Inox India Ltd - Robust quarter; sharp growth in order intakes - Company update

Inox India reported a strong Q4FY26 performance with revenue and EBITDA beating our estimates by 7.7% and 5.0%, respectively, driven by healthy execution mainly in the LNG segment. Management remained optimistic on growth across aerospace cryogenics, LNG infrastructure and scientific applications. Key wins included a Rs 2bn aerospace order from a leading US private space company and a Rs 850mn marine LNG order from Cochin Shipyard. Further, the Kandla expansion should strengthen capabilities for ultra-large cryogenic systems. We have cut our PAT estimates by 4.9%/3.6% for FY27/28E stemming from lower interest and other income, though remain positive on the stock given strong execution, niche positioning and favorable long-term industry tailwinds. We have retained BUY rating on the stock and increased TP to Rs 1,656 due to valuation rollover.

Strong Quarter, Healthy Execution:

Inox India reported a robust Q4FY26 performance with revenue growing 24.7% YoY to Rs 4.6bn, materially ahead of estimates, led by healthy execution across industrial gas, LNG and cryo-scientific segments. EBITDA grew 15.9% YoY to Rs 947mn, although margins moderated 156bps YoY to 20.5%, reflecting a higher share of project-led execution and evolving product mix. PAT stood at Rs 752mn registering 14.8% YoY growth. For FY26, revenue/EBITDA/PAT grew 21.5%/21.4%/14.1% respectively, underscoring the company’s ability to sustain strong growth despite macro uncertainties and tariff-related disruptions in certain export markets.

Aerospace And LNG Drive Growth:

Order intake for the quarter grew 38%/29% YoY/QoQ to Rs 5.0bn, while the order book increased 12%/4% to Rs 15.1bn, respectively. Management highlighted a strategic shift toward higher-value, technology-intensive opportunities. Aerospace cryogenics emerged as a key growth driver with a Rs 2bn order from a leading US private space company and visibility for similar inflows in FY27E.    LNG solutions continue to see strong traction, driven by cleaner fuel adoption, with the company entering the marine LNG ecosystem through an Rs 850mn order from Cochin Shipyard. Repeat orders from ITER France, steady disposable cylinder volumes and beverage keg approvals from global brewers further aid diversification. The Kandla expansion enhances capabilities for ultra-large cryogenic systems, creating opportunities in aerospace, energy storage and industrial applications.

Structural Growth Momentum Builds:

We believe Inox India is steadily positioning itself as a niche global cryogenic solutions player with improving exposure to structurally attractive themes such as LNG infrastructure, aerospace, energy storage and advanced cooling systems. While increasing project mix could elevate working capital intensity and create near-term margin volatility, management’s FY27E guidance of 18–20% revenue growth with 21–24% EBITDA margin remains encouraging. The company’s technological capabilities, regulatory entry barriers and expanding global presence should continue to support premium positioning and long-term growth visibility.

Valuation and Rating:

We have valued Inox India at 40.0x P/E and 30.0x EV/EBITDA on March 2028E estimates to arrive at a revised TP of Rs 1,656, up from Rs 1,610 earlier due to valuation rollover. Retain BUY. Key risks:  Geopolitical concerns creating logistical challenges, sharp increase in LNG prices, and delay in new winning new cryo-scientific and LNG projects.

Company website: https://inoxcva.com/

Click to download the full Inox India Ltd. Q4FY26 Company Update

Analyst: 

• Mohit Surana - Senior Research Analyst, Institutional Equities (NISM-202300189881)

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FAQs on Inox India Ltd. Q4FY26 Report

What drove Inox India’s Q4FY26 performance?

The company reported strong growth driven by healthy execution in LNG infrastructure, industrial gas systems, and cryogenic scientific applications.

Why is Inox India considered a strong long-term growth company?

Inox India benefits from rising demand for LNG infrastructure, aerospace cryogenics, clean energy solutions, and advanced industrial gas systems globally.

What is the target price for Inox India shares?

Analysts maintain a BUY rating on Inox India with a revised target price of Rs 1,656 based on strong order inflows and long-term industry tailwinds.