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Informist, Wednesday, May 28, 2025

By J. Navya Sruthi

MUMBAI – Suzlon Energy Ltd. is expected to report a robust on-year growth in both net profit and revenue for the March quarter, driven by increased order execution and dispatches. The company is also projected to deliver the highest earnings growth among its utility sector peers. However, there are mixed expectations regarding its earnings before interest, tax, depreciation, and amortisation. While two brokerage firms anticipate EBITDA growth, another expects slight weakness in this metric due to elevated costs associated with engineering, procurement, and construction activities.

The renewable energy solutions provider's consolidated net profit for the quarter is projected to range between INR 4.04 billion and INR 4.45 billion, according to estimates from three brokerages. This will be higher than the INR 3.87 billion consolidated net profit it had reported in the previous quarter and INR 2.54 billion a year ago.

JM Financial Institutional Securities has the highest bottom line estimate among three brokerages, projecting a 15% on quarter and 75% on-year rise in net profit to INR 4.45 billion. On the other hand, Motilal Oswal Financial Services provided the lowest estimate. 

The consolidated net sales of the company is seen between INR 34.21 billion and INR 37.21 billion, according to estimates. In the December quarter, the company had reported a consolidated net sales of INR 29.75 billion and INR 21.96 billion in the year-ago quarter. The three brokerage firms expect the company's consolidated EBITDA at INR 5.03 billion-INR 5.47 billion in the March quarter. 

JM Financial said the company's consolidated net revenue may increase by at least 56% on year due to higher dispatches in the quarter. It also expects EBITDA to grow nearly 9% on quarter due to higher order dispatches and execution.   

Motilal Oswal said the company is projected to report a revenue growth of 20% on quarter, supported by the execution of 500 megawatts of wind turbine orders. This would bring the company's total order execution for FY25 (Apr–Mar) to 1.4 gigawatt, up from 710 megawatt in FY24. The brokerage, which maintains a ‘buy' rating on the stock, also anticipates a further strengthening of Suzlon's net cash position by FY27. It also said the order execution is expected to grow further in FY26 and FY27 to 2.5 GW and 3.4 GW, respectively. 

Nuvama Wealth Management expects the company's order execution to ramp up to 475 megawatt in the March quarter. The brokerage said costs related to engineering, procurement, and construction are likely to weigh on the company's EBITDA, though it expects the company's consolidated EBITDA to grow over 9% on quarter to INR 5.47 billion. The management's commentary on guidance for FY26 and FY27 will be closely watched during the post-earnings call with analysts.

Although Suzlon is expected to outperform its peers, other power generation utilities are likely to post modest March quarter results due to subdued energy and peak demand. Peak demand, the period when electricity usage on the network is at its highest, in FY25 stood at 250 GW, which is up almost 3% on year due to the extended monsoon in FY25, JM Financial said. India recorded 8% above normal rainfall, with 934.8 mm in the southwest monsoon, typically leading to a fall in electricity usage.

Suzlon Energy will declare its quarterly financial results Thursday. Its shares have risen almost 18% from Jan. 28 when it had released its December quarter earnings. At 1427 IST, the stock was up 1.6% at INR 66.42 on the National Stock Exchange. 

Of five brokerage reports available with Informist on the company, four have a 'buy' or equivalent rating and the remaining one has a 'hold' rating. Among the brokerages with 'buy' or equivalent rating, Geojit Financial Services and JM Financial Institutional Securities each have the highest target price at INR 71 while Nuvama Institutional Equities has the lowest target price of INR 60.

Following are the Jan-Mar earnings estimates for Suzlon Energy based on reports from three brokerage firms in descending order of the estimate of consolidated net profit: 

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Edited by Subhojit Sarkar

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