Suzlon Energy Rides Green Wave to Record Q2 FY26 Performance

Suzlon Energy Limited, a leading player in India's renewable energy sector, has announced a stellar performance for the second quarter of Fiscal Year 2026 (Q2 FY26), marking a significant milestone in its operational history. The company reported its highest-ever Q2 India deliveries of 565 megawatts (MW), contributing to a consolidated revenue of INR3,866 crore. This represents a remarkable 85% year-on-year (YoY) growth, underscoring the robust demand for wind energy solutions in India. The financial highlights also include a substantial surge in EBITDA, which grew by 145% YoY to INR721 crore, with the EBITDA margin improving to 18.6% from 14.1% in the same quarter last year. Profit Before Tax (PBT) increased by 179% YoY to INR562 crore, and Net Profit (PAT) outperformed expectations at INR1,279 crore, partly due to the recognition of deferred tax assets.

The strong Q2 performance is a testament to Suzlon's strategic execution and the favorable industry landscape. The company's order book has swelled to over 6.2 gigawatts (GW), providing clear revenue visibility and reaffirming its market leadership. This order book is predominantly driven by the S144 product, which accounts for 90% of the orders, demonstrating its suitability and acceptance in the Indian market. The S144 is designed specifically for domestic terrain and wind conditions, offering a low carbon footprint solution. Suzlon's comprehensive end-to-end service capabilities, coupled with a vast installed base of over 15.4 GW and an experienced workforce of 8,300+, further solidify its competitive edge.

Financial Performance Snapshot (Consolidated, INR Crore)

Strategic Initiatives and Market Outlook

Suzlon is actively capitalizing on India's ambitious energy transition goals. The country has achieved a cumulative installed power capacity of over 500 GW, with 50% from non-fossil fuels, signaling a clear shift towards renewables. The recent reduction in GST on wind turbines from 12% to 5% is expected to significantly lower capital expenditure and the levelized cost of energy, making renewable power more accessible. Management projects total wind installations in India to reach approximately 6 GW by FY26 and 8 GW by FY27, indicating a robust growth trajectory for the sector.

To further strengthen its position, Suzlon is strategically increasing its share in Engineering, Procurement, and Construction (EPC) contracts. The company aims to achieve a 50:50 ratio between EPC and non-EPC projects by FY28, up from the current 20:80. This move is expected to provide greater control over project execution, mitigate delays, and enhance overall margins. Suzlon has already identified over 23 GW of renewable potential sites, with 7+ GW of land development underway, laying a strong foundation for sustained long-term growth and rapid deployment readiness.

On the manufacturing front, Suzlon's domestic capacity of 4,500 MW is fully operational and scaled up to meet the growing order book. The company's integrated manufacturing capabilities, spanning nacelle, hub, blade, and other critical components, ensure a robust and scalable supply chain. The SE Forge division, in particular, has shown exceptional growth, with a 243% jump in EBITDA in H1 FY26, driven by cost control initiatives and internalizing machining processes, which are expected to sustain future margins.

Financial Health and Future Prospects

Suzlon's financial health has significantly improved, with a net cash position of INR1,480 crore as of September 2025, providing strong financial flexibility. The recognition of an incremental net deferred tax asset of INR718 crore in Q2 FY26, bringing the total DTA to INR1,229 crore, offers a substantial tax shield on future profits. While the company acknowledges a temporary increase in debtor days due to specific public sector contracts, management views this as a manageable situation that will normalize.

Looking ahead, Suzlon is committed to achieving its FY26 guidance of 60% YoY growth across all key performance parameters. The company is also exploring international markets, with an Indian export contract anticipated in early FY27 and supplies commencing in FY28. This expansion into global markets, coupled with the domestic growth drivers and strategic initiatives, positions Suzlon for continued success. The management's proactive approach to land development, manufacturing capacity, and cost optimization reflects a disciplined strategy to leverage India's green energy boom and deliver sustained value to stakeholders.

Management's Vision for Growth

Suzlon's leadership demonstrates a clear vision for navigating the evolving energy landscape. They emphasize the complementary nature of wind and solar power, especially with battery energy storage systems (BESS), to achieve the lowest cost of energy and meet the country's load profile. While acknowledging the import dependence for BESS components, the company is focused on fostering domestic manufacturing to ensure long-term energy security and cost efficiency. The strategic reclassification of reserves, as approved by the NCLT, aims to reflect the company's true financial health by offsetting past accumulated losses, further strengthening its balance sheet for future growth and potential dividend distributions.