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Suzlon Energy Share Price Falls After Q2 Results; Profit Rises 1.3%, Margins Disappoint

Posted on 30th Oct 2026 11:56 am by rohit kumar

Shares of Suzlon Energy came under selling pressure on Friday, declining nearly 4% after the renewable energy company announced its Q2 FY27 results for the July-September quarter. Despite registering strong revenue growth and record wind turbine deliveries, the company's weak EBITDA performance, shrinking profit margins and cash-flow concerns disappointed investors.

 

The stock also remained in focus after several leading brokerage firms reduced their target prices following the quarterly earnings announcement. Meanwhile, the September-quarter shareholding pattern showed that both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) reduced their stakes in the company.

 

The combination of margin pressure, institutional stake reduction and cautious brokerage commentary has raised questions about Suzlon Energy's near-term outlook.

 

Suzlon Energy Q2 Results: Net Profit Falls 69% YoY

 

Suzlon Energy reported a consolidated net profit of ₹394 crore for Q2 FY27, compared with ₹1,279 crore in the corresponding quarter of the previous financial year, representing a decline of approximately 69%.

 

However, the sharp fall in reported profit requires some context. The year-ago quarter included a one-time deferred tax benefit of ₹891 crore. Excluding this exceptional benefit, Suzlon's comparable net profit increased approximately 1.3% from ₹389 crore in Q2 FY26.

 

The company's revenue from operations increased 26% year-on-year to ₹4,869 crore, compared with ₹3,866 crore in the corresponding quarter last year. Higher wind turbine deliveries and improved execution supported the revenue growth.

 

Suzlon delivered a record 710 MW of wind turbines during the September quarter, highlighting strong demand and execution momentum.

 

EBITDA Margins Decline Despite Strong Revenue Growth

 

Although Suzlon Energy reported healthy revenue growth, its operating performance remained under pressure.

 

The company's EBITDA stood at approximately ₹720 crore, almost unchanged from ₹721 crore in the year-ago quarter. Consequently, the EBITDA margin contracted to 14.8% from 18.6% in Q2 FY26.

 

The decline in operating margins has become a key concern for investors and market analysts. Higher project execution costs, commodity-price fluctuations, foreign exchange movements and changes in the project mix have contributed to profitability pressure.

 

The company's ability to improve margins while maintaining its strong delivery momentum will remain an important factor in determining its future financial performance.

 

FIIs and DIIs Reduce Their Stakes in Suzlon Energy

 

The September-quarter shareholding pattern has also attracted investor attention, as both foreign and domestic institutional investors reduced their holdings in Suzlon Energy.

 

According to the reported shareholding figures, FII ownership declined from 24.15% in the June quarter to 23.63% in the September quarter.

 

Similarly, DII shareholding decreased from 11.12% to 10.24% during the same period.

 

In contrast, public shareholding increased from 53.02% to 54.44%.

 

The reduction in institutional holdings may add to investor concerns, particularly when considered alongside the company's margin pressure and cautious brokerage outlook. However, changes in shareholding alone do not establish the reasons behind institutional investment decisions.

 

Nuvama Maintains Hold Rating, Cuts Suzlon Target Price to ₹41

 

Following the Q2 FY27 earnings announcement, Nuvama Institutional Equities maintained its 'Hold' recommendation on Suzlon Energy but reduced its target price from ₹51 to ₹41 per share.

 

The brokerage also lowered its earnings per share (EPS) estimates for FY27 and FY28 by 9% and 7%, respectively.

 

The revision reflects concerns about the company's weaker-than-expected EBITDA margins and profitability. Although Suzlon delivered strong volumes, its operating performance did not fully meet market expectations.

 

Axis Capital, UBS and Investec Also Reduce Target Prices

 

Several other brokerage firms have also revised their valuation expectations for Suzlon Energy following the quarterly results.

 

Axis Capital: Reduced its target price from ₹63 to ₹42.

 

UBS: Cut its target price from ₹66 to ₹58.

 

Investec: Lowered its target price from ₹67 to ₹56.

 

Nuvama: Maintained a Hold rating but reduced its target price from ₹51 to ₹41.

 

These revisions indicate that brokerages are paying closer attention to the company's margin performance and cash-flow position despite its strong revenue growth and execution capabilities.

 

Importantly, target prices represent brokerage estimates, not guaranteed future share prices or investment returns.

 

What Is the Outlook for Suzlon Energy Shares?

Suzlon Energy continues to benefit from opportunities in India's renewable energy sector, supported by demand for wind power, a strong project pipeline and higher turbine deliveries.

 

However, the latest quarterly performance highlights a key challenge: converting revenue growth into sustainable operating profitability and stronger cash generation.

 

Investors will closely monitor the company's EBITDA margins, working-capital requirements, cash flows, order execution and institutional shareholding in the coming quarters.

 

For now, Suzlon Energy shares remain in focus as the market evaluates whether the company can improve profitability while sustaining its business growth.

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