Inox Green Energy Services Limited

Utilities — Utilities - Renewable · NSE

₹119.69−₹4.14 (−3.34%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, a beta above 1.3, so it swings harder than the index.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Inox Green Energy Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Inox Green Energy Services Limited provides renewable energy operation and maintenance services in India. The company operates through Operation & Maintenance; Power Generation; Power Evacuation; and Consultancy Income segments.

IndustryUtilities - Renewable

SectorUtilities

Employees367

Annual revenue₹269 Cr

How does it make money?

Turns over ₹269 Cr a year. Of every ₹100 of sales, about ₹38 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 367 employees supports ₹73.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹73.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +36% while net margin moved -223% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+36%

Margin effect-223%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.37 — amplifies market moves in both directions
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.5x

2Y Median

235.0x

28 monthly readings · mean 229.7x · range 43.5x–467.6x

Sector Median

14.6x

median of 3 sector peers

🟢Current valuation is approximately 84% below its 2y median of 235.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 163% above the peer median of 14.6x.

vs. its own history

Cheap

235.0x median over 28 months · -84%

vs. sector peers

Expensive

14.6x median of 3 peers · +163%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

58.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 85% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -5.6% to 6.0%.
Return on capital is rising
ROCE has improved from 1.8% to 9.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.15x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.9 points, from 50.6% to 31.7%.
🔴Inventory building faster than salesFinancial
Inventory up 228% against revenue up 36% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 79% against revenue up 36% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 38% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 85% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 84% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 50.6% to 31.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.15x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 79% against revenue up 36%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 163% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.9% CAGR
Latest reported year was -23.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹65 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹5,022 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.11

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

9.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.15x

High

High leverage

Revenue Growth (YoY)

-23.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

74.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹65 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-3.1%

Weak

Thin margins leave little room for error

Net Margin

44.5%

Good

Strong bottom-line conversion

Current Ratio

2.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.37

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

148.9 / 165.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹198 Cr	₹192 Cr	₹213 Cr	₹269 Cr	+10.9%
EBITDA	₹100 Cr	₹104 Cr	₹108 Cr	₹85 Cr	-5.1%
EBITDA Margin	50.6%	54.2%	50.5%	31.7%	—
PAT (Net Profit)	-₹61 Cr	₹28 Cr	₹20 Cr	₹102 Cr	—
EPS	₹-2.54	₹0.85	₹0.57	₹2.73	—
ROE	-5.6%	2.1%	1.0%	6.0%	—
ROCE	1.8%	3.3%	2.9%	9.4%	—
Total Debt	₹595 Cr	₹174 Cr	₹181 Cr	₹88 Cr	-47.1%
Free Cash Flow	-₹97 Cr	-₹8 Cr	₹56 Cr	₹65 Cr	—

🟢 Revenue has grown at 10.9% a year over 3 years.

🔴 EBITDA has shrunk at 5.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 50.6% to 31.7% over 3 years (-18.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹61 Cr to ₹102 Cr.

🟢 EPS has turned positive, from ₹-2.54 to ₹2.73.

🟢 ROE has risen from -5.6% to 6.0% over 3 years (+11.6 pts).

🟢 ROCE has risen from 1.8% to 9.4% over 3 years (+7.7 pts).

🟢 Total Debt has shrunk at 47.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹97 Cr to ₹65 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,113 Cr

Total Liabilities

₹397 Cr

Cash & Equivalents

₹87 Cr

Operating Cash Flow

₹67 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

5.5%

Insider Holding

59.2%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%

Recent News

4 mixed2 general

Inox Green Energy Services share price jumps 15% after this acquisition update - buy, sell or hold? Experts' view

TradingView, 09 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Inox Green Energy Services share price jumps 15% after this acquisition update — buy, sell or hold? Experts' view

Livemint, 09 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Inox Green Energy Services Raises ₹300 Crore Via QIP Issuing 1.81 Crore Shares

Sahi, 30 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Inox Green Energy Services Stock Decline Analysis

Kalkine India, 08 Oct

Inox Green Completes Rs 550-Cr Payment for Acquisition of Wind World India’s 4.5 GW Wind O&M Biz

HDFC Sky, 07 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Inox Green Energy Opens Rs 300-Crore QIP With Option To Upsize: Sources

NDTV Profit, 24 Sept

Watch Items

Revenue growth is negative (-23.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑