Suzlon Energy Execution at record pace; stable margin; maintaining a Buy
Suzlon Energy is India’s leading wind turbine OEM, backed by a record order book of 6.2GW. With industry installation rising by 9-10 GW/year by FY28, we expect the company to deliver 2.6/3.4/3.9GW in FY26/27/28. Strong execution pipeline and ~7GW land under development underscores future execution capabilities. Given its consistent delivery and strong sector tailwinds, we maintain a BUY rating on the stock, valuing it at 40x Sep’27 EPS.
Record 2Q deliveries drive quarterly show. Revenue/EBITDA/PAT rose 84%/145%/166% y/y to Rs38.7/7.2/5.6bn; ahead of estimates; (vs. ARe of Rs29.7/5.3/2.9bn and Ce of Rs30.9/4.8/2.9bn), largely due to higher WTD deliveries (565MW vs. ARe of 400MW). FY26 growth guidance of ~60% y/y is unchanged
Robust operational momentum. Wind turbine deliveries were 565MW in Q2 (vs. 256MW in FY25), with Rs4.8bn EBIT (vs. Rs428mn in Q2 FY25). Operations & Management EBIT stood at Rs1.5bn (vs. Rs1.9bn in Q2 FY25), and the portfolio grew to 15.4GW. Foundry and Forgings EBIT stood at Rs207mn (vs a negative EBIT of Rs6mn in Q2 FY25).
Outlook and Valuation. Suzlon is well-placed to benefit from India’s accelerating wind-energy buildout, aided by a record 6.2GW order book, strong EPC integration and clear policy support. Execution has gained pace with 565MW delivered in Q2 FY26 and >1,865MW under execution. Management reiterates ~60% y/y growth guidance for FY26. ~7GW land under development, greater site control and disciplined WC management reduce execution risks and strengthen margin visibility, with EBITDA margin is likely to remain at 17-19%. We expect 34.8%/38.1%/13.8% CAGR in revenue/EBITDA/PAT over FY25–28. The stock trades at a PE of 31.8x/26.8x FY27/FY28 our revised EPS estimates. Given consistent execution and strong sector tailwinds, we maintain a BUY rating on the stock with a higher 12-mth TP of Rs82 (from Rs81 earlier), valuing it at 40x Sep’27 EPS.
