Suzlon Energy share price tumbles 10% in two days after Q1 results. Should you buy the dip?

Suzlon Energy Q1 results review: Shares of Suzlon Energy remained under pressure on Wednesday, falling 1.5% to ₹47.27 on the BSE after the renewable energy company reported a decline in first-quarter profit despite posting strong revenue growth and record wind turbine deliveries.

The latest decline extended the stock's losses to 10% over the last two trading sessions, as investors reacted to weaker margins and softer profitability. However, Brokerage firms largely retained their positive stance on the stock, although a few trimmed their target prices after the quarterly results.

Suzlon Energy Q1 Results

Suzlon reported a consolidated net profit of ₹305 crore for the quarter ended June 2026, down nearly 6% YoY from ₹324 crore in the corresponding period last year.

Despite the decline in profit, the company's operating performance remained strong. Revenue from operations rose 22.5% YoY to ₹3,819 crore, compared with ₹3,117 crore in the year-ago quarter.

Operationally, the company recorded its highest-ever first-quarter deliveries of 506 MW, representing a 14% YoY increase. Commissioning also improved sharply, rising 2.3 times to 269 MW. Suzlon's cumulative order book stood at 6.1 GW at the end of the quarter, with 84% of the orders coming from the public sector undertaking (PSU) and commercial and industrial (C&I) segments.

The company also secured record fresh order inflows of around 1 GW during the quarter. These included two major developer-led EPC orders from Tata Power and the Waaree Group. Reflecting Suzlon's strategic focus on the EPC business, the share of EPC projects in its order book increased to 32%, up from 22% in Q1 FY26.

Commenting on the company's performance, Girish Tanti, Vice Chairman, Suzlon Group, said the company has entered a new phase of growth.

“Suzlon is stronger than ever, and we're leveraging this to invest in our future. Suzlon 2.0 is underway as we build four strategic growth engines with wind-led RE solutions, strengthen our technology, and focus on long-term customer partnerships.”

Suzlon Group Chief Financial Officer Rahul Jain said that EBITDA and profit after tax (PAT) margins remained consistent with ongoing business developments, although they were affected by temporary logistics disruptions arising from the geopolitical situation, strategic investments, and changes in project scope and segment mix.

Should you buy the stock?

Despite the softer earnings, most brokerages retained their positive outlook on Suzlon, although some revised their target prices following the results.

Motilal Oswal reiterated its 'Buy' rating while reducing its target price to ₹65, implying an upside of around 35% from current levels. The brokerage described the quarter as soft but maintained that Suzlon remains on track for long-term growth.

According to Motilal Oswal, investors should closely monitor three key factors going forward. The first is the pace of fresh order inflows, project deliveries and installations during FY27 and FY28, which will determine whether the current growth momentum can be sustained.

Secondly, the brokerage highlighted that the wind turbine generator (WTG) contribution margin declined to 23.4%, compared with 26% in Q1 FY26 and 24.5% in Q4 FY26, primarily because of changes in the project scope mix.

The third factor was the decline in the company's EBITDA margin, which came in at 15.5%. According to the brokerage, margins were impacted as deliveries were affected by temporary supply chain and logistics disruptions linked to geopolitical tensions in the Middle East.

JM Financial also maintained its 'Buy' rating with a target price of ₹62, implying a potential upside of around 29%. The brokerage said EBITDA margin missed expectations despite strong WTG deliveries, which increased to 506 MW in Q1 FY27 from 444 MW in the corresponding quarter last year.

It noted that commissioning remained subdued, as deliveries continued to outpace installations. However, it expects this gap to narrow as several transmission projects are commissioned from the end of FY28 onwards.

In contrast, Nuvama retained its 'Hold' recommendation while lowering its target price to ₹51, implying an upside of about 6.2%.

The brokerage said Suzlon remains well positioned to benefit from the increasing share of FDRE, RTC and hybrid tenders, as well as continued ordering by PSUs. It also highlighted the company's strong presence in the commercial and industrial (C&I) and captive segments, which together account for 70% of Suzlon's order book.

However, Nuvama expects the wind industry to plateau at 8-10 GW over the next two to three years. While it described Suzlon's FY31 targets as encouraging, the brokerage believes the company's growth trajectory is likely to be back-ended.

Suzlon Energy share performance

Suzlon Energy shares have remained under pressure across multiple timeframes. The stock has declined around 11% in the past week, 17% over one month, 16% in the last three months, and 23% over the past year.

Despite the recent correction, the stock remains a long-term multibagger, having delivered 717% returns over the past five years.

Suzlon shares touched a 52-week high of ₹66.80 in August 2025, while the 52-week low stands at ₹38.17, recorded in March 2026.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.