Suzlon Energy Limited Q3 FY26 Earnings Call Summary

Summary

Suzlon Energy Limited - Q3 FY26 Earnings Call Summary Thursday, February 05, 2026 4:00 PM

Event Participants

Executives 2 J.P. Chalasani (Group CEO), Rahul Jain (Group CFO)

Analysts 6 Akash Mehta, Deepesh Agarwal, Harish Singh, Mahesh Patil, Nikhil, Shiva, Sudhanshu, Sumit Kishore

Financials & KPIs

Geographic & Segment Commentary

• WTG (Wind Turbine Generator): Reported highest ever quarterly deliveries of 617 MW. EBITDA margins dipped to 13.7% in Q3 due to a shift in customer mix (lower average sales price) and a higher proportion of project/EPC revenue which carries lower margins than pure supply.
• OMS (Operations & Maintenance Services): Remains a stable, high-margin business with over 15.5 GW under management. Management is implementing AI-enabled digitization to improve predictive maintenance and target uptime levels of 97-98%.
• Foundry & Forging (SE Forge): Revenue grew 33% YoY in 9M to ₹429 crores with EBITDA margins improving from 12% to 20%. Growth is driven by internal demand and non-wind segments (injection mold machines), with significant export recovery expected following the US trade deal.

Company-Specific & Strategic Commentary

• DevCo (Development Company): A new focused business unit to identify potential sites 3-5 years in advance and manage land/connectivity. This initiative aims to increase EPC share and shorten execution timelines without significant balance sheet commitment.
• EPC Transition: EPC share increased from 20% to 27% in Q3. Recent large orders from BrightNight and ArcelorMittal are typical of the new strategic focus on integrated offerings.
• Product Innovation: Progressing on a 5 MW platform currently in the “proto stage.” Meanwhile, the 3.3 MW variant is being marketed with a revised power curve to offer lower LCOE than the 3.15 MW model.
• Exports: Appointed Paulo Soares as President Europe; targeting orders in FY27 with revenue flow in FY28 from Europe, Australia, and Middle East.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Execution & Deliveries

• Question: Why the dip in WTG EBITDA margins to 13.7%? (Sumit Kishore)
• Answer: Primarily due to customer mix and average sales price (ASP) variance (190 bps impact) and higher project revenue proportion which has lower margins than pure supply (J.P. Chalasani).

Receivables & Aging

• Question: How much of the 2,354 MW pipeline and ₹5,745 cr receivables are pre-FY25? (Sumit Kishore)
• Answer: Only 50-60 MW of the pipeline is pre-FY25 (stuck on land issues). Approximately ₹2,100 cr of receivables are milestone-based and not yet due; no significant overdue concerns (Rahul Jain/J.P. Chalasani).

Future Technology

• Question: How is Suzlon reacting to Chinese peers’ 5 MW platforms? (Deepesh Agarwal)
• Answer: Prototype for 5 MW is in progress. However, larger turbines face land acquisition hurdles (multiple farmers per footprint). Suzlon’s 3.3 MW remains competitive in LCOE (J.P. Chalasani).

Order Pipeline

• Question: What is the status of the order book given the pause in central bidding? (Sudhanshu)
• Answer: Book-to-bill is healthy at 1.9x. The pipeline remains strong at 3-4 GW in non-bidding (C&I) routes. Standalone wind demand remains high, evidenced by the 3x oversubscription of SECI-19 (J.P. Chalasani).

Key Takeaway

Suzlon delivered a record-breaking Q3 FY26 with 617 MW in deliveries and a 48% YoY jump in EBITDA, reflecting strong operational turnaround and market leadership. The company has reached its highest-ever order book of 6.4 GW, supported by a deliberate shift toward EPC contracts (now 27% of mix) and the C&I segment (51% of order book). While execution remains the primary industry bottleneck due to ROW and land acquisition issues, Suzlon is mitigating this through its new “DevCo” model and active participation in the government’s new land task force. Management reaffirmed its 60% YoY growth guidance for FY26, supported by a net cash position of ₹1,556 crores and significant tax shields from accumulated losses. The company is well-positioned to capitalize on India’s 100 GW 2030 target and emerging export opportunities in Europe and the US.