Suzlon Energy shares crash 10% after Q2 results; JM Financial downgrades stock to add, revises target price
Suzlon Energy shares plunged nearly 10% after Q2 FY27 margins contracted despite strong revenue growth and record deliveries.
Shares of Suzlon Energy crashed nearly 10 percent on Friday, October 30, after the wind energy company reported a marginal increase in comparable net profit for the second quarter of the financial year 2026-27 while operating margins came under pressure. The company released its earnings post market hours on Thursday. The stock faced selling pressure after brokerage JM Financial downgraded its rating on Suzlon, citing concerns over margin sustainability, competition and growth prospects from FY28 onwards.
Suzlon share price today Suzlon shares opened at Rs 36.09 and fell 9.73 percent to an intra-day low of Rs Rs 33.21, compared with the previous close of Rs 36.79. At around 10.50 am, the stock was trading 8.10 percent, or Rs 2.98, lower at Rs 33.74, on the BSE. Suzlon Energy Ltd reported a 1.3 percent year-on-year increase in comparable net profit to Rs 394 crore for the September quarter, excluding an Rs 891 crore deferred tax asset creation in the year-earlier period, as record wind turbine deliveries lifted revenue but operating margins came under pressure.
Reported net profit fell 69.2 per cent from Rs 1,279 crore in the September quarter of FY26, when the tax benefit boosted earnings. The company’s revenue from operations rose 26 percent to Rs 4,869 crore in the quarter ended September 30, while earnings before interest, tax, depreciation and amortisation (EBITDA) were broadly flat at Rs 720 crore against Rs 721 crore a year earlier. The EBITDA margin narrowed to 14.8 percent from 18.6 per cent, while profit before tax declined 7.8 per cent to Rs 518 crore.
Revenue rose 27 percent sequentially from Rs 3,819 crore in the June quarter, with EBITDA increasing 21 per cent from Rs 595 crore, reflecting stronger execution and higher deliveries. Suzlon delivered a record 710 megawatts (MW) of wind energy equipment in India during the quarter, up 25.7 percent from 565 MW a year earlier. Commissioning activity rose 69 percent sequentially to 454 MW. "Our record Q2 deliveries of 710 MW and strong commissioning of 454 MW reflect stronger execution and are driving revenue growth," Ajay Kapur, chief executive officer of Suzlon Group, said.
The company's order book exceeded 6 gigawatts (GW), supported by order intake of more than 1.5 GW in the first half of FY27. More than 1.1 GW of first-half orders came from its development company (DevCo) business, accounting for over 70 percent of order intake. Public-sector undertakings and commercial and industrial customers accounted for 78 percent of the order book. Engineering, procurement and construction (EPC) contracts represented 38 percent of the pipeline, with Suzlon targeting an increase in their share to 50 percent by FY28.
The company said its strategy was focused on expanding beyond wind turbine manufacturing into broader renewable energy project execution. Girish Tanti, vice-chairman and co-founder of Suzlon Group, said the company's "Suzlon 2.0" strategy was strengthening its position as a full-stack renewable energy solutions provider. Chief Financial Officer Rahul Jain said Suzlon had delivered revenue growth despite commodity and currency volatility, while continuing to focus on margins, cash flow and disciplined capital allocation.
Suzlon's net worth crossed Rs 10,000 crore, while credit rating agency CRISIL upgraded its long-term rating to CRISIL AA-/Stable, the company said. JM Financial on Suzlon share: Downgrades to Add, cuts target price to Rs 40 Domestic brokerage JM Financial downgraded Suzlon Energy to ‘Add’ from ‘Buy’ and reduced its target price to Rs 40 from Rs 46, citing pressure on operating margins and concerns over the company's growth outlook beyond FY28.
The brokerage noted that Suzlon reported Q2 FY27 revenue at Rs 4,900 crore, up 26 percent YoY, 1 percent marginally ahead of its estimates and 4 percent consensus expectations. However, the EBITDA margin decreased to 15 percent from 18.6 percent in Q2 FY26, versus JM Financial's and consensus estimates of 16 percent each. JM Financial attributed the margin contraction primarily to a higher contribution from EPC projects.
It also highlighted the company's strong execution, with wind turbine generator (WTG) deliveries rising to 710 MW versus 565 MW in Q2 FY26, while installations nearly trebled to 454 MW from 153 MW in the year-ago period. The brokerage noted that order book stood at 6GW with a 38 percent EPC share versus 32 percent in Q1 FY27. Management is targeting EPC share of 50 percent by FY28. JM Financial expects deliveries of 3 GW, 3.3 GW and 3.5 GW during FY27, FY28 and FY29, respectively.
In line with management guidance, the brokerages said it reduced FY27, FY28 and FY29 EBITDA margin to 15 percent, 16 percent and 15 percent, respectively. The brokerage cautioned margins and growth prospects for Suzlon would be under pressure FY28 onwards due to limited India market (7–8GW per annum) and increasing competition (15–20 GW industry capacity), not to mention growing pains of a single-product company. JM Financial's revised target price of Rs 40 is based on 12 times its September 2028 estimated EBITDA.
