Suzlon Energy Limited

Suzlon Energy reported a robust Q2 FY26, achieving a record-breaking 565 megawatts in execution, the highest ever for a second quarter in its 30-year history. Consolidated revenue surged by 145% year-on-year to INR 3,866 crores, with EBITDA also increasing by 145% to INR 721 crores. The EBITDA margin improved significantly by 460 basis points, reaching 18.6% for the quarter, and Profit After Tax (PAT) stood at INR 1,279 crores.

India's power sector reached a cumulative installed capacity of over 500 gigawatts in Q2 FY26, with non-fossil fuel capacity comprising 50%, signaling a strong renewable transition. The recent GST reduction on wind turbines from 12% to 5% is expected to lower capital expenditure and accelerate capacity additions. Management projects total wind installations in India to reach approximately 6 gigawatts by FY26 and 8 gigawatts by FY27, revised up from an earlier estimate of 7 gigawatts for FY27.

Suzlon's order book has exceeded 6.2 gigawatts, with over 1.4 gigawatts of new orders added in Q2 FY26, reaffirming market leadership. The company aims for a 25% market share in FY26. To accelerate execution, Suzlon is focusing on land development, having identified 23+ gigawatts of potential sites and initiated land acquisition for 7.5 gigawatts, with 1,150 megawatts already acquired. The current order book is executable over the next 18 to 24 months.

Suzlon is strategically increasing its EPC (Engineering, Procurement, and Construction) share, targeting a 50:50 ratio by FY28, up from the current 20:80. This shift is expected to enhance execution control and margins. The forging and foundry business, Renom, showed strong performance, with 53% year-on-year growth in H1 FY26 and EBITDA jumping 243% to INR 52 crores, driven by internal efficiencies and increased supplies to non-Suzlon customers.

The company reported a strong consolidated net worth of INR 7,860 crores as of September 2025. An incremental net deferred tax asset (DTA) of INR 718 crores was recognized in Q2 FY26, bringing the total DTA to INR 1,229 crores, providing a tax shield of INR 5,000 crores on future profits. Suzlon maintains a net cash position of INR 1,480 crores and has adequate banking limits of up to INR 7,000 crores for current order book execution, ensuring financial flexibility.

MNRE's detailed SOP for local manufacturing of wind turbines and the REEIMS (Renewable Energy Equipment Import Monitoring System) reinforce commitment to domestic production. Management views these policies as creating a level playing field and encouraging local manufacturing, with Suzlon already meeting requirements. The company expects further policies to focus on subcomponent level manufacturing, ensuring a robust domestic supply chain.

Suzlon's 3.15 MW turbine remains a successful product, with over 5 GW in the current order book, and 90% of the current order book being for this model. The company is actively developing its next generation of turbine models, which are expected to be announced shortly, to maintain competitiveness against new 4-5 MW variants launched by competitors. Management emphasizes cost per kilowatt-hour as the key metric for customers, where their current models offer a competitive edge.