Inox Wind shares slide nearly 8% after Q4 results; Motilal Oswal cuts price target but says ‘buy’

Shares of Inox Wind Ltd. declined over 7% on Monday, June 1, reacting to their fourth quarter earnings. This is the biggest single-day fall for the stock in nearly three months. The stock has declined in seven out of the last eight trading sessions.On ground execution challenges, geopolitical tensions are leading to a delay in supplies and logistical support challenges, according to the company. Inox Wind also witnessed customers holding back on payments leading to a higher working capital (WC) cycle.

For the March quarter, Inox Wind’s net profit after tax fell 44% from last year to ₹106 crore compared to ₹190 crore in the fourth quarter last year.
Revenue for the quarter stood at ₹1,244 crore, compared to last year’s figure of ₹1,274 crore.Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 21.2% to ₹200 crore from ₹253 crore in the previous fiscal, while EBITDA margin contracted to 16.1% from 19.9% in the year-ago period.

The company has guided for revenue growth of 75% in financial year 2027 over FY26. Its EBITDA margin guidance for FY27 is between 20% – 22%.

Brokerage firm Motilal Oswal has maintained its “buy” rating on Inox Wind with a revised price target of ₹110 per share.

The brokerage said that the management’s strategy to gradually increase the pure equipment supply contracts’ share in the order book from 27% to 75% over time, which should improve working capital efficiency and margins, and that is something they like.

However, MOSL has cut Inox Wind’s financial year 2027 and 2028’s EBITDA estimates by 7% and 6% respectively.

Shares of Inox Wind declined nearly 8% to hit an intraday low of ₹85.61 apiece on Monday. The stock has declined 16.7% in the past month and 29.9% this year, so far.

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