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Suzlon Maintains Growth Momentum Despite CFO Exit

Suzlon Energy Ltd, India’s leading wind turbine manufacturer, has reported a robust Q1 FY26 performance, though investor sentiment was dampened by the unexpected resignation of CFO Himanshu Mody. Despite the share price dipping nearly 5% over two sessions, the company’s operational and financial results highlight sustained momentum and industry tailwinds.

In the June quarter, Suzlon’s wind turbine generator (WTG) deliveries rose 62% year-on-year to 444 MW, while EBITDA grew 64% to Rs603 crore. Profit before tax increased 52% to Rs459 crore, although net profit growth was modest at 7% due to deferred tax charges. The company’s balance sheet continues to strengthen, having transitioned from a net debt of Rs16,700 crore in 2021 to a net cash position of Rs11,620 crore.

Order inflows also showed signs of revival, increasing 38% sequentially to 780 MW in Q1 FY26, supported by a significant 381 MW order from Zelestra in the current quarter. While still below the Q2 FY25 peak of 1,170 MW, the trend signals renewed momentum for the sector.

CEO J.P. Chalasani addressed investor concerns over competition from solar-plus-storage solutions, emphasizing that wind power remains more cost-competitive when battery costs are factored in. He highlighted that solar power alone cannot fully replace wind due to grid stability challenges, while wind’s higher capacity utilization offsets higher capex and opex compared to solar.

Policy support also strengthens Suzlon’s outlook, with MNRE’s mandate for domestic sourcing of 75% WTG components expected to benefit local manufacturers. With an annual capacity of 4.5 GW, Suzlon remains ahead of Inox Wind (2.5 GW) and continues to trade at a valuation premium (25x FY27 P/E vs. 16x for Inox), reflecting investor confidence in its growth trajectory.