Suzlon Energy Ltd’s stock is down about 20% over the past six months, weighed down by the fear that India’s wind cycle is losing momentum. Still, it’s worth noting that Suzlon has assembled a robust medium-term orderbook pipeline.
At a recent analyst meeting, management was upbeat, pointing out that nearly 15 gigawatts (GW) of industry wind orders are still in the bidding or awarding stage. This is work that hasn’t turned into installations yet, but will shape up the next leg of execution for Suzlon over the coming years.
Demand from commercial and industrial (C&I) clients, which now forms a meaningful 51% share of Suzlon’s book, has stayed firm despite the pause in central auctions.
Over the past four quarters, Suzlon has booked 3.5GW of new wind orders against roughly 2GW of deliveries, pushing the order book to 6.2GW. Deliveries in H1FY26 doubled year-on-year to about 1GW, and ICICI Securities expects 2.5GW in FY26.
Production push
The company has also been preparing for a scale-up. Three new blade plants across key wind corridors are meant to reduce transport delays and improve turnaround times. The Puducherry nacelle plant, still at about 30% utilization, offers room to ramp up output without heavy spending.
By aiming to lift the share of engineering, procurement, and construction (EPC) work down in orders from around 20% today to almost 50% by FY28, Suzlon is trying to take greater control of the project lifecycle and move toward higher-margin activity. Meanwhile, exports could be another driver, with its turbine platforms now close to export-ready.
Suzlon’s H1FY26 performance brings optimism. Revenue and Ebitda rose on stronger deliveries and margins. Q2FY26 Ebitda margin was at a notable 42%. Ebitda is short for earnings, interest, taxes, depreciation, and amortization.
Execution risks
Still, execution bottlenecks such as connectivity delays, land hurdles, and right-of-way constraints remain the sector’s hardest problems to solve. ICICI Securities noted that Suzlon has identified sites for about 23GW of wind capacity and has begun land acquisition for 7-8GW, but executing these deals and moving them into active project development remains a key challenge.
The management believes India can scale up to 10GW of annual wind installations by FY28. JM Financial Institutional Securities is more cautious, expecting structural issues to cap industry additions at around 7-8GW. If the sector settles at that ceiling, Suzlon’s strong medium-term visibility may not fully translate into sustained growth beyond FY28 without deeper diversification.
At roughly 25 times FY27 estimated earnings, Suzlon’s valuation isn’t cheap, leaving little room for execution misses.
