Suzlon Energy’s share price has been under pressure for three days in a row. On Thursday (August 28), the stock dropped another 2% to ₹55.89 — its lowest level in the past three months. So far in August, Suzlon’s shares have fallen 8%, and the company is heading towards its third straight monthly loss. The last time this happened was in August 2023.
Why is the stock falling?
- Suzlon’s April–June quarter results were weaker than expected.
- The company is facing delays in project execution.
- Group CFO Himanshu Mody, who played a key role in improving Suzlon’s finances, is leaving.
Analysts say Mody’s exit could hurt investor confidence in the short term. They also raised concerns about the company’s project installations, which have been slower than deliveries, and a weak order inflow of just 1 GW so far in FY26.
What is Suzlon doing about this?
To fix delays, Suzlon is focusing on projects where land is already ready. It is also acquiring more land in advance to speed up project execution. The company expects this strategy to show results starting FY27.
Future outlook remains positive
Despite the current problems, analysts believe Suzlon’s long-term prospects are strong:
- The company has an order book of 5.7 GW, growing consistently for 10 quarters.
- Demand from Commercial & Industrial (C&I) and PSU customers is supporting growth.
- Suzlon has guided for 60% growth in deliveries, revenue, and EBITDA in FY26.
- India is expected to add 6 GW of wind energy capacity in FY26 and 7–8 GW in FY27, which will benefit Suzlon.
Stock performance
The stock has fallen 20% in the last three months and is down 34% from its 1-year high of ₹86 in August 2024.
What analysts are saying
- Geojit Financial Services upgraded Suzlon to Buy but cut its target price to ₹75, citing execution delays. They expect Suzlon’s earnings to grow at 43% annually, with ROE improving to 27.1% by FY27.
- ICICI Securities also kept its Buy rating with a target price of ₹76, saying Suzlon’s order pipeline will remain strong over the next 2–3 years.
