Suzlon share price falls 4% post Q1 results; MOFSL, JM & ICICI Sec set targets

Suzlon Energy Ltd tanked 4 per cent in Wednesday’s trade as a couple of brokerages cut their target prices on the stock following a less-than-expected set of June quarter results. Suzlon Energy’s Q1 earnings were aligned with its expectations, with deliveries, revenue, and Ebitda coming in line with estimates. The miss at the adjusted PAT level was due to a deferred tax charge, MOFSL said.

“We cut our FY26 adjusted PAT estimate by 25 per cent as we build in an effective tax rate of 25 per cent. We also marginally adjust the FY27 tax rate higher to 12 per cent. We arrive at our target of Rs 80 by applying a target P/E of 35 times to FY27E EPS,” MOFSL said.

Following the development, the Suzlon stock fell 4.42 per cent to hit a low of Rs 60.33 on BSE.
 
With the manufacturing capacity of 4.5 GW and an order book of 5.7 GW, Suzlon Energy is confident of 60 per cent growth in key performance parameters. As utilities’ new renewable energy tenders slow down, commercial and industrial customers are driving growth, especially in wind power, JM Financial said.

“Current installations have consistently stayed at c.20 per cent of the deliveries over the past three months for the last three quarters, which is a cause for concern. Considering deliveries of 2500 MW/3100 MW in FY26/FY27, we arrive at an EPS of Rs  1.51/ Rs 2.31 during FY26/FY27 and, maintain our BUY rating on the stock with a revised target of Rs 78 based on a 35xFY27 EPS,” JM said.

In Q1FY26, Suzlon reported its highest-ever Q1 execution. Also, it accumulated orders worth 1GW in Q1, ICICI Securities said. “Its OB stands at an impressive 5.7GW (3.7 times FY25 execution). We expect the order pipeline to be strong over the next 2–3 years. Retain Buy with a target price of Rs 76,” the broking firm said.

Nuvama said Suzlon Energy’s Q1FY26 performance, marked by the execution of 444MW, was slightly below expectations. The company’s top line stood at approximately Rs 3,100 crore, up 55 per cent year-on-year but 6 per cent below projections due to softer realisation from a reduced EPC mix.

Nuvama has revised Suzlon’s target price from Rs 68 to Rs 67, citing these softer realisation concerns.

“Key near-term monitorables: 1) the announcement of Group CFO Mr Himanshu Mody’s departure could be a slight short-term negative, given his instrumental role in the company’s balance sheet turnaround, 2) installations have trailed deliveries in recent quarters, raising concerns about potential disruptions in delivery flow in upcoming quarters, and 3) new order inflow in FY26TD at 1GW has been somewhat tepid,” MOFSL said.