Inox Wind Ltd

NSE:INOXWIND

Q2-2026 Earnings Call

[Operator]

Ladies and gentlemen, good day, and welcome to Inox Wind and Inox Green Energy Services Limited Q2 and H1 FY '26 Earnings Conference Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.

[Mohit Kumar, analyst]

Good evening. On behalf of ICICI Securities, I welcome you all to the Q2 FY '26 earnings call of Inox Wind and Inox Green Energy Services.

For today's call, we have with us Mr. Devansh Jain, Executive Director, INOXGFL Group; Mr. Akhil Jindal, Group CFO, INOXGFL Group; Mr. Sanjeev Agarwal, CEO, Inox Wind; Mr. S.K. Mathu Sudhana, CEO, Inox Green; and other senior members of the management.

I will now hand over the call to the management for their initial remarks, after which we'll open the floor for the Q&A session. Thank you, and over to you, sir.

[Sanjeev Agarwal, executive]

Thank you so much, Mohit. Good evening, everyone, and thank you for joining the Q2 FY '25 Earnings Conference Call of Inox Wind Limited and Inox Green Energy Services Limited.

I will first brief you on the financial and operational achievements of Inox Wind for the quarter under review as well as other key developments and future road map before handing it over to Mathu for his briefing on the development at Inox Green.

We are pleased to inform you that we have been able to deliver the best ever Q2 in Inox Wind history despite the quarter being substantially impacted due to monsoons. With over 200 megawatts executed in Q2 and around 350-megawatt in H1, we are on the track to achieve our guidance for the full year, with H2 generally being 70% of the annual execution.

I will briefly take you through some of the key results of Inox Wind's financial performance for Q2 FY '26. On a consolidated basis, Inox Wind has reported a revenue of INR 1,162 crores, an increase of 56% Y-o-Y; EBITDA of INR 271 crores, an increase of 48% Y-o-Y; PAT of INR 121 crores, an increase of 43% Y-o-Y; cash profit of INR 220 crores, an increase of 66% Y-o-Y. Execution for the quarter stood at 202 megawatt, taking the total execution of the first half of FY '26 to around 350 megawatts.

On the order book front, we have a large and very diversified order book, which currently stands at over 3.2 gigawatt. We are building new customer relationships and continue to fortify our existing relationship. Further, we are also discussing with multiple customers, including the group IPP to enter into a framework agreement and partnership which would provide long-term recurring annual orders. Cumulatively, these arrangements -- agreements will secure upward of 1 gigawatt of annual recurring orders for Inox Wind going ahead. Consequently, we are confident to close FY '26 with a very strong net order book, which will provide execution visibility for the subsequent 18 to 24 months. Our manufacturing facility, including the recently commissioned nacelle & hub unit at Kalyangarh, Gujarat are operating at high utilization levels and EPC activities on multiple sites are on full swing post the monsoons.

Further, we are expanding our manufacturing presence in South India by setting up a new blade & tower manufacturing facility, giving us quicker access to large sites across Karnataka, Andhra Pradesh and Tamil Nadu.

With my colleague, Mathu will brief you in greater details. We are related with achievements and prospect of our subsidiary, Inox Green, where Inox Wind holds 56% currently. Inox Green has 12.5 gigawatt of renewable portfolio directly or through investments made for multi-gigawatt portfolio acquisitions. The group IPP with ambitious plan of setting up multi-gigawatt renewable energy capacity annually provides a strong portfolio additions -- additional visibility. Further, with the organic and inorganic growth prospects of the company, we believe Inox Green is on track to become the largest renewable O&M player in India.

Another positive development is a scheme of demerger of the substation business from Inox Green and its subsequent merger into Inox Renewable, receiving approval from shareholders and creditors. This will add value for both Inox Green -- sorry, Inox Wind with subsequent listing of Inox Renewable solution as an EPC arm of Inox Wind and Inox Green with elimination of depreciation on demergers of the assets block.

With a global shift towards greener power, India has also set ambitious plan for the complete transition to renewable energies. Hybrid projects are gaining pace to achieve this transition, wind along with solar plays an important role in this hybrid projects. Wind complementaring to solar and Indian conditions make it as an important source of power for grid stabilization as well as higher grid utilization. Also price arbitrage compared to merchant power, especially during the peak hours, makes wind an important source.

The recently announced reduction in GST for wind components from 12% to 5% is another positive development in the increasing list of favorable policies being in place for Indian wind sector, including ALMM for wind and wind turbine components, amendment to CERC connectivity and GNA regulations for ISTS, allowing hybridization of existing solar and wind transmission projects among others. With all building blocks in place, I believe Inox Wind is well set to embark on next leg of growth.

I would now hand over to S.K. Mathu Sudhana, CEO of Inox Green for his remarks. Mathu?

[S. K. Sudhana, executive]

Thanks, Sanjeev. Good evening, everyone. I will firstly brief you on our financial achievements of Inox Green during the quarter before moving to other aspects.

During Q2 FY '26, Inox Green reported best ever financial performance. Total income of INR 129.5 crores, up by 101 percentage year-on-year. EBITDA of INR 52.2 crores, up by 52 percentage year-on-year. Profit before tax of INR 40.9 crores, up by 323 percentage year-on-year. Profit after tax of INR 28.1 crores, up by 363 percentage year-on-year. Cash PAT of INR 50.9 crores, up by 121% percentage year-on-year. During the quarter, the mission availability of the entire portfolio averaged 96.3 percentage.

Inox Green portfolio stands at 12.5 gigawatt including the investments which we have made to acquire 6.5 gigawatts of operational wind O&M assets of 2 companies. With the financials expected to consolidate into Inox Green's books in FY '27 post statutory approvals. We expect our profitability to grow manifold in FY '27 over FY '26. The scheme of demerger of the substation business from Inox Green and its subsequent merger into Inox Renewable Solutions has received approval from shareholders and creditors. Once this scheme received final approval from NCLT, gross block of around INR 1,000 crores will be eliminated from Inox Green's balance sheet and subsequently, the annual depreciation of INR 50 crores to INR 55 crores will be eliminated thereby increasing the profitability. It will also lead to significant improvement in the ROE and ROCE of Inox Green.

Inox Green has rapid growth plans on both organic and inorganic fronts. We will continue to be beneficiaries of our parent company Inox Wind's rapid execution growth. Additionally, large-scale plans of our group IPP company and solar module vertical will also benefit us going ahead. I believe Inox Green is well on track to become India's largest renewable O&M company in the very near future.

I will now hand over to our Executive Director, Mr. Devansh Jain, for his remarks. After which, we will open up the floor for the Q&A. Thank you.

[Devansh Jain, executive]

Hi. Good evening, everybody. While Sanjeev and Mathu are taking you through the brief financial and operational performance of their respective companies, let me just touch upon some of the strategic initiatives that we have undertaken across the renewables vertical of the INOXGFL Group. At the outset, I am pleased with what we have been able to achieve so far, building one of the most integrated groups in the energy transition space. Today, we are present across the value chain in renewables right from manufacturing of wind turbines and solar modules, project development, EPC and commissioning to O&M services and now renewable power generation. At the same time, our group companies are also large consumers of energy.

Our IPP venture, I believe, is the most strategic fit in the group as it enhances the value of all our existing businesses. While Inox Wind stands to gain through recurring turnkey orders over the next several years, Inox Green also gains through the constant addition of capacities to its O&M portfolio. At Inox Wind, all our strategic decisions related to backward and forward integration has started to yield results. Additionally, at Inox Wind, we're strategically pivoting ourselves to enter into long-term framework agreements with multiple IPPs, which will lead to a large recurring annual order inflow visibility. Further, Inox Green has acquired multi-gigawatt O&M portfolios through investments, which takes our current O&M portfolio to 12.5 gigawatts and sets us on course to make Inox Green the largest renewables O&M company in India.

This has been done in one of the shortest times globally ever. There has been a substantial progress in the substation demerger scheme which has now received approval from shareholders and creditors. I believe that the demerger and subsequent listing of Inox Renewable Solutions will unlock substantial value for both Inox Wind and Inox Green.

I thank all our shareholders and creditors for their continued and unwavering support for all of our group companies. Thank you, and now we can open the floor for Q&A.

[Operator]

[Operator Instructions] The first question is from the line of Akhilesh Rawat from Ridanta Vision Private Limited.

[Akhilesh Rawat, analyst]

Am I audible?

[Operator]

Yes. Please go ahead, Akhilesh.

[Akhilesh Rawat, analyst]

Yes. First of all, I want to congratulate management on good sets of numbers. So I have 2 questions. Sir, my first question is like you have raised a financial '26 EBITDA margin guidance to 18%, 19%. Could you break down how much uplift comes from backwardations like nacelles, transformers and cranes and how much come from royalty cessation on the 3-megawatt platform?

[Unknown Executive]

Thank you for your question. So broadly, we don't give specific breakups of the benefits coming in from the activities that we are doing. But we've said it multiple times that the royalty, which has gone off now for the 3-megawatt turbines is broadly around INR 600,000 per megawatt. I'm sure you can make out from the numbers that already given several times. But on the 18% to 19% EBITDA margin guidance that we had increased in the last quarter, we continue to stick on that.

[Akhilesh Rawat, analyst]

Okay. Okay. And my second question is like you mentioned focusing on completing incomplete sets in quarter 1 con call and maintaining like 120 days net working capital. So could you quantify the megawatt or rupee value of these incomplete sets that are still on the books and expected cash conversion time line, especially of turnkey projects where revenue is recognized early, but cash comes only at commissioning.

[Devansh Jain, executive]

I mean different projects have different payment cycles, but effectively, we've guided for 120 net working capital cycle, and I think we're well on track to broadly achieve that over the course of the financial year. So I'm not sure what specific data you want.

[Akhilesh Rawat, analyst]

So like what is the like rupee value of incomplete set stuck in receivable or inventory today? And like how much of that is expected to convert in Q3 versus Q4?

[Devansh Jain, executive]

Again, there is nothing stuck, likewise is guiding. There's nothing called stuck. We've guided for 120 days of net working capital, and that's what the company will achieve over the course of ongoing quarters.

[Sanjeev Agarwal, executive]

You also have an advantage of seeing our balance sheet. So all the numbers that you are asking are the part of our clause 41 disclosure. You can have a look at the inventory and the debtors and the creditors. So working capital cycle is something that is easily available from that clause 41.

[Operator]

[Operator Instructions] The next question is from the line of Mahesh Patil from ICICI Securities.

[Mahesh Patil, analyst]

Sir. Congrats on a very good set of results. Sir, a couple of questions. One on the execution. So we have achieved around 348 megawatt H1 which is close to 29% of our full year target of 1.2 gigawatt. So -- and you have still maintained the 1200-megawatt target. So just wanted to understand for -- so how do you see execution in H2? I mean since we have achieved only 29% and H2 target is very steep.

[Devansh Jain, executive]

No, I think we publicly guided multiple times that H1 and H2 will broadly be 30% to 35%. And yes, we've achieved about 30% in H1. As Sanjeev mentioned, obviously, this is the most affected quarter in terms of monsoons, and I think we are broadly very well on track to achieve that. We've also mentioned our new nacelle manufacturing facility in Kalyangarh has gone live, cranes are deployed across sites, transformer manufacturings have been ramped up. We are extremely confident of achieving that. Having said that, I think we are very well on track even with respect to the financial numbers we've guided for. If you look at the financial numbers over H1, I think we're extremely -- and frankly, we're ahead of track of what we've guided. So we are confident of achieving the overall target for the financial year.

[Mahesh Patil, analyst]

Okay. And sir, speaking of financials. I think we have guided for 18% to 19% margins. But in H1, we are a bit more than 22%. So we're likely to achieve that.

[Devansh Jain, executive]

[indiscernible] upgraded our margins last quarter to 18% to 19%, and we stick to it. We're not changing guidances any at this point in time. Over the past, I would say, 6 quarters, we've upgraded guidances almost 4 times. I don't think it's fair to keep coming back to us and asking us for margin upgrades every quarter. I think we are doing better than what we've guided, and I hope shareholders are happy with that.

[Mahesh Patil, analyst]

Okay. And sir, what about the pipeline we have pipeline? We have 380-megawatt of orders in H1. So if you can guide us in terms of inquiry pipeline and what we can expect in H2?

[Sanjeev Agarwal, executive]

So look, we have said in our guidance that we are working on multiple projects. We've also worked on a strategy where there are tenders which is EPC, there are tenders which are semi-turnkey, and there are tenders which -- where we do equipment supplier. I would say at this point in time, we have an excess of 3 gigawatts of tender pipeline among multiple sectors, which I just explained, and we are extremely confident that we would achieve our guidance. Probably next quarter when we meet, we will talk more about giving some time, even possibility of overachieving it.

[Mahesh Patil, analyst]

I'm asking about the inflow, sir. Order inflow. How do you see the pipeline?

[Sanjeev Agarwal, executive]

Yes. I'm only talking about order inflow. That we have in excess of 3 gigawatt of tenders that we are working on today. This is a mix of complete EPC, semi-turnkey and equipment suppliers.

[S. K. Sudhana, executive]

Just to add to what Sandeep sir has said. So he has mentioned in his opening remarks as well that we are strategically now working on signing framework orders with multiple parties which will, in turn, give us an order visibility and annual recurring order visibility of at least a gigawatt across multiple parties. So that is also something which will come over the next few months.

[Mahesh Patil, analyst]

Sure, sir. So I think in the presentation, you have mentioned that 500 to 700-megawatt each year is expected from our group IP, right? And then maybe 500-megawatt more from other parties?

[S. K. Sudhana, executive]

From multiple other third-party companies.

[Operator]

The next question is from the line of Ketan Jain from Avendus Spark.

[Ketan Jain, analyst]

Congratulations, sir. My question is just a follow-up to the question of the previous participant. I just wanted to understand, recently, there's a media article saying that almost 40 gigawatt of projects without PPAs are expected to cancel and go for rebidding. How do you expect this to impact the sector? Do you expect -- what's your outlook on the ordering activity in wind, especially even in 7 months, the ordering activity has been down. Do you expect this to impact the sector in the near term?

[Devansh Jain, executive]

So a couple of things. First and foremost, with respect to Inox Wind, we don't have any orders in our system which are impacted by these so-called potential PPA cancelations, right? Second, with respect to -- there's been a lot of murmur talk about this for the past 15 months. And many of these tenders are stand-alone tenders of wind, solar. And what's happening, the name of the game is now changed to FDRE/RTC/hybrid from a grid stability perspective, from more absorption of power in the grid. Also batteries become fairly competitive. So people want to add FDRE with more wind.

Honestly, this entire cancellation drive increases the opportunity for the wind sector because you're going to see more and more hybrid/RTC/FDRE tenders, which will lead to more wind component bids as we move forward. I think the other way to look at it is, I mean, we are really moving to a scenario where rather than just taking out tenders and then keeping PPA spending forever, which really leads to no execution because without PPA signing, no FC happens, financial closure and nobody places orders and move forward. We're now moving to a regime where the government is saying, look, let's actually add the power, which the grid needs which is firm hybrid/RTC/FDRE as I mentioned. So I think it's a bold move. It's a proactive move.

And I think putting aside the so-called optical negative input, I think, is a very positive move for the sector to move towards actual genuine bids, which will keep coming up as we move forward.

The other thing to look at it is if you look at the past 7 months of data, what the wind sectors added in the past 7 months in India is close to about 3,500 to 3,700 megawatts of commissioning. So if you just extrapolate that to 12 months and mind you, Q2 is always a monsoon quarter, we're broadly looking at a scenario we are north of 6 gigawatts in this financial year. And across key industry players, we've guided for this year, being 5 to 6 gigawatts next year being 7 to 8 gigawatts. I think the industry is going to surpass this as we move forward.

[Sanjeev Agarwal, executive]

I can just add. This is Sanjeev here. I can just add -- just to tell you that in Inox, we have an extreme robust risk management process. Any tenders that come to us all these nitty-gritties are weighed in before we decide to make a bid. So as what just Devansh said, we have no job in execution, no project in execution, which may impact because of this news which is floating around, neither we have tendered today the 3-megawatt -- excess of 3 gigawatts that we are tendering will fall into this category. So thanks to this risk management process internally in the organization, which has always helped us to be one step ahead of what others do or to take care of the market needs.

[Operator]

The next question is from the line of Madhu Dasari from MD Advisors.

[Unknown Analyst]

Am I audible?

[Operator]

Yes, yes.

[Unknown Analyst]

Devansh sir. My questions are already answered in previous questions. So I just wanted to wish everyone all the best for the coming quarters and take care of your health, sir.

[Operator]

The next question is from the line of Ketan Gandhi from Gandhi Securities.

[Ketan Gandhi, analyst]

Is it possible for you to quantify the number of equipment supply and EPC for the balance in execution in the H2?

[Devansh Jain, executive]

No, Ketan bhai. We will not quantify because we've got different orders at some point in time, some of the equipment supply sites are ready, sometimes they're not ready. So it's not possible to quantify. But broadly, I would say for the course of this financial year, we should be somewhere between 50-50 to 60-40 in terms of turnkey equipment supply.

[Operator]

The next question is from the line of Nitin Kaushik from AFIN Capital Private Limited.

[Unknown Analyst]

Sir, my first question was regarding Inox Green. So what O&M portfolio growth are you expecting in FY '26?

[S. K. Sudhana, executive]

So we've given ample details in our presentation, that we've already reached around 12.5 gigawatts of O&M portfolio across wind and solar. Part of it coming in from the investments that Inox Green has recently made to acquire certain portfolios accumulating to around 6.5 gigawatts. And we've also said in our last call that we have a target to achieve 17 gigawatts of O&M portfolio within the next 2 years. That was from the last quarter. And we are very confident of, in fact, overachieving that number. So probably that should answer your question.

[Unknown Analyst]

Sir, the second question was regarding realization of wind turbine segment. So sir, I wanted to ask what are the current realization of the segment and also what drives these realizations?

[S. K. Sudhana, executive]

So broadly on a thumb-rule basis, what you can consider is INR 8 crores per megawatt for any turnkey contracts, inclusive of GST and around INR 6 crores, INR 6.5 crores for equipment supply. And if we have limited scope EPC along with it, the pricing increases slightly. So that's the thumb rule, which you can consider for any of your projections.

[Operator]

The next question is from the line of Prit Nagersheth from Wealth Finvisor.

[Prit Nagersheth, analyst]

So I just wanted to, first of all, congratulate everybody here, especially on the Inox Green side to achieve a 12.5 gigawatt portfolio, that's just amazing. My question is that given that the assets that could have been acquired or being acquired and I remember in the last call being said that there is also a chance to add more assets via taking over the O&M portfolios of existing players. So is that a strategy that we are still on? If you could shed some light on that, that would help us understanding the road ahead from here, especially on the wind asset side.

[Devansh Jain, executive]

Look, so when we set out at Inox Green, if you recall, the overall ambition was to eventually make it a 10 gigawatt company over the next 2, 3 years ahead of where we are today. Frankly speaking, we've already become 12.5 gigawatts. We've acquired 2 large assets directly indirectly whichever way you want to put it. There are limited opportunities now. But there are a lot of opportunities coming in from some of the aggregators who now think there is no value creation for them being stand-alone. They are certain IPPs who are considering declassifying these O&M assets and outsourcing it to large players like us. And I think that could lead to large numbers being added as we move forward. Moreover besides Inox Wind's own organic growth, we also have Inox Solar on the group, which will add to further capacity and INOX Clean, the group IPP company, which is adding capacity.

So I think hard to give out numbers, but all I can say is I think very near a point where we would, over the next few months, be India's largest renewable O&M services company, which would continue to grow at a very, very healthy pace.

[Operator]

Next question is from the line of Prateek Giri from Subh Labh Research.

[Prateek Giri, analyst]

Sanjeev, my first question -- so I have 2 questions, and I'm sure you're not going to like both the questions. If I look at our execution numbers for the past 4 quarters, it is certainly growing. But if I look at the industry's installation, which India is currently achieving, it is definitely not in line with what installation we are seeing in the country. I am sure there are answers like 35-65, but the industry installation perspective, Sanjeev, what's your opinion on the execution number, which we have been delivering for the past 3, 4 quarters for continuously?. I have a second question, we'll come back on that after the answer.

[Sanjeev Agarwal, executive]

Prateek, we said this before, and again, let me repeat it for all who are listening to us. We are confident to achieve our numbers of 1.2 gigawatt for the full year. There is a plan. The plan is in motion. It has worked. The 30% we just mentioned was our plan in the H1, 70% is the balance to be done with our new factories fully operational and a mix of turnkey, EPC and equipment suppliers. We are absolutely confident to beat this number of 1.2 gigawatt. Prateek?

[Prateek Giri, analyst]

Certainly, Sanjeev. In fact, I am also very hopeful that it will happen. Because last 2 years, we have seen some shortfall in our guidance, but I'm certainly very hopeful. Sanjeev, my second question is on order. My second question is on order inflow.

[S. K. Sudhana, executive]

Just before you ask the second question, if you look at our financial performance over the last 2 years, we've beaten all the guidances and all the analyst expectations on the EBITDA side, on the profitability side. So your question and your concern on 100 megawatts or 50 megawatts here and there is I don't think one should worry because on the financial side of things, on the margin side, we've achieved much higher numbers than what -- the street was expecting us to do. So one has to be mindful of that fact as well when analyzing our company.

[Sanjeev Agarwal, executive]

In fact I said in my speech that this is the best ever quarter 2 performance for Inox in its history despite the monsoons.

[Prateek Giri, analyst]

No, I totally agree with you. Our subsidiary companies are doing phenomenally well. I don't think anyone would have expected Inox Green to have such a large portfolio in such a short span of time and deliver the numbers which it has done in this quarter also. So that is also something which is adding value to the consolidated Inox Wind, which I'm sure all the investors and analysts will be mindful of.

[S. K. Sudhana, executive]

I totally agree with you regarding financial performance. But it is that FY '24 and '25, we had shortfalls in our execution, which were not compensated in the subsequent years. So that is why I thought it is pertinent to raise this issue, but I totally in line with you that probably we will overachieve this year. I am totally hopeful. Thank you for that.

[Prateek Giri, analyst]

Sanjeev, my second question is on order inflow. So if I look at our order inflow and I compare it with the sector leader, there is some amount of sustainability in what the sector leader is achieving as order inflow every quarter. Now we've been such important player in this sector in the country because we are the second largest, and we are -- have been in the existence for so long. What is the reason that is inhibiting us from taking new orders? I'm sure we have a thick pipeline. But then why not some material number on the inflows? I hope you get my question, Sanjeev.

[Sanjeev Agarwal, executive]

Thank you so much. So I think I would like to reiterate. We choose our orders very carefully -- there is -- as I said, we have a robust risk management philosophy where we analyze all the tenders and then make a decision, which one we will go for. Having said that, you've seen that we already have a backlog of almost 2 years, in excess of 2 years with the shop -- with whatever we can produce on the shop, with whatever we can justify to our customers, we have it. And our present tender pipeline is in excess of 3 gigawatts, once again reiterating that the number that we committed on top line -- on the order book would happen. Prateek?

[Prateek Giri, analyst]

Understood. Understood, Sanjeev. Can I put this last one question, a small question, Sanjeev?

[Sanjeev Agarwal, executive]

Okay, go ahead.

[Prateek Giri, analyst]

So we are seeing some inflationary move in aluminum copper these days. So I was just wondering, do I understand we are very strict to our EBITDA margin guidance. But I was just wondering if it will impact us in, say, next 6, 7 months? Is there a pass-through in our tenders or orders, Sanjeev?

[Sanjeev Agarwal, executive]

Yes, a couple of orders we have a pass-through. A couple of orders which we are in the last stage of execution, we've already taken care of those. Yes. So I don't believe that this inflationary measure on the metals is going to hit us.

[Operator]

The next question is from the line of [ Rahil Thakkar ] from Anthem Infotech Private Limited.

[Unknown Analyst]

Am I audible?

[Operator]

No. You are sounding little distant. Please could you speak a little louder.

[Unknown Analyst]

First, I like to congratulate the management on the excellent performance this quarter, especially Inox Green.

[Sanjeev Agarwal, executive]

Sorry. We can't hear you. You have to be louder, please.

[Unknown Analyst]

Am I audible now?

[Sanjeev Agarwal, executive]

Yes, much better.

[Unknown Analyst]

Yes. So I just had one question with the management of Inox Green. So in the past, you have guided that a per megawatt realization is somewhere in the ballpark of INR 8 lakhs to INR 10 lakhs -- so -- and with a 5% increment per year in our contracts. So are there any changes in that? Or are we still on those numbers?

[S. K. Sudhana, executive]

No, the guidance which we have given in the past stands firm. So broadly INR 8 lakh to INR 10 lakh per megawatt is the revenue for wind. And for solar, as we've spoken in the last call as well, it's around INR 2 lakh per megawatt and on the margins front, it's 50% broadly for wind and for solar, it's around 20-odd percent.

[Operator]

The next follow-up question is from the line of Nitin Kaushik from AFIN Capital Private Limited.

[Unknown Analyst]

Sir, my question was regarding the drivers of realization, what drives realization in wind and turbine segment?

[S. K. Sudhana, executive]

So we said multiple times that so realization, basically, on an average is around INR 8 crores for turnkey contracts. Now turnkey contracts includes the equipment that we supply and the EPC services as well as the infrastructure services, which we provide. So that's the thumb rule. And across the industry, the prices continue to be stable at around these levels for the 3-megawatt turbines. And that is how the industry is working right now.

[Unknown Analyst]

I got it, sir. Also, sir, what would be your CapEx guidance for FY '26?

[S. K. Sudhana, executive]

Could you repeat your question, please?

[Unknown Analyst]

Sir, my question is, what would be your capital expenditure, CapEx guidance for FY '26?

[S. K. Sudhana, executive]

So for FY '26, our CapEx guidance is around INR 200-odd crores.

[Operator]

The next question is from the line of Madhu Dasari from MD Advisors.

[Unknown Analyst]

Devansh sir. Just a generic question. So is there a chance of Inox Wind entering into battery energy storage system in future? I mean nowadays, everyone is talking about the best, right? So I just wanted to [indiscernible].

[Sanjeev Agarwal, executive]

Basically, let me answer this. I think on the battery side, our group companies are already doing a lot of work on the battery side. They are pioneers in this business. And to that extent, I don't think we have any intention of getting into the battery or battery manufacturing. But yes, there's a subset of our business, wherever there is a battery as a added storage plant. Definitely, it is -- we're looking at those opportunity to bid. In fact, our -- another group company, INOX Clean as you would know, which is an IPP business is actively using the hybrid and the storage model to bid for the project. But per se, Inox Wind getting into battery will never be the case.

[Operator]

The next question is from the line of Ashik Soni from Family Office.

[Unknown Analyst]

The framework agreement you spoke about in your initial remarks, so will it revise the guidance upwards from FY '26 onwards?

[S. K. Sudhana, executive]

See. So let's first announce all those framework agreements that we are currently negotiating with our partners and probably we will come back to you later.

[Unknown Analyst]

I'm hoping it will be upward revision, right? Because I think I heard 1 gigawatt annually during the opening remarks.

[S. K. Sudhana, executive]

That's an obvious answer, yes.

[Operator]

That was the last question for today's conference. I would now like to hand the conference over to management for closing comments. Over to you, sir.

[S. K. Sudhana, executive]

Thank you. Thank you, everyone, for joining today's call on Inox Wind and Inox Green, and I hope you have a very good weekend. Thank you again. We'll see you in Q3.

[Operator]

On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.