Inox Green Energy Services Ltd Management Discussions

<dhhead>Management Discussion and Analysis</dhhead>

Economic Overview

Global Economic Overview¹

In CY 2024, the global economy faced multiple headwinds including geopolitical conflicts, trade tensions and shifts in monetary policy. Despite these challenges, it demonstrated resilience, achieving a growth rate of 3.3%.

Global headline inflation declined from 6.6% in CY2023 to 5.7% in CY2024, mainly due to subdued energy prices and tight monetary policies in many countries. While advanced economies made significant progress towards inflation targets, several emerging markets continued to grapple with high inflation due to currency depreciation and supply chain disruptions.

The US economy expanded by 2.8%, supported by strong domestic demand and a stable labour market. Meanwhile, Europe experienced difficulties with major economies such as Germany contracting. China saw a growth of 5%, benefitted by fiscal stimulus, while growth in the Middle East and Central Asia slowed, primarily due to oil production cuts by OPEC nations.

Outlook

Moving forward, the global economic outlook remains tentatively positive, as disinflationary trends are tempered by emerging geo-economic uncertainties. A shift in the US policy, including new tariffs on key industries has raised inflation expectations and prompted a downward revision in global trade forecasts for CY 2025 and CY 2026.

Tariff related uncertainties have impacted global investor sentiment leading to a decline in the value of US dollar. In response to slowing demand, Germany has introduced significant stimulus measures. The Middle East and North Africa are expected to recover gradually, though the outlook remains subdued. Emerging economies are projected to maintain their growth momentum, with manufacturing sectors outperforming those in advanced economies.

Indias Economic Overview²

Despite facing macroeconomic challenges, the Indian economy grew at 6.5% in FY 2025, remaining one of the fastest-growing major economies. Growth was fuelled by strong consumption, particularly from elevated rural demand.

Inflation averaged at 4.6% year-on-year, within the Reserve Bank of Indias (RBI) target range. This allowed the RBI to ease monetary policy by reducing interest rates by 50 basis points to 6%, aiming to support liquidity in the economy.

Investment activity rebounded in FY 2025, following a brief slowdown in the second quarter, driven by a sharp rise in manufacturing exports and increased government infrastructure spending under the Production Linked Investment Scheme 2.0. A notable rise in capital goods import also indicated greater investment in expanding production capacity.

Outlook

Indias economic outlook remains favourable, supported by rising consumer demand, improved investment activity and supportive government policies. As food inflation subsides, forecasts for domestic demand remains optimistic. The Government of Indias proactive approach, including increased capital expenditure and efforts to attract Foreign Direct Investment (FDI) is set to stimulate further growth. Urbanisation is expected to drive sustained domestic demand, aligning with Indias long-term goal of becoming a developed nation by 2047.

However, global macroeconomic uncertainties may impact domestic industries and trade. To address downside risks, India will need to implement comprehensive economic reforms and resolve structural challenges. Indias commitment to targeting net zero emissions by 2070 is driving a gradual shift towards low-carbon industries. The energy sector will increasingly emphasise renewable sources, supporting both climate goals and long-term energy security.

Industry Overview

Global Renewable Energy Sector

In 2024, renewable energy sources accounted for 32.1% of global electricity generation, marking a significant increase.⁴ Declining price of renewable technologies has made them more accessible globally, including low- and middle-income countries. Both public and private investments have reached record levels, sustaining the growth momentum in the renewable sector. Across all primary generation sources, utility-scale solar and wind projects led in capacity additions.

Moving forward, global energy consumption is likely to increase by approximately 18% by 2050, with the majority of this increase coming from emerging economies in the Middle East, India and the ASEAN region.⁵ Factors such as population growth, rising income levels and the relocation of manufacturing industries to these regions are key drivers of this trend. In Europe, the drive to enhance energy security has become increasingly relevant following recent geopolitical developments.

Countries around the world are actively advancing clean energy transitions. In the US, the Inflation Reduction Act supports the development of new clean energy projects, strengthens domestic supply chains and aims to provide employment through 2032. Meanwhile, Chinas ‘30-60 target seeks to have non-fossil fuel sources accounting for 80% of its overall energy consumption by 2060. Global renewable energy capacity is projected to expand by 2.7 times between 2022 through 2030, reaching almost 9,760 GW. Solar photovoltaic technology is expected to drive growth, accounting for 80% of new capacity additions. China is expected to lead this expansion, followed by the European Union, the US and India.⁶

Fossil Fuels Economics vs Renewables Economics

Renewables investment is estimated to create three times as many jobs as fossil fuels. While 5 million fossil fuel jobs may be lost by 2030, 14 million clean energy jobs may arise, leading to a net gain of 9 million roles.⁷ At least $2.6 trillion is spent annually in environmentally harmful subsidies.⁸ Achieving net-zero emissions by 2050 is expected to cost around $4.5 trillion annually in investments in renewable energy up to 2030.⁹ The subsequent pollution and climate damage reductions itself are estimated to save as much as $4.2 trillion every year by 2030.

Global Wind O&M Market¹¹

In 2024, the global wind sector installed 117 GW of new capacity, bringing the cumulative total to about 1,136 GW. Notably, renewable sources contributed to 90% of the overall power sector during the year, with wind power accounting for 20% of this growth. Wind turbines are estimated to lose 1.0-1.5% of their output annually thereby driving demand in the O&M market.

Developing markets such as Uzbekistan, Egypt and Saudi Arabia recorded robust growth in wind power development in 2024, countering decelerating growth in Brazil and the US. The Asia-Pacific region remained the global leader, with China alone contributing to approximately 70% of new installations. Africa and the Middle East also had a record year, doubling their onshore wind capacity additions. The global wind O&M was valued at approximately $18.19 billion in 2024.¹²

Moving forward, new wind capacity installations are forecasted at 139 GW in 2025 and 981 GW over 2025-2030, averaging 164 GW annually, with a Compound Annual Growth Rate (CAGR) of 8.8% during 2025-2030.¹³ The European Union is expected to play a leading role, underpinned by its REPowerEU initiative and the revised Renewable Energy Directive, aiming renewables to comprise at least 42.5% and ideally 45% of the energy mix by 2030.¹⁴ With continued supportive policies and cross-border coordination, the global wind sector is well-positioned to triple its annual growth, meeting with the COP28 objective of tripling renewable energy capacity by 2030.

New onshore and offshore installations outlook
	Offshore (%	Onshore (%
	of total new	of total new	Total (MW)
	installations)	installations)
2024	7%	93%	1,16,970
2025	12%	88%	1,38,174
2026	17%	83%	1,39,786
2027	16%	84%	1,60,291
2028	15%	85%	1,67,056
2029	17%	83%	1,82,915
2030	18%	82%	1,94,100

Source: Global Wind Report 2025, GWEC

The wind turbine O&M industry is being driven by increasing demands for energy efficiency, global efforts towards carbon neutrality and sustainability and the rapid surge in wind installations, which subsequently creates demand for dependable maintenance to secure robust performance and increased turbine life. Meanwhile, innovative instruments such as predictive maintenance, remote monitoring and artificial intelligence have helped identify problems before they arise and reduce downtime. The supportive policies and incentives offered by governments to the renewable sector further support market growth.

Indias renewable energy capacity achieved a significant milestone of crossing 200 GW, constituting more than 46.3% of the total energy capacity.¹⁵ This achievement is the result of the countrys increasing efforts to reinforce national energy security and nurture sustainable growth. As of 30th March 2025, Indias renewable energy capacity is led by solar power at 107.95 GW, followed by wind power at 51 GW, large hydro at 46.93 GW, small hydro at 5.1 GW and biomass at 11.32 GW, demonstrating a diverse and sustainable energy mix.^{16 17} India has reaffirmed its commitment to addressing climate change with its revised Nationally Determined Contributions (NDCs) under the Paris Agreement, incorporating the plans outlined at COP26 in Glasgow to achieve Net Zero emissions by 2070.

BESS

Battery Energy Storage System (BESS) capacity installations in India are expected to play a pivotal role in the integration of renewable energy into the national grid. BESS installations will be used to store excess renewable energy during low demand and dispatched during peak demand, thereby aiding grid stability and reliability. It is projected that by FY 2030, 23-24 GW (around 120 GWh) of BESS capacity will be commissioned in line with Indias overall renewable energy targets.¹⁸

This growth is supported by the growing contribution of variable renewable energy sources, i.e., solar and wind, to the energy mix of the country. Decline in battery prices and improvement in storage technologies have rendered BESS a cost-effective option. India will need around 41.7 GW or 208 GWh of BESS by 2030 to meet its clean energy goals.¹⁹

The cumulative investment needed for this transition is projected to be over H5 lakh crore by 2030, making India a world leader in renewable energy storage solution.²⁰ Such large-scale investment will be crucial to managing the variability of renewables and achieving the countrys clean energy targets.

Indian Wind O&M Market²¹

India has the fourth largest installed wind power capacity globally, with a total of 50.04 GW as of FY25, of which 4.15 GW was added during the year.²² The expansion of the wind industry has resulted in a strong ecosystem, including an annual domestic manufacturing base of about 18,000MW.²³ The wind sector employed approximately 52,200 people, with nearly 40% of these jobs in Operations and Maintenance (O&M) and 35% in construction and installation.²⁴

Indias geographical diversity provides substantial wind energy potential. At 120 metre above ground level, the estimated gross wind potential is 695.50GW, increasing to 1,163.85 GW at 150 metre.²⁵ According to Global Wind Energy Council (GWEC), India is projected to achieve 122GW of installed wind capacity by FY2032.²⁶ Further, the Government of India plans to issue 10GW of exclusive wind tenders annually until FY2028.²⁷ In addition, the hybrid, round-the-clock (RTC) and firm and dispatchable RE (FDRE) project awarding have witnessed a significant growth over the past two years, further adding to wind power demand. This consistent ramp-up is expected to promote an industry upcycle for wind OEMs and bolster the high-margin O&M segment, as new installations become serviceable within two to three years. O&M contracts, often feature high renewal rates with annual price escalation clauses, making the segment financially attractive.

In the offshore wind sector, the government has introduced a Viability Gap Funding (VGF) mechanism to stimulate development. With a total outlay of H7,453 crore, the funding aims to accelerate offshore wind energy project deployment by 2032, positioning India as a competitive player in offshore renewables.²⁸

Wind Power Potential in India at 150 meter Above Ground Level (AGL)

S.		Wind Power Potential
	State	at 150m Above
No.		Ground Level (GW)
1	Andhra Pradesh	123.33
2	Gujarat	180.79
3	Karnataka	169.25
4	Madhya Pradesh	55.42
5	Maharashtra	173.86
6	Rajasthan	284.25
7	Tamil Nadu	95.10
8	Telangana	54.71
	Total (8 windy States)	1136.71
	Other States	27.14
	All India Total	1163.85

Source: Ministry of New and Renewable Energy

Renewable Capacity Target

India targets 500 GW of non-fossil fuel power capacity by 2030 to advance its Paris Agreement commitments as it progressed towards net zero emissions. The plan involves addition of 50 GW of renewable energy capacity annually for 5 consecutive years till FY28.²⁹

Government Initiatives

Domestic content requirement for wind

According to the National Electricity Plan, India plans to add 400 gigawatts of wind power by 2047. This provides massive visibility for wind OEMs and a significant opportunity spanning multiple years for O&M service providers.³⁰

India has mandated domestic content requirements for new wind projects by requiring the use of major turbine components like blades, towers and generators from Indias Approved List of Models and Manufacturers (ALMM) and encouraging local R&D, data centers and cybersecurity facilities. NITI Aayog has also proposed a minimum 75-80% local sourcing by value to boost domestic manufacturing and address cybersecurity concerns from imported components. These domestic content requirements create a more favourable business environment for local wind O&M service providers by mandating local infrastructure, regular maintenance requirements and reducing unfair competition from low-cost imports.

Union Budget 2025-26 allocation

The government has allocated ~26,549 crore for the development of renewable energy, marking a 53% increase from the previous years budget, reflecting Indias continued commitment to accelerate the renewable transition.³¹

Renewable Energy Parks

The Government of India has sanctioned 53 solar parks across 13 states, with a total capacity of 39,323 MW. Of these, 13,896 MW of solar power projects have already started operating in 26 Solar Parks as of August 2025, while the remaining are under development. Additionally, Ultra Mega Renewable Energy Parks are being developed to provide necessary land and transmission infrastructure for large-scale renewable energy projects. The scheme aims to target the development of 40GW capacity by FY26.³²

Foreign Direct Investment (FDI)

India allows 100% FDI in this sector through automatic route to facilitate green-field and brown-field investments in renewables.

Solar Energy

The Government of India has been instrumental in promoting solar energy through initiatives such as the National Solar Mission and the Solar Park Scheme. Basic customs duty on solar cells and modules as well as Production-Linked Incentives (PLI) are boosting domestic solar PV manufacturing. Customs duty has been exempted on critical minerals such as lead, zinc, etc. to boost domestic solar PV manufacturing.³³ Indias combined installed and pipeline solar projects stood at 191 GW as of June 2025 showcasing a robust foundation for future growth.³⁴

International Collaborations

India is leading the global collaboration through the International Solar Alliance (ISA), including 120 countries and attracting investments and technological support to strengthen the countrys solar projects.

In the wind sector, India has renewed its MoU with Denmark for another five years, signed a separate agreement with Germany focused on offshore wind development and agreed with the EU on a 2025-28 work plan that deepens cooperation in offshore wind under the India-EU Clean Energy Partnership.

Inter-State Transmission System (ISTS)

ISTS charges for solar or wind projects have been waived for projects commissioned by June 30, 2025, with waiver to be reduced gradually to zero by June 2028. By the end of CY2024, cumulative grant of H 2827.23 crore had been disbursed under the ISTS initiative. Additionally, waiver is applicable for green hydrogen projects until December 2030, and for offshore wind projects until December 2032.

Renewable Purchase Obligation (RPO)

The RPO trajectory up to 2029-30 mandates a progressive boost in the purchase of renewable energy, supporting higher consumption of green power. As per the Ministry of Power (MoP), a revised long-term trajectory for wind energy RPO continues with a target of 1.45% in fiscal 2026 and escalating to 3.48% by fiscal 2030 for wind energy.

Source: Ministry of Power, Corrigendum to RPO & Energy Storage Obligation Order, 19 September 2022 (F. No. 09/13/2021-RCM), as amended October 2023.

*For hilly and North-Eastern States/Union Territories, namely Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, the distributed renewable energy component shall be half of that given in the Table and the remaining component for these States shall be included in the other renewable energy sources.

Ease of Application

The Government of India has standardised bidding guidelines for solar and wind projects to facilitate further private investment. Letter of Credit (LC) or advance payment has been mandated to ensure timely payments for power dispatch.

Renewable Power Trading

Green Term Ahead Market (GTAM) facilitates renewable power trading on the power exchanges.

Carbon Trading

The Carbon Credit Trading Scheme (CCTS), under the Energy Conservation (Amendment) Act, facilitates industry-wide trade of carbon credit certificates through the Bureau of Energy Efficiencys Indian Carbon Market.

The environment ministry has proposed draft rules called the Greenhouse Gas Emission Intensity (GEI) Target Rules, 2025. This mandates factories to meet greenhouse gases emission targets or purchase carbon credits from the carbon market to offset excess emissions.

Research & Development (R&D)

The National Institute of Wind Energy (NIWE) in Chennai is supporting technical development through wind resource assessments and has installed over 900 wind-monitoring stations nationwide.³⁵

Offshore Wind Energy

The government approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects with a total outlay of H 7,453 crore. This involves a spending of H 6,853 crore on commissioning and installing 1 GW of offshore wind farms (500 MW, each off Gujarat and Tamil Nadu coasts), in addition to a grant of H 600 crore for developing two ports to levels that meet offshore wind logistics requirements. Successful commissioning of 1 GW capacity will result in producing approximately 3.72 billion units of renewable electricity per year, resulting in annual reduction of 2.98 million tonnes CO2 equivalent over a period of 25 years. In addition to jump-starting offshore wind growth in India, the scheme will assist in establishing the required ecosystem to facilitate ocean-based economic endeavours that will allow development of a first 37 GW of offshore wind at an outlay of approx. H 4,50,000 crore.³⁶

Wind Repowering Policy

According to the National Institute of Wind Energy, the repowering potential of the country is 25.406 GW considering Wind turbines below capacity 2 MW. The National Repowering & Life Extension Policy for Wind Power Projects of 2023 aims to optimise utilisation of wind energy by maximising energy yield per sq.km of the project area and utilising the latest advanced on-shore wind turbine technologies.³⁷

Growth Drivers

Favourable Government Policies

Government initiatives such as subsidies, tax benefits and grid connectivity support have created an environment conducive to renewable energy development. Moreover, the Make in India and Production-Linked Incentives (PLI) strengthen domestic manufacturing and reduce reliance on imports.

Declining costs and LCoEs

Wind energy costs have also reduced from over 55 cents (current dollars) per kilowatt-hour (kWh) in 1980 to an average of under 3 cents per kWh in the US today.³⁸ The new wind advanced technology turbines being launched in India are more efficient in terms of their Levelized Cost of Energy (LCoE). They have been developed especially keeping in mind that most of the wind sites in India are low wind class sites. To harness the optimal wind potential at these sites, OEMs are manufacturing WTGs with larger rotor diameters at higher hub heights.

The declining cost of solar PV panels has made solar energy more accessible. Improved manufacturing processes and economies of scale have significantly reduced panel prices, encouraging adoption across residential, commercial and industrial sectors.

Technological Advancements

The wind energy sector benefits from longer blades, taller towers and innovations such as wake steering, improving efficiency by up to 1% to 2% annually.³⁹ Adoption of bifacial panels, PERC technology, advanced battery storage, AI and IoT based grid management are optimising energy production and reducing costs. Emerging trends such as floating solar plants and solar-wind hybrid projects further diversify applications while conserving resources.

Environmental Concerns and Climate Goals

India aims to achieve 500GW of non-fossil fuel energy capacity by 2030, contributing to Paris Agreement targets and reducing carbon emissions. ⁴⁰ The government has set a target of achieving 140 GW of wind power capacity by 2030.⁴¹ Indias national wind energy potential is estimated at ~1163GW for 150m and ~695GW for 120m. Further, NIWE has identified an offshore potential of 71GW for offshore wind energy including 36 GW near the coast of Gujarat and 35 GW near Tamil Nadu.⁴²

Opportunities and Challenges

Opportunities

Battery Energy Storage Systems (BESS)

BESS (e.g. pump storage hydroelectricity, battery storage etc.) can be used for storing energy available from renewable sources to be used at other times. This can mitigate the variability of generation in renewable energy sources, improving grid stability and enabling energy/peak shifting.

Energy Demand Headroom

As the third largest energy-consumer, India still has substantial room for energy demand growth, making it a preferable market for renewable investments.

Agricultural Demand

Agriculture provides natural load flexibility due to the variability in irrigation needs. Proper policy mechanisms can further leverage this for grid balancing.

Favourable Weather

Indias rich renewable resources such as sunlight, water and wind makes it an ideal place for investment in renewable energy projects.

Challenges

Macroeconomic Challenges

Factors such as interest rate volatility, inflation, supply chain pressures, political uncertainties and regulatory delays can hamper investment and project timelines.

Overreliance on OEMs

Operation and maintenance of Indias wind and solar plants remain largely tied to the equipment suppliers who built them. This concentration of O&M services continues to delay access to critical operational data and parts procurement. Plant owners face significant downtime increases per incident when sourcing OEM-only spares, eroding generation and revenue. The bankruptcy of OEM businesses in the past also forces adoption of risk mitigation measures by the industry.

Offshore Wind Limitations

Although India has a strong offshore wind potential with vast coastlines, actual development has been slow due to infrastructure gaps like grid integration and port upgrades and high costs high capital costs, limited availability of specialized equipment and vessels and lack of crucial data.

Company Overview

Inox Green Energy Services Limited (Inox Green) is one of Indias leading providers of wind power Operation and Maintenance (O&M) services. The Company specialises in providing long-term O&M services for wind farm projects, including the maintenance of wind turbine generators (WTGs) and the associated common infrastructure that enables the evacuation of power from such WTGs.

Inox Green is a subsidiary of Inox Wind Limited and forms a part of the INOXGFL Group which principally operates in the speciality chemicals and renewable energy sectors.

Information reported to the chief operating decision maker (CODM) for the purpose of resource allocation and segment performance focuses on the single business segment of providing Operations and Maintenance ("O&M") services for WTGs and Common infrastructure Facilities, hence there is only one reportable business segment in terms of Ind AS 108: Operating Segment. The Company is operating in lndia only, which is considered a single geographical segment.

Key Developments During FY25

The Company has also commenced solar and hybrid O&M services from FY26. These segments are anticipated to add to Inox Greens profitability which is majorly accruing from the wind O&M business currently, supported by operational synergies. With the addition of ~ 1.6 GWp of solar O&M contracts to its portfolio in Apr- May25, the Companys total renewable O&M portfolio currently stands at ~ 5.1 GW. As of FY25, the Companys Wind O&M portfolio stood at ~3.5 GW. The Company continues to strengthen its service offering, by adding value-added and refurbishment solutions, leveraging advanced technologies such as drones for cleaning and inspection, to, enhance operational efficiency and safety.

The Company was able to achieve 96.3% average machine availability for the portfolio during FY25. This is a significant improvement over the past years, a result of our relentless efforts to improve efficiencies and supported by our technological and manpower capabilities. Additionally, we continue to provide several value-added services, including booster sales, carbon credit trading and refurbishment services for old/unserviced/inoperational/damaged wind turbines, which is also contributing to our revenue growth.

During the year, the Company has successfully deployed drone technology for the inspection of substations, 33KV and EHV lines for defect identification, rectification and improving reliability. It has also deployed drones for cleaning of turbine blades. This has improved our efficiency, reducing the turn-around time for the cleaning process and cutting down unsafe manpower working conditions.

In FY25, the Company indigenised several critical spare parts and equipment including control systems, gear box among others, by developing in house capabilities and tying up with local vendors. This significantly reduces the supply chain risks and timelines for maintenance activities resulting in cost savings.

Inox Green raised Rs 1,050 crores through a mix of shares and warrants on preferential basis to promoters and other marquee investors during the year.

Our subsidiary, I-Fox Windtechnik, won two bids for the O&M of wind power projects cumulating to 54 MW from one of the leading Indian PSUs.

Scheme of demerger of substation business from Inox Green and subsequent merger into Inox Renewable Solutions has received ‘no objection from the stock exchanges in July 2025. Subsequently, the scheme has been filed in the NCLT.

The Companys "VayuVeer" program, launched by us to create highly trained skilful manpower with six months of technical and on job training, has successfully trained two batches of Vayuveers. This has helped the company to create sustainable business operations and control costs to achieve our desired results, as we are significantly and rapidly scaling up our operations across several locations. The program has helped to create job opportunities for local youth and also meet our social commitments.

During FY25, the Companys total income increased by 29% to H 290 crore, from H 226 crore in FY24. EBITDA grew by 32% to H 123 crore, from H 93 crore in the previous year.

Outlook

The Company anticipates expanding its O&M portfolio to >10 GW within the next 2 years, driven by both organic growth (wind and hybrid projects) and inorganic opportunities (acquisitions). Inox Green has a prudent strategy for acquisitions with a focus on value creation and clean asset quality.

5.1 GW

Portfolio as on FY25

(including Wind O&M and Solar O&M Contracts)

3.5 GW

Wind O&M Portfolio

1.6 GWp

Solar O&M Contracts

17 GW

Target Portfolio within the next 2 years

Organic Growth Opportunities

The Company aims to grow its portfolio through new long-term O&M contracts with customers purchasing Inox Wind Limiteds Wind Turbine Generators. IWLs order book of 3.2 GW provides a very strong visibility to the Company since almost all of the orders include O&M service to be provided over multiple years by Inox Green.

INOXGFL Groups foray into solar through Inox Solar is expected to add large scale solar project O&M, providing opportunity of growth to Inox Greens portfolio.

O&M contracts from the groups IPP platform under Inox Clean Energy, which targets >3 GW of installed capacity, is expected to further strengthen to the growing portfolio.

Inorganic Growth Opportunities

IGESL can explore inorganic growth opportunities through O&M business of inactive or stressed players, which stands at ~10GW of capacity. Being a credible, renowned and experienced Indian O&M service provider, the Company can leverage the shifting demand towards strong, organised players.

Inox Greens M&A framework to pick high quality value accretive targets:

Sacrosanct valuation multiple / IRR threshold defined by a prudent capital allocation policy of the company

In depth due diligence process on the target with detailed business, legal, technical and financial analysis & projections

Targets capabilities, strengths, areas of improvement and future growth potential are amongst the key considerations

Objective is that the deal should be mutually beneficial for Inox Green and the target company resulting in immediate and long-term value creation

Acquisition of I-Fox Windtechnik

Inox Green acquired 51% stake in I-Fox in February 23 at ~ 4x EV/EBITDA

The acquisition has been significantly value-accretive as:

I-Fox has substantially improved its revenue and EBITDA in FY25, within a year of acquisition

It has won two major PSU tenders from NLC India post acquisition

I-Foxs technology prowess provides an edge as it services 16 types of WTG models across 9 OEM makes

The company also provides large scale corrective repair services and other value-added services.

Financial Overview

For the purpose of resource allocation and segment performance, the Company focuses on the single business segment of providing Operations and Maintenance ("O&M") services for WTGs and Common Infrastructure Facilities, hence there is only one reportable business segment in terms of Ind AS 108: Operating Segment. The Company is operating in lndia only, considered a single geographical segment.

( H in lakhs)

			Consolidated					Standalone
Particulars
			2024-25			2023-24		2024-25	2023-24
Total Income			29,018			26,119		28,026	24,127
Profit/(Loss) before exceptional item and tax from operations			3,473			3,340		5,450	4,169
Profit/(Loss) before tax from operations			3,473			3,340		5,450	1,578
Total tax expense			1,544			360		1,599	428
Profit/(Loss) after tax for the year from continuing operations			1,929			2,979		3,850	1,150
Profit/(loss) from Discontinued operations (after tax)			257			(213)		-	-
Profit/(loss) after tax for the year			2,186			2,766		3,850	1,150
Key Ratios
Ratios	% / Times	2024-25		2023-24	% Change		Reason for Variance
Debtors Turnover	times	1.39		1.92	(27.18)%		Due to increase in trade
							receivables
Inventory Turnover	times	1.08		2.14	49.41%		Due to increase in inventories
							correspondingly reducing
							cost of consumption.
Interest Coverage Ratio	times	3.94		0.40	(887.79)%		Due to increase in
							operating profitability and
							correspondingly repayment of
							debt and decreased interest
							cost
Current Ratio	times	5.61		2.15	160.88%		Due to grant of loans to
							subsidiries companies.
Debt Equity Ratio	times	0.06		0.09	31.22%		Due to increase in Equity
							Share Capital and security
							premium on it
Operating Profit Margin	%	35.10%		20.11%	74.53%		There has been increase in
							operating profit
Net Profit Margin	%	18.81%		5.69%	(230.30)%		There has been increase in
							operating profit
Return on Net Worth	%	2.67%		1%	137.19%		There has been increase in
							operating profit

Human Resource

INOX Green recognises the critical function its human capital plays in its sustained growth and success. Consequently, its human resource strategy focuses on ensuring excellence and acquiring and retaining the best talent in the sector. To ensure continuous upskilling initiatives the Company conducts training sessions, workshops and certifications. These efforts ensure the staff to stay aligned with the latest industry trends and best practices, enabling them to make meaningful contributions to the Companys objectives.

For the development of a team-based work culture, the Company promotes open communication and collaboration at all levels. In this way, employees are able to collaborate toward shared goals and the development of a positive and stimulating work environment.

The Company has a strict Code of Conduct that governs all trading-related activities to ensure compliance with insider trading rules. It has also put in place some policies that promote equal employment opportunities and upholds non-discriminatory practices across its human resources framework.

As of March 31, 2025, the Company had a total of 682 employees, including contractual staff.

Risk Management

Risk	Risk Impact
	The wind energy industry is highly
Competitive
	competitive, constraining growth
Pressures
	abilities.
	Changes to or withdrawal	of
	government initiatives and incentives
Regulatory	relating to renewable energy sources,
challenges	may have an adverse effect on	the
	demand for wind energy, thereby
	affecting the business.
	Technological advancements can offer
Technological	competitors an edge in performance
Risk	or cost efficiency.
	Heavy dependence on wind-rich
Geographic
	regions may restrict scope	for
Limitations
	expansion.
	A shortage of skilled workforce
Workforce	and high attrition can impact	the
Shortage Risk	operational efficiency of the Company.
Third-party	The Companys transactions involves
Transaction	dealing with third parties which	has
Risk	several associated risks.
	Contracts signed by IGESL may
	experience delays in commencement,
Contract-
	modifications, or cancellations,
related Risk
	affecting the Companys growth
	prospects.

Mitigation Strategy

The Company prioritises predictive maintenance practices over reactive strategies, aiming to mitigate any risk occurring due to fierce competition.

The Company remains abreast of regulatory developments and undertakes necessary measures to effectively safeguard against any adverse policy changes.

The Company has adopted 24/7 centralised asset monitoring, advanced SCADA analytics, a mobile-first operations and maintenance management tool and is transitioning to the upgraded SAP HANA platform to boost technological resilience. The Company operates across eight high wind resource states, managing a 3.35 GW O&M portfolio, along with additional value-added services contracts.

The Companys human resources department engages in several training and development programmes to enhance the skills and competencies of its workforce, ensuring alignment with the changing needs of the business dynamics.

IGESL believes that all transactions are conducted fairly and impartially. The Company is dedicated to promptly addressing any conflicts of interest that may arise in the future.

IGESL enters into standard water-tight contracts with customers, limiting liabilities and ensuring incorporation of all services into the contract. To the extent possible, due to our strong relationships with customers, any issues or concerns are amicably resolved through a discussion-based approach.

Internal Control Systems

The Company has implemented robust in-house control systems to facilitate effective governance and compliance. These systems consist of a well-defined organisational framework, policies and procedures. The Code of Conduct framework and a Whistleblower mechanism are handled by a special committee in order to maintain ethical standards. Technology also plays a key role in these controls, with the implementation of ERP systems, integration of CRM and a Shared Service Centre to enhance efficiency and control. Frequent audits and a centralised Revenue Assurance function further enhance financial controls, with an internal financial control framework and compliance management tool available for ongoing monitoring.

The Audit Committee periodically reviews the adequacy of these internal controls. The organisation aims to preserve a culture of professionalism, transparency, fairness and ethical behaviour in all operations. Directors and employees are invited to report concerns or misconduct via the whistleblowing policy, which provides a safe forum for disclosures. The organisation also examines the reporting structure, qualifications and seniority of the internal audit department, the reporting structure and the scope and frequency of internal audits. Moreover, there is a vigil mechanism that safeguards employees and directors against any victimisation when utilising this framework. Direct contact with the Chairperson of the Audit Committee is permitted by this mechanism to help individuals raise real concerns or grievances.

 

Cautionary Statement

This Management Discussion and Analysis report contains forward-looking statements, which are predictions, expectations, projections, or estimates regarding the Companys objectives.

These statements rely on specific assumptions and expectations about future events. However, actual results may differ from these statements due to various factors, including changes in government regulations, tax laws and other statutes. Readers should consider the context in which these statements are made and acknowledge that they may not accurately reflect future outcomes.