33% Target Cut: Morgan Stanley turns cautious on Suzlon Energy; check reasons

Suzlon Energy Ltd shares were trading at Rs 48.14, up 0.21 per cent in early trade. The stock has been under sustained pressure. It is down over 9 per cent so far this year and has fallen around 25 per cent in the past six months. Suzlon Energy is also down about 36 per cent from its 52-week high of Rs 74.30 hit on May 30, 2025.

Morgan Stanley turns cautious

Morgan Stanley has turned cautious on Suzlon Energy. The brokerage downgraded the stock to Equalweight from Overweight. It cut the target price by 33 per cent to Rs 52 from Rs 78.

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Morgan Stanley flagged multiple headwinds. It sees risks to new order inflows as renewable energy bidding activity has been significantly lower in the first nine months of FY26. The brokerage also warned that execution challenges faced by renewable energy developers could slow the offtake of Suzlon’s wind turbines.

Q3 results show strong growth

Despite the cautious brokerage view, Suzlon Energy reported a strong operational performance in the December quarter.

The company posted a 14.83 per cent year-on-year rise in consolidated net profit at Rs 445.28 crore for Q3FY26, compared with Rs 387.76 crore a year ago.

Revenue from operations jumped 42.42 per cent to Rs 4,228.18 crore from Rs 2,968.81 crore in the year-ago quarter.

EBITDA rose 47.8 per cent to Rs 739 crore, while the EBITDA margin improved to 17.5 per cent from 16.8 per cent last year.

Operational highlights

Suzlon Energy reported its highest-ever quarterly deliveries of 617 megawatts during the quarter. The company currently has 2.4 gigawatts of projects under execution.

Its net cash position stood at Rs 1,556 crore as of December 31, 2025.

Management outlook

Suzlon said India’s power demand is expected to nearly triple to 4,490 terawatt hours in the coming years. Renewable energy demand is projected to grow ten-fold to 1,600 terawatt hours.

The company expects wind energy capacity to grow at a 10 per cent CAGR to around 400 gigawatts, compared with about 5 per cent growth in overall power demand.