What to do with Suzlon Energy post Q1? Brokerages decode stock strategy

Suzlon Energy share price, Q1 results: Suzlon Energy share price was under pressure on Wednesday, August 13, 2025, with the scrip dropping as much as 4.42 per cent to an intraday low of ₹60.33 per share.

 

At 10:20 AM, Suzlon Energy share price was trading 3.06 per cent lower at ₹61.19 per share. In comparison, BSE Sensex was trading 0.31 per cent higher at 80,484.64 levels.  CATCH STOCK MARKET LATEST UPDATES LIVE

Suzlon Energy Q1 results

 

Suzlon Energy reported a strong Q1FY26 performance with major year-on-year (Y-o-Y) growth across financial metrics. The company posted a 62 per cent rise in Ebitda at ₹599 crore. Revenue surged 55 per cent to ₹3,117 crore, and profit before tax rose 52 per cent to ₹459 crore. PAT stood at ₹324 crore.

 

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Operationally, Suzlon recorded its highest-ever Q1 deliveries of 444 MW. It secured 1 GW in new orders during the quarter, pushing the total order book to 5.7 GW, 75 per cent of which consists of commercial and industrial (C&I) and public sector undertakings (PSU) orders. Net cash position stood at ₹1,620 crore as of June 30, 2025.

 

On the policy front, the government has introduced ALMM (Approved List of Models and Manufacturers) norms for wind and turbine components to enhance manufacturing standards. India’s carbon market is expected by 2026, adding further momentum to clean energy investments. A robust 41 GW pipeline in central, state, and C&I segments is taking shape, backed by large PSU and hybrid project auctions.

 

India aims to achieve 122 GW of wind capacity by FY32, with increasing demand in RTC (Round-The-Clock) and FDRE (Firm and Dispatchable Renewable Energy) segments. C&I sector demand is projected to reach 78 GW by FY30. Suzlon is also evaluating export potential, particularly in turbine components, and sees a repowering opportunity of around 25.4 GW in existing projects.

 

Girish Tanti, vice chairman, Suzlon Group, said, “The energy sector is undergoing a structural shift where winddominant FDRE and RTC solutions are essential for delivering firm, reliable, and affordable clean power to India. The rising demand from C&I and PSU customers, along with a strong base of repeat orders, reflects the trust in Suzlon’s technology leadership and execution capabilities. India achieving 50per cent non-fossil fuel capacity well ahead of its target is reshaping the manufacturing ecosystem. With our integrated domestic value chain, Suzlon is best positioned to leverage this momentum and drive India’s clean energy economy forward.”  ALSO READ | Up 66% in 6 months, Paytm eyes 24% rally if it clears this hurdle on charts

Suzlon stock: Buy, sell or hold?

 

Motilal Oswal

 

Suzlon Energy’s Q1FY26 earnings were broadly in line with expectations, with deliveries (444MW versus estimate 452MW), revenue, and Ebitda matching estimates. Adjusted PAT missed due to a deferred tax charge of ₹134 crore. Strong execution, rising EPC share (22 per cent), and stable WTG realisations support the company’s 60 per cent Y-o-Y growth guidance. Ebitda margin remained healthy at 19 per cent (versus FY26E: 17 per cent). 

Key near-term monitorables include the exit of Group CFO Himanshu Mody, weak installation vs. delivery trends, and tepid order inflows (1GW FY26TD). However, the company is reportedly close to signing a 700MW deal with Tata Power. Additional 547MW is also in pre-commissioning, and potential working capital efficiencies are not yet factored into forecasts.

 

Thus, Motilal has cut FY26 adjusted PAT by 25 per cent (factoring in a 25 per cent tax rate) and tweaked FY27 estimates. Analysts reiterate ‘Buy’ rating with a TP of ₹80 (35x FY27E EPS), implying 26 per cent upside.

 

JM Financial

 

Suzlon reported Q1FY26 revenue of ₹3,130 crore (55 per cent Y-o-Y), Ebitda of ₹600 crore (62 per cent Y-o-Y), and a 19 per cent margin (versus 18 per cent Y-o-Y), slightly ahead of estimates. Adjusted PAT stood at ₹460 crore, up 7 per cent Y-o-Y, factoring in reversal of DTA from FY25. The company’s 4.5 GW manufacturing capacity and 5.7 GW order book underpin confidence in 60 per cent growth across key metrics.

 

However, installations continue to lag at ~20 per cent of deliveries, raising concerns over execution continuity. Based on projected deliveries of 2500 MW/3100 MW in FY26/FY27, JM estimates EPS of ₹1.51/₹2.31 and maintains a ‘Buy’ with a revised TP of ₹78 (35x FY27 EPS).

 

Nuvama

 

Suzlon delivered 444MW in Q1FY26 (versus estimate 420MW), with 19.1 per cent OPM (versus estimate 17.4 per cent), leading to a 62 per cent Y-o-Y jump in Ebitda. A sharp 132 per cent Y-o-Y rise in interest costs due to a one-off charge impacted PBT, which still rose 52 per cent Y-o-Y. A non-cash DTA reversal of ₹130 crore capped PAT growth at ~7 per cent.

While the order book remains strong at 5.7 GW, Nuvama trims FY26E/27E EPS by 4 per cent/1 per cent on weaker EPC mix. Retains ‘Hold’ with a revised TP of ₹67 (down from ₹68), based on 40x FY27 EPS plus DCF from O&M.