Inox Wind (NSE:INOXWIND) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Inox Wind Limited and Inox Green Energy Services Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to from Navajo Inox Thank you, and over to you, sir. Thank you. Good evening, everyone. On behalf of Nuvama Institutional Equities, I welcome you all to the q one FY twenty seven results conference call of Inox Wind Limited and Inox Green Energy Services Limited.

0:56 We are joined today by Mr. Devan Jain, Executive Director, Inox GFL Group Mr. Achil Jindal, Group CFO, Inox GFL Group Mr. Sanjeeva Garwal, CEO, INOXWIND Mr. SK Mathu Sudhana, CEO, INOX Green and other senior members of the management. I would now like to hand over the call to Mr. Sanjeev Agarwal for his opening remarks. Thank you, and over to you, sir. Thanks, Vikram. Good evening, everyone. I will first brief you on the financial and operational achievements of INOXWIND for the quarter and the review as well as other key developments and future road map before handing it over to Madhu for his briefing on the development at Inox Green.

1:42 I'm pleased to inform in quarter one FY 'twenty seven on a consolidated basis, Inox Wind has reported a revenue of INR $8.72 crores, adjusted EBITDA of INR $2.37 crores, PBT of INR 95 crores, PAT of INR 64 crores and cash profit of INR 153 crores. As per our strategic initiative undertaken in the previous quarters, where we have pivoted towards increasing the share of equipment supply in our order mix, we are pleased to inform you that we are making steady progress towards this. Our operations are showing resilience post this pivot. This initiative would help achieve a healthy balance sheet as well as a financial robustness.

2:31 The strategy is expected to yield long term benefits and reflect meaningfully in the financials Q3 onwards. As of July 26, the share of equipment supply in our order book stood at approximately 59%, with the balance 40% being turnkey. This excludes order received from Inox GFL Group entities and is only for orders received from the third party entities. The virtuous cycle of interplay with Inox GFL group entities is playing out well. The growth at our group company, Inox Clean, will lead to a larger orders for Inox Wind, Inox Green as well as Inox Renewable Solutions. Inox Clean has plans to set up three gigawatt plus capacity of IPP portfolio every year.

3:24 We are pleased to inform you that Inox Wind has signed an MoU for 1.5 gigawatt. I'll repeat again, 1.5 gigawatt with Inox Clean Energy in June, out of which, firm orders have been signed for 500 megawatts so far. Form orders for the balance one gigawatt would be signed in due course of time. In another positive development in the first quarter, we have received an LOA for 200 megawatt from NLC India. This is a repeat order from NLC in the month of July through a extensive tendering process. With these, our order book stands at approximately 4.4 gigawatt. Just to repeat again, an order backlog of 4.4 gigawatt as on July 2026.

4:12 This provides us a clear execution visibility for more than twenty four to thirty six months. We are strongly placed with all our customers, including C and I, PSU, IPP, captive, that is GFL and retail. Many more tenders as well as negotiations are underway, and we are confident of securing more orders this year. Further, we have a visibility of receiving large recurring orders from Inox Clean Energy over the next few years, as I mentioned before. With respect to our 4x wind turbine model, execution is progressing well. The foundation work has been completed. The tower and other main components are ready.

4:58 We are on track to install the first prototype in the month of August, with commercial launch expected by end of FY 'twenty six. Our expansion plan, and I will like everyone to hear this with open eyes and ears. Our expansion plans in Inox Renewable Solutions Limited are also progressing well. Our operational Jaipur transformer factory is gearing up to manufacture our next bigger capacity, which is 4.9 MVA transformers for our 4X series. We also plan to further increase our traffic manufacturing capacity and including a medium sized traffic between eight to 20 MVA as well as large transformers, which is 100 MVA plus.

5:46 We also own our own fleet of cranes. Presently, we have four of them in operations and more to come in within this financial year. Beside transformers, we plan to manufacture high value added and high margin power electronic systems such as inverters, unit substations and energy capacitor systems, which is used in our wind turbines. Our U. Is expected to be commercially launched in FY 'twenty seven. All these investments have relatively relative short payback periods and will lead to revenue and margin expansions in IRSL. Further, the demerger of the power evacuation infrastructure from Inox Green into Inox Renewable Solution has been completed as on 08/01/2026, being the record date.

6:38 IRSL would now be automatically listed on the stock exchange post receipt of regulatory approvals. Coming to Inox Green, we have received the approval from Conable NCLT, Ahmedabad for the acquisition of Wind World India Limited. The acquisition formalities are expected to be completed in quarter two FY 'twenty seven. This is a milestone transaction in the renewable space, one where we expect to realize significant business synergies as we integrate the acquired business post completion of the acquisition process. We shall provide further updates on this in our next analyst call. As of June 2026, our O and M portfolio stands at 13.3 gigawatt, including investment made.

7:24 The wind industry continues to show excellent transactions traction, sorry, driven by macro tailwinds with 1.4 gigawatt wind capacity commission in India in quarter one FY 'twenty seven. The total installed wind capacity stood at 57.4 gigawatt as on June 2026. We expect to see strong annual wind capacity additions ranging between eight to 10 gigawatt over the next few years, driven by RTC, FDRI and hybrid capacity additions. In fact, out of the total renewable capacity of 9.34 gigawatt awarded through tenders in quarter one, 2.35 gigawatt, that is 25%, comprised of stand alone wind tenders alone.

8:13 The installed wind capacity in India is expected to be 7x the current capacity in the next two decades. Power demand continue to remain strong, and it is worth noting that power demand in the first four months of FY 'twenty seven so far has been the highest by far in the last four years. Inox Wind is well placed to benefit from the continued macro push towards renewable as well as for the interplay of group company synergies. I would like now to hand it over to Madhu for his remarks on INOX Green. Madhu, over to you. Thanks, Sanjeev. Good evening, everyone. Hope I'm audible. Will firstly brief you on the financial achievements of Inox Green during the quarter before moving to other aspects.

9:05 During Q1 FY 'twenty seven, Inox Wind reported total income of INR 101 crores, up by 17% year on year. EBITDA of INR 57 crores, up by 19% year on year. Profit before tax of rupees 54 crores, up by 74% year on year. Profit after tax of rupees 41 crores, up by 86% year on year. Cash back of INR 55 crores, up by 25 year on year. Mission availability for the entire portfolio averaged approximately 96.3 percentage. The operations continue to do well and have shown continuous improvements, driven by large investments and expenditures incurred in the previous year to improve the entire infrastructure.

10:00 A significant portion of operating revenues are being generated through value added services, such as turbine overalls, life extension activities, etcetera. However, as per the accounting norms, they are clubbed as other income, while they are operating in nature. Inox Grains portfolio stood at approximately 13.3 gigawatt peak as on June 2026, comprising of approximately 10.5 gigawatt of wind operating assets and the balance being solar assets. This also includes the investments made to acquire approximately 6.5 gigawatts of operational wind O and M assets, including Wind World India and one other company. As mentioned by Sanjeev earlier, we are pleased to inform you that we have received the approval from Honorable NCLT, Ahmedabad for the acquisition of Wind World India Limited.

10:57 The acquisitions formalities are expected to be completed in Q2 FY 'twenty seven, post which the financial consolidation will take place. This is a huge milestone in the journey of Inox Green and a value accretive transaction for all shareholders. We believe there is a significant scope to bring in operational efficiencies in the acquired portfolio through enhanced service offerings, price and cost optimization. Wind World India's O and M portfolio stands at nearly 4.5 gigawatts, servicing a market client base that includes Tata, Renu, Greenco Group, Aprava, Hindustan Zinc, among others. The assets are spread across key wind rich states, including Karnataka, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, MP and Andhra Pradesh.

11:46 The portfolio generated revenue of approximately $5.80 crores in FY 'twenty six and the benefits from contracted annual price escalations of approximately 5%. The integration efforts are underway. We shall provide further updates on this in our next earnings call. We expect our other investments to be also completed in FY 'twenty seven and to be consolidated in our financials. Besides our inorganic efforts, we believe Inox Green will be one of the biggest beneficiaries of the growth coming from the annual capacity additions of approximately three gigawatt plus at our group company, Inox Wind, and external projects executed by Inox Wind. So this is expected to establish Inox Wind into one of the largest renewable O and M companies globally.

12:37 We continue to see success in offering WTG or that is wind turbine overall and life extension packages to customers, which aids in increasing the life of the turbines and enhancing output. Globally, the life extension of wind turbine has been taken up to thirty five years. So typically, every turbine runs at twenty five years as a normal standard, but we are intending to increase the life up to thirty five years. So this business team has substantial potential for growth ahead. We expect to offer this service to much of the existing fleet of Wind World India o and m business as well. Further, as mentioned earlier by Sanjee, we are pleased to inform you that the demerger of the power evacuation infrastructure from Inox Green into Inox Renewable Solutions has been completed as on 08/01/2026.

13:31 As a result of this demerger, Inox Green is now an asset light O and M player with significant improvement in ROE and ROCE metrics. We will now open the floor for Q and A. Thank you very much. Thank you very much. We will now begin the question and answer session. Session. The first question is from the line of Vikash Agarwal, an individual investor.

14:17 Please go ahead. Yeah. I... Am I audible? Yes, sir. You're audible. Please go ahead. Yeah. I'll I'll... Congratulations team for a great result. I'll just bunch up whatever I want to ask so that it can be done fast. I just want to ask what is the reason for the fund raise at the present acquisition that we have. We understood that those acquisitions were funded by the previous professional issue that we had made. And, also, I would like to know management view. I mean, I know Green is a healthy cash generating entity. And wouldn't it better if he raised debt in debt and, like, cleared the sale from the short cash flow rather than equity dilution?

15:05 Also, if I... We can have a management comment on benefits from the new ALMM rule that could be seen and wind versus solar plus battery. And also, are introducing five megawatt product, and we are... So I think let me do a couple of questions because we'll miss whatever questions you're asking. On your first question is on INOXWIND, I guess. These are enabling resolutions we have done. Beyond that, we cannot comment right now as we're in the silent period. Okay, sir. Thank you. So let me also comment. There was a question about introduction of higher models of wind. Gentlemen, I said in our statement that 4x, our 4x model of wind turbine, the new one would be up in operation in August, with the commercial activity starting a month later. As we see this progressing well, we're also contemplating looking at higher models, if the demand be there in the market.

16:04 We believe our ForEx model would outclass the wind turbines in this category. Okay. And sir, could you just comment on the benefit of ALM that is going to be introduced? And when could we see the impact of the same? Yes. I'll talk about the wind. As we speak to you, almost 80% to 90% of the components that goes in winter wine for us are all indigenized, yes? The ALLM will bring the story for people who do not do this in India. But for us, this was an advantage to start with, and it will remain. The balance 10% is low lying. We are already active into the job of converting that into the Indian mix.

16:50 Before end of the calendar year, we would we hope that we are almost 100% on wind turbines. And I'm talking not only for our 3x model, but even for the 4x model. Thank you. No, sir. I'm just asking that the this will benefit us, right? So when can we see the impact of the benefits from the same? I mean, we know that we are getting indignant, and we were well prepared for it in advance. So when can we see the impact? And also, if you could comment a little bit on wind versus solar plus battery and how is it out... The outlook and what does the management feel about it given the certain market conditions? Let's restrict it to the wind story for a moment. I don't want to talk about what would other do, but we think this would give us a span of at least three years where this indigeneation story that we've initiated, there were a lot of talk, a lot of investors who said earlier, why are you putting so much of our money, so much of our CapEx in making everything in India.

17:55 But probably, we thought this could be this is very, very strategic initiative to be relying on our own capabilities. The shops have been expanded. The vendors who support us, we have helped them give a bit of a technology to make this make in India. We believe next three years, this would be something for people who have already taken a decision before. And sir, the interest cost that we are seeing right now in INOXWIND as we focus more on delivery rather than turnkey, should we see the interest cost coming down? So when you can come back in the queue, let others come in. There is long queue there. Thank you so much. Thank you. The next question is from the line of Shivam Burade from ICICI Securities.

18:49 Please go ahead. Hi. Thanks for the opportunity. My question is simple. What... Towards the execution in terms of megawatt in q one, and what is the approximate number we are looking at for FY 'twenty seven? Thank you so much. I mean, this was we changed the track two quarters before. So we do not announce anything on megawatt now. It is the number of machines that we... So we last year, you could see we have made an announcement that we'll move from the machine volumes to the revenue numbers, and that's what we've been guiding, the revenue targets and the margins there. And we'll restrict ourselves to that.

19:40 Okay. Revenue guidance and margins will be better. You can. So we remain committed. We mentioned that in the last quarter. We remain committed on our yearly revenue and margins. And we maintain that revenue guidance of 75% growth over the previous year and EBITDA margin of 20% to 22% on a consolidated is what we maintain our guidance for the full year basis. And also, you would appreciate that this is a H2 heavy business. So normally, typically, what we do is 70% to 75% of the business is captured in H2, and we maintain that. Okay. That was from my side. Thanks. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant.

20:36 Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Preet from Wealth and Wealth. Please go ahead. Yes. Hi. My question is... My first question is regarding the the blended per megawatt revenue that we would have generated for the 10.5 gigawatt portfolio. Could you please share what that number was? So what we have already guided for in the past on INOX green, the turbines that we have been doing, the blended per megawatt is 9 to 10 lakhs.

21:22 The other two investments that we have would be substantially higher from this number. But once that gets concerned, we'll give you those numbers, too. But they will be substantially higher from these numbers. So I understand that. As you mentioned in your prior calls, for just for the purpose of mathematics, for this 10.5 that you've done, should I assume I mean, nine and ten is a very large range. Is there like a number that you have? So if you see 10 gigas that you're talking about, they're still not being consolidated. Right. So the number the revenue numbers in Q1 that you are seeing is not for the consolidated operations. It's only for INOX green turbines that we were traditionally doing. The other two investments are still classified as investments, and they will get consolidated once the approvals are in place. Beyond that, I think we will not be able to comment as we are under the time that we there.

22:19 No, understood. So that's roughly about four gigawatt, right? Because out of 10.5, you have 6.5 as investments. So four is your four is the number on which the revenue has been reported. Is my understanding correct? Yes, that's correct. So on that four, what number should we pencil in for the per megawatt realization? So that's exactly what Vibhu has just mentioned. For our portfolio of approximately four gigawatts of wind, the per megawatt revenue is about 9 to 10 lakh per megawatt excluding GST for the two acquired portfolios, which are currently investments and accounted for as under IAS 109. So we will be able to do line by line consolidation of those two acquired portfolios once we acquire the shares. Right now, we it's an investment. We haven't acquired the shares.

23:10 Okay. Got you. Thank you, Shetha. The second question I had was regarding the portfolio overall wind portfolio. So what you're mentioning are only these two elements, which is the organic part as well as the acquisitions. Now INOX Clean has also been adding capacity, say the Vina acquisition or the other acquisitions that they've made. When will those capacities get reflected in your portfolio? Is there a time line to it? Could you shed some light on that? It will be over if you're talking about green, it will be over the course of time. So we have just acquired all these portfolios. But you are right, the group and that's what we've been saying, the group synergies out of INOXClean, the biggest beneficiaries would be wind, green and resco. Because what INOX Clean does and INOX Clean, we have stated publicly, that's almost three gigawatt plus kind of portfolio annually.

24:09 And all this so if we reverse three gigawatts, say, roughly 25%, 30% is wind. So that gets to wind. The entire portfolio for O and M comes to green and the entire EPC that were to be done would come to resco. So you would see all the synergies or what kind of screen is a very strategic initiative and a big, big value creator for entire group. The next question is from the line of Baobali from Investments. Am I audible? Sir. Yes. So hello, everyone. I'm an individual retail investor.

24:59 So I just have two basic questions. So my first question is, I mean, the stock has fallen from almost more than 65% from the all time high rate. So like, do you have any plans to increase promoter shareholding? No plans as of now, but we'll keep evaluating over a period of time. So there's no firm plans as of now. Okay. So my second question is, so basically, from the past few quarters, I have been observing that you have been delivering like excellent performance. The only concern is, I mean, it feels like you are forward promising and under delivering.

25:45 So I would say maybe next quarter. So can you confirm that at least a 30% increase in revenue and like maybe EBITDA margins of 20%, is it achievable at least 30% minimum? So can you confirm that? This is an annualized business. So on a quarterly basis, it will be pretty tough for us to say. As I've guided earlier as well on the call, we are maintaining and we are mindful of what you have said. There have been challenges, and we maintain that, right? Last year, because you're doing a lot of it on turnkey, strategically pivoted towards the equipment supply. And when you have moved when you take a large strategic shift, there is some disruptions, but you would see the operations have shown enough resilience to at least post flattish Y o Y results as well. Despite that, what we believe that we'll be able to achieve a 35% growth over the previous year. But yes, this is H2 heavy business, and the numbers will start reflecting in H2. You will see significant improvement in Q2 as well. But I will not be able to comment on the numbers of 30% growth over the previous quarterly basis, we cannot quantify that. But yes, on an annualized basis, that is the number we're sticking with. We remain on our guidance that we gave a quarter before for the full year.

27:08 So I mean, the reason I said 30 because so basically, I mean, I have said that in the past two years, I mean, I agree that definitely HP is greater than H1. But as we said, HP would, you know, account for more than almost 60 to 70%. That is the reason I'm just saying, at least 30% is achievable in, you know, in q two. Who does Again, we not we are not guiding. Thank you so much. We are not guiding in terms of percentage. Let me reiterate, we remain firm that we would achieve the numbers that we just mentioned for the full year. The next question is from the line of Shivam Shukla from Voyager Capital.

27:57 Hello, everyone. Good evening. I largely have questions from two friends. Basically, I just started covering this company, like, last quarter, and there are just two friends that I'm unsure, like, where I could get some clarity from you people. Is our trade receivables, they are significantly higher than our peers. And, also, I understand that this is, like, a result from our legacy EPC business also. But what I am trying to understand is EPC, which is done through our subsidiary company, these trade receivable numbers are, like, there in consolidated level as well as in a stand alone balance sheet.

28:45 I was trying to understand how these two are, like like, what's the method here to secure a EPC order and then executing it on, like, both stand alone level and consolidate level? And going ahead, how can we live? Of course, we are... I know... I understand we are trying to gradually move our order book from EPC heavy to equipment heavy, which will eventually make things better, like, at least for trade and premium in front. I was trying to understand how these two are placed on, like, both consolidated level and stand alone level. This is the first point where I would like some clarity. In terms of the receivable as numbers, this is a quarterly numbers. The receivable numbers are not disclosed as not required by the Ind AS and the LOD requirement.

29:37 But as we have guided, we are sticking to our working capital guidance, which we have provided on an annualized basis, and we are keep improving in terms of the last quarter. Our working capital cycle has been improved. In terms of the receivable numbers, per se, our receivable is accounted as per the as per the end AS 115, which is on the rest transfer basis and some part of the receivable got struck in the fee until it has got commissioned. So till it has got commissioned, the receivable got to start reflecting that receivable will show on a higher number. But as we are moving towards the equipment supply, as you rightly said, this receiver numbers will start dropping significantly. And you will see a lot of improvement in quarter two and quarter three onwards. So I will just add here. So even the receivable days in this quarter, while they have not been published, it would have shown a downward trajectory. And that is exactly one of the reasons we have pivoted towards equipment supply.

30:35 We are mindful of this, the working capital issues and to improve on our working capital issues, we have pivoted towards equipment supply. So over the course of next three, four quarters, you will see all these numbers falling out drastically and the balance sheet improving big time. Okay. Fair enough. On second front, I wanted to ask about our... The... I I know that you mentioned that our forex model is going... Like, is expected to launch on my August of this economy, like, currently right now. Like is that the understanding, right, this year, this month, August is going to be the launch for ForEx models? Yes. So commercially, it will take a month more. But yes, in terms of this operation, it will happen in a month.

31:23 Okay. So I just wanted to ask, I also just looked into our peers. Their product offering has I don't know what quantum of their product offering is coming from higher models, say, 5x models and 6x models. I was trying to understand the dynamics, the requirement and demand wise and how... Sorry to break you here. I would suggest first of all, thank you to be our investor. I would suggest that you take up separately with our relationship team. They would be able to help you understand better, not in this forum, please. The next question is from the line of Akhilesh P from North Star. Please go ahead.

32:17 Yes. Hi. Am I audible? Yes, sir. You're audible. Please go ahead. Yes. Thank you for the opportunity. Sir, I am a shareholder of your company since f y twenty three when the company first inflected, and you've done all great work, which is why, you know, the market also rewarded the company. I just want to understand what are the disruptions exactly that you are facing when you are changing the model from turnkey to equipment supply. And now the guidance which you have for the full year, the ask rate is almost 6,500 crores of revenue in the next three quarters. There's almost a 100% growth rate for those three quarters. So does this look achievable? The reason I'm asking you this is the market will reward certainty and consistency, you know that well. And I just want your perspective.

33:12 Thank you. Let me answer the second point first, Youssef. Look, there is a great difference between when you do an EPC versus when you do an equipment supply. It brings as equipment supply, we just have to bring a customer who has placed an order on us. He does the inspection, the metal moves out. We make multiple turbines in a month, and we look forward for our customers to have an inspection and take the turbines. This move this means a faster changeover and achievement of a better results, both in terms of revenue as well as cash. Yes? You said what are the disruptions? Look, the disruptions on the EPC still remain the same. They have been there for years. The ROW is bringing the equipment, sometimes the customer is not ready.

34:02 The weather also plays spoil sport. All these issues, something manmade, something beyond your control, this will continue. And that is where we made that call a couple of months back, which we say as a Vision 2.0, where INOXWIND will pivot towards equipment supply alone. I mentioned in my speech that 60% of order book today stands on equipment supply. This would mean that starting quarter three, probably end of quarter two, INOXWIND, which would see a significant change in terms of financials, both the bottom line and the cash reserves.

34:51 And sir, just one more question. Since Inox Clean is going to be an increasingly big part of our order book, just want to confirm whether the terms at which we do business with the group entity are same or similar to the terms we are doing with other entities? So great question. Great, great. So let me reconfirm this. Let me confirm, reconfirm. We do the business in a most ethical and legal binding way. So all our contracts between entities, entities are our the terms of payments, the inspections, the way we work, it's INOXWIND is a customer, yes? They are treated as a customer, they behave as a customer, they do all our inspections.

35:45 So please rest assured, clean remains a customer to INOXWIND. As much as INOXWIND is dependent on INOXWIND. INOXWIND as much dependent on INOXWIND as well. So it is not that I INOXWIND is the only beneficiary. So INOXWIND, the supplies, it gets secured supplies for minus one as well. So there's no potential pricing for any customer, be it Inox Clean or any or a third party. Thank you so much. Thank you. Ladies and gentlemen, I request you to limit your questions to two per participant. The next question is from the line of Rahul Kumar from Vicario.

36:31 Please go ahead. Hi. Am I audible? Yes, sir. You're audible. Please go ahead. Is Inox Green the other income of rupees 57.9 crore? Can you break it up between how much is the income from assets that are being acquired versus the value added services and versus the treasury income you get? So as far as the other income is concerned, majority of the other income around 57 odd crore INR 50 crore plus is related to the operational income, which includes the asset which we have acquired as well as the value addition services, the treasury the balance is towards the treasury income. Can you break INR 50 third into... This is the cost to break that down right now. We can get on a separate call.

37:21 But just to reiterate on the INR 50, this does not reflect the entire earnings of that company. As per the accounting policies, only a portion of it is what we can consolidate, that's what we consolidate it. Got it. The second question I had was, if we exclude the income from assets being acquired, then the legacy assets EBITDA level seems to be earning much lower. Is there a reason that accounting otherwise, which is causing this as you basically meet your guidance and go towards this maybe early next year? What kind of profitability is legacy assets you think will earn? Mutu, you want take that? Yes. So Rahul, see, generally, our guidance on the O and M business of wind portfolio stands at 50% EBITDA margin, and that has been guidance. And this is coming from a regular o and m contracts as well as value added services, which are part and parcel of the same package. Okay?

38:21 And this is not including any treasury income or something. This is 50% on the INOX portfolio, right, which is currently which is taken as four gigawatts. And similar to the the the portfolio which is under acquisitions, since there are a higher age limits, so the revenue is much higher and the EBITDA margin is also higher. So our... Always the guidance since several quarters, we always maintain that. Our EBITDA margin is close to 50%. And but Yes. I he was trying to figure out why we are saying 50%, why it is not reflected in the numbers for the period. Yeah. I'm coming to that. I'm coming to that, Viduk. So so in some quarters, some of one time expenditures, some infrastructure enhancement, some life extension activity, and the the cost involved will be slightly vary. That is what would generally it happens. So that's what we mentioned in the opening remarks also.

39:19 But rest assured, it is 50% as the guidance we always make. Also, if I could just add, sir, as Matu has mentioned in his opening comments as well, there were a lot of expenses that we incurred, which is reflected in the plant load availability as well for us. So we have been doing a lot of expenses through the previous years. Also, some of the expenses that we incurred for value added services, which were not being billed, but were being expended by us. Going forward, there will be separate billing for all these value added services, like light extensions for all these services or major overhaul of turbines end of ten years, eight years or fifteen years. All those while they were being expanded, they were not being built separately, which is the right way to do it. And you will see it getting reflected from this year onwards.

40:17 Thank you. The next question is from the line of Bhagwat from Prosperity Wealth Management Private Limited. Please go ahead. Thank you for the opportunity. Just a quick question regarding INFWIND. So with the financial consolidation of INFWIND acquisition now expected '4 to FY twenty seven, could you please update about our EBITDA guidance of 600 crores considering Q1 EBITDA of INR 67 crores? I think beyond whatever is in the public domain of what we have guided for INR 600 crores, we are staying we are sticking to that during the we have been the silent period. And owing to that, we cannot comment further on any of the guidances future guidances. But we have maintained our guidance what is there in the public what we have guided for in the previous quarters, we are sticking to that. And that was also to do with the post consolidation numbers, which is there's always subject to a couple of quarters delays in terms of consolidating into the parent.

41:26 So consolidated numbers could be checked from the QC onwards, right? QC and C source. So for the two quarters, we can expect system results. Is that right, understanding? Yes. And like basis, you see that, yes. Okay. And so question is that, so for next year, if you see FY 'twenty '8, so roughly, you can expect around that 600,000,000 EBITDA or it will be even more? As I said, I will not be able to guide I will not be able to make any forward guidance as we are already in the public domain. Okay. I'm not trying to understand what's FY '8 exactly, but I'm just trying to understand this external for EBITDA for FY 'twenty seven, is it belongs to two quarters that is Q3, Q4 or it is starting from Q1 itself?

42:18 No, it's on the annualized basis. 600,000,000 is the annualized basis from Q3, Q4 onwards, you can expect. Yes, there is an escalation as well, which is a natural business. So that is where I will leave it right now. Okay. So then it will 100 was an annual guidance, not a quarterly guidance. I can achieve INR 600 crores in a quarter. Understood. That's fairly understood. So INR 600 crores is a proportionately for FY 'twenty seven, right? I have mentioned that ample number of times. Okay. Thank you so much for that. Thank you, ladies and gentlemen. I request you to limit your questions to two per participant. The next question is from the line of Deepak Sharma, an individual investor. Please go ahead.

43:10 Hi. Good evening, Inox and team. My first question is when we can expect the listing of VESCO? And can you give me some idea about the reported EBITDA of VESCO in financial 'twenty six and any forward looking guidance for coming one or two years? The record date is already over. Now this is the procedural aspects, which we can comment on. We expect to happen it sooner. Two months, three months, one month, we are the best. We can just judge about it. So two months, three months is what it should take, not beyond that. We will elaborate on all the plans of Resco closer to the listing, and we'll give out a presentation to all the investors. At this moment, we'll not be able to guide on the numbers of projections for RESCO. It's a regulated process. It's a regulated process. There's nothing that we can do. Okay.

44:05 Secondly, is the company's finance will be shrinking by EPC business. So EPC is a net part of RESCO. And I think the RESCO future revenue visibility may take a hit. Great question. And that's the reason I said, please hear me out loudly. I said RESCO will continue doing EPC irrespective of whether it is being done for Inox Clean or some very strategic customer that we will choose depending on the market condition. But to compensate that, I mentioned about a couple of things. We are looking at enhancing our manufacturing capabilities under IRSL.

44:52 One being transformers, which is not limited only to our solar and which is not limited, sorry, to our captive requirement of only solar and wind, but also moving up the value chain to 100 MVA and beyond. I talked about our own crane business, which has been giving us good returns. A couple of cranes are already with us, and a couple of them will join in. I also mentioned about high value high value technological value added and high margin power electronic products like inverters, like unit substations and the capacitor systems. In the year, and we believe these expansion plans for IRSL will outsmart any lesser volumes that anyone would expect because of shrinking of EPC business.

45:54 Thank you. I'll just add to what Sanjit said. So we have given in our presentation that our order book, about 40% of third party orders are turnkey. So that's a very large component anyway, plus 1.5 gigawatt of the MOU, which we find with INOX clean as well as the 200 megawatt LOA, which we have from MLC India. These are all turnkey. So IRSL continues to have a very robust pipeline of EPC projects. Okay. Thank you. Thank you. The next question is from the line of Atul Jobi from Prosperity Wealth. Please go ahead. Yeah. Sir, am I audible?

46:42 Yes, sir. You're audible. Please go ahead. Yeah. So I think I need to understand what is the reason why there's no year on year growth in revenue for Inox Is it because Inox Wind has completely stopped doing EPC business? Yes. Sorry, if I heard it correct, you were talking about more growth in Inox Wind on a year on year basis. Is that correct? Yes. Yes. So we have elaborated and emulated earlier in the call as well. This is on account of the change in strategy where we pivoted to equipment supply, and that leads to certain disruptions, but the operations have shown enough resilience to at least be at par with the Q1 of the previous year. Having said that, we are maintaining our guidance, and we are hopeful and we are confident of achieving if at all, we have not lost anything in our math, if at all, have lost anything, we're hopeful of covering that in the next few quarters.

47:45 We have said H1 is almost 25% of the end of operations. So if you were to do that math, you're almost on track barring 510%. So also full year basis, if you see FY 'twenty six revenues were up about 23% compared to the previous year. So I think quarterly, we may not look at it for every quarter. But on an annual basis, we shown healthy growth in revenue, FY 'twenty six over FY 'twenty five. Okay. So I have one more question. Last quarter's earnings call, you mentioned there was about INR 400 crore of revenue, which were deferred in Q4, and you are expecting to recognize it during Q1 and Q2. So is there any update on that? Management line?

48:42 Yes. So we partly recognize that. But as I said, as we are pivoting towards the equipment supplies, this will get covered in the next few quarters. So this will be entirely covered in this financial year itself. So if not in Q1, Q2, over the entire financial year 'twenty seven, this will be covered. Okay. So we can assume this quarter, there was no contribution from EPC business. It is completely equipment supply. I think you're getting confused. We're not talking about EPC. So let me come in. So what we said is your question was what did we do for the last quarter? The revenue, which was coming in. So partially, it has been recognized in the present quarter. And the balance would be in the full year.

49:28 Our incremental revenue or margins on equipment supply would start flowing to us either in quarter two end or definitely in quarter three. The next question is from the line of Risav Gupta, an Individual Investor. Hey, guys. Am I audible? Yes, sir. You're audible. Please go ahead. Yeah. So I do recognize that the business is thirty seventy split, but you guys have guided 75% increase. And in the first quarter, there is no incremental revenue. And in the next three quarters, we need 100% increase from master guidance.

50:17 What is going to significantly change in Q3, Q4, which gives you insight in terms of a 100% improvement in the revenue. Is there any key initiative that you are targeting apart from EPC mix? Because EPC mix, obviously, this quarter has also improved from last year, but I could not see any increment. And obviously, you highlighted that INR 600 crore of mix in last year has also been recognized in this quarter somewhat, then probably we have degrowth, right? And I think we said that typically, an EPC business is loaded mostly in H2. Our equipment pivot that we did, yes, that will start showing results in quarter two and predominantly H2.

51:11 So we remain confident that this strategy will work. It has started showing its results. But predominantly on the numbers, it would be seen better in Q3 for sure. And why we are confident of achieving these numbers are two reasons for it. Why did we move from turnkey to equipment supply? Equipment supply, I am not restricted to a certain client. So if there's a site ready, I can supply my equipment. But in the turnkey project, I am restricted to that client, are working on that site. So if the site is not ready, I will not be able to recognize the revenues. In this case, there is enough leeway. There's a lot of flexibility with me to shuffle between the clients. So if my turbine is ready, if X site is not ready, I can always sell it to the Y site.

51:57 So that is why we are confident. And yes, I can just switch from in a quarter from one study to another study. It takes time. But on a yearly basis, my infra is ready. The clients are ready. There is enough. And as you mentioned, the biggest driver being INOXClean as well. And there's a host of other clients that we have these are all marquee names that we have just enumerated, and we're getting repeat orders from a lot of customers as well. So we are confident of achieving the numbers that we have said. Yes, there will be disruptions when you move from one study further. Got it. One another small query. I've been in all the phone calls for last three quarters. And every phone call, we have missed the guidance by some margin. In every phone call, we have been 100% confident that we will be achieving the guidance.

52:46 So what is going wrong there? Gentlemen, there is nothing wrong. I think this pivot strategy to move to increment has been mentioned several times. The biggest player today is INOXWIND for us. The orders are the orders is already there. I mentioned about 1.5 gigawatt of orders coming in from Clean. The balanced customers, twothree of them twothree of the balanced stuff comes from our IPPs and C and I customers. We have 4.4 gigawatt of orders in backlog to be executed.

53:32 70% of that comes from equipment supply. We are pretty confident that on a month by month, on a quarter by quarter, we would deliver better than expectations. And then we'll be mindful of whatever you've rightly said, yes, there have been certain indices, but there has been never a word of appreciation when we have beaten all the EBITDA guidances in the past. So when we started a year back, we were 18% EBITDA margin. We are upwards of 22, we are at 27% this quarter, right? There has not been a single word of appreciation on maintaining or improving on the EBITDA margins. And the reason why the investors and we don't offer the investors, honestly speaking. It is for the sake of the business, what is good for the business, we realized that there is ongoing. So you have to be mindful of that. While we are coming out of the loan period, we thought there is a lot of way we could make, but we realized during the course of work that there is challenges, all going challenge. So what would we do?

54:30 So we went change the strategy. We are very strict and nimble to change the strategy to equipment supply. What is it that we have today? We have a host of customers. So 4.5 gigawatts, even if you were to take 1.5 gigawatts annually, right? And covered for the next three years. And these are large equipment supplies. This is large in house or a group company orders. These are orders from most market names. We just announced energy order. So these are repeat customers as well coming back to us. Yes, there were certain slippages. But at the same time, we have tried to cover that through improved EBITDA margins, improve business performances or what value and services can bring on the table. So that's what we'll be working for the business, and we are for the long run. We are not on the quarterly basis. There could always be slippages in the quarterly basis. But in the long run, we have done everything that we could do to improve the business performance and maintain a healthy financial position. And announce the share value.

55:27 Yes. Obviously, that's why we are the company, but we track it. And obviously, in the next quarter, if you are meeting the guidance, I would definitely congratulate you. Thanks a lot. Thank you. The next question is from the line of Dashul Jabari from Crown Capital. Please go ahead. Hello? Yeah. Thank you so much for taking my question. A lot of my questions have been answered. So just one question from my end, sir, that what are the risks that you see that, you know, in case that we cannot meet the 75% guidance? I know we are very sure, but lot of factors will not be in our hands that you see on a daily basis.

56:14 So someone who's not in the business, could you just elaborate some kind of risks that, can happen in our business, sir, that will not meet the guidance? Thank you so much. And I would say only force majeure, yes, things which are beyond our control. I mean, no one had an inkling about this Middle East crisis. So something like that. Otherwise, this pivot to move to equipment supply, honestly, we don't see a risk of not meeting our deliverables. Okay. Okay. That's really great. So that's it from my side. And just one more question. In the PPT, don't know if we could find how much product and how much EPC business have we done. So I think if going forward, you could mention that, that would be helpful, sir.

57:05 I think we will we will not allow that, but we hear you. Probably going forward, we will start to see if we could provide those data as well. Yes. Yeah. That's really helpful. Thank you. Thank you so much. All the best. Thank you. Due to time constraints, we take that as the last question. I now hand the conference over to management for closing comments. Thank you so much. Thank you so much for attending it, and we'll see you next time. Thank you so much. On behalf of Navama Institutional Equity, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.