Suzlon Energy shares biz updates with Antique Stock Broking; key highlights

At its “Build India, New India” investor conference, Antique Stock Broking hosted Suzlon Energy management on Day 1. The Suzlon management highlighted that revenue is significantly second-half weighted, with 65 per cent of execution in H2. The company has shifted from land purchase to leasing, with acquisition requiring 12–15 months of planning. Industry installations reached 2 GW in the first four months of FY26 and is expected at 6 GW for the year. Suzlon orders, Antique said, are disclosed only after receiving 5–10 per cent advance, with 95 per cent of proceeds collected on delivery and 5 per cent after testing. 

Regulations have improved equipment quality, narrowed the pricing gap with imports to 2 per cent, and are expected to improve profitability for early bidders over the next three years, Antique noted. Here are the key takeaways from the Suzlon Energy management, as per the broking fir,m.

Revenue and seasonality
Revenue split is skewed to the second half: 1Q: 25 per cent, 2Q: 15 per cent, and 2H: 65 per cent.
Seasonality impacts execution and financials significantly.

Land acquisition shift:
Shift from land purchasing to leasing model to address concerns over sale of ancestral land.
Land acquisition requires 12–15 months of planning.

Industry capacity trends
2 GW installed by the industry in the first four months of FY26; full-year installation likely to reach 6 GW.

Order and payment terms

Orders disclosed to markets only after receiving 5–10 per cent advance.
95 per cent of the sale proceeds are collected on delivery; remaining 5 per cent post equipment testing.

Competitive landscape
Foreign players generally avoid entering the EPC segment.
Regulations have improved equipment quality; pricing gap between Suzlon and imports narrowed to 2 per cent.

Equipment & technology advancements
Hub height has increased from 90 m to 160 m.
With new equipment, 1,100 GW potential capacity can be hosted across seven Indian states using 3–3.5 MW turbines.

Regulatory tailwinds
New regulatory norms aimed at boosting early bidders’ profitability are expected to take three years to fully materialize.

FY26 equipment already in place; additional allocations expected for higher-quality products.

Working capital & inventory
CCC has improved from 120 days to 100 days, trending towards 75.
OMS (Operations & Maintenance Services) revenue stands at Rs 2,000 crore, but with Rs 1,000 crore of inventory; expected to improve with scale.
High inventory requirements in OMS due to unpredictable turbine repairs.

OMS model & equipment durability
OMS business is becoming more efficient.
95–98 per cent turbines operate without issues; others require occasional repair.
After three years of operation, turbines typically only requires annual maintenance.
Suzlon offers comprehensive insurance under OMS, a competitive differentiator.

Risks in non-integrated supply chains
Assembling turbines using components from multiple vendors increases failure risks,
especially given 150-ton nacelles mounted at 160 m height.

Profitability drivers & scale benefits
Wind maintenance is cost-intensive; achieving scale is critical to profitability.
Repair costs are expected to moderate as larger players expand.
Smaller players struggle with high fixed repair costs due to lack of scale.
Strong OMS track record and scale advantage support aggressive growth outlook.