Inox Wind Limited

Industrials — Specialty Industrial Machinery · NSE

₹67.63−₹0.95 (−1.39%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Inox Wind Limited engages in the manufacture and sale of wind turbine generators and components for independent power producers, utilities, public sector undertakings, businesses, and private investors in India. It provides rotor, generator, braking system, gear box, and towers.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees1,309

Annual revenue₹4,211 Cr

How does it make money?

Turns over ₹4,211 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 1,309 employees supports ₹3.22 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.22 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. 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 ROE17.1%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 32.2% and earnings to grow about 42.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+32.2%

Est. earnings growth+42.1%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +476% while net margin moved -111% 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+476%

Margin effect-111%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.42 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

67/ 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

28.1x

1.3Y Median

34.1x

16 monthly readings · mean 37.6x · range 27.6x–56.8x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 1.3y median of 34.1x. 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 58% below the peer median of 66.2x.

vs. its own history

Fair

34.1x median over 16 months · -18%

vs. sector peers

Cheap

66.2x median of 4 peers · -58%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -28.6% to 20.9% over 3 years.
Debt is being paid down
Total debt is down 34% over 3 years.
Return on equity is rising
ROE has improved from -38.9% to 6.3%.
Return on capital is rising
ROCE has improved from -12.9% to 9.4%.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 31% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -28.6% to 20.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 34% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 58% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 59% a year✓ 79.3% CAGR
Latest reported year was -1.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 20.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1,247 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
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

5 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹11,688 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.41

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

9.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

-1.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-38.3%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹1,247 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

15.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.5%

Average

Average margins

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

2.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

70.6 / 72.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹731 Cr	₹1,659 Cr	₹3,507 Cr	₹4,211 Cr	+79.3%
EBITDA	-₹209 Cr	₹264 Cr	₹808 Cr	₹880 Cr	—
EBITDA Margin	-28.6%	15.9%	23.0%	20.9%	—
PAT (Net Profit)	-₹667 Cr	-₹36 Cr	₹448 Cr	₹405 Cr	—
EPS	₹-5.04	₹-0.28	₹2.73	₹2.39	—
ROE	-38.9%	-1.3%	10.2%	6.3%	—
ROCE	-12.9%	3.9%	11.4%	9.4%	—
Total Debt	₹2,416 Cr	₹2,079 Cr	₹1,474 Cr	₹1,587 Cr	-13.1%
Free Cash Flow	-₹1,488 Cr	-₹905 Cr	-₹483 Cr	-₹1,247 Cr	—

🟢 Revenue has grown at 79.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹209 Cr to ₹880 Cr.

🟢 EBITDA Margin has risen from -28.6% to 20.9% over 3 years (+49.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹667 Cr to ₹405 Cr.

🟢 EPS has turned positive, from ₹-5.04 to ₹2.39.

🟢 ROE has risen from -38.9% to 6.3% over 3 years (+45.3 pts).

🟢 ROCE has risen from -12.9% to 9.4% over 3 years (+22.3 pts).

🟢 Total Debt has shrunk at 13.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,068 Cr

Total Liabilities

₹4,375 Cr

Cash & Equivalents

₹131 Cr

Operating Cash Flow

-₹598 Cr

Capex

-₹649 Cr

Shareholding (proxy)

Institutional Holding

21.4%

Insider Holding

47.2%

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹109

+61.2% vs CMP

Target Range

₹72 – ₹138

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

IREDA vs Inox Wind: Renewable Energy Stocks Down 7%, Buy The Dip Or Stay Away?

Goodreturns, 17 Oct

Inox Wind share price: Hold or average? Expert flags weak earnings, says wait for revival

Business Today, 31 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Suzlon Energy vs Inox Wind vs NTPC vs CESC vs Tata Power: Best Expert Pick In Power Utility Segment Revealed!

Goodreturns, 15 Oct

Inox Wind Secures ₹755 Crore IOC Order; Shares Rise 0.71%

HDFC Sky, 03 SeptOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Inox Wind Limited Just Missed EPS By 38%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 12 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Inox Wind promoter group completes ₹221.64 crore inter-se share transfer

scanx.trade, 26 Aug

Watch Items

Revenue growth is negative (-1.5%) 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.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑