Analyst Concall
Suzlon Energy says to focus more on EPC model going forward
This story was originally published at 20:24 IST on 4 November 2025
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--CONTEXT: Suzlon Energy Q2 EBITDA margin 18.6%, up from 14.1% year ago
--Suzlon Energy: Current margin sustainable in future
--Suzlon Energy: Battery storage with wind energy systems is expensive
--Suzlon Energy: Focus more on EPC contracts model going forward
--Suzlon Energy: Capacity of 568 MW in various stages of commissioning
--CONTEXT: Suzlon Energy mgmt's comments in post-earnings call with analysts
--Suzlon Energy: Confident of achieving 25% market share in FY26
By Narayana Krishna and Taniva Singha Roy
HYDERABAD/MUMBAI – Wind energy turbine maker Suzlon Energy Ltd. is redrawing its business strategy and plans to focus more on engineering, procurement, and construction models going forward. "The EPC model is risk mitigation model, not the risk creation model. It has a significant margin improvement model," the management said in a post-earnings conference call with analysts Tuesday.
The company plans to realign its order book to comprise 50% of EPC contracts and 50% of other projects. Currently, the company's order book has 20% of EPC contracts. As of Sept. 30, the company had a wind energy order book of 6 gigawatt capacity.
Out of the total order book, nearly 61% is from commercial installation, 14% from public sector entities, and 35% from orders through competitive bidding, the company said. The current order book is executable in 18-24 months, it said.
The Pune-based company said 568 megawatts of capacity is in various stages of commissioning during Oct-Mar, of which construction of 160 megawatts has been completed and is ready to be commissioned and 327 megawatts are in the execution process. All of this under construction capacity will be completed by March, the company said.
Suzlon Energy reported a consolidated net profit of INR 12.79 billion for the September quarter, up 539% on year and 295% sequentially because of a tax write-back. Without the tax write-back, its consolidated net profit would be INR 5.61 billion, up nearly three times on year and against the Street's estimate of INR 2.51 billion.
The company's consolidated revenue for the quarter surged 84% on year and 24% sequentially to INR 38.71 billion, surpassing the consensus view of INR 29.07 billion by a considerable margin.
Suzlon Energy's management said combining battery energy storage system with wind alone or with solar is expensive and not affordable. The company said the cost of power from wind energy and battery storage system would be INR 6.5 per unit, whereas the cost of power from wind energy along with solar energy and battery storage system would be around INR 4.75 per unit.
The management said the company is confident of achieving 25% market share in the wind energy space in 2025-26 (Apr-Mar). The current margins are also sustainable going forward, the company said. Suzlon Energy's earnings before interest, tax, depreciation and amortisation margin for the September quarter jumped up to 18.6% from 14.1% a year ago. The increased focus on EPC business will help to improve the margin further, the company said.
On Tuesday, Suzlon Energy shares ended at INR 59.99 on the National Stock Exchange, up 1.3% from the previous close. End
Edited by Ashish Shirke
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