Prabhudas Lilladher has maintained its bullish stance on Suzlon Energy, recommending a buy rating with a target price of ₹56 in its research report dated July 29, 2026. The brokerage noted that while Suzlon Energy reported robust WTG deliveries of 506MW in Q1FY27, driving revenue growth ahead of expectations through higher realisation, profitability missed estimates due to richer EPC mix and upfront investments for Suzlon 2.0, which resulted in margin compression. However, looking ahead, Prabhudas Lilladher expects the company's operating leverage to improve as execution accelerates through H2. The brokerage has trimmed its EBITDA estimate for FY27/28 but maintained its BUY rating, valuing the stock at 15x FY28e EBITDA.
Suzlon Energy delivered mixed first-quarter results with consolidated revenue from operations rising 22% YoY to ₹3,819 crore compared to ₹3,117 crore last year, driven by strong execution and record deliveries. However, net profit declined 6% to ₹305 crore compared to ₹324 crore in the same quarter last year, and missed analyst estimates. EBITDA margin contracted to 15.5% from 19.1% in Q1 FY26, representing a 350 basis points narrowing. JM Financial noted that this led to an Ebitda margin declining to 15.5 per cent, "indicating the classic leadership dilemma of growth versus profitability." The margin pressure was attributed to temporary logistics disruptions from geopolitical developments, strategic investments, and changes in project scope and business mix, as per CFO Rahul Jain. As per ET Now, the company reported nearly 6% fall in net profit at ₹305 crore for the June quarter due to logistic disruptions arising from geopolitical situation, investments and change of project mix. During the earnings call, Suzlon Energy flagged that 10% to 20% of deliveries that were delayed due to the geopolitical disruptions in West Asia, is likely to recover in the coming quarters.
Despite profitability challenges, Suzlon Energy achieved significant operational milestones with highest-ever first-quarter deliveries of 506 MW, up 14% year-on-year from 444 MW, while project commissioning surged more than 2x to 269 MW compared to the year-ago period. The company booked around 1 GW of new orders during the quarter, including two major DevCo-led EPC orders from Tata Power and Waaree Group, taking its cumulative order book to roughly 6.1 GW. The strong order book provides significant revenue visibility for upcoming quarters, with 84% of orders coming from the public sector and commercial and industrial (C&I) segment. The share of EPC business in Suzlon's overall topline increased from 22% last year to 32% at the end of this quarter, in-line with the company's strategy. Companies such as ACC, Adani Group, Aditya Birla Group, ITC, HPCL, Juniper Green Energy, NTPC Green Energy, and ONGC feature among Suzlon's clientele. Girish Tanti, Vice Chairman of Suzlon Group, stated: "Suzlon is stronger than ever, and we're leveraging this to invest in our future. Suzlon 2.0 is underway as we build four strategic growth engines with wind-led RE solutions, strengthen our technology, and focus on long-term customer partnerships."
Revenue for the Renewable Energy Solutions business grew to ₹3,174 crore from ₹2,494.57 crore last year, registering 27.21% year-on-year growth, while Renewable Energy Asset Management Services revenue increased to ₹526 crore from ₹584.45 crore, up 10.04% year-on-year. Foundry & Forging business revenue declined to ₹125.86 crore from ₹146.49 crore last year, down 14.1% year-on-year. The Others segment contributed ₹2.20 crore in revenue during the quarter, compared with ₹1.61 crore in the same period last year. The company doubled its rotor blade manufacturing facility's capacity in Jaisalmer to 1,260 MW from 630 MW by adding two additional manufacturing lines, while execution progressed on its 1.2 GW NTPC project in Gujarat. According to Motilal Oswal, the wind turbine generator (WTG) contribution margin declined to 23.4%, compared with 26% in Q1 FY26 and 24.5% in Q4 FY26, primarily because of changes in the project scope mix. JM Financial noted that solar dominated earlier auctions, but its share in the company has steadily declined as tenders increasingly favour RTC/FDRE requiring vanilla wind or wind as a component.
The company is accelerating its Suzlon 2.0 strategy, reorganising the business into four verticals—RE Tech, RE DevCo, RE Projects and RE Asset Management—to capture long-term growth opportunities in India's expanding renewable energy market. During the quarter, Suzlon launched its S175 (5 MW) wind turbine platform in India and Europe and secured its first domestic order for the product. The company also continued expanding manufacturing capacity by doubling rotor blade production at its Jaisalmer facility, which now spreads over 30 acres and will employ more than 1,200 people. This facility has the capability to make both S144 and S175 rotor blades. Girish Tanti, Vice Chairman of Suzlon Group, stated: "Suzlon 2.0 is underway as we build 4 strategic growth engines with wind-led RE solutions, strengthen our technology, and focus on long-term customer partnerships." The management has guided for the second half to be stronger with an H1 / H2 split of 35% to 40% / 60% to 65% respectively, with Suzlon Energy's margins narrowed during the June quarter, which the management also attributed to one-time investment costs, and a shifting mix to EPC, along with lower operating leverage. The company has now projected its EBITDA margins to be between 17% to 18% for this year, compared to 18% in financial year 2026, with capex estimates for the year will be ₹700 crore, which does not include the ₹500 crore investment towards DevCo.
Following the earnings announcement, several brokerages lowered earnings estimates after the results, with Nuvama Institutional Equities cutting its FY27 and FY28 EPS estimates after describing the quarter as weaker than expected, citing lower deliveries, logistics disruptions linked to geopolitical tensions and a higher EPC mix. Nuvama retained its "Hold" rating on the stock but cut its price target to ₹51 from ₹56 earlier, while UBS maintained its "Buy" rating on the stock while lowering its price target to ₹66 from ₹72. According to CNBC-TV-18, Nuvama also reduced its earnings per share (EPS) estimates for 2026-27 and 2027-28 by 13 percent and 10 percent, respectively, after revising its margin assumptions and factoring in higher depreciation and interest costs. Despite the recent correction, brokerages continue to remain bullish on Suzlon's long-term outlook, with the most bullish target price currently standing at ₹74, implying more than 50% upside from current levels. The correction has also pushed Suzlon below its 50-day, 100-day and 200-day moving averages, indicating that short-term momentum remains negative. Despite recent volatility, the stock has jumped 177% in three years and 718% in five years, demonstrating strong long-term performance. The company maintains a market capitalisation of less than ₹66,000 crore and continues to benefit from India's expanding renewable energy sector.
