Suzlon Energy Stock: Motilal Oswal Sees 54% Upside in 2026

Introduction

Brokerage firm Motilal Oswal has reiterated its confidence in Suzlon Energy Ltd., maintaining a 'buy' recommendation despite recent pressure on the stock. In a note released on Tuesday, January 20, 2026, the firm set a price target of ₹74 per share. This target suggests a potential upside of 54% from the stock's closing price of ₹47.94 on Monday. The bullish outlook comes at a time when the stock has corrected 37% from its 52-week high, leading the brokerage to believe that current market concerns are fully priced in, presenting a favorable risk-reward opportunity for investors.

Why Motilal Oswal Remains Bullish

Motilal Oswal's positive stance is built on the assessment that several headwinds affecting the wind energy sector have already been absorbed by Suzlon's current valuation. The firm's analysis points to a confluence of factors that are expected to drive significant growth for the company. A key element of this thesis is the anticipated surge in demand for wind energy, which is projected to outpace the market's current expectations. The brokerage believes that Suzlon's strategic initiatives and strong market position will enable it to capitalize on these emerging opportunities, justifying a higher valuation. The report underscores that the current market price does not fully reflect the company's long-term earnings potential, making it an attractive entry point.

Market Concerns Addressed

In recent months, Suzlon Energy's stock has been weighed down by a few specific investor concerns. These include the potential cannibalization of wind's market share in tenders by the solar segment, a slower-than-expected pace of new wind power installations across the country, and an increase in competitive intensity within the wind turbine manufacturing space. However, Motilal Oswal's report suggests that these fears are largely overblown or have already impacted the stock price. For instance, out of 40 GW of projects with pending Power Purchase Agreements (PPAs), industry checks indicate that only a negligible portion is allocated to wind, with nearly 17 GW being pure solar. This suggests that the direct competition in recent tenders may be less severe than perceived.

New Demand Horizons and Export Potential

A significant part of the bullish forecast rests on new sources of power demand. Motilal Oswal identifies data centers, commercial and industrial (C&I) consumers, and public sector undertakings (PSUs) as key drivers that could create an incremental wind demand of 20-24 GW by 2030. This is in addition to India's national target of achieving 100 GW of wind capacity by the same year. Furthermore, Suzlon's management sees exports as a major emerging growth driver. The company anticipates receiving its first export orders in early fiscal year 2027, with supplies scheduled to begin in fiscal year 2028, opening up new revenue streams and diversifying its market base.

Competitive Edge in a Growing Market

Suzlon Energy's strategic focus on scaling up its Engineering, Procurement, and Construction (EPC) business is seen as a significant competitive advantage. The company aims for its EPC segment to constitute 50% of its order book. This integrated approach allows it to manage projects from conception to completion, offering a comprehensive solution to clients. According to Motilal Oswal, Suzlon's superior execution track record compared to its domestic peers, combined with the limited participation of Chinese Original Equipment Manufacturers (OEMs) in the Indian EPC space, positions it favorably to secure large and complex projects. This strategic depth is expected to help the company maintain its market leadership.

Company Leadership Sets Ambitious Targets

The company's leadership shares this optimistic outlook. Speaking at the World Economic Forum in Davos, Suzlon Group's Executive Vice Chairman, Girish Tanti, stated that the company expects to surpass the 10-gigawatt installation mark within the next two years. Looking further ahead, Tanti projected that Suzlon's capacity could expand to between 13 and 15 gigawatts by 2030. This growth will be supported by an annual manufacturing capacity of nearly 20 gigawatts and rising demand from export markets. These ambitious targets signal strong confidence from the management in the company's operational capabilities and the sector's long-term growth trajectory.

A Look at the Numbers: Stock Performance and Key Metrics

While the future outlook is positive, the stock's recent performance has been subdued. On Monday, shares of Suzlon Energy closed 1% lower at ₹47.94. The stock has declined by 16.12% over the past year. However, its long-term performance tells a different story, with impressive returns of 394.09% over three years and 601.18% over five years, rewarding patient investors. The company's market capitalization stands at ₹65,325.54 crore.

Unanimous 'Buy' Call from Analysts

Motilal Oswal is not alone in its positive assessment. Suzlon Energy is a 'consensus buy' among all nine analysts who cover the stock. This unanimous positive rating reflects a broad agreement within the financial community about the company's strong prospects. Other brokerage firms have also issued bullish reports. For example, JM Financial has a target price of ₹81, while ICICI Securities has set a target of ₹76, both indicating significant upside potential from current levels.

Conclusion

Despite a period of underperformance, the outlook for Suzlon Energy appears to be turning positive. The analysis from Motilal Oswal and a consensus of other market experts suggest that the company is well-positioned to benefit from structural growth in India's renewable energy sector. With concerns already priced in and multiple growth drivers on the horizon, including new demand from data centers and a promising export strategy, the stock's risk-reward profile is seen as highly favorable. Investors will be closely watching whether the company can execute on its ambitious plans and capitalize on the expanding opportunities in the wind energy market.