Suzlon Energy Share Target: After the release of its earnings for the January-March quarter of the financial year 2025-26, brokerage firms hold divergent views regarding the shares of Suzlon Energy, a major player in the energy sector.
While the company’s performance was broadly in line with expectations, the outlook regarding the pace of business growth over the next two years remains somewhat unclear. Consequently, some experts are currently advising caution.
The company posted a consolidated profit of Rs 1,114.35 crore in Q4 FY26 compared with Rs 1,182.22 crore in the corresponding quarter of the previous financial year (Q4 FY25).
Revenue from operations during the quarter rose 45 per cent year-on-year to Rs 5,468.06 crore from Rs 3,773.54 crore in Q4 FY25.
The renewable energy company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 964 crore in the March quarter, registering a growth of 39 per cent year-on-year and 31 per cent quarter-on-quarter.
EBITDA margin for Q4 FY26 came in at 17.6 per cent, which was roughly in line with estimates, compared with 18.4 per cent in the year-ago period and 17.5 per cent in the previous quarter.
Suzlon said it achieved its highest-ever annual and quarterly deliveries in India at 2,456 MW and 830 MW, respectively.
Nuvama’s view on Suzlon Energy – Outlook and valuation; downgrade to ‘HOLD’
Brokerage firm Nuvama has downgraded its rating on Suzlon Energy from ‘BUY’ to ‘HOLD’ while keeping its target price unchanged at Rs 55.
Nuvama notes that while the company’s quarterly performance was satisfactory, management did not provide limited future visibility guidance regarding growth prospects for the upcoming two years. Furthermore, the company is facing increased liquidity pressure due to the execution of government orders and delays in certain projects.
Consequently, the brokerage has marginally trimmed its profit forecasts for FY27 and FY28. Nuvama believes that the company’s annual growth may remain limited over the next two years; therefore, there is no immediate need for excessive exuberance.
“We view SUEL as a key beneficiary of rising share of FDRE/RTC/hybrid tenders and PSU-led projects, backed by its strong C&I/captive exposure (51% of OB). However, we expect the wind industry to plateau at 8–10GW over two–three years (similar to management estimate as competition from solar + BESS projects intensify),” the brokerage said.
“Assuming SUEL retains a 30–35% share, we expect execution to plateau at ~3.0–3.5GW annually over FY27–28. Downgrade to ‘HOLD’ with a TP of INR55 (due to stock run up of ~15% since Q3 results) at 30× FY28E (WTG + F&F EPS) + DCF of O&M,” it added.
Motilal Oswal’s view on Suzlon Energy
On the other hand, brokerage firm Motilal Oswal is bullish on Suzlon Energy. The brokerage has maintained ‘BUY’ rating on the stock, assigning a target price of Rs 65. This target represents an upside potential of approximately 20 per cent from the current market price.
The brokerage highlighted that the renewable energy giant achieved an annual growth rate of approximately 60 per cent in FY26, indicating a robust performance. The company continues to secure new orders consistently, and promising opportunities are emerging from public sector undertakings (PSUs).
Notably, the company no longer intends to limit itself solely to equipment supply; instead, it is placing increased emphasis on the business of executing and delivering entire turnkey projects. Earnings are expected to rise further from this point.
Robust order book, yet challenges remain
In the Q4 FY26 results, the company said it currently has an order book of nearly 5.9 GW, with 66 per cent of orders coming from the PSU and commercial and industrial (C&I) sectors.
However, the challenge lies in the fact that solar and battery storage projects are now expanding rapidly, which could somewhat constrain growth within the wind energy sector. Therefore, Suzlon will need to consistently secure new orders.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
