Retail investors’ favourite renewable energy stock, Suzlon Energy, appears to be caught in a downward spiral, slipping over the last few trading sessions to levels not seen in the past three months.
The stock has already lost 5% in August, following declines of 9.3% in July and 5.3% in June, taking the cumulative fall to 18.25% in less than three months. It has also dropped 32% from its 52-week high.
The sell-off deepened in August, particularly after the company’s June-quarter numbers missed analysts’ estimates, while sentiment was further weakened by the announcement of the Group Chief Financial Officer’s exit.
Analysts noted that the departure of Group CFO Himanshu Mody could be a short-term negative, given his key role in Suzlon’s balance sheet turnaround. They also expressed concerns over installations, which have trailed deliveries in recent quarters, along with a tepid FY26 year-to-date new order inflow of 1 GW.
JM Financial pointed out that current installations have remained at just 20% of deliveries for the past three quarters, raising execution concerns. This led the brokerage to trim its target price slightly to ₹78 from ₹80, while maintaining its ‘buy’ rating.
While domestic brokerage firm Motilal Oswal remains positive on Suzlon’s business momentum, it cut its FY26 adjusted PAT estimate by 25% to reflect a 25% effective tax rate (including deferred tax and non-cash items). It also marginally revised its FY27 tax rate assumption higher to 12%.
Brokerages see Suzlon’s growth momentum intact despite near-term headwinds
Despite the slowdown in the company’s installations and the impending departure of the Group CFO, Motilal Oswal believes these short-term factors are unlikely to derail Suzlon’s strong momentum, which is supported by positive regulatory tailwinds.
It highlighted potential upside to order inflow and margins as local content requirements come into play, a possible 700 MW ( ₹60 billion) deal with Tata Power, and efficiency gains such as a shorter working capital cycle. The brokerage also stated that deliveries have already picked up in Q2FY26, with an additional 547 MW in pre-commissioning.
Suzlon has a strong order book of 5.7 GW, its highest ever, providing revenue visibility for the next 2–3 years. Management also maintained its earlier guidance of 60% growth in key parameters, including deliveries, revenue, and EBITDA, for FY26. It expects India to add 6 GW of wind energy capacity in FY26 and 7–8 GW in FY27.
The Ministry of New and Renewable Energy (MNRE) has recently rolled out the Approved List of Models and Manufacturers (ALMM) for wind, making it compulsory to source key turbine components from approved manufacturers. With a market share of about 40%, Suzlon is expected to be one of the major beneficiaries, according to ICICI Securities.
Meanwhile, the Central Electricity Authority (CEA) projects that India’s wind power capacity will rise to 73 GW by FY27 and further to 122 GW by FY32, compared with 52 GW as of June 2025. To meet these targets, the CEA estimates annual capacity additions of around 10 GW, which is in line with MNRE’s plan to float tenders of 10 GW per year through FY28.
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