Synopsis: Suzlon Energy shares fell 7% after reporting Q1 FY27 results, as EBITDA margin declined to 15.6% and net profit fell 5.9% YoY despite 22.5% revenue growth. The company, however, ended the quarter with a record 6.1 GW order book and around 1 GW of fresh order additions.
The shares of this renewable energy solutions provider are primarily engaged in the manufacturing of wind turbine generators and the development, installation, operation, and maintenance of wind energy projects are in the spotlight after falling by 7 per cent in today’s market session following the reporting of Q1 results despite its strong order book.
With a market capitalisation of Rs. 67,990 cr, the shares of Suzlon Energy Ltd were trading at Rs. 49.48 per share, dropping 7% in today’s market session, making a low of Rs. 49.31, down from its previous close of Rs. 53.15 per share.
Q1 Performance
Suzlon Energy reported net volumes rising 14% YoY to 506 MW from 444 MW. Revenue from operations increased 22.5% YoY to Rs. 3,819 crore compared to Rs. 3,117 crore. However, EBITDA remained largely flat at Rs. 595 crore versus Rs. 599 crore, while the EBITDA margin declined to 15.6% from 19.2%. Profit before tax fell 15% YoY to Rs. 390 crore from Rs. 459 crore, and net profit declined 5.9% YoY to Rs. 305 crore compared to Rs. 324 crore.
On a sequential basis, net volumes declined 39% QoQ to 506 MW from 830 MW. Revenue from operations decreased 30.2% QoQ to Rs. 3,819 crore from Rs. 5,468 crore. EBITDA dropped 38.3% QoQ to Rs. 595 crore from Rs. 964 crore, with the EBITDA margin narrowing to 15.6% from 17.6%. Profit before tax declined 53.2% QoQ to Rs. 390 crore from Rs. 833 crore, while net profit fell 72.6% QoQ to Rs. 305 crore from Rs. 1,114 crore.
Operating Highlights
Suzlon Group reported its highest-ever Q1 deliveries, with 506 MW delivered during Q1 FY27, marking a 14% YoY increase. Commissioning also witnessed strong momentum, rising to 269 MW, which was 2.3 times higher than the corresponding quarter last year.
The company recorded around 1 GW of new order additions during the quarter, including two large DevCo-led EPC orders from Tata Power and Waaree Group. Its cumulative order book reached approximately 6.1 GW, with 84% of orders coming from the PSU and commercial & industrial (C&I) segments. The EPC business also gained traction, with its share increasing to 32% from 22% in Q1 FY26, in line with the company’s market strategy.
During the quarter, Suzlon unveiled its new S175 (5 MW) wind turbine platform in both India and Europe and secured its first domestic order for the platform. The company also introduced its Suzlon 2.0 strategy, restructuring its operations into four business verticals: RE Tech, RE DevCo, RE Projects, and RE AMS, to strengthen its long-term growth and renewable energy ecosystem.
In conclusion, while Suzlon’s near-term profitability came under pressure, the company continues to strengthen its long-term growth outlook through record order additions, a robust 6.1 GW order book, the launch of its 5 MW wind turbine platform, and the Suzlon 2.0 strategy.
Going forward, sustained execution, margin recovery, and timely conversion of its order book into revenue will be key factors in determining whether the company can justify its long-term growth potential.
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