Suzlon Energy shares rise after Q4 results. What are Motilal Oswal, Nuvama saying?

Shares of wind energy company Suzlon Energy rose 1% to Rs 54.5 on the BSE on Monday after it reported a 6% year-on-year decline in consolidated net profit for the fourth quarter at Rs 1,114 crore, compared with Rs 1,182 crore in the same period last year.

Revenue from operations, however, rose sharply by 45% year-on-year to Rs 5,468 crore during the quarter. On a sequential basis, net profit jumped 150% from Rs 445 crore reported in the December quarter.

EBITDA for the March quarter increased 39% year-on-year to Rs 964 crore. However, EBITDA margin slipped to 17.6% from 18.4% in the corresponding quarter last year.

Suzlon Energy shares: Buy, sell or hold?

Nuvama Institutional Equities downgraded Suzlon Energy shares to ‘Hold’ and set a target price of Rs 55, representing an upside of just 3%. The brokerage believes Suzlon Energy remains well-positioned to benefit from the rising share of FDRE, RTC, and hybrid tenders, along with increasing PSU-led project activity, supported by its strong exposure to the commercial and industrial, as well as captive segments, which account for 51% of its order book.However, it expects the domestic wind industry’s annual capacity additions to stabilize at 8–10 GW over the next two to three years as competition from solar and battery energy storage projects intensifies. Assuming Suzlon maintains a 30–35% market share, the brokerage estimates annual execution could level off at around 3–3.5 GW during FY27–28.

Motilal Oswal has maintained its “Buy” rating on Suzlon Energy with a target price of Rs 65, implying an upside potential of 20%. The brokerage said key monitorables for the company include the pace of fresh order inflows, project deliveries, and installations during FY27 and FY28, which will be crucial for sustaining the current growth trajectory.

It also highlighted that the EBITDA margin for the WTG segment remained flat sequentially at 13.7% in Q4FY26, lower than the stronger 15-16% levels reported in Q1 and Q2FY26. In addition, Motilal Oswal noted that the increasing contribution of the EPC business in the overall order mix could put some pressure on working capital going forward.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)