Inox Clean Energy IPO

Strengths · 8

• 01The renewable portfolio stood at 9,294.75 MW as of 31 August 2026, with 2,375.05 MW already operational, 800.20 MW under construction, 2,987.00 MW in the pipeline and 3,132.50 MW of future projects.
• 02Power purchase agreements cover 99.16% of operational capacity, with 1,246.35 MW tied to commercial and industrial customers and 1,108.70 MW to utilities and DISCOMs.
• 03The portfolio is spread across technologies, with 4,059.42 MW of solar only, 1,840.48 MW of wind only, 1,228.85 MW of wind-solar hybrid and solar plus storage projects of 966.00 MW of solar with 1,200.00 MW of battery storage.
• 04Solar module capacity of 3.00 GW is operational at Bavla in Gujarat and about 3.00 GW in the United States, with about 5.00 GW of integrated module and cell capacity under construction at Dhenkanal in Odisha and about 3.00 GW of cell capacity under construction in the United States.
• 05Revenue from operations grew from Rs 39.40 crore in FY2024 to Rs 47.24 crore in FY2025 and Rs 178.13 crore in FY2026, with the sale of renewable energy contributing 82.78% of FY2026 revenue.
• 06Commercial and industrial off-takers include data centre operators named in the document, Sify Infinit Spaces Limited and CtrlS Datacentres Limited, and 52.48% of the operational IPP portfolio is contracted with such customers.
• 07The Africa venture SkyPower MENA holds agreements with government-owned DISCOMs for 2.91 GW, priced in United States dollars with tenors of 25 to 30 years and annual escalation of up to 3.00%.
• 08Equity support has been large: total equity rose to Rs 3,267.69 crore at 31 March 2026 from Rs 481.20 crore a year earlier, helped by Rs 702.59 crore raised from the issue of share capital in FY2026.

Risks · 10

• 01The company is effectively a new entrant in most of what it now does. Until FY2026 all its revenue came from wind assets in Gujarat, and it says its operating history in solar and hybrid generation and in large-scale solar manufacturing is limited and unproven.
• 02Other income of Rs 183.29 crore in FY2026 was larger than revenue from operations of Rs 178.13 crore, and profit after tax was Rs 30.98 crore, so reported profit does not come mainly from the core business.
• 03EBITDA fell to Rs 32.25 crore in FY2026 from Rs 35.91 crore in FY2025 and Rs 35.01 crore in FY2024 even as revenue rose, and the EBITDA margin dropped from 88.87% in FY2024 to 18.11% in FY2026.
• 04Debt has grown very fast: non-current borrowings were Rs 6,271.31 crore at 31 March 2026 against Rs 321.29 crore a year earlier, aggregate outstanding borrowings were Rs 16,781.86 crore as of 31 August 2026, net debt to equity was 2.09 times and interest rates run from about 7.38% to 11.0% a year.
• 05Cash flows are negative: net cash used in operating activities was Rs 52.11 crore in FY2026 and net cash used in investing activities was Rs 3,588.61 crore, against finance costs of Rs 155.28 crore for the year.
• 06The whole of the earmarked fresh issue, Rs 6,000.00 crore, goes to repaying borrowings of the company and its subsidiaries, which is 35.75% of outstanding borrowings as of 31 August 2026, and nothing is earmarked for new capacity.
• 07Revenue depends on few off-takers: the top off-takers gave 82.43% of revenue from the sale of renewable energy in FY2026 and 100.00% in both FY2025 and FY2024, and 210.40 MW of the 2,375.05 MW operational capacity sells to INOXGFL Group entities.
• 08Growth rests on acquisitions that are not finished. The Windworld and Athena portfolios had not closed as on the date of the filing, and failure to close the Athena acquisition would cost the portfolio 559.00 MW of installed solar capacity.
• 09The financial statements of five associates were not made available because of ongoing disputes and are not accounted for in the restated financial information, and Inox Neo Energies has received a notice claiming Rs 10.28 crore.
• 10Awendio Solaris Limited has threatened United States litigation over the acquisition of the US module and cell operations, claiming a US$10 million transfer fee plus interest, US$20 million for breach of a non-circumvention provision and compensatory damages in excess of US$449 million.

Inox Clean Energy Limited runs two businesses: an independent power producer business, called the IPP Business, that owns wind, solar and wind-solar hybrid projects, and a Solar Manufacturing Business that makes solar modules and is building solar cell capacity. The company was incorporated in November 2017 as Nani Virani Wind Energy Private Limited, was renamed Inox Clean Energy Private Limited in January 2025 and became a public limited company in April 2025. The registered office is in Vadodara, Gujarat and the corporate office is at INOX GFL Towers in Noida. The promoters are Devansh Jain and Avarna Jain, and the company says it leverages the expertise of the INOXGFL Group and Devansh Jain in the renewable energy sector.

As of 31 August 2026, the renewable IPP portfolio was 9,294.75 MW in all, made up of 2,375.05 MW operational, 800.20 MW under construction, 2,987.00 MW in the pipeline and 3,132.50 MW of future projects. By technology, the cumulative portfolio is 4,059.42 MW of solar only, 1,840.48 MW of wind only, 1,228.85 MW of wind-solar hybrid, and solar plus battery storage projects of 966.00 MW of solar with 1,200.00 MW of battery energy storage. Of the operational capacity, 1,246.35 MW is contracted with commercial and industrial customers, including INOXGFL Group entities, hyperscalers and data centre operators such as Sify Infinit Spaces Limited and CtrlS Datacentres Limited, and 1,108.70 MW is tied to power purchase agreements with utilities and DISCOMs. Together these are 99.16% of operational capacity.

The business changed shape in FY2026. Before that year every operational project was a wind farm in Gujarat and 100.00% of revenue came from Gujarat. During and after FY2026 the company bought the Vibrant Energy, Sunsource Energy, VENA and SkyPower platforms, formed the SkyPower MENA venture with Arctic International for Africa, and acquired solar module manufacturing operations in the United States from Boviet Solar in May 2026. It has also received National Company Law Tribunal approval of its resolution plan for the Windworld Portfolio and signed an agreement in September 2026 to buy Actis GreenGen Limited, called the Athena Portfolio; neither of these had been completed as on the date of the draft red herring prospectus.

In solar manufacturing, the subsidiary Inox Solar runs the Bavla Facility in Gujarat with an aggregate solar module capacity of 3.00 GW. Phase 1 of Bavla ran at about 70.00% capacity utilisation from commissioning until 31 March 2026 and Phase 2 was commissioned on 15 March 2026 and 31 May 2026. The Odisha Manufacturing Facility at Dhenkanal, with about 5.00 GW of integrated module and cell capacity, is under construction. The United States operations through Inox Solar Americas have about 3.00 GW of operational module capacity and about 3.00 GW of cell capacity under construction. Raw materials include silicon wafers, solar cells, silver paste, encapsulants, solar glass and aluminium frames, and the company buys on spot or short-term terms rather than long-term supply contracts.

In Africa, SkyPower MENA holds power purchase agreements with government-owned DISCOMs for 2.91 GW of contracted capacity in Zambia, Zimbabwe and the Democratic Republic of Congo, priced in United States dollars with tenors of 25 to 30 years and annual tariff escalation of up to 3.00%. As of 31 August 2026, 149.00 MW of that was under construction and about 2,762.00 MW was at pipeline stage. In FY2026 the sale of renewable energy gave Rs 147.46 crore or 82.78% of revenue from operations and solar module sales gave Rs 30.42 crore or 17.08%.

The industry

The company's industry data comes from a CRISIL Intelligence report titled Assessment of Indian Renewable IPP and solar module manufacturing landscape, dated September 2026, which it commissioned and paid for. In India, solar modules must be on the Approved List of Models and Manufacturers under the 2019 ALMM Order and carry Bureau of Indian Standards certification to be used in open access, government-procured and government-auctioned projects, and solar cells will come under the Approved List of Cell Manufacturers framework, so certification decides which tenders a manufacturer can bid for. In the United States, the report notes that solar manufacturing is supported by production tax credits under Section 45X of the Internal Revenue Code and by the Section 232 tariff and minimum import price framework, while anti-circumvention duties of up to 254% may apply to solar cells imported from certain South-East Asian countries. Wind generation in India is seasonal, higher between April and September and lower from October to March.

Customer concentration: The top off-takers gave 82.43% of revenue from the sale of renewable energy in FY2026 and 100.00% in both FY2025 and FY2024, and INOXGFL Group entities buy power from 210.40 MW of the 2,375.05 MW operational capacity.