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Informist, Saturday, May 23, 2026

 

By Ruchira Kagita       

 

MUMBAI - Modest growth in power demand is expected to weigh on Suzlon Energy Ltd.'s year-on-year profitability in the March quarter, according to analysts tracking the company. However, execution is likely to have been smooth in the March quarter, with the company set to commission over 800 megawatts of capacity.

 

In the quarter under review, brokerages expect the company to execute orders totalling 820-900 MW. In the trailing quarter, Suzlon Energy's orderbook stood at 6.4 gigawatts, and it delivered a record 617 MW of capacity.

 

The company's consolidated net profit is seen declining by over 34% year-on-year to INR 7.76 billion in the March quarter, according to the average of estimates from five brokerages. Nuvama Wealth Management Ltd. has the highest estimate for the renewable energy solution company's net profit at INR 11.08 billion, while Anand Rathi Share and Stock Brokers Ltd. has the lowest estimate at INR 5.93 billion.

 

The company's revenue is expected to rise 50% year-on-year to INR 56.95 billion in the March quarter. Nuvama Wealth has the highest estimate for the wind turbine manufacturer's sales in the reporting quarter at INR 59.14 billion, while Systematix Shares and Stocks (India) Ltd. has the lowest at INR 52.50 billion.

 

The company had deferred tax assets of INR 11 billion at the end of December and management expects these to increase going forward. The company's carry-forward losses at the end of December were INR 80 billion.

 

Execution is improving, aided by an increase in engineering, procurement, and construction orders, according to brokerages. In the December quarter, the share of orders in this category was 27%. The company is expected to focus on increasing orders from the engineering, procurement, and construction segment.

 

The company's earnings before interest, taxes, depreciation, and amortisation are expected to increase by over 50% to INR 10.48 billion, according to the average of estimates from four brokerages. The company's EBITDA margin for the reporting quarter is likely to be around 17-20%, according to brokerages. Suzlon Energy's EBITDA growth will be supported by improved operating leverage, JM Financial Institutional Securities Pvt. Ltd. said in a report.

 

From an industry perspective, power demand in India was muted in the first three months of 2026, growing just 1.9% on year, Nuvama Wealth said in its report. Of the 43 GW of renewable energy capacity added in the country till February, wind power accounted for 5 GW, the brokerage said.

 

The company had guided for 60% growth across all its key parameters in 2025-26 (Apr-Mar) and capacity deliveries of around 2.5 gigawatts. At the post-earnings conference call with analysts in February, management had expressed confidence in achieving the target. The company's top executives also said its market share would increase to 25% by the end of FY26. They had earlier said the company could deliver 1,100 MW of capacity in a quarter.

 

Meanwhile, the National Company Law Tribunal approved a scheme of arrangement to reduce and reorganise the company's reserves. The impact of this reorganisation will be reflected in the company's audited financial statements for FY26. As of Dec. 31, the company's net cash position was at INR 15.56 billion.

 

On Friday, shares of Suzlon Energy ended 1.7% lower at INR 53.75 on the National Stock Exchange. The stock has risen over 12% since the company reported its December-quarter earnings on Feb. 5. Of the seven brokerage reports available with Informist, all carry a 'buy' recommendation, with an average target price of INR 68. The company is scheduled to announce its March quarter results on Monday.

 

The following are the estimates of the company's earnings in the quarter ended March in INR billion, and in descending order of net profit:

 

Brokerage Firm	Net Sales	Net Profit	EBTIDA
Nuvama Wealth Management Ltd	59.14	11.08	10.44
JM Financial Institutional Securities Pvt Ltd	57.08	8.64	10.68
Systematix Shares and Stocks (India) Ltd	52.50	6.80	10.60
Motilal Oswal Financial Services Ltd	59.04	6.35	10.19
Anand Rathi Share and Stock Brokers Ltd	56.96	5.93	-
Average	56.95	7.76	10.48

 

End      

 

Edited by Saji George Titus

 

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