Suzlon Energy shares are currently trading lower, registering a nearly 1% drop to ₹47.27. The stock has experienced a significant downturn, falling 27% from its 52-week high of ₹64.96 recorded on August 12, 2025. This decline has pushed the stock into an oversold territory on technical charts, indicated by a Relative Strength Index (RSI) of 29.1.
Despite the current technical weakness, which sees the stock trading below its 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages, brokerage firm Geojit Financial Services holds a bullish outlook. Geojit has upgraded Suzlon Energy to a "BUY" rating, forecasting a 16% upside potential with a target price of ₹56.
Geojit's Bullish Rationale for Suzlon Energy
Geojit's optimism stems from Suzlon Energy's strategic evolution under its "Suzlon 2.0" initiative. This strategy is expanding the company's addressable market and diversifying its business beyond standalone turbine sales. While acknowledging that a higher EPC (Engineering, Procurement, and Construction) mix and increased DevCo (Development Company) investments might elevate capital intensity and moderate Return on Capital Employed (ROCE) from 37% in FY26 to an estimated 23% by FY28, Geojit believes these investments will strengthen long-term growth visibility.
The brokerage's estimates are described as conservative, already factoring in potential near-term margin pressures and execution risks. Geojit highlights Suzlon's robust financial position, citing its net-cash balance sheet, a 19% Return on Equity (ROE), and an impressive 25% earnings CAGR (Compound Annual Growth Rate). Based on these factors, Geojit values the stock at 28 times its FY28E Adjusted EPS of ₹2.0, leading to their ₹56 target price.
Recent Financial Performance
In the first quarter of fiscal year 2026 (Q1 FY26), Suzlon Energy reported a consolidated net profit of ₹305 crore, a marginal decrease of 5.86% compared to ₹324 crore in the corresponding quarter of the previous year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹595 crore for the quarter, slightly lower than the ₹599 crore reported a year earlier, with an EBITDA margin of 15.6%.
However, revenue from operations showed strong growth, increasing by 22.52% year-on-year to ₹3,819 crore from ₹3,117 crore in Q1 FY26. Suzlon Energy remains a prominent provider of renewable energy solutions, primarily known for its wind turbine manufacturing and a growing portfolio of solar energy offerings, including project development, supply chain management, installation, and lifecycle asset management.