Synopsis:
A leading wind energy firm secured an 838 MW Tata Power order, boosting its 6.5 GW order book. Q1FY26 revenue rose 55% YoY, net profit 7%. Strong domestic demand, export plans, and supportive policies underpin confident growth and margin outlook.
India’s Heavy Electrical Equipment sector serves the power and industrial segments, producing boilers, turbines, transformers, and switchgears. Driven by rapid infrastructure growth and energy transition, the sector will reach a market size of USD 95.3 billion by 2029, expanding at a robust CAGR of 15.6%. India ranks third globally in electricity production.
With a market capitalization of Rs 81,318.92 crore, the share of Suzlon Energy Ltd were trading at Rs 59.30 per share, increasing around 0.03 percent as compared to the previous closing price of Rs 59.28 apiece.
Brokerage Recommendations
UBS, one of the well-known brokerages globally, gave a ‘Buy’ rating on this wind energy stock with a target price of Rs 78 apiece, indicating a potential upside of 32 percent from Thursday’s price of Rs 59 per share.
Recently, Suzlon secured an 838 MW wind power order from Tata Power, marking its second-largest deal and third collaboration with the utility. The project involves 266 S144 wind turbines of 3.15 MW each, spread across Karnataka, Maharashtra, and Tamil Nadu, strengthening Suzlon’s order book and reinforcing its leadership in India’s renewable energy expansion.
Additionally, Suzlon’s order book has surpassed 6.5 GW with this deal, taking FY26 intake to 1.8 GW and aligning with UBS’s 3.5 GW forecast. This marks its second-largest order after NTPC Green’s 1,544 MW project, highlighting strong demand momentum and supporting sustainable execution growth in India’s wind energy sector.
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Operational & Financial Highlights
The company delivered strong topline growth in Q1FY26 with revenue rising 55 percent year-on-year to Rs 3,132 crore. Net profit showed moderate growth of 7 percent, reaching Rs 324 crore compared to Rs 302 crore last year, reflecting solid business momentum despite margin pressures.
The company’s order book remains strong with 54% from Commercial and Industrial (C&I), 21% PSU, and 25% bid segment, minimizing execution risks. Further, the company also undertakes operations and management under the OMS segment over 15 GW with high margins, while SE Forge delivers record growth, expanding into exports. Renom adds 3 GW AUM. ALMM regulations are expected to further strengthen forging and casting opportunities.
The company has guided for 60% year-on-year growth in FY26 across volumes, revenue, and EBITDA. Deliveries are expected to follow a 40-60 split between H1 and H2. Management remains confident of meeting these targets despite challenges, backed by clear visibility on ongoing and upcoming projects that support strong execution momentum.
The company is actively exploring export opportunities in neighboring countries, the Middle East, and Europe, while avoiding the U.S. market for now. It expects to begin offering and securing export orders by the end of FY26, followed by a gradual ramp-up in international business expansion.
Management maintains a confident and optimistic outlook on growth, execution, and margins. While challenges like land and evacuation exist, clear mitigation strategies are in place. With strong order book visibility, a healthy pipeline, and supportive policies, the outlook remains positive. ALMM regulations are viewed as a structural boost for Suzlon and the broader domestic supply chain.
Written by Abhishek Singh
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