Suzlon Energy Share Price Plummets by 8% Below ₹40 for First Time in Almost Two Years

Suzlon Energy Share Price Continues Downward Trend

Suzlon Energy's share price fell 8.3% on March 2, reaching a new low of ₹39.13 per share, its lowest point since May 2024. The decline marks the continuation of a prolonged correction that began in June 2025, sending the stock below ₹40 for the first time in nearly 10 months.

Despite reporting December quarter numbers in line with Street estimates, Suzlon Energy is facing challenges in scaling up commissioning due to issues with land acquisition, RoW, and grid connectivity. The company made a major management change on February 24, appointing Ajay Kapur as CEO and elevating JP Chalasani to the group executive council.

However, domestic brokerage firm JM Financial remains skeptical about the leadership change, stating that it is unlikely to bring cheer for Suzlon Energy. The brokerage believes that the company's struggles with a widening gap between deliveries and commissioning will persist.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Challenges Facing the Renewable Sector

The renewable sector in India is facing numerous challenges, including unsigned PPAs, increasing costs, grid connectivity issues, and a slowing tender pipeline. Suzlon Energy is particularly vulnerable to land acquisition and RoW issues, which have hindered its ability to secure land clearances and commission equipment.

According to JM Financial, only 778 MW of the 3,175 MW delivered by Suzlon Energy over the past seven quarters has been commissioned. This sluggish execution has led the brokerage to lower its FY27 and FY28 delivery estimates from 3.1 GW and 3.5 GW to 3.0 GW and 3.2 GW, respectively.

Brokerage Ratings

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Despite the challenges facing Suzlon Energy, several brokerages maintain a positive outlook for the company. JM Financial maintained its 'Buy' rating with a target price of ₹64, based on 25x FY28 EPS. Nuvama Institutional Equities retained its 'Buy' rating but lowered its price target to ₹55 from ₹60. Motilal Oswal reiterated its 'Buy' call on Suzlon Energy with a target price of ₹74 per share.