The Securities and Exchange Board of India has imposed a 15.95 crore penalty on Suzlon Energy Ltd. for alleged misstatements in its financial accounts, as per an official circular on Friday.
The market regulator has alleged that Suzlon used intra-group transactions to inflate its profits, net worth and overall financial position.
SEBI flagged a Rs 1,922.92 crore gain booked by the company from the transfer of its OMS business to a subsidiary, in addition to around Rs 1,300 crore being routed through circular transactions between Suzlon group entities.
The gain on sale of the division aggregating to Rs 1,922.92 crore had been shown under exceptional items in FY2013-14, the circular outlined, adding that this was done in different layers; first a payment of Rs 700 crore was made through bank accounts.
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Then, the balance Rs 1,300 crore was further divided into two payments of Rs 900 crore and Rs 400 crore respectively. The Rs 900 crore was recorded as Rs 150 crore six times and the rest as four records of Rs 100 crore each. These 'false records misstated the revenue and turnover.'
The regulator also highlighted another accounting gain of Rs 829.78 crore arising from a subsequent internal transfer of assets within the group.
Suzlon Q4FY26
Suzlon Energy Ltd.'s net profit for the fourth quarter of FY26 declined 5.8% year-on-year. The company reported a consolidated bottom-line of Rs 1,114 crore compared to Rs 1,182 crore in the year-ago period.
However, revenue from operations surged 45% to Rs 5,494 crore from Rs 3,790 crore in the corresponding quarter of the last fiscal.
On the operational front, earnings before interest, taxes, depreciation and amortisation climbed 39% to Rs 965 crore from Rs 694 crore in Q4 of fiscal 2025. Ebitda margin though, was under some pressure as it narrowed from 18.3% to 17.6%.
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Suzlon Share Price
Suzlon's stock settled 1% lower at Rs 57 apiece on the NSE, this compared to a 1.5% decline in the benchmark Nifty index on Friday.
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