INOX Air Products Overview
INOX Air Products is India's largest integrated industrial, medical, electronic and specialty gases company by revenue. According to the CRISIL industry report cited in its September 2026 DRHP, it held a 22.4% share of the Indian market in FY2026. A 50:50 joint venture since 1999 between the Jain family's INOX Group and US major Air Products, the company makes oxygen, nitrogen, argon, hydrogen, carbon dioxide and a widening range of ultra-high-purity (UHP) and specialty gases. It operates from 57 locations across 15 states and one union territory and runs India's largest cryogenic tanker fleet, with 739 vehicles. In FY2026 it earned ₹3,033.9 crore of operating revenue at a reported EBITDA margin above 51% of total income. Its growth strategy rests on long-term, take-or-pay on-site contracts with steelmakers such as Tata Steel, SAIL and AM/NS. It is also making an early-mover push into electronic-grade gases for India's emerging semiconductor, display and solar-cell fabs: UHP nitrogen, oxygen, hydrogen and nitrous oxide, plus a ₹500 crore Electronic Specialty Gas Hub at Dholera, Gujarat.
What the company does. INOX Air Products produces atmospheric gases (oxygen, nitrogen, argon) by cryogenic air separation, and makes or sources process and specialty gases: hydrogen, carbon dioxide, carbon monoxide, acetylene, helium, nitrous oxide, rare gases, and electronic gases such as silane and ammonia. It delivers them in three ways. On-site plants are built at or next to a customer's facility. Merchant liquid is carried in bulk by cryogenic tanker to customer storage tanks. Packaged gases go out in cylinders and specialty-gas packages. The company also designs, installs and maintains gas-supply systems, and supplies equipment and services through INOX Group and Air Products technology.
The company's own description (DRHP, 2026). The company describes itself as an integrated industrial, medical, electronic and specialty gases business that operates across the industrial-gases value chain through three verticals: On-site, Merchant, and Packaged and Specialty Gases. It says it has expanded into emerging applications, including semiconductor manufacturing, solar-cell manufacturing and advanced electronics. Its stated strengths are a contracted revenue base, cost-efficiency initiatives, long-standing customer relationships backed by long-term contracts, and the lineage of the INOX and Air Products groups.
Business model and revenue model. Almost all revenue comes from selling products (gases), with smaller lease-rental and service income. The DRHP attributes FY2026 growth to higher sales of products and services, lease rental income and other operating revenue. The revenue model differs by channel:
Merchant (bulk liquid): FY2026 share of revenue (%): 58.6; Contract form: Mix of supply contracts and purchase orders; Economics: Highest margin; priced per tonne delivered; exposed to power costs and regional supply-demand
On-site: FY2026 share of revenue (%): 28.7; Contract form: 15–20-year take-or-pay agreements; Economics: Annuity-like; fixed facility charges plus variable charges with power pass-through; surplus liquid sold into merchant market
Packaged and specialty: FY2026 share of revenue (%): 12.8; Contract form: Purchase orders; Economics: Cylinder, high-purity and specialty-gas sales; growing electronic-grade component
Contracted revenue not yet recognised was about ₹3,619 crore at the time of the DRHP.
Value-chain position. INOXAP sits at the production-and-distribution stage of the gases chain. Its inputs are electricity (about 22% of revenue in FY2026), capital equipment and air. It sells to end-users directly; it does not go through distributors. Equipment links run upstream to affiliates: INOX India (INOXCVA) supplies cryogenic tanks, vessels and trailers, and Air Products contributes air-separation and purification technology.
Customer types and end-markets. The company serves more than 3,000 customers (DRHP), up from the more than 1,800 cited in 2025 company releases. Steel, healthcare and pharmaceuticals, and automotive together make up about 57% of revenue. Other end-markets are glass (where the company holds a 40.1% share), chemicals, petrochemicals and refining, textiles, food and beverage, metal fabrication, energy, solar PV, electronics and semiconductors, and battery materials. The top five customers were 25.9% of FY2026 revenue (21.5% in FY2025), and one customer accounted for about 12%.
Independent characterisation. INOXAP is a high-margin, capital-intensive regional gases franchise. Its economics resemble those of global majors: on-site steel contracts provide a stable base, and merchant liquid from the same ASUs earns high incremental returns. It is the clear leader in Indian merchant gases (31.0% share) and its logistics are the densest in the country. Its semiconductor exposure is still nascent and small in revenue. Strategically, though, it matters as an option value: the company has publicly said that India makes only about 5 of the roughly 50 gases a fab needs, and it aims to be the domestic anchor supplier of bulk UHP gases (N2, O2, Ar, H2) and selected electronic specialty gases as India's fabs and OSAT plants ramp up.
Strategy
Management's stated themes centre on four ideas: India's largest gases company, building powerful assets, self-reliance (Atmanirbhar Bharat) in critical gases, and serving the semiconductor, solar and electronics ecosystem. They translate into five strategic pillars.
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On-site expansion with anchor steel customers. About ₹1,300 crore for Tata Steel Meramandali (2 × 1,800 TPD), plus Bokaro (2,150 TPD), Hazira (1,000 TPD) and Ludhiana (280 TPD). These turn capex into 15–20-year annuities and also produce merchant liquid surplus.
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Electronic and specialty gases. The Dholera Electronic Specialty Gas Hub (₹500 crore, announced October 2025) will produce UHP N2, O2, Ar and H2 and act as a fulfilment centre. It is backed by gas purification capacity, import-linked supply chains for molecules not made in India, and advanced logistics and packaging. Earlier steps were the first 6N N2O plant in India (Manali) and the first 6N LOX plant (Hosur). Siddharth Jain has said publicly that the company is investing ahead of contracts.
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Solar PV manufacturing. Multi-year UHP nitrogen and oxygen contracts with Grew Energy (3 GW), ReNew (Dholera TOPCon) and INA Solar (4.5 GW, 15 years by pipeline).
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Decarbonisation and new energy. Green hydrogen at Asahi India Glass and Chittorgarh (190 t/yr), LNG-powered cryogenic tankers, and nitrogen for battery-material makers (TACC).
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Logistics and network density. India's largest tanker fleet (739), 1,679 customer tanks and new specialty warehouses (Tirunelveli).
The ₹3,000 crore capex plan announced in May 2023 for completion by 2025 has largely been executed, and a further pipeline of about 5,200 TPD is under construction. The company has not issued medium-term revenue or margin guidance. The IPO is purely an offer for sale for listing benefits.
Products & Services
On-site
Merchant
Packaged and Specialty Gases
Product Portfolio
| Offering | Description / specification | Target customers | Flagship examples |
|---|---|---|---|
Large tonnage ASUs | Cryogenic air separation, 280–2,150 TPD per train; gaseous O2/N2/Ar via pipeline plus liquid co-product | Integrated and EAF steel, metals | SAIL Bokaro 2,150 TPD (2025); AM/NS Hazira 1,000 TPD (2025); Tata Steel Meramandali 2 × 1,800 TPD (under construction); Tata Steel Ludhiana 280 TPD (2026) |
UHP on-site ASUs for electronics and PV | 5N gaseous nitrogen (e.g. 7,000 Nm³/h) and 6N gaseous oxygen (e.g. 250 Nm³/h) | Solar-cell, semiconductor, display fabs | Grew Energy, Narmadapuram (India's first integrated ASU dedicated to solar-cell manufacturing); ReNew, Dholera |
Pipeline UHP nitrogen | Dedicated pipeline from INOXAP's existing Narmadapuram capacity, 2,400 Nm³/h, 15 years | Solar-cell makers | INA Solar 4.5 GW (2026) |
Nitrogen generation plants | On-site nitrogen for inerting and blanketing | Battery materials, chemicals | TACC graphite anode plant (2026) |
Green hydrogen | Solar-powered electrolysis; 190 t/yr project announced for Chittorgarh | Glass, float-glass annealing, specialty chemicals | Asahi India Glass, Soniyana (commissioned April 2025) |
| Offering | Description | Target customers |
|---|---|---|
Liquid oxygen (industrial and medical) | Cryogenic bulk supply; medical-grade LOX for hospitals | Hospitals, steel, glass, chemicals, aquaculture |
Liquid nitrogen (including 5N UHP) | Inerting, cooling, food freezing; UHP grade for electronics | Pharma, food, electronics, solar |
Liquid argon | Shielding gas, metallurgy, PV ingot growth | Steel, fabrication, solar |
Liquid carbon dioxide | Beverage, welding, food | F&B, fabrication |
Customer tank installations | 1,679 installed customer tanks; telemetry-based replenishment | Merchant customers |
Logistics | 739 cryogenic tankers (India's largest fleet), 39 million km driven in a year; first LNG-powered cryogenic tanker (December 2025) | All merchant customers |
| Offering | Description / specification | Target customers |
|---|---|---|
Industrial cylinder gases | O2, N2, Ar, CO2, acetylene, mixtures | Fabrication, workshops, labs |
Medical gases | Medical oxygen, nitrous oxide, medical mixtures | Hospitals, healthcare |
Helium | Imported and packaged helium | MRI, leak detection, electronics |
UHP electronic-grade nitrous oxide | 6N (99.9999%), 1,700 TPA, Manali, Chennai; India's first (January 2025) | Semiconductor CVD, display and solar PECVD |
UHP liquid oxygen | 6N grade, 17 TPD (500 Nm³/h), Hosur | Semiconductor and PV fabs |
Electronic specialty gases | Silane, ammonia and other ESG molecules; portfolio grouped by silicon semiconductor, compound semiconductor, PV and multipurpose | Fabs, OSAT, solar cells |
Hydrogen (industrial and electronic grade) | Packaged and bulk hydrogen; UHP hydrogen planned at Dholera | Glass, electronics, fabs |
Total Gas Management (TGM) | Full-lifecycle management of specialty and electronic gases from production and transport to distribution and point of use | Semiconductor fabs |
Specialty-gas warehousing | PESO-licensed package warehouse, Tirunelveli (2026); Dholera Hub as production and fulfilment centre | Southern and western electronics clusters |
Financial Narrative
All figures are in ₹ crore, restated consolidated (DRHP, FY2024–FY2026), unless stated otherwise. Earlier years come from rating-agency rationales and statutory filings. Margins labelled "on total income" follow the DRHP convention.
6.1 Income statement
Gross profit is not reported as a line item; power, the dominant variable cost, was about 22% of revenue in FY2026. EPS is basic and diluted alike, with no dilutive instruments. Revenue CAGR from FY2024 to FY2026 was 8.2%. Over FY2020–FY2026 (₹1,558 crore to ₹3,033.9 crore) it was 11.7%.
Commentary. FY2024 was the step-up year: revenue grew 18.2% as new capacity came on line and merchant pricing stayed firm. FY2025 and FY2026 slowed to high single digits as merchant volumes normalised and large on-site projects, chiefly the Tata Steel Meramandali units, were still in construction. Even so, operating profitability improved: EBITDA excluding other income rose from 44.3% to 48.4% of revenue, helped by power-efficiency measures, logistics density and the start-up of high-load-factor on-site plants at Bokaro and Hazira. Reported PAT growth slowed to 3.7% in FY2026. Depreciation rose 31% to ₹346 crore as new ASUs were capitalised, and other income fell by about ₹80 crore. FY2026 profit also includes about ₹47 crore of one-off share of profit from the Bellary Oxygen JV, without which underlying pre-tax growth was roughly 9%.
6.2 Long-run profitability
FY2020–FY2023 profits are from statutory filings. FY2022 was lifted by pandemic-era medical oxygen demand and the Bellary asset sale; FY2023 normalised. Operating revenue was ₹1,391 crore in FY2019 and ₹1,558 crore in FY2020 (CRISIL). The FY2024 growth rate of 18.2% implies FY2023 operating revenue of about ₹2,191 crore. PAT compounded at 12.0% a year from FY2020 to FY2026.
6.3 Balance sheet
At 31 March 2026 the company held about ₹2,200 crore of cash and treasury investments, giving net cash of about ₹850 crore on the company's definition. Capital work-in-progress was ₹1,415 crore and net asset value per share ₹140.41. The short- and long-term split of debt is not published outside the DRHP. Borrowings are mainly long-term project loans for on-site ASUs. Debt rose sharply in FY2024 as the Tata Steel, Bokaro and Hazira projects were funded, and new loans of about ₹1,500 crore are expected to fund the current pipeline. Goodwill and intangibles are immaterial; the business has grown organically. Working capital is light, given monthly billing and the take-or-pay contract structure.
6.4 Cash flow
Cumulative free cash flow over FY2024–FY2026 was about –₹364 crore. The company is in a heavy build phase, with capex of 36–45% of revenue each year. Dividends are minimal, at about 2% of profit, and there have been no buybacks. FY2026 operating cash flow recovered strongly as working capital released and new on-site plants contributed a full year.
6.5 Return and efficiency ratios
Net debt to EBITDA is negative (net cash) for FY2026. Interest cover is very high given borrowings of ₹1,366 crore against EBITDA of ₹1,648 crore. The cash conversion cycle is not published. ROE in the low teens reflects a large, under-levered equity base: net worth has grown 54% since FY2023 because almost all profit is retained. The falling adjusted ROCE (30.2% to 24.5%) is the main financial flag, since capital-in-progress is not yet earning. CARE has said that a sustained fall in ROCE below 15% would be a rating negative.
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Business Verticals
| Vertical | What it contains | Key products | Contract model |
|---|---|---|---|
On-site | Captive ASUs, nitrogen generators, hydrogen and pipeline supply schemes at customer sites | Gaseous O2, N2, Ar; UHP N2/O2 for solar and semiconductors; green H2 | Build-own-operate, 15–20 years, take-or-pay |
Merchant | Bulk liquid production at 28 merchant plants; tanker delivery to 1,679 customer tanks | Liquid oxygen, nitrogen, argon, CO2; medical liquid oxygen | Supply contracts and purchase orders |
Packaged and Specialty Gases | Cylinders, high-purity and electronic gases, mixtures, specialty-gas warehouses | Industrial and medical cylinders, acetylene, helium, N2O (6N), silane, ammonia, calibration mixtures | Purchase orders |
Business Verticals (Annual)
| Vertical | FY2026 |
|---|---|
Merchant revenue (INR Cr) | 1,778 |
On-site revenue (INR Cr) | 871 |
Packaged and specialty revenue (INR Cr) | 388 |
Vertical | FY2026 |
Merchant share of revenue (%) | 58.6 |
On-site share of revenue (%) | 28.7 |
Packaged and specialty share of revenue (%) | 12.8 |
Income Statement and Margin Analysis (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Revenue from operations (INR Cr) | 2,589.94 | 2,789.78 | 3,033.93 |
Revenue growth (%) | 18.2 | 7.7 | 8.8 |
Other income (INR Cr) | 184.56 | 258.86 | 178.94 |
Total income (INR Cr) | 2,774.50 | 3,048.64 | 3,212.87 |
EBITDA as reported, incl. other income and JV share (INR Cr) | 1,331.12 | 1,519.65 | 1,647.79 |
EBITDA excl. other income (INR Cr) | 1,146.56 | 1,260.79 | 1,468.85 |
Depreciation and amortisation (INR Cr) | 231 | 264 | 346 |
EBIT, reported EBITDA less D&A (INR Cr) | 1,100 | 1,256 | 1,302 |
Profit after tax (INR Cr) | 765.69 | 880.95 | 913.87 |
Basic/diluted EPS, post-bonus (INR) | 14.81 | 17.04 | 17.68 |
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View Subscription PlansMargin Analysis (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
EBITDA margin on total income (%) | 47.99 | 49.85 | 51.29 |
EBITDA margin excl. other income, on revenue (%) | 44.3 | 45.2 | 48.4 |
PAT margin on total income (%) | 27.60 | 28.90 | 28.44 |
PAT margin on revenue (%) | 29.6 | 31.6 | 30.1 |
Income Statement
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|
Profit after tax (INR Cr) | 463.2 | 480.6 | 725.9 | 670.4 | 765.69 | 880.95 | 913.87 |
Balance Sheet and Financial Ratios (x)
| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Net worth (INR Cr) | 4,719.31 | 5,473.06 | 6,341.15 | 7,269 |
Total borrowings (INR Cr) | 488.27 | 1,189.85 | 1,327.39 | 1,366 |
Debt to equity (x) | 0.10 | 0.22 | 0.21 | 0.19 |
Cash Flow and Margin Analysis (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Operating cash flow (INR Cr) | 894 | 861 | 1,264.24 |
Capex, net of subsidies (INR Cr) | 1,013 | 1,261 | 1,110 |
Free cash flow (INR Cr) | -119 | -400 | 154 |
Operating cash flow to reported EBITDA (%) | 67 | 57 | 77 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Return on closing net worth (%) | 13.99 | 13.89 | 12.57 |
Adjusted ROCE as disclosed (%) | 30.24 | 27.58 | 24.45 |
Asset turnover, revenue to closing net worth (x) | 0.47 | 0.44 | 0.42 |
Capital Markets
| Metric | Linde India | Ellenbarrie |
|---|---|---|
Share price (INR) | 6,200 | 369 |
Market capitalisation (INR Cr) | 52,855 | 5,205 |
P/E (x) | 95.9 | 50.0 |
Price to book (x) | 12.5 | 5.3 |
Credit Ratings
| Agency | Rating | Outlook | Date |
|---|---|---|---|
CRISIL | AA+ / A1+ | Stable | 11 Jan 2024 |
CARE | AA+ | Stable | 7 Apr 2022 |
Analyst Conclusions
Management guidance. No numerical guidance has been issued. Management points to commissioning of about 4,314 TPD of on-site and 921 TPD of merchant capacity, the Dholera hub, and growth in solar and electronics UHP supply.
Consensus. There is no sell-side consensus before listing. Recent trends (8–9% revenue growth, margins above 48% excluding other income) and the step-up in capacity once Tata Steel Meramandali comes on line point to faster growth in FY2027–FY2028.
Bull case
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Capacity under construction is about 5,235 TPD, more than the 4,700 TPD now operating, and is mostly contracted on take-or-pay terms. That supports double-digit EBITDA growth as the plants are commissioned.
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Margin leadership (51.29% reported EBITDA) and net cash allow growth to be self-funded without dilution.
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First-mover domestic UHP and electronic-gas assets (N2O, UHP LOX, 5N LN2, Dholera), backed by Air Products' credibility, give the company an edge as fabs, OSATs and TOPCon cell plants scale up.
Bear case
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Free cash flow has been negative over three years and ROCE has fallen; returns depend on projects being delivered on time.
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Steel, pharma and auto make up 57% of revenue and the top five customers about 26%, so cyclical or contract shocks would be felt.
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A 60x-plus P/E, implied if the stock prices against Linde India, would leave little room for disappointment given 8–9% recent growth. Further promoter sell-downs to reach 25% public float add supply overhang.
Key catalysts (next 12 months)
SEBI observations on the DRHP, RHP and IPO pricing: Expected timing: FY2027
Commissioning of Tata Steel Meramandali 2 × 1,800 TPD ASUs: Expected timing: FY2027–FY2028
- Groundbreaking at the Dholera Electronic Specialty Gas Hub and first fab or OSAT contract — Expected timing: FY2027
Start-up of Grew Energy, ReNew and INA Solar UHP supply: Expected timing: FY2027
H1 FY2027 results in post-listing disclosures: Expected timing: After listing
Analyst verdict. INOX Air Products is the best-run and most profitable industrial gases franchise in India. It has the largest share (22.4%), the widest logistics network and EBITDA margins about ten percentage points above the listed leader, Linde India. Its 50:50 ownership, split between an entrepreneurial Indian promoter family and a global gases major, has produced a business that grew operating revenue from ₹1,558 crore in FY2020 to ₹3,034 crore in FY2026, nearly doubled profit to ₹914 crore over the same period, and still holds net cash. For investors, the listing is a rare chance to own scale exposure to India's industrial build-out (steel, glass, healthcare) together with an early position in the country's semiconductor and solar supply chain. In the electronic-grade hydrogen and nitrogen market, INOXAP is the most credible domestic bulk supplier. Its UHP nitrogen and oxygen contracts with solar-cell makers and its planned Dholera hydrogen and nitrogen capacity sit right next to India's first fab cluster.
The caveats are real, though. The company is mid-way through a capex cycle that has pushed free cash flow negative and adjusted ROCE down from 30% to 24%. Recent top-line growth has been high single digits. The IPO is entirely secondary, so none of the proceeds fund growth. Electronic specialty gases are still a small share of revenue, and global majors will compete hard for the fab contracts that matter. The investment case therefore rests on execution: commissioning Meramandali and the solar UHP plants on time, and turning Dholera into contracted fab revenue. If that happens, earnings growth should move back into the mid-teens and justify a premium multiple. If not, a Linde India-style valuation would look stretched. On balance the franchise is high quality and should be owned at a sensible entry price, with the outcome tied mainly to its project pipeline.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Role | Background |
|---|---|---|
Pavan Kumar Jain | Chairman; Promoter | Chemical engineer (IIT); long-time Managing Director of INOX Air Products; Chairman of INOX India; leads the INOX Group branch that holds INOXAP |
Siddharth Jain | Managing Director; Promoter | Mechanical engineering, University of Michigan; MBA, INSEAD; in the family business since 2001; President, Gas Industries Association of India; Young Presidents' Organisation member; non-executive director of INOX India |
Subir Ganguly | Head – Onsite Business Development | Led the Tata Steel Meramandali contract (2023) |
Surendra Choudhary | Chief Financial Officer (as named in an earlier Directors' Report) | Finance |
Major Shareholders
| Holder group | Stake (%) |
|---|---|
Air Products Group (Prodair Corporation) | 49.74 |
INOX Group / Jain family entities | 49.74 |
Major Shareholders by Selling Shareholder
| Selling shareholder | Shares offered | Weighted average cost per share (INR) |
|---|---|---|
Prodair Corporation | 38,578,328 | 7.49 |
Siddhomal Air Products Pvt Ltd | 14,673,000 | 0.06 |
INOX Chemicals LLP | 11,765,280 | 0.64 |
Siddho Mal Trading LLP | 11,649,450 | 0.26 |
Sitashri Trading and Finance Pvt Ltd | 490,605 | 3.22 |
Competitive Landscape
Peer Comparison FY2026
| Metric | INOX Air Products | Linde India | Ellenbarrie |
|---|---|---|---|
Revenue (INR Cr) | 3,034 | 2,531 | 342 |
Revenue growth (%) | 8.8 | 1.8 | 9.3 |
Operating EBITDA margin (%) | 46.8 | 35.9 | 34.2 |
PAT (INR Cr) | 914 | 551 | 104 |
Operating cash flow (INR Cr) | 1,264 | 786 | 133 |
ROE (%) | 13.4 | 13.7 | 12.9 |
ROCE (%) | 15.6 | 18.2 | 14.5 |
Cryogenic tankers (approx.) | 739 | 190 | 80 |
