- Consolidated profit up 15% YoY to Rs 445 cr, but sequential profit fell 65%.
- Revenue surged 42% YoY to Rs 4,228 cr, EBITDA margin now 17.5%.
- Record order book of 6.4 GW and highest quarterly deliveries (617 MW).
- Net cash sits at Rs 1,556 cr, giving the firm a solid liquidity cushion.
- Strategic "Suzlon 2.0" push expands into solar, storage, and digital services.
Most investors skimmed Suzlon’s earnings headline and missed the hidden catalyst that could reshape the clean‑energy landscape.
Why Suzlon’s Margin Expansion Beats the Sector Trend
In Q3 FY26 Suzlon reported an EBITDA of Rs 739 cr, up 48% YoY, lifting its EBITDA margin to 17.5% from 16.8% a year earlier. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is a key profitability metric that strips out financing and accounting noise, letting investors focus on core operating performance. The margin improvement, albeit modest, outpaces the average 13‑14% margin seen across India’s wind‑turbine manufacturers, signalling operational leverage from higher volumes and better cost control.
Revenue Surge: Is the 42% YoY Growth Sustainable?
Revenue jumped to Rs 4,228 cr, driven by a 37% increase in net installed capacity (617 MW versus 447 MW YoY). The order book now sits at a staggering 6.4 GW, roughly three times the quarterly delivery. This order backlog is a forward‑looking safety net, especially as the Indian power demand is projected to triple to 4,490 TWh by 2047, with renewables expected to grow tenfold. The wind‑energy segment alone is forecast to expand at a 10% CAGR, reaching 400 GW globally.
Sequential Profit Dip: What the Deferred Tax Asset Story Means
Quarter‑on‑quarter profit fell 65% to Rs 445 cr from Rs 1,279 cr in Q2 FY26. The company attributes the Q2 spike to a one‑off Rs 717 cr deferred tax asset (DTA) that inflated earnings. DTAs arise when a firm expects future taxable income to offset prior losses. Because DTAs are non‑recurring, analysts typically adjust earnings to remove the distortion, which puts Suzlon’s true operating profit growth in a clearer light—still positive, but more modest.
Strategic Shift: Suzlon 2.0 and the Full‑Stack Clean‑Energy Play
Vice Chairman Girish Tanti unveiled "Suzlon 2.0," a transformation that broadens the firm from a pure wind OEM to a full‑stack clean‑energy solutions provider. Key pillars include:
- DevCo – a standalone project development vertical for renewable projects.
- OMS digitalisation – turning the Operations & Maintenance platform into a data‑driven, AI‑enabled service.
- Smart manufacturing – leveraging Industry 4.0 to cut capex and improve yield.
- Cross‑technology integration – bundling wind, solar, storage, and emerging green tech into single contracts.
This diversification mirrors moves by peers such as Adani Green and Tata Power, which have also pursued integrated clean‑energy portfolios to capture higher‑margin services and recurring revenue streams.
Competitor Landscape: How Tata and Adani Are Reacting
Tata Power’s wind segment posted a 12% margin lift in the same quarter, while Adani Green’s order book grew to 9 GW, dwarfing Suzlon’s but at a higher valuation multiple. Both firms are accelerating solar‑plus‑storage bundles, a space Suzlon is now targeting through its DevCo unit. Investors should watch whether Suzlon can win market share in bundled contracts, which typically command 2‑3% higher EBITDA margins than pure turbine sales.
Historical Parallel: The 2017‑18 Turnaround Play
Back in FY18 Suzlon posted a sharp profit bounce after a massive debt‑to‑equity restructuring and a pivot to service contracts. The share price rallied ~40% over 12 months, rewarding investors who recognized the strategic shift. The current scenario echoes that pattern: a profit uptick, strong order pipeline, and a clear roadmap to higher‑margin services. However, the macro‑environment now includes tighter financing conditions and heightened ESG scrutiny, adding new variables to the equation.
Investor Playbook: Bull vs. Bear Cases
Bull Case:
- Order book of 6.4 GW provides visibility for revenue growth through FY30.
- Margin expansion from integrated services could push EBITDA margin above 20%.
- Strong cash position (Rs 1,556 cr) reduces refinancing risk.
- "Suzlon 2.0" aligns with global ESG flows, attracting green‑linked capital.
Bear Case:
- Sequential profit drop highlights earnings volatility.
- Execution risk on DevCo and digital OMS platforms could delay margin accretion.
- Competitive pressure from larger peers with deeper balance sheets.
- Policy uncertainty around renewable subsidies may affect order inflow.
As a reliable and trusted news source, we recommend monitoring Suzlon’s quarterly delivery cadence, cash‑conversion cycle, and the rollout speed of its digital‑first OMS platform before scaling position sizes.