Suzlon Energy, Inox Wind shares rally up 6% today; What Motilal Oswal says
MNRE's new amendment mandates local wind turbine components, boosting domestic production.
- Aug 1, 2025,
- Updated Aug 1, 2025 9:43 AM IST
Shares of Suzlon Energy and Inox Wind surged more than 6 per cent during the trading session on Friday after the Government of India imposed a ban on sharing operational data of Indian wind energy installations with other countries and mandated using domestic components. Both stocks inched up in the pre-opening trade.
The Ministry of New and Renewable Energy (MNRE) has issued an amendment on July 31, 2025, requiring the use of major wind turbine components from an approved list of models and manufacturers. This move aims to bolster domestic manufacturing, with local content now mandatory for components such as blades, towers, gearboxes, generators, and bearings. The amendment also mandates that Wind Turbine R&D Centres, Data Centres, and Servers be located within India to enhance cybersecurity measures.
This directive exempts new manufacturers and models for up to 800 MW of capacity over two years, encouraging technological advancement. Additionally, ongoing or already bided wind projects, if commissioned within three years of this order, will not be affected. Similarly, projects aimed at captive, open access, C&I, or third-party sale due within 18 months are also excluded from these requirements.
Following the update, shares of Suzlon Energy surged about 6.35 per cent to Rs 65.50 on Friday, with its market capitalization hitting Rs 90,000 crore mark. Similarly, shares of Inox Wind gained over 3.45 per cent to Rs 156 with a market capitalization close to Rs 27,000 crore. The stocks had settled at Rs 61.59 and Rs 150.65 on Thursday, respectively.
The initiative represents a significant positive shift for domestic players like Suzlon, as it ensures increased local participation and investment in the wind energy sector. This amendment is expected to drive further innovation and economic growth within the renewable energy landscape in India.
Two major concerns for Suzlon Energy—market share pressure and margin compression—now seem partly addressed with the new policy shift, said Motilal Oswal Financial Services. First, the restriction on importing key wind turbine components limits the influx of new, low-investment players, preserving market share for established domestic manufacturers like Suzlon, it said.
Second, mandatory domestic sourcing erodes the cost advantage Chinese players held by importing cheaper components, which were priced 10–15 per cent lower than Indian offerings. This levels the playing field on pricing and should ease margin pressure for Indian OEMs, it said.
Suzlon, being a market leader with domestic manufacturing across all major components is well-positioned to gain market share under the new framework in near to medium term, said Motilal Oswal. "We maintain a buy rating on Suzlon with a target price of Rs 82 per share," it said.
Shares of Suzlon Energy and Inox Wind surged more than 6 per cent during the trading session on Friday after the Government of India imposed a ban on sharing operational data of Indian wind energy installations with other countries and mandated using domestic components. Both stocks inched up in the pre-opening trade.
The Ministry of New and Renewable Energy (MNRE) has issued an amendment on July 31, 2025, requiring the use of major wind turbine components from an approved list of models and manufacturers. This move aims to bolster domestic manufacturing, with local content now mandatory for components such as blades, towers, gearboxes, generators, and bearings. The amendment also mandates that Wind Turbine R&D Centres, Data Centres, and Servers be located within India to enhance cybersecurity measures.
This directive exempts new manufacturers and models for up to 800 MW of capacity over two years, encouraging technological advancement. Additionally, ongoing or already bided wind projects, if commissioned within three years of this order, will not be affected. Similarly, projects aimed at captive, open access, C&I, or third-party sale due within 18 months are also excluded from these requirements.
Following the update, shares of Suzlon Energy surged about 6.35 per cent to Rs 65.50 on Friday, with its market capitalization hitting Rs 90,000 crore mark. Similarly, shares of Inox Wind gained over 3.45 per cent to Rs 156 with a market capitalization close to Rs 27,000 crore. The stocks had settled at Rs 61.59 and Rs 150.65 on Thursday, respectively.
The initiative represents a significant positive shift for domestic players like Suzlon, as it ensures increased local participation and investment in the wind energy sector. This amendment is expected to drive further innovation and economic growth within the renewable energy landscape in India.
Two major concerns for Suzlon Energy—market share pressure and margin compression—now seem partly addressed with the new policy shift, said Motilal Oswal Financial Services. First, the restriction on importing key wind turbine components limits the influx of new, low-investment players, preserving market share for established domestic manufacturers like Suzlon, it said.
Second, mandatory domestic sourcing erodes the cost advantage Chinese players held by importing cheaper components, which were priced 10–15 per cent lower than Indian offerings. This levels the playing field on pricing and should ease margin pressure for Indian OEMs, it said.
Suzlon, being a market leader with domestic manufacturing across all major components is well-positioned to gain market share under the new framework in near to medium term, said Motilal Oswal. "We maintain a buy rating on Suzlon with a target price of Rs 82 per share," it said.