By Chaitanya | BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance

Suzlon Energy, a prominent player in India’s renewable energy sector, is making headlines with its robust operational performance and a strong outlook from market analysts. As of early August 2025, the company’s shares are trading around Rs 64-65, but Axis Securities has reiterated a ‘Buy’ rating, setting a target price of Rs 72 within the next three to six months. This target implies an encouraging upside of approximately 10% from the current market price, signalling confidence in the company’s growth trajectory.

A Windfall of Orders: Suzlon’s Record-Breaking Order Book

A key driver behind this optimistic forecast for Suzlon Energy is its record-breaking order book. As of May 2025, Suzlon boasts its highest-ever order book, standing at an impressive 5.5 gigawatts (GW). What’s particularly assuring for investors is that roughly 80% of these orders are backed by stable Public Sector Undertakings (PSUs) and Commercial & Industrial (C&I) clients. This robust backing provides clear revenue visibility for the next two to three years, ensuring a steady stream of income for the company.

The company’s execution capabilities have also seen significant improvement. In the financial year 2025 (FY25), Suzlon doubled its net volumes delivered to 1,550 megawatts (MW), marking a remarkable 118% increase year-on-year from 710 MW in FY24. With an existing manufacturing capacity of 4.5 GW, Suzlon is well-positioned to execute its current project pipeline efficiently over FY26 and FY27. This sustained delivery performance, as highlighted by Axis Securities on August 6, 2025, underscores the company’s operational strength.

Financial Performance Soars: A Look at FY25 Highlights

Suzlon Energy has showcased an impressive financial turnaround in FY25. The company’s consolidated net profit surged by a massive 213.7% to Rs 2,072 crore, a significant jump from Rs 660 crore in FY24. This substantial growth indicates improved efficiency and higher project execution. The financial year also saw net revenue rise sharply to Rs 10,851 crore, up from Rs 6,497 crore in FY24. This represents an approximate 70% Compound Annual Growth Rate (CAGR) in revenue from FY20 to FY25, demonstrating consistent expansion.

The fourth quarter of FY25 (Q4 FY25) was particularly strong, with net profit jumping an astonishing 365% year-on-year to Rs 1,181 crore. It’s worth noting that this figure includes a deferred tax gain of Rs 600 crore. Revenue for Q4 FY25 also saw a healthy 73% increase year-on-year, reaching Rs 3,774 crore from Rs 2,179 crore in Q4 FY24. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for FY25 stood at Rs 1,857 crore with a margin of 17.1%, an improvement from Rs 1,029 crore and a 15.8% margin in FY24. The Q4 FY25 EBITDA margin further improved to 18.4% from 16.4% in the previous year, reflecting enhanced operational profitability.

Looking ahead, Suzlon forecasts a robust revenue growth of 60% for FY26. Furthermore, the company anticipates its revenue to grow at approximately a 40% CAGR over FY25-FY27, aiming to reach Rs 21,275 crore.

Riding India’s Green Wave: Strategic Positioning and Market Trends

Suzlon’s strong performance aligns perfectly with India’s ambitious clean energy goals. India has already crossed 50 GW in installed wind power capacity, and the nation targets achieving 100 GW by 2030. As a leading contributor to this sector, Suzlon is strategically positioned to benefit significantly from this national push towards renewable energy.

While the overall trend for Suzlon Energy stock has been positive, with a 21.44% increase in the last three months, it did experience a slight dip of 2.6% on July 25, 2025, and a minor 1.15% decline on August 6, 2025, trading around Rs 64.7. However, independent stock analysis as of July 25, 2025, suggests the stock could rise approximately 14% over the next three months, indicating continued short-term optimism. The company’s current market capitalization stands at Rs 89,399.09 crore. Its 52-week highest share price was Rs 86.04, and the 52-week low was Rs 46.15. The Price-to-Earnings (P/E) ratio is 43.27, and the Price-to-Book (P/B) ratio is 14.64, reflecting investor interest and market valuation.

Axis Securities, in its recent reiteration of the ‘Buy’ rating, emphasised the government’s sustained focus on renewables as a key factor supporting Suzlon’s growth prospects. The company’s strategic focus continues to be on scaling its operations and effectively leveraging India’s ongoing clean energy transition efforts.

Conclusion: A Bright Horizon for Suzlon Energy Stock

With a substantial order book, impressive financial performance in FY25, and a clear strategic alignment with India’s renewable energy goals, Suzlon Energy appears to be on a firm growth path. The reiteration of a Rs 72 target price by Axis Securities underscores the confidence among financial experts in the company’s ability to deliver consistent growth and value to its shareholders. For investors looking at the renewable energy space, the Suzlon Energy stock presents an interesting proposition, poised to benefit from both its operational strengths and the overarching shift towards a greener future.

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