Suzlon Q2 results preview: What Anand Rathi, MOFSL, Nuvama, Geojit say

Stock analysts have largely maintained their 'Buy' call on Suzlon Energy Ltd, ahead of its September quarter results. Anand Rathi noted that the renewable energy sector navigated the modest Q2 environment, marked by weather-related execution delays and 7-10 days of transitional disruptions from the GST implementation. It believes Suzlon Energy's Q2 deliveries would have moderated against Q1, as monsoon-related disruptions affected project execution and commissioning. Major orders during the quarter were NTPC’s 1,166 MW, Tata Power Renewables’ 838 MW and Zelestra’s 381 MW project, it noted.

The brokerage expects Suzlon Energy to report 36.4 per cent surge in net profit at Rs 287.70 crore for Q2 on 41 per cent rise in sales at Rs 2,970 crore. Ebitda margin is seen at 17.9 per cent in Q2, against Q1's 19.1 per cent and the year-ago quarter's 14 per cent.  

Geojit, which has Suzlon among its top  Diwali picks, said as utilisation rises in the wind turbine generator (WTG) segment and the forging & foundry businesses, Suzlon is positioned to realise volume-driven efficiencies, supporting an expected 117 bps margin expansion (FY25-27E).

"Earnings are projected to grow at a strong 43 per cent CAGR, driven by improved asset turnover and rising profitability. ROE is expected to reach 27.1% by FY27E, setting the stage for a potential valuation re-rating. At 29x, the stock remains attractively priced, leaving significant upside potential," it said.

Nuvama 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. MOFSL retained 'Buy' and a target of Rs 80 on the stock.