Suzlon Energy and Inox Wind, engaged in the manufacturing of Wind Turbine Generators (WTGs) and providing comprehensive wind energy services, have recently announced their financial performance for the December quarter.
However, the Street reacted negatively, as the stocks remained weak following the Q3 report cards.
Inox Wind posted a revenue of ₹1,207 crore in Q3. Although this marked a 16% year-on-year (YoY) rise, it missed analysts’ consensus estimates, primarily due to lower order execution.
While execution continued to lag expectations, resulting in a topline miss, margin outperformance largely offset the impact on EBITDA, which grew 38% YoY to ₹281 crore.
The company had earlier set the FY26 execution guidance at 1,200 MW, but 9MFY26 execution stood at only 600 MW, implying a steep 600 MW run rate required in Q4FY26.
The company’s management attributed the execution miss primarily to customer-side site readiness delays, particularly in turnkey contracts, leading to deferred commissioning and a lower EPC share.
On the bottom line, consolidated net profit jumped 13% YoY to ₹127 crore, which also failed to beat estimates.
In the case of Suzlon Energy, the company reported a revenue of ₹4,228 crore, compared with ₹2,969 crore in the same period last year, driven by higher deliveries of 617 MW. Its net profit rose 15% YoY to ₹445 crore, impacted by deferred tax charge of ₹119.17 crore.
What brokerages are saying on Suzlon, Inox Wind earnings
Domestic brokerage firm Axis Securities cut its EBITDA estimates for Inox Wind for FY26–28E, as it expects lower execution of 900 MW in FY26 compared with its earlier estimate of 1,000 MW.
While the brokerage remains bullish on the Indian wind sector, supported by rising Commercial & Industrial (C&I) demand, expanding Central Transmission Utility (CTU) connectivity, and strong policy tailwinds, it noted that near-term sentiment remains weak due to softness in peak power demand data.
Another domestic brokerage firm, JM Financial, also lowered its execution targets for Inox Wind to 900 MW, 1,100 MW, and 1,200 MW for FY26, FY27, and FY28, respectively, compared with its earlier estimates of 1,050 MW, 1,500 MW, and 1,600 MW, citing challenges related to connectivity, RoW, and power purchase agreements (PPAs).
Systematix Institutional Equities said, “Despite sustained EBITDA margin strength, weaker execution momentum and relatively moderate order inflows versus key peers continue to constrain re-rating potential.”
For Suzlon Energy, JM Financial said that, like other utilities, the company is facing challenges in scaling up commissioning due to land acquisition, RoW, and grid connectivity issues. Over the past seven quarters, out of 3,175 MW delivered, only 778 MW of equipment has been commissioned.
Accordingly, the brokerage lowered its FY27 and FY28 delivery estimates from 3.1 GW and 3.5 GW to 3.0 GW and 3.2 GW, respectively.
“We view Suzlon Energy as a key beneficiary of rising share of FDRE/RTC/hybrid tenders and PSU-led projects, backed by its strong C&I exposure (51% of OB). We expect the wind industry to plateau at 8–10GW over the next 2–3 years as competition from solar + BESS projects intensifies,” said Nuvama Institutional Equities.
Which stock do brokerages favour after Q3 earnings?
Axis Securities trimmed its target price on Inox Wind to ₹130 apiece from an earlier ₹190, while maintaining a ‘Buy’ rating on the stock. Systematix Institutional Equities also cut its price target on Inox Wind to ₹144 per share from ₹181 but kept its ‘Buy’ rating intact.
“The stock trades at 24x FY26E P/E. Strong order inflows can be a key re-rating driver, while a dynamic policy environment could pose challenges,” the brokerage said.
Meanwhile, JM Financial downgraded Inox Wind to ‘Add’ from ‘Buy’ and cut its price target to ₹120 apiece from ₹172 earlier.
For Suzlon Energy, JM Financial maintained a ‘Buy’ rating with a target price of ₹64, based on 25x FY28 EPS. Nuvama Institutional Equities also retained its ‘buy’ rating on Suzlon Energy but lowered its price target to ₹55 from ₹60 apiece.
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