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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