Ahead of their Q1 FY27 earnings reports, Systematix Institutional Equities has reiterated its 'Buy' recommendations for wind energy sector leaders Suzlon Energy Ltd and Inox Wind Ltd. The brokerage anticipates a steady performance for both companies, underpinned by ongoing project execution, despite expected seasonal weakness.
Suzlon Energy: Strong Execution and Order Book
For Suzlon Energy, Systematix forecasts consolidated revenue of ₹3,740 crore for Q1 FY27. This represents a 19 percent year-on-year (YoY) increase, though a 32 percent quarter-on-quarter (QoQ) decline, reflecting typical seasonality. The revenue projection is based on an estimated 530MW of order execution during the quarter.
The brokerage projects Suzlon's consolidated EBITDA at approximately ₹700 crore, a 17 percent YoY rise but a 27 percent QoQ dip, with an implied EBITDA margin of 18.7 percent. Suzlon's robust execution capabilities are highlighted, including a significant 105MW domestic order from Sunsure Energy for its S175 (5.0MW) WTGs. Cumulatively, Suzlon secured 700MW in new orders during Q1 FY27, bolstering its current order book to an impressive 5,867MW after accounting for estimated quarterly supplies.
Inox Wind: Revenue Expectations and Key Monitorables
Systematix expects Inox Wind to report consolidated revenue of ₹900 crore for Q1 FY27. This marks a 9 percent YoY growth but a 28 percent QoQ decrease, attributed to seasonality and near-term execution constraints. The estimate factors in about 170MW of project execution during the quarter.
Consolidated EBITDA for Inox Wind, excluding other income, is estimated at ₹190 crore, showing a 3 percent YoY increase but a 5 percent QoQ decline, with an implied EBITDA margin of about 21 percent. A critical factor for Inox Wind's future performance, according to Systematix, will be its execution pace, particularly the momentum of commissioning new projects and the availability of essential ECS components.
Industry Outlook: Positive Trends Amidst Bottlenecks
The broader Indian wind sector continues to exhibit structural positives. However, Q1 FY27 saw a capacity addition of approximately 1.35GW, an 18 percent YoY and 15 percent QoQ decrease. This indicates a softer commissioning cycle and growing execution bottlenecks within the industry. Future performance for original equipment manufacturers (OEMs) will increasingly hinge on delivery speed, component availability, grid evacuation readiness, and the capacity to convert hybrid and FDRE demand into commissioned projects.
Disclaimer: This article provides market insights for informational purposes only and does not constitute investment advice. Readers should consult with a qualified financial advisor before making any investment decisions.