Suzlon Energy shares have faced selling pressure in recent months, but Motilal Oswal remains optimistic about the wind energy company’s growth prospects, citing its strong order book, rising delivery expectations and India’s renewable energy expansion. The brokerage has maintained a Buy rating with a ₹65 target price. Recent market reports indicate an upside potential of around 67% to 73%, depending on the reference share price. However, achieving this target will depend on execution, profitability and market conditions.
Introduction
The Suzlon Energy share price has attracted attention as investors weigh recent stock market losses against the company’s long-term growth potential. Despite the decline, the brokerage sees scope for earnings improvement as wind turbine deliveries increase and demand for renewable energy grows.
For investors, the key question is whether Suzlon can convert its substantial order book into revenue and profits while managing operating costs. Here are five factors supporting Motilal Oswal’s positive outlook, along with the risks investors should consider.
Suzlon Energy Share Price: 5 Reasons Behind Motilal Oswal’s Bullish View
1. Strong Order Book Provides Revenue Visibility
Suzlon Energy reported an order book of approximately 5.9 GW at the end of the first quarter of FY27. A large order book gives the company visibility into potential future deliveries and helps it plan manufacturing, installation and project execution.
This matters because wind turbine manufacturing involves complex production schedules, component availability and site preparation. A substantial pipeline of confirmed orders can support business planning over several quarters.
However, an order book is not the same as recognised revenue. Suzlon must manufacture and deliver equipment, complete contractual milestones and manage project execution to translate orders into financial performance.
2. Higher Wind Turbine Deliveries Could Support Earnings Growth
Motilal Oswal expects Suzlon’s deliveries to increase to approximately 3.3 GW in FY27 and 3.8 GW in FY28. Higher volumes could improve revenue generation and help the company spread fixed costs across a larger production base.
The brokerage also expects EBITDA, or earnings before interest, taxes, depreciation and amortisation, to grow at a compound annual growth rate of around 22% between FY26 and FY28.
These projections depend on the company meeting its delivery targets and maintaining operating margins. Delays in installation, supply chain constraints or higher expenses could affect the expected earnings improvement.
3. India’s Growing Demand for Wind Energy
India’s rising electricity requirements and renewable energy targets provide an important long-term growth driver for Suzlon. Wind power can complement solar generation because wind availability may differ by location and time of day.
Power demand during evening hours is particularly relevant when solar generation declines. Wind energy, supported by suitable locations and transmission infrastructure, can contribute to a more diversified electricity supply.
Government policies supporting renewable energy installations and the development of domestic manufacturing capacity could also benefit the industry. Nevertheless, project approvals, land availability, transmission capacity and timely payments remain important factors influencing the pace of new installations.
4. Repowering, Exports and New Business Models
Suzlon has several potential growth avenues beyond supplying wind turbines for new projects.
One is wind farm repowering, which involves replacing older, less efficient turbines with modern equipment. Repowering can improve electricity generation from existing sites, although approvals, land arrangements and project economics determine whether individual projects proceed.
Exports provide another potential growth avenue by allowing the company to serve customers outside India. Actual export growth will depend on international demand, competition, pricing and the company’s ability to meet local requirements.
Suzlon is also developing its renewable energy development business, known as DevCo. The company secured approximately 600 MW of new orders through this business early in FY27, according to recent reports. This model could expand its role beyond equipment manufacturing, although project development also brings execution and financing requirements.
5. Valuation Has Become More Attractive After the Correction
Suzlon shares have corrected sharply in recent months, bringing the stock’s valuation closer to levels that Motilal Oswal considers attractive relative to its earnings outlook.
The brokerage’s analysis indicated that the stock was trading at around 17.5 times estimated FY28 earnings, below its cited one-year forward average valuation measure of approximately 22 times.
A lower valuation can improve the potential risk-reward balance if earnings estimates are achieved. However, a share price decline does not automatically mean that a stock is undervalued. If profits disappoint or market expectations weaken, valuations can fall further.
Why Has the Suzlon Energy Share Price Fallen Despite Growth Prospects?
Recent losses reflect investor concerns that go beyond the company’s long-term demand outlook. Suzlon’s first-quarter FY27 financial performance came in below some brokerage estimates, with EBITDA margins under pressure.
Higher operating expenses, weaker-than-expected delivery volumes and fluctuations in contribution margins can affect profitability even when revenue grows. Investors may also be reassessing the valuation they are willing to pay for renewable energy stocks amid broader market volatility.
This explains why a brokerage can maintain a positive long-term outlook while the stock experiences short-term weakness. Analysts generally assess expected future earnings, whereas market prices also respond to quarterly results, sentiment and changing risk appetite.
What Should Investors Watch Next?
Investors tracking Suzlon Energy should focus on a few measurable indicators:
- Order execution: Whether the company converts its 5.9 GW order book into timely deliveries.
- Profit margins: Whether operating profitability improves as production volumes increase.
- Cash flow: Whether revenue growth translates into stronger cash generation.
- Renewable energy installations: Whether new wind projects progress from announcements to actual execution.
- Valuation: Whether the market price remains reasonable relative to realised earnings and future expectations.
The ₹65 target price is a brokerage estimate, not a guaranteed future share price. Actual performance may differ significantly from analyst projections.
Conclusion
Motilal Oswal’s positive outlook on Suzlon Energy rests on five main factors: a substantial order book, expected delivery growth, rising demand for wind power, additional business opportunities and a lower valuation following the recent correction.
These factors provide a basis for the brokerage’s optimism, but the company still needs to demonstrate consistent execution and margin improvement. Investors should evaluate financial results, cash flow and valuation alongside the renewable energy growth story rather than relying solely on the projected upside.
Frequently Asked Questions
1. Why does Motilal Oswal see upside in Suzlon Energy shares?
Motilal Oswal expects Suzlon to benefit from its 5.9 GW order book, higher wind turbine deliveries, growing Indian wind energy demand and potential growth in repowering and exports. The brokerage also considers the valuation more attractive after the recent share price correction.
2. What is Motilal Oswal’s target price for Suzlon Energy?
Motilal Oswal has maintained a Buy rating with a target price of ₹65. The implied upside varies with the prevailing share price. A target price is an analyst estimate based on financial assumptions and is not a guarantee that the stock will reach that level.
3. Why has the Suzlon Energy share price fallen recently?
Recent weakness has reflected concerns about quarterly performance, pressure on operating margins, delivery execution and broader market sentiment. Although long-term renewable energy demand may support growth, investors also assess near-term earnings, costs and the valuation already reflected in a stock’s price.
4. What is Suzlon Energy’s order book?
Suzlon Energy’s order book stood at approximately 5.9 GW at the end of Q1 FY27. It represents the pipeline of orders awaiting execution and provides an indication of potential future business. The company must still manufacture, deliver and execute these orders to recognise revenue.
5. What are Suzlon Energy’s expected deliveries for FY27 and FY28?
Motilal Oswal expects Suzlon’s deliveries to reach approximately 3.3 GW in FY27 and 3.8 GW in FY28. These projections depend on manufacturing capacity, supply chain availability, project readiness and timely execution. Actual deliveries may differ from the brokerage’s estimates.
6. How could India’s renewable energy expansion benefit Suzlon?
India’s increasing electricity demand and renewable energy targets could support demand for wind turbines and related services. Wind power can complement solar generation in a diversified electricity system. However, the pace of installations depends on project approvals, transmission infrastructure, financing and execution.
7. What is Suzlon’s DevCo business?
DevCo refers to Suzlon’s renewable energy development business, which seeks to expand the company’s role in developing wind and renewable energy projects. It could create additional business avenues beyond turbine manufacturing, but project development involves capital requirements, approvals, execution risks and potential delays.
8. Is Suzlon Energy a risky stock?
Suzlon Energy carries equity market risk, along with company-specific risks involving order execution, operating margins, project delays and valuation. Renewable energy demand does not eliminate these uncertainties. Investors should consider their financial goals, risk tolerance and portfolio diversification before making an investment decision.
9. Does a lower valuation mean Suzlon shares are undervalued?
Not necessarily. A lower price-to-earnings multiple can make a stock appear more attractive relative to its historical valuation, but it must be assessed against expected earnings and business risks. If profits fall short of estimates, the stock may remain under pressure despite a lower valuation.
10. What should investors monitor before evaluating Suzlon Energy’s outlook?
Investors should review quarterly revenue, EBITDA margins, cash flow, turbine deliveries, order book execution and new project awards. They should also compare the current share price with realistic earnings expectations. Brokerage targets can provide context, but independent assessment of risks and valuation remains important.
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Parvati Rai is the Vice President of the Research team at Equentis. She has over 15 years of equity-research and strategy-consulting experience. A specialist in deep-dive valuations, financial modelling, and forecasting, she has built research desks from the ground up, by steering buy-side, sell-side, and independent coverage across sectors. When she isn’t fine-tuning models, Parvati unwinds on nature treks and mentors aspiring analysts.
