Motilal Oswal Financial Services has reaffirmed its BUY recommendation for Suzlon Energy, establishing a price target of Rs 74 per share—representing a compelling 43% upside from the current market price of Rs 52. The brokerage house's confidence stems from the company's commanding 6.2 GW order book, robust manufacturing capacity of 4.5 GW annually, and burgeoning export opportunities that position Suzlon at the vanguard of India's renewable energy transformation. With management projecting annual wind installations to reach 10 GW by FY28 and India's wind capacity trajectory targeting 100 GW by 2030, the research underscores Suzlon's strategic advantages, including its engineering, procurement, and construction (EPC) footprint across 23 GW of wind sites nationwide.​

Bullish Investment Thesis Reinforced

Motilal Oswal's equity research division has maintained its optimistic stance on Suzlon Energy following comprehensive field visits to the company's Pondicherry manufacturing facility and extensive consultations with senior leadership. The brokerage projects revenue expansion from Rs 171.4 billion in FY26E to Rs 271.6 billion by FY28E, accompanied by EBITDA margins hovering between 17-18%. Adjusted profit after tax (PAT) is forecast to surge 58% year-over-year in FY27E to Rs 29.6 billion, followed by another 14% growth to Rs 33.9 billion in FY28E. The valuation methodology employs a target price-to-earnings multiple of 30x applied to FY28E earnings per share of Rs 2.5, approximating the historical two-year forward PE average of 27x.​

Manufacturing Prowess and Capacity Augmentation

Suzlon currently operates with an annual manufacturing capacity of 4.5 GW, supported by a workforce exceeding 7,579 employees across its facilities. The Pondicherry plant alone commands a 2.8 GW capacity for wind turbine generator (WTG) and nacelle cover production, equivalent to three turbine sets daily for the 3.15 MW S144 platform. The facility occupies 66 acres with merely 30% utilization at present, operating a single shift with approximately 500 employees, yet maintains flexibility to scale to three shifts accommodating 1,500 workers when market demand accelerates. Management has articulated ambitious expansion plans through three new smart-blade manufacturing facilities—two confirmed locations in Gujarat and Karnataka, with a third site to be finalized within the next two to three months. These strategic investments aim to compress turnaround times, enhance geographic proximity to customers and installation sites, and optimize logistics efficiency.​

Dominant Order Book Position

Suzlon has secured a formidable 25% share of India's total wind energy orders, positioning the company as the undisputed market leader. India's installed wind base currently stands at 52 GW, with orders placed for 24.4 GW and Suzlon commanding 6.2 GW of this pipeline. Management emphasized that approximately 15 GW of wind orders remain in various stages of bidding and award processes, providing substantial revenue visibility despite the temporary deceleration in central renewables tendering.​

Export Expansion as Strategic Growth Vector

Suzlon's management articulated an unequivocal vision for international market penetration, noting that current turbine platforms have achieved 90-95% export readiness for most global markets. The remaining customization requirements—encompassing grid code compliance, regulatory certifications, and minor product modifications—can typically be completed within 12-18 months without significant capital expenditure. According to the Global Wind Energy Council (GWEC), India could capture 10% of the global wind supply chain by 2030, with management projecting this share to escalate to 20% by 2035. The company anticipates enhanced clarity regarding export opportunities to materialize over coming quarters, representing incremental revenue streams beyond domestic market constraints.​

Renewable Energy Secular Mega-Trend

India's energy landscape confronts a structural transformation, with renewable capacity projected to expand from 180 GW in FY25 to a staggering 1,600 GW by 2047. Wind capacity specifically is anticipated to surge from 53 GW to 400 GW over this period, representing utilization of merely 35% of India's assessed wind potential of 1,142 GW. Power demand is forecast to grow at a 5% compound annual rate, propelled by emerging electrification applications including artificial intelligence data centers, electric vehicles, and green hydrogen production, collectively accounting for nearly 30% of future consumption. Energy-intensive manufacturing's contribution to India's industrial output is expected to rise from 27% currently to 34% by 2047, necessitating substantial renewable capacity additions.​

Technology Leadership and Operational Excellence

Suzlon has demonstrated exceptional technological advancement in wind generation forecasting, achieving 98% accuracy at 15-minute prediction intervals, with ongoing efforts to refine this capability to 10-minute intervals. The company's operational track record reveals that over 95% of deployed turbines continue meeting original lifecycle performance assumptions, validating design integrity and maintenance protocols. The company's EPC strategy of securing land parcels across 23 GW of potential wind sites nationwide provides competitive differentiation versus domestic and Chinese competitors, strengthening Suzlon's role in the long-term capacity expansion plans of major power generators. Current EPC contribution stands at 20% of total business, with management targeting 50% by 2028.​

Financial Performance Trajectory

Motilal Oswal's financial projections underscore robust growth metrics, with net sales anticipated to grow 57% in FY26E and 35% in FY27E before moderating to 17% growth in FY28E. Return ratios demonstrate impressive enhancement, with Return on Equity (RoE) climbing to 29.1% in FY27E and Return on Invested Capital (RoIC) expanding from 12.2% to 15.2% across the forecast period. The company's balance sheet exhibits strengthening fundamentals, with net debt-to-equity ratio projected at negative 0.5x by FY28E, signifying a net cash position.​

Valuation Metrics and Price Target

Trading at a current market price of Rs 52, Suzlon's equity is valued at 38.0x FY26E earnings, 24.0x FY27E earnings, and 21.0x FY28E earnings. The enterprise value-to-EBITDA multiple compresses from 23.1x for FY26E to 13.0x by FY28E, reflecting accelerating profitability. Motilal Oswal's target price of Rs 74 per share implies a forward PE multiple of 30x on FY28E EPS of Rs 2.5, delivering a 43% potential return from prevailing levels. The book value per share is forecast to expand from Rs 6.4 in FY26E to Rs 11.0 by FY28E, underpinning intrinsic value appreciation.​

Risk Mitigation Factors

Management articulated confidence that the temporary pause in central government renewable energy bidding will exert minimal impact on Suzlon's near-term order flows, given that 15 GW of wind orders remain in the pipeline at various bidding and award stages. The potential cancellation or re-bidding of 40 GW of power purchase agreements (PPAs)—predominantly solar and solar-storage projects—reflects increasing market reality that demand fundamentals must guide supply additions, inherently enhancing wind energy's strategic importance in India's generation mix. Growing demand from artificial intelligence data centers and rising commercial and industrial (C&I) electrical loads represent upside potential beyond India's baseline 100 GW wind target by 2030. India's wind installations are projected to exceed 10 GW annually by 2028, supported by improved state-level grid connectivity and incremental C&I demand.