JM Financial downgrades Suzlon to Add, cuts target price
Suzlon Energy shares fell over 7% after JM Financial downgraded the stock and reduced its price target. The brokerage cited margin pressure and intense competition in the Indian wind market as key concerns.
JM Financial has downgraded Suzlon Energy from “Buy” to “Add” and reduced its target price to ₹40 from ₹46, according to ETEnergyWorld Renewables. The brokerage’s revised stance follows a sharp market reaction, with Suzlon shares falling over 7% to ₹34 during trading, down from a previous close of ₹36.79.
Brokerage Rationale
Suzlon management revised its FY27 EBITDA margin guidance downward to 15-16% from 17-18%. Reflecting this shift, JM Financial lowered its own margin estimates for FY27, FY28, and FY29 to 15%, 16%, and 15.5%, respectively. The brokerage projects Suzlon will deliver 3 GW, 3.3 GW, and 3.5 GW over those same fiscal years.
JM Financial argues that margins and growth prospects face pressure from FY28 onwards. The firm cites a limited India market of 7-8GW per annum against an industry capacity of 15-20GW as key constraints. It also highlights the inherent challenges of operating as a single-product company amidst increasing competition. While Suzlon shares dropped, IEX trading data shows the broader index fell 2.32% to ₹102.95.
Operational Performance
JM Financial highlights that Suzlon shipped 710 MW of wind turbine generators during Q2, a rise from 565 MW in the equivalent prior-year period. Onsite installations jumped to 454 MW, significantly exceeding the previous 153 MW, while the total order book remains at 6 GW, with 78% attributed to public sector undertakings and commercial & industrial customers. The brokerage points to fresh Q2 contracts of 202 MW secured from Waaree and 250 MW from Torrent Power.
| Metric | Q2 FY26 | Q2 FY25 |
|---|---|---|
| WTG Deliveries (MW) | 710 | 565 |
| Installations (MW) | 454 | 153 |
Suzlon’s mean revenue realization of ₹5.9 crore per MW underpins the financial value of these volume metrics.
IEX Trading Volumes
JM Financial’s analysis of Indian Energy Exchange (IEX) data indicates robust growth across power trading segments. Total power volumes reached 40 billion units, marking a 13% year-on-year increase. Within this total, the Day-Ahead Market (DAM) recorded 14.9 billion units, up 2% from the previous year, while the Real-Time Market (RTM) saw volumes rise 10% to 16.5 billion units. The Term-Ahead Market (TAM) segment saw volumes jump 101% to 5.5 billion units.
The DAM average market clearing price climbed 46% to ₹5.7 per unit, while the RTM price increased 49% to ₹5.2 per unit. JM Financial attributes these price escalations to elevated power demand. On the gas exchange front, Indian Gas Exchange volumes surged 160% year-on-year to 42 million MMBtu. Based on these trading metrics, the brokerage maintains an "Add" rating for IEX with a target price of ₹117 per share.
Background
On 30 October 2026, Saur Energy disclosed that Suzlon Energy achieved operating revenue of ₹4,869.05 crore for September 2026. This result indicates a 27.5% sequential improvement over the ₹3,819.36 crore recorded in June 2026. The figure shows a 26% annual increase relative to the ₹3,865.54 crore earned in September 2025.
- Q2 FY27 EBITDA reached ₹720 crore, signaling a 21% sequential expansion.
- During H1 FY27, the firm brought 723 MW of wind infrastructure online.
- Orders booked in H1 FY27 surpassed 1.5 GW.
- Current domestic production capabilities total 4,500 MW, distributed among 15 dedicated facilities.
- As of October 2026, the EPC division accounted for 8% of the total order book.
Additional reporting: Saur Energy.
Source: ETEnergyWorld Renewables. This article is an original Luminity report based on the linked source.