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Informist, Wednesday, Jul. 30, 2025

By J. Navya Sruthi

MUMBAI – Suzlon Energy Ltd. is expected to report robust on-year growth in net profit as well as revenue for the June quarter, driven by higher dispatches. The company's earnings before interest, tax, depreciation, and amortisation is also seen rising sharply. The early onset of the southwest monsoon helped the company to report a sharp rise in orders for wind turbines during the quarter.

The renewable energy solutions provider is expected to have done well in a quarter in which power generation utilities are likely to post modest results owing to subdued demand in what is usually peak season. Peak demand in the June quarter was 242 gigawatts, down 3% on year due to the early onset of the southwest monsoon, JM Financial Institutional Securities Pvt. Ltd. said.

Suzlon Energy's consolidated net profit for the quarter is projected to range between INR 4.70 billion and INR 4.79 billion, according to estimates from three brokerages. This will be sharply lower than the consolidated net profit of nearly INR 12.00 billion it had reported in the previous quarter but higher than the INR 3.00 billion reported a year ago. The 60% sequential fall in the bottom line is due to a high base. Deferred tax of around INR 6.00 billion had accounted for more than half the bottom line for the trailing quarter.

Motilal Oswal Financial Services has the highest bottom line estimate among three brokerages, projecting a rise of over 58% on year in net profit to INR 4.79 billion. JM Financial has given the lowest estimate of INR 4.71 billion.

The consolidated net sales of Suzlon Energy is seen between INR 32.38 billion and INR 33.30 billion, according to estimates. This is lower than the INR 37.74 billion it had reported in the March quarter but sharply higher than INR 20.16 billion a year ago. The three brokerages' estimates for consolidated EBITDA for the June quarter range from INR 5.79 billion-INR 6.07 billion.

JM Financial said Suzlon's net revenue is likely to rise at least 60% on year owing to higher dispatches. Its EBITDA is also expected to rise 60% on year. Nuvama Wealth Management said the company's order execution is expected to be at 420 megawatts in the June quarter. It also said execution ramp-up and margins of the company will remain key factors to be monitored.

Moreover, JM Financial said, the early onset of the monsoon had led to a growth in renewable energy generation during the reporting quarter. According to Motilal Oswal, Suzlon Energy's wind turbine orders are seen rising 62% on year to 450 megawatts. As of March, the company had reported the wind power order book at 5.6 gigawatt, making wind energy a dominant product for the Indian market.

The southwest monsoon season, which extends from June to September, is significant for India's renewable energy industry. Monsoon sees the generation of hydroelectric and wind power getting a boost. This year, the southwest monsoon hit the Kerala coast on May 24, eight days ahead of its normal date of Jun. 1. By May 29, the monsoon current had covered the whole of southern and northeastern India and parts of eastern and central India. Although the monsoon was in a weak phase after May 29, its advance resumed Jun. 16 and it had covered the whole country by Jun. 29, nine days ahead of the normal date of Jul. 8.

While the early monsoon is expected to have weighed on the earnings of power generation utilities, it has boosted the financials of renewable energy companies. According to JM Financial's estimates, hydroelectric power generation grew 13% on year, solar power generation by 18% on year, and wind power generation by 31% on year in the June quarter.

Suzlon Energy has not yet declared a date for releasing its June quarter financial results. Its shares have fallen over 7% since May 29 when it had released its March quarter earnings. Wednesday, shares of the company closed nearly 1% down at INR 61.21 on the National Stock Exchange.

Of six brokerage reports on the company available with Informist, four have a "buy" or equivalent rating and two have a "hold" rating. Among brokerages with a "buy" or equivalent rating, Geojit Financial Services has the lowest target price of INR 71 while Motilal Oswal has the highest target price of INR 82.

Following are the Apr-Jun consolidated earnings estimates for Suzlon Energy, in INR million, based on reports from three broking firms, in descending order of net profit:

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Edited by Rajeev Pai

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