India’s wind energy sector ranks fourth globally, with an installed capacity of 48.16 GW in FY 2024, expected to reach 89.49 GW by FY 2030 at a CAGR of 11.26 percent. It contributes 10 percent of India’s utility power and generated 71.814 TWh in FY 2022–23, driving clean energy goals
Price movement
With a market capitalization of Rs 78,723.90 crore, the shares of Suzlon Energy Ltd were trading at Rs 57.66 per share, increasing around 0.07 percent as compared to the previous closing price of Rs 57.62 apiece.
Brokerage recommendations
Motilal Oswal, one of the well-known brokerages in India, gave a ‘Buy’ call on the Wind energy stock with a target price of Rs 70 apiece, indicating a potential upside of 22 percent from Wednesday’s price of Rs 57.60 per share.
Brokerage Rational
The brokerage noted, “By 2030, wind energy is expected to account for 20 percent of India’s renewable energy mix, compared to 39 percent in the US and Germany, 33 percent in China, and 42 percent in the UK, highlighting the need for more focus on wind energy development.”
Moreover, Suzlon Energy’s order execution is expected to rise from 710MW in FY24 to 3.2GW in FY27, lowering per-unit fixed costs and boosting margins. Motilal Oswal projects a 63 percent PAT CAGR over FY24-27.
Furthermore, the brokerage views Suzlon Energy’s shares as reasonably valued, citing an estimated EPS CAGR of 63 percent over FY24-27. On a PEG basis, Suzlon trades at a favorable FY26E PEG ratio of 0.6x, positioning it below other domestic capital goods peers.
Additionally, Suzlon Energy expects India’s wind energy installations to reach 4GW in FY25, 6GW in FY26, and 7-8GW annually from FY27 onward. This growth potential strengthens its Engineering, Procurement, and Construction (EPC) and Operations and Management Services (OMS) businesses, positioning them for significant expansion.
Manufacturing Capacity
The company expanded its manufacturing capacity to over 4.5 GW with upgraded facilities in Pondicherry and new blade lines in Madhya Pradesh and Rajasthan. Its S144 model has a strong 5 GW order book, with 85 percent of components sourced domestically under the “Made in India” initiative.
Execution and Deliveries
The company achieved a record 447 MW delivery in Q3, a 163 percent YoY rise from 170 MW. With 977 MW delivered in nine months, it surpassed FY24’s 710 MW total. Industry-wide, 2,277 MW was commissioned, though transmission delays and land issues impacted progress.
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Operational Highlights
The company’s 80 percent order book consists of non-EPC orders, focusing on those with partial land availability for better commissioning. Key orders from NTPC, Jindal Renewables, and Torrent Power have substantial land availability for FY26. The O&M business manages 15 GW in India with 96 percent+ machine availability.
Strategic Initiatives
Suzlon, a UN Global Compact member, aligns with the Net Zero by 2050 goal. It plans to diversify within WTG through advanced project development contracts totaling 1,100 MW and is exploring export opportunities based on domestic market saturation and capacity utilization.
Market leader
Suzlon Energy Ltd has a market leader position with a 31 percent market share as per the latest filing, the company has 20.8 GW global installed wind energy capacity.
Margin Guidance
The company expects consolidated contribution margins to stabilize around 20 percent, adjusting for steel prices and project execution. O&M margins should remain near 40 percent, though quarterly fluctuations may occur due to one-off items.
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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