Financial Performance Analysis
Suzlon Energy demonstrated significant financial scaling in FY26, with consolidated revenue reaching ₹16,679 crore, up 54% from the previous fiscal. Profit Before Tax (PBT) rose 67% to ₹2,422 crore, while Profit After Tax (PAT) stood at ₹3,163 crore. The PAT figure includes a one-time recognition of deferred tax assets amounting to ₹742 crore.
Operational efficiency improved as EBITDA margins expanded by 100 basis points to 18.1%. The Wind Turbine Generator (WTG) segment was the primary driver, with revenue growing 65% to ₹14,040 crore. Additionally, the Foundry and Forging business (SE Forge) reported 22% revenue growth, contributing to a diversified earnings base.
Management Outlook and Strategic Pivot
Management confirmed that they have met the 60% growth commitment made at the start of FY26. Looking ahead, the company is targeting a 50% share for EPC (Engineering, Procurement, and Construction) contracts in its order book by FY28, up from the current 28%. This shift is intended to enhance margins and provide end-to-end solutions to customers.
Management also highlighted the successful launch of the 'Blue Sky' platform in Spain, marking a strategic re-entry into European and export markets with high-capacity 175 and 163 turbines designed for diverse wind regimes. A capex run-rate of approximately ₹600 crore is anticipated to support capacity expansion.
Sector Dynamics and Market Positioning
- India saw record wind installations crossing 6 GW in FY26, the highest since 2017.
- National targets aim for 100 GW of wind capacity by 2030, supported by a strong pipeline of PSU and C&I bids.
- Management projects industry-wide installations to reach 10 GW in the near term and 15 GW by FY31.
- There is a growing preference for FDRE (Firm and Dispatchable Renewable Energy) solutions where wind plays a dominant role.
- The AP Government has extended the Project Implementation Agreement (PIA) for 2.1 GW, providing long-term visibility.
Future Milestones
In FY26, Suzlon transitioned into a scaled, profitable and financially strong market leader in the wind sector. Our focus now is on expanding our EPC offering and leveraging our S144 platform to accelerate order book growth.
What to Watch
- Execution timelines for the 5.9 GW order book as the company shifts toward complex EPC contracts.
- Impact of regulatory tightening on Deviation Settlement Mechanism (DSM) forecasting rules for wind power.
- Working capital management as PSU and state-level project shares increase in the total mix.
- Monetization of the 2.1 GW Andhra Pradesh development rights over the next two years.
