Suzlon Energy shares: Motilal Oswal sees 55% upside; ICICI flags execution bottlenecks

Suzlon Energy target price: Domestic brokerage firms continue to remain largely positive on Suzlon Energy Ltd with select analysts expecting the stock to rise more than 55 per cent from its current levels. Other analysts, however, see some execution bottlenecks, resulting in trimmed target prices.

Suzlon Energy’s consolidated revenue was below estimates as deliveries reached 617MW, 8 per cent lower than forecast, with Ebitda and adjusted net profit also coming lower than expectations, said Motilal Oswal Financial Services Ltd. Despite this, Motilal Oswal pointed to strong YoY Ebitda and delivery run rates for the first nine months, maintaining its earnings estimates.

According to Motilal Oswal, key positives included management’s confidence in achieving FY26 guidance of 60 per cent growth across key indicators. Suzlon is on track to deliver 2.5GW in FY26, with 1.6GW already executed in nine months, a 66 per cent YoY increase. The order book reached 6.4GW by January 2026, with the EPC segment’s share rising to 27 per cent.

"Installation pace slowed, with 442MW installed in nine months due to right of way, land, and grid evacuation challenges," it said. Motilal Oswal expects a sharp pick-up in installations in the fourth quarter. The ebitda margin in the wind turbine business moderated to 13.7 per cent in Q3, compared to 15-16 per cent in earlier quarters.

For the three months ended on December 31, 2025, Suzlon Energy clocked a 14.8 per cent year-on-year (YoY) jump in the net profit at Rs 445.2 crore, while its revenue increased 42.4 per cent YoY to Rs 4,228.1 crore. The company's ebitda increased 48 per cent YoY to Rs 730.5 crore, while ebitda margins improved 70 basis points YoY to 17.3 per cent for the reported period.

Suzlon saw a strong growth in order inflow in the last two years, which led to its orderbook more than doubling to 6.4GW as of January 2026. In FY26 so far, its order inflows stood strong at 3GW aided by PSU and C&I orders. With strong order book and 4.5GW operational capacity, it has also been able to ramp up execution, delivering 1.6GW worth of wind turbines in 9 months, said ICICI Securities.

In Q3, its volume stood at 617MW which led to revenue/EBITDA/PAT growth of 42 per cent/48 per cent/15 per cent YoY. Management had guided for 2.5GW of volume for FY26 and it has reiterated that guidance, implying strong volume in Q4, it said.

Shares of Suzlon Energy rebounded nearly 2 per cent from days low at Rs 47.28 to Rs 48.19 on Friday. The stock is still down from its 52-week high at Rs 74.30, hit nine months ago. Suzlon Energy shares hit a 52-week low of Rs 44.84 on January 27, 2026 and it is down 10 per cent in the last one month.

Motilal Oswal’s valuation applies a target P/E of 30 times to FY28 estimated EPS, setting a price target of Rs 74 (suggest 55 per cent upside), slightly above the historical average two-year forward P/E of 27 times. MOFSL cited a government task force to address land and connectivity bottlenecks, which could support Suzlon’s growth in domestic and international markets.

"We expect the order outlook for wind turbines to remain healthy for the next 2–3 years. Suzlon acknowledged wind project execution delays limiting its own execution potential and is targeting a higher share of EPC in its order book to get better control over project execution. It is also evaluating export opportunities," it added with a 'buy' and a target price of Rs 65 (Rs 76 earlier).