SUZLON - SUZLON ENERGY LTD. Share Price

Suzlon Energy Limited's management expressed a highly optimistic outlook for Fiscal Year 2026 (FY '26) during the Q4 FY25 earnings conference call. Mr. JP Chalasani, Group CEO, highlighted a record-high order book exceeding 5.5 gigawatts, reflecting strong demand across various segments, including 1.5 gigawatts secured from NTPC's PSU tenders. The company aims for 60% growth across key operational parameters in FY '26 compared to FY '25, which includes metrics like deliveries, revenues, and EBITDA.

Financials for Q4 FY25 showed significant uptrends: consolidated revenues reached INR 3,774 crores, marking a 73% year-on-year increase, while EBITDA stood at INR 693 crores, up 95% year-on-year. The highest quarterly PAT achieved was INR 1,181 crores, influenced by a deferred tax asset recognition of INR 600 crores. For FY25 overall, revenue surpassed INR 10,000 crores, reaching INR 10,851 crores, with a strong PAT growth of 190% year-on-year.

Key focus areas include increasing manufacturing capacity, with 4.5 gigawatts operational, and establishing blade manufacturing plants in Madhya Pradesh and Rajasthan. Suzlon is also committed to clearing project land acquisition challenges and enhancing execution capabilities. Management emphasized an expected commissioning of over 2 gigawatts in FY26, alongside a sustained momentum in the O&M business.

Overall, management confidently conveyed their goal to maintain robust growth while ensuring project readiness and product quality in response to evolving market demands.

Q&A Section of Suzlon Energy Limited Q4 FY25 Earnings Conference Call (May 29, 2025)

Question 1:

Sumit Kishore: "Could you share your thoughts around order inflows for FY26? Would it be possible to match or surpass deliveries and contribution margin for WTG in FY26?"

Answer: "We see strong momentum in order inflows and are confident of increased traction in the coming quarters. Public sector orders now constitute about 26% of our order book, and I don't anticipate issues in this area for the next 18 to 24 months. Regarding margins, we expect to maintain a contribution margin of approximately 23% for the WTG business while achieving around 60% growth year-on-year across key delivery parameters."

Question 2:

Puneet Gulati: "Where are we in the next leg of development for higher MW turbines? Do you see a need for that?"

Answer: "We create the market rather than react to it. We operate 60 wind masts annually to gather future wind data. While S144 suits current market needs, we're designing future products to meet demand as required. A new model will be ready when market conditions, notably tariffs, dictate the need."

Question 3:

Mahesh Patil: "How much of the capacity for towers, blades, gearboxes, and generators is procured domestically?"

Answer: "Currently, our domestic procurement stands at about 80%. We believe we can fully comply with the new RLMM norms. India boasts ample capacity - 20 GW for OEMs and 29 GW for gearboxes - sufficient to prevent project delays. Demand increase will lead to reduced prices due to better utilization."

Question 4:

Deepak Gupta: "Did you say you expect a 60% growth across all parameters, including revenue and PAT?"

Answer: "Yes, we are confident of achieving a minimum 60% growth across key parameters such as deliveries, revenue, and EBITDA for FY26. Only the COD numbers will exceed this, as this year was low for us, suggesting a multi-fold increase in FY26."

Question 5:

Ashish Aggarwal: "Why has the contribution margin decreased despite an increase in EBITDA margins?"

Answer: "The increased share of the WTG division, which has a lower contribution margin of 23%, affects the consolidated margin. We're seeing high growth in volumes in this sector, which is causing the shift in overall margins."

Question 6:

Sumit Kishore: "Is SE Forge ready to cater to forgings for internal requirements? Will we see top-line growth in FY26?"

Answer: "Yes, SE Forge is equipped to supply our 3 MW turbines, and we're optimistic about growth in FY26. While FY25 didn't see significant changes, we've noticed a positive trend in Q4 and expect to maintain this momentum moving forward."