Suzlon Energy Q2 FY27 Results Analysis: Revenue Jumps 26%, EBITDA Margin Compresses 387 bps
Suzlon Energy Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 4,869.05 Cr (+25.97% YoY) and PAT growth of -69.19% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 29, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 4,869.05 Cr (+25.97% YoY) |
| PAT (Q2) | Rs. 394.15 Cr (-69.19% YoY) |
| EBITDA margin | 14.78% (-387 bps YoY) |
| EPS (Q2) | Rs. 0.29 (-68.82% YoY) |
| Market cap | Rs. 50,127.90 Cr |
| CMP | Rs. 36.79 |
Quarter Snapshot
Revenue grew 25.97% YoY to Rs.4,869.05 cr on record Q2 deliveries of 710 MW, but EBITDA margin compressed 387 bps to 14.78% and H1 EBITDA was flat YoY, leaving the FY27 17-18% margin guidance a stretch requiring 18.0-19.9% H2 margins. Earnings quality is the key caveat: H1 CFO was negative at −Rs.199.54 cr against PAT of Rs.699.37 cr, with receivables and inventory builds tying up cash. Offsets include RE AMS margins running above guidance at 43.4%, a Rs.10,277 cr net worth, and a CRISIL upgrade to AA-/Stable.
Key Investment Insights
Key Positives
- Revenue grew 25.97% YoY to Rs.4,869.05 cr; H1 revenue Rs.8,688.41 cr, +24.42% YoY
- Record Q2 India deliveries of 710 MW (+40% QoQ, +25.7% YoY); commissioning of 454 MW (+69% QoQ)
- RE Asset Management Services segment EBIT +51.49% YoY at 34.46% margin; H1 EBITDA margin 43.4% vs 'higher-30s, ~40%' guidance
- Normalized PAT grew 1.47% YoY (Rs.394.15 cr vs Rs.388.44 cr ex-DTA base)
- Net worth crossed Rs.10,000 cr (Rs.10,276.94 cr); net liquid build of ~Rs.817.90 cr
- CRISIL upgraded long-term rating to AA-/Stable and short-term to A1+
- Order book at 6,009 MW vs 5,697 MW at Mar-26; EPC share 38% vs 50% by FY28 target
- Subsidiaries contributed Rs.24.26 cr to consolidated PAT vs a Rs.7.16 cr drag a year ago
Risk Factors
- EBITDA margin compressed 387 bps YoY to 14.78%; H1 EBITDA declined 0.37% YoY on 24.4% revenue growth — no operating leverage
- Renewable Energy Solutions segment EBIT fell 22.53% YoY with margin halved to 8.80% from 14.76%
- H1 consolidated CFO negative at −Rs.199.54 cr (CFO/PAT −0.29x); FCF −Rs.388.82 cr
- Finance cost of Rs.122.58 cr runs ~75% above the ~Rs.70 cr/quarter guided run-rate
- Hitting FY27 EBITDA margin guidance of 17-18% requires 18.0-19.9% H2 margin vs 15.14% in H1 — flagged as a stretch
- Order book marginally declined sequentially to 6,009 MW from ~6.1+ GW, missing the 'closing order book > opening every quarter' target
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.