Wind Energy shares jump up to 14% after robust Q4FY25 results

On Friday, Suzlon Energy shares rose around 13.57 percent, touching a day’s high price of Rs. 74.30 per share on NSE after it delivered a standout performance in Q4FY25 and disclosed full financial year FY25, marking a significant turnaround journey from its earlier fall.

Suzlon Energy’s consolidated net profit for the fourth quarter surged 365 percent year-on-year to Rs. 1,181 crore, compared to Rs. 254 crore in Q4FY24. This sharp increase was primarily driven by a deferred tax gain of around Rs. 600.75 crore, which significantly improved the bottom line. Even excluding this one-off gain, Suzlon’s operational performance was strong.

Revenue from operations for the quarter rose 73.16 percent year-on-year to Rs. 3,773.54 crore, up from Rs. 2,179.20 crore in the same period last year. This growth was due to a substantial increase in project execution volumes, with Suzlon delivering 573 MW in Q4FY25, more than double the 273 MW delivered a year earlier.

EBITDA for the quarter nearly doubled to Rs. 693 crore, up from Rs. 357 crore in Q4FY24, with margins rising to 18.4 percent from 16.4 percent year-on-year. Profit before tax and exceptional items reached Rs. 551 crore, a 97 percent increase from the previous year. The company also experienced a significant increase in finance costs, but its overall performance has been exceptional.

For the entire financial year of FY25, Suzlon Energy reported a consolidated net profit of Rs. 2,072 crore, a 214 percent jump from Rs. 660 crore in FY24. Annual revenue soared 67 percent to Rs. 10,851.32 crore, crossing the Rs. 10,000-crore mark since the company’s restructuring. EBITDA for the year rose 81 percent to Rs. 1,857 crore, highlighting strong operational efficiency.

Suzlon delivered a record 1,550 MW of wind turbine capacity in FY25, a 118 percent increase over the 710 MW delivered in FY24. This surge in deliveries was enabled by the efficient utilization of its 4.5 GW manufacturing capacity and a higher contribution margin in the Wind Turbine Generator (WTG) business, which rose to 23 percent, representing a 360-basis-point improvement.

The company’s order book stood at 5.6 GW at the end of FY25. Suzlon maintains a market share of over 30 percent, which remains a key beneficiary of the growing mix of firm, dispatchable, and hybrid renewable energy tenders in India.

Suzlon’s financial turnaround has reinforced its position as a leader in the Indian wind energy market. They are one of the leaders in the duopolistic market structure in EPC and WTG capabilities, and it is well-placed in both the commercial & industrial (C&I) and public sector segments, which together comprise a significant portion of its order book.

Brokerages remain bullish on Suzlon’s outlook, showcasing continued growth in execution, revenue, and profitability. Investec, one of the top brokerage firms, has set execution targets for the coming years, with estimates of 2.6 GW for FY26 and 3.3 GW for FY27, supported by domestic procurement mandates for wind turbine components.

However, Suzlon Energy’s Q4FY25 and FY25 results underscore a remarkable operational and financial turnaround. They achieved record executions, improved revenue, profit growth, and margin expansion, all while strengthening their market position and order book. Over the period, the company is poised for sustained growth in the coming years.