Suzlon Energy Ltd Q1 FY27 Earnings Call: Guides 17-18% EBITDA Margin, Record 506 MW Deliveries

Suzlon Energy Ltd held its Q1 FY27 earnings call on July 28, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Deliveries and Double-Digit Top-Line Growth

• Rs.3,819 crore consolidated revenue in Q1 FY 2026-2027, up 23% year-on-year, driven by the highest-ever first-quarter deliveries of 506 MW despite supply-chain disruptions from West Asia tensions.
• Rs.595 crore EBITDA in Q1 FY 2026-2027, flattish versus Rs.599 crore in Q1 FY 2025-2026; management attributed the compression to one-time fixed-cost investments, lower operating leverage from geopolitical factors, and a revenue-mix shift toward lower-margin RE Solutions.
• Rs.305 crore PAT and Rs.390 crore PBT in Q1 FY 2026-2027, with a non-cash tax charge of ~ 22% from the rundown of previously recognised deferred tax assets (management reiterated no major cash tax in the near term).
• Consolidated net worth of Rs.9,869 crore and a net cash position of Rs.2,322 crore as of Q1 FY 2026-2027 end, providing adequate working capital for the 6.1 GW order book.
• 269 MW commercial operation date (COD) in Q1 FY 2026-2027, up 2.3x year-on-year, aided by 1,257 MW of erected-but-waiting-for-commissioning stock that will phase into COD over H2 FY 2026-2027.

6.1 GW Backlog, DevCo Traction, and the FY31 10 GW Ambition

• 6.1 GW order book as of Q1 FY 2026-2027; in the first four months of the fiscal year, the company secured 1 GW of new orders, with ~60% coming through the DevCo (land-and-connectivity) model.
• ~602 MW of DevCo EPC orders booked as of Q1 FY 2026-2027, carrying similar commercial terms and advances as past contracts, value-accretive with ready land and grid connectivity for faster execution.
• ~Rs.500 crore DevCo investment cap established under Suzlon 2.0, with current spend in the Rs.200-300 crore range; management has no plans to alter the cap as of Q1 FY 2026-2027.
• Management reaffirmed the FY31 target of 10 GW renewable energy sales (wind, solar, BES) with a 75:25 split implying ~7.5 GW wind and ~2.5 GW solar/BES, supported by a 25% CAGR growth ambition over the next five years under Suzlon 2.0.
• ~85% of the order book comes from PSU and C&I customers, split roughly 50-50 between the two segments; management emphasised disciplined receivable management and adequate pricing for longer payment cycles.

EBITDA Margin Guidance Held at 17-18% Despite Near-Term Headwinds

• EBITDA margin guided at 17-18% with a ±0.5% variance for FY 2026-2027, with management expecting improvement in H2 as operating leverage from higher volumes offsets upfronted fixed costs.
• ~Rs.40-50 crore upfronted fixed-cost headwind in Q1 FY 2026-2027 across new plants (Puducherry, AI-enabled blade factories), technology development, and international marketing; impact expected to normalise over the fiscal year as volumes ramp up.
• Average selling price (ASP) rose to Rs.6.3 crore/MW in Q1 FY 2026-2027 from Rs.5.6 crore/MW in Q1 FY 2025-2026, driven by a project-mix shift with EPC + project business share rising from 22% to 32% year-on-year; management called ASPs in "fairly good shape."
• O&M (service) EBITDA margin of 43% in Q1 FY 2026-2027 was seasonally elevated; management believes a sustainable run-rate is in the higher 30s (~38-39%), closer to 40%, with the rest attributed to timing.
• Interest expense increased ~30% YoY in Q1 FY 2026-2027 due to higher revenue (~23% growth) and slightly higher working-capital utilisation, although the company's borrowing rate has actually declined.

5 MW Platform Debuts, AI-Enabled Factories, and BESS Roadmap

• S175 5 MW turbine maiden order received; domestic S175 deliveries expected to start in late FY 2026-2027 and continue into FY 2027-2028, with a gradual capacity transition from the current 4.5 GW to as much as 7.5 GW at full 5 MW conversion.
• 3 AI-enabled smart factories fully operational with 4.5 GW manufacturing capacity; FY 2026-2027 capex guidance maintained at ~Rs.700 crore (±Rs.100 crore) to support growth, including the new 5 MW series facilities.
• Targeting 3.1 GW of BESS-enabled capacity by FY31 through partnerships; discussions with potential partners are ongoing, with first closings expected over the next few months; a hybrid controller developed by central R&D has already attracted pilot orders.
• RE AMS portfolio at 16.1+ GW with machine availability >95%; solar serviceable asset base identified at 20+ GW; Renom AUM is growing, providing a recurring high-margin revenue stream.
• Foundry & forgings segment delivered Rs.126 crore revenue and Rs.22 crore EBITDA in Q1 FY 2026-2027, driven by domestic and export demand; management is diversifying into non-wind verticals (aerospace, auto) and increasing the export share.

Government Wind Targets, Repowering Potential, and ALMM Positioning

• Government targets a "10 GW annual wind market by FY30 and 15 GW by FY34-35", with a "national target of 100 GW by 2030" cited by management as structural demand drivers; ~5 GW of wind bids are currently outstanding in the domestic market.
• 25 GW repowering potential in India, with a significant portion of the fleet commissioned 10-20 years ago; management expects to announce pilot projects and confirmed orders for repowering before the end of FY 2026-2027, leveraging the same platform for Australia and Europe.
• Suzlon is "fully compliant and well positioned versus import dependent competitors" on the Approved List of Models and Manufacturers (ALMM) for wind turbines; the utility-scale ALMM deadline was implemented from August 2025, with the C&I deadline set for December 2026.
• International relaunch targeting Europe and Australia with 2 MW series, competing on value-add rather than price; first shipments expected in 18-24 months (period unspecified); the export strategy is to manufacture domestically and sell globally.
• 9 GW of orders for the 3 MW S144 series support cost optimisation through volume ramp-up; domestic overall realisation (including EPC) increased from 5.3 to 6.2 (units unspecified), with no significant pricing pressure despite INR depreciation due to volume benefits.