INOX India shares reverse recent losses to rise 13% after bagging top certification as cryogenic equipment maker

INOX India becomes India’s first cryogenic equipment manufacturer to receive the IATF 16949 certification after a rigorous audit of its Kalol facility in Gujarat.

Shares of INOX India are sharply higher by about 13 percent in early trade on February 27, following the announcement of an international certification for cryogenic fuel tanks made public three days ago.

On February 24, the company had issued a statement on becoming India’s first cryogenic equipment manufacturer to receive the prestigious IATF 16949 certification, awarded after a comprehensive audit of INOX India's facility at Kalol, situated in Panchmahal, Gujarat.

As of 10:40 am, the shares are trading at Rs 1,022.05 at a gain of 12.95 percent.

The certification is issued by Bureau Veritas Certification to cover the design and manufacturing of insulated cryogenic fuel tanks and is a mandatory requirement for automotive OEM suppliers. The certification validates the quality management standards of the company.

As per the company's Q3FY25 results, the revenue grew by 14.8 percent on year (YoY) to Rs 334 crore.  EBITDA increased by 3 percent YoY to Rs 69 crore and EBITDA margin declined by 220 basis points to 20.7 percent. Net profit surged 20 percent YoY to Rs 58 crore, driven largely by a 78 percent rise in other income.

The company recently bagged large projects and has embarked on capacity expansion, which slowed revenue, but the management is optimistic of a stronger Q4FY25 and FY26. INOX India expects a 18-20 percent on  year growth in the fourth quarter revenue, likely above Rs 400 crore.

The order backlog, as of December 31, 2024 stood at Rs 1,341 crore, with Q3FY25 order inflow at Rs 493 crore.

Inox India enjoys a strong global presence, with about 55 percent of total revenue coming from exports. The company has established a strong global presence in more than 100 countries.