Suzlon Energy shares at Rs 55 or Rs 75? Targets by UBS, Centrum, Nuvama, others

Suzlon Energy Ltd shares are in focus on Tuesday after elevated other expenses weighed on the renewable energy solutions provider’s March quarter results, with net profit falling 6 per cent to Rs 1,114 crore despite a healthy growth in sales. Following the Q4 earnings, brokerages largely suggested target prices in the Rs 55-75 range on the Suzlon Energy stock.

Centrum Broking gave a target of Rs 75 on the stock. UBS and Investec suggested targets of Rs 72 each on the stock, while maintaining their ‘Buy’ ratings. ICICI Securities, JM Financial and MOFSL retained their ‘Buy’ calls with target prices of Rs 65 each. Ambit Capital reportedly suggested a target of Rs 60, while Nuvama pegged the stock’s target price at Rs 55 per share.

Centrum Broking believes Suzlon is well-positioned to deliver sustained profitability improvement and cash flow generation as India’s wind capacity additions accelerate and service revenues scale alongside the installed base. This is even as it called Suzlon’s Q4 as mixed performance. 

“Suzlon’s strong execution momentum, expanding manufacturing scale, high-margin service annuity base, and favorable policy tailwinds supporting domestic wind OEMs position it as a key beneficiary of India’s renewable energy transition. With India’s wind installations expected to enter a multi-year upcycle and hybrid renewable demand rising, Suzlon is transitioning from a turnaround story to a structural growth platform. Additionally, Suzlon’s net cash balance sheet and improved working capital discipline enhance financial resilience and support sustained growth,” it said.

ICICI Securities said Suzlon Energy is targeting a 50 per cent EPC share by FY28, which could improve execution control and margin quality. This brokerage noted that the revival of Andhra Pradesh development rights covering 2.1GW could aid the execution pipeline, with 775MW awaiting FDRE tariff finalisation and 1,325MW planned to be monetised as EPC contracts.

“With wind turbines worth 971MW already erected but awaiting commissioning, FY27 could see
a meaningful improvement in commissioning. Retain BUY,” it said.

Nuvama said Suzlon Energy’s Q4 execution was 830MW against an estimate of  875MW, with 17.5 per cent Ebitda margin against an estimate of 17.7 per cent. This resulted in in-line profit, aided by DTA adjustments. 

The Suzlon Energy management highlighted working capital strain due to PSU order execution and delayed commissioning while remaining non-committal on execution growth over the next two years with scale-up expected through improved EPC mix and export optionality, Nuvama noted. 

“Suzlon Energy expects additional DTA creation of Rs 3,000–3,500 crore on past losses. We cut FY27E/28E EPS (2 per cent/4 per cent), as we increase interest costs on WC strain. Downgrade to ‘HOLD’ with an unchanged target of Rs 55 (due to limited future visibility) based on 30x FY28E (WTG + F&F EPS) plus DCF of O&M. The stock trades at 29x FY28E EPS,” Nuvama said.

Suzlon’s Q4 revenue missed MOFSL’s estimate by 7 per cent and Ebitda by 5 per cent but profit beat its estimates by 20 per cent. Suzlon Energy met its FY26 guidance of 60 per cent YoY growth across key KPIs. New orders and execution key drivers in FY27, MOFSL said.