Suzlon Energy Reports Q2 PAT at 394 Crore

Revenue for Q2 FY27 reached 4,869 crore, while the order book stands at 6 GW.

Reader Takeaway: Strong order intake and net cash position anchor the company, though margin volatility requires cautious monitoring.

What just happened

Suzlon Energy released its Q2 FY27 financial results, posting a profit after tax (PAT) of 394 crore. Revenue rose 27% quarter-on-quarter to 4,869 crore. The company also reported a net cash position of 2,048 crore and a consolidated net worth exceeding 10,000 crore. Deliveries for the quarter reached 710 MW, contributing to a total of 1,217 MW for the first half of the fiscal year.

Why this matters

The company’s order book of 6 GW provides 18 months of revenue visibility. The DevCo business model is gaining traction, accounting for 900 MW of new orders in H1. With manufacturing capacity now at 4.5 GW and fully operational, Suzlon is positioning itself to capture a larger share of India's wind energy transition.

The backstory

Suzlon has been working to de-leverage its balance sheet and pivot toward its 'Suzlon 2.0' strategy. Recent investments include the acquisition of Renom, which is already contributing to the bottom line. The company's long-term goal is to achieve a 40% market share and a 15 GW order book by FY31.

Risks to watch

Investors should monitor margin pressures. WTG contribution margins declined from 26.9% to 21.2% in the current quarter. Management cited segment mix and external risks, including commodity and foreign exchange volatility linked to geopolitical tensions, as ongoing challenges that may affect profitability in the near term.

What to track next

Watch for the normalization of EBITDA margins, which management targets at 15% plus a 1% upside for FY27. Further progress on the DevCo model and the integration of Renom will be critical for maintaining the current 25% CAGR growth trajectory.