From Textile Roots to Renewable Heights: The Suzlon Story
Founded in 1995 by Tulsi Tanti, Suzlon Energy emerged from a textile business’s need for reliable power. Recognizing wind energy’s potential, Tanti transitioned from textiles to establish Suzlon, which has since become a global leader in renewable energy solutions. Headquartered in Pune, India, Suzlon Energy has installed over 20.9 GW of wind energy capacity across 17 countries, marking its significant global footprint.
Visit Suzlon’s Corporate Profile
Product Portfolio: Harnessing Wind and Solar Power
Suzlon Energy offers a comprehensive range of renewable energy products and services:
- Wind Turbine Generators (WTGs): Models like S120, S133, and S144 cater to diverse wind conditions.
- Solar Energy Solutions: Expanding into integrated solar power solutions.
- End-to-End Services: From site identification to commissioning and maintenance, including operations and maintenance services post-installation.
Suzlon’s turbines are designed for efficiency in low wind areas, making them highly suitable for India’s diverse geography.
Explore Suzlon’s Energy Solutions
Who Are Suzlon’s Customers?
Suzlon’s customer base is diverse, ranging from public sector units, independent power producers (IPPs), to corporate giants. Some notable customers include:
- Indian Railways
- Gujarat State Fertilizers & Chemicals
- Oil and Natural Gas Corporation (ONGC)
- Hindustan Petroleum Corporation Limited (HPCL)
- Infosys and other private sector corporates
Suzlon Energy also partners with international clients across the US, Europe, and Australia for export of wind turbine components.
Financial Performance: A Snapshot
- Revenue (Q3 FY25): ₹3,002.36 crore
- Net Profit (Q3 FY25): ₹386.92 crore
- EBITDA Margin: 16.8%
- Net Profit Margin: 13.1%
Suzlon Energy Q3 FY25 Press Release
Debt has significantly reduced with a debt-to-equity ratio now at 0.0, down from 1.4 the previous year.
What Does Suzlon’s Order Book Look Like?
As of the latest disclosures:
- Order Book Size: Over 2.5 GW of wind projects pending execution.
- Pipeline: Strong future pipeline with increasing tender wins from SECI (Solar Energy Corporation of India) and various state-run renewable auctions.
- Suzlon Energy recently won major orders from Indian Oil Corporation and government-led projects in Rajasthan and Gujarat.
The healthy order book supports visibility for revenue growth over the next two years.
Sector Performance: Renewable Energy in India
The Indian renewable energy sector is booming:
- Government target of 500 GW non-fossil fuel capacity by 2030.
- Wind energy target of 140 GW.
- Policy tailwinds like Production Linked Incentives (PLI) for renewable manufacturing.
However, challenges remain with:
- Delays in project commissioning.
- Transmission infrastructure bottlenecks.
Suzlon Energy, with its domestic manufacturing advantage and cost leadership, is strategically positioned to benefit from these long-term trends.
Peer Comparison: Suzlon Energy vs Industry Players
| Company | CMP (₹) | P/E | Market Cap (₹ Cr) | ROCE (%) | Qtr Profit Var (%) | Sales Qtr (₹ Cr) | Qtr Sales Var (%) |
|---|---|---|---|---|---|---|---|
| ABB | 5,489.85 | 62.00 | 116,334.52 | 38.65 | 54.09 | 3,364.93 | 22.03 |
| Siemens | 2,869.50 | 44.95 | 102,188.79 | 23.61 | -9.59 | 3,587.20 | -3.30 |
| CG Power & Ind | 635.70 | 103.73 | 97,190.23 | 46.63 | 21.01 | 2,515.68 | 27.13 |
| BHEL | 227.50 | 152.65 | 79,216.89 | 3.37 | 123.31 | 7,277.09 | 32.22 |
| Suzlon Energy | 57.90 | 66.96 | 78,386.44 | 24.93 | 90.56 | 2,974.83 | 90.64 |
| Waaree Energies | 2,707.50 | 41.60 | 77,781.92 | 35.12 | 129.68 | 4,003.93 | 36.38 |
| Hitachi Energy | 13,899.90 | 197.47 | 61,955.16 | 17.85 | 498.08 | 1,620.27 | 27.16 |
Source: Screener.in
Latest News Around Suzlon Energy
- New Blade Factory: Suzlon inaugurated a new blade manufacturing unit in Tamil Nadu, aimed at expanding its turbine production capacity.
- Strategic Partnerships: Tied up with Siemens Gamesa and Vestas for certain co-development projects.
- Financial Prudence: Recent reports suggest Suzlon is aiming for free cash flows by FY26, reflecting a matured balance sheet approach.
Stock Performance and Analyst Outlook
- Current Share Price: ₹58.30
- 1-Year Target Price Range: ₹60.60 – ₹86.10
Analysts expect strong earnings growth driven by order execution and margin expansion. However, short-term market volatility linked to elections and global economic conditions may affect stock movements.
Investment Thesis: Who Should and Who Shouldn’t Invest?
Ideal for:
- Long-term investors believing in India’s renewable energy transition.
- Investors seeking exposure to energy transition themes.
- Those comfortable with mid-cap volatility but wanting sectoral growth potential.
Not ideal for:
- Conservative investors seeking steady dividend yields.
- Those with low risk appetite given sector policy dependencies.
- Short-term traders expecting quick gains.
Suzlon Energy is more than just a turnaround story—it is now positioned as a key pillar in India’s renewable energy future. A healthy order book, improved financials, and a focused management team make Suzlon a compelling long-term play. Nevertheless, prudent monitoring and portfolio diversification remain essential while investing in such sector-sensitive stocks.
Disclaimer: This blog is purely informational. Consult a SEBI-registered advisor before making investment decisions.
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