Suzlon Energy shares crash 8%, hit 52-week low after Q2 results; should you buy? Check UBS, Motilal Oswal targets

Shares of Suzlon Energy declined sharply on Friday. Image Credit: Suzlon Energy

Shares of Suzlon Energy declined sharply on Friday, falling over 8 per cent after the renewable energy company reported its September quarter results for the financial year 2026-27.

The stock was trading at Rs 33.74 on the NSE, down Rs 3.05 or 8.29 per cent, around 10:32 am on October 30. During the session, it touched a fresh 52-week low of Rs 33.23.

The decline came after the company's consolidated net profit attributable to owners fell 69.2 per cent year-on-year (YoY), while its earnings before interest, tax, depreciation and amortisation (EBITDA) remained largely flat. The company also reported a contraction in its EBITDA margin during the quarter.

Brokerages remained positive on the stock despite the margin pressure. UBS maintained its 'Buy' rating but reduced its target price to Rs 58 from Rs 66. Motilal Oswal also retained its 'Buy' rating with a target price of Rs 60.

At the current market price of Rs 33.74, the UBS target indicates a potential upside of around 71.9 per cent, while Motilal Oswal's target suggests an upside of approximately 77.8 per cent.

Suzlon Energy Q2 results: Net profit falls 69%, revenue rises 26%

Suzlon Energy reported a consolidated net profit attributable to owners of Rs 394.15 crore in the September quarter of FY27, declining 69.2 per cent from Rs 1,279.44 crore in the corresponding quarter of the previous financial year.

The net profit was also 18.4 per cent below Zee Business estimates of Rs 483 crore.

However, the company's revenue from operations increased 26 per cent YoY to Rs 4,869.05 crore in Q2 FY27, compared with Rs 3,865.54 crore in the year-ago quarter. The revenue figure was 2.7 per cent above Zee Business estimates of Rs 4,740 crore.

Total income also increased 25.9 per cent to Rs 4,908.04 crore from Rs 3,897.33 crore in the corresponding quarter last year.

The company's EBITDA declined marginally by 0.3 per cent YoY to Rs 719 crore against Rs 721 crore in Q2 FY26. However, the figure missed Zee Business estimates of Rs 776 crore.

EBITDA margin contracted to 14.7 per cent in the September quarter from 18.6 per cent a year earlier. It was also below the estimated 16.4 per cent.

The performance reflected the pressure on profitability despite higher revenue and improved delivery volumes.

Suzlon Energy Q2: Deliveries rise 26%, order book crosses 6 GW

Suzlon Energy reported record wind turbine generator (WTG) deliveries of 710 MW during the September quarter, registering a 26 per cent increase year-on-year.

The company also commissioned 454 MW during the quarter. Its order book stood at more than 6 GW, providing visibility for the next 18 months, while order intake exceeded 1.5 GW in the first half of FY27.

Motilal Oswal highlighted the improvement in execution during the first half of the financial year. According to the brokerage, Suzlon delivered 1.2 GW of wind turbine generators in H1 FY27, up 21 per cent YoY.

Installations also increased significantly, with first-half installations rising 168 per cent year-on-year to 723 MW. The brokerage noted that an erected stock of around 1.25-1.3 GW was awaiting grid commissioning.

It also highlighted management's expectation that India's wind installations would surpass 10 GW in the near term and reach 15 GW by FY31. However, the brokerage said investors would need to monitor fresh order inflows, project deliveries and installations during FY27 and FY28.

UBS cuts Suzlon target to Rs 58, maintains Buy rating

UBS maintained its 'Buy' rating on Suzlon Energy but reduced its target price to Rs 58 from Rs 66.

The brokerage highlighted that the company's Q2 revenue increased 26 per cent year-on-year, while EBITDA remained largely flat. It also pointed to a 386-basis-point contraction in EBITDA margin to 14.8 per cent.

UBS noted that wind turbine deliveries increased 26 per cent YoY to 710 MW, while the order book of around 6 GW provided approximately 18 months of visibility.

However, the brokerage flagged concerns over profitability and cash flow. It noted that Suzlon had reduced its FY27 EBITDA margin guidance to 15-16 per cent from the earlier guidance of 17 per cent. The company's operating cash flow also turned negative at Rs 2 billion in the first half of FY27.

UBS further cut its earnings per share (EPS) estimates for FY27, FY28 and FY29 by 10 per cent, 11 per cent and 9 per cent, respectively.

Despite the near-term concerns, the brokerage retained its long-term expectations for Suzlon, including a market share of around 40 per cent and annual sales of approximately 10 GW by FY31.

At the current market price of Rs 33.74, UBS' revised target of Rs 58 implies an upside potential of around 71.9 per cent.

Motilal Oswal retains Buy, sees nearly 78% upside

Motilal Oswal retained its 'Buy' rating on Suzlon Energy with a target price of Rs 60. The brokerage said the company's September quarter revenue stood at around Rs 4,880 crore, approximately 4 per cent above its estimate, supported by wind turbine deliveries that were 7 per cent higher than expected at 710 MW.

However, EBITDA came in at around Rs 720 crore, 7 per cent below its estimate. The EBITDA margin stood at 14.8 per cent, compared with 15.5 per cent in Q1 FY27 and 18.6 per cent in Q2 FY26.

Motilal Oswal attributed the year-on-year margin contraction to several factors.

These included non-recurring operating expenses of around Rs 50 crore, contributing approximately 100 basis points to the margin impact. Changes in customer and project mix accounted for another 150-180 basis points, while foreign exchange and commodity inflation amid the West Asia crisis contributed around 50 basis points.

The brokerage said it had reduced its FY27 and FY28 EBITDA margin estimates to 15.5 per cent and 16 per cent, respectively, from earlier estimates of 17.1 per cent and 16.9 per cent.

Consequently, it cut its FY27 and FY28 EBITDA estimates by 9 per cent and 5 per cent, respectively.

Motilal Oswal arrived at its target price of Rs 60 by applying a price-to-earnings multiple of 30 times to its FY28 estimated earnings per share.

At Rs 33.74, the target price of Rs 60 indicates an upside potential of approximately 77.8 per cent.

Suzlon Energy share price performance

Suzlon Energy shares have underperformed the Nifty Midcap 50 across different time periods. The stock has declined 9.79 per cent over one week, compared with a 2.63 per cent gain in the Nifty Midcap 50.

Over one month, Suzlon shares have fallen 14.56 per cent, while the index has declined 3.17 per cent.

The underperformance is also visible in the longer-term returns. The stock has declined 35.70 per cent year-to-date, compared with a 4.92 per cent fall in the Nifty Midcap 50.

Over one year, Suzlon Energy shares have lost 42.33 per cent, against a 3.30 per cent decline in the benchmark index.

The stock's 52-week high stands at Rs 61.50, recorded on November 6, 2025. Its total market capitalisation stood at approximately Rs 46,381 crore.