Are Indowind Energy Ltd latest results good or bad?

Indowind Energy Ltd's latest financial results reveal a complex picture of operational performance and profitability challenges. In the nine-month period ending December 2025, the company reported revenue of ₹35.10 crores, reflecting a year-on-year growth of 24.90% compared to ₹28.10 crores in the same period of FY25. However, this revenue growth has not translated into consistent profitability, as evidenced by a net loss of ₹1.25 crores in Q3 FY26, a significant reversal from a profit of ₹4.41 crores in Q3 FY25.
The operating margin for Q2 FY26 was reported at 58.86%, indicating a strong operational efficiency during that quarter, but this was down from 56.93% in the previous year, suggesting margin pressures despite higher revenues. Additionally, the company's return on equity (ROE) stands at a low 1.20%, highlighting concerns regarding capital efficiency and the ability to generate adequate returns for shareholders.

The financial trajectory of Indowind Energy has been marked by volatility, with the company experiencing erratic profitability across quarters. The surge in interest costs, which increased by 87.42% in the nine-month period, has further pressured profitability, raising concerns about the sustainability of its financial performance. Furthermore, the company has reported negative operating cash flow of ₹9.00 crores in FY25, indicating reliance on financing activities to support operations.

Overall, while Indowind Energy has demonstrated revenue growth, the underlying operational challenges, including high interest expenses and weak capital efficiency, suggest a need for significant improvements to achieve sustainable profitability. The company has seen an adjustment in its evaluation, reflecting these ongoing challenges in its financial performance.