Shares of Suzlon Energy Ltd experienced a sharp decline of nearly 10% on Friday, hitting a 52-week low of Rs 33.21. This downturn followed the renewable energy solutions provider's announcement of its second-quarter (Q2 FY27) financial results after market hours on Thursday, October 29, 2026.
The primary catalyst for the steep fall was a significant contraction in the company's operating profitability. JM Financial, a prominent brokerage, noted that Suzlon's EBITDA margin declined to 15% in Q2 FY27, a considerable drop from 18.6% reported in the corresponding quarter of the previous year. This reduction was primarily attributed to a higher Engineering, Procurement and Construction (EPC) mix in its projects.
In response to the Q2 performance, JM Financial downgraded Suzlon Energy's stock rating from 'Buy' to 'Add' and revised its target price downwards to Rs 40 from Rs 46. The brokerage expressed concerns that Suzlon's margins and growth prospects could face sustained pressure from FY28 onwards. This outlook is based on factors such as a limited domestic market (estimated 7–8 GW per annum), increasing competition (with an industry capacity of 15–20 GW), and the inherent challenges of a single-product company.
Despite the margin pressures, Suzlon Energy did report some positive figures on its topline. The company's Q2 FY27 revenue grew by 26% year-on-year (YoY) to Rs 4,900 crore, largely aligning with JM Financial's estimates. Wind turbine generator (WTG) deliveries also saw an increase, reaching 710 MW from 565 MW in Q2 FY26, while installations nearly trebled to 454 MW from 153 MW in the prior-year quarter. Suzlon's order book stood at 6 GW, with EPC projects constituting 38%, up from 32% in Q1 FY27, as management targets a 50% EPC share by FY28.
Another brokerage, Nuvama Institutional Equities, also acknowledged that Suzlon's EBITDA margin fell short of expectations in Q2 FY27. Nuvama maintained its 'Hold' rating but lowered its 12-month target price to Rs 41 from Rs 51, adjusting earnings per share (EPS) estimates to reflect higher EPC-led costs.
Conversely, Motilal Oswal Financial Services Ltd (MOFSL) maintained a 'Buy' recommendation on Suzlon Energy, setting a target price of Rs 65, indicating a more optimistic long-term view.
Technical Outlook for Suzlon Energy Shares
From a technical analysis perspective, AR Ramachandran, a Sebi-registered research analyst at Tips2trades, indicated that Suzlon Energy is currently bearish and oversold on daily charts. He identified the next support level at Rs 32.46. Investors holding short positions were advised to consider booking profits. For those looking to buy, a daily close above the resistance level of Rs 36.1 could signal a potential upside target of Rs 41.2 in the near term.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.