Are Inox Wind Ltd latest results good or bad?

Inox Wind Ltd's latest financial results for the quarter ended September 2025 reflect a significant operational turnaround, showcasing strong revenue growth alongside challenges in profitability. The company reported consolidated net sales of ₹1,119.18 crores, marking a year-on-year growth of 52.68% and a sequential increase of 35.45%. This robust topline performance indicates effective order book execution and a favorable demand environment in India's renewable energy sector. However, the profitability metrics reveal some concerns. The consolidated net profit reached ₹91.75 crores, which represents a remarkable year-on-year growth of 257.28%. Despite this impressive figure, there was a sequential decline of 13.33% compared to the previous quarter, highlighting margin pressures that have impacted the bottom line. The operating margin, excluding other income, stood at 20.35%, reflecting a contraction of 231 basis points year-on-year and 188 basis points sequentially. This compression suggests rising input costs and competitive pricing pressures that the company has struggled to mitigate. Interest expenses surged to ₹50.81 crores, the highest in recent quarters, indicating increased financial costs associated with supporting revenue growth and potential capacity expansion. The company's return ratios, while showing improvement from previous years, remain below industry standards, with an average return on equity (ROE) of 1.63% and a latest ROE of 8.17%. In terms of valuation, Inox Wind's P/E ratio of 50.45x suggests a premium valuation relative to its peers, which raises questions about sustainability given the current margin pressures. The recent increase in promoter stake to 44.18% signals confidence from management, but the decline in foreign institutional holdings indicates some caution among institutional investors. Overall, Inox Wind's latest results illustrate a company in transition, achieving strong revenue growth while navigating significant challenges in profitability and valuation. The company saw an adjustment in its evaluation, reflecting the complexities of its operational landscape amidst a competitive market environment. Investors should monitor future performance closely, particularly regarding margin recovery and capital efficiency, to assess the sustainability of this growth trajectory.