Suzlon Energy Ltd Q1 FY27 Results Analysis: Revenue Jumps 22.5%, Margin Compresses 360 bps

Suzlon Energy Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 3,819.36 Cr (+22.50% YoY) and PAT growth of -5.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Suzlon delivered record Q1 revenue of Rs.3,819 Cr (+22.5% YoY) and order book growth to 6.1+ GW, but EBITDA margin compressed 360 bps to 15.6% due to EPC mix shift and logistics disruptions, causing PAT to decline 5.9% YoY. Working capital improved with receivables declining, but margin recovery to the 17-18% range is critical for near-term trajectory.

Key Investment Insights

Key Positives

• Revenue grew 22.5% YoY to Rs.3,819 Cr, highest-ever Q1.
• Commissioning more than doubled to 269 MW (2.3x YoY).
• Order book grew to 6.1+ GW, up from 5.9 GW at FY26-end.
• Trade receivables declined 9.2% QoQ to Rs.5,890 Cr.
• RE Asset Management Services segment EBIT margin expanded 450 bps YoY to 33.6%.

Risk Factors

• EBITDA margin compressed 360 bps YoY to 15.6%.
• PAT declined 5.9% YoY despite 22.5% revenue growth.
• RES segment EBIT margin fell 530 bps YoY to 8.3% due to EPC mix shift and logistics disruptions.
• Finance costs rose 29.6% YoY to Rs.133.62 Cr, above the guided run-rate of ~Rs.70 Cr/quarter.