Suzlon shares fall 6% post Q2 results; JM lifts price target; check ratings & challenges

Suzlon Energy shares target price: Domestic brokerage firms JM Financial continues to remain positive on Suzlon Energy as it has increased its target price on the stock after Q2 earnings. However, the domestic broker sees it struggling in FY28 to maintain the growth momentum, thanks to bottlenecks in execution. Suzlon reported a strong of numbers in September 2025 quarter.

Suzlon Energy clocked a more than 6-fold jump on a year-on-year basis (YoY) in its net profit at Rs 1,278 crore for the September 2025 quarter, while wind energy player's revenue from operations zoomed 85 per cent YoY to 3,870 crore. Ebitda rallied 145 per cent YoY to Rs 720 crore, while Ebitda margins expanded 460 bps to 18.6 per cent for the quarter ended September 30.

Suzlon’s order book stood at 6,222 MW as on September 2025, with a diversified mix. Management during the conference call remains confident of pick up in bidding of RE tenders. It also stated that it does not see any issues with the order book. Going forward, its strategy is to gradually increase share of EPC orders from current 20 per cent to 50 per cent by FY28, said JM Financial.

Management has guided for commissioning of at least 1500 MW during FY26. However, grid connectivity and land remains major challenges in ramp up of installations. To expedite the capacity addition, the company is planning to bundle its offerings of EPC contracts with land. It has identified land suitable for 23 GW of projects, out of which the land acquisition process has been started for 11.5 GW, it said.

Shares of Suzlon Energy have tumbled nearly 6 per cent from Rs 61.05 on Tuesday, when the company announced its Q2 results. The stock dropped nearly 3.45 per cent to Rs 57.56 on Friday, against its previous close at Rs 59.63 on Thursday. The total market capitalization of the company slipped below Rs 80,000 crore.

"Execution bottlenecks (connectivity, land, RoW) remain critical constraints in scale-up of wind energy, which, we believe, will limit the annual installations to 7-8GW. Suzlon is likely to struggle in maintaining growth momentum from FY28 in the absence of scalable diversification. Considering execution of 2.5GW / 3.1GW / 3.5GW during FY26/FY27/FY28, we maintain 'buy' with target price of Rs 70 (from Rs 66 earlier)," JM added.

Shares of Suzlon Energy has tumbled nearly 23 per cent from its 52-eek high at Rs 74.30 hit in May 2025. Despite, the recent fall, Suzlon shares are up nearly 8 per cent in a month. The stock has dropped nearly 13 per cent in a year but it has zoomed nearly 2,050 per cent in the last five year period.

Among other brokerage firms, Motilal Oswal Financial Services raised FY26 estimates by 8 per cent, mainly to account for a lower tax rate in 1HFY26. "We continue to build in deliveries of 2.5/3.4 GW in FY26/27, respectively. We lower the valuation multiple to 30 times (35 times earlier), but reiterate BUY with a revised target price of Rs 74 per share," it added.

Management expect additional Rs 2,000 crore DTA creation post-FY28, said Nuvama Institutional Equities. "We are factoring this into our SotP (Rs 66 per share), on a discounted basis. We are revising FY26E/27E EPS by 49 per cent/-16 per cent to reflect the new DTA creation and retain ‘HOLD’ with a target price of Rs 66 (earlier Rs 67) based on 40 times FY28E," it added.