Shares of Suzlon Energy hit their upper circuit of five percent in trade on January 29 after reporting a 91 percent jump in net profit in its net profit for the quarter ended December 31, 2024 (Q3) for the current financial year (FY25).
At 9.15 am, Suzlon Energy shares were quoting Rs 52.77, higher by five percent on the NSE.
Suzlon Energy reported a consolidated net profit of Rs 387 crore for the quarter with ended on December 31. This marks an impressive increase of around 91 percent from the Rs 203 crore net profit reported in the same quarter of the previous financial year.
The company's revenue from operations also saw a strong rise. It reported a revenue of Rs 2,969 crore in Q3, up over 91 percent from the Rs 1,553 crore revenue reported in the year-ago period.
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Suzlon Energy reported record quarterly deliveries of 447 MW in the quarter under review. The company's wind turbine generator segment saw a strong improvement.
The execution uptick is aided by capacity ramp up to 4.5GW. However, overall installations continue to drag (241MW in 9MFY25 versus 618MW in 9MFY24), noted Nuvama Institutional Equities.
Robust order inflow at ~800GW led to an all-time high order book of 5.5GW (execution over ~24 months), lending revenue visibility. "We expect Suzlon Energy to remain a key beneficiary of the rising mix of FDRE/RTC/Hybrid in GoI tenders. All in all, we are upgrading Suzlon Enegry to ‘buy’ (from ‘hold’) on valuation comfort and recent price correction," said Nuvama. The brokerage has a target price of Rs 60 for shares of the wind energy player.
Global broking firm Morgan Stanley reiterated its 'overweight' tag, with a price target of Rs 71 per share, as the company expects wind industry constraints around land acquisition to improve from FY26. Further, Suzlon is planning capex of Rs 350-400 crore for new blade manufacturing lines in MP and Rajasthan.
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