Suzlon Shares May Remain Under Pressure Following UBS Target Price Cut Amid Q4 Earnings Miss

UBS Cuts Target Price for Suzlon Energy Despite Strong Long-Term Growth Prospects

Suzlon Energy, a major wind energy company, is likely to remain in focus on Tuesday after UBS, a leading brokerage firm, reduced its target price for the company following weaker-than-expected Q4 results. Despite this, UBS maintained its positive view on Suzlon's long-term growth prospects.

UBS retained its 'Buy' rating on Suzlon stock but lowered its target price to Rs 72 per share, indicating nearly 35 percent upside from the previous day's closing price. The brokerage pointed out that Suzlon's fiscal fourth-quarter revenue and EBITDA grew a robust 45 percent and 39 percent year-on-year, respectively, reflecting continued execution strength and strong industry demand. However, both metrics fell short of UBS' estimates.

According to UBS, Suzlon's Q4 revenue missed its forecast by 16 percent, while EBITDA fell short by 21 percent, making the quarter weaker than expected despite healthy year-on-year growth. The brokerage did not highlight any major concern with the company's broader business outlook, adding that FY26 performance was largely in line with management guidance.

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Suzlon remains well-positioned to benefit from favorable industry tailwinds, supported by a strong order pipeline and steady execution. India's renewable energy push, growing demand from commercial and industrial customers, and continued participation from public sector entities are expected to support the company's growth trajectory over the medium term. However, the brokerage flagged execution discipline as a key monitorable, citing industry-wide challenges related to right-of-way approvals and evacuation infrastructure that continue to affect project execution timelines across the wind energy sector.

Suzlon's Q4 FY26 results, announced on Monday, presented a mixed picture. The company's consolidated revenue from operations rose 44.9 percent year-on-year to Rs 5,468 crore, while EBITDA increased 39.1 percent to Rs 964 crore. Net deliveries climbed to 830 MW, compared with 573 MW in the year-ago quarter, reflecting strong project execution. However, net profit declined 5.7 percent to Rs 1,114 crore from Rs 1,181 crore a year earlier. EBITDA margin also narrowed to 17.6 percent from 18.4 percent in the corresponding quarter last year.

For FY26, Suzlon reported annual deliveries of about 2.46 GW, its highest-ever performance in India. The company ended the year with an order book of around 5.9 GW, of which roughly 66 percent came from PSU and commercial-and-industrial customers. Suzlon shares ended Monday's session at Rs 53.5, down 0.5 percent for the day. The stock has fallen nearly 17 percent over the past year, underperforming the Nifty 50, which has declined about 3.8 percent during the same period.

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