Indowind Energy Ltd (NSE: INDOWIND) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Unidentified Speaker
Bala Venkat Kutti — Promoter
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, good day and welcome to indow Wind Energy Limited Q3 and 9 months FY26 results call hosted by Kiran Advices Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sakhi Panji Yara from Kiran Advisors Pvt. Ltd. Thank you.
And over to you ma’. Am.
Unidentified Speaker
Thank you on behalf of. Thank you on behalf of Karen Advisors. I welcome you all to the conference call of Indo Wind Energy Limited. From management team we have Mr. Bana Venkate Kutti, Promoter. Now I hand over the call to Mr. Valak Venkate Kutti. Over to you sir.
Bala Venkat Kutti — Promoter
Good day everyone and thank you for joining us today. On behalf of Indo Wind Energy and as a promoter, I extend a warm welcome to all investors, analysts and participants attending this call. We truly appreciate your time and continued support. Q3 and 9 months FY26 have been focused on strengthening our operating platform while laying the foundation for the next phase of growth at Indobi. During this period we took meaningful steps on both the operational and financial fronts to support sustainable expansion. On the operational side, the company got Karnataka government approval for setting up a 4 megawatt solar project.
In addition, we successfully completed the rights issue during the period raising 49.42 crore which has strengthened the balance sheet and enhanced financial flexibility. Building on this development, the board approved key strategic and financial measures to strengthen the company’s capital framework and support long term growth Subject to necessary shareholder and regulatory approvals. These include an increase in authorized shared capital from current 175 crore to 275 crore. A change in the pattern of utilizing the right issue proceeds through subsidiary for increasing the returns. Approval for an overseas fundraise of up to 70 million for bond issue including exchanging some of the current pending resolution bond and an increase in borrowing power slew 1500 crores to provide additional financial headroom for growth.
The board has already proposed selective investments to strengthen the operating structure including a proposal to invest up to 10 lakh in Nova Power Private Limited to make it a subsidiary through which we plan to implement the 4 megawatt solar project by involving the customer for a long term PPA. Time to invest rupees 10 lakh to incorporate a new subsidiary for O services to invest up to 20% equity in your own power which has about 19 megawatt operating renewable energy assets and project EPC capabilities amounting up to rupees 57 crore to make it an associate company which will help us to capture their turnover as well as the profits for the consolidation in the consolidated results for the future growth.
Together these proposals reflect a measured and disciplined approach as the company prepares for its next phase of growth. Now let me just walk you through our financial performance for Q3 of 2026. Our consolidated revenue stood at 6.19 crore compared to 5.89 crore in Q3 FY25 reflecting growth of about 5%. The company has returned to profit by reporting a path of 0.35 crores during the quarter under review as compared to a loss in Q3 FY25 highlighting the improvement in overall profitability during the quarter and also thanks to the good monsoon this year windy season for the nine months ended FY26 consolidated revenue increased to rupees 35.49 crore registering at 21.61% year on year growth.
EBITDA grew by 29.39% to rupees 16.98 crores compared to 13.13 crore in nine months FY25 with EBITDA margins improving to 47.86% from 44.98% net profit for nine months. FY26 stood at 7.5 crores reflecting a 24.32% year on growth year growth while net profit margin improved to 21.17%. These improvements were supported by improved operating performance and disciplined cost management. Looking ahead, we believe Indovent is well positioned to pursue steady and sustainable growth. The operating environment for renewable energy continues to remain supportive and we are encouraged by the long term demand for clean and reliable power. With our deep operating experience, strong OM capabilities and continued focus on asset performance, we are confident of maintaining momentum in the coming quarters.
Our priorities remain centered on disciplined execution, prudent capital allocation and long term value creation. As we move forward with our planned investments and evaluate growth opportunities across wind, solar and allied segments, we aim to strengthen strengthen our operating platform further and improve overall profitability. I would like to thank our shareholders, customers, lenders and our employees for their continued trust and support. We look forward to updating you on our progress in the periods ahead. Thank you once again for joining us today and we will now be happy to take your questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may Press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, will wait for a moment while a question queue assembles. Participants who wish to ask a question may press star and one. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchstone telephone.
The first question is from the line of Sakshi Jain from Blue Peak Health Partners. Please go ahead.
Unidentified Participant
Hello, Am I audible? Yes, please like Given the seasonality in wind generation, how should investors assist the sustainability of profitability going forward?
Bala Venkat Kutti
As you all know, the wind has here in India to two seasons Southwest and northeast we almost have about nine months of wind. Basically now from May to October is the first season. Southwest is the stronger one and December January we have northeast season. But over the period now the different kinds of machines there are low wind also producing machines have come with the high capacities. So now the profitability for a typically for a wind company should be seen on a yearly basis. When you see quarterly basis it may look little different on QR for the each quarter but overall for the year it will be.
It will give a full picture for the year. But still we are now in Indo wind. We are making properly because we are now in the industry for 30 plus years. We make the. You know some provision like depreciation in accordance with the production. Instead of going by pure calendar year we go by. You can see from our Q1 Q2 result we would have provided almost 80% of the depreciation for the year in the first two quarter itself. So it will bring some kind of uniformity, you know in a profitable dis. Second now we are adding solar only for this.
So that solar works in a daytime. It is work on a. You know it balances the profitability for the all the quarters. So this is hope this explains the question answer for you.
Unidentified Speaker
Okay, so like so what specific actions are being taken to reduce quarterly volatility and improve earnings consistency.
Bala Venkat Kutti
Like one we we have now done as I said. One is an accounting where we provide a different maximum depreciation in the Q1 Q2 so that Q3 Q4 what we will see is only the revenue and variable whatever variable and the fixed expenses not the depreciation etc. So it will use one way balance. And two we keep the now the solar whatever we are adding we are trying to bring them the to bring it and stability for the Q3 cube score. Also to have the continuous the Turnover may come down in Q3 but the profitability we are trying to maintain in future.
Unidentified Speaker
Thank you sir. That’s also my thank you. Thank you.
Bala Venkat Kutti
And we are also planning something more, more new, new area like a capacitor, you know the battery storages which will help us to store some energy and then keep doing it. We are looking at way forward for a power trading option where you know we can get the powers buy from market also and then keep them and sell it so that our revenues also continuously grow. That’s in future. So. But at the moment wind and solar we are this year is you know under planning.
operator
Thank you. The next question is from the line of Mahesh from BYT Capital. Please go ahead.
Unidentified Participant
Hello, can you hear me?
Bala Venkat Kutti
Hi, good afternoon. Yes please.
Unidentified Participant
So I wanted to know like were there any specific wind sites or assets that outperformed during this Q3 and like what drove that performance?
Bala Venkat Kutti
Okay. Q3. One site in our Palawara Valley in Karnataka. In fact it has given, you know in this northeast wind it has given a better production comparing to generally. But this effect of this quarter results is a combination because last year we acquired some asset like five few wind farms, operating assets, etc. So their, their result also is now showing in the current Q3 as well as the overall nine months. And this year the wind also has been season is better than last year. So all this together is given as a better way.
Unidentified Participant
Okay. Okay. And like how much of the recent improvement should be attributed to better wind conditions like versus internal operational efficiency.
Bala Venkat Kutti
But this year I think almost like about 10, 10 to 15% totally. You know we are still having two more months to go. So it may balance out to be around 10 12%.
Unidentified Participant
Okay. Okay, fine. For now I’ll join back if I have any more. I’ll come back. Thank you.
Bala Venkat Kutti
Thank you.
Unidentified Participant
Thank you. The next question is from the line of Vidhi Purohit from Phoenix Capital. Please go ahead.
Bala Venkat Kutti
Hi Vidhi. Yes, hello.
Unidentified Speaker
Hi.
operator
Hello Ma’, am. There’s some disturbance on your audio. There’s some disturbance on your audio. Can you hear us?
Unidentified Speaker
Hello.
operator
Yes, ma’. Am.
Unidentified Speaker
Okay. So despite higher revenue in Q3, margins came in weaker. So could you help us understand which cost, I mean cost line items like O and M grid grid losses, interest or any of like held back margin expansion or. And should we expect these pressures to ease in FY26.
Bala Venkat Kutti
This Q3 there is now since we are selling power to all the private customers, we have to pay the electricity board fixer charges based on the capacity every Month. So that is the major expenses. Today when the wind is lean season, the top line is less. But still we have to pay the per megawatt, you know the cost charged by the evs. So that is our only item. Otherwise the salaries, everything is uniform. They are all covered. So now we are very well breaking even that on operating cash level, even covering the DB expenses. The marginal increase in the profit will start once we have the higher generation now.
So this is the impact what you see. But overall if you see it comparing to last year I think we had a path of only around I think three, three and a half crore. But this year we are way ahead because of the acquisitions and whatever we have been, you know clear the loan. So the interest cost has come down. So they are all combined effectively. So we’ll be definitely much better than this. We, we probably will be in a position to declare dividend also very soon.
Unidentified Speaker
Okay, so after the 49.42 crore rights issue and 5. Point a 5.1 megawatt acquisition, what kind of annual PLF is required for the company to remain pad positive?
Bala Venkat Kutti
Whatever we are now achieving is part perfectly positive. Now we are only trying more this, you know, the acquisition, the investment, all the thing is to add other kind of revenue. For example we want to do a Nova Power as a subsidiary for the expanding 4 megawatt solar in Karnataka. Only to bring in long term customer into the structure. Because as per the government guideline we need to give them a 26 equity and we got a better realization. So that will also help to improve the profitability and gps. Similarly we are looking at Y and M subsidiary now.
Ynum subsidiary if we also because there is a huge capacity already running in the country, we are thinking we’ll add also more people and then start probably offer these services to other owners. Also since we are planning for a solar path expansion not only for the solar farm, we are looking at options to put up a higher solar part. So these are all going to basically looking, you know we are looking at the marginal profit additions only to improve the eps.
Unidentified Speaker
Okay, thank you sir.
Bala Venkat Kutti
Thank you.
operator
Thank you. The next question is from the line of Vinod Shah from VERSUS Ventures. Please go ahead.
Unidentified Participant
Hello, I’m audible.
operator
Yes sir. You’re audible.
Unidentified Participant
Yes. Good afternoon sir.
Bala Venkat Kutti
Good afternoon.
Unidentified Participant
I just have like couple of questions. So like our Q3 performance appears soft softer compared to the strong 9 month numbers. So is this like largely seasonal or were there any like one off items in Q3?
Bala Venkat Kutti
Pardon me, I didn’t get the properly the question.
Unidentified Participant
Yes, Q3 numbers.
Bala Venkat Kutti
Yeah.
Unidentified Participant
Number in overall. So this like like softer quarter. So is this like seasonal or like one of item Was there in Q3?
Bala Venkat Kutti
No, no. It is purely because of the season. Right. The main win season is over. In the October 15th Target was there. Then November was a lean season. And December 15th around that the main season again an RP season started. So it will be. It is purely because of the lean season.
Unidentified Participant
Okay. And sir, our like EBITDA margins were under some pressure in Q3. So like is this like going forward? How will this evolve?
Bala Venkat Kutti
It is not under pressure. I will say EBITDA margin. It is the nature. Like we are. That’s what I explained in the previous question. The EBITDA operating profit level. We are very much making money. It is covering the cost. And there is a picture charges of by ebs. They charge on a monthly basis rather than on the production basis. So we are obligating telling the government also you can do. But then they are going by the calendar month. So you will see a little bit of higher. Higher, you know, expenditures with respect to transmission and distribution costs.
Otherwise the company is very much into, you know, operating profit level now.
Unidentified Participant
Okay. Okay sir, if I have more join back the queue. Thank you.
Bala Venkat Kutti
Okay. Thank you.
Unidentified Participant
Thank you. The next question is from the line of Ishita Nagesh, an individual investor. Please go ahead.
Unidentified Speaker
Hello.
operator
Yes ma’. Am.
Unidentified Participant
Please go ahead. I just wanted to know. We have recently announced that we have acquired a 5.1 megawatt operational buying project. So what is the status of that project?
Bala Venkat Kutti
And okay. We have. We have signed an agreement to buy 5.1 megawatt as well as we are going for a 5.1 megawatt solar expansion. So now we are as we explained probably we will complete the solar project first. The acquisition, we want to keep it Maybe in the Q1 because we are acquiring a 20 stake in the company in Navarro which is more profitable for us going forward. So we are keeping it for the next quarter because we have to fund it through the internal accruals. But it will be. But they are all happening. But they are happening for the next year.
Profitability. You will see the. The improvements due to all this.
Unidentified Speaker
Thank you.
Bala Venkat Kutti
Thank you.
operator
Thank you. The next question is from the line of Gandraj Torani and Advisor. Please go ahead. Gunraj sir. You may speak now. Conrad sir. Due to no response, we move to the next participant. The next question is from the line of Ritesh sir from Oakland Capital. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity. So. Good afternoon, sir. So my question is sir, how does the current O and M strategy help improve turbine availability, efficiency and cost control?
Bala Venkat Kutti
Okay. In the beginning we build our own Y and M team. So basically we are able to control and at least about 15% savings in which otherwise if we had outsourced the wind the only company SWJLAN project, the rating megawatt in Karnataka. We are out, we are given it to them. So this is giving us one more confidence that we ourselves can handle any kind of mission. Because we have a random team. If anyone is not able to, you know, kind of the you cannot work this kind of threatening or something will not be possible.
We have our own people. So we can run any machine now in the world. So that is the strength itself. Plus apart from the cost saving. And also we can same side, we can add more, you know same team size. We can add little more or we can also now look future, look forward providing these services to small people who have one or two machines also we can maintain them. So this is working on a cost effective as well as more confidence of handling any kind of machines.
Unidentified Participant
Okay. Okay. So the. The last question I have is just, just if you could just let let me know like what are the top operational priorities management is focusing on over the next two three quarters.
Bala Venkat Kutti
One is we want to complete this solar project what we have started now. That is our priority number two is we are evaluating. We engage some company like it called to visit all our land banks and V machines and give us more suggestions for what we can do to utilize them much better than what we are today. For example, you know, all know that data centers are coming in a big way in the country. So we are evaluating if we can kind of provide this yes small land bank with our shoulder power supply for a 24 by 7 power supply.
Because we have our own winds working solar farm working. We could even add some power battery storages depending on the need. So this is something we are evaluating seriously. And for more particular to your question because you are talking next three or four quarters. One is always to have the appeal of the best efficiency and machine availability to complete this expansion project. Three, the Tamil Nadu government has now announced repowering, refurbishing and solar hybrid policy rules guidelines. So we are looking at wherever we have a less. You know the capacity utilization for a capacity allocated to us by the ed.
We are trying to add a solar hybrid project. We are discussing with the authorities for getting the modalities on how to do go about. So these are the priorities for the three quarters so that our first goal is how soon we reach the EPS beyond 1. We are at point 5.6 level ups now. So we want to shareholders to really see that full value and more than the EPS will be better than the. You know, what a Bank of Dera is etc.
Unidentified Participant
Okay. Okay. Thank you so much sir. I’ll join back.
Bala Venkat Kutti
Okay, thank you.
operator
The next question is from the line of Gandraj, Torani and advisor. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. I have a couple of questions with me. I’ll just start with the first one.
operator
Sir, sorry to interrupt. There is some disturbance on your end. Yes.
Bala Venkat Kutti
Yeah, you’re audible please.
Unidentified Participant
What exact.
operator
Sorry to interrupt you sir. There’s still a disturbance on your end. Can you please use the handset?
Unidentified Participant
Okay. Am I. Am I audible now? Is it okay?
Bala Venkat Kutti
Yeah, it’s better. Yes.
operator
It’s better. Yes.
Unidentified Participant
So I’m asking like what. What exact commercial activity will the proposed subsidiary undertake that cannot be done within like when it’s expected to break even.
Bala Venkat Kutti
Okay. In the wind has already got an approval for this solar project. Now if you do intervene name we have to sell the power to the under the third party mechanism or the government. But the priority is very. You know, only whatever is fixed by the government around 340 level. Whereas if you go through this SPV structure it’s a small capital company. We will ask a corporate or a hospital or a commercial client. Like what we are doing in Tamil Nadu now in Karnataka so that there they will be we will able to realize the higher realization at least 15, 20, 20% more than what we get purely it is a one subsidiary.
So the entire top line income everything is going to be reflected in the consolidated results of intervene. So as such it is only for improving the revenue and the profits.
Unidentified Participant
Okay. So like when are we expected to break even?
Bala Venkat Kutti
Like break even which one? This. We are already breaking even now the solar project expanding project is again it will break even from the day one because it is a. Whatever, you know side the operating cost are very less in the industry. So we are very much much above direct events now.
Unidentified Participant
Okay. And also will any capital raise to be deployed into subsidiary or associate with like before the returns from the core wind acid like state. Right. And what is the maximum capital exposure management?
Bala Venkat Kutti
No, no, I didn’t you. There was some disturbance the subsidiary only for the 4 megawatt project. What we do right now and after completing we will see if that customers want more power then we’ll keep adding. But the entire thing is to. To Be funded by Indo Wind only from internal accruals as well as these rights issue proceeds.
Unidentified Participant
So what is the maximum capital exposure?
Bala Venkat Kutti
We are willing to take capital exposure to the subsidiary.
Unidentified Participant
Yeah, like before the.
Bala Venkat Kutti
We are good.
Unidentified Participant
From the core activities.
Bala Venkat Kutti
We are again voices your voice is getting.
Unidentified Participant
Before the returns of the core activities Stabilization.
Bala Venkat Kutti
It is a core activity. Before you are saying before the core activity when the project is very much stabilized. Now what happened? This expansion project it can take four to six months for implementing. So that entire thing will when you start earning. From the day one it is stabilization only. It’s a solar industry is now proven. The panels are whatever we are ordering. They are all already warranty guarantees are available. So we will know once it is completed from the day one we will know what is it producing. So we’ll update you at that time.
Unidentified Participant
Gotten. Okay, thank you.
Bala Venkat Kutti
Thank you. Thank you. Thank you.
operator
Thank you. The next follow up question is from the line of Mahesh from BYT Capital. Please go ahead.
Unidentified Participant
Yeah, hello, can you hear me?
Bala Venkat Kutti
Yes, Mahesh.
Unidentified Participant
Yeah, thank you for follow up opportunity. So what like I wanted to know what is the remaining useful life of your core wind asset and like how much capex will be required over next three to five years to like keep them operating at current PLFs.
Bala Venkat Kutti
Okay. As I just explained, we have appointed a separate team and it got as an agency to also analyze all these aspects. Basically the about 50, 60% of the machines are now 20 years plus completed and the bigger machines are around 14, 15 years. So we have a comfortable residual life. These machines, theoretically they were telling it will work for 25 years but now we could see they can work for 50 plus years also once you maintain them properly. The only thing is cost of economics. We have to analyze because of the inflation and the production.
When there are higher technology, better efficient machines are coming. So we have a land land and infrastructure. We will evaluate economically whether we can do the repowering or refurbishing based on each machines when some trouble comes. But at the policy level, as you asked Brownie macro level, these machines are can work for 50 years plus. So we want to improve them maybe every year or once in three years by providing additional, you know, repowering CapEx could be like we have about now 658 megawatts. We are becoming 60 megawatt hoping to expand further. So on an average maybe we can assume.
Sorry, on an average maybe we’ll be providing around 5 crores capex once in 2 years. Because they are all stable parts. The tower the infrastructure is there. The only moving parts are generator, gearbox, sometime the blade. So whatever you have seen in the last five, six year annual reports, they are kind of written off only in three years. Whatever you have done the, you know, recovering or anything we do, they get repaid in one year, one and a half year time itself from that machine. When a machine, assuming it we extend the light, anything happens a gearbox when it can work for another seven year, 10 years, we are just buying it a new one which comes back in one season itself.
Main season, one year.
Unidentified Participant
Okay, got it. And are any of your PPAs up for renegotiation or expiry in next few years?
Bala Venkat Kutti
Okay, yeah, yeah. Now there is always a market, you know, the customers send. There is more and more capacities are coming up in the country with the government, whatever push given to this renewable industry. So many people are having surplus money. They are also creating capacities. So there, yes, the customers every year they also come back to us asking for something better. So we look at the government, but on the contrary, the government keeps increasing the power prices. So it will be. We periodically negotiate. But we always offer the customer the choice first what he want.
We’ll try to accommodate and keep them 20 year. We are the customers are with us. We are only giving it to the their requirements. So we don’t see something like we don’t have a customer situation because we have more than 50 customers often off coming and giving powers. But yes, they keep negotiating and periodically on price front. Okay, thank you. Thank you.
operator
Thank you, ladies and gentlemen. You may press Star and one on your touchtone telephone to ask a question. The next question is from the line of Riya Shah from Orient Capital. Please go ahead.
Unidentified Speaker
Hello?
Bala Venkat Kutti
Hello. Yes, hi.
Unidentified Speaker
So the rights issue received strong participation. What does this signal to management about investor confidence?
Bala Venkat Kutti
The rights issue. Proceed. You are asking what do we want to do with it?
Unidentified Speaker
We have received a strong participation. So what does this, yes, management about investor confidence?
Bala Venkat Kutti
Yes, we are in fact very happy and thankful to the investors. We are feeling very confident because on our own we have some risk taking capacity. Now this participation over subscription has given us kind of more strength, I would say. And after this many, many bankers, many people are asking us wanting to provide more facilities. So that way we are kind of more confident, thankful to them as well as now. It is going to help us, you know, to achieve the goals in a much aggressive way. Growth also in a bigger way.
Unidentified Speaker
Thank you. Also, if you had to summarize, what would you say are management’s top three priorities for endowment in FY26 in the next for FY 2026 management.
Bala Venkat Kutti
Yes. And there were a previous question like this. Number one is to maintain whatever our existing assets in the best way and efficiently the keep them operating and producing. And second is of course the customers we have to keep them also happy and continuing. And third one is the expansion project what we are doing and 4 megawatt we want to complete 4 focus on that so that they’re going to add as a sizable revenue and the earning improvements for the shareholders. And over and above that we are looking at few acquisitions which are operating assets.
Because our goal is first to cross the profitability and the EPS growth. So we are looking at inorganic acquisitions. A few of them in the next year and organic way. We are looking at a bigger project like a solar park to set up a hundred megawatt solar park. But there is subject to certain things what we have initiated now.
Unidentified Participant
Okay. Okay. Currently that’s all from my side. I’ll wait back in the day.
Bala Venkat Kutti
Thank you so much. Okay.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press Star and one. Participants, if you wish to ask a question, you may press Star and one. Ladies and gentlemen, if you wish to ask a question you may press Star and one. As there are no further questions from the participants I now hand the conference over to Ms. Sakhi Panji Ara for closing comments.
Unidentified Speaker
Thank you everyone for joining the conference call of Indobar Energy Limited. If you have any further queries you can write to us@restankingadvisors.com Once again, thank you everyone. Good day. Thank you sir.
Bala Venkat Kutti
Thank you so much all of you. I can leave now. Sachi. Sorry.
operator
On behalf of Kiran Advisors Private Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Bala Venkat Kutti
Thank you.