Suzlon Energy rallies 13% on strong Q4 results; Motilal Oswal raises target price
Shares of
Suzlon Energy
surged as much as 13.6% to Rs 74.30 on the
BSE
on Friday after brokerage firm Motilal Oswal raised its target price to Rs 83 and reaffirmed its 'buy' rating, citing the company's strong fourth-quarter earnings and an upbeat outlook for FY26.
As of 12:45 pm, Suzlon Energy is trading at Rs 71.04, up 8.59% for the day.
The revised target implies a potential 27% upside from Suzlon's last closing price and a further 11.7% gain from Friday's intraday high. The rally came after Suzlon reported March-quarter results that significantly exceeded analyst expectations, driven by better-than-expected wind turbine generator (WTG) deliveries and margin expansion.
'Suzlon Energy delivered a strong set of results, with deliveries and EBITDA coming in ~15% and 38% ahead of our expectations, respectively,' Motilal Oswal said in a note, according to an ET report. 'Management maintained its positive outlook and guided for at least a 60% year-on-year improvement in deliveries, revenue, EBITDA, and adjusted PAT for FY26.'
In Q4FY25, Suzlon reported a 365% year-on-year jump in consolidated net profit to Rs 1,182 crore, up from Rs 254 crore a year earlier.
Revenue from operations rose 73% to Rs 3,773 crore. On a sequential basis, net profit grew 205%, while revenue increased by 27%.
EBITDA for the quarter stood at Rs 690 crore, marking a 94% increase year-on-year, with EBITDA margin expanding to 18.4%. The earnings also included a deferred tax gain of approximately Rs 600 crore.
The WTG segment performed strongly, with revenue more than doubling to Rs 3,142 crore and EBIT rising over fivefold to Rs 420 crore.
Suzlon delivered 573 MW during the quarter, bringing total deliveries in FY25 to 1,550 MW—up 118% from the previous year.
For the full year, the company reported a 67% increase in revenue to Rs 10,851 crore and a 214% rise in net profit to Rs 2,072 crore. EBITDA for the year was up 81% at Rs 1,857 crore, supported by a significant improvement in the WTG segment's contribution margin, which exceeded 23%.
Suzlon's order book stood at 5,555 MW as of May 2025, including 1,500 MW from NTPC.
In FY25, the company installed 336 MW and had another 371 MW ready for commissioning.
Motilal Oswal pointed to strengthening sector momentum as a key driver, with India's wind energy installations projected to reach 6 GW in FY26, and 7–9 GW annually over the next two years. It said Suzlon is well-positioned to benefit from this expansion, supported by its execution capabilities.
'The early implementation of the local content-related draft notification can be a strong catalyst for the stock,' the brokerage added.
Motilal Oswal values the stock at a forward P/E of 35x FY27 estimated earnings—slightly above its historical average—reflecting increased earnings visibility and execution momentum.
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