Suzlon Energy shares have experienced a significant downturn throughout July, shedding over 20% of their value since the company announced its first-quarter earnings. Despite this steep correction, which saw the stock fall nearly 14% immediately after the Q1 results and over 30% from its 52-week high of Rs 66.80, many domestic and foreign brokerage firms continue to express optimism, maintaining 'buy' ratings and projecting substantial upside potential.
Q1 Performance and Market Reaction
For the quarter ending June 30, 2026, Suzlon Energy reported a net profit of Rs 305.22 crore, marking a 5.9% year-on-year (YoY) decrease. This dip in profitability occurred despite a robust 22.5% YoY jump in revenue, which reached Rs 3,819.36 crore. The company's EBITDA remained flat at Rs 596 crore, while margins contracted to 15.96% for the reported quarter.
Analysts attributed the lower-than-expected earnings to temporary supply chain disruptions and strategic investments associated with ongoing business initiatives. Systematix Institutional Equities noted that the EBITDA margin came in at 15.5%, slightly below estimates, but maintained its 'buy' rating.
Operational Highlights and Order Book
Operationally, Suzlon recorded its highest-ever Q1 deliveries, reaching 506 MW, a 14% increase YoY. Commissioning activities also scaled up significantly, with 269 MW brought online, representing a 2.3 times increase from the previous year. The company added approximately 1 GW in new orders during the quarter, bringing its total order book to a robust 6,093 MW, after accounting for Q1 deliveries.
A notable aspect of Suzlon's order book is its composition: around 84% of current orders are from Public Sector Undertakings (PSUs) and Commercial & Industrial (C&I) customers, indicating a strong institutional backing. Furthermore, the company's EPC (Engineering, Procurement, and Construction) order share within its total book increased to 32%, up 10% from a year ago. Suzlon also reported a strong net cash position of Rs 2,322 crore at the end of the quarter, providing financial flexibility for future growth.
Analyst Outlook and Strategic Vision
Brokerage firms remain largely positive on Suzlon's long-term prospects, citing the company's 'Suzlon 2.0' strategy. This strategy aims to transform Suzlon from primarily a wind turbine manufacturer into a comprehensive renewable energy solutions provider. Management anticipates a 25% revenue growth over the next five years and targets EBITDA margins of 17–18% by FY27, driven by operating leverage and improved execution in the latter half of the year.
DR Choksey stated, "We expect the company to deliver a 25 per cent, 24 per cent and 27 per cent CAGR in revenue, EBITDA and PBT over FY26–FY28E, supported by robust execution, a healthy order book, and favourable industry tailwinds. We value Suzlon Energy at 30 times FY28E EPS of Rs 2.13 to arrive at a revised target price of Rs 64."
Anand Rathi Research, while trimming its EBITDA estimate for FY27/28 due to initial investments, maintained a 'BUY' rating with a revised target of Rs 56, valuing it at 15 times FY28e EBITDA. They believe the S175 platform, DevCo model, and selective international expansion will support medium-term growth.
Brokerage Target Prices
- ICICI Securities: Buy rating, Target Price Rs 65
- Motilal Oswal: Buy rating, Target Price Rs 65
- JM Financial: Buy rating, Target Price Rs 62 (previously Rs 64)
- Centrum Broking: Buy rating, Target Price Rs 74 (previously Rs 75), suggesting over 60% upside
- UBS: Buy rating, Target Price Rs 66 (trimmed)
- Investec: Buy rating, Target Price Rs 67 (trimmed)
- Systematix Institutional Equities: Buy rating, Target Price Rs 63
- DR Choksey: Target Price Rs 64
- Anand Rathi Research: Buy rating, Target Price Rs 56
Other firms like Nuvama (Hold, Target Rs 51), Ambit (Cut target to Rs 59), and Axis Capital (Buy, Target Rs 63) also provided their perspectives, with most maintaining a positive long-term view despite the recent share price volatility.