Multibagger Inox Wind: Motilal Oswal bets on renewable energy, sees multi-year growth potential; sets target at ₹210
Motilal Oswal said, 'We initiate coverage on Inox Wind Limited (IWL) with a BUY rating and a target price of ₹ 210 per share.' The brokerage noted that Inox Wind is a leading vertically integrated player in India's wind energy sector, offering end-to-end solutions, including project conception, commissioning, and long-term operations and maintenance (O&M) services.
As of FY25-end, Inox Wind had an impressive order book of 3.2 GW, providing strong revenue visibility for the next two years. Motilal Oswal pointed out that the company operates with an annual manufacturing capacity of 2.5 GW across four facilities and produces both 2 MW and 3 MW wind turbine generators.
'Inox Wind's business is further supported by its subsidiary Inox Green Energy Services (IGESL), which manages a 5.1 GW O&M portfolio,' the brokerage said. Another subsidiary, Inox Renewable Solutions (IRSL), is expanding into solar, hybrid EPC, and crane services, offering synergies to the core wind operations.
Highlighting broader sector trends, Motilal Oswal noted that wind energy is expected to account for around 20 percent of India's renewable energy mix by 2030, up from current levels. In comparison, the wind share in the renewable energy mix is already 39 percent in the US, 33 percent in China, and 42 percent in the UK.
'Hybrid and firm-dispatchable renewable energy projects are gaining traction, and wind remains an integral component, despite theoretical enthusiasm for standalone solar-plus-storage solutions,' the brokerage added.
On the policy front, Motilal Oswal flagged a key regulatory development: the draft amendment to the Revised List of Models and Manufacturers (RLMM) by the Ministry of New and Renewable Energy (MNRE). If finalised, the stricter local sourcing norms could narrow the cost advantage held by Chinese suppliers.
'The proposed RLMM changes could support domestic OEMs like SUEL and IWL by addressing the competitive pressure from Chinese imports,' Motilal Oswal noted.
Looking ahead, the brokerage expects Inox Wind to deliver a 38 percent EBITDA CAGR over FY25–28, driven by an increase in wind turbine generator (WTG) execution—from 705 MW in FY25 to 1.8 GW in FY28—and a tripling of the O&M portfolio to 9.6 GW. O&M revenue, EBITDA, and adjusted PAT are forecast to grow at a CAGR of 27 percent, 54 percent, and 65 percent, respectively.
The recent merger of Inox Wind with its holding company Inox Wind Energy, approved by the NCLT on June 10, 2025, is expected to streamline the corporate structure and reduce liabilities by ₹ 2,000 crore. Additionally, IGESL is in the process of demerging its power evacuation division into IRSL, which is estimated to save ₹ 48 crore annually in depreciation.
Motilal Oswal has valued Inox Wind at 25x FY27 estimated earnings per share, arriving at a target price of ₹ 210. 'This is at a 29 percent discount to the valuation of Suzlon Energy, reflecting both opportunity and risk,' the brokerage said.
Inox Wind has delivered impressive long-term returns. The renewable energy stock is up 23 percent over the past year. It saw a 10 percent decline in June after a strong three-month rally—rising 15.5 percent in May, 3.7 percent in April, and 8.5 percent in March. Previously, the stock had declined for five straight months from October 2024 to February 2025.
In the long term, Inox Wind has turned into a multibagger, surging 1675 percent over the past five years from ₹ 9.96 in 2020. Over the past three years, it has rallied 794 percent.
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