Suzlon Energy Reports Q2 FY27 Revenue of ₹4,900 Crore, Secures Major EPC Orders

Suzlon Energy has announced its financial results for the second quarter of fiscal year 2027, reporting a revenue of ₹4,900 crore, which marks a 26 per cent year-on-year growth. However, the company's EBITDA margin decreased to 15 per cent from 18.6 per cent recorded in Q2 FY26. According to the data, this margin contraction was primarily driven by a higher engineering, procurement, and construction (EPC) mix.

During the quarter, the company registered strong wind turbine generator (WTG) deliveries of 710MW, compared to 565MW in the corresponding quarter of the previous fiscal year. Installations saw a significant jump, trebling to 454MW from 153MW in Q2 FY26. Suzlon's total order book currently stands at 6GW, with the EPC share increasing to 38 per cent from 32 per cent in the previous quarter. Management has stated an ongoing target to achieve an EPC share of 50 per cent by FY28.

The company also secured substantial new contracts during the period, driven largely by DevCo-led orders which crossed 70 per cent of H1 order intake, exceeding 1.1GW. Notable additions include a DevCo-led 400MW EPC order from Tata Power and a 202MW order from the Waaree group for S144 (3.15MW) WTGs. Management noted that these specific contracts benefit from faster implementation timelines due to existing land readiness.

Looking ahead, projected deliveries are estimated at 3GW, 3.3GW, and 3.5GW for FY27, FY28, and FY29 respectively. In alignment with management guidance, projected EBITDA margins have been revised to 15 per cent for FY27, 16 per cent for FY28, and 15 per cent for FY29.

Market analysts point out that margins and future growth prospects for Suzlon may face pressure from FY28 onwards. Contributing factors include a limited domestic market size of 7 to 8GW per annum, rising industry capacity reaching 15 to 20GW, and the operational challenges inherent to a single-product company structure.

Reflecting these financial adjustments and market conditions, analysts have downgraded Suzlon from 'Buy' to 'Add', issuing a revised target price of ₹40 based on a 12x September 2028 estimated EBITDA valuation.

"Suzlon Energy's latest quarter highlights the classic trade-off between scaling volume and protecting operating margins. While strong deliveries and large-scale EPC orders from major players like Tata Power and the Waaree group demonstrate robust market demand and execution capability, the shift toward a higher EPC mix has clearly weighed on profitability. As the company navigates single-product dependencies and rising industry-wide capacity pressures, management's focus on faster implementation through land readiness will be critical to sustaining execution velocity over the next few fiscal years." — Dr. Shishir Gupta, Founder & CEO, StartupLanes