Suzlon Energy Limited — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

Suzlon Energy delivered a strong Q3 FY26, marked by record deliveries and a growing order book, reinforcing its market leadership. The company maintained a healthy financial position with significant revenue and EBITDA growth, and a net cash balance. However, execution challenges related to land and grid infrastructure, alongside a slight dip in WTG EBITDA margins due to project mix, remain areas of focus. Management expressed confidence in achieving its FY26 guidance, supported by strategic initiatives and a robust pipeline.

Highlights

  • Record-breaking Q3 FY26 deliveries of 617 MW, highest ever quarterly deliveries in India since inception.

  • Highest-ever order book of 6.4 GW, with over 3 GW in new orders this financial year, resulting in a robust book-to-bill ratio of 1.9x.

  • 9M FY26 Revenue grew 58% YoY to INR 11,211 crores, with Consolidated EBITDA up 77% YoY to INR 2,058 crores.

  • Strong balance sheet with a net worth of INR 8,332 crores and a net cash position of INR 1,556 crores as of December 2025.

  • SE Forge business delivered 33% YoY revenue growth to INR 429 crores and EBITDA of INR 88 crores in 9M FY26, with margins improving from 12% to 20%.

Concerns

  • WTG EBITDA margin dipped to 13.7% in Q3 from 15.6% in H1, attributed to changes in customer mix and a higher proportion of lower-margin project revenue.

  • Execution delays persist due to challenges in land acquisition, Right of Way (ROW) issues, and grid connectivity, impacting the 2,354 MW in active execution.

  • Receivables totaled INR 5,745 crores, with INR 3,600 crores due within one year, indicating working capital intensity.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹4,228 Cr
  • EBITDA
    ₹739 Cr
    YoY +48%
  • PAT
    ₹445 Cr
  • WTG EBITDA Margin
    13.7%

9M

  • FY26 Revenue
    ₹11,211 Cr
    YoY +58%
  • FY26 Consolidated EBITDA
    ₹2,058 Cr
    YoY +77%
  • FY26 PAT
    ₹2,049 Cr

What they filed

Q1 FY27: revenue up 22.3%, net profit down 5.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,103 2,975 3,790 3,132 3,871 +84%4,236 +42%5,493 +45%3,829 +22%
EBITDA294 500 693 599 721 +145%738 +48%964 +39%595 −1%
Net profit201 388 1,181 324 1,279 +536%445 +15%1,114 −6%305 −6%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • SE Forge (9M FY26)
    ₹429 Cr Revenue33% YoY Growth₹88 Cr EBITDA20% EBITDA Margin

Order book

high confidence

Total value

6.4 gigawatt

as of 2025-12-31 quantified

Execution

2,354 megawatt is in active execution in various stages.

Composition

Mix 3 client types
  • C&I and captive segment 51%
  • Bidding 36%
  • PSU segment 13%

Share of order book by client type

Pipeline

qualified rfp

Strong development pipeline of 25-plus gigawatt

Cancellations & deferrals

  • deferred: 253 megawatts of turbines pre-commissioned but awaiting grid connection.
  • deferred: 80 megawatts awaiting commissioning due to a 'temperature issue' (MNRE/MoP confusion).
  • deferred: 50-60 megawatts from pre-FY25 pipeline stuck due to land issues in Karnataka.
Order book is strong and growing, with execution being the primary challenge.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net ₹1,556 Cr
    Our net cash position is at INR1,556 crores, further enhancing our financial flexibility and resilience.
  • Liquidity Cash ₹1,556 Cr Adequate working capital limits tied up for execution of the current order book.
    Our net cash position is at INR1,556 crores, further enhancing our financial flexibility and resilience. Adequate working capital limits tied up for execution of the current order book.

Guidance & targets

Growth

  • Y-o-Y growth across key KPIs Growth · FY26 · High confidence 60%
    With strong performance in the first 9 months, we are firmly on track to achieve our FY '26 guidance of 60% Y-o-Y growth across key KPIs.

    — Rahul Jain

Deliveries

  • Deliveries Deliveries · FY26 · High confidence 2.5 gigawatt
    Sir my question is since we have you know completed nine months and regarding our guidance, right, 60% growth across all parameters and around 2.5 gigawatt of deliveries.

    — Mahesh Patil

Market Share

  • Market share Market Share · by end of this year · Medium confidence 25%

    Previously 10% → 25%

    I know that we are only at 10% market share as of today. We gave a guidance we'll reach like 25% by end of this year taking 6 gigawatts as the top and we are still working towards that.

    — J.P. Chalasani

SE Forge Growth

  • SE Forge revenue growth momentum SE Forge Growth · ongoing · High confidence continue
    We expect this growth momentum to continue with stronger domestic demand and export opportunities.

    — Rahul Jain

DTA Recognition

  • DTA asset coming in DTA Recognition · Next quarter · High confidence huge amount
    Next quarter we will have a huge amount of DTA asset coming in our net profit suddenly jump and people will say 300% profit improved.

    — J.P. Chalasani

What to watch in Q4 FY26

FY26 Guidance Achievement

FY26
Current On track for 60% YoY growth and 2.5 GW deliveries (9M FY26 deliveries at 1,625 MW)
Target Achievement of 60% YoY growth and 2.5 GW deliveries

Why it matters

Verifying the achievement of full-year guidance is crucial for assessing operational execution and management's credibility.

With strong performance in the first 9 months, we are firmly on track to achieve our FY '26 guidance of 60% Y-o-Y growth across key KPIs.

Risks & concerns

  • Execution delays due to land acquisition, ROW, and grid connectivity

    high

    2,354 MW in active execution faces delays from land acquisition, Right of Way (ROW) issues, and grid connection problems, including 253 MW pre-commissioned awaiting grid and 80 MW due to a 'temperature issue' (MNRE/MoP confusion).

    Management acknowledged

  • WTG EBITDA margin compression in Q3

    medium

    Q3 WTG EBITDA margin dipped to 13.7% from 15.6% in H1 due to changes in customer mix (lower average sales price) and a higher proportion of lower-margin project revenue.

    Management explained

  • Working capital intensity and receivables management

    medium

    Total receivables are INR 5,745 crores, with INR 3,600 crores due within one year, indicating the cash-intensive nature of projects and potential for delays.

    Analyst acknowledged

  • Uncertainty in US wind market for exports

    medium

    The US market is currently not favoring wind energy, impacting export opportunities, though other geographies like Europe, Australia, South Africa, and Middle East are being explored.

    Management acknowledged

Q&A highlights

8 direct
Aging of execution pipeline and overdue receivables Direct
Pre '25 I think would be somewhere around 50 to 60 megawatts. ... our total receivables are roughly about INR5,700 crores. Those that are not due in terms of saying that certain milestones are still to be completed are roughly about INR2,100 crores. Therefore, the balance number INR3,600 crores ... Yes, largely, I would say. There are no big overdue receivables, I would say.

Analyst questioned the age of projects in the execution pipeline and the extent of overdue receivables, which are critical for working capital and project completion risk.

Asked by Sumit Kishore

WTG EBITDA margin dip in Q3 Direct
What happens is that it depends upon a couple of things. One is the average sales price during the quarter depending upon who is the customer we supplied. So the impact of one large customer not being there this quarter impact is almost about 1.9%. And then the another is roughly because the project revenues have gone up, project margin is being lower than the supply margin. So therefore, you see this. These two are basically causing 300 basis points.

Analyst sought clarification on the reasons for the sequential decline in WTG EBITDA margin, which is a key profitability metric.

Asked by Sumit Kishore

Implication of DevCo launch on balance sheet commitment Direct
No, this is nothing, but what we have been talking from, I think, last few quarters of our taking the development route to increase our EPC share. ... We said that we keep some seed capital and start doing it. What this development company, because we wanted a more focused approach, not getting concerned with the day-to-day project execution and the land concerns in the projects.

Analyst probed whether the new DevCo vertical would increase balance sheet risk or leverage, which is a common concern for capital-intensive sectors.

Asked by Sumit Kishore

Confidence in order book growth given weak renewable tenders Direct
First one is that the current order book even if you look at 51% is from C&I and captive segment. No involvement in the bidding. 36% is from bidding. ... State-level bidding is now picking up. ... SECI-19 ... was oversubscribed by 3x.

Analyst questioned the sustainability of order book growth in a perceived weak tender environment, prompting management to detail their diversified order mix and market trends.

Asked by Deepesh Agarwal

Export pipeline given EU FTA and US trade deal Direct
On the US, Deepesh, everyday morning I check whether we have a potential or not. Because it depends upon what comes on the truth threshold. So wind will happen or wind will not happen, you know and I know. So it is nothing to do with the trade deal because right now from the current government point of view, wind is not favored and they don't want to do wind. ... We are exploring Europe, Australia, South Africa, Middle East and few other countries. As I said earlier, you will see some traction some terms of orders getting announced in the next financial year, but the supply starting and the revenue flowing in will be in FY28.

Analyst sought clarity on international growth prospects, a key diversification strategy, given recent trade agreements and leadership changes.

Asked by Deepesh Agarwal

Suzlon's plan for 5 MW platform vs cheaper Chinese offerings Direct
What I want to reassure you is that our 5 megawatt turbine is now getting into the proto stage and that will come at appropriate time. But the thing let me tell you is that the in spite of the fact there is a 5 megawatt turbine launched, our 3.15 megawatt is going significantly. And now we have also introduced started selling 3.3 megawatt with the revised power curve which has a lower cost per kilowatt hour compared to 3.15.

Analyst questioned Suzlon's competitive positioning and technology roadmap against global peers, particularly regarding larger turbine platforms.

Asked by Deepesh Agarwal

Main pain points for installation delays and slow offtake Direct
Your ROW and first of all land coming in time because the acquiring each land negotiating with farmers becoming a major issue. And then thereafter ROW issues keep cropping up every single day. And the ROW not just for the turbine, including for your 33 kV system. And then your the main evacuation system to be done. For example, this quarter we have a 253 megawatts of turbines pre-commissioned means they can generate today provided they get connected to the grid.

Analyst pressed on the persistent issue of execution delays and slow revenue conversion from the order book, which impacts the company's growth trajectory.

Asked by Shiva

Tax rate and utilization of Deferred Tax Assets (DTA) Direct
The way to look at it also, Nikhil, is that once all of these deferred tax assets that we have are fully recognized, your effective tax rate, cash or noncash should come to 25% because that's the regime that you're in. ... Even as on today, we still have INR1,100 crores more deferred tax assets sitting in our bank. Even if we don't recognize anything further up to INR4,400 crores of cumulative profit from now on what we get we will not pay single rupee of tax.

Analyst sought clarity on the company's future tax liability and the impact of significant accumulated losses and DTA on reported net profit.

Asked by Nikhil

3 min read 6 chapters

Detailed narrative

Record Deliveries and Robust Order Book

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.

Strong Financial Performance and Balance Sheet

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.

Execution Challenges and Margin Dynamics

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.

Strategic Initiatives and Capacity Expansion

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.

SE Forge Performance and Export Outlook

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.

Confidence in FY26 Guidance and Future Outlook

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.

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