
Shares of Suzlon Energy Ltd have attracted upward target revisions from multiple brokerages following its March quarter results. The renewable energy solutions provider reported a beat on Ebitda and profit, and its management’s commentary was all positive, aligning with the market expectations. The target prices of a couple of brokerages suggested up to 27 per cent upside potential on the counter.
Motilal Oswal Financial Services (MOFSL) said Suzlon Energy delivered a strong performance, with deliveries and Ebitda exceeding its expectations by 15 per cent and 38 per cent, respectively. The management has maintained a positive stance, guiding for at least a 60 per cent year-on-year improvement in deliveries, revenue, Ebitda, and adjusted PAT for FY26.
“This guidance is broadly in line with our/street estimates and highlights management’s confidence in the sector,” the domestic brokerage noted.
On Thursday, the renewable energy solutions provider reported a 364 per cent year-on-year rise in March quarter profit, supported by a 73.20 per cent surge in sales. In response, Nuvama Institutional Equities revised its FY26–27 estimates, factoring in 5–7 per cent higher sales and 8–15 per cent better Ebitda, while also making tax-related adjustments.
“We remain long-term positive on Suzlon Energy; retain ‘HOLD’ with a target price of Rs 68 (from Rs 61) at 40 times (from 35 times) FY27E (WTG + F&F EPS) plus DCF of O&M,” Nuvama said.
MOFSL set a target price of Rs 83 for Suzlon Energy, applying a P/E multiple of 35 times to its FY27E EPS. This is slightly above its two-year forward historical average P/E of 27 times, which the brokerage said reflects improving execution and earnings visibility.
While no FY27 financial guidance was provided, Suzlon’s management expects India’s wind installations to rise to 6GW in FY26, 7–8GW in FY27, and 9GW in FY28, up from 4.2GW in FY25.
Suzlon Energy’s stock closed at Rs 65.44 on Thursday, marking a 16 per cent gain over the past month and a 44 per cent rise over the last year.
In Q4, Suzlon posted a consolidated net profit of Rs 1,181 crore, compared with Rs 254 crore in the same quarter a year ago. This includes a deferred tax gain of Rs 600 crore. Quarterly sales jumped to Rs 3,773.50 crore from Rs 2,179.20 crore.
The company executed 573MW in Q4FY25, beating estimates of 475MW. Its operating profit margin improved to 18.3 per cent, compared to an estimate of 14.7 per cent, driven by a higher WTG mix and operating leverage. This led to a 25 per cent beat on Nuvama’s PBT estimates, despite higher depreciation and interest costs from the Renom acquisition.
“However, deferred tax asset creation (Rs 640 crore) drove 2.7 times PAT beat; this DTA effectively advances benefit of lower tax incidence to FY25 instead of FY26 with limited impact on FY27 estimates,” Nuvama explained.
The brokerage also noted that Q4FY25 order inflow was under 100MW due to the cancellation and truncation of some orders, leaving Suzlon with a 5GW order book (spanning 24 months), ensuring revenue visibility.
“We reckon Suzlon Energy shall remain a key beneficiary of the rising mix of FDRE/RTC/Hybrid in GoI tenders. Suzlon also remains a key player in C&I (55 per cent of OB) and PSU segments, and benefits from a duopolistic market in EPC+WTG capabilities, maintaining an overall market share of over 30 per cent,” it added.