Suzlon share price: Why Nuvama cut target post Q1 results

AhmadJunaidBlogAugust 13, 2025378 Views


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

The uptick was propelled by a capacity ramp-up to 4.5GW, with management maintaining a bullish outlook of 60% year-on-year growth in various financial metrics for FY26. However, Nuvama revised Suzlon’s target price from Rs 68 to Rs 67, citing these softer realisation concerns.

Suzlon’s Ebitda margin impressively rose to 19.1%, surpassing the estimated 17.4%, due to operating leverage benefits. This was despite challenges in installations, attributed to transmission and land obstacles, which are expected to ease.

The resignation of CFO Mr. Himanshu Mody, effective 31 August 2025, adds another layer of complexity, as he played a pivotal role in the company’s financial restructuring. A replacement is reportedly in the final stages of selection.

Nuvama remains positive on Suzlon’s long-term prospects, highlighting a robust order book of 5.7GW. The brokerage, however, trimmed its FY26/FY27 EPS estimates by 4% and 1%, respectively, to reflect the ongoing challenges in EPC mix realisation.

Despite the challenges, Suzlon maintains a strong market presence with a 30% share in the EPC+WTG capabilities sector. Its strategic positioning in government tenders and its dual market approach in C&I and PSU segments are seen as positive factors.

The broader market sentiment for Suzlon remains cautiously optimistic. While the company is expected to benefit from the rising mix of FDRE/RTC/Hybrid in government tenders, Nuvama’s updated target price reflects limited upside potential at the current market price.

The company’s future performance will likely hinge on overcoming installation challenges and capitalising on its strategic advantages in the energy sector. Nuvama’s revised target price indicates cautious optimism, balancing near-term setbacks with potential long-term gains.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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