Suzlon share price target: 42% upside! What MOFSL says after meeting CEO
MOFSL values Suzlon Energy at Rs 80 per share by applying a P/E multiple of 35x to its FY27 estimated EPS, which is a premium to its historical two-year forward average of 27x.
- Sep 1, 2025,
- Updated Sep 1, 2025 8:20 AM IST
Motilal Oswal Financial Services (MOFSL) has reiterated its 'Buy' rating on Suzlon Energy, projecting a 42 per cent upside with a target price of Rs 80. The positive stance is driven by insights shared during an expert session with JP. Chalasani, Group CEO of Suzlon Energy, highlighting policy support, execution readiness and future growth levers.
Chalasani reaffirmed his long-term commitment to Suzlon Energy, underlining that his role as CEO carries no sunset clause and that his return was driven by a clear strategic purpose. He stressed that he remains fully committed to turning around the business and building on its strengths, while also disclosing that the company is in advanced stages of appointing a new CFO. For investors, the message was one of stability in leadership and confidence in execution.
One of the most important themes that emerged from the session was the policy environment. The government’s introduction of the Approved List of Models and Manufacturers (ALMM) in wind turbine generator manufacturing is viewed as the first step toward reducing India’s dependence on imports. The intent is clear: to boost domestic manufacturing, improve product quality for Indian conditions, position India as a wind export hub, and strengthen energy security. Chalasani drew parallels with the solar sector, where ALMM for solar modules was followed by similar mandates for cells, and could eventually extend to ingots and wafers. A similar trajectory in wind would mean that localization requirements could gradually cover gearboxes, bearings, generators and towers. Such a move would accelerate investments in domestic manufacturing, deepen supply chains and open significant opportunities for companies like Suzlon.
For foreign turbine makers, the road is more challenging. At present, most overseas players only carry out partial assembly in India, primarily of blades and nacelles. Under ALMM, they will be required to localize far more extensively, including establishing R&D centres and complying with domestic content norms. This shift is not straightforward. Turbine-specific components such as gearboxes and generators need to be customized for Indian standards, requiring local suppliers to re-engineer designs and processes. The timeline for such adaptation could range from 6–9 months, and in some cases extend up to 12 months. While there is a perception that global OEMs can quickly adapt, the reality is that execution will be complex and time-consuming. Suzlon, in contrast, already has an end-to-end ecosystem in place, including R&D, design, and prototype testing capabilities within India. This gives it a meaningful edge and places it in a stronger position to meet new requirements ahead of global competitors.
Although some aspects of the localization order are still unclear, including the scope of component localization and the operating procedures for R&D centres, Suzlon’s preparedness gives it an advantage while peers grapple with feasibility and timelines. MOFSL sees this as a critical differentiator in an environment where regulatory clarity will shape the pace of adoption and execution.
Chalasani also underlined the complementary role of renewable technologies. He pointed out that solar, wind, and battery energy storage systems (BESS) should be seen as partners in building an energy-secure future rather than substitutes for one another. BESS is particularly effective in absorbing surplus solar generation during oversupply hours and releasing it later, while wind power plays a crucial role in balancing the grid and keeping tariffs affordable. With India’s ambitious renewable energy targets, demand for both wind and solar is not seen as a constraint, and each technology has a critical role in addressing intermittency and maintaining grid stability.
Suzlon’s growth trajectory is also supported by its order book. Management remains confident of maintaining at least 5 GW of backlog in the coming years, offering strong revenue visibility. At the same time, Suzlon is steadily increasing the share of engineering, procurement and construction (EPC) in its order book. EPC currently accounts for 22 per cent of the total but is expected to rise to 50 per cent by FY28. While margins in EPC are lower than in turbine manufacturing, it provides Suzlon with better control over execution and the ability to tackle sector-specific challenges such as land acquisition, right-of-way issues, and grid connectivity delays. For wind OEMs, control over these elements is critical, and MOFSL notes that Suzlon’s growing EPC capability strengthens its overall business model.
The company is also preparing to re-enter the international market. Export orders are expected to begin by end-FY26, with supplies starting in the second half of FY27. The initial focus will be on the Middle East and Europe, regions where demand for renewable equipment is rising rapidly. Suzlon’s strategy in exports will be limited to equipment supply, deliberately avoiding EPC exposure to mitigate execution risks abroad. While the US market remains uncertain due to tariff-related challenges, the export opportunity in other regions could provide Suzlon with an additional revenue stream and reduce its dependence on the domestic market.
MOFSL values Suzlon Energy at Rs 80 per share by applying a P/E multiple of 35x to its FY27 estimated EPS, which is a premium to its historical two-year forward average of 27x. The brokerage justifies this premium on account of improving execution, earnings visibility, and regulatory support. The stock currently trades at levels that leave room for a 42 per cent upside, driven by policy tailwinds mandating local content, a robust and growing order book, proactive EPC expansion, and the potential for export-led growth.
Motilal Oswal Financial Services (MOFSL) has reiterated its 'Buy' rating on Suzlon Energy, projecting a 42 per cent upside with a target price of Rs 80. The positive stance is driven by insights shared during an expert session with JP. Chalasani, Group CEO of Suzlon Energy, highlighting policy support, execution readiness and future growth levers.
Chalasani reaffirmed his long-term commitment to Suzlon Energy, underlining that his role as CEO carries no sunset clause and that his return was driven by a clear strategic purpose. He stressed that he remains fully committed to turning around the business and building on its strengths, while also disclosing that the company is in advanced stages of appointing a new CFO. For investors, the message was one of stability in leadership and confidence in execution.
One of the most important themes that emerged from the session was the policy environment. The government’s introduction of the Approved List of Models and Manufacturers (ALMM) in wind turbine generator manufacturing is viewed as the first step toward reducing India’s dependence on imports. The intent is clear: to boost domestic manufacturing, improve product quality for Indian conditions, position India as a wind export hub, and strengthen energy security. Chalasani drew parallels with the solar sector, where ALMM for solar modules was followed by similar mandates for cells, and could eventually extend to ingots and wafers. A similar trajectory in wind would mean that localization requirements could gradually cover gearboxes, bearings, generators and towers. Such a move would accelerate investments in domestic manufacturing, deepen supply chains and open significant opportunities for companies like Suzlon.
For foreign turbine makers, the road is more challenging. At present, most overseas players only carry out partial assembly in India, primarily of blades and nacelles. Under ALMM, they will be required to localize far more extensively, including establishing R&D centres and complying with domestic content norms. This shift is not straightforward. Turbine-specific components such as gearboxes and generators need to be customized for Indian standards, requiring local suppliers to re-engineer designs and processes. The timeline for such adaptation could range from 6–9 months, and in some cases extend up to 12 months. While there is a perception that global OEMs can quickly adapt, the reality is that execution will be complex and time-consuming. Suzlon, in contrast, already has an end-to-end ecosystem in place, including R&D, design, and prototype testing capabilities within India. This gives it a meaningful edge and places it in a stronger position to meet new requirements ahead of global competitors.
Although some aspects of the localization order are still unclear, including the scope of component localization and the operating procedures for R&D centres, Suzlon’s preparedness gives it an advantage while peers grapple with feasibility and timelines. MOFSL sees this as a critical differentiator in an environment where regulatory clarity will shape the pace of adoption and execution.
Chalasani also underlined the complementary role of renewable technologies. He pointed out that solar, wind, and battery energy storage systems (BESS) should be seen as partners in building an energy-secure future rather than substitutes for one another. BESS is particularly effective in absorbing surplus solar generation during oversupply hours and releasing it later, while wind power plays a crucial role in balancing the grid and keeping tariffs affordable. With India’s ambitious renewable energy targets, demand for both wind and solar is not seen as a constraint, and each technology has a critical role in addressing intermittency and maintaining grid stability.
Suzlon’s growth trajectory is also supported by its order book. Management remains confident of maintaining at least 5 GW of backlog in the coming years, offering strong revenue visibility. At the same time, Suzlon is steadily increasing the share of engineering, procurement and construction (EPC) in its order book. EPC currently accounts for 22 per cent of the total but is expected to rise to 50 per cent by FY28. While margins in EPC are lower than in turbine manufacturing, it provides Suzlon with better control over execution and the ability to tackle sector-specific challenges such as land acquisition, right-of-way issues, and grid connectivity delays. For wind OEMs, control over these elements is critical, and MOFSL notes that Suzlon’s growing EPC capability strengthens its overall business model.
The company is also preparing to re-enter the international market. Export orders are expected to begin by end-FY26, with supplies starting in the second half of FY27. The initial focus will be on the Middle East and Europe, regions where demand for renewable equipment is rising rapidly. Suzlon’s strategy in exports will be limited to equipment supply, deliberately avoiding EPC exposure to mitigate execution risks abroad. While the US market remains uncertain due to tariff-related challenges, the export opportunity in other regions could provide Suzlon with an additional revenue stream and reduce its dependence on the domestic market.
MOFSL values Suzlon Energy at Rs 80 per share by applying a P/E multiple of 35x to its FY27 estimated EPS, which is a premium to its historical two-year forward average of 27x. The brokerage justifies this premium on account of improving execution, earnings visibility, and regulatory support. The stock currently trades at levels that leave room for a 42 per cent upside, driven by policy tailwinds mandating local content, a robust and growing order book, proactive EPC expansion, and the potential for export-led growth.