Suzlon Energy: Systematix retains ‘Buy’ after hosting management, highlights key takeaways

Systematix Shares and Stocks (India) recently hosted the management of Suzlon Energy Ltd, among others, at its first conference 'Manthan'. Following the conference the company maintained its 'Buy' rating on Suzlon Energy with a target price of Rs 67 per share. 

Among key highlights, Systematix said NTPC tender schedule is facing delays, with tenders expected to be issued by March or April and supplies would subsequently commence in H2FY27. It said PSUs account for 13 per cent of Suzlon's net order book, representing around 1,544MW, of the total current net order book of 6.4GW. Suzlon, Systematix said, reported 710MW WTG deliveries in FY24 resulting in Rs 175 crore Ebitda against Rs 960 crore Ebitda in FY25 on an execution base of over 1,500MW. 

Systematix said steel constitutes 80 per cent of the raw material by weight in a wind turbine and Suzlon maintains protection against steel price volatility through an estimated 90 per cent cost pass through, with steel prices locked in at the time of order booking. 

"Steel price exposure is largely mitigated, particularly for towers, generators, and nacelles. Copper is a key input in generators and transformers, while silver usage in minimal (700-800 grams per turbine). Management is exploring substitution of copper with aluminium and zinc alloys in select applications," Systematix said.

Transmission and grid connectivity are seen as key bottlenecks, with delays often driven by terrain and demographic challenges despite accelerated rollout by PGCIL. Despite this, India’s annual wind capacity addition is projected to grow from 6GW to 10GW, with 4.5GW already achieved in 9MFY26.

"With the implementation of Domestic Content Requirement (DCR) norms in solar, input costs are expected to trend higher, which may gradually shift developer preference toward wind and wind-hybrid configurations where domestic manufacturing and pass-through mechanisms are better," Systematix said Suzlon as saying. 

Suzlon's integrated capabilities across wind turbine generator (WTG) manufacturing, EPC, and OMS support end to end project execution. A 1GW project usually takes 18-24 months from order to commission, depending on location, complexity, and logistics access. Logistic bottlenecks and transportation add to overall costs, thus rendering India market currently unsuitable for larger WTGs,  Systematix  said.