Inox India Q2 FY27 Earnings Call: Order Book Hits Record Rs. 2,268 Cr, US Space Order Anchors FY28 (INOXINDIA)

Inox India Ltd held its Q2 FY27 earnings call on November 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record H1, but Q2 margin compresses on freight and pricing

• Q2 FY 2026-2027 total income of Rs.467 Cr — up 26.6% YoY, driven by strong execution across key segments; H1 FY 2026-2027 total income of Rs.849 Cr was a record-high half-year.
• Q2 EBITDA of Rs.100 Cr (+10.8% YoY) — margin at 21.3%; PAT of Rs.66 Cr (+7.8% YoY) with PAT margin at 14.2%. PAT growth lagged revenue growth.
• H1 FY 2026-2027 EBITDA of Rs.189 Cr — highest-ever half-yearly EBITDA at a 22.3% margin; H1 PAT of Rs.127 Cr at a 14.19% margin.
• Analyst-flagged Q2 margin (ex-other income) of ~19.5% — down ~230 bps YoY vs Q2 FY 2025-2026; CEO Deepak Acharya attributed the dip to a mix of rate and strategic pricing, plus geopolitical uncertainties and freight costs that ramped up in Q2 FY 2026-2027, calling it not structural.
• Balance sheet strength — debt-free with Rs.384 Cr total fund availability as of Q2 FY 2026-2027, providing headroom for capacity expansion and project execution.

Record Rs.2,268 Cr backlog on a lumpy Rs.1,000 Cr+ Q2 inflow

• Order backlog crossed Rs.2,200 Cr in Q2 FY 2026-2027 — highest in company history (Rs.2,268 Cr as of September 30, 2026), with 72% from exports; Q2 inflow alone exceeded Rs.1,000 Cr.
• Management cautioned the Q2 inflow was bulky and lumpy — CEO said it may not repeat at the same pace, though the company hopes future inflows could exceed this level (period unspecified).
• ~50% of the Rs.2,200 Cr order book is to 2-3 major customers — on ex-works or FAS delivery terms; the balance is covered under back-to-back agreements. ~60% of business is to the export market as of Q2 FY 2026-2027.
• Backlog mix: 30-40% standard equipment, ~60-70% custom-built — per management, aggressive pricing applies only to standard equipment competing with global players and is "not a regular feature."
• Segment inflows in Q2 FY 2026-2027 — ~Rs.60 Cr industrial gas (domestic), 40+ LNG semi-trailers plus ~Rs.14 Cr LNG systems, ~Rs.35 Cr for LIGO-India cryogenic equipment, ~Rs.12 Cr European TCWS piping prefabrication order, and 4 LNG railway orders following Indian Railways' launch of LNG trains (2 already dispatched).
• Beverage kegs momentum — Q2 FY 2026-2027 keg sales grew ~446% YoY and keg order book grew ~155% YoY; entered a three-year global supply agreement with a leading global brewing company whose stated 2027 requirement exceeds ~4 lakh kegs across 22 countries (shared among multiple vendors, not exclusive to INOX).

Rs.1,100 Cr US space order anchors backlog; execution skews to FY28

• US space order worth more than Rs.1,000 Cr — from a single major US aerospace customer: 16 subcoolers and 16 large 1,500 cubic meter tanks (up to ~450 tons, for oxygen and methane storage); space-sector customers comprise ~Rs.1,100 Cr of the backlog.
• Execution timeline — 15-20% of the order value expected to be completed in FY 2026-2027 with the balance in FY 2027-2028; management may try to finish by March 2028, though ~10% could slip into FY 2028-2029. In a separate Q&A response, management guided 10-15% completion by end of March FY27 and at least 80-90% executed in FY 2027-2028.
• Margins "relatively better" than standard products — CEO said the first-of-its-kind equipment for heavy payload satellite launches carries better margins, and freight sits in the customer's scope (US order on export basis; Bahamas order on FAS terms), so no freight cost challenge on these bigger projects.
• Subcoolers are 60-70% of the space order backlog — 16 subcooler orders received (12 for LOX, 4 for methane); initial design approvals received from the customer and a third-party agency; final design approved per TEMA requirements.
• Follow-on pipeline — the customer is developing one launch pad now with 3-4 similar launch pads planned; CEO indicated substantially good orders are likely over the next 3-5 years, conditional on quality and on-time delivery. CEO also said he has heard the customer wants to launch at least 1,000 such rockets every year (period unspecified), i.e., ~3 rockets/day.
• ISRO LVM3 bid pending — INOX is qualified on technical competency (not yet formally declared); CEO said ISRO's evaluation "is not so fast on track," and assessed that other players have capex money but lack cryogenics experience. Bid also submitted for ISRO's semi-cryo engine test facility; ISRO's third launch pad tender (publicly presented at ~Rs.3,850 Cr per an ISRO press release issued ~1.5-2 years ago, with pricing changes possibly lifting it 10-15%) is expected within H2 FY 2026-2027.
• Private Indian space pipeline — INOX works with all top 5 private space startups and has delivered to almost 4; these players' own projections aggregate to ~Rs.2,000-3,000 Cr over the next 3-5 years.

Semiconductors, data centers, water and science projects build optionality

• Semiconductor TAM (third-party context) — management cited that the government has approved ~Rs.1.6 lakh crore of semiconductor projects with 12 companies having started work, and almost 70% of the activity concentrated in Gujarat (Dholera and Sanand), where INOX is in close proximity.
• Dholera entry via Tata Electronics — initial piping order is small and strategic; the Dholera fab's first phase involves ~500-600 km of piping. Bids submitted for two larger projects (ultra-high purity and conventional bulk gases), with results expected in 4-6 weeks (Q3 FY 2026-2027) — management expressed hope, not commitment.
• LNG-powered data centers — CEO said data centers require 100% uninterrupted power supply and LNG-fueled generation with cryogenic storage is an effective solution; such projects can range from ~20 MW to 200-300 MW. No order pipeline value or timeline quantified. A data center cooling prototype design is complete, with final conceptualization taking another 6-8 months (during FY 2027-2028).
• Wayout water microfactory — first 20-feet containerized unit under manufacturing at Savli, producing ~20,000 liters of potable water per day (sufficient for ~10,000 people); significant inquiries from Africa, Mexico and the Middle East.
• LIGO-India (Hingoli) scope — L&T recently received the ~Rs.4,000 Cr order (disclosed on its Q2 FY 2026-2027 call); INOX's scope covers cryogenic equipment, some cryo-pumps and installations; the site-work contractor is undecided and INOX is "graded" for that scope. CEO noted 2-3 such equipments can detect earthquakes worldwide.
• Other updates — MRI cryo machine first prototype under trials with an order for five machines "on the verge" (period unspecified); submarine AIP oxygen tank delivered to L&T and under final testing; Andaman & Nicobar mini-LNG terminal bid technically qualified with commercial clarity expected in 2-3 weeks (Q3 FY 2026-2027).

Kandla ramp and automation address the skilled-labour bottleneck

• Kandla facility on track — land recently acquired near the port, with construction expected to finish by March FY 2026-2027 and full-fledged production availability in FY 2027-2028; Savli retains another 50% expansion space after its expansion two years prior.
• Skilled manpower is the key challenge — the company's training center trains ~40-50 welders and fitters per month, and a skill center near the factory will supply at least 30-40 welders per month (period unspecified); CEO cited that the semiconductor industry in Singapore requires around 5,000 welders.
• Automation at 60-70% of welding/fabrication — the company is pursuing higher automation plus digital, AI and IoT tools to reduce skill dependence; inaugurated the "Semi-Orbit" orbital welding skill excellence center at ITM and Baroda University.
• Margin guidance maintained — management said margins will remain within its expected range going forward (period unspecified) and does not expect a severe impact from freight/geopolitical headwinds; on achieving the guided 21-24% range (period unspecified), CEO said "hopefully, yes" while cautioning present conditions are difficult to predict.
• Execution risks on the US space order — very large coolers requiring imported materials, thick forgings, orbital welding and strict cleanliness; mitigation via detailed planning, reputed material suppliers and trained welding/testing personnel.

18-20% growth floor; revenue visibility into FY28

• Management guided to minimum 18-20% business growth going forward (period unspecified; response to a 3-4 year outlook query), with "much faster" growth possible if bigger opportunities materialize.
• Space order revenue visibility — ~20% of US space orders to be executed in H2 FY27 and the remaining 70-80% in FY28; CEO affirmed margins should trend upwards in H2 FY27 and FY28 versus H1 FY27/FY26 EBITDA margins, stating "margins will improve because of this order."
• New vertical growth engines — space, data centers, semiconductors, water treatment and brewery; confidence anchored in first-time project execution track record (ITER, launch pad) and engineering/manufacturing capabilities.
• Pending tenders — ISRO semi-cryo engine test facility outcome awaited; third launch pad tender expected within H2 FY 2026-2027 (timing not in the company's hands); bids submitted for Indonesia and other projects, on which management is "very positive."
• Headwinds — ongoing West Asia conflict complicating global logistics and supply chains; product mix, geopolitical uncertainties and increased logistics costs remain ongoing margin pressures despite management's non-structural framing.