Suzlon Energy vs Inox Wind: Both underperforming in 2025, which one is better?

Economic Times

09-07-2025

Suzlon Energy and Inox Wind are charting markedly different paths in India's resurgent wind energy sector, but both stocks have stumbled in 2025. Year to date, Suzlon shares are up a modest 1%, while Inox Wind has dropped 10.5%. The divergence, however, extends far beyond stock price.
ADVERTISEMENT Suzlon is decisively outpacing its peers across six critical areas—project execution, order book visibility, balance sheet strength, profitability metrics, valuation, and ESG positioning—cementing its edge as investor sentiment pivots towards scale, stability and proven delivery.
The contrasting trajectories come amid renewed investor interest in India's wind segment, buoyed by the government's target of 500 GW renewable capacity by 2030 and a shift toward hybrid power tenders.
uzlon executed 2,500 MW of projects in FY25, more than three times Inox Wind's 705 MW, while holding a 5.6 GW order book and a net cash position of Rs 1,943 crore. 'Suzlon's execution of 2,500 MW in FY25 demonstrates significantly higher operational throughput,' said Bhavik Joshi, Business Head at INVasset PMS. 'Its order book and liquidity suggest stronger financial flexibility as it scales up to 3,100 MW by FY27.'Sunny Agrawal, Head of Fundamental Equity Research at SBI Securities, said, 'Suzlon is better placed given its size and decades of experience backed by execution capabilities. Suzlon is to further execute 2.5 GW in FY26 and 3 GW plus in FY27.'
ADVERTISEMENT By contrast, Inox Wind is still in the early innings of a turnaround. It reported 1.5 GW of fresh order inflows in FY25 and reduced liabilities by Rs 2,050 crore through a merger with Inox Green. Its order book stood at 3.2 GW at year-end. While this marks progress, analysts believe Suzlon's financial and operational readiness sets it apart.'Suzlon has reduced its debt from Rs 13,000 crore plus in FY20 to less than Rs 500 crore as of FY25. The company is now net worth positive versus 10 years of negative net worth,' Agrawal said.
ADVERTISEMENT Suzlon's profitability has rebounded strongly. The company posted a Profit After Tax of Rs 2,072 crore in FY25, boosted by a Rs 638 crore deferred tax gain, with EBITDA of Rs 1,857 crore. Its return metrics sharply outpaced its peers: ROE stood at 41.3% and ROCE at 32.4%, compared to Inox Wind's ROE of 13.2% and ROCE of 11.5%.'Despite Inox Wind's faster revenue growth, Suzlon's superior capital efficiency reflects its mature execution framework and operating leverage,' said Joshi. 'These profitability ratios are critical markers of long-term sustainability.'
ADVERTISEMENT Valuation-wise, Suzlon trades at a P/E of 47.2 and a P/B of 24.81, while Inox Wind commands a higher P/E of 55.9 but a lower P/B of 11.38. 'Suzlon's lower P/E suggests more earnings visibility despite its premium on book value,' said Joshi. 'From a valuation discipline standpoint, Suzlon appears more reasonably valued on earnings power.'Agrawal echoed the view, noting that 'Suzlon may do better than Inox' on valuation and outlook, given its cleaner balance sheet and five-year loss reversal.
ADVERTISEMENT Suzlon is also gaining favour among ESG-conscious investors. The company is targeting net-zero Scope 1 and 2 emissions by 2035 and raised capital via a QIP in 2023. Inox Wind has yet to outline a comparable ESG roadmap, limiting its appeal to climate-aligned institutional capital.'Being part of the renewable power segment, the ESG performance gets a better score,' said Agrawal. 'We don't expect a significant capex plan for Suzlon and hence may not require fresh capital in the near term.'Vijay Agrawal, Managing Director of investment banking at Equirus, said, 'Suzlon is the story of revival through discipline and delivery. Inox is the story of reinvention through strategic clean-up and growth bets.'Suzlon shares have risen 19.4% over the past year and gained 904% in the last three years. In the past three months alone, the stock is up 27%. From a technical standpoint, the stock is trading above all eight of its key simple moving averages, with an RSI of 55.3, suggesting bullish momentum.Inox Wind shares, by comparison, are up nearly 12% over one year and 762% over three years, but down over 10% in 2025. The stock is currently trading below four of its eight key SMAs and shows a bearish MACD signal, with an RSI of 50.7.Analysts note that Inox Wind's client disclosures—NTPC, CESC, and Hero Future Energies—improve investor comfort, but Suzlon's scale and consistency remain compelling. 'Suzlon's larger order book suggests diversified demand across private and government-linked entities,' said Joshi. 'While client quality is vital, execution, delivery timelines, and payment efficiency ultimately define pipeline strength.'
Looking ahead
Both companies are positioned to benefit from India's wind energy push, but the near-term investor tilt is clear.'All renewable players could be beneficiaries, but Suzlon can be a winner in the long term due to its ability to execute large projects, strong execution capabilities, much clearer balance sheet, capacity addition, and strong industrial tailwind,' said Agrawal of SBI Securities.Or, as Equirus' Vijay Agrawal summed up that 'if you want stability and scale today, Suzlon is your pick. If you believe in comeback stories and can stomach a few bumps, Inox might just surprise you.'
Also read | Suzlon Energy gets 'no adverse observations' from NSE, BSE for merger with subsidiary
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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