This renewable energy company’s profit jumped 585%, but brokerages still recommend HOLD — here’s why

Renewable energy company Suzlon Energy has reported its strongest-ever quarterly and half-yearly performance, marking a new milestone in its history. The renewable energy major posted a 538 per cent year-on-year jump in profit and 85 per cent revenue growth in the September quarter (Q2 FY26). Despite the impressive results, Nuvama Institutional Equities has maintained a ‘Hold’ rating on the stock, pointing to flat execution trends and limited short-term delivery growth.

Record-breaking Q2 performance

According to data available on the BSE, Suzlon Energy’s net profit soared to Rs 1,279 crore in Q2FY26 from Rs 200 crore a year earlier. Revenue rose 85 per cent to Rs 3,866 crore, while EBITDA increased 145 per cent to Rs 721 crore. The EBITDA margin improved to 18.6 per cent, compared to 14.1 per cent a year ago. The company said this is the highest profit achieved in any single quarter.

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During the period, Suzlon delivered 565 MW, beating brokerage estimates of 375 MW. Its order book has now crossed 6.2 GW, with over 2 GW of fresh orders in the first half of FY26. The company also reported net cash of Rs 1,480 crore as of September 30, 2025.

Why the ‘Hold’ rating persists

Despite the robust growth, Nuvama retained its ‘Hold’ stance, citing near-term delivery constraints. The brokerage expects India’s wind energy sector to sustain annual deliveries of 8–10 GW, with Suzlon maintaining 3–3.5 GW of that share. This, it said, reflects a “flat execution trend,” leading to cautious optimism.

Nuvama revised Suzlon’s earnings per share (EPS) estimates for FY26E and FY27E by +49 per cent and -16 per cent, respectively, and slightly reduced the target price from Rs 67 to Rs 66. The firm added that if Suzlon’s deliveries exceed 3.5 GW annually, it may reassess its outlook.

Government support boosts long-term potential

Suzlon said it expects continued support from the government’s push for renewable energy, including the reduction of GST on wind turbines from 12 per cent to 5 per cent and new localisation policies. India plans to install 122 GW of wind capacity by FY32, and this year’s addition could cross 6 GW.

Suzlon holds a 29 per cent share of the domestic market, with 15.4 GW installed in India and 6 GW internationally. CEO J.P. Chalasani said India could see 6 GW of new capacity in FY26 and 8 GW in FY27, underlining strong long-term growth prospects.

Retail favourite despite limited near-term upside

Suzlon remains a retail investor favourite, with over 55 lakh shareholders owning 25.89 per cent of the company. It has a market capitalisation of Rs 82,260 crore and features in 32 mutual fund portfolios.

The stock, however, is trading near Rs 60, down about 8 per cent year-to-date, within a 52-week range of Rs 46–74.