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Shares of Suzlon Energy Ltd climbed 10 per cent in Friday’s trade after a couple of stock brokerages lifted their target prices on the stock post a solid March quarter earnings and optimistic management commentary. 

The stock climbed 13.57  per cent to hit a high of Rs 74.30 today, which pushed the market capitalisation of the company close to R 1,00,000 crore-mark. The Suzlon stock, which traded in a wide range of Rs 43.50-86.04 in the past one year, is up 44 per cent in the past three months and 55 per cent for the one-year period.

Motilal Oswal Financial Services (MOFSL) highlighted the company’s strong performance, with deliveries and EBITDA beating estimates by 15 per cent and 38 per cent, respectively. The management remains optimistic, projecting at least a 60 per cent year-on-year improvement in deliveries, revenue, EBITDA, and adjusted PAT for FY26.

“This guidance aligns closely with our and the Street’s estimates and reflects strong management confidence in the sector,” MOFSL said.

Suzlon reported a staggering 364 per cent year-on-year jump in Q4 profit, supported by a 73.20 per cent increase in sales. In response, Nuvama Institutional Equities revised upward its FY26–27 estimates, factoring in 5–7 per cent higher sales and an 8–15 per cent improvement in EBITDA, alongside tax adjustments.

“We remain long-term positive on Suzlon Energy and retain a ‘HOLD’ rating with a revised target price of Rs 68, up from Rs 61, based on 40 times FY27E EPS (WTG + F&F EPS) plus DCF of O&M,” Nuvama said.

MOFSL set a higher target price of Rs 83, applying a 35 times P/E multiple to FY27E EPS—above Suzlon’s historical two-year forward average P/E of 27 times—reflecting improving execution and earnings visibility.

Although Suzlon did not provide explicit FY27 guidance, management expects India’s wind installations to grow steadily to 6GW in FY26, 7-8GW in FY27, and 9GW in FY28, up from 4.2GW in FY25.

Suzlon’s stock closed at Rs 65.44 on Thursday, marking a 16 per cent gain in the last month and a 44 per cent rise over the past year.

In Q4, the company posted a consolidated net profit of Rs 1,181 crore compared to Rs 254 crore a year earlier. This includes a deferred tax gain of Rs 600 crore. Sales surged to Rs 3,773.50 crore from Rs 2,179.20 crore.

The company executed 573MW in Q4FY25, exceeding the estimated 475MW. Its operating profit margin improved to 18.3 per cent against the estimated 14.7 per cent, driven by a higher Wind Turbine Generator (WTG) mix and operating leverage. This resulted in a 25 per cent beat to Nuvama’s PBT estimates despite elevated depreciation and interest costs related to the Renom acquisition.

Nuvama explained that a deferred tax asset creation of Rs 640 crore contributed to a 2.7 times PAT beat by advancing the benefit of lower tax incidence to FY25 instead of FY26, with minimal impact on FY27 estimates.

Order inflow in Q4FY25 was below 100MW due to cancellations and truncations, leaving Suzlon with a 5GW order book over 24 months, ensuring revenue visibility.

“Nuvama believes Suzlon Energy will continue to benefit from the growing share of FDRE/RTC/Hybrid technologies in government tenders. Suzlon also holds a dominant position in the Commercial & Industrial (C&I) segment, accounting for 55 per cent of its order book, as well as in the PSU segment. It benefits from a duopoly in EPC plus WTG capabilities, maintaining over 30 per cent market share overall,” the brokerage added.  

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India’s export sector faces challenges from rising geopolitical tensions, protectionist trade policies, and the rising threat of a global tariff war, the Reserve Bank of India warned in its annual report. However, the central bank said India’s active participation in 14 free trade agreements and six preferential trade agreements could help offset some of these headwinds.

India’s ongoing negotiations for new deals with key trading partners such as the US, Oman, Peru, and the European Union are expected to provide fresh impetus to trade growth, RBI said in its report for 2024-25. 

RBI also warned that rising input cost pressures for the manufacturing sector and subdued domestic demand posed risks to India’s economic growth.

Global merchandise trade volume is projected to contract 0.2% in 2025 under an adjusted scenario based on the tariff situation as of 14 April 2025, RBI said. But the US’s trade deal with the UK and its agreement with China to engage in discussions, both earlier this month, augur well for global trade, it said.

India’s trade talks with the US and the EU are in the final stages and likely to be signed next month. India recently finalised its trade agreement with the UK, concluding three years of negotiations that began in 2022. 

“(India’s trade agreements) will add one more factor to the RBI recommendations. With less than 20% of global trade taking place under free trade agreements, India needs to focus on competing in the broader international market,” said Ajay Srivastava, a former Indian trade negotiator and co-founder of the Global Trade Research Initiative (GTRI), a trade research think tank.

“This requires deep reforms to domestic manufacturing, including lowering production and input costs, rationalizing import duties, reducing delays at ports, and ensuring easy access to loans for small and medium enterprises,” Srivastava added.

Widening trade deficit

India’s merchandise trade deficit widened to $282.8 billion in 2024-25 from $241.1 billion a year ago, with oil accounting for 43.3% of that, commerce ministry data show. This means India spent much more on importing goods than it earned from exporting them during the year.

Among India’s major trading partners, the country’s trade deficit with China, Russia and the UAE widened in 2024-25, while surpluses improved in respect of the US, the Netherlands, and the UK.

Coal imports fell 20% year-on-year in 2024-25, driven by both a decline in volumes and lower import prices, per RBI’s annual report. 

The drop was primarily due to higher domestic coal production and reduced demand from thermal power plants for imported coal used in blending. As a result, India’s reliance on imported coal declined significantly, easing pressure on the country’s import bill and helping to moderate the overall merchandise trade deficit.

India’s trade talks with the US

India’s discussions with the US for a bilateral trade agreement is among the country’s most crucial international pacts in the works, but has been under the shadow of US President Donald Trump’s reciprocal tariffs announced last month.

On 28 May, however, a US federal court ruled that Trump’s tariffs and country-specific duties—such as the 26% levy on Indian goods—were not justified under the International Emergency Economic Powers Act since trade deficits do not qualify as an “unusual and extraordinary threat” under the law.

Indian trade experts are now urging New Delhi to reconsider its approach to ongoing trade negotiations with the US, and not allow for unilateral concessions.

India’s bilateral trade with the US climbed significantly in the just-ended financial year, to $131.84 billion in FY25 from $119.72 billion in FY24. 

This growth was driven by a sharp increase in Indian exports, which rose 11.6% to $86.51 billion from $77.52 billion over that period, while imports from the US grew at a slower pace of 7.42%, to $45.33 billion from $42.20 billion.

As a result, India’s trade surplus with the US widened by 16.6% to $41.18 billion in FY25, compared with $35.32 billion in the previous year.

India’s key imports and exports

India’s gold imports rose sharply in 2024–25, increasing 27.4% year-on-year to $58 billion. The rise was driven largely by a 30% surge in international gold prices, even as the overall import volume contracted, the RBI report noted.

India’s record trade deficit for November was revised downward to $32.8 billion from $37.8 billion after the government made a significant correction in gold import data, as Mint reported on 8 January. Gold imports for November were adjusted to $9.8 billion, a substantial reduction from the earlier estimate of $14.8 billion.

Electronic goods imports also grew significantly, expanding 12.4% to $98.7 billion during the year. Although exports of electronic goods remained strong, the trade deficit in the sector widened marginally to $60.1 billion in 2024–25. The electronic goods trade imbalance was primarily due to continued deficits in components and computer hardware and peripherals, as per the RBI report.

However, telecom instruments recorded a trade surplus of $3.7 billion, partly offsetting the overall gap.

Meanwhile, India’s net services exports reached $135.5 billion during April–December 2024, reflecting a robust growth rate of 12.9% year-on-year. This was largely supported by a 14.5% increase in software and business services exports, which together accounted for nearly 74% of the country’s total services exports.

Among other services, transportation receipts rose by 19.5% year-on-year, buoyed by higher global freight rates amid disruptions in key shipping routes. The average Baltic Dry Index—a benchmark for freight shipping prices—increased by 12% over the corresponding period of the previous year.

Exports of travel services also saw a modest rise of 5.5%, indicating increased spending by inbound tourists.

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Adani Ports and Special Economic Zone, India’s largest private port operator, has placed its longest-tenor debt with state-run Life Insurance Corporation of India, two sources familiar with the matter said on Thursday.

The company raised 50 billion rupees ($585.33 million) through the sale of bonds maturing in 15 years at 7.75 per cent annual coupon and the debentures were fully bought by LIC, the sources said, declining to be identified as they are not authorised to speak to the media.

The bonds were issued at the lowest spread over the corresponding government bond yield in the last seven years.

LIC and Adani Ports did not immediately respond to Reuters emails seeking comments.

The issue marked Adani Ports’ largest rupee-denominated bond and its first market return since January 2024, after Adani group companies pulled back following U.S. short-seller Hindenburg Research’s 2023 allegations of governance lapses.

Adani Group has denied those allegations.

Adani Ports has outstanding bonds worth around 62.50 billion rupees as of end-April, according to notes from rating agencies.

Holding around 54 billion rupees of debt, LIC was the largest holder of bonds of the company as of January 2024, according to an information memorandum of its January 2024 debt issue.

Adani Ports raised 2.5 billion rupees each via five- and 10-year bonds at coupons of 8.70 per cent and 8.80 per cent, respectively, in January 2024. Last week, its board approved raising up to 60 billion rupees through bond sales, with the notes rated AAA by Crisil and Care.

With the Adani Ports issue completed, more group companies are likely to tap local debt market, especially as yields are set to decline further due to policy rate cuts and surplus liquidity, two bankers said, declining to be named since they are not authorised to speak to media.

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Shares of Samvardhana Motherson International Ltd., the manufacturer of automobile components declined after the company reported its March quarter results on Thursday, May 29.

Additionally, the company’s board has also approved the issue of bonus shares along with its quarterly results.

Samvardhana Motherson will issue bonus shares in the ratio of 1:2, which means, eligible shareholders will receive one bonus share for every two shares they hold as of the record date.

The said bonus issue will be subject to approval of the company’s shareholders at the ensuing Annual General Meeting (AGM) of the company.

Samvardhana Motherson holds the record for being the non-Nifty company with the most number of bonus issues announced for its shareholders.

According to data available, Samvardhana Motherson has announced bonus shares in 1997, 2000, 2005, 2007, 2012, 2013, 2015, 2017, 2018 and 2022. This is the 11th instance in the last three decades that the company has issued bonus shares.

In all of the previous instances, the company has issued bonus shares in the 1:2 ratio, meaning eligible shareholders received one bonus share for every two shares that they held as on the record date.

The record date for this proposed bonus issue has not been disclosed yet.

For the March quarter, Samvardhana Motherson has reported a growth of 6% in its revenue to ₹29,317 crore, while its profitability went up by 19% from last year to ₹1,051 crore.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 1.6% year-on-year, while margins narrowed by 70 basis points.

Shares of Samvardhana Motherson are trading 0.5% lower after results and bonus issue announcement at ₹147.99. The stock has risen 11% in the last one month ahead of the results.

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Vedanta share price rose 2.3 per cent in trade on Thursday, May 27, 2025, logging an intraday high at ₹457 per share on BSE. The stock advanced after the National Company Law Appellate Tribunal (NCLAT) granted an interim stay on an order passed by the National Company Law Tribunal (NCLT) rejecting Vedanta’s five-way demerger.  

At 12:58 PM, Vedanta shares were up 1.15 per cent at ₹451.8 per share on the BSE. In comparison, the BSE Sensex was down 0.09 per cent at 81,239.32. The market capitalisation of the company stood at ₹1,76,182.53 crore. The 52-week high of the stock was at ₹527 per share and the 52-week low of the stock was at ₹362.2 per share. 

In the past one year, Vedanta shares lost 2 per cent as compared to Sensex’s rise of 9 per cent.

Vedanta demerger details 

In September 2023, Vedanta proposed a plan to demerge the current entity into six, independently listed entities. However, at the start of this year, Vedanta revised the plan to demerge the company instead into five entities, postponing plans to demerge the base metals business.

In February, Vedanta informed that its demerger-related resolution was been passed by shareholders and creditors — both secured and unsecured, with the requisite majority. The resolution was passed with 99.99 per cent of those participating, voting in favour.

Post the demerger, Vedanta will be split into five resulting companies — Vedanta, Vedanta Aluminium Metal, Talwandi Sabo Power Limited, Malco Energy, and Vedanta Iron and Steel. 

However, in March, the NCLT dismissed the demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) after objections were raised by SEPCO, a creditor of TSPL, in relation to the demerger of Vedanta.

The Mumbai bench of NCLT in its ruling said, “…keeping in view the facts and circumstances of the present case, we deem it appropriate to reject the scheme presented by the Applicant under Section 230 of the Companies Act.”

The decision came after China-based SEPCO Electric Power Construction Corporation raised objections to the demerger, saying that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors. 

SEPCO opposed the scheme, alleging that TSPL had concealed material information about its liabilities.

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