Motilal Oswal Maintains Buy Rating for Suzlon Energy, Targets Rs 65
Suzlon Energy Misses Revenue Estimates, Beats APAT Expectations
Suzlon Energy, a leading renewable energy company, has released its consolidated financial results, which show a mixed performance. The company's consolidated revenue for the quarter came in at INR54.9 billion, missing the estimate of our research report by 7%. This underperformance was largely due to deliveries of 830MW, which were 8% lower than our estimated figure.
In terms of earnings, Suzlon Energy's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at INR9.6 billion, 5% below our estimate. However, the company's EBITDA margin stood at 18%, a notable achievement. On the other hand, the company's APAT (Attributable Profit After Tax) was reported at INR7.6 billion, beating our estimate by 20%. This outperformance was largely due to a lower-than-expected tax liability.
Key Highlights of FY26 Deliveries and Revenue Performance
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Metric | Our Estimate | Actual |
|---|---|---|
| Deliveries (GW) | - | 2.5 (+58.4% YoY) |
| Revenue (INR billion) | - | 167 (+54% YoY) |
| EBITDA (INR billion) | - | 30 (+63% YoY) |
| APAT (INR billion) | - | 21 (+42% YoY) |
Our team has reviewed the company's financial performance and has arrived at a target price of INR65 by applying a target P/E of 27x to FY28E EPS. This target P/E is in line with the company's historical average two-year forward P/E of 27x.
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