Suzlon Energy Limited

Industrials — Specialty Industrial Machinery · NSE

₹42.00+₹1.05 (+2.56%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Suzlon Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Suzlon Energy Limited, together with its subsidiaries, manufactures and sells wind turbine generators and related components in India and internationally. The company operates through the WTG, Foundry & Forging, O&M services, and Others segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees8,600

Annual revenue₹16,547 Cr

How does it make money?

Turns over ₹16,547 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 8,600 employees supports ₹1.92 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.5%

Net margin19.1%

Revenue / employee₹1.92 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 39.4% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE24.8%

ROE39.4%

Peer median ROE17.1%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 17.9% and earnings to grow about 20.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.9%

Est. earnings growth+20.0%

Analysts11

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +183% while net margin moved -61% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+183%

Margin effect-61%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.68 — historically steadier than the index
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

18.4x

3Y Median

34.9x

40 monthly readings · mean 55.5x · range 9.3x–160.1x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 47% below its 3y median of 34.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 72% below the peer median of 66.2x.

vs. its own history

Cheap

34.9x median over 40 months · -47%

vs. sector peers

Cheap

66.2x median of 4 peers · -72%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.4x

P/B

5.90x

EV/EBITDA

20.1x

PEG

5.19

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 14.2% to 17.5% over 3 years.
Debt is being paid down
Total debt is down 49% over 3 years.
Cash generation is improving
Free cash flow is up 60% over 3 years.
High return on capital employed
ROCE of 24.8% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 18.4x the stock trades 47% below its own median of 34.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 259.2% to 33.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 116.0% to 24.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 436% against revenue growth of 183% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 2.81x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 436% against revenue up 183% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.2% to 17.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 49% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 47% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 72% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.81x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 436% against revenue up 183%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 259.2% to 33.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 31% a year✓ 41.4% CAGR
Latest reported year was 22.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹625 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹57,735 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

18.4x

Fair

Fairly valued against the generic band

P/B Ratio

5.90x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.28

Profitable

Profitable on a per-share basis

ROE

39.4%

Strong

Strong capital efficiency

ROCE

24.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.81x

High

High leverage

Revenue Growth (YoY)

22.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-8.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹625 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹42

P/E (Forward)

19.4x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

13.1%

Average

Average margins

Net Margin

18.1%

Good

Strong bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

40.2 / 43.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,854 Cr	₹6,403 Cr	₹10,763 Cr	₹16,547 Cr	+41.4%
EBITDA	₹831 Cr	₹1,011 Cr	₹1,876 Cr	₹2,890 Cr	+51.5%
EBITDA Margin	14.2%	15.8%	17.4%	17.5%	—
PAT (Net Profit)	₹2,849 Cr	₹660 Cr	₹2,072 Cr	₹3,163 Cr	+3.6%
EPS	₹2.64	₹0.5	₹1.51	₹2.31	-4.4%
ROE	259.2%	16.8%	33.9%	33.4%	—
ROCE	116.0%	18.3%	22.0%	24.8%	—
Total Debt	₹1,938 Cr	₹150 Cr	₹740 Cr	₹981 Cr	-20.3%
Free Cash Flow	₹390 Cr	-₹148 Cr	₹721 Cr	₹625 Cr	+17.0%

🟢 Revenue has grown at 41.4% a year over 3 years.

🟢 EBITDA has grown at 51.5% a year over 3 years.

🟢 EBITDA Margin has risen from 14.2% to 17.5% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 3.6% a year over 3 years.

🔴 EPS has shrunk at 4.4% a year over 3 years.

🔴 ROE has fallen from 259.2% to 33.4% over 3 years (-225.8 pts).

🔴 ROCE has fallen from 116.0% to 24.8% over 3 years (-91.3 pts).

🟢 Total Debt has shrunk at 20.3% a year over 3 years.

🟢 Free Cash Flow has grown at 17.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18,869 Cr

Total Liabilities

₹9,405 Cr

Total Debt

₹981 Cr

Cash & Equivalents

₹631 Cr

Operating Cash Flow

₹1,202 Cr

Capex

-₹577 Cr

Shareholding (proxy)

Institutional Holding

23.5%

Insider Holding

17.6%

Corporate Actions

Next Earnings

27 Oct 2026

Ex-Dividend Date

17 Jul 2008

Analyst Consensus

Recommendations

11 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹61.75

+47.0% vs CMP

Target Range

₹46 – ₹74

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

4 mixed2 general

Suzlon Energy shares: Up 12% in four straight sessions | Experts give 3 reasons to buy — target price, stop-loss

Livemint, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Suzlon Energy, Waaree Renewables, Satvik To IEX | 5 Mid, Small-Cap Stocks Below Industry Average P/E

Goodreturns, 17 Oct

Where Could Suzlon Energy Share Price Potentially Be in the Next 5 Years?

Equitymaster, 02 Oct

Suzlon Energy Shares: Up 12% in Four Straight Sessions | Experts Give 3 Reasons to Buy, Target Price, Stop-Loss

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Suzlon Energy shares fall 2% to near six-month low, down 15% in one month

The Economic Times, 28 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Solar Stock In Focus: Suzlon Energy Share Price Falls Over 3%. Here's Why

NDTV Profit, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest10/20

🟢ProfitabilityStrong11/15

🟡ValuationFair9.1/15

🟡RiskModerate4.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 31% a year41.4% CAGR
✓EBITDA margin holds above 15%17.5%
✓Free cash flow remains positive₹625 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 22%24.8%