Shares of Suzlon Energy (NSE: SUEL) remain on analysts’ radar with a BUY recommendation and a target price of INR 82, implying a potential upside of 24% from the current market price of INR 66. The optimism is underpinned by an improving policy environment, healthy order prospects, and better execution visibility.
According to the latest research note, the much-anticipated Revised List of Models and Manufacturers (RLMM) notification mandating local content for key wind turbine components is expected to be formalised by the second quarter of FY26. While power developers have requested a phased implementation, industry watchers believe the policy shift will boost domestic manufacturing and support players like Suzlon.
The company is well-positioned to benefit from fresh order inflows, with nearly 1.5GW of NTPC bids likely to be awarded within the next six months. Analysts expect Suzlon’s new orders to reach around 4GW in FY26, taking the closing order book to approximately 6.5GW — surpassing its current record of 5.6GW.
Execution challenges remain a concern for India’s wind sector, which added 4.2GW in FY25, still short of the 5.5GW peak achieved in FY17. However, a combination of factors — larger turbine sizes, a broader state presence, and proactive EPC engagement — is expected to help installations cross previous highs in the coming years.
Significantly, Suzlon’s focus on expanding its EPC share is seen as a major positive. The EPC component of the order book is likely to grow from the current 20% to around 50% over the medium term, improving execution timelines and cash flows.
On the financial front, Suzlon’s cash conversion cycle is projected to improve by 30–35 days, supporting free cash flow generation and balance sheet efficiency. Analysts also expect the company to maintain healthy returns on equity (RoE), forecast at over 30% through FY27, driven by operational leverage and prudent working capital management.
Valuation-wise, Suzlon is trading at 61x FY25 earnings, which is expected to moderate to 28x by FY27 as earnings ramp up sharply. The target price of INR 82 is based on a forward P/E multiple of 35x on FY27 earnings, reflecting confidence in execution and policy tailwinds.
With robust demand, supportive regulation, and improved financial discipline, Suzlon is well placed to harness India’s wind energy growth story.
