Axis Securities has upped its estimates for wind energy provider Inox Wind and appears more optimistic about the firm’s outlook.

What Happened: The brokerage had a “buy” rating for the stock with a target price of ₹270, which represents a 20% upside from its current market price.

Axis has increased the estimates of the firm’s key financial metrics for the upcoming years. It now expects the wind firm’s revenue to rise by 4% in FY26 and by 13% in FY27. It expects EBITDA and profit after tax to grow by 9% and 10%, respectively, in FY26 and 17% and 22% in the following year.

Higher order execution than what it had expected earlier will be a driver of growth, the brokerage said. It now expects Inox to clock in orders totalling 1,750 megawatts, higher than 1,560 megawatts as previously estimated. However, this would still be still lower than the company’s target of 2 gigawatts.

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“The company has the capability and supply chain readiness to execute higher megawatts… With a robust order book, strong execution capability, technological readiness, and net interest-free debt, along with the government's renewed focus on wind energy, Inox Wind is well-positioned to build on its growth momentum,” the brokerage noted.

Moreover, Inox Wind's engineering, procurement and construction projects arm, Resco Global has approved a ₹350 crore equity raise from marquee investors. The funds will be used to expand Resco's business offerings, leveraging favourable conditions in India’s wind energy sector.

The brokerage estimates Resco's valuation at ₹5,000 crore, and that the ₹350 crore fundraise is likely to result in a 7%-8% stake dilution. Additionally, Inox Green Energy substation assets will be de-merged and merged into Resco Global, creating synergies between both businesses. Following regulatory approvals for the demerger of these power evacuation assets, Resco Global will be automatically listed.

“This will lead to an asset-light structure of the listed Inox Green Energy Ltd, unlocking its value, and Resco will be using these substation assets to generate additional revenue streams,” Axis said.

Price Action: Shares of Inox Wind were down 1.14% to ₹223.31 on Monday afternoon.

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