Suzlon Energy reported strong quarterly numbers and the stock jumped on Friday. Suzlon Energy has witnessed a strong breakout on technical charts and the stock could reach fresh yearly highs in the coming sessions. ICICI Securities has suggested Rs 76 target price for Suzlon Energy but the stock was quite close at Rs 74.30 during Friday's bullish move. While ICICI's target price could seem not much different from current closing at Rs 71.35 for Suzlon but the BUY Call suggests positive view on the counter.

ICICI Securities Advocates Suzlon Energy as Prime Renewable Energy Play With Rs 76 Target

ICICI Securities has reaffirmed its BUY rating on Suzlon Energy with a revised target price of Rs 76, signaling 17% upside potential from current levels. The wind turbine manufacturer reported explosive Q4FY25 growth: revenue surged 73% YoY to Rs 38 billion, EBITDA jumped 94% to Rs 7 billion, and adjusted profit doubled to Rs 5.8 billion. With a record 5.6GW order book and 60% execution growth guidance for FY26, Suzlon positions itself as India’s renewable energy linchpin. The research firm highlights improved margins, debt-free status, and policy tailwinds as catalysts for sustained outperformance.

Financial Fireworks: Suzlon’s Quarter for the History Books

Execution velocity reached unprecedented levels with 573MW wind turbine deliveries in Q4 – a 110% YoY surge that propelled annual volumes to 1,550MW. This operational muscle flexing translated directly to financial gains:

The Order Machine: 3.6x Execution Buffer Secures Future

Suzlon’s order book now stands at 5.6GW – equivalent to 3.6 years of FY25 execution volumes. Recent mega-deals include:

• 1.2GW from NTPC Green Energy
• 900MW from Jindal Renewables
• 500MW from Torrent Power

PSU contracts now constitute 80% of the pipeline, insulating the company from private sector volatility. Management guidance suggests 60% YoY growth in deliveries and revenues for FY26, backed by 4.5GW manufacturing capacity.

Margin Mastery: Structural Improvements Bear Fruit

The company achieved 17.1% EBITDA margin in FY25 – a 130bps YoY expansion – through:

• Improved tower design reducing steel consumption
• Localized supply chain minimizing forex risks
• Higher-margin O&M services contributing 15% to revenue

With 100% domestic manufacturing compliance anticipated under new DCR guidelines, Suzlon gains unassailable pricing power against international competitors.

Valuation & Risks: Growth Priced at 40x FY27 Earnings

ICICI Securities values Suzlon at 40x FY27 EPS of Rs 1.9, factoring in:

• 20% CAGR in wind installations through FY30
• Rs 1.1 trillion addressable market by 2030
• Debt-free balance sheet with Rs 13bn cash reserves

Key risks include land acquisition delays and potential tariff wars. However, the 3.6x order book coverage provides unprecedented visibility, making Suzlon a rare growth-at-reasonable-price story in India’s renewable sector.

Strategic Positioning: Riding India’s Green Wave

Suzlon dominates India’s wind turbine market with 33% market share, strategically positioned to capitalize on:

• 10GW annual wind tenders by MNRE
• FDRE (Firm & Dispatchable Renewable Energy) mandates
• C&I segment’s shift to round-the-clock renewable power

The company’s 4.5GW capacity can scale to 5.5GW without major capex, creating operational leverage as utilization improves. With ESG funds allocating $2.3bn to Indian renewables in 2025, Suzlon stands as the prime proxy play for green energy institutional flows.

Final Verdict: Wind in the Sails for Long-Term Investors

ICICI Securities’ revised target of Rs 76 (16% upside) might appear conservative given Motilal Oswal’s Rs 83 projection. However, the 40x FY27 multiple already prices in superior execution capabilities and policy tailwinds. Investors should accumulate on dips below Rs 68, with stop-loss at Rs 58. The stock remains a high-conviction play on India’s $500bn energy transition opportunity through this decade.