Suzlon Energy share price jumped to Rs 59.48 but the stock couldn't maintain the early gains. The stock was trading slightly lower at the time of publication of this report. Suzlon Energy has been suggested as a BUY Trade by research major Geojit Financial Services. In its March 24, 2025 report, Geojit Financial Services maintained a ‘Buy’ rating on Suzlon Energy with a revised target price of Rs 71, implying a potential upside of 26% from the current market price of Rs 56. Despite moderation in installation guidance and margin pressures from the O&M segment, Geojit remains optimistic on Suzlon's long-term prospects. The outlook is bolstered by a robust order pipeline from the Commercial & Industrial (C&I) segment, capacity ramp-ups, and a stronger balance sheet. The stock is expected to benefit from a recovery in wind energy capex, a superior product mix, and operational efficiency gains.

Jindal Renewables Becomes Suzlon’s Largest C&I Customer

Suzlon secured a third repeat order from Jindal Renewables for 204.75 MW, bringing the total order volume from the client to 907.2 MW.

This marks a significant milestone for Suzlon, positioning Jindal Renewables as its largest C&I client to date. The project entails deployment of 65 S144 Wind Turbine Generators (WTGs) equipped with hybrid lattice towers, each rated at 3.15 MW, for captive consumption in steel facilities across Chhattisgarh and Odisha.

The order will be executed in Tamil Nadu’s Karur region and is part of Jindal’s broader ambition to develop 12 GW of renewable capacity by 2030, including storage and green hydrogen.

Orderbook Grows, C&I Now Dominates the Mix

Total orderbook stands at 5.9 GW, with C&I projects comprising 59% of the total—a testament to the sector’s accelerating demand for clean, captive energy solutions.

C&I demand is driving both WTG deliveries and O&M service volumes. Management’s strategic focus on this vertical is already yielding visibility and margin tailwinds.

Suzlon’s capacity expansion efforts—including revamps at Pondicherry and new blade lines in Madhya Pradesh and Rajasthan—enable the company to serve this growing demand efficiently.

Installation Guidance Trimmed; Execution Risks Priced In

WTG installation guidance for FY25 has been revised downward to 3.5–4 GW from 4.5–5 GW.

Geojit attributes this adjustment to execution bottlenecks such as land acquisition delays and transmission constraints. The installation-to-delivery ratio remains low at 0.25x for 9MFY25.

Consequently, revenue estimates for FY26/FY27 have been cut by 10% and 21% respectively, aligning with execution realities while still anticipating long-term order inflow resilience.

Q3FY25 Earnings Reflect Margin Expansion

Suzlon posted strong YoY growth in Q3FY25:

Wind turbine generator (WTG) margins expanded by 909 bps, while forging and foundry segments improved by 704 bps. However, the OMS segment saw a 533 bps margin decline due to the full consolidation of Renom.

Financial Outlook: Double-Digit PAT Growth Expected Through FY27

Suzlon is projected to grow PAT at a 30% CAGR between FY25–27, supported by improving operating leverage, a better product mix, and growing exports.

Forecast highlights:

• FY25 Revenue: Rs 10,933 crore
• FY27 Revenue: Rs 15,740 crore
• EBITDA Margins: Expected to expand to 16.7% in FY27
• Adjusted EPS: Rs 1.1 (FY25E), Rs 1.8 (FY27E)

Balance Sheet Strengthens with Net Cash Position

As of December 2024, Suzlon holds net cash of Rs 1,107 crore and net worth of Rs 4,914 crore.

Capital expenditure is ramping up as manufacturing capacity increases, but financial risk remains low. Debt levels are declining, with Debt-to-Equity expected to turn negative (-0.3x) by FY27.

Strong internal accruals and improving working capital discipline support sustained capex without balance sheet strain.

Valuation: Target Price Rs 71 Based on FY27E EPS

Geojit values Suzlon at a 40x P/E on FY27E EPS, yielding a fair value estimate of Rs 71, implying a 26% upside from the CMP of Rs 56.

Valuation metrics:

The valuation reflects a blend of operational recovery and sector tailwinds, supported by India’s energy transition roadmap.

Investment Strategy and Conclusion

Despite installation bottlenecks and short-term margin fluctuations, Suzlon’s fundamentals remain intact, bolstered by:

C&I segment growth

Strong margin trajectory

Net cash position

Capacity ramp-up and diversified order book

Geojit’s ‘Buy’ recommendation reflects a high-conviction view with a one-year price target of Rs 71. Investors with a medium- to long-term horizon may consider accumulating the stock on dips.