Suzlon shares: Anand Rathi sees up to 44% upside over record order book; check targets

,Suzlon Energy, a leading Indian wind turbine manufacturer, continues to see robust growth momentum, according to Anand Rathi Share & Stock Brokers which sees company is supported by a record 6.2GW order book as installations in the industry are expected to increase by 9-10GW annually by FY28. Quoting the brokerage report, "we expect the company to deliver 2.6/3.4/3.9GW in FY26/27/28."

The report highlights Suzlon’s consistent performance and sectoral advantages. Anand Rathi stated, "Given its consistent delivery and strong sector tailwinds, we maintain a BUY rating on the stock, valuing it at 40x Sep’27 EPS." This confidence is based on a strong execution pipeline and nearly 7GW of land under development, reinforcing the company’s ability to meet future commitments.

Suzlon delivered a record quarterly performance in Q2 FY26, with revenue, EBITDA, and PAT increasing 84%, 145%, and 166% year-on-year to Rs38.7bn, Rs7.2bn, and Rs5.6bn respectively, beating analyst expectations. As noted in the report, "Revenue/EBITDA/PAT rose 84%/145%/166% y/y to Rs38.7/7.2/5.6bn; ahead of estimates; (vs. ARe of Rs29.7/5.3/2.9bn and Ce of Rs30.9/4.8/2.9bn), largely due to higher WTD deliveries (565MW vs. ARe of 400MW). FY26 growth guidance of ~60% y/y is unchanged."

Suzlon Energy reported a more than six-fold year-on-year increase in net profit to Rs 1,278 crore for the September 2025 quarter. Revenue from operations rose 85 per cent year-on-year to Rs 3,870 crore. Ebitda climbed 145 per cent to Rs 720 crore, with margins improving to 18.6 per cent, up by 460 basis points for the quarter ended September 30, 2025. Deliveries for the period stood at 565 MW, the highest ever for the company.

Management remains optimistic, as Anand Rathi’s report states, "Management reiterates ~60% y/y growth guidance for FY26." The company’s operational progress is further evident with over 1,865MW under execution and EBITDA margins expected to stay in the 17-19% range. The brokerage added, "We expect 34.8%/38.1%/13.8% CAGR in revenue/EBITDA/PAT over FY25–28."

Anand Rathi has maintained its positive stance, saying, "Given consistent execution and strong sector tailwinds, we maintain a BUY rating on the stock with a higher 12-month target of Rs 82 (from Rs 81 earlier), valuing it at 40x Sep’27 EPS." Suzlon’s shares trade at a P/E of 31.8x/26.8x FY27/FY28 EPS estimates as per the brokerage’s revised forecasts.

Suzlon Energy's share price tanked by over 4.5% to Rs 56.92 on Friday, with the company's total market capitalisation standing at Rs 78,500 crore. The stock has fallen almost 7% since Suzlon announced its Q2 results earlier this week, though it experienced a partial recovery as the session advanced. Anand Rathi's target suggest a 44% potential upside from today's low.

As per Friday's lows, the share price has slipped nearly 25 per cent from the 52-week high of Rs 74.30, reached in May 2025. Despite this recent weakness, Suzlon shares are up nearly 10 per cent over the past month, while posting a decline of around 15 per cent over the last year.

Localisation of wind energy components, continued confidence of large utilities in wind energy and shift of projects’ mix to hybrid will continue to give good opportunities to Suzlon, in spite of partial substitution of wind’s share in hybrid projects with Solar+BESS as detailed in Tailwinds to soon become winds, said JM Financial.

"But execution bottlenecks remain critical constraints in scale-up of wind energy, which, we believe, will limit the annual installations to 7-8GW. Suzlon is likely to struggle in maintaining growth momentum from FY28 in the absence of scalable diversification. Considering execution of 2.5GW / 3.1GW / 3.5GW during FY26/FY27/FY28, we maintain 'buy' with target price of Rs 70, "it added.

Suzlon's order book exceeded 6 GW, now at 6.2 GW, following the addition of 2 GW in the first half of the current financial year. The company's net cash position at the quarter's end was Rs 1,480 crore. Market observers are likely to monitor how Suzlon's robust operational performance interacts with the ongoing stock volatility, while the sector remains competitive with other renewable energy firms.

Among other brokerage firms, Motilal Oswal Financial Services raised FY26 estimates by 8 per cent, mainly to account for a lower tax rate in 1HFY26. "We continue to build in deliveries of 2.5/3.4 GW in FY26/27, respectively. We lower the valuation multiple to 30 times (35 times earlier), but reiterate BUY with a revised target price of Rs 74 per share," it added.

Management expect additional Rs 2,000 crore DTA creation post-FY28, said Nuvama Institutional Equities. "We are factoring this into our SotP (Rs 66 per share), on a discounted basis. We are revising FY26E/27E EPS by 49 per cent/-16 per cent to reflect the new DTA creation and retain ‘HOLD’ with a target price of Rs 66 (earlier Rs 67) based on 40 times FY28E," it added.