Suzlon Energy Ltd Q4 FY26 Results Analysis: Revenue Surges 54%, Record Deliveries at 2,456 MW

Suzlon Energy Ltd's Q4 FY26 numbers came in strong, with revenue of Rs. 16,679.11 Cr (+53.70% YoY) and PAT growth of +52.70% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Suzlon delivered strong FY26 results with 53.7% revenue growth and 62.7% EBITDA growth, led by record deliveries of 2,456 MW. The company exceeded its own WTG contribution margin guidance by 150 bps. However, working capital stress from PSU payment delays and finance costs significantly above guidance remain key concerns. The strong order book of 5.9 GW provides visibility for FY27.

Key Investment Insights

Key Positives

• FY26 revenue grew 53.7% YoY to Rs.16,679 Cr with highest-ever annual deliveries of 2,456 MW, up 58.4% YoY
• FY26 EBITDA grew 62.7% YoY to Rs.3,022 Cr with margin expanding 100 bps to 18.1%
• WTG contribution margin of 24.5% exceeded management's guidance of 23% by 150 bps
• WTG segment EBIT margin expanded 360 bps to 13.2% in FY26 from 9.6% in FY25
• Net cash improved 22.7% to Rs.2,384 Cr and net worth grew 55% to Rs.9,464 Cr
• OMS Q4 margin recovered to 36.7% toward the 37-40% guidance range
• Order book of ~5.9 GW with 66% from PSU and C&I segments provides execution visibility

Risk Factors

• Trade receivables surged 67.8% YoY to Rs.6,487 Cr, significantly outpacing revenue growth of 53.7%, due to PSU contract payment delays
• CFO/PAT ratio declined to 38% from 52.7%, well below the 80% threshold, indicating earnings quality concerns
• Finance costs of Rs.462 Cr exceeded management's guidance of ~Rs.250 Cr by 85%
• OMS margin for FY26 at 30.6% was below the guidance range of 37-40%
• Consolidated PAT (Rs.3,163 Cr) was Rs.948 Cr lower than standalone PAT (Rs.4,111 Cr), indicating subsidiary-level drag
• Working capital outflow increased 131% to Rs.2,054 Cr, tying up cash flow