Mumbai, June 1 (AHN) Shares of Inox Wind fell more than 8 per cent on Monday after the company reported a sharp decline in its earnings for the fourth quarter (Q4) of FY26.

The wind energy solutions provider reported a consolidated net profit of Rs 105.68 crore for the January-March quarter, marking a decline of nearly 45 per cent from Rs 190.34 crore recorded in the corresponding period of the previous financial year.

The fall in profitability came as operating expenses rose significantly during the quarter.

The company's total income from operations stood at Rs 1,305.50 crore in the fourth quarter, marginally lower than Rs 1,310.65 crore reported a year earlier.

Total expenses increased to Rs 1,161.59 crore from Rs 1,103.01 crore in the year-ago period, weighing on earnings.

Despite the weak quarterly performance, Inox Wind said its order book remained strong at 3.1 GW as of March 31, 2026, providing revenue visibility for more than two years.

The company attributed the pressure on its financial performance to execution-related challenges, geopolitical disruptions affecting the supply of equipment and components, logistical bottlenecks, and delayed customer payments amid a challenging macroeconomic environment.

These factors, it said, continued to keep working capital requirements elevated during the quarter.

Commenting on the results, Nuvama Institutional Equities said Inox Wind's Q4 FY26 performance was significantly below expectations.

According to the brokerage, revenue came in at Rs 1,240 crore against its estimate of Rs 2,150 crore.

Operating profit margin declined to 16 per cent from 19.9 per cent a year ago as engineering, procurement and construction (EPC) costs surged 95 per cent year-on-year (YoY), resulting in EBITDA coming in nearly 45 per cent below consensus estimates.

Given the execution challenges on the ground, Nuvama reduced its execution forecasts for FY27 and FY28 to 1.4 GW and 1.75 GW, respectively, from earlier estimates of 1.6 GW and 2 GW.

The brokerage also lowered its earnings estimates for the two fiscal years by 33 per cent and 34 per cent, respectively.