Suzlon Q2 results preview: Execution ramp up, margin key monitorables, says Nuvama

Suzlon Energy will soon be announcing its Q2 results date, with a host of brokerages already out with their estimates for the September quarter. The fresh to join the bandwagon is Nuvama, which noted that Suzlon Energy's execution of 375MW in Q2FY26 was affected by heavy rains during the quarter, as it anticipated Q2 margins for the wind turbine maker to be sedate at 16 per cent due to more EPC-related work.

Execution ramp up and margin due to fluctuations in EPC mix remain key monitorables going forward, the brokerage said. This brokerage expects Suzlon Energy's core profit after tax to jump 28 per cent YoY to Rs 257.50 crore compared with Rs 200.60 crore in the same quarter last year. Revenue for the quarter is seen rising 39 per cent YoY to Rs 2,915.90 crore compared with Rs 2,103.40 crore in the year-ago quarter. Ebitda is seen coming in at Rs 470.90 crore. 

MOFSL in its Q2 results preview note had earlier expected Suzlon Energy to clock a 1 per cent fall in profit on year-on-year (YoY) basis, despite a 32 per cent jump in sales. MOFSL sees a 32 per cent YoY growth in sales at Rs 2,785.20 crore, as it cited the execution of 365MW of wind turbine orders in Q2, up 42 per cent YoY, but down 18 per cent QoQ.

This brokerage estimated Ebitda at Rs 422.50 crore, with Ebitda margins seen coming in at 15 per cent. Net profit for the quarter is projected at Rs 199.30 crore. This brokerage maintained its target price on Suzlon Energy at Rs 80. On Tuesday, the scrip was trading 0.07 per cent lower at Rs 54.08.  

Suzlon Energy is a retail-favourite stock with 55,40,817 individual investors (holding less than Rs 2 lakh worth shares) at the end of June quarter. These investors made up for 25.03 per cent ownership in the wind turbine maker, data compiled from stock exchanges NSE and BSE showed.

MOFSL noted that the renewable energy (RE) sector added a substantial 7.9GW of power generation capacity in July–August, with 87 per cent coming from solar and 13 per cent from wind. In conventional sources, thermal capacity (coal and gas) rose by 2.1GW during the same period, reaching 244GW. According to MOFSL, this indicates that conventional capacity additions remain resilient, even as renewable sources continue to draw strong attention from investors and policymakers.