Suzlon Posts Revenue of 4,869 Crore Rupees; Shares Fall 9.73% After Results
Key Facts
Suzlon announced its results for the second quarter of fiscal 2027, ended September 30, after its board approved them on October 29. Revenue from operations rose 26% to 4,869 crore rupees. The stock fell 9.73% to an intraday low of 33.21 rupees in trading on October 30, from a previous close of 36.79 rupees. The decline followed the results announcement after the market closed the previous day. However, the reported drop in net profit did not reflect a similar decline in comparable profitability, as the comparison period was affected by the creation of a large deferred tax asset. Comparable net profit rose 1.3% to 394 crore rupees after excluding the effect of that 891 crore rupee asset in the second quarter of fiscal 2026. The results were unaudited and subject to a limited review.
Margin pressure remained evident despite revenue growth. Earnings before interest, taxes, depreciation and amortization totaled 720 crore rupees, compared with 721 crore a year earlier. The margin contracted to 14.8% from 18.6% in the year-earlier period. Profit before tax also fell 7.8% to 518 crore rupees. The figures show a divergence between business growth and operating profit, with profit before tax remaining below its year-earlier level. This came in a quarter when the company recorded an increase in deliveries and installations, alongside a decline in its operating margin.
By segment, revenue from renewable energy solutions rose 30% to 4,212 crore rupees, but the segment result fell 22.5% to 371 crore rupees. In renewable energy asset management services, revenue grew 11.2% to 640 crore rupees, while the segment result rose 51.5% to 220 crore rupees. The results highlight differences between the business units: revenue growth in energy solutions coincided with a lower segment result, while both revenue and the result improved in asset management services. On execution, Suzlon delivered 710 megawatts of wind equipment in India, up 25.7% from a year earlier. Installed capacity also rose to 454 megawatts during the quarter.
Suzlon Group CEO Ajay Kapoor said record deliveries and strong execution supported revenue growth. He added: "Our record deliveries of 710 megawatts in the second quarter and strong execution of 454 megawatts reflect improved execution, and are driving revenue growth." The order book exceeded 6 gigawatts at the end of the quarter, while new orders surpassed 1.5 gigawatts in the first half of fiscal 2027. These figures provide context for revenue expansion, as the market continues to monitor the company's ability to convert deliveries and orders into higher-margin earnings. In its forecasts, JM Financial estimated deliveries of 3 gigawatts in fiscal 2027, 3.3 gigawatts in 2028 and 3.5 gigawatts in 2029. The firm cut its estimates for the EBITDA margin to 15%, 16% and 15% for those years, respectively.
JM Financial downgraded Suzlon's stock from "Buy" to "Add" and cut its price target to 40 rupees from 46 rupees. The firm linked its decision to margin pressure and growth concerns starting in fiscal 2028. It estimated that the Indian market would total 7–8 gigawatts annually in the coming years, against estimated industry capacity of 15–20 gigawatts, citing a limited market and increased competition. JM Financial expected these factors to weigh on margins and growth prospects from 2028. Separately from the brokerage's forecasts, a Suzlon disclosure said the next hearing in the company's appeal related to a penalty imposed by India's securities regulator would take place on January 28, 2027.