Inox Renewable Solutions Annual Reports, Balance Sheet and Financials

INOX Renewable Solutions Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
ASSETS
Non-Current Assets
Property, plant and equipment	90,479.07	43,283.98
Capital Work-in-progress	23,127.74	25,186.99
Intangible assets	17,708.46	21,250.15
Other non-current financial assets	274.64	264.44
Income tax assets (net)	1,793.73	711.82
Other non-current assets	1,267.41	1,411.11
Current Assets
Inventories	36,851.71	34,558.24
Trade Receivable	18,324.68	15,493.52
Cash and cash equivalents	169.30	19.30
Bank balances other than above	1,940.43	1.45
Loans	5,689.63	941.46
Other Current Financial Assets	4.72	-
Income tax assets (net)	0.03	0.03
Other current assets	13,009.81	10,156.09
TOTAL ASSETS	2,10,641,36	1,53,278.58
EQUITY AND LIABILITES
Equity share capital	16,194.13	13,426.15
Other equity	77,305.60	5,162.28
Non-Current Liabilities
Borrowings	-	17,166.20
Provisions	62..86	43.28
Other non-current liabilities	1,159.01	1,259.44
Current Liabilities
Borrowings	73,928.21	77,436.55
Trade Payable:
total outstanding dues of micro enterprises and small enterprises	55.16	37.70
total outstanding dues of creditors other than micro enterprises and small enterprises	22,232.71	24,233.35
Other current financial liabilities	7,911.63	5,508.46
Other Current Liabilities	11,790.15	9,003.65
Provisions	1.90	1.52
TOTAL EQUITY AND LIABILITES	2,10,641.36	1,53,278.58

INOX Renewable Solutions Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Revenue from Operation	21,797.97	19,874.37
Other Income	8,194.57	1,679.54
Total Revenue	29,992.54	21,553.91
EPC, O&M, Common infrastructure facility and site development expenses	7,428.40	9,155.46
Changes in inventories of finished goods, WIP	1,588.77	2,839.57
Employee Benefits Expenses	806.60	646.14
Finance Costs	8,313.30	10,271.04
Depreciation and Amortization Expenses	7,646.83	1,552.69
Other Expenses	2,389.85	441.89
Total Expenses	28,173.75	24,906.79
Profit/(loss) Before Tax and Exceptional items	1,818.79	(3,352.88)
Add: Exceptional items	-	12,471.26
Profit before Tax	1,818.79	9,118.39
Current tax	-	-
Deferred Tax	-	-
Profit / (Loss) for the period	1,818.79	9,118.39
Other Comprehensive Income
Items that will not be reclassified to profit or 1oss:
Remeasurements of the defined benefit plans	(2.61)	20.45
Total Comprehensive Income for the Year	1,818.18	9,138.84
Earnings per Equity Share:
Basic and diluted	1.21	6.79

INOX Renewable Solutions Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activites
Profit/(loss) for the year after tax	1,818.79	9,118.39
Adjustments for:
Finance costs	8,313.30	10,271.04
Interest income	(927.94)	(1,679.54)
Allowance for expected credit losses	1,213.70	9,078.89
Gain on Redemption of mutual fund	(29.28)	-
Income on account of transmission capacity	-	(21,250.15)
Depreciation and amortization expense	7,646.83	1,552.69
Operating Profit before Working Capital Charges	18,035.40	7,091.32
Movements in working capital:
(increase)/Decrease in Trade receivables	(4,044.87)	478.40
(increase)/Decrease in Inventories	(2,293.47)	5,945.10
(lncrease)/Decrease in Other financial assets	(10.20)	927.44
(lncrease)/Decrease in Other Current assets	(2,845.58)	2,305.65
(lncrease)/Decrease in Other Non Current assets	143.68	228.45
lncrease/(Decrease) in Trade payables	(1,985.22)	477.20
lncrease/(Decrease) in Other financial liabilities	(62.51)	(541.66)
lncrease/(Decrease) in Other Current liabilities	2,777.29	(906.38)
lncrease/(Decrease) in Other Non Current liabilities	(100.44)	(100.43)
lncrease/(Decrease) in Provisions	22.91	4.60
Cash generated from operations	9,636.99	15,909.68
Income taxes paid	(1,081.91)	(372.96)
Net Cash Flow from Operating Activates	8,555.08	15,536.72
Cash Flow From Investing Activities
Purchase of Investments	(12.00)	-
Purchase of property, plant and equipment (including changes in capital WIP, capital creditors/advances)	(49,234.92)	(45,341.51)
Interest received	1,164.79	2,247.18
Purchase of Mutual fund	(12,000.00)	-
Sale of Mutual Fund	12,028.68	-
Inter corporate deposits Received back/(Given)	(4,984.70)	6,962.61
Movement in bank deposits	(1,938.98)	7,769.27
Net Cash Flow from Investing Activities	(54,977.13)	(28,362.45)
Cash Flow From Financing Activities
Share Capital issued during the year	1,322.04	-
Security Premium on issuing share capital	33,688.96	-
Share Issue Expenses	(800.84)	-
Proceeds/(repayment) from borrowings	(12,461.71)	(29,465.63)
Proceeds from/(repayment of) short term borrowings (net)	30,562.26	52,433.94
Inter-corporate deposit received/(repayments)	88.60	10.89
Finance Costs	(5,827.26)	(10,178.78)
Net Cash Flow from Financing Activities	46,572.05	12,800.43
Net Increase In Cash And Cash Equivalents	150.00	(25.30)
Cash & Cash Equivalents At The Beginning Of The Year	19.30	44.60
Cash & Cash Equivalents At The End Of The Year	169.30	19.30

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

In FY 2025, the company reported a net operating cash inflow of ₹8,555.08 lakhs, which is lower than the ₹15,536.72 lakhs generated in FY 2024. The main driver for FY 2025 was the sharp increase in depreciation and amortization expenses and the allowance for expected credit losses, which boosted operating profit before working capital adjustments. However, movements in working capital absorbed significant cash – particularly the increase in trade receivables, inventories, and other current assets, coupled with lower trade payables. Although income tax payments increased year-on-year, the company still managed to generate a positive cash flow, reflecting that its core operations continue to be cash-generating, albeit at a reduced efficiency compared to the previous year.

Cash Flow from Investing Activities

The company recorded a substantial cash outflow of ₹54,977.13 lakhs in FY 2025, compared to an outflow of ₹28,362.45 lakhs in FY 2024. The largest component was the heavy investment in property, plant, and equipment (₹49,234.92 lakhs), indicating an aggressive capital expenditure program, likely aimed at capacity expansion or upgrading renewable energy infrastructure. Additionally, fresh investment in mutual funds and inter-corporate deposits added to the outflows. On the positive side, redemption of mutual funds and interest income provided some inflow, but this was not enough to offset the large capex. Overall, this segment highlights the company’s strategic focus on long-term asset building, which, while straining cash flows in the short run, may support growth in future revenue.

Cash Flow from Financing Activities

Financing activities provided a strong inflow of ₹46,572.05 lakhs in FY 2025, significantly higher than ₹12,800.43 lakhs in FY 2024. The inflow was mainly supported by the fresh issue of equity shares and the related securities premium, amounting to a combined ₹35,010.99 lakhs, which bolstered the capital base. Additionally, the company drew substantial short-term borrowings (net inflow of ₹30,562.26 lakhs), which offset the repayments of long-term borrowings. Finance costs continued to be a major outflow, but at a reduced level compared to FY 2024. This shows that the company leaned heavily on equity issuance and short-term debt to fund its aggressive investment cycle, reflecting a strategy of leveraging both capital markets and borrowings to meet its funding needs.

Net Cash Flow and Cash Position

After accounting for all activities, the company ended FY 2025 with a modest net increase in cash of ₹150 lakhs, compared to a small outflow of ₹25.30 lakhs in FY 2024. The closing cash balance rose to ₹169.30 lakhs, which, although improved, remains very small relative to the scale of operations and financing activities. This suggests that while the company managed to balance its funding requirements through a mix of equity and debt, its cash reserves are still thin, leaving limited liquidity cushion.

Standalone Financial Ratios of INOX Renewable Solutions Limited

Particulars	2025	2024
Current Ratio	0.67	0.54
Debt to Equity	0.77	4.75
Debt Service Coverage Ratio	0.53	0.19
Return on equity	4.26%	64.43%
Inventory Turnover Ratio	0.26	0.33
Trade Receivable Turnover Ratio	1.29	0.98
Trade Payable Turnover Ratio	0.39	0.50
Net Capital Turnover Ratio	-57.61%	-37.01%
Net Profit Ratio	11.34%	49.05%
Return on capital employed	6.32%	6.55%

Summary of the financial ratios of INOX Renewable Solutions Limited for the year 2025 and 2024:

Current Ratio

The current ratio improved slightly from 0.54 in FY 2024 to 0.67 in FY 2025, but it still remains well below the benchmark of 1, indicating that the company’s short-term liabilities significantly outweigh its short-term assets. This suggests liquidity stress, meaning the company may struggle to meet its immediate obligations without relying on external funding or rolling over short-term debt. The marginal improvement shows some progress, but the overall liquidity position continues to be weak.

Debt-to-Equity Ratio

There was a sharp decline in the debt-to-equity ratio from 4.75 in FY 2024 to 0.77 in FY 2025, reflecting a major reduction in leverage. This is primarily due to the fresh equity infusion during the year, which strengthened the capital base, thereby diluting the relative weight of debt. A ratio of 0.77 indicates that the company is now in a much more balanced capital structure, reducing financial risk and reliance on borrowings.

Debt Service Coverage Ratio (DSCR)

The DSCR improved from 0.19 in FY 2024 to 0.53 in FY 2025, signaling better capacity to service debt obligations from operating earnings. However, the ratio is still below 1, which means cash generated from operations is not yet sufficient to fully cover interest and repayment commitments. While the improvement is a positive sign, the company still faces challenges in comfortably meeting debt servicing requirements.

Return on Equity (ROE)

ROE fell drastically from a very high 64.43% in FY 2024 to 4.26% in FY 2025. The earlier figure was inflated due to a smaller equity base, whereas the sharp decline in FY 2025 reflects dilution from fresh equity issuance along with lower profitability. Although positive, the new ROE level suggests that shareholders are now getting a much lower return on their invested capital compared to the previous year.

Inventory Turnover Ratio

The inventory turnover ratio declined from 0.33 in FY 2024 to 0.26 in FY 2025, indicating that the company is taking longer to convert inventory into sales. This points to slower movement of stock, which may tie up working capital and reflect inefficiencies in operations or weaker demand.

Trade Receivable Turnover Ratio

The trade receivable turnover ratio improved from 0.98 in FY 2024 to 1.29 in FY 2025, showing better collection efficiency. This means the company is now able to recover dues from customers faster than before, which supports working capital management. Although still relatively low compared to industry standards, the upward trend is encouraging.

Trade Payable Turnover Ratio

This ratio weakened from 0.50 in FY 2024 to 0.39 in FY 2025, suggesting that the company is taking longer to pay its suppliers. While delayed payments may provide temporary liquidity support, it could strain supplier relationships and indicate reliance on extended credit.

Net Capital Turnover Ratio

The net capital turnover ratio is negative in both years, declining further from -37.01% in FY 2024 to -57.61% in FY 2025. A negative figure highlights inefficiency in the use of working capital, with liabilities exceeding current assets. The worsening trend shows that the company is struggling to manage its working capital effectively, which could affect liquidity and overall efficiency.

Net Profit Ratio

The net profit ratio fell significantly from 49.05% in FY 2024 to 11.34% in FY 2025. The previous year’s figure was unusually high due to one-off income items, while FY 2025 reflects normalized profitability. Although still positive, the drop indicates margin pressure and higher costs relative to revenues, which need to be controlled for sustainable growth.

Return on Capital Employed (ROCE)

ROCE remained stable, moving slightly from 6.55% in FY 2024 to 6.32% in FY 2025. This suggests that despite changes in equity and profitability, the efficiency of capital employed in generating returns has been largely unchanged. However, the level is modest, implying that capital is not being used as effectively as it could be.