Suzlon Energy Ltd. experienced a significant dip in its share price, falling 14% over two trading sessions following the announcement of its Q1FY27 results on Tuesday. Despite the immediate market reaction, several brokerage firms maintain a largely positive outlook on Suzlon Energy shares, forecasting potential upsides of over 60%.
Q1FY27 Performance Overview
For the June 2026 quarter, Suzlon Energy reported a 5.9% year-on-year (YoY) decline in net profit, settling at Rs 305.22 crore. This occurred even as the company's revenue saw a substantial 22.5% YoY increase, reaching Rs 3,819.36 crore. EBITDA remained flat at Rs 596 crore, with margins contracting to 15.96% for the quarter. The company achieved its highest-ever Q1 deliveries at 506 MW, marking a 14% YoY increase, and commissioned 269 MW, scaling up 2.3 times. Suzlon also secured new order additions totaling approximately 1 GW during the period, with its EPC order share in the order book rising to 32%.
Brokerage Insights and Outlook
Analysts acknowledge the mixed Q1 performance, noting the decline in net profit and EBITDA margins. ICICI Securities highlighted that while revenue grew, driven by higher realization in the WTG segment, margins were impacted by expenses related to "Suzlon 2.0" initiatives and ongoing geopolitical and supply chain issues. However, the firm noted healthy order inflow (1 GW YTD-FY27), expanding the order book to 6.1 GW, and a strong outlook for hybrid and wind renewable energy bidding.
JM Financial pointed to a classic leadership challenge between growth and profitability, observing traction in Suzlon's DevCo model with significant orders. Management guidance suggests a stronger second half of the fiscal year (H2), projecting a 35-40% / 60-65% split between H1 and H2, an EBITDA margin of 17-18%, and capital expenditure of Rs 700 crore.
Motilal Oswal Financial Services Ltd. reiterated Suzlon's strong long-term growth prospects, with management targeting 10 GW sales by FY31, comprising a 75:25 wind-solar mix. Despite temporary margin pressures from product mix and supply chain disruptions, the company is expanding manufacturing capacity for 5 MW turbines, eyeing a 20 GW-plus opportunity in solar O&M, and expects to finalize battery energy storage system (BESS) partnerships soon.
Centrum Broking emphasized Suzlon's net cash position of Rs 2,320 crore, a healthy order pipeline, and improving execution visibility. They project a robust 20.9% revenue and 20.6% EBITDA CAGR over FY26-FY29E, driven by Suzlon 2.0 initiatives, though they trimmed their FY27E and FY28E EPS forecasts. Anand Rathi Share & Stock Brokers Ltd. echoed that robust WTG deliveries fueled revenue growth, but profitability was affected by a richer EPC mix and initial investments in Suzlon 2.0. They anticipate improved operating leverage as execution accelerates in H2.
Analyst Target Prices
Despite some target price adjustments, most major brokerage firms have maintained their 'buy' ratings on Suzlon Energy shares:
- ICICI Securities: 'Buy' rating, target price of Rs 65.
- Motilal Oswal: 'Buy' rating, target price of Rs 65.
- JM Financial: 'Buy' rating, trimmed target to Rs 62 (from Rs 64).
- Centrum Broking: 'Buy' rating, trimmed target to Rs 74 (from Rs 75), suggesting over 60% upside.
- Anand Rathi: 'Buy' rating, target price of Rs 56.
- Nuvama: 'Hold' rating, target price of Rs 51.
- Ambit: Cut target to Rs 59 (from Rs 62).
- Axis Capital: 'Buy' rating, lowered target to Rs 63 (from Rs 75).
- UBS: 'Buy' rating, trimmed target to Rs 66.
- Investec: 'Buy' rating, trimmed target to Rs 67.
In summary, while Suzlon Energy's Q1FY27 results led to a short-term correction in its share price, the consensus among analysts points to a strong long-term growth trajectory, supported by strategic initiatives, a healthy order book, and expanding market opportunities in renewable energy.