Inox GreenQ1 FY25
Inox Green Q1 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹178P/E: 58.4Market Cap: ₹7.2K CrSector: Commercial Services & Supplies
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- Inox Green aims to double its O&M portfolio to 6 GW by FY 2026 and reach 10 GW in the next 3-4 years.
- The company targets a 6 GW revenue by FY 2026, aspiring to become a 10 GW revenue company in 3-4 years.
- Projected top line for a 10-15 GW company is approximately INR 1,000 to 1,500 crores.
- Business operates at 50%+ margins, implying PBT of INR 500 to 750 crores with strong cash flows.
- Growth will be driven both organically and inorganically, with several acquisitions in evaluation.
- The market opportunity includes around 10 GW of non-organized or distressed assets ripe for acquisition.
- There is potential for additional value-accretive initiatives beyond traditional O&M business.
- Machine availability has improved to 96%, underpinning service quality and growth.
- Revenue for Q1 FY'25 was INR 55 crores, slightly down from INR 58 crores YoY, but steady full-year projections are on track.
See what Inox Green management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- Inox Green Energy Services Limited has recently raised around INR 550 crores through preferential allotment, with an additional INR 500 crores available on call over the next 18 months, to be potentially deployed in this period.
- The company emphasizes a prudent capital allocation policy; they have no pressure to deploy cash unstrategically and prefer value-accretive investments.
- While they are evaluating multiple acquisition targets and business strategies, no specific new fundraising plans through debt or further equity have been disclosed at this time.
- The focus is on utilizing the existing raised capital prudently for organic and inorganic growth, including acquisitions and value-added services.
- Any details on new business strategies or further capital raising will be shared in due course, but currently, no explicit mention of fresh fundraising is made beyond the existing INR 1000 crores raised.
See what Inox Green management said on order book — free account, 30 seconds.
Capex plans
Yes- Raised approximately INR 1,000 crores capital, with INR 550 crores already raised and another INR 500 crores available on call for the next 18 months.
- Capital deployment planned over the next 18 months, with possible further deployment depending on valuation and strategic fit.
- Evaluating multiple acquisition opportunities including large OEM-based O&M portfolios, bankrupt OEMs, and small ISPs.
- Pursuing a zero-capex model for core O&M business; minimal capex needed for power evacuation O&M activities (few crores).
- Working on a new business strategy expected to be highly value-accretive, details to be shared in future quarters.
- Demerger of power evacuation assets planned to create an asset-light balance sheet, reducing depreciation and improving margins.
- Capital allocation to follow prudent policy, focusing on deals that meet IRR thresholds of 30–35%, avoiding low-return investments.
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Margin guidance
Category 3- Inox Green aims to double its O&M portfolio to 6 GW by FY ’26 and target 10 GW in the next 3-4 years, signaling strong organic growth.
- Q1 FY ’25 revenue stable at INR 55 crore with EBITDA steady at INR 30 crore; improving machine availability at 96.2% supports operational efficiency.
- The business operates at 50%+ margins, targeting annuity PBT of INR 500-750 crores as a 10-15 GW company, implying significant profit growth.
- Future earnings growth expected from multiple acquisition opportunities in O&M portfolios and value-added service offerings, backed by INR 1000 crore capital raised.
- Management targets upward of 30-35% IRR on acquisitions, emphasizing prudent capital allocation without pressure to deploy funds hastily.
- Demerger of power evacuation infra will remove depreciation, improving earnings quality and cash flow.
- Overall, Inox Green is confident in a robust multi-fold increase in growth both organically and inorganically over the medium term.
Order book
- As of Q1 FY '25, Inox Green Energy Services has an O&M portfolio size of 3.35 gigawatts.
- The company is actively pursuing both organic growth and inorganic opportunities to scale up.
- There are multiple acquisition and business opportunities under evaluation, including a large MNC with a significant O&M portfolio and bankrupt OEMs.
- The company raised about INR 550 crores so far with another INR 500 crores available over the next 18 months to fund these opportunities.
- Discussions are ongoing with large customers for additional business opportunities (e.g., I-Fox executing restoration of 33 wind turbines for NLC India).
- The company aspires to double its O&M portfolio to 6 gigawatts by FY '26 and 10 gigawatts in the next 3-4 years.
- No explicit numeric figure for a current order book was disclosed; focus is more on pipeline and ongoing deals.
How does Inox Green rank vs peers in Commercial Services & Supplies?
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How does Inox Green rank in Commercial Services & Supplies?
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What Inox Green's management said in earlier quarters
- Q3 FY26 earnings call analysis →
- Q1 FY27 earnings call analysis →
- Q1 FY26 earnings call analysis →
- Q4 FY26 earnings call analysis →
- Q2 FY26 earnings call →
- Q3 FY25 earnings call →
- Q2 FY25 earnings call →
- Q1 FY25 earnings call →
- Q3 FY24 earnings call →
- Q2 FY24 earnings call →
- Q1 FY24 earnings call →
- Q4 FY23 earnings call →
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