Suzlon Energy Q2 FY26: Profit Skyrockets, Order Book Hits New High

Standout Financial Results of Suzlon

Suzlon posted a standout performance in the second quarter of fiscal year 2025-26 (July-September), with consolidated net profit soaring to ₹1,279 crore, representing a remarkable 538 % year-on-year increase. This marks the company’s highest quarterly profit in three decades. Revenues surged by 85 %, from approximately ₹2,092 crore a year ago to about ₹3,865 crore this quarter.

Alongside growth in topline and bottom-line, Suzlon’s operating performance strengthened. The company’s EBITDA rose significantly, and margins widened — signalling improved project execution, cost control and operational leverage.

Order Book & Deliveries Momentum

A large part of the success story is tied to Suzlon’s robust order pipeline. The company reported an order book exceeding 6.0 GW, which provides strong visibility of future revenue flows. In the quarter, delivery volumes also hit record highs, especially in the domestic market, reflecting both demand momentum in India’s wind-energy transition and Suzlon’s execution capabilities.

What’s Driving the Growth

Several factors contributed to the strong quarterly numbers:

• Rising demand in India for wind energy and firm/dispatchable renewable solutions, especially from commercial & industrial (C&I) and PSU customers.
• Better execution of existing orders, optimal manufacturing and supply-chain alignment post restructuring.
• Favourable industry tailwinds: The renewable-energy sector is growing rapidly due to India’s decarbonisation targets, local-content mandates, and infrastructure focus.
• Financial engineering: Some gains reflect deferred tax write-backs and other accounting items which boosted profitability in the quarter (notably, tax benefits contributed meaningfully to the profit surge).

Market Implications & Investor View

For investors, Suzlon’s Q2 results send several clear messages:

• The company is executing well and capturing growth in a large addressable market.
• With a large order book and strong delivery momentum, there is better earnings visibility than many peers in the renewables services segment.
• Improved margins indicate Suzlon is moving beyond merely volume growth into profitability improvement — a key factor for long-term value.
• Given the improved outlook, some brokerages have raised their target prices on the stock, reflecting renewed investor confidence.

Suzlon Risks & Things to Watch

Despite the strong showing, Suzlon still faces risks:

• The magnitude of order book wins is positive, but execution risk remains — delays or cost overruns can impact margins.
• The heavy reliance on Indian wind-energy demand makes Suzlon somewhat exposed to policy changes, tender slowdowns or subsidy risks.
• The contribution of deferred tax write-backs means some of the profit growth may be non-recurring, so sustainability needs to be judged carefully.
• Renewables remains a capital-intensive sector. Suzlon must continue to manage working capital, debt levels, component supply and competition from global manufacturers.

Final Verdict

Suzlon’s Q2 FY26 performance is undeniably strong and sets a new benchmark for the company in recent years. With revenues up ~85 %, profit up more than five-fold, and an order book exceeding 6 GW, the company appears well-positioned in India’s rapidly growing renewable-energy market.

That said, prudent investors will keep an eye on whether this performance can be sustained across future quarters, especially as execution scales up and non-recurring items drop off. In summary: Suzlon is showing its re-emergence as a serious player in wind energy — but execution and discipline will determine whether this revival lasts.