Suzlon Energy's Surprising Drop: Why Investors Might See a 55% Upswing in 2026

Despite being one of the top holdings among retail investors, Suzlon Energy has faced a challenging year in 2025, with its shares struggling to maintain a five-year unbroken rally. The stock has been under pressure due to a shift in investor preference toward large-cap stocks and company-specific issues. However, brokerages remain confident that the stock will bounce back, with some predicting a 55% upside in the near future.

Challenging Period for Suzlon Energy

The shares of Suzlon Energy began the year on a negative note, falling 15% in January and 13% in February. Although the stock saw a recovery over the following three months, the rebound proved short-lived, pushing the stock back into the pressure zone. The company is now on track to register its first annual drop since 2019, with a 17% decline in 2025.

Multiple Concerns Weigh on Sentiment

Several concerns have dragged the stock down, including a slowdown in installations and tepid new order inflows. The management has addressed these issues, projecting a limited impact on near-term order flows from the slowdown in central renewables. However, this has failed to ignite a recovery rally, and the stock remains under pressure.

Brokerages Remain Confident

Despite the weak sentiment, brokerages continue to see the stock crossing the ₹80 level. Anand Rathi has taken a bullish stance, valuing Suzlon at ₹82, implying a 55% upside from its current level. ICICI Securities and Motilal Oswal Financial Services have also reaffirmed their Buy ratings, citing strong execution, rising wind demand, and a multi-year clean energy upcycle.

• Anand Rathi: Buy rating with a target of ₹82
• ICICI Securities: Buy rating with a target of ₹76
• Motilal Oswal Financial Services: Buy rating with a target of ₹74

Strong Past Performance

Although the stock has remained under pressure in 2025, its long-term performance still looks solid. The stock has given 381% returns over the last three years and a 1,025% gain over the last five years. Between April 2023 and September 2024, the stock witnessed a one-way rally, gaining 912%.

Remember, this is just a perspective, not a prediction. It's essential to do your own research and consult with certified experts before making any investment decisions. The views and recommendations made above are those of individual analysts or broking companies.