Shares of Suzlon Energy Ltd. experienced a sharp decline on Friday, tumbling 9% to Rs 33.21 and marking a fresh 52-week low. This downturn followed the company's Q2 FY27 earnings report, which revealed a significant drop in consolidated net profit, prompting several brokerages to cut their price targets for the renewable energy solutions provider.
Stock Performance and Market Reaction
The renewable energy major's stock was among the top losers on the BSE, hitting a new 52-week low that surpassed its previous low of Rs 36.30 recorded on October 8. The firm's market capitalization also fell to Rs 46,202 crore amidst the bearish trend. Analysts noted that Suzlon Energy stock is currently trading below its key simple moving averages, indicating persistent selling pressure.
Brokerage Outlook and Price Target Revisions
Following the Q2 results, numerous brokerages reassessed Suzlon Energy's earnings outlook, leading to revised price targets:
- ICICI Securities lowered its target price to Rs 55 from Rs 65 but maintained a 'Buy' rating, citing attractive valuations.
- Axis Capital reduced its target for Suzlon Energy to Rs 42 from Rs 63.
- Nuvama Institutional Equities cut its target to Rs 41 from Rs 51, suggesting a potential upside of 11.44% from the prevailing market price.
- JM Financial downgraded the stock to 'Add' from 'Buy' and lowered its target price to Rs 40 from Rs 46. The firm highlighted challenges such as the limited size of India's wind energy market, intensifying competition, and the complexities of operating as a single-product company.
Q2 FY27 Financial Highlights
Suzlon Energy reported a substantial 69.19% year-on-year (YoY) decline in consolidated net profit for the second quarter of FY27, reaching Rs 394.15 crore, compared to Rs 1,279.44 crore in the corresponding period last year. However, on a sequential basis, the company's net profit showed an increase of 29.14% from Rs 305.22 crore in the first quarter of FY27.
Despite the profit contraction, the renewable energy solutions provider posted a strong increase in revenue from operations. Revenue rose 25.96% YoY to Rs 4,869.05 crore in the September quarter, up from Rs 3,865.54 crore in Q2 FY26. Sequentially, revenue also demonstrated growth of 27.48% compared to Rs 3,819.36 crore in the June quarter, indicating an improvement over the preceding three-month period.
Suzlon Energy is a prominent provider of renewable energy solutions, primarily known for its wind turbines and a range of solar energy services, including project development, infrastructure, and asset management.