Suzlon Energy anticipates strong Q1 FY26 profit and revenue growth, driven by wind turbine execution and steady EBITDA margins amid seasonal challenges (MoneyControl)
The Q1 FY26 results of Suzlon Energy will be announced on Tuesday, and market analysts expect robust gain compared to last year owing to a good performance in execution as well as a healthy order backlog.
Revenue jumping by nearly 60 YoY is expected due to the wind turbine execution of 420-450 MW, supported by the sequential dip expected on seasonal factor bases because it is a renewable energy company. PAT is expected to grow between 55 and 58% YoY.
The YoY numbers look very good, but they are expected to come down for quarter-on-quarter (QoQ) comparisons, a very typical trend for Suzlon, given the seasonality of the project execution. Revenue likely to be reduced during the quarter by 12-15% on QoQ basis, net profit is expected to decline too at around 19%.
ALSO READ: BEML Hub Inaugurated by Rajnath Singh; Know about the Project..
Brokerages like JM Financial, Motilal Oswal Financial Services (MOFSL), and Nuvama Institutional Equities have joined this chorus of expectation as they forecast revenue of Rs 3,238-3,330 crore, with PAT hovering between Rs 469 crore and Rs 479 crore.
The EBITDA margin is expected to remain stable at 17-18%, in the trend of FY25 averages. However, fluctuation in Engineering Procurement and Construction (EPC) mix continues to be a critical driver for future quarters.
Both investors and analysts are watching very closely how Suzlon manages this mix, as this could derail profits from very good topline growth.
ALSO READ: Suzlon Energy shares shoot up 7% after securing a 381 MW order
Like the rest of the market, Suzlon's stock has had much volatility in the past few months along with the uncertainties of the market and challenges posed by the sector itself.
At present, it is trading around Rs 63.58 with a slight gain of 0.33%, and the stock has fallen about 3% in the current year so far. Nonetheless, the positives remain, with the company still capturing long-term investor attention as a renewable energy play, given India's growing focus on sustainable energy solutions.
Moreover, the pace of execution and margin stability remains the main things to watch. According to the brokerage note by Nuvama, guidance from the company would indicate execution of about 420 MW in Q1FY26 and still holding margins at 17-18%. How successfully Suzlon manages these conditions will be critical in the immediate term and in maintaining investor confidence as market dynamics evolve.
ALSO READ: ‘Acche Din for Corrupt, like Chanda Kochhar’, ICICI MAB Backlash Continues
