Right time to invest in Suzlon Energy shares? Stock down 5% after SEBI imposes Rs 29 crore penalties

Shares of Suzlon Energy fell more than 5 per cent on Monday, June 1, after the Securities and Exchange Board of India (SEBI) imposed penalties totalling nearly Rs 29 crore on the company and several former executives over alleged violations related to financial reporting, disclosures and corporate governance practices.

The stock closed at Rs 53.75 on the NSE, down 5.69 per cent, as investors reacted to the regulatory action despite the company's strong operational performance and robust order book.

SEBI order weighs on investor sentiment

On May 29, SEBI said Suzlon and several former members of its management had violated provisions of the SEBI Act, the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, and listing disclosure requirements. The regulator's latest order supersedes an earlier adjudication order issued in June 2025.

SEBI imposed penalties on multiple former executives, including former chairman Vinod R. Tanti, who was fined Rs 5.75 crore, and Girish R. Tanti, who was fined Rs 5.45 crore. Former Group CFO Kirti J. Vagadia was penalised Rs 1.5 crore, while former CFO Amit Agarwal was fined Rs 30 lakh.

Stock falls despite strong Q4 earnings

Suzlon Energy shares opened at Rs 56.12 on the BSE and touched an intraday high of Rs 56.98 before slipping to a low of Rs 54.40 amid selling pressure.

Recently, Suzlon posted a consolidated net profit of Rs 1,114 crore in Q4 FY26, compared with Rs 1,182 crore in the corresponding period last year. Revenue from operations rose 45 per cent year-on-year to Rs 5,468 crore from Rs 3,774 crore, driven by record quarterly deliveries of 830 MW in India.

On the operational front, EBITDA increased 39 per cent to Rs 939 crore from Rs 677 crore a year ago. However, EBITDA margin narrowed slightly to 17.17 per cent from 17.95 per cent.

For FY26, revenue from operations climbed 54 per cent to Rs 16,679 crore, while net profit rose 51 per cent to Rs 3,136 crore.

Record deliveries support growth outlook

Suzlon achieved its highest-ever annual and quarterly India deliveries at 2,456 MW and 830 MW, respectively.

The company’s order book stood at around 5.9 GW as on March 31, 2026, with nearly 66 per cent of the orders from PSU and commercial and industrial customers.

Suzlon also highlighted strong demand for its S144 turbine platform, which has received cumulative orders of nearly 9 GW. The company ended FY26 with a net cash position of Rs 2,384 crore.

Motilal Oswal retains bullish view

Brokerage Motilal Oswal Financial Services maintained a target price of Rs 65 on Suzlon shares.

The brokerage said Suzlon met its FY26 guidance of nearly 60 per cent growth across key financial metrics and noted that the engineering, procurement and construction (EPC) share in its order book increased to 28 per cent from 22 per cent at the end of Q2 FY26.

Management is targeting an EPC contribution of 50 per cent by FY28, which could improve execution visibility and support faster project deliveries.

Motilal Oswal also highlighted growing opportunities from NTPC, which is increasingly shifting towards turnkey EPC contracts. The brokerage noted that around 215 MW has already been awarded in Andhra Pradesh, while an additional pipeline of nearly 2.5 GW is expected.

Management has guided for India wind installations of 8 GW in FY27 and 10 GW in FY28, with the market potentially scaling to nearly 15 GW annually by FY30 and FY31.

However, the brokerage flagged risks around the pace of fresh order inflows, project execution and installations during FY27 and FY28. It also noted that margins in the wind turbine generator business remained flat sequentially and cautioned that a higher EPC contribution could increase working capital requirements in the coming years.