Buy Suzlon Energy for 65% upside, says Religare Broking; here's why
Religare is bullish on Suzlon’s order book of over 6 GW . It is of the view that improving execution provides strong medium-term growth visibility.
- Nov 3, 2026,
- Updated Nov 3, 2026 4:49 PM IST
Shares of Suzlon Energy Ltd are set for a 65% upside in a year, says Religare Broking. The brokerage has a price target of Rs 57 against the current market price of Rs 34.62. Religare is bullish on Suzlon’s order book of over 6 GW . It is of the view that improving execution provides strong medium-term growth visibility.
"However, margin pressures remain a key concern, prompting us to revise our FY27 EBITDA margin estimate to 15.8% from 18% earlier. We maintain a BUY rating, with a target price of a Rs 57 per share, while monitoring margin recovery and timely project commissioning," said the brokerage.
The brokerage shared highlights of the concall post Q2 earnings. Here's a look at them.
1. Record deliveries and faster project commissioning
Suzlon reported a 26% year-on-year increase in turbine deliveries to 710 MW in Q2 FY27, compared with 565 MW in the corresponding quarter last year. The improvement reflects better execution and higher project activity.
However, around 1.25 GW of turbines remain erected but are yet to be commissioned. Timely grid connectivity and completion of commissioning activities will be crucial for converting this inventory into revenue.
Looking ahead, management expects deliveries in H2 FY27 to be around 1.5-1.65 times the H1 FY27 level. The anticipated ramp-up is expected to be supported by the existing order book and the seasonally stronger second half of the financial year.
2. Revenue grows 26%, but EBITDA margins come under pressure
Suzlon's consolidated revenue increased 26% year-on-year to Rs 4,869 crore in Q2 FY27, driven by higher delivery volumes and improved execution.
The customer and project mix reportedly accounted for around 150-180 basis points of margin pressure, while commodity and forex inflation contributed approximately 50 basis points. Investments associated with Suzlon 2.0 had an additional impact of around 100 basis points.
With these pressures persisting, the FY27 EBITDA margin estimate has been revised downward to 15.8% from the earlier estimate of 18%. The extent to which margins recover as execution volumes increase will remain an important factor for investors to monitor.
3. Suzlon's 6 GW order book provides strong revenue visibility
Suzlon's cumulative order book stood at approximately 6 GW, providing nearly 18 months of execution visibility and supporting its medium-term growth prospects.
The company secured more than 1.5 GW of fresh orders during H1 FY27, strengthening its project pipeline. Notably, over 1.1 GW of these order inflows came through its development company (DevCo)-led business, highlighting the growing contribution of its project development capabilities to new business generation.
Public sector undertakings and commercial and industrial (C&I) customers together account for around 78% of the order book, providing exposure to multiple customer categories.
4. Suzlon 2.0 transformation: Focus shifts beyond wind turbine manufacturing
Suzlon is gradually transitioning from a wind turbine original equipment manufacturer (OEM) into a broader renewable energy solutions provider. Its strategy encompasses technology development, project development, EPC execution and renewable asset management.
An important milestone in this transition was securing the first customer order for its S175 5 MW wind turbine platform. The higher-capacity turbine strengthens the company's product portfolio and positions it to participate in projects requiring larger and more efficient wind installations.
Beyond wind energy, Suzlon is exploring opportunities in solar power, battery energy storage systems (BESS) and integrated renewable energy solutions. These initiatives could gradually expand its addressable market beyond standalone wind turbine manufacturing.
5. What should investors should watch going forward
The pace of execution and margin recovery will remain the two most important factors determining Suzlon's financial performance over the coming quarters.
Management expects a substantial increase in deliveries during H2 FY27 compared with H1. Higher execution volumes could improve manufacturing utilisation and operating leverage, potentially supporting profitability.
However, the benefits of higher volumes will need to be assessed against the continuing impact of project mix, commodity inflation, foreign exchange movements and investments in the company's long-term expansion plans.
The ongoing Suzlon 2.0 transformation also involves investments in technology, higher-capacity turbine platforms and manufacturing capabilities. While these initiatives are aimed at strengthening the company's competitive position over the longer term, they are adding to near-term cost pressures.
For investors, the key monitorables will include the conversion of the 1.25 GW erected turbine backlog into commissioned projects, fresh order inflows, the execution of the 6 GW order book, the rising EPC contribution and the trajectory of EBITDA margins.
Shares of Suzlon Energy Ltd are set for a 65% upside in a year, says Religare Broking. The brokerage has a price target of Rs 57 against the current market price of Rs 34.62. Religare is bullish on Suzlon’s order book of over 6 GW . It is of the view that improving execution provides strong medium-term growth visibility.
"However, margin pressures remain a key concern, prompting us to revise our FY27 EBITDA margin estimate to 15.8% from 18% earlier. We maintain a BUY rating, with a target price of a Rs 57 per share, while monitoring margin recovery and timely project commissioning," said the brokerage.
The brokerage shared highlights of the concall post Q2 earnings. Here's a look at them.
1. Record deliveries and faster project commissioning
Suzlon reported a 26% year-on-year increase in turbine deliveries to 710 MW in Q2 FY27, compared with 565 MW in the corresponding quarter last year. The improvement reflects better execution and higher project activity.
However, around 1.25 GW of turbines remain erected but are yet to be commissioned. Timely grid connectivity and completion of commissioning activities will be crucial for converting this inventory into revenue.
Looking ahead, management expects deliveries in H2 FY27 to be around 1.5-1.65 times the H1 FY27 level. The anticipated ramp-up is expected to be supported by the existing order book and the seasonally stronger second half of the financial year.
2. Revenue grows 26%, but EBITDA margins come under pressure
Suzlon's consolidated revenue increased 26% year-on-year to Rs 4,869 crore in Q2 FY27, driven by higher delivery volumes and improved execution.
The customer and project mix reportedly accounted for around 150-180 basis points of margin pressure, while commodity and forex inflation contributed approximately 50 basis points. Investments associated with Suzlon 2.0 had an additional impact of around 100 basis points.
With these pressures persisting, the FY27 EBITDA margin estimate has been revised downward to 15.8% from the earlier estimate of 18%. The extent to which margins recover as execution volumes increase will remain an important factor for investors to monitor.
3. Suzlon's 6 GW order book provides strong revenue visibility
Suzlon's cumulative order book stood at approximately 6 GW, providing nearly 18 months of execution visibility and supporting its medium-term growth prospects.
The company secured more than 1.5 GW of fresh orders during H1 FY27, strengthening its project pipeline. Notably, over 1.1 GW of these order inflows came through its development company (DevCo)-led business, highlighting the growing contribution of its project development capabilities to new business generation.
Public sector undertakings and commercial and industrial (C&I) customers together account for around 78% of the order book, providing exposure to multiple customer categories.
4. Suzlon 2.0 transformation: Focus shifts beyond wind turbine manufacturing
Suzlon is gradually transitioning from a wind turbine original equipment manufacturer (OEM) into a broader renewable energy solutions provider. Its strategy encompasses technology development, project development, EPC execution and renewable asset management.
An important milestone in this transition was securing the first customer order for its S175 5 MW wind turbine platform. The higher-capacity turbine strengthens the company's product portfolio and positions it to participate in projects requiring larger and more efficient wind installations.
Beyond wind energy, Suzlon is exploring opportunities in solar power, battery energy storage systems (BESS) and integrated renewable energy solutions. These initiatives could gradually expand its addressable market beyond standalone wind turbine manufacturing.
5. What should investors should watch going forward
The pace of execution and margin recovery will remain the two most important factors determining Suzlon's financial performance over the coming quarters.
Management expects a substantial increase in deliveries during H2 FY27 compared with H1. Higher execution volumes could improve manufacturing utilisation and operating leverage, potentially supporting profitability.
However, the benefits of higher volumes will need to be assessed against the continuing impact of project mix, commodity inflation, foreign exchange movements and investments in the company's long-term expansion plans.
The ongoing Suzlon 2.0 transformation also involves investments in technology, higher-capacity turbine platforms and manufacturing capabilities. While these initiatives are aimed at strengthening the company's competitive position over the longer term, they are adding to near-term cost pressures.
For investors, the key monitorables will include the conversion of the 1.25 GW erected turbine backlog into commissioned projects, fresh order inflows, the execution of the 6 GW order book, the rising EPC contribution and the trajectory of EBITDA margins.