Suzlon Energy Q2 FY27 Earnings Call: Cuts FY27 Margin Guidance to 15%+, Record 710 MW Deliveries

Suzlon Energy Ltd held its Q2 FY27 earnings call on October 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Deliveries, But Margins Compress Sharply

• Revenue of Rs.4,869 Cr grew 27% QoQ (vs Rs.3,819 Cr in Q1 FY27); EBITDA up 21% QoQ to Rs.720 Cr and PAT up 29% QoQ to Rs.394 Cr.
• 710 MW delivered in Q2 FY27, up 40% QoQ — the company's highest-ever second-quarter India deliveries despite the seasonally lean monsoon quarter; commissioning grew 69% to 454 MW (from 269 MW).
• H1 FY27 revenue grew 24% YoY to Rs.8,688 Cr, with EBITDA at Rs.1,315 Cr, PAT at Rs.699 Cr, deliveries up 21% YoY to 1,217 MW and commissioning up 168% to 723 MW.
• EBITDA margin fell to 14.8% from 18.8% in Q2 FY 2025-2026 (H1 FY27: 15.1% vs 18% in FY26); management estimates ~16.5-17% normalized for non-recurring costs, FX/commodity and the West Asia crisis impact.
• PAT comparability is distorted — H1 FY26 PAT included significant DTA recognition benefits while current-year PAT carries non-cash DTA reversals; management flags PBT as the better like-to-like metric.
• Net worth crossed Rs.10,000 Cr to Rs.10,277 Cr as of September 2026, with net cash of Rs.2,048 Cr; CRISIL upgraded the long-term rating to AA- (stable) and short-term to A1+.

FY27 Margin Guidance Cut; West Asia Crisis the Swing Factor

• FY 2026-2027 EBITDA margin guided at 15%+ with ~1% upside ("15.1 plus 1%, not minus" per the CEO), lowered from the ~17% indicated at the Q1 FY27 call; the CFO said the earlier positioning had assumed positive change on the West Asia crisis and commodity impacts which has not happened.
• Margin bridge for Q2 FY27 — customer/scope mix 150-180 bps, segment mix ~50 bps, non-recurring Suzlon 2.0 OpEx ~100 bps (~Rs.50 Cr of branding/travel/SG&A), and commodity/FX ~50 bps; WTG contribution margin declined YoY from 26.9% to 21.2%.
• WTG contribution margin expected at 22-23% for FY27, with normalization subject to the externalities easing; the timing of any West Asia crisis resolution is difficult to predict given its external nature.
• Operating leverage expected in FY27 — H2 typically runs 1.5-1.65x of H1, which management believes will deliver close to 100 bps of leverage benefit in FY 2026-2027.
• Finance cost tracking above guidance — ~Rs.300 Cr was guided for FY 2026-2027 but H1 FY27 has already crossed Rs.250 Cr on strained working capital; the CFO declined to give a revised full-year number, saying interest cost as a percentage is declining like-to-like.
• ASP at ~Rs.5.9 Cr/MW in Q2 FY27 vs Rs.5.7 Cr/MW in Q2 FY 2025-2026; the QoQ dip below the ~Rs.6 Cr/MW run rate is mix-driven and the CFO gave no forward commitment on sustaining that run rate, stressing no prices have been reduced.

6 GW Backlog, 1.5 GW H1 Inflows, DevCo Scaling

• Order book of 6 GW provides ~18 months of coverage; 1,500 MW of new orders secured in H1 FY27 from marquee, repeat and new customers, with a 6 GW wind-specific pipeline over and above the booked order book and "very solid" visibility over the next 18 months (spanning H2 FY 2026-2027 and FY 2027-2028).
• ~78% of the order book is split between C&I and PSU/utility-scale customers, many repeat clients on end-to-end EPC or the DevCo model, driven by corporate decarbonization needs across steel, cement, chemical and other large plants.
• DevCo booked 900 MW of orders in H1 FY27 with COD within the next 18 months (by ~Q1 FY 2028-2029); management is exploring DevCo orders for delivery up to FY 2030-31, with years 3-5 orders (FY28-FY31 business) to be announced "in time to come".
• DevCo seed capital of Rs.500 Cr is being considered (period unspecified), with net deployment at Rs.125-130 Cr as of Q2 FY27 after some developed assets were sold.
• Management is incubating new businesses with new leadership teams joining, and expects in time to come to expand into BOP and other FDRE offerings (period unspecified); FDRE integrated offering discussions are active with terms being finalized, and solar/BESS FDRE EPC remains asset-light with no capex incurred so far.

Installation Ramp and the FY31 Ambition

• ~3,900 MW delivered but pending installation, of which ~1,300 MW already erected; with 725 MW erected in H1 FY27, the CEO sees "very good visibility" on full-year FY 2026-2027 deliveries.
• Execution grew ~169% — installations rose from ~350 MW in FY 2024-2025 to ~750 MW in FY 2025-2026, and H1 FY27 on-ground execution (~725 MW) has already nearly matched full FY 2025-2026; management expects sharper commissioning over the next 12-18 months (by ~FY 2028-2029), supported by reorganizing into 3 regional chief project officers.
• Suzlon 2.0 targets by FY31 — raise India market share from 30-33% to 40%; expand the order book from 6 GW to 15 GW exiting FY31; scale annual sales to ~10 GW (vs 2,500 MW in FY 2025-2026) on a guided 25% CAGR; build a 3 GW export order book and 1 GW of export sales by FY31.
• FY 2026-2027 sales run-rate — 1,200 MW sold in H1 FY27 with H2 FY27 sales expected at 1.5-1.65 GW, implying ~2.7-2.85 GW for the full year.
• RE tech commissioned the first S175 5 MW prototype and secured a first customer order of 21 turbines (105 MW); export orders are expected over the next few quarters.
• 5-7.5% of revenue (up to 10% max, customer-dependent) is linked to installation completion — revenue is booked before installation completes but cash is received only once installation is done; this drives the receivables build flagged in Q2.
• Capacity is not a constraint — the 4.5 GW manufacturing footprint is configured around 3.3 MW turbines and can be enhanced for higher-rated turbines (requires new blade points); growth will be driven by project pull, the order book and the DevCo strategy.

ALM Localization a Tailwind; Adani/JSW Entry Absorbed

• ALM localization notification (31 July 2025) covers six components — nacelle, blade, tower, generator, gearbox and special bearings — with grandfathering of 18 months for C&I and 36 months for IVP on already-bid projects; extensions of 1 year for yaw/pitch bearings (up to 31 Jan 2028) and 2 years for main bearings (up to 31 Jan 2029).
• Suzlon is "very well placed" on ALM with 80%+ local content already; the CEO said the currently covered components add up to nearly 85% of turbine cost and he believes "100% localization is achievable in India" (period unspecified).
• Industry-wide turbine and component exports from India total almost Rs.12,000 crores — the CEO clarified this is an industry figure, not Suzlon-specific; management believes the Rs.12,000 crore of exports out of India can actually triple in time to come (period unspecified).
• On Adani's and JSW's entry into wind, the CEO said there is enough room, noting close to 8 GW of demand visible for the Jan-September period and that Adani and JSW deploy a large part of their production for their own captive platforms; Suzlon's order market share was near 28-29% in H1 FY27 with ~23% delivery share.
• Management is targeting 30-40% market share by FY31 (currently ~28-29%), and said the Indian wind market is likely to reach 15 GW by FY35 with confidence Suzlon can capture 40% of that; India has ~1,100 GW of wind potential with only ~5% (~59 GW) utilized.
• Export orders expected to start being reported in FY 2027-2028 — the Blue Sky platform (5 MW and 6.3 MW models) is in certification with local grid-requirement studies at an advanced stage; the 2 MW platform sees repowering demand from European and Australian geographies; India repowering opportunity sized at 25 GW (period unspecified), plus a first India repowering order received from Tata.

Industry Tailwinds vs Working Capital and Renom Questions

• Industry context cited by management — India crossed 59 GW of installed wind capacity in Q2 FY27; the cabinet approved Green Energy Corridor Phase 3 enabling evacuation of up to 135 GW of RE capacity, supporting the government's target of "100 GW wind and 300 GW solar capacity by FY30"; annual installations are expected to cross 10 GW in the near term and reach 15 GW by FY31.
• Working capital elevated on seasonality — receivable days rose on timing of supply positioning and commissioning-linked receivables; inventory is being built for H2 FY27 supply; the CFO explicitly denied any linkage to the DevCo model and called it "unfair" to measure the company on a percentage of trailing 12-month revenues.
• Net cash of ~Rs.2,300 Cr as of September 2026 (vs Rs.2,600 Cr cited as of June 30, 2026), with encumbrance indicated at roughly 40-50% — the exact encumbered vs non-encumbered split was not disclosed; the CFO to revert with detail.
• Renom profitability questioned — an analyst flagged FY 2025-2026 top line growth of only ~5% with profits halving to ~Rs.3-4 Cr annually against an acquisition cost of ~Rs.700-800 Cr; management responded that new additions have happened, the business is starting to grow, and Renom added ~178 MW in H1 FY27 and won close to 200 MW in Q2 FY27.
• Renom scale ambition — the CEO is looking to scale Renom to multi-gigawatts over time (period unspecified), citing 8-10 GW of annual installations expected over the next 3-4 years as the addressable market.
• DTA evaluation moves to annual — next recognition assessment for unabsorbed losses at March 2027 (Q4 FY27), contingent on future profitability projections, as growth normalizes from ~60% previously to the guided 25% CAGR.
• Disclosure request pending — Satpal Singh Kanuja (Ishan Ventures) asked to reinstate stage-wise installation disclosure last presented 4-5 quarters back; the CFO said the company will evaluate, preferring thematic framing.