Suzlon Energy share price target: Brokerages see up to 35% upside potential. Here’s why

Shares of Suzlon Energy dipped 1.5% to Rs 47.27 on the BSE on Wednesday after the renewable energy company reported a nearly 6% year-on-year (YoY) decline in consolidated net profit for the first quarter of FY27. Net profit stood at Rs 305 crore, compared with Rs 324 crore in the year-ago period. With Wednesday’s decline, the stock is down 10% in two sessions.

Despite the decline in profit, revenue from operations grew 22.5% YoY to Rs 3,819 crore in Q1 FY27, from Rs 3,117 crore a year earlier. The company recorded its highest-ever first-quarter deliveries at 506 MW, representing a 14% YoY increase. Commissioning also jumped 2.3 times to 269 MW. Suzlon's cumulative order book stood at 6.1 GW, with PSU and C&I sectors accounting for 84% of the orders.

Suzlon Group CFO Rahul Jain said EBITDA and PAT margins remained in line with ongoing developments, impacted by temporary logistics disruptions due to the geopolitical situation, strategic investments, and changes in scope and segment mix.

Also Read | Suzlon seeks to put the wind in all sails of its renewables ship

Suzlon Energy shares: Buy, sell or hold?

Motilal Oswal has maintained its Buy rating on Suzlon Energy while lowering its target price to Rs 65, implying a 35% upside. The brokerage described the quarter as soft but said the company remains on track for growth.


The brokerage highlighted three key monitorables. First is the pace of fresh order inflows, project deliveries and installations through FY27 and FY28, which will be crucial to maintaining the current growth momentum. Second, WTG contribution margin declined to 23.4%, compared with 26% in 1QFY26 and 24.5% in 4QFY26, due to changes in the scope mix.

Third, EBITDA margin was lower at 15.5%, as deliveries were affected by temporary supply chain and logistics disruptions linked to geopolitical tensions in the Middle East.

Nuvama, while maintaining its Hold rating and slashing the target to Rs 51 (6.2% upside), sees Suzlon Energy as a key beneficiary of the growing share of FDRE, RTC and hybrid tenders, along with PSU-led projects. The brokerage highlighted Suzlon's strong exposure to the C&I and captive segments, which account for 70% of its order book.

However, Nuvama expects the wind industry to plateau at 8-10 GW over the next two to three years. While Suzlon's FY31 targets remain encouraging, the brokerage believes the company's growth is likely to be back-ended.

Also Read | Suzlon to diversify beyond wind; pump Rs 500 cr in new arm this fiscal

JM Financial has maintained its Buy rating on Suzlon Energy with a target price of Rs 62, implying an upside of 29%. The brokerage highlighted a miss on EBITDA margin despite strong wind turbine generator (WTG) deliveries, which rose to 506 MW in Q1 FY27 from 444 MW in Q1 FY26. Commissioning, however, remained subdued as deliveries continued to exceed installations. JM Financial expects this trend to improve as several transmission projects are commissioned from the end of FY28 onwards.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)