Suzlon Energy delivered a stellar performance in Q2FY26. 565MW production was completed, EBITDA grew by 145%, and PAT reached a record high. Despite this, Nuvama Institutional maintained a HOLD rating on the stock with a target price of ₹66.
Suzlon Energy Stock: Suzlon Energy has released its Q2FY26 results, showcasing record performance. The company has surpassed market expectations, yet brokerage house Nuvama Institutional Equities has maintained a HOLD rating on the stock.
Nuvama has set a target price of ₹66 for this stock for the next 12 months. The current share price is ₹60, suggesting an estimated return of approximately 10% for investors. This implies that the potential for a significant further surge in the company's share price is considered limited, and investors should therefore avoid hasty decisions.
Suzlon's Stellar Performance in Q2FY26
In the second quarter, Suzlon completed 565 MW of work, significantly exceeding market estimates of just 375 MW. This b performance led to an increase in operating margin to 18.6%, compared to an earlier estimate of 16.2%.
EBITDA, or operating profit, surged by 145% compared to the previous year, reaching ₹7,200 crore. Net profit (PAT) also saw a record increase, climbing to ₹12,800 crore. The largest contributor to this was a “Deferred Tax Asset (DTA)” of ₹7,200 crore. This implies that the company will face virtually no tax burden in FY26, although tax payments may increase in FY27. The company also stated that an additional DTA of ₹20,000 crore could be created by FY28, which would cover past losses.
This performance clearly indicates that Suzlon Energy's earning and profitability potential remains b. The company has not only increased production but also improved cost control and operational efficiency.
Strong Sales and Order Book
Suzlon Energy's total revenue in Q2 was approximately ₹38,700 crore, an 84% increase compared to the previous year. The company currently has an order book of 6.2 gigawatts. This indicates that Suzlon has no shortage of work for the next 2 to 2.5 years, and its revenue is likely to remain robust.
The company aims to complete 2.75GW of work in FY26. A target of approximately 3.2GW of delivery has been set for each of the next two financial years, FY27 and FY28. This demonstrates that Suzlon is not only succeeding in current projects but also planning with future demand in mind.
Management Change
Suzlon has announced that Rahul Jain will take over as the company's new Chief Financial Officer (CFO) starting December 15, 2025. He brings over 20 years of experience.
This management change is expected to further strengthen financial strategy and corporate governance. Experts believe that the appointment of the new CFO will make the company's decision-making process faster and more effective, contributing to Suzlon's stability and performance in the long run.
Market Share
Nuvama believes that Suzlon Energy can significantly benefit from government and hybrid projects in the future. The company has a b base of commercial and industrial customers, accounting for approximately 54% of its business.
However, Nuvama also believes that Suzlon's overall market share might settle at the 30–35% level. This is due to the intense competition expected in solar and Battery Energy Storage System (BESS) projects in the coming years. To maintain its lead, the company will need continuous innovation and improvements in efficiency.
Target Price
Nuvama stated that Suzlon Energy currently shows limited upside potential. Hence, they have maintained a HOLD rating.
The target price, previously ₹67, has now been revised to ₹66. This suggests a slight potential for an increase in the share price, but expectations for significant returns are currently low. According to Nuvama, the main risk is that if the wind energy sector's growth is faster than anticipated and Suzlon successfully delivers more than 3.5GW annually, its share price could see further gains.
