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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