Suzlon Energy shares rise after US judge directs Pentagon to lift wind project freeze

Shares of Suzlon Energy rose nearly 2% on Friday to a day's high of Rs 48.99, after a U.S. judge on Thursday ordered the Pentagon to lift its freeze on reviewing proposed onshore wind projects.

According to Reuters, U.S. District Judge Karin Immergut in Portland, Oregon, granted a preliminary injunction to several renewable energy groups, who argued that the Department of Defense's freeze had caused a "total halt" in wind project development across the country.

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The report further stated that the Pentagon does not comment on ongoing litigation but is “actively evaluating” land-based wind energy projects to ensure they do not compromise national security or military operations, in line with statutory and regulatory requirements.

The reviews are aimed at ensuring that wind projects do not interfere with radar systems, airspace operations or technology-related areas such as cybersecurity and communications.

The report also highlighted that in its bid for dismissal, the Pentagon said emerging national security threats warranted a reassessment of the review process and that the freeze was necessary to protect U.S. interests amid an “ever-evolving global landscape and its shifting threat paradigm.”

Meanwhile, Trump has criticised wind turbines as ugly, expensive and inefficient, and has expressed a preference for fossil fuels such as oil and gas.

In her 36-page ruling, Immergut, a Trump appointee, said the renewable energy groups were likely to demonstrate that the Pentagon had violated statutory and regulatory deadlines set by Congress for conducting the reviews.

"DoD cannot pick and choose which parts of this legal regime to follow," Immergut wrote. "DoD has no power to tailor legislation to its policy goals by rewriting unambiguous statutory terms.”

Reuters also reported that Immergut found the energy groups had demonstrated irreparable harm potentially amounting to billions of dollars, including lost revenue, higher carrying and financing costs, and the possible loss of tax credits. Wind power accounts for about 10% of U.S. electricity.

Suzlon Q1 highlights

Last week, 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.

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.

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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.

In the last one month, the stock went up 1.75% and nearly 4.80% in the current calendar year so far. The stock gained 13% in the last one year and 68% in the last three years.

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