Suzlon Energy shares hit 5% upper circuit as the company expects strong Q4 results.

Suzlon Energy Expects Q4 to Outperform Q3, Shares Hit 5% Upper Circuit

Suzlon Energy Ltd. is optimistic about its performance in the upcoming March quarter, anticipating that Q4 will surpass Q3 results. This outlook is based on strong execution plans and continued growth in its renewable energy business. Following the positive projections, Suzlon Energy shares surged to the 5% upper circuit limit, closing at ₹52.77.

In an interaction with CNBC-TV18 on January 29, 2025, Suzlon’s Group CFO Himanshu Mody expressed confidence that the company’s delivery performance in Q4 will be better than the 447 MW achieved in Q3, which was already a record high for Suzlon. In fact, the December quarter marked an impressive growth of 167% compared to the same period last year, with Suzlon achieving 447 MW of deliveries. For the first nine months of the fiscal year, Suzlon’s total execution reached 977 MW.

Suzlon Q3 Performance

Suzlon Energy’s Q3 results, which were announced after market hours on January 28, 2025, showed a remarkable 90% increase in both revenue and net profit compared to the same quarter last year. The company’s EBITDA margin also expanded during the period, a positive indicator of its operational efficiency. This strong performance has reinforced market confidence in Suzlon’s future prospects.

The company’s order book stands at an all-time high of 5.5 GW, which is expected to be executed over the next 18 months. This large order book provides a solid foundation for future growth, making Suzlon Energy’s outlook for the upcoming quarters highly promising.

Growth Plans and Capital Expenditure

Suzlon Energy has outlined plans to invest between ₹300 crore and ₹400 crore in capital expenditure (capex) over the next two to three years. The company is also selectively exploring acquisitions, although Mody stated that there are no immediate deals on the table.

Suzlon’s growth plans are focused on continuing its leadership in the wind and renewable energy sectors, with a strong emphasis on expanding its project execution capabilities. The company’s commitment to sustainable energy solutions aligns with global trends in renewable energy, providing Suzlon with ample opportunities in both the domestic and international markets.

Analyst Upgrades and Positive Stock Outlook

Following Suzlon’s positive Q3 results and upbeat Q4 projections, analysts have shown increased confidence in the company. Out of the six analysts currently covering Suzlon, five have upgraded their ratings to “Buy.” Nuvama, in particular, has raised its rating on the stock and set a target price of ₹60 per share, highlighting the company’s growth potential and the positive outlook for the renewable energy sector.

Global Renewable Energy Trends

Despite some concerns in the renewable energy sector, especially with shifting policies in major markets like the United States, Suzlon Energy remains confident about its long-term prospects. In particular, Mody noted that both solar and wind capacities had increased during former President Donald Trump’s first term in office, indicating that the global renewable energy market continues to grow despite geopolitical changes.

Suzlon’s Long-Term Financial Goals

Suzlon Energy is aiming to achieve a profit between ₹2,000 crore and ₹2,500 crore by FY 2026, a goal that analysts are closely monitoring. However, Mody emphasized that this will depend on consistent execution and favorable decisions by policymakers, particularly in the renewable energy space. Government policies will play a critical role in determining the pace of growth for companies like Suzlon in the years to come.

Conclusion: Positive Outlook for Suzlon Energy

Suzlon Energy’s Q3 results and positive outlook for Q4 reflect the company’s strong position in the renewable energy market. The company’s record deliveries, expanding order book, and capital investment plans are likely to support continued growth. With analysts giving the stock a bullish outlook and the shares hitting the 5% upper circuit, Suzlon Energy’s future appears bright, particularly in the rapidly growing renewable energy sector.

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