Centrum Broking has reiterated its 'Buy' ratings for four prominent Indian renewable energy stocks: Suzlon Energy Ltd, Waaree Energies Ltd, ACME Solar Holdings Ltd, and NTPC Green Energy Ltd. This affirmation comes despite a mixed bag of September quarter (Q2FY27) results for the sector, which saw capacity additions constrained by transmission issues while power demand continued its robust growth.
The brokerage firm noted that Q2 is typically a weaker quarter for solar power generation due to lower capacity utilization. However, Centrum remains constructive on the overall sector outlook, citing a strong renewable bidding pipeline, increasing electricity demand, expanding domestic manufacturing, and growing adoption of battery storage solutions. Key monitorables for the sector include execution, grid availability, transmission infrastructure, and project-level returns.
Centrum's Stock-Specific Analysis and Targets
Among the four, ACME Solar Holdings Ltd stands out as Centrum's preferred pick, anticipating the company to sustain strong financial performance, largely due to its proactive investments in Battery Energy Storage Systems (BESS) and hybrid capacity additions.
Suzlon Energy Ltd. - Target: Rs 68
Suzlon Energy reported a mixed Q2FY27. Revenue increased by 27.3% quarter-on-quarter (QoQ) and 26% year-on-year (YoY) to Rs 4,869.05 crore, primarily driven by wind turbine generator (WTG) revenue, which accounted for 86.5% of the total. Operations and maintenance (O&M) revenue also saw steady growth. However, the Ebitda margin declined to 15% QoQ due to an increasing engineering, procurement, and construction (EPC) mix.
- Deliveries: Rose to 710 MW from 506 MW in Q1FY27.
- Commissioning: Increased by 69% QoQ and 196% YoY to 454 MW.
- Order Book: Remained flat QoQ at 6 GW.
- Expansion: Suzlon is expanding into higher-capacity S175/S163 turbines, repowering, BESS, and solar-hybrid solutions, targeting 10 GW in RE sales by FY31.
Waaree Energies Ltd. - Target: Rs 3,457
Waaree Energies delivered a weak Q2FY27, with revenue declining 5.2% QoQ to Rs 7,518 crore, though up 23.9% YoY. Ebitda margin saw a dip to 17.8%, largely attributed to the absence of the US duty refund benefit that had boosted Q1FY27 margins.
- Module Production: Stood at 3 GW, up 15.4% YoY.
- Order Book: Declined slightly to Rs 59,200 crore from Rs 61,500 crore QoQ.
- Manufacturing Capacity: Installed capacity is 25.8 GW for solar PV modules and 5.4 GW for solar cells, with an additional 10 GW cell capacity expected in FY27.
- Diversification: BESS capacity and transmission and distribution (T&D) expansion are key growth diversifiers.
ACME Solar Holdings Ltd. - Target: Rs 506
ACME Solar Holdings posted a robust Q2FY27, with revenue surging 3.4% QoQ and 89.6% YoY to Rs 887 crore, propelled by BESS monetization and renewable capacity additions. While power generation moderated QoQ, it was up 19.6% YoY.
- Operational Capacity: Stood at 2,990 MW, flat QoQ.
- Total Portfolio: 8,370 MW, including 20 GWh of BESS installations, with 7,300 MW under Power Purchase Agreements (PPAs).
- BESS: Emerging as a key growth driver, with cumulative commissioned capacity reaching 5.2 GWh.
- Targets: Aims for approximately 1.5 GW of renewable capacity and over 12 GWh of BESS capacity in FY27, with a 2030 ambition of 15 GW renewable capacity and 50 GWh BESS.
NTPC Green Energy Ltd. - Target: Rs 105
NTPC Green Energy reported a muted Q2FY27 performance, with revenue rising 53.2% YoY but falling 15.2% QoQ to Rs 938 crore. Ebitda margin declined to 88.4% QoQ.
- Capacity Additions: Added 388 MW of renewable capacity, bringing operational capacity to 11.1 GW.
- Generation: Rose to 10,881 MU in H1FY27 from 6,760 MU in H1FY26.
- Portfolio: Comprises 10,156 MW operating solar, 903 MW operating wind, 16,627 MW contracted, and 3,231 MW pipeline projects.
- Growth Drivers: Robust growth visibility driven by continuous capacity additions, hybrid/round-the-clock (RTC) projects, BESS, and strategic partnerships.
Centrum emphasizes that timely commissioning, capacity utilization factor (CUF), and leverage will remain critical factors for monitoring NTPC Green Energy's performance.