August 19, 2025

The storm is brewing for Suzlon Energy’s shares! On Monday, the stock plunged up to 5.7%, hitting Rs 60.06 on the BSE. This drop marked a scary four-day losing streak—down a total 10.6%. What shook investors? It all began after the company announced its June quarter (Q1) results that didn’t match expectations on profit after tax. To make matters spicier, the company revealed that Group Chief Financial Officer Himanshu Mody will step down on August 31, stirring worries about leadership. Suzlon’s Q1 showed a mixed bag. Net profit rose 7% year-on-year to Rs 324 crore, but a deferred tax charge of Rs 134 crore caused the profit miss. Revenue zoomed up 55% to Rs 3,117 crore—thanks to higher turbine sales. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 62% to Rs 599 crore, with margins climbing to 19.2%. Even the order book got bigger for the tenth straight quarter, adding another 1GW. But still, the market mood turned gloomy. The stock slipped below all its 5-day to 200-day moving averages, a sign that bears are taking charge. The Relative Strength Index (RSI) at 35.4 nears oversold territory while the MACD remains negative, confirming weakness. Broker opinions show some fire and ice. Motilal Oswal stuck to a spicy 'Buy' rating with a target of Rs 80, excited by "strong execution at 444MW" in Q1 and a sizzling 19% EBITDA margin. They also highlighted a tempting possible 700MW deal with Tata Power. ICICI Securities echoed the optimism, also rating 'Buy' with Rs 76 as the target. They praised Suzlon’s "highest-ever Q1 execution" and the hefty 5.7GW order book—about 3.7 times the expected FY25 deliveries. JM Financial joined the sweet chorus with a 'Buy' call and Rs 78 target, celebrating improved margins thanks to better operating leverage. However, it warned that while order deliveries are strong, actual installations have been slower lately. Nuvama Institutional Equities cooled down the party with a 'Hold' rating and lowered the target to Rs 67 because of weaker profit margins and the surprise CFO exit—"he played a key role in Suzlon’s turnaround," they stressed. Suzlon isn’t backing down. The company guides for a 60% jump in deliveries, revenue, and EBITDA for FY26. Investors are betting big on the government’s push for 122GW wind capacity by FY32 and soaring demand from commercial and industrial buyers targeting 78GW by FY30. Challenges like land and grid issues remain, but Suzlon’s home-ground dominance, cost efficiency, and swelling orders pipeline keep hopes alive. In short, Suzlon’s ride looks bumpy but exciting. Can the wind power giant bounce back stronger? Investors await the next twist in this energy saga!

Read More at Economictimes →

Tags: Suzlon energy, Q1 results, Stock market, Cfo resignation, Wind energy, Indian stock,