Inox Wind: Is Inox Wind positioned to deliver long-term gains after recent surge? – News Air Insight

ET Intelligence Group: Shares of Inox Wind, a manufacturer of power turbines used for wind energy generation, have risen nearly 8% since the company announced results on August 14, reducing the three month fall to 19%. The company has raised its margin guidance for the current financial year to 18-19% from the earlier 17-18%, buoyed by a strong order book, expectations of faster project execution and capacity expansion.

Additionally, on Monday, the company stated in an exchange filing that the credit rating on its long-term banking facilities was upgraded to ‘AA-‘ from ‘A+’ reflecting lower credit risk.

The management expects to achieve the FY26 execution guidance of 1.2 gigawatts (GW) with a likely faster execution in the second half of the current financial year. It completed 146 megawatts (MW) of execution in the first quarter ended in June.

The company has also kept its FY27 execution guidance of 2GW unchanged. It had an order book of 3.1 GW at the end of June, providing revenue visibility for two-three years. The company has attributed the improved margin outlook to recent operational enhancements. It has commissioned a new 1,200 MW manufacturing unit in Gujarat, deploying high-capacity cranes at project sites, and begun operations at the transformer facility under Inox Renewable Solutions.

These measures are expected to speed up project execution and support superior profitability compared with the industry average. In addition, Inox is setting up a new facility in southern India.

This plant will improve access to wind sites across Karnataka, Tamil Nadu, and Andhra Pradesh, further strengthening execution timelines and efficiency. The company completed a rights issue of ₹1,249 crore last month, strengthening its cash position.JM Financial in a report stated that the recent Central Electricity Regulatory Commission (CERC) circular on hybridisation of existing transmission infrastructure is expected to improve execution, providing the company access to nearly 10GW of plug-and-play infrastructure. CERC in its March 2025 draft amendment to the Connectivity and General Network Access (GNA) Regulations proposed to allow wind energy projects and energy storage systems to use the electricity grid during ‘non-solar hours’ when solar power is unavailable. This move allows for more efficient utilisation of the inter-state transmission system as wind power can fill the gaps when solar power is not available.

JM Financial has maintained a ‘buy’ rating on the stock with a revised target price of ₹158 from earlier ₹154. The stock was last traded at ₹147.5 on Monday on the BSE.