Suzlon Energy Share Price Surges on Strong Q4 Results and Upbeat Outlook
| 2025-05-30
Suzlon stock has surged 44% in the last three months and 55% over the past year.
Suzlon Energy shares rose 13% after reporting a 364% surge in Q4 profit. Strong project execution, tax gains, and a robust outlook boosted investor confidence.
Suzlon Energy shares climbed sharply on Friday after the company reported a fourfold increase in quarterly profit, driven by tax gains and improved execution, prompting a surge in investor interest.
Shares of India-based renewable energy firm Suzlon Energy Ltd rose by as much as 13% on 30 May, after the company posted a consolidated net profit of ₹1,181 crore ($142 million) for the fourth quarter ending 31 March 2025—a 364% year-on-year increase. The significant jump was largely attributed to an exceptional deferred tax gain of ₹600 crore.
The company's total revenue from operations also increased 73.2% to ₹3,773.5 crore in the January–March quarter, compared with ₹2,179.2 crore in the same period last year. The announcement led Suzlon’s share price to rise to ₹74.30 in early trade on the National Stock Exchange of India (NSE), before settling slightly lower during the day.
Exceptional Gain Boosts Bottom Line
Suzlon’s latest earnings reflect strong operational execution and favourable tax accounting. The deferred tax asset—recognised earlier than expected—played a significant role in boosting profitability. According to brokerage firm Nuvama Institutional Equities, this one-time benefit contributed to a 2.7 times beat in profit after tax (PAT), although it is not expected to significantly alter estimates for future years.
In comparison, the company reported a net profit of ₹254 crore in the same quarter a year earlier. For the full financial year 2024–25, Suzlon’s consolidated net profit more than tripled to ₹2,072 crore, up from ₹660 crore the previous year.
Operating metrics also showed improvement. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) nearly doubled to ₹677 crore, while the EBITDA margin rose to 17.94% from 15.62% year-on-year.
Project Execution Ahead of Estimates
The company executed 573 megawatts (MW) of wind energy projects in the fourth quarter, exceeding analysts’ expectations of 475MW. This strong performance contributed to a higher-than-expected top line and improved operating margins, despite increased depreciation and financing costs related to the Renom acquisition.
Brokerages noted that while revenue exceeded projections by only a small margin due to a lower share of higher-margin engineering, procurement, and construction (EPC) contracts, the volume delivery itself was a clear indicator of Suzlon’s execution strength.
Motilal Oswal Financial Services stated that Suzlon’s deliveries and EBITDA surpassed expectations by 15% and 38% respectively, noting that the management maintained a positive outlook for future quarters.
Market Response and Analyst Reactions
Following the earnings release, several analysts revised their forecasts and target prices. Morgan Stanley retained an ‘overweight’ rating with a target price of ₹77 per share. Motilal Oswal raised its target to ₹83, citing improved execution visibility and continued earnings growth.
Nuvama Institutional Equities maintained a ‘hold’ rating, but raised its target to ₹68 from ₹61, citing upward revisions in its FY26 and FY27 estimates. The firm expects 5–7% higher sales and an 8–15% improvement in EBITDA during that period.
Suzlon’s stock has gained 44% over the past year and 16% in the last month alone, reflecting growing investor confidence in the company and the broader renewable energy sector.
Outlook and Challenges Ahead
Despite the strong performance, Suzlon’s order inflow for Q4 remained below 100MW, partly due to cancellations and order truncations. However, the company maintains an order book of 5 gigawatts (GW), which is expected to be executed over the next 24 months, providing substantial revenue visibility.
Analysts expect Suzlon to benefit from India’s increasing focus on renewable energy, particularly through government tenders that emphasise firm and dispatchable renewable energy (FDRE), round-the-clock (RTC) power, and hybrid energy models.
The company holds a strong presence in both the commercial and industrial segments—accounting for 55% of its order book—and in the public sector, supported by its role as one of only two major players in India’s wind EPC and turbine manufacturing sector. Its current market share in the wind turbine segment is estimated at over 30%.
Management has projected at least 60% year-on-year growth in deliveries, revenue, EBITDA, and adjusted PAT for FY26. While guidance for FY27 remains unspecified, industry analysts forecast steady growth in India’s wind installations to 6GW in FY26, rising to 9GW by FY28.
Sector Context
India has been steadily ramping up investment in renewable energy as part of its long-term climate goals. Wind energy is a key component of the country’s green energy transition strategy, alongside solar and hybrid models.
Companies like Suzlon, which offer integrated EPC and turbine manufacturing services, are seen as critical to meeting the government’s installation targets. The sector is further supported by favourable policy frameworks, public sector participation, and increasing private investment interest.
Suzlon’s continued focus on execution, cost efficiency, and market positioning may allow it to capitalise on these tailwinds—although maintaining order momentum will be crucial in sustaining investor confidence.
Conclusion
Suzlon Energy’s fourth-quarter earnings have reinforced its standing as a major player in India’s wind energy sector. The company’s ability to exceed project execution targets, coupled with a favourable tax outcome and strong market demand, has driven investor optimism. However, the company’s long-term performance will depend on its ability to sustain order inflow, execute existing contracts efficiently, and adapt to the evolving regulatory and competitive landscape in India’s renewable energy market.
Shares of India-based renewable energy firm Suzlon Energy Ltd rose by as much as 13% on 30 May, after the company posted a consolidated net profit of ₹1,181 crore ($142 million) for the fourth quarter ending 31 March 2025—a 364% year-on-year increase. The significant jump was largely attributed to an exceptional deferred tax gain of ₹600 crore.
The company's total revenue from operations also increased 73.2% to ₹3,773.5 crore in the January–March quarter, compared with ₹2,179.2 crore in the same period last year. The announcement led Suzlon’s share price to rise to ₹74.30 in early trade on the National Stock Exchange of India (NSE), before settling slightly lower during the day.
Exceptional Gain Boosts Bottom Line
Suzlon’s latest earnings reflect strong operational execution and favourable tax accounting. The deferred tax asset—recognised earlier than expected—played a significant role in boosting profitability. According to brokerage firm Nuvama Institutional Equities, this one-time benefit contributed to a 2.7 times beat in profit after tax (PAT), although it is not expected to significantly alter estimates for future years.
In comparison, the company reported a net profit of ₹254 crore in the same quarter a year earlier. For the full financial year 2024–25, Suzlon’s consolidated net profit more than tripled to ₹2,072 crore, up from ₹660 crore the previous year.
Operating metrics also showed improvement. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) nearly doubled to ₹677 crore, while the EBITDA margin rose to 17.94% from 15.62% year-on-year.
Project Execution Ahead of Estimates
The company executed 573 megawatts (MW) of wind energy projects in the fourth quarter, exceeding analysts’ expectations of 475MW. This strong performance contributed to a higher-than-expected top line and improved operating margins, despite increased depreciation and financing costs related to the Renom acquisition.
Brokerages noted that while revenue exceeded projections by only a small margin due to a lower share of higher-margin engineering, procurement, and construction (EPC) contracts, the volume delivery itself was a clear indicator of Suzlon’s execution strength.
Motilal Oswal Financial Services stated that Suzlon’s deliveries and EBITDA surpassed expectations by 15% and 38% respectively, noting that the management maintained a positive outlook for future quarters.
Market Response and Analyst Reactions
Following the earnings release, several analysts revised their forecasts and target prices. Morgan Stanley retained an ‘overweight’ rating with a target price of ₹77 per share. Motilal Oswal raised its target to ₹83, citing improved execution visibility and continued earnings growth.
Nuvama Institutional Equities maintained a ‘hold’ rating, but raised its target to ₹68 from ₹61, citing upward revisions in its FY26 and FY27 estimates. The firm expects 5–7% higher sales and an 8–15% improvement in EBITDA during that period.
Suzlon’s stock has gained 44% over the past year and 16% in the last month alone, reflecting growing investor confidence in the company and the broader renewable energy sector.
Outlook and Challenges Ahead
Despite the strong performance, Suzlon’s order inflow for Q4 remained below 100MW, partly due to cancellations and order truncations. However, the company maintains an order book of 5 gigawatts (GW), which is expected to be executed over the next 24 months, providing substantial revenue visibility.
Analysts expect Suzlon to benefit from India’s increasing focus on renewable energy, particularly through government tenders that emphasise firm and dispatchable renewable energy (FDRE), round-the-clock (RTC) power, and hybrid energy models.
The company holds a strong presence in both the commercial and industrial segments—accounting for 55% of its order book—and in the public sector, supported by its role as one of only two major players in India’s wind EPC and turbine manufacturing sector. Its current market share in the wind turbine segment is estimated at over 30%.
Management has projected at least 60% year-on-year growth in deliveries, revenue, EBITDA, and adjusted PAT for FY26. While guidance for FY27 remains unspecified, industry analysts forecast steady growth in India’s wind installations to 6GW in FY26, rising to 9GW by FY28.
Sector Context
India has been steadily ramping up investment in renewable energy as part of its long-term climate goals. Wind energy is a key component of the country’s green energy transition strategy, alongside solar and hybrid models.
Companies like Suzlon, which offer integrated EPC and turbine manufacturing services, are seen as critical to meeting the government’s installation targets. The sector is further supported by favourable policy frameworks, public sector participation, and increasing private investment interest.
Suzlon’s continued focus on execution, cost efficiency, and market positioning may allow it to capitalise on these tailwinds—although maintaining order momentum will be crucial in sustaining investor confidence.
Conclusion
Suzlon Energy’s fourth-quarter earnings have reinforced its standing as a major player in India’s wind energy sector. The company’s ability to exceed project execution targets, coupled with a favourable tax outcome and strong market demand, has driven investor optimism. However, the company’s long-term performance will depend on its ability to sustain order inflow, execute existing contracts efficiently, and adapt to the evolving regulatory and competitive landscape in India’s renewable energy market.
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