INOX India designs and manufactures cryogenic equipment, LNG solutions, cryo-scientific systems, and beverage kegs, serving global industrial gas, aerospace, semiconductor, and scientific research end-markets. Its product range spans storage tanks, transport trailers, disposable cylinders, LNG fuel systems, marine tanks, and reusable kegs, with roughly 60% of revenue historically from exports. The company holds a 60-65% share of India's LNG product market and is one of only 2-3 global suppliers for complex cryo-scientific modules, evidenced by repeat orders from CERN and ITER. EBITDA margin came in at 23.5% in Q1 FY27, within the guided 21-24% band, reflecting strong pricing power and a product mix weighted toward mission-critical equipment. The order book as of June 30, 2026 stood at a record INR1,686 crore, of which over INR1,140 crore is export-related, providing multi-quarter revenue visibility and underpinning a high-quality, defensible niche.
The persistence of these economics rests on barriers that are unusually difficult to replicate. Customers require 30-40 approvals and certifications, and management estimates it would take 10-15 years for a new entrant to match its scale and track record. The beverage keg business has secured approvals from Heineken, AB InBev, and Molson Coors, representing over 40% of global beer volumes, while the cryo-scientific division has proven itself through complex orders from ITER and CERN, where only a handful of firms globally can qualify. The AS9100D aerospace certification now permits onboard flight systems, and the company's US private space customer has placed cumulative orders exceeding INR1,000 crore, indicating deep trust and switching costs. Additionally, PESO regulatory approvals restrict Chinese LNG tank imports, while the company's existing service network and custom design capability reinforce its domestic moat. These are not commodity products; they are engineered solutions where failure is not an option, making qualification cycles and installed base powerful economic shields.
The inflection point is the commissioning of the Kandla facility, expected to begin operations by December-end or mid-January FY27, enabling manufacturing of ultra-large tanks up to 9 meters in diameter, 60 meters long, and 500 tons weight, essential for LNG mega storage and large aerospace applications. Simultaneously, the company is pursuing several new growth platforms: a liquid nitrogen-based data center cooling prototype is expected in 6-8 months, with commercialization in 1-1.5 years; a water microfactory module will be built in the next 6-8 months; and semiconductor orders from projects like Dholera (around INR30 crore) are starting to flow. By 18-24 months out, which corresponds to late FY28 or early FY29, these initiatives should be contributing: Kandla will be fully ramped, aerospace orders worth INR400+ crore (including the Q1 FY27 inflow of INR532 crore, the highest ever quarterly) will be delivered by end FY28, the Cochin Shipyard marine LNG order (INR85 crore) will be in execution, and the Bahamas mini LNG terminal balance of about INR80 crore will be supplied in FY27. Revenue is guided to grow 18-20% in FY27, and with the order book and capacity expansion, that trajectory should extend into FY28 and FY29, with EBITDA margins maintained in the 21-24% range.
Management has consistently delivered on its commitments. In May-25, it guided for FY26 revenue growth and EBITDA margin in the 21-24% band; the 9M FY26 revenue grew 20% with adjusted EBITDA margin around 24.3%, meeting guidance. The May-26 call set FY27 revenue growth at 18-20% and order inflow of INR450-500 crore per quarter; Q1 FY27 actual order inflow was INR532 crore, exceeding that range, and the order book reached INR1,686 crore, the highest ever. The Kandla timeline of 9-10 months has been reaffirmed, and the company has not cut or diluted any prior targets. Capital allocation is prudent, with total funds of INR331 crore as of June 30, 2026, and no debt concerns. The guidance monitor rates management consistency as 'consistent', and while there have been no upgrades, the company is delivering on what it promised, including a hint of possibly raising quarterly order intake guidance due to lumpy aerospace wins.
The earnings path to 18-24 months is quantified by the order book conversion and capacity ramp: with ~INR1,200 crore of the existing order book expected to execute in FY27 alone, revenue growth of 18-20% should continue into FY28-29, driving EBITDA to grow at a similar pace. The key falsifier is execution risk, particularly on Kandla ramp-up and logistics disruptions that caused a Q1 FY27 revenue shortfall of INR32-35 crore when equipment was ready but not dispatched due to freight rate spikes and ship availability. Another watchpoint is dependence on a single US aerospace customer for over INR400 crore of the order book, though the relationship has proven sticky. The tension between strong order intake and a miss on Q1 revenue is operational, not structural, as logistics are customer-scoped and temporary. If Kandla comes online on schedule and aerospace deliveries proceed on the 1-2 year timeline, the business should emerge as a higher-capacity, diversified compounder with EBITDA margins above 22% and a broader product portfolio across LNG, aerospace, and new verticals.
companyname: INOX India Limited ticker: INOXINDIA sector: Cryogenic equipment and engineering INOX India builds vacuum-insulated cryogenic equipment: the tanks, trailers, transfer lines and complete gas systems that store and move liquefied gases at temperatures from -150°C down to liquid hydrogen at -253°C. Founded in 1976 and listed on Indian exchanges in December 2023, the company operates four manufacturing facilities in Gujarat (Kalol, Kandla SEZ, Silvassa, Savli), a windmill unit in Kutch...
Read the full report →capex, regulatory approval, new product segment, order book surge
FY27 revenue growth guided at 18-20% driven by order backlog, expanding global customer base, and capacity augmentation at Kandla
Guidance no_dataconsistent
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