Suzlon Energy eyes order tailwinds after robust Q1
The company's Q1 results were in line with its earlier guidance of 60% growth for FY26 in key parameters, and there is optimism over its upcoming order inflow.
Deliveries of wind turbine generators (WTG) were up 62% year-on-year (y-o-y) to 444 MW and earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 64% to ₹603 crore. Profit after tax growth looked modest at 7%, but that was due to a non-cash charge of deferred tax this time versus nil a year ago. Profit before tax grew 52% to ₹459 crore.
CFO exit clouds strong results
It seems that the surprise resignation of CFO Mody, announced along with the results, did not go down well with the Street. Mody had joined Suzlon in August 2021, and his term coincided with the sharp decline in the company's net debt from ₹6,700 crore to net cash of ₹1,620 crore as on 30 June.
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True, the CFO's importance cannot be undermined. But Suzlon's strong balance sheet also means that the role of the chief executive officer (CEO) is more crucial now to drive the company's strategic business growth.
During the earnings call, CEO J.P. Chalasani was asked about the existential threat to wind power, given that the evolution of battery energy storage systems can make solar power available round the clock. The CEO clarified that it is not possible to replace wind power entirely by storing solar power in a battery for later use, as that can put the electricity grid under pressure.
Also, the right comparison for economics should be either solar to wind or solar plus battery to wind plus battery. If solar plus battery is compared to wind, then wind should work out to be cheaper, as battery storage also has a cost. Battery energy storage cost increases the cost per unit of electricity by at least one rupee per unit irrespective of the source of the energy stored, said the CEO.
Note that the capital expenditure and operating expenditure for wind power plants is generally more than solar power. But these disadvantages of wind power plants are largely offset by the comparatively better capacity utilization, given that solar energy generation occurs only during the day.
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The ministry of new and renewable energy has notified the approved list of models and manufacturers in July, mandating domestic sourcing of about 75% of WTG components, including blades, towers, gearbox, generators, etc. This should boost the order inflow for players such as Suzlon and Inox Wind Ltd.
Note that Suzlon's order inflow--derived as the difference between closing and opening order book and then adding deliveries during the quarter to the figure--had peaked at 1,170 MW in Q2FY25. The stock price had also hit its all-time peak of ₹86 in September of that quarter. In Q1FY26, a sequential revival has been seen, wherein order inflow rose 38% to 780 MW, though far lower than the quarterly peak. It also helps that Suzlon has bagged a big order of 381 MW from Zelestra in the current quarter.
Suzlon is indeed India's leading listed WTG company, with an annual capacity of 4.5 GW, followed by Inox Wind with a 2.5 GW capacity. But Suzlon also trades at a large valuation premium over Inox at a price-to-earnings multiple of 25x versus 16x based on earnings estimates for FY27, as per Motilal Oswal Financial Services. It appears investors are factoring in the brighter picture well, for now.
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Economic Times
10 hours ago
- Economic Times
Suzlon Energy shares slide 11% in 4 days. Should you buy, sell or hold?
Brokerages were quick to weigh in after Suzlon's Q1 results, with three out of four major research houses maintaining bullish calls despite the recent correction. Suzlon reported a 7% YoY rise in consolidated net profit to Rs 324 crore for the June quarter, missing estimates due to a Rs 134 crore deferred tax charge. Revenue climbed 55% to Rs 3,117 crore on higher turbine volumes, while EBITDA surged 62% to Rs 599 crore with margins widening to 19.2%. Tired of too many ads? Remove Ads Q1 results weigh on sentiment Brokerages remain divided Tired of too many ads? Remove Ads Outlook anchored in domestic demand Tired of too many ads? Remove Ads Shares of Suzlon Energy extended their losing streak on Monday, falling as much as 5.7% to Rs 60.06 on the BSE and marking a four-day decline of 10.6%. The slide comes in the wake of the company's first-quarter results that fell short of expectations on profit after tax, coupled with news of the impending exit of the company's group chief financial stock is now trading below all eight of its key simple moving averages, spanning 5-day through 200-day charts, underscoring bearish sentiment across short-term and long-term horizons. The Relative Strength Index stands at 35.4, close to oversold territory, while the Moving Average Convergence Divergence at -0.9 remains below both centre and signal lines, reinforcing the June-quarter consolidated net profit rose 7% year-on-year to Rs 324 crore, but missed estimates due to a deferred tax charge of Rs 134 crore. Revenue surged 55% to Rs 3,117 crore, driven by higher turbine volumes, and EBITDA jumped 62% to Rs 599 crore with margins expanding to 19.2%. The company's order book grew for a 10th straight quarter, rising by another concerns deepened after Suzlon said Group CFO Himanshu Mody will step down effective August 31, with a successor to be named were quick to weigh in after Suzlon's Q1 results, with three out of four major research houses maintaining bullish calls despite the recent Oswal reaffirmed its 'Buy' rating and pegged a target price of Rs 80. The brokerage cited 'strong execution at 444MW' in Q1, a 62% jump year-on-year, along with a healthy 19% EBITDA brokerage said that while adjusted profit after tax missed estimates due to a Rs 1.34 billion deferred tax charge, prospects such as a potential 700MW deal with Tata Power and improving per-MW realisations supported the positive Securities echoed that optimism, retaining a 'Buy' call with a Rs 76 target. The brokerage noted Suzlon's 'highest-ever Q1 execution' and pointed to the 5.7GW order book, about 3.7 times FY25 execution levels, as a major strength. It highlighted the government's domestic sourcing mandate for wind components as a structural advantage for Suzlon, given its roughly 40% market share. JM Financial also stayed bullish, reiterating a 'Buy' rating with a Rs 78 target price. It credited operating leverage for the company's margin improvement, with the wind turbine generator segment's EBIT margin expanding to 15% from 10% a year brokerage, however, cautioned that while deliveries have been strong, installations have lagged in recent Institutional Equities struck a more cautious note. It kept a 'Hold' rating and trimmed its target to Rs 67, citing a weaker EPC mix that dented realisations. The brokerage also flagged the resignation of CFO Himanshu Mody as a potential short-term negative, stressing that he played a key role in Suzlon's read | GST Reforms 2.0: Full list of over 40 stocks that can benefit from PM Modi's Diwali promise Suzlon continues to guide for 60% growth in deliveries, revenue and EBITDA in FY26. Brokerages expect the company to benefit from India's 122GW wind capacity target by FY32 and a growing commercial and industrial segment that may require 78GW by challenges around land and grid connectivity remain, but bullish calls rest on Suzlon's dominant domestic market share, cost efficiencies and a swelling pipeline.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
10 hours ago
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Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel NEW DELHI: On 18-08-2025, Suzlon Energy shares were trading at Rs 57.62, reflecting a decline of 4.07% as of 01:11 PM (IST) on stock opened at Rs 61.5, achieving an intraday high of Rs 61.64 and a low of Rs 56.62. The shares have seen a 52-week high of Rs 86.04 and a low of Rs 46.15. By 01:11 PM (IST), a total of 127,993,633 shares had exchanged market capitalization of Suzlon Energy was reported at Rs 79,371.49 crore at the time of this FinancialsFor the quarter ending on 30-Jun-2025, Suzlon Energy posted consolidated net sales of Rs 3,179.58 crore, marking a decrease of 17.23% from the previous quarter's Rs 3,841.59 crore and an increase of 55.53% compared to Rs 2,044.35 crore from the same quarter last net profit for the latest quarter was recorded at Rs 324.32 crore, reflecting a 7.0% increase PatternAs of 30-Jun-2025, domestic institutional investors (DIIs) held an 8.63% stake in Suzlon Energy, while foreign institutional investors (FIIs) owned 23.02%, and promoters held 11.74%.Valuation RatioBased on BSE data, Suzlon Energy is trading at a price-to-earnings (P/E) ratio of 39.45 and a price-to-book (P/B) ratio of 13.52. A higher P/E ratio indicates that investors are willing to pay a premium for anticipated future growth, while the P/B ratio reflects the intrinsic value of the company, suggesting the price investors are willing to pay even in the absence of growth. Suzlon Energy Ltd. operates within the Power Generation - Wind relative strength index (RSI) for Suzlon Energy stock is currently at 31.2. The RSI ranges from 0 to 100, with values above 70 indicating overbought conditions and below 30 suggesting oversold conditions. Analysts advise that RSI should not be used in isolation for trading decisions, similar to how fundamental analysts should not rely solely on one valuation metric for buy or sell Suzlon EnergyEstablished in 1995, Suzlon Energy Ltd. is classified as a Large Cap company with a market capitalization of Rs 79,371.49 crore, operating in the Power ValueThe Beta value of Suzlon Energy, which gauges its volatility relative to the broader market, is currently at 2.62. Suzlon Energy Share Price ReturnsThe performance of Suzlon Energy shares has shown a return of -4.07% over the past day, -8.5% over the past week, -10.94% over the past month, -5.14% over the past three months, and -27.53% over the past year.
Time of India
10 hours ago
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Suzlon Energy shares slide 11% in 4 days. Should you buy, sell or hold?
Q1 results weigh on sentiment Brokerages remain divided Live Events Outlook anchored in domestic demand (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Suzlon Energy extended their losing streak on Monday, falling as much as 5.7% to Rs 60.06 on the BSE and marking a four-day decline of 10.6%. The slide comes in the wake of the company's first-quarter results that fell short of expectations on profit after tax, coupled with news of the impending exit of the company's group chief financial stock is now trading below all eight of its key simple moving averages, spanning 5-day through 200-day charts, underscoring bearish sentiment across short-term and long-term horizons. The Relative Strength Index stands at 35.4, close to oversold territory, while the Moving Average Convergence Divergence at -0.9 remains below both centre and signal lines, reinforcing the June-quarter consolidated net profit rose 7% year-on-year to Rs 324 crore, but missed estimates due to a deferred tax charge of Rs 134 crore. Revenue surged 55% to Rs 3,117 crore, driven by higher turbine volumes, and EBITDA jumped 62% to Rs 599 crore with margins expanding to 19.2%. The company's order book grew for a 10th straight quarter, rising by another concerns deepened after Suzlon said Group CFO Himanshu Mody will step down effective August 31, with a successor to be named were quick to weigh in after Suzlon's Q1 results, with three out of four major research houses maintaining bullish calls despite the recent Oswal reaffirmed its 'Buy' rating and pegged a target price of Rs 80. The brokerage cited 'strong execution at 444MW' in Q1, a 62% jump year-on-year, along with a healthy 19% EBITDA brokerage said that while adjusted profit after tax missed estimates due to a Rs 1.34 billion deferred tax charge, prospects such as a potential 700MW deal with Tata Power and improving per-MW realisations supported the positive Securities echoed that optimism, retaining a 'Buy' call with a Rs 76 target. The brokerage noted Suzlon's 'highest-ever Q1 execution' and pointed to the 5.7GW order book, about 3.7 times FY25 execution levels, as a major strength. It highlighted the government's domestic sourcing mandate for wind components as a structural advantage for Suzlon, given its roughly 40% market share. JM Financial also stayed bullish, reiterating a 'Buy' rating with a Rs 78 target price. It credited operating leverage for the company's margin improvement, with the wind turbine generator segment's EBIT margin expanding to 15% from 10% a year brokerage, however, cautioned that while deliveries have been strong, installations have lagged in recent Institutional Equities struck a more cautious note. It kept a 'Hold' rating and trimmed its target to Rs 67, citing a weaker EPC mix that dented realisations. The brokerage also flagged the resignation of CFO Himanshu Mody as a potential short-term negative, stressing that he played a key role in Suzlon's read | GST Reforms 2.0: Full list of over 40 stocks that can benefit from PM Modi's Diwali promise Suzlon continues to guide for 60% growth in deliveries, revenue and EBITDA in FY26. Brokerages expect the company to benefit from India's 122GW wind capacity target by FY32 and a growing commercial and industrial segment that may require 78GW by challenges around land and grid connectivity remain, but bullish calls rest on Suzlon's dominant domestic market share, cost efficiencies and a swelling pipeline.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
