Suzlon shares fall 14% after Q1 results: Should you buy now? Check targets, upside & more

Suzlon shares target price: Wind turbine major Suzlon Energy Ltd has been on a free-fall since the announcement of its quarterly results on Tuesday. The stock has dropped more than 14 per cent since its earnings but brokerage firms continue to remain largely positive on Suzlon Energy shares, expecting a more than 60 per cent rally in the stock. However, majority have trimmed their targets.

Suzlon Energy Q1 results
Suzlon Energy reported a 5.9 per cent fall in the net profit on a year-on-year (YoY) basis to Rs 305.22 crore, even as revenue increased 22.5 per cent YoY to Rs 3,819.36 crore for the June 2026 quarter. EBITDA came in flat at Rs 596 crore, while margins contracted sharply to 15.96 per cent for the reported quarter.

Suzlon recorded highest-ever Q1 deliveries at 506 MW, up 14 per cent YoY and commissioning of 269 MW, showing a 2.3 times scale-up.  It also recorded new order additions of around 1 GW during the quarter. The company's EPC order share in the order book increased to 32 per cent, rising 10 per cent from a year ago period.

Suzlon Energy share price
Shares of Suzlon Energy plunged 4.35 per cent on Wednesday, to Rs 45.95, with its market capitalization slipping below Rs 64,000 crore. The stock had settled at Rs 48.03 apiece on Tuesday, falling nearly 10 per cent. The latest fall has taken the total correction to 14 per cent in just two session. The stock has tumbled as much as 22 per cent since in this month so far.

What brokerage firms say?
Suzlon reported weak numbers in Q1FY27 with PAT and EBITDA falling 6 per cent  and 0.6 per cent YoY. EBITDA margin contracted 360 bps YoY but revenue grew, driven by higher realisation in the WTG segment. However, margins for the WTG segment fell on account of expenses related to Suzlon 2.0; and geopolitical and supply chain issues, said ICICI Securities.

"Order inflow (OI) has remained healthy at 1GW in YTD-FY27. As a result, its order book (OB) swelled to 6.1GW. Moreover, the OI outlook remains strong as hybrid and wind RE bidding are estimated to remain strong. Given the strong outlook on OI and execution growth in the medium term," it added.

Suzlon's performance indicated the classic leadership dilemma of growth versus profitability. The DevCo model gained traction with 400MW (Tata Power) and 202MW (Waaree) orders. Management guided for a stronger H2, with H1/H2 split of 35–40 per cent/60–65 per cent, EBITDA margin of 17–18 per cent and capex of Rs 700 crore, said JM Financial.

"While solar dominated earlier auctions, its share has steadily declined as tenders increasingly favour RTC/FDRE requiring vanilla wind or wind as a component (4.55GW). During Q1FY27, 9.34 GW of RE capacity has been tendered out versus 17.2GW in Q4FY26," it added.

Suzlon's strong long-term growth outlook, with management reiterating its FY31 target of 10 GW sales, including a 75:25 wind-solar mix, while expecting confirmed repowering orders in India by FY27-end. Margins remained under pressure due to an unfavourable product mix and temporary supply chain disruptions linked to geopolitical tensions in the Middle East, said Motilal Oswal Financial Services Ltd.

It is expanding manufacturing capacity to produce 5 MW turbines, sees a 20 GW-plus opportunity in solar O&M, and expects to finalise battery energy storage system (BESS) partnerships in the coming months. However, investors should monitor fresh order inflows, project execution and installations., it added.

The company maintained a net cash position of Rs 2,320 crore. A healthy order pipeline, improving execution visibility, and a strong balance sheet continue to support the outlook, with deferred deliveries, operating leverage, said Centrum Broking. "We expect revenue and EBITDA to clock 20.9 per cent and 20.6 per cent CAGR over FY26-FY29E," it said.

Suzlon 2.0 initiatives— including higher-capacity turbines, DevCo, repowering, exports, and renewable asset management—expected to drive medium-term earnings and cash flow growth, it added and cut its FY27Ea nd FY28E EPS by 5.5 per cent and 4.4 per cent.

Suzlon Energy reported robust WTG deliveries of 506MW in Q1FY27, driving revenue growth ahead of our expectations through higher realisation. However, profitability missed our estimates due to richer EPC mix and upfront investments for Suzlon 2.0, which resulted in margin compression, said Anand Rathi Share & Stock Brokers Ltd.

Looking ahead, we expect the company’s operating leverage to improve, as execution accelerates through H2. We believe S175 platform, DevCo model and selective international expansion should support growth over the medium-term," it added.

Suzlon share target price
ICICI Securities, Motilal Oswal, Anand Rathi, JM Financial Ltd and Centrum have maintained their 'buy' ratings on Suzlon but the latter two have trimmed their targets. ICICI and Motilal both have a target price of Rs 65 on Suzlon, while JM has given it a target price of Rs 62 (Rs 64 earlier). Centrum has trimmed its target to Rs 74 from Rs 75 earlier, suggesting a more than 60 per cent upside in the stock. Anand Rathi has a target of Rs 56 on it.

Among other brokerage firms, Nuvama has maintained its hold rating on the stock with a slashed target price of 51, while Ambit also cut its target to  Rs 59 (Rs 62 earlier) and Axis Capital retained 'Buy' but with a lower target of Rs 63 (Rs 75 earlier). Among overseas brokerages, UBS and Investec also have a 'buy' rating on it but trimmed their targets to Rs 66 and Rs 67 earlier.