Inox Green Energy Services Ltd (NSE: INOXGREEN) Q1 2026 Earnings Call dated Sep. 01, 2025
Corporate Participants:
Unidentified Speaker
Anshuman Ashit — Head of Investor Relations
Kailash Tarachandani — Group Chief Executive Officer
Sanjeev Agarwal — Chief Executive Officer
S.K. Mathu Sudhana — Chief Executive Officer
Analysts:
Unidentified Participant
Sudhanshu Bansal — Analyst
Anshul Thakkar — Analyst
Nidhi Shah — Analyst
Bhavik Shah — Analyst
Kapil Malhotra — Analyst
Bhavik Bhavsar — Analyst
Shweta Dikshit — Analyst
Ketan D. Gandhi — Analyst
Prateek Giri — Analyst
Presentation:
Unidentified Speaker
It.
operator
Ladies and gentlemen, you have been connected to YNOX event and our next Green conference call. Please stay connected. The call will begin shortly. Participants, please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to the Inox Wind and Inox Green Q1FY26 earnings conference call hosted by JM Financial. 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 signal and operator by pressing the star key followed by zero.
Please note, this conference is being recorded. I now hand the conference over to Mr. Sujanju Bansal from JM Financial. Thank you. And over to you sir.
Sudhanshu Bansal — Analyst
Thank you, Steve. Good afternoon everybody. On behalf of JM Financial, I welcome you all to the Q1FY26 earnings call of Inox Trend and Inox Green Energy Services. For today’s call we have with us the leadership team of both the Companies led by Mr. Devanshin, Executive Director, Inox GFL Group. Mr. Kailash Tarak Chintani Group CEO, Inox GFL Renewables Business Mr. Akshay Jindal Group, CFO, Inox GFL Group. Mister Sanjeev Agrawal, CEO, Inox Vint Mr. S.K. mathu Shudhana, CEO End of Screen. And other senior management of both companies. I will now hand over the call to the management for their initial remarks after which we will open the floor for Q and A session.
Thank you so much sir for your kind presence and giving us the opportunity to host the call. With this I would like to hand over the call to Anshaman for taking the call forward. Over to you Anshaman.
Sudhanshu Bansal — Analyst
Thank you.
Anshuman Ashit — Head of Investor Relations
Thank you.
Anshuman Ashit — Head of Investor Relations
We’ll first have the briefing from Mr. Kailash Sarakandani, the CEO of the Renewables business. And then we’ll move on to a briefing from Mr. Sanjeev Agarwal on Inox Win. Then followed by Inox Sven. We’ll have a short brief on the development in inox screen by Mr. S.K. mattusudhana. And finally to give you an overview on what have we been doing across the group. We have Mr. Devan Shen to teach.
Anshuman Ashit — Head of Investor Relations
You all about it.
Anshuman Ashit — Head of Investor Relations
After which we’ll open the floor for the question and answer session. Sir, we’ll begin with your opinion.
Kailash Tarachandani — Group Chief Executive Officer
Thanks Anshua. Thanks Sudanshu. Good evening everyone and thank you for joining today’s conference call. As you will appreciate, the company was under publicity restriction, went to the right issue at the time of Q4FY25 and Q1FY26 result announcement the Right Issue has been a phenomenal success with one of the highest over subscription in recent times at 2.13x. We sincerely thank all our shareholders for reposing their faith and confidence in the company and its growth prospects. The company’s balance sheet and net cash position has been further fortified with the fundraise. Also the promoters having fully subscribed their entitlement of around rupees 560 crores showcases their commitment and confidence in the company.
The entire NCRP’s on the balance sheet now stands eliminated post the merger of IWEL and IWL and the Promoter’s participation in the Right issue. We have kept a single investor call for both Inox Wind and Inox Green this time around and will begin with a brief from both the CEOs and our executive Director followed by Q and A. As you all are aware we are hosting this call after a period of six months and during this time we have witnessed multiple development in the company and the industry be it delivering one of the strongest operational and financial performance in our history in FY25 best ever pack delivered in quarter four, operationalization of our new nasal plant and transformer manufacturing unit, deployment of our own cranes and of green moving into solar O and M, completion of the merger and write issues amongst others.
On the macro front, the recently notified ALM for wind as well as wind component is a huge positive for domestic players like us. Further, just yesterday the CERC notified the amendment to its connectivity and GNA regulation for interstate transmission system align hybridization of existing solar and wind transmission project having capacity upwards of 50 megawatt. To brief you on the development in Inox Wind and the industry, I would now like to hand over the floor to Mr. Sanjeev Agarwal, CEO of the company for his remarks. Thank you.
Sanjeev Agarwal — Chief Executive Officer
Thanks Kailash. It’s a pleasure to interact with our esteemed investors and analysts through this call. I’m delighted to be leading Inox, the wind manufacturing arm of Inox GFL Group. I’ll first brief you on our financial achievements during the quarter before informing you about our other key developments and future roadmap. We are pleased to inform you that we have been able to deliver yet another quarter of Strong results in Quarter 1 FY26 despite Q1 being seasonally a weak quarter for wind industry typically. The typically for the wind industry including our own company H1 is 30 to 35% of our annual execution having commenced FY26.
On a strong note, we are very confident of achieving our execution guidance for FY26 of 1.2 gigawatts which is 1200 megawatt. I will briefly take you through some of the key details of our financial performance for quarter one FY26 on consolidated basis. Inox Wind has reported that a revenue of 863 crore which is an increase of 32% YoY basis EBITDA of 220 crores an increase of 39% on YoY basis pack of 97 crore, again an increase of 134% YoY basis cash profit of 186 crores, again an increase of 168%. We executed 146 megawatt during this quarter.
We have very well diversified order book of 3.1 GW comprising of bicube clients across the spectrum and a healthy mix of turnkey and equipment supply contracts. Our endeavor over the past year has been to build on our existing relationship to get more repeated orders and in case of new customers to get our first orders however small or large it may be as it is important to break through to build a long term relationship and ensure repeat orders. In the future. We expect to gain a fair share out of the opportunities coming in from our existing and potential customers, most of.
Sanjeev Agarwal — Chief Executive Officer
Whom have been very ambitious have a.
Sanjeev Agarwal — Chief Executive Officer
Very ambitious Renewable additional plans. Currently we have a multi gigawatt order pipeline and expect to convert a substantial portion into firm orders over the coming months. To achieve our target both in terms of execution and margins, we are continuously ramping up in the critical areas. We have recently operationalized our new 1200megawatt capacity nasal and hub manufacturing unit near Ahmedabad, Gujarat. We’ve also deployed the first few set of cranes at our project size and have commenced our transformer manufacturing facility as well, all under Inox Renewable Solutions. We are confident that these initiatives will aid faster execution and deliver higher than industry average margins.
With that we are raising our margin guidance to 18 to 19% for the full year FY26 from 17 to 18% earlier. Further, we are strategically expanding our grade manufacturing capacity and are in process of setting up another facility in south part of India.
Sanjeev Agarwal — Chief Executive Officer
This will improve our access to the.
Sanjeev Agarwal — Chief Executive Officer
Sites in the southern states of Karnataka, Tamil Nadu and Ambar Pradesh. We have recently raised 175 crores at INOX Renewable Solution at a valuation of approximately 7,400 crores. Further, the scheme of demergers of substation business from Inox Green and subsequent margin into Inox Renewable Solutions has received no objections on the stock exchanges and we have filed the scheme in NCLT as well. We expect the approval to happen within next two to three quarters. On the macro side, the outlook remains strong. I believe the government continues to stand firmly behind the wind industry. This is just this is not just desirable but a necessity given the thrust to replace conventional fossil fuel based power with renewable sources.
While solar will continue to lead this space, wind will continue to play a significant role in giving its complementary to solar and generation during non solar hours and in wind role in grid balancing and making efficient usage of the transmission network. There is also some sort of a myth that Solar plus BSS will completely replace the conventional power without much roll of wind. However, this is not right understanding as this is not a this is not a correct understanding as BSS is only a storage resource and not a generating resource. 16 hours of BSS is still not financially viable which is why wind role in RTC set up is critical and will remain critical.
The recently notified DCR for wind through A11 is a very strong boost for local manufacturing as bringing in a level playing field between the domestic manufacturers and certain Chinese players who are importing components today. This is very positive move at the right time and we believe that India supply chain is self sufficient to cater to the incremental demand coming due to this policy. I know having a largely domestic supply chain expects to be a substantial beneficiary of this policy. Finally, just yesterday the CRC notified the amendment to the connectivity and the GNA regulations for the Interstate Transmission system allowing hybridization of existing solar and wind transmission projects with capacity of spurt of 50 megawatts.
This opens up a large opportunity for IRSL as our project type infrastructure post hybridization with solar now increases multiple times. I would like to hand it over to S.K. matthusudhana, CEO of Inos Green for his remarks.
S.K. Mathu Sudhana — Chief Executive Officer
Thanks Sanjit and Kailash. Good evening everyone. I am pleased to inform you that INOC Greens has been able to deliver a very strong Q1. I will firstly brief you on our financial achievements during the quarter before moving to other aspects. During Q1 FY26 Consol line of green reported total income of rupees 98 crores up by 79% year on year basis EBITDA of rupees 48 crores up by 61% year on year basis Profit before tax of rupees 33 crores 17.5x times year on year basis Profit after tax of rupees 22 crores up by 4.4 times year on year basis Cash pack of rupees 44 crores up by 140% year on year basis.
Our EBITDA margins came at around 49% for the quarter. As we have always maintained, our other income mainly comprises of value added services which we provide to our customers which are beyond the scope of the services we provide under the contracts. During the quarter, the machine availability for entire portfolio averaged around 95.6. Inox Green added approximately 1.6 gigawatt peak of solar O and M contract to its portfolio in the month of April to May 2025. Our move into Solar O and M has been strategic given that one of our group companies has recently commenced solar module manufacturing and the imminent large scale opportunities for hybrid RTC FDRE projects.
Our total renewable O and M portfolio stands at approximately 5.1 gigawatt. Additionally, we signed an agreement for the comprehensive O and M of 182megawatt of wind projects of one of India’s largest diversified conglomerates. As well, Inox Green is rapidly expanding its portfolio through both organic and inorganic means. On acquisition, we are continuously working with multiple parties on large scale opportunities. We have made investments in an entity around 2 gigawatt of O& M assets and shall keep on looking for such opportunities to expand our portfolio inorganically as well. Further, we are participating in multi gigawatt scale wind and solar momentum tenders of ipps as many of the large companies have now changed their strategies and are now moving out of capita Wyndham to outsourcing model where we believe Inox Green has an edge given its strong credentials.
Finally, with a scheme of demerger of substation business from Inox Green, its subsequent merger into Inox Renewable Solutions, receiving no objection from the stock exchanges, we have now filed a scheme in NCLD Ahmedabad. Once this scheme is approved by the ncld, the gross block of around rupees thousand crores will be off our balance sheet and subsequently the depreciation of approximately rupees 50 to 55 crores annually will be eliminated thereby increasing the PBT by that amount. It will also lead to significant improvement in the ROE and ROCE of Inox Green. We expect the approval in the next two to three quarters.
I will now hand over to Our Executive Director Mr. Devansh Jain for his remarks after which we will open the floor for the Q and A. Thank you. Thanks Matul. At the outset I would like to thank all our investors for reposing their faith in Inox Wind time and again. Your support drives our vision to make Inox Wind even stronger in all aspects While Kailash, Sanjeev and Matu have have already briefed you all on the recent developments and the outlook for our respective companies, I would like to reiterate that all our past initiatives as well as all our future actions are taken with just one goal.
It should be beneficial and value accretive for the company in the long run. Our wind business is stronger than ever today and is ramping up very fast. While we continue to deliver on quarterly basis. Our targets and guidance for all our businesses are on an annual basis and we are staying firm on our execution guidance while increasing our margin guidance as we have consistently delivered superior margins and are confident of achieving 18 to 19% EBITDA margins for the consolidated wind business. While wind manufacturing is on a very solid growth platform built over the years, Inox Green is where I’m extremely bullish on in terms of exponential growth which would start kicking in from this financial year as we ramp up our portfolio multiple times from 5 gigawatts currently to about 17 gigawatts over the next two years.
While 17 gigawatts will have a mix of both solar and wind assets, wind will form the majority of the pie. As promoters, our motivation is to create and enhance value across our group companies and and always be mindful of all our minority shareholders. Case in point being the merger of IWEL with iwl, our IPP arm and the solar manufacturing business under Inox Gleam are also shaping up very well and the synergies between Inox Clean’s businesses with Inox Wind, Inox Green and Inox Renewable Solutions are quite unique and beneficial for all. Backed by the large capacity targets of Inox Clean, we expect further orders for Inox Wind, EPC opportunities for Inox Renewable Solutions and long term O and M service opportunities for Inox Green both across wind and solar.
Today I can proudly say Inox DFL Group is one of the deepest and most integrated energy transition groups in the country with a presence of across wind, solar EVs, energy storage and a large IPV planar. Our renewable arm is extremely solid, capitalizing on opportunities and capable to withstand any challenges, regulatory or macro if they were to come. I believe our group’s renewable arm and particularly Inox Wind continues to be strongly positioned to capture the mega opportunities which lie ahead of us and will continue to create enormous value for all our stakeholders. Given that the industry is moving towards round the clock re projects at Inox GSL Group we have strongly positioned ourselves to be a one stop shop for all our customers offering solutions right from plain vanilla to the most complex projects across wind, solar infrastructure development and O and M services.
We can now open the floor for Q and A.
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 touchstone telephone. If you wish to withdraw yourself from the question queue you may press Star and two participants are requested to use hands head while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ansel Thakkar from Lalkar Securities. Please go ahead.
Anshul Thakkar
Good evening gentlemen. First of all, congratulations on the successful completion of the merger of IWEL into IWL and very successful rights issue. It is also very encouraging to note that the recent demerger of the evacuation business from IH RESL into IRSL has seen no objections and given that our company has experienced so many corporate actions I have a specific query regarding our subsidiaries which are Inox Green Energy Services and Inox Renewable Solutions formerly Vesco. Sir, As I recall Mr. Jindal had mentioned in the past that the management will demerge these two subsidiaries albeit those proposals were at a nascent stage.
So my question is on a longer term strategic view what is the management stance on the possibility of rationalizing these subsidiaries via demergers into the hands of the IWL shareholders? So Inox Wind Limited shareholders will likely get IG RESL and IRSL by demerger. I wanted to know the management’s view on this and what would ideally under what circumstances would this set be considered?
S.K. Mathu Sudhana
Yeah, thank you for firstly recognizing and.
S.K. Mathu Sudhana
Understanding the.
S.K. Mathu Sudhana
The achievements of the company so far. As I mentioned to you last time the attempt was to demerge the substation.
S.K. Mathu Sudhana
Business and the connectivity and common infrastructure.
S.K. Mathu Sudhana
From Inox Green into Inox Resco as.
S.K. Mathu Sudhana
We call it now.
S.K. Mathu Sudhana
Inox Green Energy Solution Ltd. Under that there would have been an automatic, automatic listing of Resco and to that extent the shareholders of Inox Green would be getting the shares of Inox Resco also.
S.K. Mathu Sudhana
So when we mention about the demerger.
S.K. Mathu Sudhana
Of the businesses it was the merger of the of the infrastructure assets and getting into that Inox Resco and the Resco in turn will get listed let’s say attempt and which is what now.
S.K. Mathu Sudhana
We have got all the necessary approvals.
S.K. Mathu Sudhana
The NCLD process has started and we hope that within two to three quarters this all will be achieved and the shares could be issued for NF also.
Anshul Thakkar
Sir, I recognize that that is what has been achieved but more as a Strategic question. I want to know, would the management ever consider demerging Resco and Inox Green Energy Services to the shareholders of IWM at a future date?
S.K. Mathu Sudhana
No, I don’t think we can answer that question at this point in time. But clearly both of them are integral parts of Inox Wind and for valid reasons, I see no reason why we would be demerging them out of Inox Wind. They both will constitute an integral part and will continue to be owned and held by Inox Windows. And I think from a shareholder’s perspective, a shareholder has got now a choice to hold any part of the business. He can hold the ONM business, he can hold the infrastructure business, he can hold the entire value chain together underwind.
So that way, I guess, there’s no need for any other further corporate action. As management, we have provided enough and a window for a shareholder to be present where he wants to be. And I think that was the intention of separating these businesses.
Anshul Thakkar
Notice it. Thank you so much and all the best.
operator
The next question comes from the line of Nidhi Shah from ICICI Securities. Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my question. So my first question is on the execution for Q1FY26. You see that the execution is up only 4%. Was there any reason why there is this low level of execution? And given that the first quarter has been slightly weak, what do we expect for FY26? Are we still keen on our previous guidance?
S.K. Mathu Sudhana
I’m not sure where you got the 4% number from.
Nidhi Shah
In megawatt terms. 4%.
S.K. Mathu Sudhana
This quarter? On quarter, yeah. But effectively, I think how we would look at it is we would always look at it year on year. And I think if you look at it on a year on year basis.
Nidhi Shah
So this year Q1 it was 146 megawatts. Last year Q1 it was 140 megawatts.
S.K. Mathu Sudhana
Yeah.
S.K. Mathu Sudhana
Hi.
S.K. Mathu Sudhana
So can you reiterate your question? I’m sorry, we’re a little confused.
Nidhi Shah
So this quarter in Q1, FY26 megawatts executed with 146 in Q1 FY25 execution was 140 megawatts, which is roughly a 4% increase in the megawatt execution of WTG. So I just wanted to know why this execution slightly lower.
S.K. Mathu Sudhana
So, again, I think if you broadly understand, we’re for H1 being about 35%, H2 being about 65%. And I think we’ve clarified on record, we’re well on track for full year guidance, why numbers seem A little lower, as you would see, is because effectively what we focused on is more execution on the ground completing complete sets. Because last quarter, if you had noticed Q4 of the previous financial year, we had a mismatch in terms of blades and towers. And we’ve tried to correct all of that over this quarter. Rather than just supplying turbines for the sake of announcing megawattage, what we’re increasingly focusing on is complete tax, more execution on the ground and working capital efficiency.
And that is what is driving the numbers which you talk about to be only 4%, even though EBITDA scaled up much higher. And that numbers are much higher.
Nidhi Shah
So my understanding from what you said is broadly that when you, when you record these megawatt execution, that is only when the turbine leaves the factory and then the the entire procedure would actually be installing the turbine as well. Is my understanding correct?
S.K. Mathu Sudhana
That’s right. But in certain contracts, for example, but in certain contracts, for example, we get paid in parts by way of where we can just dispatch nacelles, we can dispatch towers, where we can dispatch bleeds. And in effect we announced it last year as well, where we had certain amount of incomplete sets. What we’ve tried to do over this quarter is completely clear up that backlog. And while you speak of a 4% growth in execution, if you would look at our cash pack that’s going 168%. If you look at our pack, that’s not 134%. So I would urge you to look at the financial numbers then just pair metrics of megawatts.
Sanjeev Agarwal
So I said with my statement that we are well poised to achieve our 1.2 gigawatt of planned execution in this year. The strategy was as what Jeevans just said, strategy for the quarter one was to complete the incomplete set which has gone in quarter four, the execution at this point in time, why we say that H1 is lower than H2 is typically we take care of the monsoons. If you see where we are working, these are the state of Gujarat. Typically the biggest state that we are working majority in time is Gujarat. When we go in quarter 2, quarter 3, we will move to south part of India.
So these climatic conditions also needs to be taken care of and you decide your existence. So once again reiterating that we are well poised for 1.2 gigawatt of our planned execution. The strategically quarter one was H1 is always weak and H2 you will see our.
Nidhi Shah
So to that effect you mentioned that some of sums sets were incomplete in Q4 that were provided that has then been, you know, completed in Q1. So when is it reflected in the. In the execution? At what stage do we then include it? Because from what you’re saying, it seems like it was already. The set was accounted for in Q4, but it was completed in Q1.
Sanjeev Agarwal
As per the accounting. You know, we account for nasal date and tower separately. So once we supply the nasal part, we recognize our revenue for natal. So what Sanjeev and Mr. Dimash is saying is that whenever we supply the component, we recognize our revenue. So in quarter four, we have supplied larger WT large metal and hub as compared to blade and tower. In this quarter, we have completed these sets. Hence our revenue recognition has been done accordingly.
S.K. Mathu Sudhana
And I think just to hit your question will be more in terms of execution. So we’ve got a what a mix of. Maybe we’ve got a mix of turnkey and equipment supply. So with respect to equipment supply contracts, once we’ve supplied, it’s a function of those guys executing on ground. And when it comes down to turnkey, you typically have a two to three quarter lag from supply to commissioning these assets.
Nidhi Shah
Secondly, the margin this quarter is significantly higher from what we’ve seen over the last four quarters. Is there something that you would like to call out specifically this quarter and what kind of margins can we expect for the rest of the year?
S.K. Mathu Sudhana
I think we’ve clearly guided. Sanjeev has reiterated that, Kailash has reiterated that, and I did reiterate it as well that we are upping guidances for this financial year to 18 to 19%. If we do better, it’s good. But we are not. I mean, we’ve already upgraded guidances. If you may recall, even in the last six quarters, we had upgraded guidances almost three to four times. And after two quarters, we further updated guidance at this time and we’re sticking to 18 to 19%. If we do better, good for everybody. If we achieve the numbers we set out to achieve, I mean, I think everyone should be happy with that.
Nidhi Shah
All right, my absolute last question would be in Q1, they think that the difference between the consolidated and the standalone revenues is about 100 crores, which is a lot higher than what we have seen for the last three or four quarters of this. I understand the 50% comes from INOX Green. And so where is the other 50% coming from? What is it specifically this quarter in the revenues that we’re seeing that is.
Sanjeev Agarwal
Coming from Ionos Green as well as Vesco. So, you know, as. As you. The INOS Preliminary has two subsidiaries Resco and Inos green. So numbers are flowing from the green as well as the Resco side.
Nidhi Shah
So only thing is for FY25, right when we do the same calculation then we’re getting sort of negative numbers obviously I’m assuming that is some inter segmental revenues, intercompany revenues that you’re negated there. But this time it higher revenues.
Sanjeev Agarwal
You know, customer to customers, PSU customers, you know, give all the contracts to iron of wind which in turn you know, supplied by the Resco and Inoff Green. Where are the private customers? Give the three different contracts. So it is, you know, if, if you require further details we are happy to connect you separately. Separately. But the essential part is coming from the Resco and as well as green.
S.K. Mathu Sudhana
If I may just advise for everybody on the call given that these results were announced more than two and a half weeks ago for any specific micro queries it will be better if you’ll get on calls with our investor relations team because they’ll be better prepared. I thought this was more a call where we were giving more qualitative inputs into the future of the sector, the future of the company rather than getting into Microsoft because these numbers are out there for the past three weeks. It’s not been announced today. Morning.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to answer questions from all participants please limit your questions to two purposes. The next question is from the line of Vikash Agarwal, an individual investor. Please go ahead.
Sudhanshu Bansal
Hello.
Unidentified Participant
Am I audible? Yeah, I just want to ask, given the industry segment, I just want to ask what is the growth trajectory going two to three years onwards into wind and what could be the factor drawing deriving the demand as if is it possible there is a driver beyond the India 500 gigawatt mission and can we put a figure to it and how would it shape up and what is the present challenges we would see and how are they shaping up? I mean I hope I’m able to get the message through.
Kailash Tarachandani
Thanks Akash. I think right now it’s a very gumbo about the industry and all. We can see that it’s going in full speed. What we see there should be if I see only when 5% gigawatt we see within the same year going upwards towards 7 to 8 gigawatt and eventually possibly 8 to 9 or may touch 10 gigawatt also there’s a clear vision till 2030 what country needs to achieve and we may, you know Obviously target is 90200 gigawatt by 2030 so it could be 70, could be 80. But we are looking finally at the rate of 8 to 9 gigawatt.
If I have to say, you know, from a broader perspective, from that point of view, the nine of swing paths, we have clearly said we are executing 1.2 gigawatt this year and possibly taking it to 2 gigawatt next year. And we’ll continue to see that. We are, you know, again, as I said, market share, we have said earlier, market share is not a primary concern for us, but overall we would like to remain as a major player and keep those kind of target in place for us.
Unidentified Participant
No, I just want to ask as in everyone is saying 500 gigawatt theme and everyone is looking at it. I mean, is there something beyond that? I think does it end at the 500 gigawatt target that by FY.
Kailash Tarachandani
Is total? If you see from when it is 9200 gigawatts.
S.K. Mathu Sudhana
Correct, yeah, it is not stopping at 2030. Obviously there will be growth beyond 2030 as well. In terms of GDP, in terms of power demand. There may be some new sectors also which may scale up if the green, hydrogen and all. So but that is some time away. Let’s wait for the target which we have right now to be achieved and then we probably have more clarity going ahead.
Unidentified Participant
Just one more thing, like regarding Ionos green, like for Ionos green, we maintain that the per megawatt relies in generally 8, 8 lakhs per megawatt and there is a margin, we maintain that 45%. So solar is a relatively new segment and I think in the previous call we discussed it, but it was said whenever we launch it, we discussed. So can we just, are we now in a position to discuss what could be the realization per megawatt in solar and what could be the margin that we are looking at in the solar segment? In a solar O1M segment.
S.K. Mathu Sudhana
I think, I think we have addressed the same question last time as well. So basically solar project, it depends on the scale of the project. If it is a 10 megawatt, if it is 100 megawatt, if it is a 500 megawatt single location per megawatt prices changes. So it ultimately depends to the margin. So somewhere between the industry is varying between 15 plus minus percentage of the revenue of the solar megawatt peak. So we are, we actually since we have lot of synergies within the group, so we will do much better than that. That is on the solar.
S.K. Mathu Sudhana
Just to give you some clarity on what we achieve in terms of Revenues per megawatt. So broadly for wind it varies from 8 lakh to 10 lakh rupees per megawatt in terms of revenues and the margins are 45 to 50% for us and for the solar part broadly, 2 lakh rupees per megawatt is the revenue which we have across all the 1.6 gigawatt of portfolio with us. And broadly the margins are at around.
S.K. Mathu Sudhana
20% for this portfolio.
Unidentified Participant
Can I just put in one more question if I may.
Unidentified Participant
Yeah.
Unidentified Participant
Regarding the wind sector, what is the present challenges as in whatever reports we read and whatever articles we see, I think they are very negative about the sector. And why is it so? Because we don’t see anything negative about it. Even we understand the simple logic that bass is not financial economically possible and we see wind as a part of the total pie. So why is the whole thing isn’t anything that any particular development that is pushing back the sector or they’re putting a negative stance on a sector.
S.K. Mathu Sudhana
I’ll just answer this very quickly. I’m not sure where you are reading negative report but fundamentally I think wind is booming. The government is pushing doing more and more. I think the targets are to be north of supreme gigawatts a year. We’re probably guiding for five to six this year moving up to seven to eight and then 10. Last year we did about four and a half gigawatts which was about 140% growth compared to the previous year. Four and a half to six should be another 40% growth. So I think fundamentally I’m not sure.
Sanjeev Agarwal
Where you’re reading negative articles.
S.K. Mathu Sudhana
I think on the contrary, it’s only positive articles. Second, if you’re talking about vest, the entire market is now moving towards RTC projects where you have wind, solar, hybrid battery has become competitive but from a grid stability perspective from larger power being fed into the system during non solar hours renewables wind is the cheapest source of power and to that extent you’ll increasingly see more and more wind going into the great aspect battery also kicks into kicks into the system which is becoming increasingly more competitive. So that’s what the reality is.
Unidentified Participant
Thank you. As a one more thing in Ionos green as in whenever the ion of wind executes a particular project it get gets added to the ion of green. So when does the revenue started flow starts to flow in in of green. In regarding to that particular asset for.
S.K. Mathu Sudhana
Solar are you asking about.
Unidentified Participant
No for the wind wind part? If you can answer for recognize the.
S.K. Mathu Sudhana
Revenue right away as per the accounting policies cash Flow starts from after the warranty period elapses which is two years.
Unidentified Participant
Payment is made by inoff wind as in is including the cost of the turbine and in past on separately.
S.K. Mathu Sudhana
I think this is a question which we’ve addressed multiple times. We can have a separate discussion.
Unidentified Participant
Okay, thank you.
S.K. Mathu Sudhana
Can we have just two questions because I think the question queue is pretty long so we can ask two questions for participants please.
operator
Okay, sure. Sir, the next question comes from the line of prananjay Maheshwari from SSL. Please go ahead. Mr. Maheshwari, your line has been unmuted. Please go ahead with your question. As there is no response we’ll move on to the next question. It’s on the line of Bhavid Shah from Invexa Capital. Please go ahead.
Bhavik Shah
Yeah, hello sir. So my question is receivables and inventory days are still quite high. So what is the guidance for say FY26 at what levels are we comfortable with?
Sanjeev Agarwal
So in terms of the revenue and in terms of the guidance which we have already provided earlier, the working capital, net working capital days would be somewhere around 120 odd days which we, which we continue to maintain our debtors and as an inventory as we have retreated we will be declined as we do more and more execution as our payment terms is like this that you know some payment has received on the, on the commissioning of the wtgs. So we are maintaining our guidance of networking capital. Date of 120 days.
Bhavik Shah
Okay. And sir, Inox Green when we say we are going to scale it from 5 to 17 can you share the mix of say solar and wind and also what portion, what portion will be in from inorganic? Do we have any guidance there?
S.K. Mathu Sudhana
No Bhavik, we don’t give specific guidances and as we said wind would be a majority part of that equation. But we will not be giving spreading that out in more details.
Bhavik Shah
Understood. And the last question on order inflows in Inox Wind, what kind of order inflows are we looking in FY26.
S.K. Mathu Sudhana
Today.
Kailash Tarachandani
We have 3.1 to 3.2 gigawatt which covers broadly our CL. We are continuously engaging our customers. Most of our private customers are renewed customers. From that point of view we have also bidded large. I would say PSU tendering, some of them are expected over next one to two quarter maximum. So in coming time you know you will see quite a few announcements as we close the final contracts and get the advances also then only we announce this. So that’s there for some time.
Bhavik Shah
So what is the bottom of the.
operator
I’m sorry to interrupt. Mr. Bhavik, please come back in the queue for further question.
S.K. Mathu Sudhana
Sanjeev wanted to ask Bhavik.
Sanjeev Agarwal
So let me complete that statement. Bhavik, this is Sanjeev. So you said where are we expanding? I would say we are expanding both horizontally and vertically. And when I say horizontally, I said in my statement we want to retain our existing customers. Whoever has been who has been our customer keeps on coming back to us based on how we perform for them. So our strategy remains that the existing customers should always be there whenever they plan. We discuss much in advance. And vertical is to bring in more and more customers. You must have seen our first quarter announcement.
We brought First Energy, the Sumex Group in our fold. So endeavor remains, remain with existing commerce and keep on expanding our portfolio bringing new customers. Thank you, Bobby.
operator
Thank you. Next question comes from the line of Kapil Malhotra from an individual investor. Please go ahead.
Kapil Malhotra
Thank you so much. I just wanted some more clarification on the execution guidelines for the year though you know, sunlight has already already been put on it. So we did 146 megawatt. The overall target is the guidance is 1200 and typically last two years. What I have seen from the reports is it’s a 4060 kind of a split and not a kind of 3565. But even if we assume 3565 which means roughly 275 megawatt to be executed in Q2, I just wanted some kind of, some kind of a guidance that more or less things would be in the similar lines.
S.K. Mathu Sudhana
33% is 400. You need about 250 but it’s about 3365.
S.K. Mathu Sudhana
We are on track for what we’ve stated in our initial remarks as well. So 35% is broadly the first of execution guidance out of the 1200 megawatt which we’ve guided for the full year. And we feel we are on track for it.
Sanjeev Agarwal
And an just to add up that that is not 35 is a 680 number that is ranging from 30 to 35%.
S.K. Mathu Sudhana
So you know, plus minus 2 3%.
Sanjeev Agarwal
Can come on a quarter on quarter here and there. So as Mr. Sanjeev has retreated again and again that we are in line with 200 megawatt of aggregation and you will see, you know, ramp up in quarter three, quarter three onwards at a.
S.K. Mathu Sudhana
You know, look, I think you’ve clarified it of times. I think over the past two years we’ve gone from 100 megawatts to about 750 megawatts. And I think, you know, we are not fixated about plus, minus 50 megawatts. So let’s not hold that. You know, to the caller, I think Sanjeev and Kailash must have been very, very clear. We are well on track for about 1200 megawatts. Whether we did 400 or we did 380 or whether we did 430, it really doesn’t matter. I think we have the supply chain. We have the orders, we have the execution going on on the ground.
So I think we’re very confident as a company to achieve 1200 megawatts over the course of the financial year.
Kapil Malhotra
Right, thank you so much. My second question is I think we’ve got an overall capacity of 2.5 gigawatts now. Best case scenario, in case we get more orders in the coming year that the growth is there. Assuming the same capacity, I’m sure the capacity itself would be would get added on. Assuming the same capacity of 2.5 gigawatts. What is the best utilization numbers, utilization percentage numbers that one can expect from the same capacity.
Sanjeev Agarwal
So Kapil, this is Sanjeev here. I would not put a percentage there but I would like to say to all our investors, you know we have, we have a 3.1 gigawatt of order backlogs to be executed at this point in time. Capacity to execute on our shop floor stands at 2.5. I also said in the statement that our new vessel plant in Ahmedabad has been been commissioned. Now we have a Trafalgar factory in Jaipur again commissioned. We are now planning to open up a new factory in south part of India. I think all these combined capacities would be operation.
I mean are operating at 100% capacity utilization and we are looking at more and more avenues to produce and to satisfy our customers. In terms of faster execution, I think the goal has been set to beat the industry in terms of how can we move faster and execute it better so that you know we are being looked at some type of a market leader and execution.
Kapil Malhotra
Okay, thank you.
operator
The next question comes from the line of Ketan Panchal, an individual investor. Please go ahead.
Unidentified Participant
Hi orders growth.
S.K. Mathu Sudhana
Firstly on your question on the previous year achievement. So let’s just not be fixated on the megawattx. In terms of the EBITDA and the PAT achievements. It was much higher than what we had guided. In fact in terms of EBITDA margins also what we had started with was around 15 odd percent. Then gradually moved on to 16 17% for the full year of FY25 and we achieved much higher than that for the full year basis. So as we’ve been stating, let’s not be just fixated on the megawattage numbers that can change. In fact if you look at our execution on a year on year basis, last year was 376, FY24, FY25 it was almost doubled and FY26 targets almost 66% higher.
Then again 66% higher guidance for FY27 as well. So we are moving at a very rapid pace. A quarter here and there, 51 megawatts here and there can happen and that’s just part and parcel of what we do in our business.
Unidentified Participant
And what about order book growth, sir?
Kailash Tarachandani
No, I think we already replied on that. We already have 3.1, 3.2. These are already what is all marketing plans.
Kailash Tarachandani
Believe in building up our relationship such.
Kailash Tarachandani
A way and as customers keep doing, you know, repeat business, we are also growing vertically in terms of finding it’s not about arrogance but we finding the right customer who are fully financially capable. You know they can execute many times the perception of when is when is difficult to execute. Why it happens because lot of just new RTPs are not able to execute. We believe in taking the right partner, right selection and as I said we have also bidded Quite a few PSCs so I don’t think order booking is running or any kind of problem right now.
We expect a lot of orders to be announced over the next few months.
S.K. Mathu Sudhana
Your voice is not audible. A lot of disturbance. Can we go to the next.
operator
Yes sir. The next question comes from the line of Pavik Bhavsar with Investec. Please go ahead.
Bhavik Bhavsar
Hi sir, so can you talk about the upcoming bid pipeline in megawatts and.
Unidentified Speaker
Are they SECCHI or state bids?
S.K. Mathu Sudhana
See so if you see between April and July around 12 to 15 gigawatt of TPAs were signed. So at April we had around 40 of pending PPAs with projects which were already awarded but PPA is not signed and that number declined between 25 to 30 odd gigawatts. So what we feel is that this 10 gigawatt which spans hybrid, some plain wind and solar as well will come into the fold over the next quarter or so because it takes generally three months for all these developers from the PPA to get the financial closure done and then they award the contracts to.
S.K. Mathu Sudhana
The likes of us.
S.K. Mathu Sudhana
So that is what we believe the pipeline will be and as we stated 5 to 6 gigawatt is what we expect the overall capacity addition to be in terms of rent in this financial year.
Kailash Tarachandani
Just to add for our customers. Client. I think there’s a fair balance between ESU C and I market as well as some of the clients who are doing for SECHI project access. So we don’t depend only on SECI that the field already admits huge, you know 10 gigawatt plus kind of pipeline. C and I market is hot, you know in terms of still a lot of our clients which are doing cni. So we don’t see that as becoming anywhere any sort of bottleneck.
Bhavik Bhavsar
Okay. Okay, thank you. And just one more question. So is there any target ONM company that we are looking to acquire?
S.K. Mathu Sudhana
Obviously we cannot state that. I will not state.
Bhavik Bhavsar
Okay.
operator
Okay, thank you. The next question comes from the line of Krish with mlp. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the opportunity. Sir, one quick question. Sir.
Unidentified Speaker
Our full year guidance for this year.
Unidentified Participant
Is around 1200 megawatt. And you know we have, we have been saying 3565 first half which implies around 420 megawatts for the first half and we have done around 146. So are we on track to do the 275 or how should we think about it considering the heavy monsoon.
S.K. Mathu Sudhana
Just two questions that we address this. Don’t be fixated. 35, 35% is what we said but it’s not exact. It ranges from 30 to 35.
S.K. Mathu Sudhana
Okay.
S.K. Mathu Sudhana
And that is generally what the industry also. So if you see across the industry that’s the number which is there. And broadly you have to look at the annual guidance which we give and that will majorly start reflecting from Q3 onwards.
Unidentified Participant
Okay. Because the ask rate for the next 3 quarters even if 2Q does not turn out to be as strong as expected when the ask rate for the last quarter becomes very high.
S.K. Mathu Sudhana
Yeah, I don’t understand this question. I’m hearing probably for the fourth time. I mean we typically do 33%. 66%. 35, 65, 30, 70. I don’t know what the love is about. 1, 2. Frankly speaking we went from executing 90 megawatts a quarter to doing over 250 megawatts a quarter. So frankly speaking, yeah, we’re already on a one figure broad run rate at this point in time which is in the leanest quarter of the year. We already have manufacturing capacity which is in excess of 400 megawatts. We are building more blade capacity in south of India.
We’ve set up a new nacelle plant which is announced in our quarterly results. So frankly I’m unable to understand what is the log with 50 megawatts more or 50 megawatts less when we are guiding for 1200 megawatts. We’re guiding for 1200 megawatts. Last year we guided for 15% in the group, upgraded it to 16, upgraded it to 17. We ended the year with 21%. Our profitability numbers last year were 25% ahead of what we had guided in the market. So let me be very clear. At Inox, we are driven by profitability. We are not driven by just mere numbers with no profitability.
Our order books are firm agreements with contracts in place and advances in place. I mean, if you want to talk about Mous and Lois, we have multi gigawatt Mous and Lois sitting in our ecosystem across some of the largest players in India which we’ve not announced and spoken of because that is meaningless and unlike some other players in the market, we don’t want to do that.
operator
Thank you. The next question comes from the line of Shweta Dixit, the systematic group. Please go ahead.
Shweta Dikshit
Hi, good evening. Thank you for the opportunity. My one question is on the line of green, could you just highlight what has led to the increase in other income that is almost 10 times on a Y and Y basis. What is contributing to this? How do we build this going forward? How do we expect this to change going forward?
Sudhanshu Bansal
And has been given in their opening.
Sanjeev Agarwal
Remarks that, you know, other income is part, integral, part of the iron green revenue and this comes through the value addition service which is provide to our customers. Furthermore, we have invested in some of the special situation funds which in turn control 2 gigawatt of OM assets through which that income has been recognized here. So you know, as Mr. Mathu has said in their opening statement, currently we control 2 gigawatt of the O and M asset over and above the portfolio which we have shown. This other income part will continue to be there and on quarter on quarter basis and it will remain and will increase on quarter on quarter basis going forward.
S.K. Mathu Sudhana
If you have anything specific questions in.
Sanjeev Agarwal
Terms of the breakup and in terms of the details, you can.
Shweta Dikshit
That is why I probably missed the point. Apologies for that. Next, the second question, if you need.
S.K. Mathu Sudhana
Any specific numbers and how this works, I mean, get on a call with our investor relations team and I think they’ll take you through how to do the modeling for that. Yeah, okay.
Shweta Dikshit
Thank you. Next question is basically an industry view. When we look at the overall wind capacity, addition we are looking at a decline of 13% on a Q1Q on a YMY basis industry level that is 1.6 gigawatt of wind capacity that got added. However, other major players in the segment are recording growth of 60% while we are at 4% YMY growth in terms of installation are we still. Is there any potential market share loss that we’re looking at or everything is stable?
S.K. Mathu Sudhana
Just to reiterate, I think we are only at times I think we need to move beyond megawattage. Yeah, I think we need to focus a little bit on the profitability numbers as well. Our cash pack is up 168%. Our PAT is up 135. Our PBT is up 167%. I mean six megawatts. If we make this 180 megawatts which is maybe above, you know, the 16% you talk about in the industry. I mean 30 megawatts or 40 megawatts will not make us sexy. I think what makes us sexy is our overall profitability. Us beating guidances for the full year, quarter on quarter, I think that is important.
I think we did that last year. Yes, we probably missed it by 50, 70 megawatt. But in terms of profitability we were way higher than what we had guided both EBITDA and pat. This is not a question of losing market share, frankly. We’re sitting on a 3.2 gigawatt form order book. With advances paid, signed agreements will be sold out for the next two years. How much more? I mean the longest lead time you get between kind of explained multiple times in the past is that you can’t have a three or four year order book. It’s humbug.
It’s utter rubbish. We don’t want to talk about Lois and MOUS over here. I just said that on my previous question. We have multi gigawatt Lois and MOU sitting in the ecosystem across some of India’s largest corporates. That’s of no meaning to us because unless it becomes a firm binding agreement with advances in place, there’s no point adding it today. No one’s going to pay me advances for a project which will come up three years or four years from today and we solve it. The industry is being paid back then. It’s utter crap from our perspective.
We had to two years ago we had taken a lot of PSU orders. We had to move away from PSUs and diversify. We today have at least 12 large IPPs in the ecosystem. We had to move away from turnkey to equipment Supply today we’re sitting on virtually, broadly 50% equipment supply, 50% turnkey. As Kailash mentioned in his remarks, we have currently bid out for multiple PSU projects after a long time. That’s because we are diversifying our portfolio back again to more PSUs as a lot of our PSU orders are being commissioned and getting conjugated in terms of supply.
So I think frankly speaking, taking in order is the resource issues. Executing doing 50 megawatts. Frankly I don’t think we should be bothered about that. I think what we should focus on is the larger objective. We’re talking about of 700 going to 1200. We’re talking of 1200 going to 2 gigawatt. We’ve just operationalized a new nacelle plant. Why are we operationalizing that if we don’t need capacity? We’re building a new blade plant in South India because we need a lot of supplies in South India and we don’t have blades in South India. Logistically moving it from the north is not just time consuming, it also costs more money.
So I think we need to go beyond just a plain Excel sheet and looking at 4%, 3%, 8% and if you’re so fixated to that then focus on the 140% growth and 170% growth in actual profitability as well. And I’m saying this, this has been three weeks since our numbers came out. It’s not that we’ve declared our numbers today morning and you’re asking us these questions.
Shweta Dikshit
Okay, understood. Thank you.
operator
Thank you. The next question comes from the line of Ketan Gandhi with Gandhi Securities. Please go ahead.
Ketan D. Gandhi
Hi sir, in opening remark you said about there is some notification from CERC for can you throw some light on that amendment with respect to the industry, how it would be, how it would be helpful to the industry and our company. Thank you.
S.K. Mathu Sudhana
So it just came out yesterday in which they allowed the hybridization of the existing transmission infra beyond 50 megawatt at a particular location. How it helps us as a company is that across all Inox Wind Green, Inox Renewable Solutions as well as one of our companies under Inox Green, which is Inox Solar. Everyone benefits due to this because a large part of the project infrastructure which we built is currently evacuating only wind power. Now we can hybridize it and this gives us multiple times evacuation ready plug and say infra to set up the upcoming projects into so the execution then expedites because we don’t have to build new infra and Infra is already There it’s now hybridized so it’s very good.
I would say it has been coming. Some of the states had already declared it the likes of Gujarat and Rajasthan. But now that it’s in on a pan India basis it helps us expedite the project execution much faster.
S.K. Mathu Sudhana
I think also just to add, I think it gives us access to almost 10 gigawatts of plug and play infrastructure across wind and solar which is huge. I don’t think anybody in India Barring maybe one or two massive PSUs and a large Indian conglomerate have access to this kind of plug and play common infrastructure. So it’s should be game changing for us. Kailash.
Kailash Tarachandani
No, just wanted to add on what Anshuman said that this is other way.
S.K. Mathu Sudhana
Also that there are a lot of.
Kailash Tarachandani
Solar alone projects and people will look for wind along with that. So that is another piece for.
Ketan D. Gandhi
I think it will be fantastic for us and the whole industry. Thank you and all the best Devansh.
S.K. Mathu Sudhana
Thank you. I mean certainly for us given our common infrastructure the industry, those who control infrastructure will certainly benefit out of it.
Ketan D. Gandhi
Thank you sir.
operator
The next question comes from Preet Nagar Singh with wealth and Visa. Please go ahead.
Unidentified Participant
Two questions. One is with the money that gets raised are right will this result in paring down whatever remainder of debt there is while finally we have cash abusal on Sunday So do we plan to use it for that purpose or what will be the purpose of the so.
S.K. Mathu Sudhana
In terms of the proceeds from the.
Sanjeev Agarwal
Right issue, you know as mentioned in the document as well the 560 crore rupees paired on the NCP.
Sudhanshu Bansal
And the.
Sanjeev Agarwal
Balance amount will be which. Which is fully invested by the promoters upfront. Furthermore the balance amount is used for the paling of the Obviously that will increase our net cash balance as from last multiple quarters we are in net cash position which will strengthen our net cash position by you know by adding this money obviously we will look out as the other opportunities might be expanding our businesses in terms of backward integration or in terms of the future acquisitions as well.
Unidentified Participant
Got it. Okay, good to know. Regarding Inox Green the question I had is that there’s a mention of a few gigawatt capacity being added but when is this something that we can see it consolidated into the company itself? Is that something of timeline?
S.K. Mathu Sudhana
So we have not that we have.
Sanjeev Agarwal
Added 2 gigawatt capacity we invested in a special situation fund which controls 2 gigawatt of the capacity that in terms of the reflecting the same in our PNL that depending on the usual procedure which we believe it will take around another six to nine months.
Unidentified Participant
Okay, so is it safe to.
S.K. Mathu Sudhana
But the benefit of the same will.
Sanjeev Agarwal
Start reflecting in our P and L statement from this quarter. So irrespective of the fact that whether it will become or not, that will start reflecting our P and L statement.
Unidentified Participant
So it is safe to say that I remember Devansh a couple of years back and said that Inox Green will be a 6 gigawatt company wind. Specifically I’m ignoring these sort of fees right now towards the end of FY26. So this is to be the war being executed organically. We should easily surpass that number by the end of FY20. Is that safe?
S.K. Mathu Sudhana
Yes friends, we’ve already exceeded that currently. As we said, we currently have about 6 gigawatt of wind including the 2 gigawatt and we have probably about 1.7 gigawatts of solar. So we’ve probably already crossed that chart.
Unidentified Participant
That’s amazing. Coming so ahead of guidance, you also briefly mentioned a scale up, further scale up on this and there could be some multi gigawatt other bidding around it. Could you share any color on this? Any more detail?
S.K. Mathu Sudhana
Look, we’ve said, you know, we, I mean Matu mentioned that in his opening remarks and I think we reiterated that in my comments. We’re seeing we’re taking 5 gigawatts to 17 gigawatts over the next two years. When we had ipoed our vision ambition was to be a 10 gigawatt company eventually. Happy to say it’s been what, two to three years by end of this year and in broadly four and a half years you’ll be roughly 17 gigawatt company. So that’s literally 75% higher than whatever vision we set out to achieve. As you know, we already have about 5.4 gigawatts in our control.
2 gigawatts is indirectly controlled by us through the Special Situation Fund. That’s almost seven and a half gigawatt currently. Plus this year’s wind execution and next year’s wind execution plus solar execution plus strategic acquisitions which we’re looking at. So I think, yeah, as I said, I think we’re extremely bullish on Inox Green and I believe that’s going to be a massive, massive annual cash flow business for Inox and obviously for all the green shareholders. I’d like to add points in this, please. I mentioned in my opening comments that some of the large conglomerates who are having multi gigawatt portfolio have strategically changed their position from doing their self owned to outsourcing model.
So wherein we are actually in discussion and in the bidding phase with those large companies. So sooner we will get some of the chunk which will add our growth much beyond than that much faster.
Sanjeev Agarwal
Thank you.
Unidentified Participant
Amazing. That’s truly amazing. Given that both FY26 and FY20 close to 10 GHz wind capacity could come much earlier. Wonderful. Thank you and all the best. Thank you.
operator
The next question comes from the line of Pratik Giri with Shublal Research. Please go ahead.
Prateek Giri
Hello. Am I audible?
S.K. Mathu Sudhana
Yes, you are.
Prateek Giri
Greetings everyone.
Sudhanshu Bansal
Thank you for the opportunity.
Prateek Giri
Devansh, my first question is regarding your guidance to reduce the mix of equipment supply from the current 6535 to roughly around 50 50. I want to get your perspective on will it not lead to entry of newer EPC players in the sector leading to increased competition because eventually they would want to backward integrate into turbine manufacturing which will increase the competitive intensity. If you can throw some light on this Devansh.
Kailash Tarachandani
No, just to first add on that and if Devansh something I can further add on that. I think as we continue to ramp up say from 7,800megawatt to 1.2 gigawatt to 2 gigawatt now I think somewhere we have to take the advantage because there’s so many FTP’s coming and they are also developing. So this is a huge opportunity in terms of equipment supply and that’s how this ratio is changing. To save that I am reducing our pipeline or reducing our turnkey. It is not. We are continuously moving on that positive direction. We continue to get more and more plug and play getting ready.
It is only in order to take the advantage of further growth in the sector as we go today also we have huge pipelines in turnkey and we will continue to do whether it is for our esteemed customer or new customer and we do a lot of handholding with tank lot of new customers also which are coming in the sector who possibly doesn’t know, you know, in terms of doing the completely as such there’s a mix of that adding on that. But you know we are not reducing Tanzi. We are not. It doesn’t mean that you’re losing anywhere into the competition.
What you said just said that Tansi will continue to do what we are doing today at the rate of whatever 500, 600, 700 mega, whatever the right opportunity. But beyond that, since the equipment supply opportunities are coming in a large way, we continue to capture more and more market share from that.
Sanjeev Agarwal
Okay, let me add also Here. Pratik, this is Anjeev. So I think we are the, we are probably the only one left in India who has a specialization to do the complete turnkey. From getting the land, to commission it and then handing it over as a unit stack to the customer. We do not want to leave that space. This has been built over a period of time with expertise, with in house expertise. So we will continue to offer these turnkey solutions to all our customers. And when I said we retain our customer is exactly because they love us.
They love to see a single company who can take all their pains and only generate fund each the power. So this will remain as it is. It’s just that you know when we, when you grow you need to, you need to segregate, you need to expand. And one of our expansion plan is to also look at standalone supply orders. And when I say standalone supply it is just not equipment supply. We remain with the customer in terms of offering them an expert advice on how to build a plant, how to commission the plant and how to operate the plant.
So this percentage would vary depending upon the year, depending upon the order values and the percentage margin that you get. But let me make it very clear, we are extremely proud to be in this position as probably the Indian only EPC supplier in the wind industry.
Prateek Giri
I, I get that Sanjeev. Actually I just tell you where I am coming from because there’s one recent entry into the EPC space, Wind, EPC space by one of the renowned players from the crane segment. So from there I was drawing this conclusion by it. But I totally get your point man. Just one follow up on this.
S.K. Mathu Sudhana
You know I was hearing your question. You know, investing in wind turbines or getting that supply chain ready and the working capital cost thousands of crores. Putting up a nacelle plant may cost 100, 200 crores, which is a piece of cake. It’s like modules in Solar. You have 100 players who put up 100 gigawatt but that’s the lease of issues. So setting up a nacelle plant and saying I’ll make wind turbines, blah blah. The journey to have a solid technology backed turbine is minimum four years and then you need to keep upgrading as we keep taking on better products and the entire supply chain and the working capital is a couple of thousand crores.
So some guy with 100, 200, 300 crores, just making announcements and talking for the sake of talking is not what will hold true. So let’s not get excited about bullshit statements out there.
Prateek Giri
I totally get that Devans actually, you know, I’m sure in these times you would also agree that capital ultimately is a commodity. But I totally get your point on the technical aspects of it. This one. Follow up on this, Sanjeev, if we can. If this mix is going to change, should we also change the realization for megawatt mathematics which we have been building or doing it so far? 6 crore per megawatt number.
S.K. Mathu Sudhana
We’ve given you a blended number. So I think that more or less covers everything.
Prateek Giri
Understood. My last point, Devansh, I wanted to put this to you and please allow me to say this, that you know, we have noticed that shareholder returns become very uncertain when there’s a significant equity dilution which fortunately, unfortunately has happened in Inox wins case. So I would sincerely request you to remind to your team that minority shareholders are not left high and dry. You know, in spite of all good things happening in the sector and in the company.
Sudhanshu Bansal
They want.
Prateek Giri
Just a point I wanted to put.
S.K. Mathu Sudhana
Since you specifically mentioned that to me. I think we’ve been amongst the best performing stocks in India over the past five years. We have done everything in the long term interest of the company and we will continue to do whatever we think is right in the long term interest of this company. Whether it was merging iwl as promoters we did not want that to happen. As inoxman we would not want that to happen. So as a group we’ve always focused on minority. I am not going to be driven or colored by short term market apparitions and I am not driven by the fact someone entered at a higher price, someone entered at a lower price.
If you look at our CAGR returns over the past five years, we have probably been in the top 10 or 15 stocks in this country. So frankly speaking, as management, I think our team is doing whatever it takes to deliver numbers, profitability, execution on the ground. And as promoters, entrepreneurs, we are backing them and doing everything which is in the long term interest of this company. So frankly speaking, I would not hear anything about us not being able to protect minority investor returns.
Prateek Giri
No, I get that, Devansh, that was not the point. It was just that the equity dilution that has happened, the profit generated, which I am very hopeful and I am very sure which will happen in the.
S.K. Mathu Sudhana
Future because if we don’t, we will continue to do that. And again I what is more important for us is the long term growth of this company.
Prateek Giri
Certainly.
Sudhanshu Bansal
Certainly.
Prateek Giri
Thanks a lot for the opportunity.
S.K. Mathu Sudhana
Devans.
Prateek Giri
Good luck to the team. Thank you.
S.K. Mathu Sudhana
Thank you.
operator
The next question comes from the line of Nandan, an individual investor. Please go ahead.
S.K. Mathu Sudhana
Before Nandan begins, we’ll take this as the last question.
S.K. Mathu Sudhana
Please.
S.K. Mathu Sudhana
Please go ahead.
operator
Nandan, your line has been unmuted. Please go ahead with your question.
Unidentified Participant
Hello.
operator
Please go ahead.
Unidentified Participant
Yeah, yeah, hi. Congratulations on a great set of number numbers. Just two questions from my end. Number one, I understand that you’re sold out for the next two years and which is a great thing but is there some sort of opportunity loss in terms of loss of customers to a competitor? Second question is in the lines of gst. So there’s a lot of news going around about the GST rates in the renewable sector being cut from 12% to 55%. I understand the meeting is going to happen sometime this week. So do we see any sort of tailwinds due to the rate cuts? GST rate cuts?
S.K. Mathu Sudhana
Look, with respect to your first question, with respect to our schooling orders, I think Sandeep reiterated it multiple times. Kailash reiterated it. I think we are growing it both horizontally and vertically where we are building on our existing relationships and we are diversifying to newer customers. And that’s true across ntpc, CESC and Amplus. Multiple orders first Energy Hero, Continuum, nlc. So that will continue to be the strategy. Some orders, I mean we cannot be the sole supplier to any one customer. So some orders we take, some competitors take in certain new accounts customers, existing suppliers lose and re enter.
And I think that’s how it is. As I mentioned we have a very diversified book today of 1012 large customers. Customers whom we are supplying to team continues to work on newer names. So I think we are very, very solid on that. With respect to the GST rate wing cut, yes, of course it’s a tailwind because your capital costs will go down as a result, investment costs will go down. So returns could go higher or the cost of energy could go lower. Whichever way it is, it benefits the nation.
Unidentified Participant
Just one follow up question on the GST aspect. Will it have any impact from a customer point of view in terms of order influence or is it sort of neutral from that point of view?
S.K. Mathu Sudhana
I mean it will benefit the sector, right? So obviously it will potentially lead to more investments in the sector.
Unidentified Participant
Understood. Thank you. All the best for the next quarter.
operator
Thank you. Ladies and gentlemen, this was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
S.K. Mathu Sudhana
I just wanted to end this call by saying two things I’ve been hearing. I mean since our numbers came out about three weeks ago, barring the fact that there May be some micro questions which obviously most people can get on calls with our teams and get those answers. There were two specific areas which I wanted to just sort of focus on. There were questions around execution and order book and in execution, as we have.
S.K. Mathu Sudhana
Stated earlier as well.
S.K. Mathu Sudhana
Firstly, we are firm on our annual guidance of 1200 for this year and 2000 for next year. Our profitability numbers have consistently been ahead of what we’ve guided over the past six quarters. We had upgraded our guidances three to four times and we have after two quarters updated our guidances further in this quarter. I think what is important for us is profitability and we are always driven by profitability rather than someone talking about 2, 3, 4% here and there in terms of megawattage on a quarterly basis. Annual numbers are what are relevant. Secondly, with respect to the order book, for us, what was most important was to get into the most leading power producers, which was strategic.
And we have achieved that by having initial orders from leading power producers, both PSU and private, whether it was NTPC and then we got two or three orders from ntpc. In fact, I remember concerns earlier that we were only focused on PSUs two years ago. So then we refocus and spread ourselves across some of the largest ICPs, be it CEFC, be it Continuum, be it Hero, be it Amplus, be it Gentari, InoxClean, Oyster, NLC. And I think what we’re doing at this point in time is both horizontal and vertical growth where we are not just building on the existing relationships, but we continue to enter newer names.
So First Energy was one. Over the course of the next couple of months you’ll probably hear a couple of newer names which our team has been working on and is in final stages of closing out with those guys. Important is to get into one new customer and once you get in, you keep expanding with those guys. So I think just to sum it up, we’re very clear on our execution numbers and I think we’re very, very solid in terms of the current order book and in terms of the visibility of building on this. Plus the fact that we’ve participated in multiple PSU tenders after point in time to get back more volume in the PSU market.
Thank you and look forward to connecting with you all in the next quarter.
Sanjeev Agarwal
Thank you so much.
Kailash Tarachandani
Thank you.
operator
Thank you on behalf of GM Financial. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.