Why Has Inox Wind Targeted 2 GW Executions By FY27?

Indian wind energy company Inox Wind Limited (IWL), which has been reporting a continuous rise in its annual executions, has now raised its target. As per the latest update, the Noida-based company, which has set a target of around 1.2 GW executions in FY26, now plans to scale it up to 2 GW in FY27. But what is actually instilling this confidence in the group?

The reasons are myriad. They include the rise in wind energy installations across the country, the spurt in FDRE, RTS, and hybrid renewable projects, the company’s record profit growth in Q1, and its diversified business verticals. Added to this are the recent amendments in the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM), among others. Let’s discuss the key factors bolstering the group to increase its ambitions.

Increased Executions – An Inbuilt Confidence Booster

The company, which entered the stock market about a decade ago, started seeing a turnaround in FY23. In that year, the group executed a total of 104 MW of wind energy capacity. During the same year, its Operations and Maintenance (O&M) vertical, Inox Green Energy Services, issued an IPO and entered the stock market. The company also installed its 3 MW wind turbine prototype, touted as one of the largest in India at that time.

Since then, the firm has steadily ramped up its executions. In FY24, its execution stood at 376 MW, which increased to 705 MW in FY25. The publicly-listed company has given guidance of more than 1,200 MW of executions in FY26. On the other hand, it has set its sights on more than 2 GW of executions in FY27 as India moves towards 10 GW of annual wind additions.

So what changed since FY23?

A lot has changed for Inox Wind since FY23, ranging from diversification and funding to other strategic moves. This not only propelled executions but also boosted its order book. Over these years, the firm completed its transition to its 3 MW wind turbines, raised equity capital, and entered the solar O&M business in FY25. The company says its business now revolves around its 2 MW and 3 MW series, while it has also successfully secured a licence for the 4 MW wind turbine series. Today, it has a manufacturing capacity of more than 2.5 GW across four facilities.

The Order Book Breakup

The company, which operates in wind turbines and turnkey solutions, sees more than half of its order book coming from its turnkey business. At the end of Q1FY26, it had 1,406 MW of orders for equipment supply and around 1,699 MW of orders for end-to-end turnkey solutions.

“Order book currently stands at ~3.1 GW, providing a large revenue visibility in the next 2-3 years. IWL has added First Energy to its well-diversified order book; other customers include NTPC, CESC, NLC India, Hero Future Energies, Inox Clean Energy, Continuum, Integrum, and Amplus, amongst others,” the firm said.

Impact of ALMM

The firm stated that the recent amendments in ALMM, proposed by MNRE, are likely to create a level playing field due to the government’s push for local manufacturing. As per the mandate, the new norms require the sourcing of major wind turbine components—such as blades, towers, gearbox, generator, and special bearings—from domestic players.

“Implementation of the policy will substantially reduce the pricing differential between domestic manufacturers and certain MNC manufacturers who were importing low-cost components, further enhancing the attractiveness of domestic wind OEMs and service providers amongst developers,” the company said.

What is favouring the firm internally?

The company is now riding high on confidence due to its highest-ever Q1 PAT. It reported 146 MW of execution during the period, with an order book of 3.1 GW. It also commissioned its nacelle and hub facility at Bavla in Ahmedabad, strengthening its manufacturing capabilities. Recently, Inox Wind Energy Limited was merged into IWL. In addition, the company signed an agreement for the comprehensive O&M of 182 MW of wind energy projects.

The Rise of FDRE/Hybrid Projects

The confidence among the company’s top management is also fueled by the rise in hybrid and FDRE tenders, which include wind energy projects. The firm noted that wind continues to be one of the cheapest sources of power, much lower than APPC. Onshore wind potential, according to recent studies, ranges from 695 GW at 120m hub height to 1,164 GW at 150m hub height.

“Tariffs in recent auctions ranged at Rs 3.6–4/unit for plain wind, Rs 3.1–3.3/unit for Solar + ESS, and Rs ~5–5.1/unit for FDRE. Hybrid/RTC/FDRE projects are the way forward due to: 1. Higher project PLFs, 2. Increased grid utilization & stability, 3. Round-the-clock generation potentially replacing conventional sources for base power supply, 4. Lower LCoE and better IRRs for project developers,” the firm said.

The Challenges & Competition

On the domestic front, the company faces stiff competition from players like Suzlon Energy, which is also engaged in wind energy equipment manufacturing, EPC services, and O&M facilities. Suzlon too is riding on confidence, having reported its highest-ever Q1 deliveries in the last 30 years, executing 444 MW in Q1 alone. Its order book stood at 5.7 GW, and it claims an annual capacity of 4.5 GW. Besides this, both Inox Wind and Suzlon also face competition from international players, especially on the manufacturing front.