Suzlon Energy Ltd.'s June-quarter earnings disappointed on profitability, but brokerages remain largely constructive on the renewable energy company's long-term prospects, arguing that temporary execution issues—not weakening demand—were behind the weaker-than-expected performance.
Suzlon Energy Q1 Results - Cons, YoY
- Net profit down 5.9% at Rs 305 crore vs Rs 324 crore YoY
- Revenue up 22.3% at Rs 3,830 crore vs Rs 3,132 crore YoY
- EBITDA down 0.5% at Rs 596 crore vs Rs 599 crore YoY
- EBITDA margin at 15.6% vs 19.1% YoY
Brokerage Views
Centrum Broking remained the most bullish, reiterating its 'Buy' recommendation while trimming its target price marginally to Rs 74 from Rs 75, implying about 53% upside.
The brokerage said the June quarter was seasonally weak but maintained that Suzlon's strong order pipeline, improving execution visibility and net cash balance sheet support its long-term growth story. It continues to expect revenue and EBITDA to grow at more than 20% CAGR between FY26 and FY29.
Motilal Oswal Financial Services maintained its 'Buy' rating with a target price of Rs 65, implying around 35% upside. The brokerage described the June quarter as a "soft quarter but on track for growth."
While revenue, EBITDA and adjusted profit missed estimates because of lower wind turbine contribution margins and supply-chain disruptions linked to Middle East geopolitical tensions, it highlighted a 6.1 GW order book, management's confidence in securing repowering orders before FY27-end, and guidance to maintain 17-18% EBITDA margins during FY27.
Nuvama Institutional Equities retained its 'Hold' rating but cut its target price to Rs 51 from Rs 56, implying a modest 6% upside from the current market price. The brokerage said the quarter was weaker than expected, with 506 MW of deliveries falling short of estimates and EBITDA margins coming in at 15.5% versus its 17.9% forecast.
It attributed the miss to temporary logistics disruptions arising from geopolitical tensions, strategic investments under the Suzlon 2.0 initiative and a higher EPC mix. Nuvama lowered its FY27 and FY28 earnings estimates by 13% and 10%, respectively.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
