Summary
Indowind Energy Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 03, 2026 4:00 PM
Event Participants
Executives 1 Bala Venckat Kutti (Promoter)
Analysts 6 Ganraj Turani (Advisor), Ishita Nagesh (Individual Investor), Mahesh (BYT Capital), Ritesh Seth (Oakline Capital), Riya Shah (Orient Capital), Sakshi Jain (Blue Peak Health Partners)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue (Q3) | ₹6.19 crores | +5.09% YoY; reflects seasonal lean period offset by improved wind conditions and recent asset acquisitions. |
| Consolidated Revenue (9M) | ₹35.49 crores | +21.61% YoY; driven by capacity additions and a stronger monsoon/windy season. |
| EBITDA (9M) | ₹16.98 crores | +29.39% YoY; margins expanded from 44.98% to 47.86% due to cost management and scale. |
| Net Profit (PAT) (Q3) | ₹0.35 crores | Turned profitable vs. loss YoY; supported by better wind availability in Karnataka. |
| Net Profit (PAT) (9M) | ₹7.50 crores | +24.32% YoY; PAT margin improved to 21.17% following debt reduction and lower interest costs. |
| Rights Issue Proceeds | ₹49.42 crores | Successfully raised during the period to strengthen the balance sheet and fund expansion. |
| Total Borrowing Limit | ₹1,500 crores | Board approved increase to provide financial headroom for long-term growth. |
Geographic & Segment Commentary
- Wind Energy (Existing Assets): Core portfolio consists of 58 MW across Karnataka and Tamil Nadu, with Karnataka assets outperforming in Q3 due to favorable northeast winds. Management notes that 50-60% of machines are 20+ years old but can operate for 50+ years with proper O&M and periodic repowering.
- Solar Expansion: The company received Karnataka government approval for a 4 MW solar project to be executed via a subsidiary (Nova Power). This segment is intended to balance wind seasonality, as solar generates power during daytime hours and lean wind quarters.
- O&M Services: Management is transitioning its internal O&M team into a dedicated subsidiary to offer services to third-party owners. This strategy aims to leverage their 30-year expertise and existing cost-saving model (15% cheaper than outsourcing).
Company-Specific & Strategic Commentary
- Capital Structure Realignment: The authorized share capital is being increased from ₹175 crores to ₹275 crores to support an overseas bond issue of up to $70 million for debt resolution and growth.
- Strategic Investments: The Board approved a ₹57 crore investment for a 20% stake in EverOn Power (19 MW assets) and a ₹10 lakh investment in Nova Power to facilitate long-term PPAs with commercial clients.
- Hybridization & Repowering: Focus is shifting toward solar-wind hybrid projects in Tamil Nadu following new government guidelines to maximize capacity utilization of existing land banks.
- Asset Life Extension: Management plans a recurring capex of approximately ₹5 crores every two years for repowering moving parts like gearboxes and blades to sustain 50-year asset lifespans.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Project Completion | 4-6 Months | Timeframe for implementing the 4 MW solar project in Karnataka. |
| Dividend Payout | “Very Soon” | Management indicated a potential move toward dividends given the swing to PAT positivity and improved cash flows. |
| EPS Target | > ₹1.00 | Current EPS is ₹0.50-0.60; management aims to exceed ₹1.00 through inorganic acquisitions and solar park projects. |
| Solar Park | 100 MW (Long-term) | Evaluating a large-scale solar park project subject to ongoing feasibility studies and approvals. |
Risks & Constraints
| Risk | Context |
|---|---|
| Seasonality | Wind generation is highly volatile across quarters; Q3 is traditionally a lean period which pressures EBITDA margins due to fixed electricity board charges. |
| Fixed Operating Costs | Transmission and distribution charges are paid per MW to the Electricity Board regardless of production levels, impacting profitability during low-wind months. |
| Asset Aging | Over half the fleet is 20+ years old; while management claims a 50-year life is possible, this requires disciplined repowering capex and technical efficiency. |
| PPA Renegotiation | Commercial customers occasionally negotiate for better pricing as new renewable capacities enter the market, though management leverages long-term relationships to mitigate this. |
Q&A Highlights
Seasonality & Depreciation
- Question: How should investors assess profitability given wind seasonality? (Sakshi Jain)
- Answer: Wind has two seasons (9 months total); profitability should be viewed annually. The company provides 80% of annual depreciation in Q1/Q2 to stabilize reported PAT in lean Q3/Q4 periods (Bala Venckat Kutti).
Inorganic Growth & Acquisitions
- Question: What is the status of the 5.1 MW acquisition? (Ishita Nagesh)
- Answer: The company is acquiring a 20% stake in EverOn Power, which is more profitable. Completion is expected in Q1 FY27 to be funded via internal accruals (Bala Venckat Kutti).
Operational Efficiency
- Question: What is the benefit of the O&M subsidiary? (Ritesh Seth)
- Answer: Internal O&M saves 15% vs. outsourcing. The team can handle any turbine make (e.g., Suzlon), providing independence from OEMs and potential third-party revenue (Bala Venckat Kutti).
Subsidiary Strategy
- Question: Why use an SPV/subsidiary for the 4 MW solar project? (Ganraj Turani)
- Answer: The SPV structure allows 26% equity participation from commercial/hospital clients, enabling 15-20% higher tariff realization compared to selling directly to the government grid (Bala Venckat Kutti).
Key Takeaway
Indowind Energy reported a stable Q3 FY26, returning to profitability with a PAT of ₹0.35 crores, while 9M FY26 revenue grew by 21.61% YoY to ₹35.49 crores. The quarter was characterized by strategic balance sheet strengthening, following a successful ₹49.42 crore rights issue and board approval for a $70 million overseas bond issuance. Operationally, the company is diversifying its wind-heavy portfolio by entering the solar segment (4 MW project) and exploring 100 MW solar park opportunities to mitigate wind seasonality. Strategic focus remains on inorganic growth through a 20% stake in EverOn Power and the professionalization of its O&M division as a separate revenue-generating subsidiary. Management is targeting an EPS exceeding ₹1.00 and has hinted at potential dividends as debt levels normalize and new capacity stabilizes. Investors should watch for the timely execution of the Karnataka solar project and the impact of the proposed repowering policy in Tamil Nadu on aging assets.
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