Broker’s call: Suzlon (Add)

Suzlon received DevCo led 400MW EPC order from Tata Power and 202MW from Waaree group for S144 (3.15MW) WTGs

Target: ₹40

CMP: ₹33.85

Suzlon Energy reported Q2-FY27 revenue of ₹4,900 crore (26 per cent YoY; 1 per cent JMFe/4 per cent consensus). However, EBITDA margin decreased to 15 per cent from 18.6 per cent in Q2-FY26 (versus JMFe and consensus at 16 per cent each) primarily due to a higher EPC mix. The quarter marked strong WTG deliveries of 710MW versus 565MW in Q2FY26.

Furthermore, installations trebled to 454 MW from 153 MW in Q2-FY26. Order book stands at 6GW with a 38 per cent EPC share (versus 32 per cent in Q1). Management is targeting EPC share of 50 per cent by FY28E.

We expect deliveries of 3/3.3/3.5GW during FY27E/28E/29E. In line with management guidance, we are reducing FY27E/28E/29E EBITDA margin to 15/16/15 per cent. We believe margins and growth prospects for Suzlon would be under pressure FY28 onwards due to limited India market (7–8GW pa) and increasing competition (15–20GW industry capacity), not to mention growing pains of a single-product company.

During H1FY27, DevCo-led orders crossed 70 per cent of H1 order intake (1.1GW+). Suzlon received DevCo led 400MW EPC order from Tata Power and 202MW from Waaree group for S144 (3.15MW) WTGs. Management believes that these contracts have faster implementation due to land readiness.

All in all, we are downgrading Suzlon to Add (from Buy) with a revised TP of ₹40 (earlier ₹46) based on 12x Sep’28E EBITDA (implied 20x Sep’28 EPS).

Published on October 30, 2026