolio is expected to enhance their service offerings and market reach.
The strategic demerger of connectivity and infrastructure businesses from Inox Green to Inox Renewable Solutions Ltd (Resco) is expected to streamline operations and facilitate listing under the automatic route, potentially boosting market performance and investor confidence. This restructuring aims to optimize operational efficiency and unlock value for stakeholders.
In the latest update from JM Financial, Inox Wind has been given a buy rating with a revised target price of Rs 158, up from the previous Rs 154. This decision comes after the company reported strong plans for execution and financial growth during its first-quarter FY26 earnings call.
According to JM Financial, "Execution is expected to pick up from 3Q onwards, supported by the recent CERC circular on hybridisation of existing transmission infrastructure and seasonality." This development is anticipated to boost Inox Wind's operational capabilities significantly, allowing access to an extensive 10GW of plug-and-play infrastructure.
Moreover, Inox Wind has successfully completed a rights issue valued at Rs 1,250 crore. "The domestic brokerage noted that Inox Wind has also successfully completed a rights issue of Rs 1,250 crore, which is expected to further strengthen its balance sheet," providing the company a robust financial footing, according to JM Financial. This move is seen as a strategic step to enhance liquidity and support future growth initiatives.
The financial projections for Inox Wind are promising, with expected growth in revenue, EBITDA, and adjusted profit after tax (PAT) at a compound annual growth rate (CAGR) of 32 per cent, 31 per cent, and 36 per cent respectively from FY25 to FY28. "Revenue/EBITDA/Adj. PAT are projected to grow at a CAGR of 32 per cent/31 per cent/36 per cent during FY25–28. JM Financial maintain Buy rating on the stock with a revised SOTP-based target price of Rs 158," said JM Financial.
In terms of operational achievements, Inox Wind reported an execution of 146MW in 1QFY26 compared to 140MW in 1QFY25. The management has reaffirmed its execution guidance of 1,200MW for FY26, with expectations of growth in the latter half of the year. This aligns with their strategy to capitalize on favorable market conditions and regulatory support.
The company's order book has also seen an increase, with a total of 3.1GW as of June 2025, up from 2.9GW in March 2024. The mix of equipment supply and engineering, procurement, and construction (EPC) orders is shifting towards a balanced 50:50 split, providing two years of production visibility. This shift indicates a strategic diversification in their project portfolio.
Inox Wind has outlined plans for Inox Green’s operations and maintenance (O&M) portfolio to expand from 5GW to 17GW over the next two years. This expansion will include a mix of solar and wind assets, reflecting the company's commitment to renewable energy. The focus on expanding the O&M portfolio is expected to enhance their service offerings and market reach.
The strategic demerger of connectivity and infrastructure businesses from Inox Green to Inox Renewable Solutions Ltd (Resco) is expected to streamline operations and facilitate listing under the automatic route, potentially boosting market performance and investor confidence. This restructuring aims to optimize operational efficiency and unlock value for stakeholders.