Buy Suzlon Energy; target of Rs 74: Motilal Oswal

Motilal Oswal's research report on Suzlon Energy

Management reaffirmed India’s installed wind potential of 100 GW by 2030, emphasizing that a higher share of wind is essential for achieving the lowestcost energy mix. SUEL currently operates with an annual manufacturing capacity of 4.5 GW, supported by a workforce of 7,579 employees. To support this growth trajectory, the company plans to add incremental capacity from FY26 onward through three new smart-blade factories. Two of these facilities will be located in Gujarat and Karnataka, while the third site is expected to be finalized in the next 2-3 months. The new facilities aim to reduce turnaround time, enhance proximity to customers and wind sites, and improve logistics and transportation efficiency.

Outlook

Management remains confident that India can reach 10 GW of annual wind installations by FY28 (vs. 6.5-7 GW run-rate in FY26). Growing demand from AI/data centers and rising C&I load represent an upside potential to India’s 100 GW wind target by 2030. The company plans to expand capacity through three new smartblade factories—two in Gujarat and Karnataka, and a third location to be finalized in 2 to 3 months—to shorten turnaround time, improve customer and site proximity, and enhance logistics and transportation efficiency. We reiterate our BUY rating with a TP of INR 74/share.