Suzlon Energy Limited

Suzlon Energy achieved record-breaking deliveries of 617 MW in Q3 FY26, marking the highest quarterly volume since its inception in India. This contributed to a total of 1,625 MW delivered in the first nine months of FY26, representing a 66% year-on-year growth and surpassing the full-year FY25 level of 1,550 MW. The company's order book reached an all-time high of 6.4 GW, bolstered by over 3 GW in new orders this financial year, resulting in a strong book-to-bill ratio of 1.9x. The S144 turbine order book alone exceeded 5.4 GW, reflecting strong customer confidence.

For Q3 FY26, Suzlon reported a revenue of INR 4,228 crores, with EBITDA reaching INR 739 crores, a robust 48% year-on-year growth. PBT stood at INR 567 crores and PAT at INR 445 crores. For the nine-month period of FY26, revenues grew 58% year-on-year to INR 11,211 crores, and consolidated EBITDA increased 77% to INR 2,058 crores, with PAT improving to INR 2,049 crores. The company's balance sheet remains strong, with a net worth of INR 8,332 crores and a net cash position of INR 1,556 crores as of December 2025, enhancing financial flexibility.

Despite strong order intake, execution remains a challenge, with 2,354 MW currently in various stages of active execution. Key bottlenecks include land acquisition, Right of Way (ROW) issues, and grid connectivity. Management noted 253 MW of turbines are pre-commissioned but awaiting grid connection, and 80 MW are delayed due to a 'temperature issue' involving MNRE and MoP. The WTG EBITDA margin for Q3 FY26 dipped to 13.7% from 15.6% in H1, primarily due to a change in customer mix leading to a lower average sales price and a higher proportion of lower-margin project (EPC) revenue.

Suzlon's 4.5 GW manufacturing capacity is fully operational and scaled to support the current order book. The company is establishing three new AI-enabled smart blade factories to further expand its footprint. A new DevCo (Development Company) vertical has been launched to focus on identifying potential sites for years 3, 4, and 5, acquiring land, and securing approvals, aiming to accelerate EPC offerings and ensure faster project execution by having sites ready for clients.

The forging and foundry business (SE Forge) demonstrated strong growth, with 9M FY26 revenue increasing 33% year-on-year to INR 429 crores and EBITDA reaching INR 88 crores, improving margins from 12% to 20%. While non-wind revenues have been slow to materialize due to the long process of casting prototype approvals, substantial growth is expected in FY27. Suzlon is actively exploring export opportunities in Europe, Australia, South Africa, and the Middle East, with initial traction expected in FY27 and revenue flow by FY28, despite the current unfavorable conditions for wind in the US market.

Management reiterated its commitment to the FY26 guidance of 60% year-on-year growth across key performance indicators and 2.5 GW deliveries, expressing confidence in achieving these targets. They noted a strong order pipeline, with 3-4 GW of non-bidding route discussions ongoing, and expect to maintain a healthy order book. The company also anticipates a significant Deferred Tax Asset (DTA) recognition in the next quarter, which is expected to lead to a substantial jump in reported net profit.