Suzlon Energy is entering a new phase of growth as it transforms itself from a traditional wind turbine manufacturer into a comprehensive renewable energy solutions provider. ICICI Securities believes the company’s strategic shift toward integrated wind, solar and energy storage offerings significantly expands its long-term opportunity set. Backed by a robust 5.5 GW order book, improving profitability, and ambitious FY31 growth targets, Suzlon is positioning itself to capitalize on India's accelerating renewable energy transition. While execution and order conversion remain critical factors to monitor, the brokerage remains optimistic about the company's prospects and has reiterated its BUY recommendation with a target price of Rs 65.

ICICI Securities Reaffirms Confidence in Suzlon Energy

ICICI Securities has maintained its BUY recommendation on Suzlon Energy with an unchanged target price of Rs 65, implying an upside potential of nearly 18% from the current market price of Rs 55.

The brokerage believes the company has successfully completed a significant balance-sheet repair phase over the last three years and is now preparing for a broader growth trajectory. Suzlon's management unveiled its long-term strategic blueprint, dubbed "Suzlon 2.0," during its June 2026 investor interaction, outlining a vision that extends far beyond its traditional wind turbine business.

From Wind Turbines to Full-Scale Renewable Energy Solutions

The most important strategic development is Suzlon's transformation into a full-stack renewable energy platform.

Historically, the company focused on wind turbine manufacturing, engineering, procurement and construction (EPC), and operations and maintenance services. Under the new framework, Suzlon plans to participate across the entire renewable energy value chain, including:

• Project development
• Wind power solutions
• Solar power integration
• Battery energy storage systems
• Asset management services
• Energy management platforms

Management believes this expanded ecosystem will enable the company to capture larger project opportunities while deepening customer relationships through integrated solutions.

Why Suzlon Is Betting Big on Hybrid Renewable Projects

The renewable energy market is rapidly shifting toward Firm and Dispatchable Renewable Energy (FDRE) solutions.

As solar power installations continue to dominate capacity additions, power grids face increasing supply-demand imbalances, particularly during evening hours when solar generation declines.

Suzlon believes combining wind power with solar generation and battery storage offers a more efficient solution to address these challenges. Industry tender structures are increasingly favoring hybrid renewable projects, round-the-clock power contracts and FDRE models.

According to the brokerage, this trend significantly increases Suzlon's total addressable market and strengthens the rationale behind the company's diversification strategy.

DevCo Strategy Could Become a Major Competitive Advantage

One of Suzlon's most innovative initiatives is its Development Company (DevCo) model.

Renewable energy projects often face delays due to land acquisition, right-of-way approvals and grid connectivity issues. Rather than waiting for customers to resolve these bottlenecks, Suzlon intends to secure critical project resources before signing contracts.

Management expects this approach to reduce project execution timelines from approximately two to three years to just 15-18 months.

If successfully implemented, the DevCo model could become a significant competitive moat by improving project visibility, accelerating revenue realization and reducing execution uncertainty.

Ambitious FY31 Growth Roadmap Signals Management Confidence

Suzlon has outlined aggressive long-term targets that reflect confidence in both market growth and execution capabilities.

The company is targeting a revenue CAGR exceeding 25% between FY27 and FY31 while maintaining a relatively asset-light diversification strategy. Solar expansion will primarily occur through partnerships, while battery storage investments will include a proposed 3 GWh battery assembly facility.

Export Markets Offer a New Growth Avenue

Suzlon sees substantial international opportunities as global wind energy capacity continues to expand.

Management estimates that its addressable export markets could offer approximately 74 GW of opportunities over the next five years, alongside nearly 18 GW of repowering potential.

The company's next-generation "Blue Sky" turbine platform is being developed with country-specific certifications, enabling Suzlon to participate more effectively in international markets. The company is targeting export order intake exceeding 3 GW by FY31.

Financial Performance Continues to Strengthen

The brokerage expects strong earnings growth over the next two years.

The company is expected to maintain healthy profitability while benefiting from operating leverage and increasing scale across its renewable energy operations.

Order Book Provides Strong Near-Term Visibility

Suzlon's order book remains one of its strongest investment arguments.

As of March 2026, the company reported an order book of approximately 5.7 GW, equivalent to around 2.3 times its FY26 wind turbine delivery volume. This provides substantial revenue visibility while management builds the foundation for future growth initiatives under the Suzlon 2.0 framework.

ICICI Securities believes the combination of a strong order pipeline, industry tailwinds and expanded service offerings creates a compelling long-term growth story.

Investment View, Levels and Risks

Recommendation: BUY

Current Market Price: Rs 55

Target Price: Rs 65

Potential Upside: 18%

Valuation Basis: 32x FY28 estimated EPS

The brokerage believes Suzlon is uniquely positioned to benefit from India's renewable energy expansion, particularly as hybrid and dispatchable renewable energy projects gain prominence.

However, investors should closely monitor:

• Order inflow momentum
• Execution timelines
• Conversion of development projects into commercial orders
• Expansion into solar and storage businesses
• Export market penetration

Conclusion

Suzlon appears to be transitioning from a turnaround story into a long-duration renewable energy growth platform.

The company's move beyond wind turbines toward integrated renewable solutions significantly broadens its opportunity landscape. With a sizable order book, ambitious FY31 goals, improving financial metrics and strong positioning in India's energy transition, Suzlon remains one of the more compelling renewable energy plays in the domestic market. Successful execution of the Suzlon 2.0 strategy could potentially unlock a much larger growth runway over the coming years, supporting ICICI Securities' constructive outlook on the stock.