Buy Inox Wind; target of Rs 170: ICICI Securities

ICICI Securities's research report on Inox Wind

Inox Wind reported revenue growth of 30% YoY in Q1FY26 – execution grew 4% YoY and realisations grew 24% YoY. Thus, EBITDA margins came in at 23.5% (+220bps YoY). The company has also commissioned its nacelle plant near Ahmedabad, to aid margins in the long run. However, we believe margins for the full year will be closer to the guided 18%. We believe the lower order inflow (OI) - of 51MW in Q1 reduces the visibility of revenues in FY27E. Thus, we are tapering FY27E estimates on execution to 1.5GW (from 1.7GW earlier). The company is undergoing restructuring of its various businesses to streamline the balance sheet (discussed below). Given the industry tailwinds and sharp drop in the stock price, we maintain a BUY on the stock with a revised TP of INR 170 (vs INR 230 earlier)

Outlook

We maintain BUY on the stock with an SoTP-based revised target price of INR 170/share (earlier INR 230) as we taper FY27E execution estimates by ~15%, valuing the wind business at 30x FY27E EPS.