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Suzlon Energy
Our verdict on Suzlon Energy isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
With H1 FY26 deliveries reaching 1,009 MW, the WTG business has moved well past the breakeven volume, achieving an EBITDA of Rs 893 Cr for the half-year. (2 exceeded, 1 missed, 1 met, 1 revised across 5 tracked commitments)
“I mean, of course, OMS will continue to deliver close to 40% EBITDA margin. That has always been our guidance.”
Management reaffirmed their belief that total wind installations will reach approximately 6 gigawatts by the end of FY '26, supported by 3 gigawatts already commissioned in H1 FY '26. (1 met, 1 revised across 2 tracked commitments)
“We expect the industry to do close to 6GW of wind installations in FY '26.”
See the full cited Management analysis of Suzlon Energy
How durable is the business?
The WTG division experienced explosive growth, doubling its delivery volume and revenue due to strong operating leverage and the success of the S144 model. (5 expanding across 1 engine)
“Segment Revenue a) Wind Turbine Generator 3,563.35... Segment Results a) Wind Turbine Generator 442.61”
The company has transitioned to a strong net cash position, providing significant financial flexibility compared to its previous distressed state. (5 expanding)
“Net cash improves to ₹1,556 Cr as of Dec’25, provides strong financial flexibility”
See the full cited Business Model analysis of Suzlon Energy
Where does growth come from?
Execution is accelerating significantly, with deliveries more than doubling year-on-year. The company delivered 1,550 MW in FY25 compared to 710 MW in FY24. (5 accelerating across 5 signals)
“Record orderbook of 6.4 GW”
Suzlon has operationalized 4.5 GW of nacelle capacity and is expanding its blade manufacturing footprint with new plants in Madhya Pradesh and Rajasthan to meet FY26 requirements. (1 steady, 1 new trend across 2 signals, 2 leading indicators)
“Three new AI-enabled smart blade factories planned — further expanding manufacturing footprint”
See the full cited Future Growth analysis of Suzlon Energy
What could break the thesis?
INTENSIFYING. While deliveries are at record highs (444 MW), commissioning in Q1 was only 117 MW, indicating a growing inventory of erected turbines waiting for grid evacuation systems. (2 intensifying, 3 easing, 3 high-severity)
“Record orderbook of 6.4 GW... 2.4 GW execution underway”
Interest costs are expected to rise further from INR 150 crores to INR 250 crores in FY26 due to increased working capital needs for higher deliveries and consolidation of Renom debt. (3 intensifying, 2 easing)
“Finance cost: December 31, 2025 (Unaudited) 114.26; December 31, 2024 (Unaudited) 69.53”
See the full cited Risk analysis of Suzlon Energy
Read the full thesis on Suzlon Energy
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