Motilal Oswal stated in its report, “We initiate coverage on Inox Wind Limited (IWL) with a BUY rating and a target price of Rs 210 per share. IWL is a leading vertically integrated player in India’s wind energy sector, offering end-to-end solutions from project conception and commissioning to operations and maintenance (O&M).”
The brokerage highlighted that Inox Wind has an annual manufacturing capacity of 2.5 GW across four facilities and produces both 2 MW and 3 MW wind turbine generators. As of the end of FY25, the company holds a robust order book of 3.2 GW, ensuring revenue visibility for at least the next two years.
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Inox Wind’s listed subsidiary, Inox Green Energy Services (IGESL), manages a 5.1 GW operations and maintenance (O&M) portfolio, while another subsidiary, Inox Renewable Solutions (IRSL), is expanding into solar, hybrid EPC, and services such as crane operations. These synergies position Inox Wind well to capitalise on the growing renewable energy market in India.
Highlighting the importance of wind energy in India’s clean energy goals, Motilal Oswal noted that wind is expected to account for approximately 20% of the country’s renewable energy mix by 2030—up from current levels. This compares to 39% in the US, 33% in China, and 42% in the UK, underlining the need for India to accelerate wind power development.The report also emphasised the growing relevance of hybrid and firm and dispatchable renewable energy (FDRE) projects, which require a wind component, despite theoretical optimism around standalone solar-plus-storage combinations.On the policy front, Motilal Oswal pointed to a potential regulatory tailwind: proposed amendments to the Revised List of Models and Manufacturers (RLMM) by the Ministry of New and Renewable Energy (MNRE). The draft suggests stricter local sourcing requirements, which could reduce the cost advantage of Chinese competitors.
“If finalised, the draft would alleviate concerns over Chinese competition and support domestic OEMs like SUEL and IWL,” the report added.
Motilal Oswal forecasts a 38% EBITDA CAGR for Inox Wind over FY25–28, driven by robust execution in the wind turbine generator (WTG) segment and significant expansion in operations and maintenance (O&M). WTG execution is expected to rise from 705 MW in FY25 to 1.8 GW by FY28, while the O&M portfolio is projected to nearly triple—from 3.5 GW to 9.6 GW—over the same period.
O&M revenue, EBITDA, and adjusted PAT are expected to grow at a CAGR of 27%, 54%, and 65%, respectively.
The recent merger of Inox Wind Limited (IWL) with its holding company Inox Wind Energy Limited (IWEL), approved by the NCLT on June 10, 2025, is anticipated to reduce liabilities by Rs 2,000 crore, streamline the corporate structure, and enhance operational efficiency. In parallel, IGESL is progressing with the demerger of its power evacuation division, which will be integrated into IRSL, resulting in an estimated annual depreciation saving of Rs 48 crore.
Motilal Oswal has valued Inox Wind at a target P/E of 25x on FY27E EPS, arriving at a target price of Rs 210. This valuation is at a 29% discount to that of peer Suzlon Energy. The stock currently trades at 20.5x FY27E P/E, reflecting a 28% discount to SUEL.
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