Suzlon Energy Eyes 60% Growth, Led By Strong Wind Power Demand

Suzlon Energy Ltd. expects a 60% growth across the board in FY26, backed by a strong demand for wind power, according to Chief Executive Officer JP Chalasani.

"For the first time, we gave guidance that we will grow by 60% across the board," he told NDTV Profit in a conversation on Friday. "Shows that internally, whatever work we have done, we now have that confidence that we'll continue to deliver. I think it's more signalling towards that, rather than we're going to be 50%, 60%, 70%."

Chief Financial Officer Himanshu Mody explained the company’s target for turbine deliveries.

"We have done 1.55 gigawatts in deliveries this year. There's a difference between delivery and the turbine commission," he said. "Expecting for FY26, we would do at least 60% growth over FY25, which pegs us at about 2.4–2.5 GW of deliveries in FY26."

Mody underscored the company's commitment to maintaining margin, with the wind-turbine-generator division expected to contribute a 23% margin. The consolidated operating margin for the company will be around 17%.

"The more the wind turbine generator business keeps growing, our consolidated margins would come under pressure," Mody said. "But despite that, we're maintaining that we would have a 17% operating margin at a consolidated level, which means that the operating synergies are now clearly coming into play."

Suzlon's optimism extends beyond its own performance to the broader wind energy sector in India.

Chalasani projected that India will achieve over 6 GW of wind capacity in FY26, with annual installations potentially reaching 8 GW to 9 GW in the coming years to meet the national target of 100 GW by 2030. "Growth rates are going to be significantly steeper from here to 2030," he noted. 

The CEO dismissed concerns about falling power exchange prices during solar generating hours, which have occasionally hit zero due to oversupply. He explained that this is limited to specific times of the day. Peak evening hours still face significant power shortages, making wind power generation crucial.

The company plans to deploy its cash reserves strategically, focusing on capital expenditure for manufacturing and selective mergers and acquisitions.

Chalasani attributed the company's Q4 success to efforts over the past 24 months to strengthen its financial position. Suzlon Energy has transformed its balance sheet from being debt-laden to holding over Rs 2,000 crore in cash, he said. "It is not a one-off type of result for quarter four."