Suzlon Energy Q4 Review: Investec Remains Bullish After Profit Jumps Nearly Fivefold

Suzlon Energy Ltd. received a 'buy' call from research firm Investec after the company reported a nearly fivefold surge in its fourth-quarter net profit—majorly due to a deferred tax credit, but also driven by solid revenue and operating income growth. The brokerage maintained its Rs 70 price target on the stock.

"Suzlon executed 573MW orders in Q4FY25 vs 273MW YoY, reaching 1.55GW in FY25 vs 0.7GW YoY. This led to a robust 73%/94% YoY rise in revenue (Rs38bn) and EBITDA (Rs6.9bn), with a healthy 18.3% margin in Q4. PAT, however, increased 420%, benefiting from adjustment of deferred tax of Rs 6.3bn in Q4FY25," stated Investec in its note.

The company's order book and execution remained sturdy and is likely to remain strong in the future, Investec said. "Suzlon's order book has increased to 5.0GW as on FY25, up from 2.9GW YoY (5.5GW as of May'25) for execution over the next 2-3 years, with annual order intake projected at 3-3.5GW."

The draft notification on RLMM norms, to mandate domestic procurement of wind turbine component is likely to supplement Suzlon's growth even further, according to the brokerage.

It gave the company an execution target of 2.6GW for fiscal 2026 and 3.3GW for fiscal 2027, and projected that Suzlon will register "revenue/PAT CAGR of 49%/26% over FY25-FY27 on the back of robust order pipeline, leadership position in wind market, and attainment of net cash status leading to yielding healthy returns."

For the whole fiscal, Suzlon Energy's profit rose to Rs 2,072 crore from Rs 660 crore in FY24 and revenue from operations jumped 73%, while earnings before interest, tax, depreciation and amortisation—a measure of core corporate profitability—more than doubled, as per financial results released on Thursday.