Suzlon Energy shares jumped by over 5% in early trading on Friday, moving from ₹61.60 to an intraday high of ₹65.50 on the NSE and BSE. The rise pushed the stock above its recent resistance in the ₹64–₹65 range, drawing attention from traders and analysts alike. The surge follows a string of positive developments, including a major order win, Futures & Options (F&O) segment inclusion, and supportive government policy changes aimed at promoting domestic manufacturers.
The stock movement signals a return of investor interest, especially after Suzlon’s recent financial recovery and operational improvements. Analysts from NDTV Profit, Mint, and The Economic Times have highlighted the stock as a potential outperformer in the renewable energy space.
Suzlon Energy Major 381 MW Wind Energy Order from Zelestra India
One of the primary triggers for the rally was Suzlon’s announcement of a massive 381 MW project order from Zelestra India. This includes the supply of 127 S144 wind turbines (each 3 MW capacity) spread across Maharashtra (180 MW), Madhya Pradesh (180 MW), and Tamil Nadu (21 MW). This project is part of the Firm and Dispatchable Renewable Energy (FDRE) program by SJVN in Maharashtra and MP and includes direct commercial and industrial (C&I) supply in Tamil Nadu.
With this, Suzlon’s order book utilization has climbed to 91%, a strong signal of robust demand and execution capabilities.
Inclusion in Futures & Options (F&O) Segment
Starting August 1, 2025, Suzlon was officially included in the F&O segment. This inclusion is seen as a major milestone, as it adds trading flexibility, boosts stock liquidity, and attracts a new segment of derivative-led investors. According to Mint and Goodreturns, the move is expected to stabilize volumes and further strengthen the company’s investor base.
Government Policy Tilt Toward Domestic Manufacturing
In a major policy shift, the Indian government has mandated local sourcing of components for wind turbines and prohibited the sharing of operational data with foreign firms. This gives Indian Original Equipment Manufacturers (OEMs) like Suzlon a significant edge. Analysts at Motilal Oswal and Business Today believe this move will reduce foreign competition and help protect domestic companies’ margins.
Suzlon Energy Current Valuation, Performance Snapshot, and Analyst View
- Current Market Price: ₹64–₹65 (Intraday high: ₹65.50)
- 52-Week Range: ₹46.15 – ₹86.04
- Market Capitalization: ₹88,600–₹90,000 crore
- Performance:
- Down ~7% over the past year
- Up ~4% year-to-date
- Gained ~11% in the last 6 months
- Analyst Ratings: Most brokerages maintain a Buy rating with a 12-month target of ₹77–₹82, implying a potential upside of 20–24% from current levels.
This optimism stems from Suzlon’s ability to secure new orders, capitalize on policy tailwinds, and report strong quarterly earnings.
Financial Turnaround and Risks to Watch
Suzlon’s financial performance for FY 2024–25 marks a significant recovery:
- Total Revenue: ₹10,889 crore (up from ₹6,529 crore in FY 2024)
- Net Profit: ₹2,071 crore (vs ₹660 crore previously)
- Q4 FY25 Profit: ₹1,180.98 crore (up from ₹254 crore YoY)
This sharp rise in profit indicates effective cost control and operational efficiency, as highlighted by reports on Moneycontrol and NDTV Profit.
However, analysts are also cautious about a few factors:
- High Valuation: Price-to-Earnings (P/E) ratio ~40×; Price-to-Book (P/B) ratio ~14× – both considered high compared to industry norms.
- Dividend Policy: Suzlon currently does not offer dividends, which may deter income-focused investors.
- Promoter Holding: Stands at a modest ~11.7%, signaling limited skin in the game from the original promoters.
While these metrics don’t overshadow Suzlon’s recent wins, they are key considerations for long-term investors.
Conclusion: Bullish Momentum with Caution Ahead
Suzlon Energy is witnessing a strong upward trend, driven by favorable developments in business and policy. The 381 MW Zelestra order and F&O inclusion have energized investor sentiment, while the Indian government’s protectionist policies further strengthen its market position.
F.A.Q.
– What is the significance of the Zelestra India order for Suzlon?
The ₹381 MW order for 127 wind turbines significantly boosts Suzlon’s order book utilization to 91%, showcasing strong demand and execution strength. It also enhances Suzlon’s credibility in the Firm & Dispatchable Renewable Energy (FDRE) segment and the C&I supply space.
– How does Suzlon’s inclusion in the F&O segment affect the stock?
Being listed in the Futures & Options (F&O) segment increases trading volumes, brings in derivative traders, adds liquidity, and boosts investor confidence—potentially leading to better price discovery and greater institutional interest.
– What’s the market outlook for Suzlon shares?
Most analysts have maintained a Buy rating on Suzlon with a 12-month price target of ₹77–₹82, suggesting a potential upside of 20–24% from the current level around ₹65. However, they also advise monitoring valuation metrics and promoter holding levels.
– Are there any risks in investing in Suzlon now?
Yes. Despite the strong growth, Suzlon shares trade at high valuation multiples (P/E ~40×, P/B ~14×), have no dividend policy, and promoter holding remains low at ~11.7%. These could limit long-term confidence unless further operational progress is demonstrated.
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