Suzlon's shares decline to Rs. 60.4 following the release of Q1 FY26 results and the departure of the Chief Financial Officer
Suzlon, a leading wind energy solutions provider, has reported a robust performance in Q1 FY26, with the company securing fresh orders totaling 1 GW during this period. This significant achievement has contributed to a 7% increase in consolidated net profit to Rs 324 crore and a 55% jump in revenue to approximately Rs 3,117-3,132 crore.
The company delivered a record 444 MW in Q1 FY26, marking a notable milestone in its growth trajectory. EBITDA surged about 62% to close to Rs 599 crore, giving a margin near 19%.
Despite the planned departure of the Group CFO, Himanshu Mody, by August 31, analysts remain largely bullish on Suzlon shares. Major brokerages like Motilal Oswal, ICICI Securities, and JM Financial continue to highlight Suzlon’s robust execution, expanding order book, and favourable government policies, expecting sustained earnings momentum.
ICICI Securities, for instance, retained a “Buy” rating with a target price of Rs 76, citing Suzlon’s 60% growth guidance for FY26, strong order pipeline, and domestic manufacturing advantage due to policy mandates increasing reliance on Indian OEMs where Suzlon holds a significant market share.
However, some analysts, such as Nuvama Institutional Equities, have issued a more cautious "Hold" due to concerns over a lower EPC mix affecting realizations, suggesting limited upside without improvement in project execution share.
Despite a recent 11% share price slide over four days, the stock is trading near oversold technical levels, which some see as a buying opportunity given the strong fundamental turnaround and growth outlook.
Suzlon's balance sheet shows marked improvement, with a net cash balance as of June 30, 2025, of around Rs. 1,620 crore. The stock of Suzlon is among the most actively traded on Indian exchanges, with daily trading volumes typically spanning tens to hundreds of millions of shares.
Key risks for Suzlon include potential slippage between deliveries and commissioning timelines, a slowdown in the tender pipeline, cost pressures from raw materials or logistics, and leadership uncertainty due to the CFO’s resignation. Three execution-related factors for Suzlon that merit close observation are: the conversion of deliveries into actual installations, the pace of new orders compared to deliveries, and policy developments in hybrid and round-the-clock energy auctions, and reforms under ALMM.
In summary, most major brokers maintain buy or bullish calls on Suzlon shares, expecting benefits from India's wind energy targets and Suzlon’s accelerating deliveries, though some caution exists related to near-term execution mix and the CFO transition.
- The strong Q1 FY26 performance of Suzlon in the wind energy industry, coupled with a surge in finance earnings, has attracted the attention of several major brokerages such as ICICI Securities, Motilal Oswal, and JM Financial.
- Suzlon's expansion in the energy sector, demonstrated by its 1 GW of fresh orders in Q1 FY26, has potential investors with a cautious outlook, such as Nuvama Institutional Equities, considering a "Hold" until improvements in project execution are observed.
