Sat Feb 01 03:50:00 UTC 2025: ## Suzlon Energy Upgraded to ‘Buy’ After Strong Q3 Results and Record Order Book

**MUMBAI, INDIA** – Nuvama Institutional Equities has upgraded Suzlon Energy Ltd’s stock rating from “Hold” to “Buy,” citing improved valuation following a recent price correction and strong Q3 performance. The company exceeded expectations, delivering 447 MW of execution (versus Nuvama’s forecast of 360 MW) and an operating margin of 16.8%, surpassing the estimated 14.9%. This beat consensus forecasts by 11%, despite increased depreciation and interest costs stemming from the Renom acquisition.

Suzlon’s Q3 net profit surged 91% year-on-year to Rs 388 crore, with revenue rising 91% to Rs 2,969 crore. The impressive results were driven by a robust order inflow of nearly 800 MW, boosting the order book to a record 5.5 GW, providing strong revenue visibility for the next 24 months.

Nuvama analysts highlighted Suzlon’s significant market share (30%+), its strong position in the corporate and industrial (C&I) sector (two-thirds of its order book), and its anticipated benefit from the increasing adoption of fixed-duration renewable energy (FDRE)/round-the-clock (RTC)/hybrid models in government tenders. While acknowledging the ongoing impact of Renom acquisition costs, Nuvama projects these to stabilize. They forecast a higher WTG contribution (20%) going forward.

Nuvama’s revised target price for Suzlon Energy is Rs 60, based on updated FY25-27 estimates incorporating improved execution and acquisition-related charges. The stock has experienced a 10.25% decline in the past five trading sessions and a 23% drop in January.

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