Suzlon Energy Share Price declined 4.3 percent on Tuesday, again facing rejection around Rs 73-75 zone. Suzlon Energy will now need a strong close above Rs 75 for the bullish move to continue. Suzlon witnessed a strong rally after the company declared strong quarterly numbers. However, the profit booking at higher levels suggests that Suzlon needs more accumulation at lower levels before the next rally. Suzlon is currently looking strong fundamentally and we can expect technical charts to also suggest strength in the coming trading sessions. Overall view for the stock is positive. Following an extraordinary Q4 FY25 performance, the company has become a focal point for analysts and traders alike. While recent days have brought notable volatility and profit booking, the overarching narrative remains one of a revitalized business with powerful tailwinds.

Stock Price Movements Reflect a Healthy Correction, Not a Crisis

Suzlon’s stock, which had surged on the back of exceptional Q4 earnings, is now experiencing what seasoned market watchers recognize as a textbook cooldown. On June 3, 2025, the stock dropped by 4.3%, closing at Rs 68.13, well below its recent peak of Rs 86.04. This 21% decline from the top may appear alarming on the surface, but the stock remains up 20% over the last month, maintaining strong momentum despite the short-term pullback.

Trading activity underscores this view. On June 3 alone, 267.87 lakh shares exchanged hands, driving a total turnover of Rs184.2 crore. Importantly, Suzlon’s market capitalization had briefly breached Rs1 lakh crore post-results, a psychological milestone for investors and the broader renewable energy ecosystem.

Technical signals suggest a new equilibrium is forming. Analysts are placing support at Rs64–68, while resistance is expected around Rs75. The Relative Strength Index (RSI) hitting 75.6 in recent sessions indicates that the stock had entered overbought territory prior to the sell-off—further justifying the recent correction as a healthy recalibration rather than a signal of distress.

Q4 FY25: A Financial Watershed Moment

The standout moment for Suzlon came in its Q4 FY25 results, which delivered a slew of positive surprises across revenue, profit, and margins. The company reported a net profit of Rs1,181 crore, marking a staggering 364% year-on-year jump—a result bolstered by a Rs600 crore deferred tax gain. Even without that exceptional item, the profit more than doubled YoY, illustrating solid core performance.

Revenue from operations rose 73–74% YoY to Rs3,773 crore, with EBITDA margins reaching 18.3%, up 200 basis points. For the full year, EBITDA margins stood at 17.1%, a 130bps improvement over FY24. These figures weren’t just cosmetic gains—they signaled fundamental operating leverage and more profitable project execution.

Operational performance was equally impressive. Suzlon installed 573 MW of wind capacity in Q4 alone, surpassing expectations. For the year, the company delivered 1,550 MW, and installed 336 MW on the ground. The total order book reached 5.6 GW as of May 2025, nearly 3.6 times the FY25 volume, offering enviable revenue visibility.

Guidance for FY26: Management Steps Into the Spotlight

For the first time in its recent history, Suzlon’s management issued formal forward guidance—a move that further buoyed investor confidence. They expect at least 60% year-on-year growth across deliveries, revenue, EBITDA, and adjusted PAT in FY26.

This aggressive outlook aligns with broader market dynamics. India’s wind energy installations, which stood at 4.2 GW in FY25, are forecasted to rise to 6 GW in FY26, then 7–8 GW in FY27, and 9 GW by FY28, according to management’s projections. These figures mark a seismic uptick, driven by both government policy and private sector demand.

Crucially, Suzlon continues to dominate the Commercial & Industrial (C&I) segment and maintains a near-duopoly in EPC plus WTG (Wind Turbine Generator) capabilities. The company currently holds over 30% market share, reinforcing its competitive moat.

Financial Repositioning: From Debt-Laden to Net Cash Positive

In what many consider a remarkable transformation, Suzlon has effectively rewritten its financial story. The company reduced its debt burden from Rs12,000 crore in FY20 to a net cash position by September 2024, bolstered by an equity raise that brought reserves up to Rs1,300 crore.

This deleveraging is more than cosmetic. It allows Suzlon to pursue growth opportunities without being shackled by interest expenses or refinancing risks. It also gives management greater flexibility in responding to sectoral shifts and policy developments.

Analyst Consensus: Bullish Across the Board, With Measured Expectations

The analyst community has responded with widespread upgrades, even amid short-term market turbulence. Below is a snapshot of key brokerage insights and target prices:

While six analysts rate the stock a ‘Buy’ and two hold a ‘Hold’ stance, notably, none have issued a ‘Sell’ recommendation.

Motilal Oswal cited a premium valuation multiple of 35x FY27E EPS, justified by execution strength and sector tailwinds. JM Financial highlighted Suzlon’s structural advantage as Chinese imports wane, while Morgan Stanley emphasized margin resilience and volume growth.

Nuvama remains more cautious, upgrading their target from Rs61 to Rs68 but stopping short of a ‘Buy,’ citing valuation concerns despite acknowledging stronger FY26–27 estimates.

Sectoral Momentum and Peer Comparisons

Suzlon is riding a broader wave in the Indian renewable energy landscape. Government policies targeting 500 GW of non-fossil fuel capacity by 2030 have infused fresh capital and enthusiasm into the sector. Restrictions on Chinese imports, coupled with incentives for local manufacturing, position Suzlon favorably against international competitors.

The company is outpacing peers in terms of expected growth. While the sector average revenue growth is pegged at 20%, analysts estimate that Suzlon will grow at an annualized 65% through 2026. This dwarfs its own historical growth rate of 23% over the past five years, demonstrating a new inflection in performance.

Peer companies such as Tata Power, Adani Green Energy, and Inox Wind have seen similar short-term corrections but remain strategically bullish in the long run. Among them, Suzlon’s order book depth and financial cleanup make it arguably the most investable wind energy play at this juncture.

Key Metrics (Q4 FY25): Financial Table

Risks and Near-Term Volatility

Despite a strong long-term case, risks remain. The recent Rs76.19 lakh penalty from Mumbai Customs was minor but symbolic, reminding investors of potential regulatory headwinds. Execution challenges such as land acquisition and grid connectivity remain persistent bottlenecks in India’s renewable infrastructure rollout.

Profit booking, speculative trading, and a high RSI reading suggest short-term caution is warranted. However, none of these materially undercut Suzlon’s long-term trajectory.

Strategic Takeaway: Navigating the Now, Betting on the Next

Suzlon Energy has transitioned from a cautionary tale of corporate debt to a case study in industrial revival. While short-term volatility may continue, driven by overbought technicals and profit-taking, the company’s financial robustness, operational excellence, and strategic positioning in a booming sector make it a compelling long-term investment.

Investor Outlook:

Short-Term: Monitor for consolidation around Rs64–Rs68. A breakout above Rs75 could signal a new uptrend.

Medium to Long-Term: Backed by a strong order book, credible management guidance, and a revitalized balance sheet, Suzlon is likely to remain a top performer in the renewable energy segment.

Bottomline: Suzlon’s fundamentals remain wind at its back. Investors prepared to look beyond short-term gusts may find clear skies ahead.