Suzlon Energy shares continue to trade in losses.
Suzlon Energy, India's top renewable energy company, has experienced a steep drop in its stock price in the wake of two dramatic events: a downgrade by broker firm Geojit Financial Services and the resignation of the company's Chief Financial Officer, Himanshu Mody. The events have created uncertainty regarding the stock, which has led to investor fear even though the firm reported strong quarterly numbers.
Geojit Financial Services cut Suzlon's stock to 'Accumulate' from 'Buy' following a meteoric 55% rise in two months from its 52-week low in early April 2025. Geojit made the cut even as it continues to see strong future prospects for Suzlon, raising its target price to ₹77 from ₹71, and attributing that to a robust order book of 5.5 GW and expected growth in wind turbine generator (WTG) deliveries, a 41% compound annual growth rate between FY25 and FY27. But Geojit also pointed to risks of execution and points of fatigue, as chartists indicated the stock in overbought ground. Between June alone, Suzlon shares fell 8%, after spectacular gains in previous months, and the shares lost 3.31% to trade at LMP of 58.07.
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In the midst of the downgrade by the brokerages, Suzlon also said Group CFO Himanshu Mody will be resigning, effective August 31, 2025. Mody, who joined the firm during a time of severe financial stress in August 2021, is being credited with driving Suzlon's turnaround, at the helm of a debt restructuring program, raising ₹3,000 crore, and driving the firm to a zero-debt, positive net worth position. His departure, which Suzlon reports is to pursue fresh professional endeavours, is at a crucial juncture. The firm has informed markets that it is near in selecting a new CFO.
In spite of these issues, Suzlon posted robust financial performance for Q1 FY26. The firm reported a 7.3% year-over-year increase in net profit to ₹324 crore and a 55% rise in revenue to ₹3,132 crore. EBITDA increased by 62% at a margin of 19.1% compared with 18.2% last year. Its all-time high Q1 deliveries of 444MW saw fresh orders of 1 GW added, taking the backlog to 5.7GW. Nevertheless, investor mood turned pessimistic, as a 4% decline in Suzlon stock to an intraday low of ₹60.32 testified following the announcement of Mody's resignation and the downgrade by Geojit.
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The confluence of an analyst downgrade, leadership uncertainty, and technical exhaustion has visibly impacted Suzlon Energy’s stock performance. While the fundamentals appear stable, backed by order inflows and improved margins, the management transition and cautious broker outlook may continue to weigh on the share price in the near term. Investors remain watchful as Suzlon navigates its next chapter amidst market volatility.
