Suzlon set to hit Rs 72 after Q4 results? UBS, Motilal Oswal stays bullish despite 6% fall in profit

Shares of Suzlon Energy are likely to remain in focus on Tuesday, May 26, after the renewable energy company reported a 6 per cent year-on-year decline in consolidated net profit for the March quarter, even as revenue and operational performance remained strong.

The company 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 during the January-March quarter, against Rs 3,774 crore a year ago. Suzlon said the growth was driven by its highest-ever quarterly India deliveries of 830 MW.

EBITDA rises 39 per cent

On the operational front, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 39 per cent to Rs 939 crore in Q4 FY26 from Rs 677 crore in the year-ago quarter.

However, EBITDA margin narrowed slightly to 17.17 per cent from 17.95 per cent last year.

For the full financial year FY26, Suzlon reported a 54 per cent rise in revenue from operations to Rs 16,679 crore, compared with Rs 10,851 crore in FY25.

Annual net profit climbed 51 per cent to Rs 3,136 crore from Rs 2,072 crore in the previous fiscal year.

Record deliveries and strong order book

Suzlon said it 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 of March 31, 2026, with nearly 66 per cent of orders coming from PSU and commercial and industrial (C&I) segments.

The company also highlighted the strong traction for its S144 turbine platform, which has seen cumulative order intake of nearly 9 GW so far.

Suzlon maintained a net cash position of Rs 2,384 crore at the end of FY26.

“We are happy to deliver the highest-ever India annual deliveries at ~2.5 GW in FY26, reflecting strong execution across the business. Our healthy orderbook of ~5.9 GW, with 66 per cent coming from PSU and C&I segment, we continue to see strong demand for wind energy solutions,” said Ajay Kapur, Chief Executive Officer of Suzlon Group.

UBS maintains Buy on Suzlon

Global brokerage UBS maintained its “Buy” rating on Suzlon Energy after the Q4 results, though it reduced the target price to Rs 72 from Rs 78 earlier.

The brokerage’s revised target still implies potential upside from the current market price of Rs 53.

Motilal Oswal sees 20% upside

Motilal Oswal Financial Services said it liked several aspects of Suzlon’s Q4 performance and long-term outlook.

The brokerage highlighted that Suzlon achieved its FY26 guidance of around 60 per cent year-on-year growth across key financial metrics. It also noted that the EPC share in the company’s order book increased to 28 per cent from 22 per cent at the end of Q2 FY26, with management targeting 50 per cent by FY28.

According to Motilal Oswal, this shift toward EPC-led execution could support faster deliveries and stronger execution visibility.

The brokerage also pointed out that NTPC is increasingly moving towards turnkey EPC contracts, with nearly 215 MW already awarded in Andhra Pradesh and an additional opportunity pipeline of around 2.5 GW expected.

Management has guided for India wind installations of 8 GW in FY27 and 10 GW in FY28, which could scale up to nearly 15 GW by FY30 and FY31.

On the Andhra Pradesh agreement, Motilal Oswal said Suzlon’s 2015 development pact has now been extended by two years. Out of the 2.1 GW development rights, around 775 MW already has a signed power purchase agreement awaiting regulatory approval, while the remaining 1,325 MW is expected to be monetised through EPC contracts from June 2026 onwards.

Despite the positive outlook, the brokerage flagged some near-term concerns.

These include the pace of fresh order inflows, project deliveries and installations across FY27 and FY28, which will be crucial for sustaining current growth momentum.

It also noted that the wind turbine generator (WTG) segment EBITDA margin remained flat sequentially at 13.7 per cent in Q4 FY26, compared with the stronger 15-16 per cent levels seen during the first half of FY26.

Motilal Oswal further cautioned that increasing contribution from the EPC business could put pressure on working capital going forward.

The brokerage maintained its target price of Rs 65 on the stock, based on 27x FY28 estimated earnings per share.