- Suzlon shares fell over 4% intraday, extending a nearly 20% loss in a month
- Q1 revenue rose 22.3%, but net profit dropped 5.9% with shrinking EBITDA margins
- Brokerages cut FY27 and FY28 earnings estimates after weaker-than-expected margins
Suzlon Energy Ltd. shares extended their recent decline on Wednesday, falling more than 4% intraday to Rs 45.93, taking the stock's losses to nearly 20% over the past month. The sharp correction has come despite brokerages continuing to see meaningful upside, suggesting investors are focused on near-term earnings concerns rather than the company's long-term growth story.
Here's what's weighing on the stock.
1. Q1 Earnings Disappointed On Profitability
The biggest trigger was Suzlon's June-quarter earnings. While revenue grew a healthy 22.3% year-on-year to Rs 3,830 crore, net profit declined 5.9% to Rs 305 crore. More importantly, operating profitability weakened, with EBITDA remaining broadly flat at Rs 596 crore and the EBITDA margin shrinking to 15.6% from 19.1% a year earlier.
The weaker-than-expected margins raised concerns that execution costs and project mix may continue to pressure profitability in the near term.
2. Margin Miss Triggered Earnings Estimate Cuts
Several brokerages lowered earnings estimates after the results. Nuvama Institutional Equities cut its FY27 and FY28 EPS estimates after describing the quarter as weaker than expected, citing lower deliveries, logistics disruptions linked to geopolitical tensions and a higher EPC mix.
Even brokerages that retained Buy ratings acknowledged the margin miss would delay earnings recovery.
3. Investors Locking In Gains After a Stellar Rally
Suzlon has been one of the market's biggest wealth creators over the past few years, making it vulnerable to profit booking whenever earnings disappoint.
The latest correction has been sharp. The stock has fallen from a one-month high of Rs 58.90 to Rs 46.07, wiping out nearly 20% of its value in just four weeks. Wednesday's decline alone took the stock to an intraday low of Rs 45.93, around 4% below the previous close.
4. Technical Indicators Remain Weak
The correction has also pushed Suzlon below its 50-day, 100-day and 200-day moving averages, indicating that short-term momentum remains negative. The stock is now down more than 12% in 2026 and over 25% during the past year, highlighting the extent of the recent weakness.
5. Analysts Remain Bullish Despite The Selloff
Despite the correction, the Street hasn't turned negative on Suzlon's long-term outlook. Brokerages continue to point to the company's healthy 6.1 GW order book, favourable renewable energy demand, expanding manufacturing capacity and the Suzlon 2.0 strategy as reasons to stay constructive.
The most bullish target price currently stands at Rs 74, implying more than 50% upside from current levels, while even more cautious brokerages believe the recent pressure stems from execution-related issues rather than slowing demand.
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