Inox India Focuses On Five-Year Cycles For Growth

Inox India Ltd. is currently well-positioned for continued success across its segments, which should likely align with the cryogenic equipment manufacturer's expected revenue growth rate of 18–20% for the current financial year.

"Our approach to growth is based on five-year cycles rather than focusing on quarterly or annual growth as we are in the capital goods business," promoter Siddharth Jain told NDTV Profit in a conversation on Monday.

A large portion of Inox's current orders is driven by non-standard engineering, procurement and construction projects. These are high-value and take 12–18 months to execute, the non-executive director explained.

"So, growth isn't always linear. This is why you may not see consistent 15–18% or 20% growth every year. But over a five-year period, we are confident that we will achieve that. Each of our verticals will contribute to this growth," he added.

Expanding on the beverage containers business, he highlighted the recent FDA approvals from global brewing giants AB InBev and Heineken.

"Over the past year, it took considerable time to bring European vendors to India.... However, once they visited, they were highly impressed with the quality standards," Jain said, exuding confidence of securing orders from them soon.

On this segment's contribution to the revenue projection, Jain highlighted that it will likely be in single digits as all the business verticals were performing strongly. Giving insights into the group's segment-wise performance, Jain said the highest margin come from its cryo-scientific division due to its complexity and in-house capabilities.

"Next in line for margins is our LNG division, especially with complex systems like mini LNG terminals being executed…. After that, industrial gas and beverage containers have similar margins.

"It's not about margin expansion. We've committed to maintaining margin in the early 20% range," he said, acknowledging that in the capital goods industry, extremely high margin was uncommon.

Inox is focused on capturing a larger share of the global market, rather than focusing on significantly increasing margin, according to Jain.

Asked about reliance on the exports segment for order inflows, Jain expressed optimism about sustaining this momentum in FY26 despite the geopolitical challenges.

"The primary reason we went for the IPO was our belief that the global market for cryogenic equipment is far larger than the opportunity available in India alone. While India is growing, our aspirations are truly global," he said.

"We achieved fantastic growth last year, particularly driven by strong orders for mini LNG terminals, and we hope to continue this momentum."