Suzlon Energy Surges 13% Following Robust Q4 Performance, According to Motilal
Shares of Suzlon Energy experienced a notable surge of 13.6%, reaching Rs 74.30 on the Bombay Stock Exchange (BSE) on Friday. This increase followed a report from brokerage firm Motilal Oswal, which raised its target price for the company to Rs 83 and reaffirmed a โbuyโ rating. The positive outlook is attributed to Suzlon’s impressive fourth-quarter earnings and a promising forecast for fiscal year 2026. By 12:45 PM, the stock was trading at Rs 71.04, reflecting an 8.59% increase for the day.
Strong Financial Performance
Suzlon Energy’s recent quarterly results significantly surpassed analyst expectations, driven by robust deliveries of wind turbine generators (WTGs) and improved profit margins. In the fourth quarter of fiscal year 2025, the company reported a staggering 365% year-on-year increase in consolidated net profit, amounting to Rs 1,182 crore, compared to Rs 254 crore in the same quarter the previous year. Revenue from operations also saw a substantial rise of 73%, reaching Rs 3,773 crore. On a sequential basis, net profit grew by 205%, while revenue increased by 27%.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at Rs 690 crore, marking a 94% year-on-year increase, with the EBITDA margin expanding to 18.4%. Notably, the earnings included a deferred tax gain of approximately Rs 600 crore. The WTG segment performed exceptionally well, with revenue more than doubling to Rs 3,142 crore and EBIT rising over fivefold to Rs 420 crore.
Impressive Growth in Deliveries
During the quarter, Suzlon delivered 573 megawatts (MW) of wind energy capacity, bringing the total deliveries for fiscal year 2025 to 1,550 MW, which represents a remarkable 118% increase from the previous year. For the entire fiscal year, the company reported a 67% increase in revenue, totaling Rs 10,851 crore, and a 214% rise in net profit, reaching Rs 2,072 crore. The EBITDA for the year was up 81% at Rs 1,857 crore, bolstered by a significant improvement in the contribution margin from the WTG segment, which exceeded 23%.
As of May 2025, Suzlon’s order book stood at 5,555 MW, including 1,500 MW from NTPC. The company successfully installed 336 MW in FY25, with an additional 371 MW ready for commissioning. This strong performance underscores Suzlon’s growing presence in the renewable energy sector.
Positive Market Outlook
Motilal Oswal highlighted the strengthening momentum in the wind energy sector as a key driver for Suzlon’s growth. The brokerage firm projects that India’s wind energy installations are expected to reach 6 GW in fiscal year 2026, with annual installations of 7 to 9 GW anticipated over the next two years. Suzlon is well-positioned to capitalize on this expansion, thanks to its robust execution capabilities.
Furthermore, the early implementation of local content-related draft notifications could serve as a significant catalyst for the stock’s performance. Motilal Oswal values Suzlon’s stock at a forward price-to-earnings ratio of 35 times the estimated earnings for fiscal year 2027, slightly above its historical average. This valuation reflects increased earnings visibility and positive execution momentum, further enhancing investor confidence in the company’s future prospects.
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