Indowind Energy Ltd: Post-Budget Fundamental Report.

~Sumon Mukhopadhyay

Operational Turnaround

Indowind Energy Ltd (Rs.10.80) is transitioning from a debt-heavy micro-cap into a lean, Renewable Independent Power Producer (IPP). The latest Q3 and 9MFY26 results indicate that the "recovery phase" is now shifting toward a "growth phase."

Key Financial Metric	9MFY26 Performance	YoY Growth
Consolidated Revenue	₹35.49 Crore	+21.6%
EBITDA	₹16.98 Crore	+29.4%
Net Profit (PAT)	₹7.50 Crore	+24.3%
Operating Margin	~48%	Expansion

Balance Sheet Strengthening

The successful ₹49.42 crore rights issue has been the primary driver for balance sheet repair. By utilizing these funds to reduce high-interest debt, the company has significantly lowered its finance costs, which is directly translating to the bottom line.

"The reduction in leverage increases Indowind's capacity to absorb project costs for its upcoming solar diversification without stressing the cash flow."

The Solar Pivot

Indowind is currently implementing its 4 MW solar project. This is critical for two reasons:

• De-risking Seasonality: Wind energy peaks in monsoon months; solar provides steady generation throughout the year.
• SPV Structure: By selling power through a Special Purpose Vehicle to corporate clients, Indowind can realize 15-20% higher tariffs than standard grid rates.

Budget FY27: The Tailwinds

The recent Union Budget reinforced the government's commitment to the Green Energy Corridor. While Indowind is a domestic player and doesn't benefit from international trade concessions, the domestic focus on Viability Gap Funding (VGF) and renewable transmission infrastructure lowers the barrier for small-scale expansion.

Fundamental Conclusion

Indowind is an execution-dependent play. The strengths include a cleansed balance sheet and margin expansion. The risks remain its small absolute scale and lack of institutional institutional volume. For a long-term renewable portfolio, it represents a high-risk, high-reward turnaround story.

Disclaimer: This report is for educational purposes on SumanSpeaks and does not constitute financial advice. Always consult with a SEBI-registered advisor before investing.