Suzlon Energy, India’s leading wind energy company, delivered an outstanding Q4 FY25 (January-March 2025), with its stock rallying 13% after exceptional financial results.
The company reported a 365% surge in net profit, a robust wind turbine order book, and significant debt reduction, making it a top choice for Indian investors aged 25-60 seeking long-term investments in renewable energy.
With India’s wind power market poised for growth, Suzlon’s strong fundamentals, green energy focus, and analyst-backed outlook position it as a compelling pick for stock market investors. This article explores the financials, key developments, and why Suzlon is a must-watch for sustainable wealth creation.
Key Financial Highlights
Suzlon’s Q4 FY25 results highlight its strongest performance in a decade, driven by wind energy solutions and operational efficiency:
- Net Profit: ₹1,182 crore, up 365% year-on-year (YoY) from ₹254 crore, boosted by a ₹600 crore deferred tax gain.
- Revenue: ₹3,813 crore, a 73.2% YoY increase from ₹2,183 crore, fueled by wind turbine generator (WTG) deliveries.
- EBITDA: ₹677 crore, up 94% YoY from ₹357 crore, with margins improving to 17.94% from 16.4%.
- Profit Before Tax (PBT): ₹1,447 crore, a 103% YoY rise, marking a 10-year high in profitability.
- Order Book: 5,555 MW, including a 1,500 MW order from NTPC, ensuring strong revenue visibility.
- Annual Performance: FY25 EBITDA rose 81% to ₹1,857 crore, with WTG contribution margins exceeding 23%.
Stock Performance and Valuation
- Stock Price: ₹65.70 as of May 30, 2025 (NSE), reflecting a 13% rally post-results.
- Market Cap: Approximately ₹90,000 crore, underscoring its leadership in India’s renewable energy sector.
- P/E Ratio: 35x FY27 estimated earnings, slightly above historical averages but justified by wind energy growth prospects.
- FII Investment: Foreign institutional investors purchased 2.19 crore shares in Q4 FY25, signaling strong confidence in Suzlon’s stock market performance.
- Brokerage Outlook: Motilal Oswal raised its target price to ₹83, maintaining a ‘buy’ rating for renewable energy investors. JM Financial set a ₹71 target, projecting over 50% growth in profit, EBITDA, and revenue.
Recent Developments
- Strong Execution: Suzlon installed 336 MW of wind turbines in FY25 and has 371 MW ready for commissioning, exceeding delivery expectations by 15% and boosting margins.
- Robust Order Book: A 5,555 MW order pipeline, including a 1,500 MW NTPC contract, ensures revenue visibility through FY27 for green energy projects.
- Debt Reduction: Suzlon’s net cash balance sheet and reduced debt (from ₹17,053 crore in 2014 to ₹1,938 crore in 2023) reflect financial discipline, enhancing investor confidence.
- Brokerage Optimism: Motilal Oswal projects a 51% PAT CAGR over FY25-27, driven by execution scaling to 2.5 GW in FY26 and 3.4 GW in FY27. Nuvama expects 475 MW execution in Q4 FY25 alone, reinforcing Suzlon’s wind power leadership.
- Sector Growth: India’s wind energy installations are set to reach 6 GW in FY26 and 7-9 GW annually through 2028, aligning with Suzlon’s renewable energy strategy (Times of India).
Why Invest in Suzlon Energy?
Suzlon Energy stands out as a top long-term investment due to:
- Market Leadership: Commands a 30% share in India’s wind energy market, a key player in sustainable energy solutions.
- Financial Turnaround: A 365% profit surge and 10-year high PBT showcase operational excellence in wind power.
- Growth Catalysts: A 5,555 MW order book and India’s renewable energy push ensure strong revenue growth for stock market investors.
- Net Cash Position: Low debt and zero equity dilution provide financial stability, ideal for long-term wealth creation.
- Analyst Backing: Motilal Oswal and JM Financial’s ‘buy’ ratings highlight a potential 26% upside to ₹83, driven by green energy demand.
Risks to Consider
- Execution Risks: Delays in wind turbine commissioning could hinder revenue targets in the renewable energy sector.
- Policy Shifts: Changes in local content regulations or government incentives for wind power may impact growth.
- Market Volatility: The stock dropped 2.28% to ₹64.81 before results due to profit-taking, indicating short-term fluctuations (Moneycontrol Hindi).
- Valuation Concerns: A forward P/E of 35x requires consistent execution to justify for stock market investors.
Investors should track quarterly results and consult financial advisors to align investments with their risk profile in the renewable energy market.
Sectoral Context
India’s renewable energy sector is thriving, with wind energy installations projected to hit 6 GW in FY26 and 7–9 GW annually through 2028, driven by government policies like ‘Make in India’ and net-zero commitments. Suzlon’s leadership in wind power and execution capabilities position it to capitalize on this green energy boom, making it a resilient choice for long-term stock market portfolios.
Conclusion
Suzlon Energy’s Q4 FY25 results, with a 365% profit surge and a 5,555 MW order book, underscore its dominance in India’s wind energy sector. With a net cash balance sheet, declining debt, and strong analyst support, Suzlon is a top pick for Indian investors seeking long-term growth in renewable energy. Stay vigilant about execution and policy risks, but consider adding Suzlon to your stock market portfolio for sustainable wealth creation.
Roshan Sharma – Founder of StocksForBeginners.in
I’m Roshan Sharma, a stock market trader with 5+ years of experience. At StocksForBeginners.in, I provide expert fundamental analysis of Indian companies to help long-term investors make informed decisions. My mission is to simplify investing for beginners and share insights from my experience to guide others toward financial growth.