30 May , 2025 By : Debdeep Gupta
Wind energy player Suzlon Energy Ltd shares jumped 13 percent in trade on Friday, May 30, after the renewable energy solutions posted higher-than-expected profit for the quarter ended March 31, 2025.
Suzlon Energy reported 365 percent increase in consolidated net profit to Rs 1,181 crore in the March quarter, mainly due to an exceptional gain boosted by a deferred tax gain of Rs 600 crore.
The company reported a consolidated net profit of Rs 254 crore in the year-ago period, a NSE filing said. During 2024-25, the consolidated net profit also rose to Rs 2,072 crore from Rs 660 crore in the previous financial year.
The company's total revenue from operations rose 73.2 percent to Rs 3,773.5 crore in the March quarter of FY25, compared to Rs 2,179.2 crore in the same period, a year ago.
The earnings before interest, taxes, depreciation and amortization (EBITDA) rose 99 percent to Rs 677 crore, against Rs 340.4 crore, in year-ago period, while margin was at 17.94 percent against 15.62 percent year-on-year (YoY).
At 9.18 am, shares of the firm rallied to Rs 73.61, higher by 12.5 percent on the NSE.
Nuvama Institutional Equities noted that in Q4, Suzlon Energy executed 573MW, against its estimate of 475MW, resulting in a top line of Rs 3,773.5 crore. Despite the beat on execution, the revenue was only two percent above the brokerage's estimate due to lower-than-expected realisations due to lower EPC mix.
"We reckon Suzlon Energy shall remain a key beneficiary of the rising mix of Firm and Dispatchable Renewable Energy/round-the-clock (RTC) power/Hybrid in GoI tenders. The firm also remains a key player in commercial and industrial (55 percent of order book) and PSU segment, and benefits from a duopolistic market in engineering, procurement and construction wind turbine generator capabilities and maintains an overall market share of ~30 percent."
The brokerage maintained its hold rating on the stock, but hiked its target to Rs 68 per share.
Morgan Stanley has an 'overweight' rating on Suzlon with a target price of Rs 77 per share. For FY26, the company has guided for 60 percent year-on-year growth in WTG volume, revenue, EBITDA, and PAT. The WTG segment's contribution margin is expected at 23 percent, while the tax rate is projected at around 25 percent, primarily as a non-cash expense.
Suzlon Energy delivered a strong set of results, said Motilal Oswal, with deliveries and EBITDA coming in ~15 percent/38 percent ahead of its expectations. "Management maintained its positive outlook and guided at least 60 percent YoY improvement in deliveries, revenue, EBITDA, and adjusted PAT for FY26. This guidance is broadly in line with our/street estimates and highlights management’s confidence in the sector."
The brokerage reiterated its 'buy' call, with an increased target price of Rs 83 per share.
0 Comment