Inox India Ltd - Steady Growth Outlook - Company update

We retain our BUY rating and TP of Rs 1,540 on Inox India following a solid Q2FY26 performance marked by steady margins and strong execution in Industrial Gases and LNG. While order inflows were modest, the outlook for H2FY26 remains robust with large LNG and Cryoscientific orders expected. Backed by a healthy Rs 14.85 bn backlog, resilient export mix, and expanding presence in high-growth areas such as decarbonization, and space infrastructure, Inox is well positioned to benefit from accelerating clean energy and technology investments. With strong execution capabilities and visibility into upcoming projects, the company remains on track to deliver 18–20% revenue growth in FY26 and sustain long-term value creation.

Growth momentum maintained and in-line with expectations:

Inox India delivered a strong quarter with revenue at Rs 3,582 mn (+17% YoY, +5% QoQ), driven by robust execution in Industrial Gases and LNG, partly offset by softer Cryoscientific sales. EBITDA stood at Rs 780 mn (+22% YoY), margins at 21.8% (+100 bps YoY), and PAT at Rs 608 mn (+23% YoY). Performance met expectations, with steady margins, resilient order book, and improving mix.

Continued traction in Industrial Gases, clean energy, and exports should sustain growth. H2FY26 is expected to be relatively stronger versus the first half.

Key orders to drive H2FY26:

The Industrial Gases division secured marquee orders—a cryogenic tank for a USA-based space firm and a hydrogen tank for a European semiconductor client—while LNG won smaller regasification projects near the Bahamas. Cryoscientific received an ITER repair order, with more ITER and ISRO work expected. Management is optimistic about a large Mini-LNG terminal (~Rs 2 bn) and new beverage keg orders from Heineken and AB InBev in H2FY26. With strong execution and healthy inflows, Inox is on track to achieve its 18–20% revenue growth guidance.

Strong play on decarbonization:

Despite a modest 2% QoQ order backlog rise, Inox continues to strengthen its foothold in high-growth areas like semiconductors, space, and beverage kegs. With a Rs 14.85 bn backlog book-to-bill of 1.1x, visibility remains good. Having supplied its products to reputed customers in the clean tech space, Inox India stands to benefit from rising investments in clean energy globally. A diversified pipeline, domain strength, and opportunities in advanced applications reinforce long-term growth potential.

Valuation:

We have valued Inox India at 40.0x P/E and 30.0x EV/EBITDA on September 2027E estimates to arrive at a TP of Rs 1,540 with no changes made to our estimates or our TP. Key risks: Sharp increase in LNG prices leading to delayed LNG adoption, delay in new cryo-scientific projects.

Company website: https://inoxcva.com/

Click to download the full Inox India Ltd. 2Q FY26 Company Update

Analyst: 

• Mohit Surana - Senior Research Analyst, Institutional Equities (NISM-202300189881)
• Mohd Haris - Research Associate, Institutional Equities (NISM-202400161268)

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