Inox Green Energy Services Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Inox Green's FY2026 record shows a sharp rise in reported profit, but the cash behind it has not followed, and the auditor has repeatedly flagged the same issues for four straight years. The company is also running a large web of related-party deals and guarantees, and its biggest contingent liability is a wind-farm commitment where the bank guarantee has already been invoked.

Key findings

  1. Profit is increasingly disconnected from operating cash, with equity raises parked in money-market instruments Major - Consolidated PAT rose from ₹19.29 crore in FY25 to ₹103 crore in FY26, while CFO rose from ₹60.37 crore to ₹66.89 crore, leaving CFO/PAT at 0.65x in FY26 versus 3.13x in FY25. Other income of ₹176 crore constituted 97.2% of PBT of ₹181 crore in the latest consolidated period. The auditor's CARO report for FY2025-26 states funds from a private placement were partly used for the purpose raised, with the balance ₹453.72 crore invested in money market instruments and Inter-Corporate Deposits as per the standalone financial statements.
  2. Clean opinions every year, but the auditor has repeatedly flagged unbilled O&M revenue, statutory-dues delays, and audit-trail gaps Major - The standalone and consolidated audit opinions for FY2022-23 through FY2025-26 were all unqualified, with no reservations or qualifications. However, the auditor's Emphasis of Matter on unbilled O&M services has persisted, growing from ₹123.79 crore in FY2023-24 to ₹124.12 crore in FY2024-25, then declining to ₹114.82 crore in FY2025-26. CARO also reported that undisputed statutory dues were "NOT regularly deposited during the year, delays in a large number of cases" in all four years, and the audit-trail exception under Rule 11(g) persisted across three years.
  3. Related-party web runs on demand loans, cross-guarantees and enabling approvals sized far above its own turnover Major - Inox Green sought omnibus shareholder approval on 22 Jul 2026 for guarantees from Inox Wind Limited up to ₹500 Crore for 12 months, against a materiality threshold of ₹28.10 Crore (10% of FY2025-26 consolidated turnover of ₹281 Crore). Proposed related party transactions with Gujarat Fluorochemicals Limited and between subsidiaries and Inox Renewable Solutions Limited have aggregate values of ₹200.25 Crore and ₹350 Crore, constituting 71.26% and 124.55% of Inox Green's annual consolidated turnover respectively. Inter-corporate deposits from holding and subsidiary companies are unsecured, repayable on demand, and carry interest at 12% p.a., with no expected credit loss calculated for balances outstanding with Group Companies.
  4. Revenue recognition rests on straight-line O&M billing that has left ₹114.82 crore unbilled, with no ECL against related-party receivables Major - Standalone revenue for FY2025-26 was ₹238.48 crore, mainly from O&M services recognised on a straight-line basis, and the auditor designated revenue recognition a Key Audit Matter. Certain O&M services already rendered but yet to be billed amounted to ₹114.82 crore as at 31 March 2026, a figure that has remained persistently large across four years. ECL was not calculated for balances outstanding with Group Companies, and no expense was recognised for bad or doubtful trade receivables from related parties for FY2025-26 and FY2024-25.
  5. Contingent liabilities are dominated by a ₹1,157 crore SECI wind-farm capital commitment and a multi-year bank-guarantee dispute Major - The company's capital commitment for SECI-awarded wind farm projects remained at ₹1,156.98 crore in FY2025-26, unchanged from FY2024-25. The six SPVs' project completion date expired as at 30 June 2024, extension applications were rejected on 2 September 2024, the bank guarantee was invoked, and CERC disposed of the appeal on 17 November 2025 rejecting the company's prayer to retain 300 MW connectivity at Bhuj-II. The Income Tax Department also reported an outstanding demand of ₹96.81 crore for Assessment Year 2023-24 on 22 December 2025.
  6. Reported borrowings understate economic obligations through cross-guarantees and pledged deposits Major - Inox Green's cash credit of ₹9.25 crore from Yes Bank as at 31 March 2026 is secured by a corporate guarantee from Inox Wind Limited and Inox Wind Energy Limited, with a first pari-passu charge on current assets and a second pari-passu charge on movable fixed assets of the Company and Inox Renewable Solutions Limited. Inox Green also provided a first pari-passu charge over its movable fixed assets against a term loan taken by Inox Wind Limited. Other bank balances totaled ₹413.93 crore as at 31 March 2026, of which fixed deposits kept as security against a bank overdraft taken by Inox Renewable Solutions Limited were ₹Nil, down from ₹39.8 crore.
  7. A demerger of the power evacuation business was completed with ₹744.49 crore of net assets debited to reserves Major - The Scheme of Demerger was sanctioned by NCLT on 13 March 2026, with net assets value of the Demerged Undertaking distributed to shareholders amounting to ₹744.49 crore debited to Reserves in FY2025-26. The demerger was accounted for prospectively, with comparatives for FY2024-25 not restated. During FY2024-25, the Company also identified and rectified prior period errors, reducing deferred tax asset by 41.73 crore because it was recognised at 34.944% instead of the prevailing rate of 29.12%.

What to watch

Bottom line: This is a record with unqualified audit opinions every year, but the profit growth is not backed by operating cash, and the auditor has repeatedly flagged the same issues, unbilled revenue, statutory-dues delays, and audit-trail gaps, for four years. The risk sits in the gap between reported earnings and cash, and in the scale of related-party and contingent obligations that sit outside the balance sheet. Watch whether the unbilled O&M revenue converts to cash, and how the SECI dispute and the Wind World India acquisition resolve.