Nuvama retains ‘Buy’ on this Suzlon Energy peer stock with 39% upside potential

Nuvama Institutional Equities has reiterated its ‘Buy’ rating on Inox Wind, a peer of Suzlon Energy, while lowering the target price to Rs 190 per share from Rs 236 earlier. The revised 12-month target still implies a potential upside of 38.68 per cent from Inox Wind’s closing price of Rs 137 on Thursday.

According to the domestic brokerage, Inox Wind posted modest Q1 FY26 execution of 146 MW, compared with the consensus estimate of around 180 MW. While revenue at Rs 830 crore was muted, a higher operating margin of 22.2 per cent, driven by a product-heavy mix, led to a 7 per cent beat on consensus EBITDA. Adjusted PAT (profit after tax) came in at Rs 110 crore, 11 per cent ahead of estimates, despite the company booking a non-cash deferred tax charge of Rs 40 crore. The order inflow stood at 51 MW, taking the order book to 3.1 GW for execution over the next 24 months.

The brokerage noted that Inox Wind, one of only two wind-EPC suppliers in India, is benefitting from strong demand in round-the-clock (RTC), firm and dispatchable renewable energy (FDRE), and commercial and industrial (C&I) segments. Nuvama has revised its FY26 and FY27 execution forecasts to 1.1 GW and 1.8 GW, respectively, from 1.2 GW and 2 GW earlier.

With a 20 per cent market share, Inox Wind is positioned alongside Suzlon Energy as the only wind EPC and wind turbine generator (WTG) suppliers in the country. Its growth outlook is supported by industry tailwinds of 12 GW annual total addressable market (TAM), a technological edge with 3 MW-plus turbines and over 4.5 GW nacelle capacity, high-margin (35 per cent) O&M services and a strengthened balance sheet.

“Inox Wind is well placed to sustain its position in WTG and turnkey EPC execution, with the capability to capture demand from repowering opportunities and C&I projects, over and above the 7–8 GW of upcoming auctions,” Nuvama stated.

Meanwhile, Indian equity benchmarks remained closed on Friday on account of Independence Day.