Suzlon Energy, a prominent player in India’s renewable energy sector, has witnessed a sharp correction in its stock price, falling for the fourth consecutive session. The stock has declined over 10.5% in just four trading days, despite strength in broader indices.
Key Factors Behind the Fall:
- Q1 FY26 Earnings Miss: While revenue and EBITDA were strong, net profit came in below expectations due to a ₹134 crore deferred tax charge. The company reported a net profit of ₹324 crore, which disappointed some investors.
- CFO Resignation: Group CFO Himanshu Mody has resigned, effective August 31, 2025. His departure has raised concerns about leadership continuity, as he played a key role in Suzlon’s financial turnaround.
- Sector-Wide Correction: The renewable energy and power sector is undergoing a valuation reset after a strong rally, leading to profit-booking across several stocks.
Financial Snapshot – Q1 FY26
| Metric | Value | Year-on-Year Change |
|---|---|---|
| Revenue | ₹3,117 crore | +55% |
| EBITDA | ₹599 crore | +62% |
| Net Profit (PAT) | ₹324 crore | +7% |
| Order Book | 5.7 GW | Strong |
| Deliveries | 444 MW | Record High |
| Net Cash Position | ₹1,620 crore | Debt-Free |
Analyst Commentary
Motilal Oswal: Reduced FY26 profit estimates by 25% due to higher tax rate. Maintains Buy rating with a target price of ₹80. Notes potential upside from new orders and regulatory support.
JM Financial: Highlights concern over installation delays. Projects EPS of ₹1.51 for FY26 and ₹2.31 for FY27. Target price: ₹78.
Axis Securities: Positive on execution and revenue visibility. Target price: ₹72 over 3–6 months.
UBS and Nuvama: UBS initiated coverage with a Buy rating and ₹78 target. Nuvama revised target to ₹67 due to softer EPC mix.
Investor Strategy
Short-Term Outlook: Expect continued volatility due to leadership changes and sector-wide correction. Traders should monitor support levels near ₹56 and watch for updates on CFO succession.
Long-Term Outlook: Suzlon remains fundamentally strong with a debt-free balance sheet, robust order book, and favorable industry dynamics. Most analysts maintain a bullish stance, with target prices indicating 20–35% upside from current levels.
Conclusion
The recent decline in Suzlon’s share price appears to be driven more by sentiment and short-term concerns than by any major deterioration in fundamentals. Long-term investors may consider this a buying opportunity, while short-term traders should remain cautious until technical and leadership clarity emerges.
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