Suzlon Energy Limited

Suzlon Energy achieved its highest-ever Q1 deliveries of 444 MW in FY26, marking a significant execution milestone in its 30-year history. This strong operational performance translated into robust financial results, with consolidated revenue growing 62% year-on-year to INR 3,117 crores. EBITDA also saw a substantial increase of 62% to INR 599 crores, and the EBITDA margin expanded by 86 basis points to 19.2% from 18.4% in the prior year, reflecting improved operational efficiency.

The company's order book surpassed 5.7 GW, demonstrating a consistent growth trajectory over the past 10 consecutive quarters. The S144 platform alone accounts for over 5 GW of this order book, highlighting its market acceptance. Management indicated that 54% of the order book comes from C&I clients and 21% from PSUs, with an active pipeline of additional orders under discussion, providing strong revenue visibility for the coming years.

The recent amendment to the wind ALMM procedure by MNRE is viewed as a significant policy shift that creates a level playing field for all industry participants. Suzlon, being fully compliant, expects this to remove previous competitive disadvantages and strengthen supply chain resilience by mandating domestic sourcing for key components. This regulation is anticipated to significantly benefit Suzlon's manufacturing units, including SE Forge, for castings and bearing rings.

Himanshu Mody, the Group Chief Financial Officer, announced his decision to step down effective August 31, 2025, after four years of service. Management acknowledged his significant contributions to the company's financial turnaround. A search for his successor is in an advanced stage, with the company assuring stakeholders of a smooth transition and continued strong financial leadership.

While Suzlon achieved record deliveries, commissioning timelines faced delays due to client-side land acquisition issues and the readiness of 33kV evacuation systems, particularly affecting non-EPC projects which constitute less than 25% of the order book. To mitigate these challenges, Suzlon is strategically prioritizing projects with partial land availability and proactively acquiring land in advance for future EPC projects, with the results of these efforts expected to materialize by FY27.

Despite a strong Q1 contribution margin of 26%, management guided for a full-year FY26 contribution margin of 22-23%, noting that the Q1 performance was an outlier due to specific high-sales-price orders and lower project activity. The company is also focused on improving working capital efficiency, aiming to reduce net working capital days from the current 90-100 days (down from 120 days) to approximately 75 days.

The Indian wind industry is projected to install 6 GW of capacity in FY26, with expectations to grow to 7-7.5 GW by FY27 and 8-9 GW thereafter. Suzlon aims to maintain a market share of 24-26%. The company continues its in-house R&D, focusing on developing new models, particularly 3-4 MW turbines, which are considered optimal for India's low wind speeds and logistical constraints, rather than larger megawatt sizes.