Suzlon Energy, a leading name in India’s renewable energy sector, has been making waves in the stock market with its impressive financial performance and promising growth prospects. Despite a minor dip in its stock price recently, brokerage houses remain highly optimistic about Suzlon’s future, citing its stellar quarterly results and the broader shift toward clean energy in India. This article delves into Suzlon Energy’s latest updates, financial achievements, and the factors driving its potential to deliver multibagger returns, positioning it as a top contender in the renewable energy market.
Suzlon Energy’s Recent Stock Performance
Suzlon Energy’s stock closed at ₹71.15, reflecting a slight decline of approximately 0.46%. However, this minor correction does not overshadow the stock’s remarkable long-term performance. Over the past decade, Suzlon has delivered an astounding 2,542.67% return, solidifying its status as a multibagger stock. In the last five years, it achieved a staggering 25,535% return, while the past three years saw a robust 74% gain. Even in the short term, Suzlon has performed exceptionally, with a 51.65% return over the past year and a 45.15% surge in the last three months.
The stock recently hit a high of ₹73.44, driven by a 10.7% rally over three trading sessions. This momentum stems from Suzlon’s strong quarterly results and growing investor confidence in the renewable energy sector. Despite a high trading volume on May 30, which sparked significant price movement, Suzlon clarified to the exchange that no new announcements were made, attributing the surge to market dynamics rather than company-specific events.
Stellar Q4 Results Fuel Optimism
Suzlon Energy’s fourth-quarter performance for the fiscal year has been a game-changer, reinforcing its position as a leader in the wind energy sector. The company reported a jaw-dropping 365% year-on-year (YoY) jump in profit, soaring from ₹254 crore to ₹1,182 crore. Revenue also saw a remarkable 73% YoY increase, climbing from ₹2,179 crore to ₹3,773 crore. On a quarter-on-quarter (QoQ) basis, Suzlon’s profit surged by 205%, rising from ₹387 crore to over ₹1,100 crore, while revenue grew by 27% from ₹2,969 crore to ₹3,773 crore.
These figures highlight Suzlon’s ability to scale its operations efficiently while maintaining strong financial health. The company’s expenses rose to ₹3,274 crore, up from ₹1,927 crore in the previous quarter and ₹1,061 crore a year ago, reflecting increased business activity. However, this expenditure aligns with Suzlon’s aggressive growth strategy, particularly in its core wind turbine generator (WTG) business.
Segment-Wise Performance: Wind Turbine Generators Lead the Way
Suzlon Energy operates across multiple segments, with its wind turbine generator (WTG) business being the primary revenue driver. In Q4, the WTG segment generated ₹3,142 crore in revenue, a significant leap from ₹1,532 crore in the previous quarter and ₹336 crore a year earlier. This growth underscores Suzlon’s dominance in the wind energy market and its ability to capitalize on increasing demand for renewable energy solutions.
The foundry and forging segment also performed well, contributing ₹168 crore in revenue, up from ₹158 crore in the prior quarter and ₹146 crore a year ago. Additionally, Suzlon’s operations and maintenance services (OMS) business reported ₹591 crore in revenue, slightly higher than ₹574 crore in the previous quarter and ₹580 crore a year earlier. The company also recorded ₹4 crore in other income, further bolstering its financials.
Brokerage Houses’ Bullish Outlook on Suzlon Energy
Leading brokerage firms, including Motilal Oswal, ICICI Securities, Morgan Stanley, and Nuvama, have expressed strong confidence in Suzlon Energy’s growth trajectory. Their optimism is rooted in the company’s robust financial performance, expanding order book, and the favorable macro environment for renewable energy in India.
Motilal Oswal: Strong Revenue Growth and Installation Capacity
Motilal Oswal highlighted Suzlon’s 60% YoY revenue growth and its promising EBITDA delivery projections for FY26. The brokerage firm estimates that Suzlon’s annual installation capacity could range between 6 and 9 gigawatts (GW) from FY26 to FY28. This ambitious forecast reflects confidence in Suzlon’s ability to scale its operations and capture a significant share of India’s growing renewable energy market.
ICICI Securities: Outperforming Expectations
ICICI Securities praised Suzlon’s Q4 performance, noting a 73% YoY revenue increase and a 94% YoY jump in EBITDA, reaching approximately ₹7 billion. The adjusted profit after tax (PAT) stood at ₹5.8 billion, surpassing expectations. The brokerage also highlighted Suzlon’s installation of 273 wind turbines, contributing to a 5.6 GW order book as of May 2025. This represents a 3.6x growth in volume, underscoring the company’s strong market position.
Morgan Stanley: Overweight Rating and Positive Cash Flow
Morgan Stanley assigned an overweight rating to Suzlon, citing its 60% YoY growth in WTG business volume and robust EBITDA contribution in FY24. The brokerage emphasized Suzlon’s healthy net cash flow and projected capital expenditure (capex) range of ₹4,000–4,500 crore. This financial stability positions Suzlon to invest in capacity expansion and technological advancements, further strengthening its competitive edge.
Nuvama: Exceeding Delivery Estimates
Nuvama echoed the bullish sentiment, noting that Suzlon delivered 573 megawatts (MW) in Q4, surpassing the estimated 475 MW. The operating profit margin reached 18.3%, exceeding the projected 14.7%. These results highlight Suzlon’s operational efficiency and its ability to outperform market expectations.
India’s Renewable Energy Boom: A Tailwind for Suzlon
Suzlon Energy’s growth is closely tied to India’s ambitious push toward clean energy. Historically reliant on coal-based power plants, India has made significant strides in transitioning to renewable energy sources, particularly wind and solar. The dominance of coal, which once accounted for over 60% of India’s energy needs, has dropped below 50%. In the past year alone, India added 30 GW of clean energy capacity, driven by supportive government policies and increasing private investment.
The Indian government aims to achieve 500 GW of renewable energy capacity by 2030, with 170 GW of projects currently in the pipeline. Experts like Raghav Pachouri from the Vasudha Foundation believe this target is achievable, thanks to favorable policies and growing investor interest. The government plans to invest $452 million in the renewable energy sector, positioning India as the world’s fourth-largest adopter of clean energy.
This shift creates a fertile ground for companies like Suzlon, which is well-positioned to benefit from the increasing demand for wind energy solutions. With a strong order book and a proven track record, Suzlon is poised to capitalize on India’s renewable energy revolution.
Why Suzlon Energy Stands Out in the Renewable Sector
Suzlon Energy’s competitive edge lies in its comprehensive business model, which spans wind turbine manufacturing, foundry and forging, and operations and maintenance services. The company’s ability to deliver consistent revenue growth, improve profitability, and maintain a robust order pipeline sets it apart from its peers.
Additionally, Suzlon’s focus on innovation and sustainability aligns with global trends toward decarbonization. As governments and corporations worldwide prioritize clean energy, Suzlon’s expertise in wind turbine technology positions it as a key player in the global renewable energy market.
Investment Considerations for Suzlon Energy
Suzlon Energy’s impressive financial performance and the bullish outlook from brokerage houses make it an attractive investment opportunity. However, potential investors should exercise due diligence before making decisions. Consulting a financial advisor or conducting thorough research is essential to understanding the risks and rewards associated with investing in Suzlon.
The company’s strong fundamentals, coupled with India’s renewable energy boom, suggest that Suzlon could continue its upward trajectory. Its multibagger returns over the past decade and consistent outperformance in recent quarters make it a compelling choice for investors seeking exposure to the renewable energy sector.
Conclusion: Suzlon Energy’s Bright Future
Suzlon Energy has emerged as a powerhouse in India’s renewable energy landscape, driven by exceptional financial results, a strong order book, and favorable market conditions. Brokerage houses’ bullish outlook, backed by robust data, underscores Suzlon’s potential to deliver significant returns in the coming years. As India accelerates its transition to clean energy, Suzlon is well-positioned to lead the charge, making it a stock to watch for investors seeking growth in the renewable energy sector.
For those considering an investment in Suzlon Energy, now may be an opportune time to explore its potential. However, always consult with a financial advisor to ensure your investment aligns with your financial goals. With its strong fundamentals and a supportive macro environment, Suzlon Energy is poised to shine as a leader in the global renewable energy market.
