Shares of Inox Wind rose as much as 6 percent to Rs 147.80 in morning deals on Tuesday after the company said it had divested a stake worth about Rs 175 crore in its subsidiary Inox Renewable Solutions Ltd. (IRSL).
The company disclosed in a regulatory filing that it has signed agreements, last executed on August 18, to sell 49.6 lakh equity shares of IRSL, each with a face value of Rs 10. The transaction values the subsidiary at around Rs 7,400 crore, with the sale expected to be completed within the next seven days.
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IRSL, formerly known as Resco Global Wind Services, reported revenue of Rs 217.98 crore in FY25, contributing about 6 percent to Inox Wind’s consolidated revenue. Its net worth stood at Rs 935 crore, accounting for 14 percent of the parent’s consolidated net worth.
Inox Wind’s consolidated profit after tax surged to Rs 105.8 crore in the June quarter, up from Rs 10.3 crore a year earlier, aided by higher other income and lower finance costs. Other income rose to Rs 36.3 crore from Rs 15.1 crore, while finance costs declined to Rs 33.8 crore from Rs 55.8 crore in the same period last year.
Revenue for the quarter increased 29.2 percent to Rs 826.3 crore compared with Rs 639.6 crore in the year-ago period. The company’s EBITDA margin expanded to 22.2 percent from 21.1 percent a year earlier. Inox Wind also took a deferred tax charge of Rs 40 crore, with reversal of deferred tax assets already recognised in earlier years.
Following Q1, Nuvama Institutional Equities cut its price target on the stock by 19 percent to Rs 190 from Rs 236. The brokerage, however, maintained its “buy” rating, noting that the revised target still implies an upside of around 39 percent from current levels.
Nuvama highlighted that Inox Wind reported modest execution in the June quarter at 146 megawatts (MW) versus consensus estimates of 180 MW.
Order intake during the quarter was soft at 51 MW, taking the order book to 3.1 GW with an execution horizon of more than 24 months. The brokerage has trimmed its FY26 and FY27 execution estimates to 1.1 GW and 1.8 GW, down from earlier projections of 1.2 GW and 2 GW, respectively.
At about 10:10 am, shares of the company were trading at Rs 146, higher by 5.6 percent from the last close on the NSE. Inox Wind shares are down 18.5 percent since the beginning of the year.
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