Suzlon Hits 52-Week Low as Shares Slide After Results

At ₹33.21, Suzlon Energy shares hit a 52-week low on Friday, falling nearly 10%. Investors weighed strong sales against weaker profits at the wind turbine maker. The drop came despite record quarterly deliveries, as shrinking operating margins took centre stage. ^2,3

That margin fell to 14.8% in the September quarter, from 18.6% a year earlier. Suzlon’s revenue rose 26% to ₹4,869 crore, helped by deliveries of 710 megawatts. But earnings before interest, tax, depreciation and amortisation stayed nearly flat at ₹720 crore. Reported net profit fell 69% to ₹394 crore, though the comparison is affected by an ₹891 crore deferred tax benefit recorded a year earlier. Excluding that item, profit edged up 1.3%. ^1,2

The nearly flat ₹720 crore result raises a harder question than whether Suzlon can sell more turbines: can it keep enough of each sale as costs rise? Brokerages cited pressure from commodity prices and currency moves, the mix of projects, and the cost of the company’s “Suzlon 2.0” expansion. The company has orders for about 6,009 megawatts and is taking on more project construction work, which can bring extra costs. Analysts cut their targets, though some kept Buy ratings. ^3,5

Suzlon now has to turn that 6,009-megawatt order book into completed projects without further damage to margins or cash flow. The company says it delivered 710 megawatts and commissioned 454 megawatts in the quarter. More than 1.25 gigawatts of erected turbines are still awaiting commissioning. Investors will be watching the next steps in that pipeline, as well as the company’s stated aim to raise construction work to half its order book by FY28. ^1,8