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Rising Solar and Battery Storage Competition May Challenge Suzlon’s Growth: Analysts

Analysts believe that increasing competition from solar and battery energy storage systems (BESS) could pose near-term challenges for Suzlon Energy, one of India’s leading renewable energy solutions providers, as the wind sector approaches a potential growth plateau.

According to a note by Nuvama Institutional Equities, the wind energy industry is expected to stabilize at around 8–10 GW annually over the next two to three years, amid rising competition from solar-plus-storage projects. “Assuming Suzlon retains its 30–35% market share, execution may flatten at around 3–3.5 GW per year during FY27–28,” the report noted.

Meanwhile, JM Financial highlighted ongoing execution bottlenecks, including land acquisition, connectivity, and right-of-way (RoW) issues, which it believes could cap annual wind installations at 7–8 GW.

Execution Remains Key

Suzlon currently has a 4.5 GW manufacturing capacity and an order book of 6.2 GW as of H1 FY26. The company commissioned 153 MW of projects in Q2 FY26, up from 130 MW in the same quarter last year, and has guided for at least 1,500 MW of project commissioning during FY26.

Analysts, however, cautioned that Suzlon may find it challenging to maintain its growth trajectory beyond FY28 without strategic diversification. Still, JM Financial pointed out that the company could continue to see strong opportunities, supported by factors such as localisation of wind components, confidence from large utilities, and the shift toward hybrid renewable projects, even if wind’s share in hybrids partially gives way to solar-plus-BESS setups.

India added 1,449 MW of wind capacity in Q2 FY26, more than doubling from 707 MW in Q2 FY25, reflecting growing industry activity. Suzlon’s current execution pipeline stands at 1,865 MW, with foundation work underway for 286 MW.

Company Outlook

In response to analyst concerns, a Suzlon spokesperson stated,

“We are building a sustainable and profitable business much beyond 2028.”

During a post-earnings call, I.P. Chalasani, Group CEO of Suzlon Energy, emphasised the importance of a balanced renewable mix rather than competition between technologies.

“It’s not about solar versus wind. To achieve the lowest cost of energy and match the country’s load factor sustainably, we must focus on firm and dispatchable renewable energy (FDRE). That’s the only way to truly replace fossil fuels,” Chalasani said.