Suzlon Energy Limited

Suzlon Energy achieved a transformative year in FY25, reporting its highest-ever revenue, EBITDA, and PAT since FY17. Consolidated revenue surged 67% YoY to INR 10,851 crores, while consolidated EBITDA grew 80% YoY to INR 1,857 crores, with the EBITDA margin improving to 17.1% from 15.8% in FY24. The company also reported a robust PAT of INR 2,072 crores, including a significant deferred tax asset recognition of INR 600 crores, marking a 190% YoY growth.

The company reported an all-time high order book exceeding 5.5 gigawatts as of Q4 FY25, with the S144 model alone accounting for over 5 gigawatts. Suzlon secured 1.5 gigawatts from NTPC PSU tenders, underscoring its leadership. In FY25, Suzlon delivered a record-breaking 1,550 megawatts, more than double the previous year's deliveries of 710 megawatts. Management expressed confidence that the order book provides visibility for the next 18-24 months, with a focus on ramping up execution capabilities.

Suzlon's manufacturing capacity stands at 4.5 gigawatts, with both Nacelle facilities in Daman and Pondicherry fully operational. The company has also expanded its blade manufacturing footprint with new plants in Madhya Pradesh and Rajasthan. Management stated that the 4.5 GW capacity can deliver 5.5 GW with productivity improvements and that demand capacity is not a constraint. The S144 model is considered suitable for current market requirements, with future variants planned as needed by the country's tariff structure.

For FY26, Suzlon is confident of achieving 60% growth across key parameters including deliveries, revenue, EBITDA, and normalized PAT. The WTG division contribution margin is expected to be maintained at approximately 23%, while the consolidated EBITDA margin is projected to remain around 17%. Deliveries are targeted to reach 6 gigawatts in FY26, 7-8 gigawatts in FY27, and approximately 9 gigawatts thereafter, reflecting a strong growth trajectory.

Suzlon's balance sheet as of March '25 reflects exceptional strength with a consolidated net worth of INR 6,106 crores. The net cash position increased to INR 1,943 crores, up INR 836 crores from Q3 FY25. The company created liabilities of approximately INR 900 crores, including INR 400 crores for the Renom additional stake buyout and INR 400 crores for the One Earth put option. Capex for FY26 is estimated at INR 400-450 crores, allocated for sustenance, R&D, IT, and capacity augmentation, an increase from INR 350 crores in FY25.

The draft notification on the inclusion of WTGs on the RLMM list is expected to significantly boost the domestic supply chain. Suzlon, as an integrated domestic OEM, is fully compliant with these norms, which include domestic manufacturing, cyber security, and R&D within India. Management highlighted that the adequate domestic capacity (OEM capacity 20 GW, gearbox 29 GW, blade 28 GW, generator 14.5 GW) means no delays due to capacity and that increased utilization could lead to falling prices. This creates a level playing field for Indian companies.

SE Forge, a subsidiary, showed an increasing trend in Q3 and Q4 FY25, and management expects FY26 to be significantly better. While it can supply for 3 MW turbines and is working to enlarge capacity for larger diameters, SE Forge is also actively exploring non-wind sectors such as railways and defense, and focusing on export markets. This diversification aims to improve capacity utilization and reduce dependence on the wind sector alone.