India’s wind energy sector is a vital component of its renewable energy landscape, currently boasting an installed capacity of over 47 GW, ranking fourth globally. The government aims to achieve 140 GW by 2030 as part of its commitment to reach 500 GW of renewable energy capacity, underscoring its role in sustainable development and carbon reduction efforts.
With a market capitalization of Rs 85,111.55 crore, on Thursday, the shares of Suzlon Energy Ltd closed at Rs 62.34 per share, increasing around 5 percent as compared to the previous closing price of Rs 59.40 apiece.
Brokrage Reccomdation:-
Morgan Stanley, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 71 apiece, indicating a potential upside of 20 percent from tuesday’s low of Rs 59.40 per share.
Brokerage rational:-
As per the brokerage, the company has strong business and its position as a key beneficiary of India’s energy transition. The company boasts a robust 5.1GW order backlog executable over the next two years, with a prudent focus on orders with higher offtake visibility.
Moreover, Suzlon’s market share in India is expected to improve to 35-40 percent by FY27, according to Morgan Stanley, which also forecasts India’s wind additions to generate 32GW of demand worth $31 billion for wind OEMs between FY25 and FY30.
Financial performance:-
The company’s revenue surged 48%, increasing from Rs 1,421 crore in Q1FY24 to Rs 2,103 crore in Q1FY25. However, net profit zoomed by 97%, jumped from Rs 102 crore to Rs 201 crore, indicating strong revenue and profitability growth during the same period.
Revenue Split:-
In FY23-24, Suzlon Energy’s total segment revenue reached ₹2,092 crore in Q2FY25, a 1% increase from ₹2,015 crore in Q2FY24. The majority of revenue, 70% came from the Wind Turbine Generator segment, followed by foundry & Forging at 3%, operation & Maintenance Services at 26%, and other sources contribute the remaining 0.1%.
In addition to the above paragraphs, the company is generating most of its revenue from Wind Turbine Generator but in terms of profits, 97 percent of profits come from operation & maintenance services which stand at Rs 195.82 crores followed by Wind Turbine Generator of Rs 42.82 crore, foundry & Forging profits stand at Rs (0.57) crore, and at last other sources contributing the remaining Rs 1.69 crore.
Market leader:-
Suzlon Energy Ltd has a market leader position with a 32 percent market share in the financial. In 2024, the company has 20.8 GW global installed wind energy capacity.
Key Developments:-
The company secured a record 1.166 GW wind order from NTPC Green, boosting its order book to over 5 GW with firm financial backing. Acquiring Renom marks entry into multi-brand O&M, enhancing fleet size and profitability. Corporate and non-core asset sales yielded ₹440 crore.
Operational Performance:-
In Q2 FY25, the company delivered 256 MW, the highest Q2 delivery in seven years, up from 132 MW last year. It is now a preferred supplier for PSU and C&I clients, focusing on high-value orders. OMS business remains strong, with 15 GW capacity and 96% machine availability.
Market Outlook:-
The company projects wind installations of 5 GW in FY25, rising to 6-7 GW in FY26 and 9-10 GW annually thereafter, driven by India’s renewable energy demand from industrialization, urbanization, and E-mobility. Management highlights its end-to-end wind energy solutions, underscoring a strong competitive advantage.
Future Capacity and Margins:-
The company’s manufacturing capacity of 3.1 GW is set to expand to 4.5 GW by FY25-end. WTG business gross margins are anticipated in the mid-to-late teens, while OMS business margins are projected around 65%. Management aims to maintain these margins despite growth in capacity.
Order Book:-
Management plans to execute the full 5.1 GW order book within 18-24 months. Supply for NTPC orders are set to begin by Q2 FY25, with major deliveries expected from Q4 onward, ensuring strong order fulfillment momentum through FY26.
Company profile:-
Suzlon Energy Limited is an Indian renewable energy solutions supplier. The company manufactures wind turbine generators and related components in various capacities. It operates in 17 countries including Asia, Australia, Europe, Africa, and the Americas.
Written by:- Abhishek Singh
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