Suzlon Energy Ltd. witnessed a reversal in its five-day upward trend on Thursday, May 29, with the stock giving up early gains and trading 0.9% lower at ₹65.79, ahead of its much-awaited March quarter results. This decline came after the stock had surged over 8% across the last four trading sessions, backed by investor optimism around strong operational metrics and large order wins.

Q3 FY25 Performance Set a Strong Precedent

In the December quarter of FY25, Suzlon had reported robust numbers that set high expectations for the March quarter:

• Revenue surged by 91% year-on-year to ₹2,968 crore, reflecting increased order execution and higher volumes.

• EBITDA doubled from the year-ago period, backed by better operating efficiency.

• EBITDA margins expanded by 90 basis points, showing improved cost control and profitability.

• Volumes at the end of Q3 FY25 stood at 447 MW, a significant leap from 170 MW in the same quarter last year and 256 MW in the September quarter.

This performance also helped Suzlon clock a 9-month delivery volume of 977 MW, positioning it as a major player in India’s wind energy revival.

High Expectations from Q4 FY25

The market has been pricing in positive expectations from Q4 FY25, especially as momentum continues in the renewable energy sector. Suzlon’s past financial momentum and strategic partnerships have kept sentiment buoyant.

Investors are particularly watching for:

• Continued growth in topline and operating margins

• Update on wind turbine installations and execution progress

• Guidance for FY26 and updates on international markets (if any)

Mega Order from NTPC Green Energy Boosts Sentiment

In April, Suzlon made headlines by extending its partnership with NTPC Green Energy, securing a 378 MW order, which is the largest-ever order extension for Suzlon. This brought the total order volume from NTPC Green to 1,544 MW.

Notably, in September 2023, Suzlon had bagged its single-largest wind energy order of 1,166 MW from NTPC Green, marking a turning point for its growth trajectory and visibility in the renewable energy sector.

This strategic tie-up:

• Solidifies Suzlon’s position as a leading supplier to PSUs in the wind segment

• Provides long-term revenue visibility

• Reinforces investor confidence about Suzlon’s order book strength and execution pipeline

Market Sentiment and Share Price Action

Despite starting the session strong, Suzlon shares gave up intraday gains and declined by 0.9% to ₹65.79 by afternoon trading. The dip is largely attributed to profit booking ahead of results, a common phenomenon observed when stocks rally in anticipation of strong earnings.

Over the past four sessions, the stock has surged more than 8%, partly due to:

• Strong December quarter results setting the tone for continued performance

• The announcement of a major order win from NTPC Green

• Bullish sentiment in the renewable energy space

However, the marginal dip ahead of the earnings announcement suggests that investors are now awaiting concrete Q4 numbers before placing fresh bets.

Operational Strength and Order Book Visibility

Suzlon’s business momentum is driven not just by past performance but by a robust and growing order book. With nearly 1,544 MW worth of orders from NTPC alone, the company’s execution capacity and scalability will remain critical in the coming quarters.

Key operational strengths include:

• Deep presence in the wind energy sector

• A growing list of public sector and institutional clients

• Strong supply chain and project execution capabilities

• Focus on cost optimization and margin expansion

What to Watch Going Ahead

Investors and analysts will closely monitor the following in Suzlon’s Q4 FY25 results:

• Revenue and profitability trends

• Updated volume and capacity addition numbers

• Execution timeline of recent order wins

• Commentary on the demand environment for wind energy

• Management outlook on regulatory policies, capital expenditure, and international expansion

Any miss in expectations or cautious commentary could lead to short-term volatility in the stock. Conversely, a positive earnings surprise or upgraded outlook could drive a fresh rally.

Conclusion

While Suzlon Energy shares dipped ahead of the March quarter results, the company remains well-positioned in India’s clean energy transition journey. With solid topline growth, improving margins, and a record order book, Suzlon’s fundamentals appear resilient. The Q4 FY25 results will be key in reinforcing or reshaping market sentiment going forward.

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