Anand Rathi Bullish on Suzlon Energy’s Comeback, Maintains ‘Buy’ Rating

Anand Rathi, a brokerage firm, is optimistic about Suzlon Energy’s turnaround and has kept its ‘buy’ rating on the stock. The firm believes that India’s wind energy capacity is set to increase to 8–9 GW by FY27 due to strong government support and demand from commercial and industrial sectors.

Past Challenges and Future Prospects

Suzlon has had a tough time in the past with weak demand and high debt. However, its financial health has improved significantly. With rising demand and ambitious government targets, Suzlon is expected to deliver 1.5–2 GW of wind turbines in FY25-26.


The brokerage values the stock at 35 times its estimated earnings for FY26, citing strong growth prospects. It expects supportive government policies to continue driving earnings growth and stock revaluations.

“Government policies will keep boosting earnings and revaluations. Limited competition is also a positive, though challenges like grid connectivity, land acquisition, and increasing competition will affect earnings pace,” said Anand Rathi.

Strong Performance

On Friday, Suzlon reported strong Q4 results. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached ₹3.6 billion, and PAT (Profit After Tax) was ₹2.8 billion, up 54% and 314% year-on-year, respectively. These results exceeded the brokerage’s expectations of ₹3.2 billion for EBITDA and ₹2.6 billion for PAT.

For FY24, Suzlon reported EBITDA of ₹10.3 billion and PAT of ₹6.6 billion, showing year-on-year growth of 25% and 296%, respectively. The company’s current wind turbine order book stands at 3.3 GW, with 66% of these orders being for equipment supplies. Captive, commercial, and industrial (C&I) orders make up 58% of the order book.

Segment Performance

In Q4, Suzlon delivered 273 MW of wind turbines and 710 MW for the entire FY24, up from 664 MW the previous year. Q4 wind turbine EBIT (Earnings Before Interest and Taxes) was ₹656 million, a significant improvement from a loss of ₹152 million in the same period last year. For FY24, wind turbine EBIT was ₹700 million, recovering from a loss of ₹1 billion the previous year.

Operations and management EBIT in Q4 rose to ₹2.24 billion from ₹1.6 billion in the previous quarter, with FY24 EBIT at ₹7.4 billion, up from ₹6.8 billion the previous year. Foundry and forgings EBIT in Q4 increased to ₹216 million from ₹63 million a year ago, with FY24 EBIT at ₹267 million, rebounding from a loss of ₹32 million the previous year.

Future Challenges and Opportunities

The brokerage expects Suzlon to deliver 1.5GW/2GW of wind turbine generators (WTG) in FY25/FY26. However, issues like grid connectivity and land acquisition could delay deliveries, impacting earnings.

Positive Market Conditions for Indian Wind Industry

India ranks 4th globally in renewable energy capacity, including wind and solar power. The country aims to install 500 GW of non-fossil fuel capacity by 2030, achieve net-zero emissions by 2070, and meet 50% of its electricity needs from renewable sources by 2030.

Wind energy currently contributes 10% (43 GW) of India’s total installed capacity of 442 GW, expected to rise to 13% (100 GW) by 2030. Similarly, solar energy, now at 19% (82 GW), is projected to grow to 38% (293 GW) by 2030, significantly increasing its share of the overall power capacity.

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