Suzlon shares fall 20% in 2026 to hit new 52-week low; analyst see over 50% upside

Suzlon shares: Amid the ongoing weakness, shares of Suzlon Energy Ltd dropped another 2 per cent on Friday, to hit new 52-week lows. The stock is down 44 per cent from its 52-week lows at Rs 74.30 in May 2025, while the stock is down 20 per cent in 2026 so far. Despite this weakness, brokerage firms continued to remain positive on the stock, citing over 50 per cent upside.

ICICI Securities has reiterated its 'buy' rating on Suzlon Energy, following a comprehensive review of Suzlon's transformation, debt reduction, and strategic management changes, with further details of the plan anticipated in the coming months. Suzlon's recent initiatives are considered a positive signal for growth prospects by ICICI Securities.

It recently onboarded Ajay Kapur as CEO, who is expected to drive growth in Suzlon’s existing business. Meanwhile, the newly formed Group Executive Council, comprising Chairman and MD Vinod Tanti, Executive Vice Chairman Girish Tanti, and former CEO JP Chalasani, will focus on diversification and strategy. ICICI Securities believes the diversification could improve growth visibility.

Over the past three years, Suzlon has significantly improved its balance sheet, reducing debt from Rs 12,000 crore in FY20 through debt-to-equity conversions and a successful Rs 2,000 crore equity raise in Q2FY24. As of September 2024, it reported net cash positivity with a cash reserve of Rs 1,300 crore, which ICICI Securities highlights as a major factor for financial stability.

Suzlon has announced its 'Suzlon 2.0' vision, aiming to expand from wind energy solutions into diversified renewable energy (RE) offerings, including solar and battery energy storage systems (BESS). The move is seen as a response to recent execution challenges in the wind sector, particularly those related to transmission infrastructure, land acquisition, and regulatory delays.

ICICI Securities points out that demand for wind power has found new growth pillars in FDRE and hybrid power. The company’s order book reached approximately 6.4GW in January 2026, providing more than two years’ execution visibility. "Suzlon, being the market leader in the wind turbine industry, is a natural beneficiary of this shift," it said.

The broader renewable sector benefits from regulatory changes such as the government's annual tendering of at least 10GW of wind capacity. The outlook for wind energy remains positive in the medium to long term, given India’s ambitious RE and wind targets. According to ICICI Securities, wind may play a crucial role in RE generation going ahead.

Suzlon’s order book, as of January 2026, is 4.1 times its FY25 wind turbine delivery volume. ICICI Securities remains positive on the stock with a target price of Rs 65 apeice, suggesting nearly 53 per cent from today's low. Key risks include potential surprises in wind turbine generator execution, order intake, and any unforeseen delays, as flagged by the brokerage.

Suzlon Energy reported a 14.8 per cent rise in net profit on a year-on-year (YoY) basis to Rs 445.2 crore, while its revenue rose 42.4 per cent YoY to Rs 4,228.1 crore for the December 2025 quarter. Ebitda increased 48 per cent YoY to Rs 730.5 crore, while Ebitda margins improved by 70 basis points to 17.3 per cent for the reported period.

"We believe that bringing in a slew of high-profile CXOs with non-core expertise under a single business (WTG manufacturing) risks setting in unfavourable group dynamics and unrelated diversification. Critically, such a reshuffle is unlikely to relieve the pain of widening gap between deliveries and commissioning," said JM Financial.

This is corroborated by a marketing veteran Deepesh Nanda leaving Tata Power Renewable Energy (TPREL) as MD & CEO in the face of persistent execution challenges, it added, maintaining a 'buy' on Suzlon with a target price of Rs 64 based on 25 times FY28E EPS considering 2.5GW/3GW/3.2 GW deliveries during FY26E/27E/28E.