Suzlon Q1 results today: Key expectations, share price targets ahead of earnings

Suzlon Energy Ltd is set to report its June quarter (Q1 FY27) results on Tuesday, July 28. Analysts expect the wind turbine maker's performance to be weighed down by execution challenges during the quarter. Revenue is seen growing in double-digit year-on-year (YoY), but profit growth is likely to remain muted. Analysts also expect Ebitda margin to contract on a YoY basis due to continued execution challenges.

Ahead of its quarterly results, Suzlon Energy is a consensus buy, with 10 'Buy' recommendations and two 'Hold' calls.    Anand Rathi expects Suzlon Energy to log 7.3 per cent YoY rise in adjusted net profit at Rs 491.90 crore on 13.5 per cent YoY rise in revenue at Rs 3,554.80 crore. Ebitda margin is seen coming in at 18.8 per cent against March quarter's 17.5 per cent and year-ago quarter's 19.1 per cent. The domestic brokerage said sales may moderate with WTG deliveries of 484 MW, led by project-site erection delays due to equipment and generator availability constraints.

JM Financial sees Suzlon's Q1 net profit, adjusted for the impact of deferred tax, at Rs 433.90 crore, down 5 per cent YoY. It expects net sales for Suzlon to rise 13 per cent YoY to Rs 3,524.40 crore. It sees Ebitda margin at 17.8 per cent, adding that the decline YoY would be due to increasing the EPC share. 

"We expect dispatches at 510MW in 1QFY27 against 444MW in Q1FY26 due to continued execution challenges," JM Financial said.

Systematix Institutional Equities expects Suzlon Energy to report a consolidated revenue of Rs 3,740 crore, up 19 per cent YoY but down 32 per cent QoQ, based on 530MW order execution during the quarter. This would represent a 19 per cent YoY increase and a 36 per cent QoQ decline in execution. Consolidated Ebitda is estimated at around Rs 700 crore, up 17 per cent YoY but down 27 per cent QoQ, with an implied Ebitda margin of 18.7 per cent. Systematix said Suzlon remains ahead of peers in terms of deliveries. It also highlighted the recent 105MW domestic order from Sunsure Energy for the supply of S175 (5.0MW) WTGs as an important milestone for the company's higher-capacity turbine platform. In addition, Suzlon has secured cumulative orders of 700MW during Q1FY27, taking its current order book to about 5,867MW, net of the brokerage's estimated supplies for the quarter.

Centrum Broking expects Suzlon Energy to report revenue decline of 21.1 per cent quarter-on-quarter (QoQ), up 38.5 per cent year-on-year (YoY), with the sequential decline largely led by seasonally weak quarter.

It expects wind deliveries of 623MW, up 40 per cent YoY. Ebitda margin is expected to decline 73 bps QoQ to 17.3 per cent, with sequential decline led by higher mix of low margin EPC revenue.

Centrum said Suzlon's growth continued will be supported by rising wind installations, healthy order inflows from PSU and C&I customers, and increasing contribution from the high-margin O&M business. 

Nuvama expects Suzlon to report an execution of 550MW in Q1FY27 with annual execution targeted at 3GW. Q1 margins are seen hovering around 18 per cent, as more EPC-related work was expected before the monsoon season. 

"Further execution ramp up and margin (due to fluctuations in EPC mix) remain key monitorables going forward with any deferred tax angle and the quantum thereby in Q1 is a key variable to watch out for," it said.

Suzlon share price targets

On July 24, Axis Capital suggested a target of Rs 75 on the stock. Among other stock price targets, JM Finacnial suggested a target of Rs 64 on July 17. Ambit Capital suggested 'Buy'  on July 13 with a target of Rs 62. Suzlon has received targets of Rs 72 from Investec, Rs 71 from Systematix, Rs 56 from Nuvama, Rs 70 from MOFSL and Rs 75 from Centrum.