Green energy stock in focus after receiving 60 MW order to supply 3 MW-class wind turbines

A prominent wind energy company is attracting attention for securing a 60 MW equipment supply order from Serentica Renewables for its 3 MW wind turbines. The turbines are scheduled for delivery in the first half of 2025 for a project in Karnataka. The agreement also includes multi-year operations and maintenance services after the commissioning of the project. 

Price Variation 

During Wednesday’s trading session, Inox Wind Ltd’s share price surged to an intra-day high of Rs.195.30 per share, rising 1.35 percent from its previous close of Rs.192.69 apiece. The price has since retreated and is currently trading at Rs.191.35 per share. Over the past five years, the shares have delivered over 2,200 percent returns. 

What happened 

Inox Wind Limited (IWL) has secured a 60 MW order from Serentica Renewables, a renewable energy company focused on the commercial and industrial (C&I) sectors. The order involves the supply of 3 MW class wind turbines, which are scheduled for delivery in the first half of 2025. 

Additionally, IWL will provide multi-year operations and maintenance (O&M) services after the turbines are commissioned. The turbines will be installed at Serentica’s hybrid renewable energy project site in Karnataka, with the power generated being supplied to Serentica’s partners, including the Vedanta Group. 

This order aligns with Serentica’s plans to expand its renewable energy capacity and decarbonize energy-intensive industries. 

Management Commentary 

Commenting on this occasion, Mr. Kailash Tarachandani, Group CEO, of Inox Wind Ltd., said, “We are extremely pleased to establish our relationship with Serentica with this 60 MW equipment supply order. As India’s commercial & industrial (C&I) players accelerate their transition to green energy, we believe our tailored products and solutions for wind projects will be one of the important catalysts driving this move. Serentica’s large-scale renewable project plans, combined with Inox Wind’s expertise in wind projects, make a perfect combination to take this mutually beneficial partnership to the next level going ahead.” 

Order Book 

Inox Wind’s current order book has reached a record 3.3 gigawatts, with 1.2 gigawatts in new orders secured during the current financial year. Execution has remained steady at 140 megawatts despite challenges posed by the seasonal monsoon. 

The management anticipates that execution will surpass the current FY26 guidance of 1,200 megawatts, although the guidance is being maintained for now.

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Management Guidance 

Inox Wind’s management expects EBITDA margins to improve from 15 to 17 percent for FY25, driven by multiple factors. The cessation of royalty payments for 3-megawatt turbines starting in FY26 is expected to contribute approximately ₹6 lakh per megawatt to profitability. 

Additionally, backward integration efforts, including the in-house manufacturing of critical components and cranes, will enhance efficiency. The company also plans to introduce larger turbine blades and launch a new 4X megawatt turbine, further supporting margin growth. 

Financial Performance 

In its financial update for the quarter ending September 2024, Inox Wind reported revenue from operations of Rs.732 crore, marking a remarkable 97 percent increase from Rs.371 crore in Q2 FY24. Net profit saw a significant incline to Rs.90 crore from a net loss of Rs.27 crore in the same period. 

Company Overview 

Inox Wind Limited, established in 2009 and headquartered in Noida, is a leading Indian company in the wind energy sector. The company specializes in manufacturing Wind Turbine Generators (WTGs) and offers a wide range of services, including procurement, erection, commissioning, and operations and maintenance for wind farms. 

Written by – Siddesh S Raskar 

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