Suzlon Energy Share Price Closes Above Rs 65; Immediate Support in Rs 61-62 range
Suzlon Energy share price managed to close the week above Rs 65. The renewable energy major has witnessed higher volatility in the recent sessions but the overall sentiment for the stock is positive. We have seen any dips being bought strongly by value buyers. Suzlon Energy has not managed to break higher resistance levels but the technical charts suggest that we could soon see a break above Rs 80 levels for Suzlon Energy. Over the last one month, the stock is down 1.5 percent but investors can expect higher moves in the coming weeks, especially if the broader market remains positive.
Suzlon Energy, once the poster child for India’s over-leveraged renewable sector, is now recording its highest-ever profits, a debt-free balance sheet and a record 5.6 GW order book. Regulatory clouds have lifted—SEBI has closed a long-running case and both NSE and BSE have allowed an internal merger—while FY25 earnings jumped 214 percent to ₹2,072 crore. Market analysts see room to ₹80–₹85 if execution stays flawless, yet warn that elongated receivable cycles, raw-material inflation and promoter stake sales could temper the rally.
Regulatory Clean-Up Removes Legacy Overhangs
No-adverse-observation letters from NSE and BSE on 4 July clear the path for Suzlon to merge wholly owned Suzlon Global Services, simplifying group structure, unlocking cost synergies and easing compliance duplication.
SEBI’s case closure on 30 June eliminates litigation risk that had stalked the stock since 2021.
Together, the twin approvals signal that regulators now view Suzlon as a reformed corporate citizen—an intangible asset when bidding for government wind tenders that prize governance credentials.
FY25 Earnings: From Survival to Record Prosperity
| Metric | FY24 | FY25 | ∆ YoY |
|---|---|---|---|
| Revenue | ₹6,514 cr | ₹10,851 cr | +67 % |
| EBITDA Margin | 14 % | 17 % | +300 bp |
| Net Profit | ₹661 cr | ₹2,072 cr | +214 % |
| Net Debt | ₹3,200 cr | Nil (net cash) | — |
Deferred-tax gain of ₹600 crore flattered Q4 bottom-line optics, yet even on a like-for-like basis core operating profit jumped sharply as scale effects kicked in.
Interest cost evaporates: wiping out more than ₹13,000 crore of debt since FY20 has converted finance expense into profit fuel.
Order Book: The S144 Turbine Takes Center Stage
5.6 GW firm orders, covering NTPC Green (378 MW), BPCL (50.4 MW) and Sunsure Energy (100.8 MW).
> 5 GW of that backlog features the new S144 turbine, optimised for India’s low-wind corridors; modular blades reduce installation cost per MW by an estimated 8 percent.
India’s 2030 wind target: 140 GW. Suzlon’s installed base is ~20 GW; management eyes a high-single-digit share of additions, implying annual deliveries of 3–4 GW at mid-teens EBITDA margin.
Execution cadence is critical; any slippage pushes revenue recognition rightward and jolts working-capital needs.
Share-Price Structure: Technicals Favour the Bulls—For Now
- Price: ₹65.5 (6 July 2025)
- One-year return:+27 %; two-year: +500 %
- Support zone: ₹61–₹62 (200-DMA cluster)
- Trigger level: ₹70 close would unlock ₹78 then ₹85, per Bonanza and SAMCO charts.
- RSI 60.5; MACD positive; Bollinger mid-band rising.
Interpretation: momentum intact but susceptible to shake-outs; prudent entries lie on dips toward the 20-DMA around ₹64.
Analyst Scorecard: Targets Cluster in the Low-₹80s
| Broker / Analyst | Date | Call & Target | Key Rationale |
|---|---|---|---|
| Motilal Oswal | 29 May | Buy, ₹83 | 60 % YoY revenue growth guided, sector tailwinds |
| JM Financial | 10 Jun | Buy, ₹81 | 35× FY27 EPS; bullish on wind resurgence |
| Bonanza (Kamble) | 30 Jun | Accum., ₹80 | Weekly breakout, support ₹61 |
| SAMCO (Mehra) | 30 Jun | Accum., ₹78–₹85 | Saucer base; close > ₹70 confirms |
| INDmoney Consensus | Jul | Fair, ₹76.25 | Eight-analyst blend, 16 % upside |
Street Bias: Overweight, but valuation premium implies execution must stay flawless.
Core Growth Catalysts
Zero-debt balance sheet: frees up ~₹800 crore in annual interest savings, cushioning margins.
Policy push: Renewable Purchase Obligations, hybrid-tender roll-outs and localisation mandates funnel wind capacity to domestic champions.
Asset-light strategy: No exposure to merchant-price risk; capital deployed in blades, towers and O&M, not asset ownership.
Operational leverage: 12 straight profitable quarters validate cost discipline post-restructuring.
Risks that Could Clip the Turbine’s Blades
Execution delays: Land acquisition, grid evacuation or logistics snarls can derail project timelines.
Elongated receivables: Debtor days stretched to 130 (vs. 102 FY24); state-owned DISCOMs notorious for late payments.
Input-cost swings: Steel and copper price spikes compress margin unless contracts carry pass-through clauses.
Promoter sales: The Tanti family’s ₹1,300 crore off-load was absorbed, but fresh dilution could spook sentiment.
Solar competition: Levelised cost of energy for utility solar remains lower; hybrid bids may favour solar-heavy mixes.
Sectoral Context: Wind Regains Policy Favour
India current wind capacity: ~47 GW
2030 target: 140 GW (93 GW incremental)
Government shifting toward hybrid auctions where wind balances solar intermittency, raising effective PLF for utilities.
Local-content norms: Turbines sourced domestically gain tender scoring premiums—advantage Suzlon as an indigenous OEM.
Actionable Playbook for Investors
Trading lens (3–6 months): Accumulate on ₹62–₹64 pullbacks; trail stop below ₹61; book partial above ₹78.
Core portfolio (12 months): Position size modestly; monitor quarterly order-book conversion and debtor-day trajectory.
Risk hedge: Pair trade with a solar EPC name to offset sector-specific setbacks.
