Suzlon shares: ICICI Securities hails strong H1 show, expects stronger H2 ; check target

Suzlon share price: Domestic brokerage firm ICICI Securities continues to remain positive on Suzlon Energy in its recent report as it believes that the company has delivered a robust H1FY26 performance led by its wind turbine deliveries at twice on a yearly basis, which in turn, resulted in strong revenue and Ebitda and manifold jump in the bottomline.

Its order book (OB) also grew to 6.2GW as of H1FY26, as it grabbed orders worth 2.2GW in this period. The OB is almost 4 times its FY25 wind turbine deliveries, providing a healthy runway of over 2 years even at current level, noted ICICI Securities. Suzlon maintained its guidance of 60 per cent YoY growth in FY26 across all key parameters.

Suzlon Energy's net profit zoomed more than 6 times on a year-on-year (YoY) basis to Rs 1,278 crore for the September 2025 quarter, while revenue from operations soared 85 per cent YoY to 3,870 crore. Ebitda surged 145 per cent YoY to Rs 720 crore, while Ebitda margins expanded 460 bps to 18.6 per cent for the reported quarter.

"We expect the order outlook for wind to remain healthy for the next 2–3 years, with increasing focus on hybrid and FDRE for RE capacity addition. Suzlon has had better second halves historically, and its strong H1 performance sets the tone for what we estimate to be a robust FY26," it said.

Suzlon’s entry into PSU orders last year augurs well for prospective OI in the medium term. Further, Suzlon is at a vantage with its well-established domestic supply chain, as India has mandated domestic sourcing of key components for new bids. It is also strategically focusing on growing its share of EPC from 20 per cent to 50 per cent by FY28, said ICICI Securities.

Shares of Suzlon Energy dropped nearly a per cent in early trade on Tuesday to Rs 56.85, but staged a rebound of nearly 2 per cent to Rs 57.90 on Monday. The total market capitalisation of Suzlon stood around Rs 79,000 crore. The stock has tumbled nearly 7 per cent in the last one week.

Outlook for the wind industry is positive over the medium to long term, given India’s RE and wind capacity targets. Also, given the increasing complexity of RE power projects, we believe wind may play a crucial role in RE generation going ahead, it added. "We maintain 'buy' with a target price of Rs 76 per cent (unchanged), valuing the business at 40 times FY27E EPS."

However, ICICI Securities has cited any surprise in WTG execution and OI as any upside risk, while any delay in execution may cause a downside rise for the company. The brokerage firm is expecting a nearly 33 per cent upside in the stock from its current levels.